Public hearing on SB 93 focuses on tax carve-outs for bank interest on rural loans

Senate Committee on Finance and Revenue Chair Senator Mark Meek called a public hearing on Senate Bill 93 on March 17, 2025. The bill would create a subtraction from state corporate income tax and exclude certain interest income from the corporate activity tax (CAT) for financial institutions that make loans secured by agricultural real estate, specified rural residences and coastal fishing vessels.

Why it matters: Sponsors and banking trade groups said the measure would lower borrowing costs for farmers, ranchers, coastal fishers and rural homeowners by removing state-level taxes on bank interest tied to those loans, making community banks more competitive with lenders that already receive favorable tax treatment.

Senator Mark Meek, chair of the Senate Committee on Finance and Revenue, described the bill as a targeted incentive for rural Oregon: "Oregon's agricultural industry is a cornerstone of our economy and our rural communities. . . Senate Bill 93 provides a targeted tax incentive to encourage financial institutions to offer lower interest loans for agricultural real estate,…