Banking representatives say tax break in HB 4,052 could revive new bank formation in Oregon

The committee heard testimony in favor of House Bill 4,052, which would provide temporary tax relief to newly formed Oregon‑chartered banks.

Representative E. Warner Reschke, sponsor of HB 4,052, told the committee that Oregon has not seen a new bank formed since 2007 and that the absence of new bank formation is particularly harmful to rural communities. "This is a simple solution to a financial problem in Oregon: lack of new banks," Reschke said.

Scott Bruin, president and CEO of the Oregon Bankers Association and Community Banks of Oregon, testified in support and described the proposal’s details: a limited three‑year business excise tax exemption capped at $1,000,000 per year for qualifying new state‑chartered banks. Bruin argued the exemption would offset extraordinary regulatory and capital costs that make starting a bank prohibitive in Oregon and highlighted the community banks’ role in local credit: "Oregon's community banks safeguard more than $47,000,000,000 in deposits and extend nearly $29,000,000,000 in credit each year," he said.

John Calhoun, representing Tax Fairness Oregon, also supported the bill while noting initial concerns about eligibility language; he said the bill’s restrictions — including a state charter requirement and rules barring new banks formed from existing banks — limit potential abuse.

Committee members asked few questions. Vice Chair McLean moved HB 4,052 to the floor with a due‑pass recommendation; the committee then recorded affirmative votes and the motion carried. The chair announced a floor carrier to take the bill forward.

Next steps: HB 4,052 was advanced to the Senate floor with a due‑pass recommendation for further consideration.