Oregon — A group of top Oregon Democrats is backing legislation that would allow the state to participate in ownership and help finance renovations at Portland’s Moda Center through redirected income tax revenues.
Governor Tina Kotek, Senate President Rob Wagner, House Majority Leader Ben Bowman, Senate Majority Leader Kayse Jama, Multnomah County Chair Jessica Vega Pederson and Portland Mayor Keith Wilson testified this week in support of Senate Bill 1501 before the Senate Committee on Rules.
The bill would authorize the Oregon Department of Administrative Services to negotiate agreements creating a joint authority to own and operate the Moda Center. That authority could include one or more public bodies or a designated management entity. Supporters describe the proposal as establishing a framework for partial state ownership of the arena.
How the funding would work
SB 1501 creates an Oregon Arena Fund in the state treasury. Instead of raising taxes, the bill would redirect certain state personal income tax revenues into that fund. Specifically, the legislation allows for the transfer of income tax withholding amounts tied to wages earned in connection with operations in and around the Rose Quarter, as well as wages and certain income associated with renovation construction and performers at the arena.
Those transfers would begin with tax years starting on or after July 1, 2027, and would occur only if a men’s professional basketball team has a binding lease at the arena.
Supporters argue the approach avoids creating a new tax or increasing tax rates, while leveraging economic activity generated by the facility to finance improvements.
“This is about securing Portland’s future and strengthening Oregon’s economic competitiveness,” Kotek said during testimony.
Wagner said maintaining the arena as the home of the Portland Trail Blazers is important to preserving economic activity, major events and tourism in the state.
Supporters cite economic impact
Backers of the bill describe the Moda Center as a key economic and cultural asset. According to figures cited during testimony, the venue generates an estimated $670 million in annual regional economic impact, supports nearly 4,500 jobs and hosts more than 240 days of sports, community and entertainment programming each year.
Local leaders said modernization is necessary to keep the arena competitive for concerts, national sporting events and long-term tenancy by the Blazers.
Questions about General Fund impact
While the proposal does not increase taxes, critics have raised questions about the effect of diverting income tax revenues from the state’s General Fund, which supports schools, public safety and other statewide services.
Under SB 1501, the Legislature explicitly states that it is not pledging the state’s full faith and credit or taxing power, and that state obligations are limited to amounts deposited in the Oregon Arena Fund. The bill also requires quarterly reporting to legislative budget committees through 2032.
Lawmakers are expected to weigh whether the projected economic benefits and retention of a professional sports franchise justify redirecting future income tax revenues tied to arena-related activity.
SB 1501 remains under legislative consideration. Further hearings and fiscal analysis are anticipated before a final vote.
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