Landlords Should Support LC-881 - The Emergency Bill Offering Tax Credits for Unpaid Rent

A bill being introduced by Oregon Senator Betsy Johnson (D-Scappoose) in the 2021 regular session needs the advance support of landlords. Here's why:

Highlights of LC881

• Rescues tenants because all rents in arrearage are forgiven
• It adequately compensates landlords by converting the arrearages to tax credits, which can be taken over three years.
• It does not require a current funding source because future revenues fund it
• It minimizes or eliminates the State’s exposure to lawsuits.

Additional notes regarding Oregon Sen. Betsy Johnson’s proposal: LC881

• It provides tax credits to the landlord, which can be taken against future Oregon income tax over three years if the landlord forgives the tenant’s past due rental obligations.  The credits will be in the amount of rent forgiveness. 
• The tenant must be a current occupant paying current rent for the landlord to avail itself of this option.
• A landlord may sell and assign credits to other Oregon taxpayers if the landlord is not in a position to make beneficial use of the credits.

Advantages for all parties:  

• The State avoids takings claims as the rent the State has prevented the landlord from collecting becomes so old as to be worthless. 
• The landlord recovers something in exchange for having provided services to tenants without cost during the duration of the emergency. 
• The tenant receives debt relief and peace of mind knowing there will be no obligation to pay thousands in back-due rent or suffer bankruptcy. 
• The State will be able to accomplish the preceding by use of future rather than current revenues.

Read the complete draft of this 10-page bill here.

Write to your Oregon representatives in support of this legislation. Find out who your legislators are by clicking here.