Gov. Kate Brown to sign tax disconnect bill

Oregon Gov. Kate Brown discusses her legislative priorities for the 2018 session at the state Capitol in Salem, Oregon on Jan. 29, 2018. (Photo: Steve Benham/ Staff)

Gov. Kate Brown says she will sign a bill that would disconnect Oregon's tax code from a federal tax provision.

The Statesman Journal reports that's despite calls from Republicans to veto the legislation.

Brown announced her plans at a Friday news conference in Portland. She says she'll convene a one-day special legislative session to address inequities in the tax code.

Senate Bill 1528 disconnects Oregon from a new federal provision that grants pass-through entities - including S corporations, LLCs and various business partnerships - an additional 20 percent deduction on state income taxes.

Republicans say a disconnect amounts to a 20 percent increase in taxes for those businesses. Democrats say the federal law gives some entities an additional, unfair tax break on top of what the state already gives them.

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