OR SB105

State contracting agencies must require contractors to demonstrate compliance with Oregon personal income tax or corporate excise/income tax laws as a condition of executing public contracts

Contractors found non-compliant by the Department of Revenue face contract termination, damages, and other legal remedies available to the contracting agency

Non-compliance includes failure to file tax returns for any of the three preceding tax years, failure to pay or respond to deficiency notices within 30 days, or being under criminal investigation for tax-related offenses

All public contracts must include contractor representations and warranties of tax compliance with state and local tax laws, plus a covenant to maintain compliance throughout the contract term

Provisions become operative January 1, 2026, with the act taking effect on the 91st day after the 2025 legislative session adjourns