OR HB4136

Eliminates the Oregon personal income tax deduction for mortgage interest paid on second homes (residences other than the taxpayer's principal residence)

Allows an exception for taxpayers who sold the non-principal residence during the tax year or were actively marketing it for sale at year-end

Creates the Oregon Homeownership Opportunity Account in the State Treasury to fund down payment assistance through home ownership programs or nonprofit organizations

Requires the Department of Revenue to annually estimate increased tax revenue from the deduction restriction and transfer that amount to the new account, beginning May 1, 2028

Applies to tax years beginning on or after January 1, 2026, and takes effect on the 91st day following adjournment of the 2026 legislative session