Lawmakers hear bill to divert incremental player income taxes for Portland MLB stadium; opponents warn of risky precedent

The Oregon House Committee on Revenue held a lengthy public hearing May 15 on Senate Bill 110A, a measure that would modernize a 2003 statute (Senate Bill 5) to enable a Major League Baseball franchise and private developers to use a 30‑year diversion of incremental personal income taxes from high‑paid team employees to finance construction of a stadium in Portland.

Senator Mark Meek, chair of the Senate Finance and Revenue Committee, urged passage and described the bill as a way to secure a Major League Baseball franchise and the “enormous economic and cultural benefits that will come with it.” Meek said the bill would not raise taxes or obligate the state’s general fund; instead, it would allow DAS, with approval of the state treasurer, to enter into grant agreements that divert incremental personal income tax receipts tied to MLB payrolls into a Major League Stadium Grant Fund for up to 30 years.

Key technical changes in SB 110A described during testimony include increasing the maximum principal tied to the program from $150 million (under the 2003 law) to $800 million; raising the minimum stadium cost threshold from $300 million to $2 billion; and increasing…