Oregon mortgage interest deduction audit: Inequitable

PORTLAND, Ore. (AP) — The Oregon secretary of state’s office is calling for changes to a decades old tax policy that auditors found benefits primarily white, wealthy homeowners in urban counties while leaving thousands to fight for housing assistance. The Oregonian/OregonLive reports the state mortgage interest deduction, which mirrors the version for federal income taxes, allows homeowners to deduct from their taxable income interest payments on mortgages up to $750,000, including mortgages on vacation homes. It’s Oregon’s largest housing subsidy. Oregon lawmakers have proposed several times in recent years to overhaul the tax policy, but none of those proposals have become law.