When reporters and editors of EO Media Group interviewed Gov. Tina Kotek last week, we at the editorial board asked about taxes.

The short answer: Kotek said she has not picked out any new sources of revenue.

The long answer and what she said follows:

Kotek mentioned she had seen some good ideas for new and expanded programs that would help students, such as through summer school. There is no current funding in place for that.

She didn’t mention it specifically, but there has also been a great deal of attention from a legislative committee after the 2024 session ended on salaries for teachers and other school staff. Legislators have been looking at compensation to ensure it is competitive, educators can afford housing, and harder-to-fill jobs are not so hard to fill. Where is the money going to come from for that?

So we asked Kotek if she is looking at new revenue for the 2025 session and we mentioned Oregon’s corporate activity tax, aka CAT tax. Basically, if a business has more than $1 million in commercial activity in Oregon they are eligible for the CAT tax. It’s cost is $250 plus .57% of taxable activity of more than $1 million. It was designed to raise about $1 billion a year for schools. It has been doing a bit better than that and may raise $2.8 billion for the 2023-2025 budget period.

Kotek said: “Right now in my budget development I have not identified any new revenue sources. I am still in the stage where I am asking all the agencies: What does it cost to do the job that is now required of you? We want to maintain that. I don’t think we want to be in a budget cut environment. What are the other investments we might need to make? And it’s going to be whether or not we can afford them. And then we might need to have that conversation of … for example, I would like to see more money for housing construction. Is there a pot of one-time money that we can access?….

If we have to look at new revenue, then I need to make that case to Oregonians. I have looked under every couch cushion. This is a priority. Here’s how I would suggest we get to that priority. But we’re not there yet. There’s not been a discussion about changing the CAT tax…. Not in my office.”

It’s almost a certainty that there will be a change coming for Oregonian’s in how the state pays for its roads. The gas tax is on the wane. Will there be more coming in taxes in 2025? For now, we don’t know.