Oregon Board of Tax Practitioners unveils new entry level license to boost industry growth

The Oregon Board of Tax Practitioners presented its budget and regulatory updates during a recent meeting of the Joint Committee on Ways and Means Subcommittee on General Government. The board, which oversees tax consultants and preparers, aims to protect consumers by ensuring that tax practitioners are competent and ethical.

The agency has experienced growth, primarily from out-of-state applicants, while in-state licensure has declined over the past decade. To address this trend, the governor's budget includes provisions for an entry-level license designed to lower barriers for new practitioners and expand the licensee base. This budget also accounts for increased testing costs and allows the board to sublease office space from the Board of Accountancy.

Currently, the board operates with a self-funded model, relying on revenue from license applications, renewals, and examination fees. The agency has maintained a steady workforce of two full-time employees, down from three in previous years, and has not made significant investments in recent biennia.

The board's mission, as outlined by Executive Director Laura Cardokas, is to ensure that all individuals who prepare or offer tax advice for a fee in Oregon are licensed. This is particularly important given the sensitive nature of the information handled by tax preparers, including personal identification and financial details. Cardokas emphasized the importance of regulation in preventing identity theft and ensuring consumer protection.

The board regulates two types of individual licenses: tax preparers, who require an 80-hour course and must work under a licensed tax consultant, and licensed tax consultants, who must have substantial work experience and pass a more rigorous exam. The board also oversees business registrations, ensuring that each location is supervised by a licensed consultant.

During the meeting, committee members raised questions about the lack of regulatory oversight for individuals providing tax advice for free and the implications of using online tax preparation tools. Cardokas confirmed that the board does not oversee these activities, highlighting a gap in consumer protection for those receiving unpaid advice.

The board is composed of seven members, six of whom are licensed tax consultants, and one public member, a position that has been difficult to fill. The board continues to focus on maintaining high standards in tax preparation and ensuring that Oregon remains a leader in the regulation of tax practitioners.