[img_assist|nid=2796|title=Senate candidate Jeff Merkley|desc=Campaign Photo|link=none|align=left|width=220|height=220]The Oregon Republican Party is accusing Jeff Merkley of violating state ethics law by not reporting rental income he earned on twelve properties throughout the Portland area, but Merkley's campaign says that rental income did not merit reporting.

For 2005, Merkley reported income on rental properties on the economic interest forms which candidates must file with the Oregon Government Standards and Practices Commission.

He did not list any rental income on the forms for 2002, 2003, or 2004. According to ORGOP, failure to report that income results in a fine of $1000.

Merkley spokesman Matt Canter, however, said that Merkley actually followed the ethics commission's rules.

"The income from the properties didn't meet the reporting threshold,” Canter said of the three disputed years. “Jeff Merkley fully reported properties and incomes as required.”

Canter said that legislators are required to report the income if it is at least 10 percent of the legislator's household income. Because of fluctuating rental prices, Canter said that Merkley's rental income did not need to be reported every year.

Canter said that the Oregon Republican Party was dredging up the issue to distract voters from controversies swiriling around U.S. Sen. Gordon Smith (R-Pendleton).

“Now Gordon Smith is hiding behind someone else’s spokesman,” Canter said. “This is all an attempt to distract from Smith hiring undocumented workers at Smith Frozen Foods.”

According to an article by Harry Esteve at The Oregonian, Merkley’s rental properties are valued at more than $2 million. As to why the income of the rental properties fluctuated, Canter said he did not know.

Meanwhile, the ORGOP said Merkley should answer about his disclosure.

“This issue should raise a lot of questions,” ORGOP spokeswoman Brianne Hyder said. “Questions that demand answers from Jeff Merkley.”