Bill Text: OR HB2001 | 2013 | Regular Session | Introduced
Bill Title: Relating to tax expenditures; prescribing an effective date; providing for revenue raising that requires approval by a three-fifths majority.
Spectrum: Partisan Bill (Democrat 9-0)
Status: (Failed) 2013-07-08 - In committee upon adjournment. [HB2001 Detail]
Download: Oregon-2013-HB2001-Introduced.html
77th OREGON LEGISLATIVE ASSEMBLY--2013 Regular Session
NOTE: Matter within { + braces and plus signs + } in an
amended section is new. Matter within { - braces and minus
signs - } is existing law to be omitted. New sections are within
{ + braces and plus signs + } .
LC 2019
House Bill 2001
Sponsored by Representatives VEGA PEDERSON, KOTEK;
Representatives FAGAN, FREDERICK, GORSEK, GREENLICK, KOMP,
UNGER, WITT
SUMMARY
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.
Creates or adjusts sunset for certain income and corporate
excise tax expenditures not required under federal law or Oregon
Constitution.
Takes effect on 91st day following adjournment sine die.
A BILL FOR AN ACT
Relating to tax expenditures; creating new provisions; amending
ORS 171.072, 316.117, 316.130, 316.362, 316.680, 316.687,
316.690 and 316.695 and section 6, chapter 30, Oregon Laws
1999, section 3, chapter 747, Oregon Laws 1999, section 4,
chapter 280, Oregon Laws 2003, sections 7 and 10, chapter 826,
Oregon Laws 2005, section 15, chapter 906, Oregon Laws 2007,
and section 4, chapter 66, Oregon Laws 2010; prescribing an
effective date; and providing for revenue raising that requires
approval by a three-fifths majority.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 316.695 is amended to read:
316.695. (1) In addition to the modifications to federal
taxable income contained in this chapter, there shall be added to
or subtracted from federal taxable income:
(a) If, in computing federal income tax for a taxable year, the
taxpayer deducted itemized deductions, as defined in section
63(d) of the Internal Revenue Code, the taxpayer shall add the
amount of itemized deductions deducted (the itemized deductions
less an amount, if any, by which the itemized deductions are
reduced under section 68 of the Internal Revenue Code).
(b) If, in computing federal income tax for a taxable year, the
taxpayer deducted the standard deduction, as defined in section
63(c) of the Internal Revenue Code, the taxpayer shall add the
amount of the standard deduction deducted.
{ - (c)(A) From federal taxable income there shall be
subtracted the larger of (i) the taxpayer's itemized deductions
or (ii) a standard deduction. Except as provided in subsection
(8) of this section, for purposes of this subparagraph, 'standard
deduction ' means the sum of the basic standard deduction and the
additional standard deduction. - }
{ - (B) For purposes of subparagraph (A) of this paragraph,
the basic standard deduction is: - }
{ - (i) $3,280, in the case of joint return filers or a
surviving spouse; - }
{ - (ii) $1,640, in the case of an individual who is not a
married individual and is not a surviving spouse; - }
{ - (iii) $1,640, in the case of a married individual who
files a separate return; or - }
{ - (iv) $2,640, in the case of a head of household. - }
{ - (C)(i) For purposes of subparagraph (A) of this paragraph
for tax years beginning on or after January 1, 2003, the
Department of Revenue shall annually recompute the basic standard
deduction for each category of return filer listed under
subparagraph (B) of this paragraph. The basic standard deduction
shall be computed by dividing the monthly averaged U.S. City
Average Consumer Price Index for the 12 consecutive months ending
August 31 of the prior calendar year by the average U.S. City
Average Consumer Price Index for the second quarter of 2002, then
multiplying that quotient by the amount listed under subparagraph
(B) of this paragraph for each category of return filer. - }
{ - (ii) If any change in the maximum household income
determined under this subparagraph is not a multiple of $5, the
increase shall be rounded to the next lower multiple of $5. - }
{ - (iii) As used in this subparagraph, 'U.S. City Average
Consumer Price Index' means the U.S. City Average Consumer Price
Index for All Urban Consumers (All Items) as published by the
Bureau of Labor Statistics of the United States Department of
Labor. - }
{ - (D) For purposes of subparagraph (A) of this paragraph,
the additional standard deduction is the sum of each additional
amount to which the taxpayer is entitled under subsection (7) of
this section. - }
{ - (E) As used in subparagraph (B) of this paragraph, '
surviving spouse' and 'head of household' have the meaning given
those terms in section 2 of the Internal Revenue Code. - }
{ - (F) In the case of the following, the standard deduction
referred to in subparagraph (A) of this paragraph shall be
zero: - }
{ - (i) A husband or wife filing a separate return where the
other spouse has claimed itemized deductions under subparagraph
(A) of this paragraph; - }
{ - (ii) A nonresident alien individual; - }
{ - (iii) An individual making a return for a period of less
than 12 months on account of a change in the individual's annual
accounting period; - }
{ - (iv) An estate or trust; - }
{ - (v) A common trust fund; or - }
{ - (vi) A partnership. - }
{ - (d) For the purposes of paragraph (c)(A) of this
subsection, the taxpayer's itemized deductions are the sum
of: - }
{ - (A) The taxpayer's itemized deductions as defined in
section 63(d) of the Internal Revenue Code (reduced, if
applicable, as described under section 68 of the Internal Revenue
Code) minus the deduction for Oregon income tax (reduced, if
applicable, by the proportion that the reduction in federal
itemized deductions resulting from section 68 of the Internal
Revenue Code bears to the amount of federal itemized deductions
as defined for purposes of section 68 of the Internal Revenue
Code); and - }
{ - (B) The amount that may be taken into account under
section 213(a) of the Internal Revenue Code, not to exceed seven
and one-half percent of the federal adjusted gross income of the
taxpayer, if the taxpayer has attained the following age before
the close of the taxable year, or, in the case of a joint return,
if either taxpayer has attained the following age before the
close of the taxable year: - }
{ - (i) For taxable years beginning on or after January 1,
1991, and before January 1, 1993, a taxpayer must attain 58 years
of age before the close of the taxable year. - }
{ - (ii) For taxable years beginning on or after January 1,
1993, and before January 1, 1995, a taxpayer must attain 59 years
of age before the close of the taxable year. - }
{ - (iii) For taxable years beginning on or after January 1,
1995, and before January 1, 1997, a taxpayer must attain 60 years
of age before the close of the taxable year. - }
{ - (iv) For taxable years beginning on or after January 1,
1997, and before January 1, 1999, a taxpayer must attain 61 years
of age before the close of the taxable year. - }
{ - (v) For taxable years beginning on or after January 1,
1999, a taxpayer must attain 62 years of age before the close of
the taxable year. - }
(2)(a) There shall be subtracted from federal taxable income
any portion of the distribution of a pension, profit-sharing,
stock bonus or other retirement plan, representing that portion
of contributions which were taxed by the State of Oregon but not
taxed by the federal government under laws in effect for tax
years beginning prior to January 1, 1969, or for any subsequent
year in which the amount that was contributed to the plan under
the Internal Revenue Code was greater than the amount allowed
under this chapter.
(b) Interest or other earnings on any excess contributions of a
pension, profit-sharing, stock bonus or other retirement plan not
permitted to be deducted under paragraph (a) of this subsection
shall not be added to federal taxable income in the year earned
by the plan and shall not be subtracted from federal taxable
income in the year received by the taxpayer.
(3)(a) Except as provided in subsection (4) of this section,
there shall be added to federal taxable income the amount of any
federal income taxes in excess of the amount provided in
paragraphs (b) to (d) of this subsection, accrued by the taxpayer
during the taxable year as described in ORS 316.685, less the
amount of any refund of federal taxes previously accrued for
which a tax benefit was received.
(b) The limits applicable to this subsection are:
(A) $5,500, if the federal adjusted gross income of the
taxpayer for the tax year is less than $125,000, or, if reported
on a joint return, less than $250,000.
(B) $4,400, if the federal adjusted gross income of the
taxpayer for the tax year is $125,000 or more and less than
$130,000, or, if reported on a joint return, $250,000 or more and
less than $260,000.
(C) $3,300, if the federal adjusted gross income of the
taxpayer for the tax year is $130,000 or more and less than
$135,000, or, if reported on a joint return, $260,000 or more and
less than $270,000.
(D) $2,200, if the federal adjusted gross income of the
taxpayer for the tax year is $135,000 or more and less than
$140,000, or, if reported on a joint return, $270,000 or more and
less than $280,000.
(E) $1,100, if the federal adjusted gross income of the
taxpayer for the tax year is $140,000 or more and less than
$145,000, or, if reported on a joint return, $280,000 or more and
less than $290,000.
(c) If the federal adjusted gross income of the taxpayer is
$145,000 or more for the tax year, or, if reported on a joint
return, $290,000 or more, the limit is zero and the taxpayer is
not allowed a subtraction for federal income taxes under ORS
316.680 (1) for the tax year.
(d) In the case of a husband and wife filing separate tax
returns, the amount added shall be in the amount of any federal
income taxes in excess of the amount provided for individual
taxpayers under paragraphs (a) to (c) of this subsection, less
the amount of any refund of federal taxes previously accrued for
which a tax benefit was received.
(e) For purposes of this subsection, the limits applicable to a
joint return shall apply to a head of household or a surviving
spouse, as defined in section 2(a) and (b) of the Internal
Revenue Code.
(f)(A) For a calendar year beginning on or after January 1,
2008, the Department of Revenue shall make a cost-of-living
adjustment to the federal income tax threshold amounts described
in paragraphs (b) and (d) of this subsection.
(B) The cost-of-living adjustment for a calendar year is the
percentage by which the monthly averaged U.S. City Average
Consumer Price Index for the 12 consecutive months ending August
31 of the prior calendar year exceeds the monthly averaged index
for the period beginning September 1, 2005, and ending August 31,
2006.
(C) As used in this paragraph, 'U.S. City Average Consumer
Price Index' means the U.S. City Average Consumer Price Index for
All Urban Consumers (All Items) as published by the Bureau of
Labor Statistics of the United States Department of Labor.
(D) If any adjustment determined under subparagraph (B) of this
paragraph is not a multiple of $50, the adjustment shall be
rounded to the next lower multiple of $50.
(E) The adjustment shall apply to all tax years beginning in
the calendar year for which the adjustment is made.
(4)(a) In addition to the adjustments required by ORS 316.130,
a full-year nonresident individual shall add to taxable income a
proportion of any accrued federal income taxes as computed under
ORS 316.685 in excess of the amount provided in subsection (3) of
this section in the proportion provided in ORS 316.117.
(b) In the case of a husband and wife filing separate tax
returns, the amount added under this subsection shall be computed
in a manner consistent with the computation of the amount to be
added in the case of a husband and wife filing separate returns
under subsection (3) of this section. The method of computation
shall be determined by the Department of Revenue by rule.
(5) Subsections (3)(d) and (4)(b) of this section shall not
apply to married individuals living apart as defined in section
7703(b) of the Internal Revenue Code.
(6)(a) For tax years beginning on or after January 1, 1981, and
prior to January 1, 1983, income or loss taken into account in
determining federal taxable income by a shareholder of an S
corporation pursuant to sections 1373 to 1375 of the Internal
Revenue Code shall be adjusted for purposes of determining Oregon
taxable income, to the extent that as income or loss of the S
corporation, they were required to be adjusted under the
provisions of ORS chapter 317.
(b) For tax years beginning on or after January 1, 1983, items
of income, loss or deduction taken into account in determining
federal taxable income by a shareholder of an S corporation
pursuant to sections 1366 to 1368 of the Internal Revenue Code
shall be adjusted for purposes of determining Oregon taxable
income, to the extent that as items of income, loss or deduction
of the shareholder the items are required to be adjusted under
the provisions of this chapter.
(c) The tax years referred to in paragraphs (a) and (b) of this
subsection are those of the S corporation.
(d) As used in paragraph (a) of this subsection, an S
corporation refers to an electing small business corporation.
{ - (7)(a) The taxpayer shall be entitled to an additional
amount, as referred to in subsection (1)(c)(A) and (D) of this
section, of $1,000: - }
{ - (A) For the taxpayer if the taxpayer has attained age 65
before the close of the taxpayer's taxable year; and - }
{ - (B) For the spouse of the taxpayer if the spouse has
attained age 65 before the close of the taxable year and an
additional exemption is allowable to the taxpayer for such spouse
for federal income tax purposes under section 151(b) of the
Internal Revenue Code. - }
{ - (b) The taxpayer shall be entitled to an additional
amount, as referred to in subsection (1)(c)(A) and (D) of this
section, of $1,000: - }
{ - (A) For the taxpayer if the taxpayer is blind at the
close of the taxable year; and - }
{ - (B) For the spouse of the taxpayer if the spouse is blind
as of the close of the taxable year and an additional exemption
is allowable to the taxpayer for such spouse for federal income
tax purposes under section 151(b) of the Internal Revenue Code.
For purposes of this subparagraph, if the spouse dies during the
taxable year, the determination of whether such spouse is blind
shall be made immediately prior to death. - }
{ - (c) In the case of an individual who is not married and
is not a surviving spouse, paragraphs (a) and (b) of this
subsection shall be applied by substituting '$1,200' for
'$1,000.' - }
{ - (d) For purposes of this subsection, an individual is
blind only if the individual's central visual acuity does not
exceed 20/200 in the better eye with correcting lenses, or if the
individual's visual acuity is greater than 20/200 but is
accompanied by a limitation in the fields of vision such that the
widest diameter of the visual field subtends an angle no greater
than 20 degrees. - }
{ - (8) In the case of an individual with respect to whom a
deduction under section 151 of the Internal Revenue Code is
allowable for federal income tax purposes to another taxpayer for
a taxable year beginning in the calendar year in which the
individual's taxable year begins, the basic standard deduction
(referred to in subsection (1)(c)(B) of this section) applicable
to such individual for such individual's taxable year shall equal
the lesser of: - }
{ - (a) The amount allowed to the individual under section
63(c)(5) of the Internal Revenue Code for federal income tax
purposes for the tax year for which the deduction is being
claimed; or - }
{ - (b) The amount determined under subsection (1)(c)(B) of
this section. - }
SECTION 2. ORS 316.680 is amended to read:
316.680. (1) There shall be subtracted from federal taxable
income:
(a) The interest or dividends on obligations of the United
States and its territories and possessions or of any authority,
commission or instrumentality of the United States to the extent
includable in gross income for federal income tax purposes but
exempt from state income taxes under the laws of the United
States. However, the amount subtracted under this paragraph shall
be reduced by any interest on indebtedness incurred to carry the
obligations or securities described in this paragraph, and by any
expenses incurred in the production of interest or dividend
income described in this paragraph to the extent that such
expenses, including amortizable bond premiums, are deductible in
determining federal taxable income.
{ - (b) The amount of any federal income taxes accrued by the
taxpayer during the taxable year as described in ORS 316.685,
less the amount of any refunds of federal taxes previously
accrued for which a tax benefit was received. - }
{ - (c)(A) If the taxpayer does not qualify for the
subtraction under subparagraph (B) of this paragraph,
compensation (other than pension or retirement pay) received for
active service performed by a member of the Armed Forces of the
United States in an amount not to exceed $6,000 per annum. As
used in this subparagraph, ' active service' includes weekend
drills, annual training, summer camp, special school attendance
and battle assemblies. - }
{ - (B) For the tax year of initial draft or enlistment into
the Armed Forces of the United States or for the tax year of
discharge from or termination of full-time active duty for the
Armed Forces of the United States, compensation (other than
pension or retirement pay or pay for service when on military
reserve duty) paid by the Armed Forces of the United States for
services performed outside this state, if the taxpayer is on
active duty as a full-time officer, enlistee or draftee, with the
Armed Forces of the United States. - }
{ - (d) Amounts allowable under sections 2621(a)(2) and
2622(b) of the Internal Revenue Code to the extent that the
taxpayer does not elect under section 642(g) of the Internal
Revenue Code to reduce federal taxable income by those
amounts. - }
{ - (e) Any supplemental payments made to JOBS Plus Program
participants under ORS 411.892. - }
{ - (f)(A) - } { + (b)(A) + } Federal pension income that
is attributable to federal employment occurring before October 1,
1991. Federal pension income that is attributable to federal
employment occurring before October 1, 1991, shall be determined
by multiplying the total amount of federal pension income for the
tax year by the ratio of the number of months of federal
creditable service occurring before October 1, 1991, over the
total number of months of federal creditable service.
(B) The subtraction allowed under this paragraph applies only
to federal pension income received at a time when:
(i) Benefit increases provided under chapter 569, Oregon Laws
1995, are in effect; or
(ii) Public Employees Retirement System benefits received for
service prior to October 1, 1991, are exempt from state income
tax.
(C) As used in this paragraph:
(i) 'Federal creditable service' means those periods of time
for which a federal employee earned a federal pension.
(ii) 'Federal pension' means any form of retirement allowance
provided by the federal government, its agencies or its
instrumentalities to retirees of the federal government or their
beneficiaries.
{ - (g) - } { + (c) + } Any amount included in federal
taxable income for the tax year that is attributable to the
conversion of a regular individual retirement account into a Roth
individual retirement account described in section 408A of the
Internal Revenue Code, to the extent that:
(A) The amount was subject to the income tax of another state
or the District of Columbia in a prior tax year; and
(B) The taxpayer was a resident of the other state or the
District of Columbia for that prior tax year.
{ - (h) - } { + (d) + } Any amounts awarded to the taxpayer
by the Public Safety Memorial Fund Board under ORS 243.954 to
243.974 to the extent that the taxpayer has not taken the amount
as a deduction in determining the taxpayer's federal taxable
income for the tax year.
{ - (i) - } { + (e) + } If included in taxable income for
federal tax purposes, the amount withdrawn during the tax year in
qualified withdrawals from a college savings network account
established under ORS 348.841 to 348.873.
(2) There shall be added to federal taxable income:
(a) Interest or dividends, exempt from federal income tax, on
obligations or securities of any foreign state or of a political
subdivision or authority of any foreign state. However, the
amount added under this paragraph shall be reduced by any
interest on indebtedness incurred to carry the obligations or
securities described in this paragraph and by any expenses
incurred in the production of interest or dividend income
described in this paragraph.
(b) Interest or dividends on obligations of any authority,
commission, instrumentality and territorial possession of the
United States that by the laws of the United States are exempt
from federal income tax but not from state income taxes. However,
the amount added under this paragraph shall be reduced by any
interest on indebtedness incurred to carry the obligations or
securities described in this paragraph and by any expenses
incurred in the production of interest or dividend income
described in this paragraph.
(c) The amount of any federal estate taxes allocable to income
in respect of a decedent not taxable by Oregon.
(d) The amount of any allowance for depletion in excess of the
taxpayer's adjusted basis in the property depleted, deducted on
the taxpayer's federal income tax return for the taxable year,
pursuant to sections 613, 613A, 614, 616 and 617 of the Internal
Revenue Code.
(e) For taxable years beginning on or after January 1, 1985,
the dollar amount deducted under section 151 of the Internal
Revenue Code for personal exemptions for the taxable year.
(f) The amount taken as a deduction on the taxpayer's federal
return for unused qualified business credits under section 196 of
the Internal Revenue Code.
(g) The amount of any increased benefits paid to a taxpayer
under chapter 569, Oregon Laws 1995, under the provisions of
chapter 796, Oregon Laws 1991, and under section 26, chapter 815,
Oregon Laws 1991, that is not includable in the taxpayer's
federal taxable income under the Internal Revenue Code.
(h) The amount of any long term care insurance premiums paid or
incurred by the taxpayer during the tax year if:
(A) The amount is taken into account as a deduction on the
taxpayer's federal return for the tax year; and
(B) The taxpayer claims the credit allowed under ORS 315.610
for the tax year.
(i) Any amount taken as a deduction under section 1341 of the
Internal Revenue Code in computing federal taxable income for the
tax year, if the taxpayer has claimed a credit for claim of right
income repayment adjustment under ORS 315.068.
(j) If the taxpayer makes a nonqualified withdrawal, as defined
in ORS 348.841, from a college savings network account
established under ORS 348.841 to 348.873, the amount of the
withdrawal that is attributable to contributions that were
subtracted from federal taxable income under ORS 316.699.
(3) Discount and gain or loss on retirement or disposition of
obligations described under subsection (2)(a) of this section
issued on or after January 1, 1985, shall be treated for purposes
of this chapter in the same manner as under sections 1271 to 1283
and other pertinent sections of the Internal Revenue Code as if
the obligations, although issued by a foreign state or a
political subdivision of a foreign state, were not tax exempt
under the Internal Revenue Code.
SECTION 3. ORS 316.690 is amended to read:
316.690. { - (1) Subject to subsection (2) of this
section, - } In addition to other modifications provided in this
chapter, and if a taxpayer elects to take foreign income taxes
imposed for the taxable year by a foreign country as a credit on
the federal income tax return or does not itemize personal
deductions on the federal income tax return, there shall be
subtracted from federal taxable income in the computation of
state taxable income the amount of foreign income taxes imposed
for the taxable year by a foreign country.
{ - (2) The deduction for foreign country income taxes
provided by this section shall be limited as follows: - }
{ - (a) Except as provided in paragraph (b) of this
subsection, the sum of foreign country income taxes deducted in
computing state taxable income and the modification for federal
income taxes authorized by ORS 316.680 (1)(b) as limited by ORS
316.695 (3) shall not exceed $3,000. - }
{ - (b) In the case of a husband and wife filing separate tax
returns, the sum described in paragraph (a) of this subsection
shall be limited to $1,500. - }
SECTION 4. ORS 316.130 is amended to read:
316.130. (1) The taxable income for a full-year nonresident
individual is adjusted gross income attributable to sources
within this state determined under ORS 316.127, with the
modifications (except those provided under subsection (2) of this
section) as otherwise provided under this chapter and other laws
of this state applicable to personal income taxation, less the
deductions allowed under subsection (2) of this section.
{ - (2)(a) A full-year nonresident individual shall be
allowed the deduction for a standard deduction or itemized
deductions allowable to a resident under ORS 316.695 (1) in the
proportion provided in ORS 316.117. - }
{ - (b) - } { + (2)(a) + } A full-year nonresident
individual shall be allowed to deduct the amount of any accrued
federal income taxes and foreign country income taxes as provided
in ORS 316.690 in the proportion provided in ORS 316.117.
{ - (c)(A) - } { + (b)(A) + } A full-year nonresident
individual shall be allowed to deduct the amount of any alimony
or separate maintenance payments paid during such individual's
taxable year in the proportion provided in ORS 316.117 except
that in determining the proportion the taxpayer's adjusted gross
income shall not include a deduction for alimony. For purposes of
this paragraph, ' alimony or separate maintenance payment' has
the meaning given the phrase in section 215 of the Internal
Revenue Code.
(B) No deduction shall be allowed under this paragraph if the
alimony or separate maintenance payment is not includable in the
gross income of the nonresident individual for federal income tax
purposes under section 682 of the Internal Revenue Code.
(3)(a) A full-year nonresident who is a self-employed
individual shall be allowed to deduct that individual's
contributions to a qualified plan, deductible on that
individual's federal income tax return pursuant to section 401 of
the Internal Revenue Code, in the proportion that the
individual's earned income from Oregon sources bears to the
individual's earned income from all sources. 'Earned income' has
the meaning given in section 401(c)(2) of the Internal Revenue
Code. If the numerator of the fraction described in this
paragraph is greater than the denominator, the proration of 100
percent shall be used.
(b) A full-year nonresident shall be allowed to deduct that
individual's qualified retirement contributions, deductible on
that individual's federal income tax return pursuant to section
219 of the Internal Revenue Code, in the proportion that the
individual's compensation from Oregon sources bears to the
individual's compensation from all sources. 'Compensation' has
the meaning given in section 219(f)(1) of the Internal Revenue
Code.
(c) A full-year nonresident individual shall be allowed to
deduct the aggregate amounts paid in cash to a medical savings
account, deductible on the individual's federal income tax return
pursuant to section 220 of the Internal Revenue Code, in the
proportion that the individual's compensation from Oregon sources
bears to the individual's compensation from all sources.
Distributions from a medical savings account, if excluded from
income for federal income tax purposes, shall be excluded for
Oregon income tax purposes. Distributions from a medical savings
account, if included in income for federal tax purposes, shall be
included in income for Oregon tax purposes to the extent that an
exclusion has been allowed for contributions to the medical
savings account for Oregon tax purposes in a previous year.
SECTION 5. ORS 316.362 is amended to read:
316.362. (1) An income tax return with respect to the tax
imposed by this chapter shall be made by the following:
(a) Every resident individual:
(A) Who is required to file a federal income tax return for the
taxable year; or
(B) Who has gross income greater than the sum of:
{ - (i) The basic standard deduction allowed under ORS
316.695 (1)(c)(B); - }
{ - (ii) Any additional standard deduction allowed to the
taxpayer under ORS 316.695 (7); and - }
{ + (i) 33 percent of the entire standard deduction allowed
under section 63 of the Internal Revenue Code; and + }
{ - (iii) - } { + (ii) + } An amount equal to the income
equivalent of one personal exemption credit under ORS 316.085
(3)(b) if unmarried, or equal to the income equivalent of two
personal exemption credits under ORS 316.085 (3)(b) if married.
(b) Every nonresident individual who has federal gross income
from sources in this state of more than { - the basic standard
deduction allowed under ORS 316.695 (1)(c)(B) - } { + 33
percent of the basic standard deduction allowed under section 63
of the Internal Revenue Code + }.
(c) Every resident estate or trust that is required to file a
federal income tax return.
(d) Every nonresident estate that has federal gross income of
$600 or more for the taxable year from sources within this state.
(e) Every nonresident trust that for the taxable year has from
sources within this state any taxable income, or gross income of
$600 or more regardless of the amount of taxable income.
(2) Nothing contained in this section shall preclude the
Department of Revenue from requiring any individual, estate or
trust to file a return when, in the judgment of the department, a
return should be filed.
(3) For purposes of this section, the income equivalent of a
personal exemption credit under ORS 316.085 (3)(b) shall be
determined as follows:
(a) Divide the personal exemption credit amount by the rate
applicable to the lowest income bracket under ORS 316.037.
(b) If the resulting quotient is less than the maximum amount
of income subject to the rate used in paragraph (a) of this
subsection, the quotient is the income equivalent.
(c) If the resulting quotient is more than the maximum amount
of income subject to the rate used in paragraph (a) of this
subsection:
(A) Multiply the maximum amount of income subject to the rate
used in paragraph (a) of this subsection by the rate used in
paragraph (a) of this subsection.
(B) Determine the difference between the product calculated
under subparagraph (A) of this paragraph and the personal
exemption credit amount.
(C) Divide the difference determined in subparagraph (B) of
this paragraph by the rate applicable to the income bracket that
is the next succeeding the lowest income bracket under ORS
316.037.
(D) Add the quotient determined in subparagraph (C) of this
paragraph to the maximum amount of income subject to the rate
used in paragraph (a) of this subsection. The sum is the income
equivalent.
SECTION 6. ORS 316.687 is amended to read:
316.687. There shall be added to federal taxable income of a
parent who makes an election under section 1(g)(7)(B) of the
Internal Revenue Code any amount in excess of the standard
deduction allowed for a child under { - ORS 316.695 (8) - }
{ + section 63(c)(5) of the Internal Revenue Code + } but not in
excess of the amount described in section 1(g)(7)(B)(i) of the
Internal Revenue Code (twice the amount in effect for the taxable
year under section 63(c)(5)(A) of the Internal Revenue Code). The
addition under this section shall be made for each child whose
income is included in the taxable income of the parent under
section 1(g)(7)(B) of the Internal Revenue Code.
SECTION 7. ORS 316.117 is amended to read:
316.117. (1) Except as provided under subsection (2) of this
section, the proportion for making a proration for nonresident
taxpayers of { - the standard deduction or itemized
deductions, - } the personal exemption credits and any accrued
federal or foreign income taxes, or for part-year resident
taxpayers of the amount of the tax, between Oregon source income
and income from all other sources is the federal adjusted gross
income of the taxpayer from Oregon sources divided by the
taxpayer's federal adjusted gross income from all sources. If the
numerator of the fraction described in this subsection is greater
than the denominator, the proportion of 100 percent shall be used
in the proration required by this section. As used in this
subsection, 'federal adjusted gross income' means the federal
adjusted gross income of the taxpayer with the additions,
subtractions and other modifications to federal taxable income
that relate to adjusted gross income for personal income tax
purposes.
(2) For part-year resident trusts, the proration made under
this section shall be made by reference to the taxable income of
the fiduciary.
SECTION 8. ORS 171.072 is amended to read:
171.072. (1) A member of the Legislative Assembly shall receive
for services an annual salary of the greater of:
(a) One step below the maximum of Salary Range 1 in the
Management Service Compensation Plan in the executive department
as defined in ORS 174.112; or
(b) Seventeen percent of the salary of a Circuit Court Judge.
(2) The President of the Senate and the Speaker of the House of
Representatives each shall receive for services, as additional
salary, an amount equal to the salary allowed each of them as a
member under subsection (1) of this section.
(3) A member of the Legislative Assembly shall receive, as an
allowance for expenses not otherwise provided for, a per diem
determined as provided in subsection { - (9) - } { + (8) + }
of this section for each day within the period that the
Legislative Assembly is in session, to be paid with the salary
provided for in subsection (1) of this section. Pursuant to
procedures determined by the Legislative Administration
Committee, a member may draw from an accrued allowance.
(4) A member of the Legislative Assembly shall receive, as an
allowance for expenses incurred in the performance of official
duties during periods when the legislature is not in session,
$400 for each calendar month or part of a calendar month during
those periods, to be paid monthly, and subject to approval of the
President of the Senate or Speaker of the House of
Representatives, mileage expenses and a per diem determined as
provided in subsection { - (9) - } { + (8) + } of this
section for each day a member is engaged in the business of
legislative interim and statutory committees, including advisory
committees and subcommittees of advisory committees, and task
forces and for each day a member serves on interstate bodies,
advisory committees and other entities on which the member serves
ex officio, whether or not the entity is a legislative one.
(5) In addition to the mileage and per diem expense payments
provided by this section, a member of the Legislative Assembly
may receive reimbursement for actual and necessary expenses,
subject to approval by the President of the Senate or Speaker of
the House of Representatives, for legislative business outside of
the state.
(6) The President of the Senate and the Speaker of the House of
Representatives may delegate to the chairpersons of interim and
statutory committees and task forces the approval authority
granted to the President and the Speaker by subsection (4) of
this section, with respect to expenses incurred in attending any
meeting of a particular committee or task force.
{ - (7) Amounts received under subsections (3) to (5) of this
section are excluded from gross income and expenditures of the
amounts are excluded in computing deductions for purposes of ORS
chapter 316. If there is attached to the personal income return a
schedule of all ordinary and necessary business expenses paid
during the tax year as a member of the Legislative Assembly, a
deduction may be claimed on the return for legislative expenses
paid in excess of the amounts received under subsections (3) to
(5) of this section. Expenses of members of the Legislative
Assembly who are reimbursed by the state for actual expenses for
meals and lodging associated with state travel for the same
period during which a legislator receives per diem are subject to
state income tax. - }
{ - (8) - } { + (7) + } For periods when the Legislative
Assembly is not in session, the Legislative Administration
Committee shall provide for a telephone and an expense allowance
for members of the Legislative Assembly that is in addition to
the amount allowed under subsection (4) of this section. In
determining the amount of allowance for members, the committee
shall consider the geographic area of the member's district. The
additional allowance shall reflect travel expenses necessary to
communicate in districts of varying sizes.
{ - (9) - } { + (8) + } The per diem allowance referred to
in subsections (3) and (4) of this section shall be the amount
fixed for per diem allowance that is authorized by the United
States Internal Revenue Service to be excluded from gross income
without itemization.
SECTION 9. { + The amendments to ORS 171.072, 316.117,
316.130, 316.362, 316.680, 316.687, 316.690 and 316.695 by
sections 1 to 8 of this 2013 Act apply to tax years beginning on
or after January 1, 2018. + }
SECTION 10. Section 4, chapter 280, Oregon Laws 2003, is
amended to read:
{ + Sec. 4. + } { - Section 2 of this 2003 Act - }
{ + ORS 316.699 + } and the amendments to ORS 316.680 by section
3 { - of this 2003 Act - } { + , chapter 280, Oregon Laws
2003, + } apply to contributions made to a college savings
network account for tax years beginning on or after January 1,
2004 { + , and before January 1, 2018 + }.
SECTION 11. Section 3, chapter 747, Oregon Laws 1999, is
amended to read:
{ + Sec. 3. + } { - Section 2 of this 1999 Act - }
{ + ORS 316.846 + } applies to tax years beginning on or after
January 1, 2000 { + , and before January 1, 2018 + }.
SECTION 12. { + ORS 316.076 applies to tax years beginning
before January 1, 2018. + }
SECTION 13. { + ORS 316.838 applies to charitable
contributions made in tax years beginning on or after January 1,
1989, and before January 1, 2018. + }
SECTION 14. { + ORS 316.056 applies to bonds issued in tax
years beginning before January 1, 2018. + }
SECTION 15. { + (1) ORS 316.778 applies to tax years beginning
before January 1, 2018.
(2) ORS 317.391 applies to tax years beginning before January
1, 2018. + }
SECTION 16. Section 4, chapter 66, Oregon Laws 2010, is amended
to read:
{ + Sec. 4. + } { - Section 2 of this 2010 Act - }
{ + ORS 316.856 + } applies to tax years beginning on or after
January 1, 2010, and before January 1, { - 2014 - } { +
2018 + }.
SECTION 17. { + ORS 316.848 applies to deposits to or
withdrawals from individual development accounts made in tax
years beginning before January 1, 2018. + }
SECTION 18. Section 6, chapter 30, Oregon Laws 1999, is amended
to read:
{ + Sec. 6. + } (1) { - Sections 2 and 4 of this 1999
Act - } { + ORS 317.057 and 713.300 + } and the amendments to
ORS 713.025 by section 5 { - of this 1999 Act - } { + ,
chapter 30, Oregon Laws 1999, + } apply to activities occurring
on or after { - the effective date of this 1999 Act - } { +
October 23, 1999 + }.
(2) Notwithstanding subsection (1) of this section,
{ - section 2 (2) of this 1999 Act - } { + ORS 317.057 (2)
+ }applies to tax years beginning on and after January 1,
1997 { + , and before January 1, 2018 + }.
SECTION 19. Section 7, chapter 826, Oregon Laws 2005, as
amended by section 21, chapter 906, Oregon Laws 2007, is amended
to read:
{ + Sec. 7. + } Section 6, chapter 826, Oregon Laws 2005,
applies to tax years beginning on or after January 1, 2006, and
before January 1, { - 2014 - } { + 2018 + }.
SECTION 20. Section 10, chapter 826, Oregon Laws 2005, as
amended by section 22, chapter 906, Oregon Laws 2007, is amended
to read:
{ + Sec. 10. + } Section 9, chapter 826, Oregon Laws 2005,
applies to tax years beginning on or after January 1, 2006, and
before January 1, { - 2014 - } { + 2018 + }.
SECTION 21. Section 15, chapter 906, Oregon Laws 2007, is
amended to read:
{ + Sec. 15. + } { - Sections 12 and 14 of this 2007
Act - } { + ORS 316.795 and 317.092 + } apply to tax years
beginning on or after January 1, 2007 { + , and before January 1,
2018 + }.
SECTION 22. { + ORS 316.074 applies to tax years beginning
before January 1, 2018. + }
SECTION 23. { + ORS 316.698 and 317.394 apply to tax years
beginning before January 1, 2018. + }
SECTION 24. { + ORS 316.744 and 317.386 apply to tax years
beginning before January 1, 2018. + }
SECTION 25. { + ORS 461.560 applies to lottery tickets sold
and prizes awarded in tax years beginning before January 1,
2018. + }
SECTION 26. { + ORS 316.789 and 316.791 apply to tax years
beginning before January 1, 2018. + }
SECTION 27. { + ORS 316.685 (1) and (2) apply to tax years
beginning before January 1, 2018. + }
SECTION 28. { + This 2013 Act takes effect on the 91st day
after the date on which the 2013 regular session of the
Seventy-seventh Legislative Assembly adjourns sine die. + }
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