Bill Text: OR HB2413 | 2011 | Regular Session | Introduced

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Bill Title: Relating to taxation; prescribing an effective date.

Sponsorship: Partisan Bill (Democrat 2)

Status: (Failed) 2011-06-30 - In committee upon adjournment. [HB2413 Detail]

Download: Oregon-2011-HB2413-Introduced.html

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     76th OREGON LEGISLATIVE ASSEMBLY--2011 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 1545

                         House Bill 2413

Sponsored by Representative READ, Senator HASS (Presession
  filed.)

                             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.

  Revises corporate minimum tax for C corporations by imposing
tax based on combination of taxpayer's fixed assets, Oregon sales
and payroll for tax year. Restricts use of tax credits to 10
percent of taxpayer's liability for tax year before allowance of
credits.
  Applies to tax years beginning on or after January 1, 2011.
  Takes effect on 91st day following adjournment sine die.

                        A BILL FOR AN ACT
Relating to taxation; creating new provisions; amending ORS
  317.090; and prescribing an effective date.
Be It Enacted by the People of the State of Oregon:
  SECTION 1. ORS 317.090, as amended by section 1, chapter 745,
Oregon Laws 2009, is amended to read:
  317.090. (1) As used in this section  { - , - }  { + :
  (a) 'Fixed assets' means property, plant and equipment owned or
rented by the taxpayer and used in this state during the tax
year.
  (b) + } 'Oregon sales' means:
    { - (a) - }   { + (A) + } If the corporation apportions
business income under ORS 314.650 to 314.665 for Oregon tax
purposes, the total sales of the taxpayer in this state during
the tax year, as determined for purposes of ORS 314.665;
    { - (b) - }   { + (B) + } If the corporation does not
apportion business income for Oregon tax purposes, the total
sales in this state that the taxpayer would have had, as
determined for purposes of ORS 314.665, if the taxpayer were
required to apportion business income for Oregon tax purposes; or
    { - (c) - }   { + (C) + } If the corporation apportions
business income using a method different from the method
prescribed by ORS 314.650 to 314.665, Oregon sales as defined by
the Department of Revenue by rule.
   { +  (c) 'Payroll' means the total amount paid in this state
during the tax year by the taxpayer as compensation. + }
  (2) { + (a) + } Each corporation or affiliated group of
corporations filing a return under ORS 317.710 shall pay annually
to the state, for the privilege of carrying on or doing business
by it within this state, a minimum tax { + , computed by
multiplying ___ percent by the sum of the taxpayer's fixed

assets, Oregon sales and payroll for the tax year, as properly
reported on a return. + }   { - as follows: - }
    { - (a) If Oregon sales properly reported on a return
are: - }
    { - (A) Less than $500,000, the minimum tax is $150. - }
    { - (B) $500,000 or more, but less than $1 million, the
minimum tax is $500. - }
    { - (C) $1 million or more, but less than $2 million, the
minimum tax is $1,000. - }
    { - (D) $2 million or more, but less than $3 million, the
minimum tax is $1,500. - }
    { - (E) $3 million or more, but less than $5 million, the
minimum tax is $2,000. - }
    { - (F) $5 million or more, but less than $7 million, the
minimum tax is $4,000. - }
    { - (G) $7 million or more, but less than $10 million, the
minimum tax is $7,500. - }
    { - (H) $10 million or more, but less than $25 million, the
minimum tax is $15,000. - }
    { - (I) $25 million or more, but less than $50 million, the
minimum tax is $30,000. - }
    { - (J) $50 million or more, but less than $75 million, the
minimum tax is $50,000. - }
    { - (K) $75 million or more, but less than $100 million, the
minimum tax is $75,000. - }
    { - (L) $100 million or more, the minimum tax is
$100,000. - }
  (b) If a corporation is an S corporation, the minimum tax is
$150.
  (3) The minimum tax is not apportionable (except in the case of
a change of accounting periods), and is payable in full for any
part of the year during which a corporation is subject to tax.
  SECTION 2.  { + Section 3 of this 2011 Act is added to and made
a part of ORS chapter 315. + }
  SECTION 3.  { + For tax years beginning on or after January 1,
2011, the amount by which a taxpayer's liability for taxes
imposed under ORS chapter 316, 317 or 318 may be reduced by the
allowance of tax credits under this chapter or ORS chapters 316
or 317 may not exceed 10 percent of the taxpayer's liability
before allowance of any credit. + }
  SECTION 4.  { + The amendments to ORS 317.090 by section 1 of
this 2011 Act apply to tax years beginning on or after January 1,
2011. + }
  SECTION 5.  { + This 2011 Act takes effect on the 91st day
after the date on which the 2011 session of the Seventy-sixth
Legislative Assembly adjourns sine die. + }
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