Bill Text: OR HB2491 | 2013 | Regular Session | Introduced
Bill Title: Relating to taxation; prescribing an effective date.
Spectrum: Committee Bill
Status: (Failed) 2013-07-08 - In committee upon adjournment. [HB2491 Detail]
Download: Oregon-2013-HB2491-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 1550
House Bill 2491
Introduced and printed pursuant to House Rule 12.00. Presession
filed (at the request of House Interim Committee on Revenue)
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.
For purposes of personal income taxation, changes connection
point from federal adjusted gross income to federal taxable
income by eliminating allowance of itemized deductions or
standard deduction. Modifies rates of personal income taxation.
Applies to tax years beginning on or after January 1, 2014.
Takes effect on 91st day following adjournment sine die.
A BILL FOR AN ACT
Relating to taxation; creating new provisions; amending ORS
316.037, 316.117, 316.130, 316.362, 316.687 and 316.695; and
prescribing an effective date.
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 316.037 is amended to read:
316.037. (1)(a) A tax is imposed for each taxable year on the
entire taxable income of every resident of this state. The amount
of the tax shall be determined in accordance with the following
table:
_________________________________________________________________
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
If taxable income The tax is:
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
{ -
Not over $2,000 5% of - }
{ +
Not over $2,000 __
% of + }
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
taxable
income
Over $2,000 but not
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
{ -
o$100$plus07% - }
{ +
over $5,000 $__
plus __
% + }
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
of the excess
over $2,000
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
Over $5,000 but not
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
{ -
o$310$plus09% - }
{ +
over $125,000 $__
plus __
% + }
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
of the excess
over $5,000
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
{ -
Over $125,000 $11,110 plus 9.9% - }
{ +
Over $125,000 $___
plus __
% + }
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
of the excess
over $125,000
____________________________________________________________
END OF POSSIBLE IRREGULAR TABULAR TEXT
____________________________________________________________
_________________________________________________________________
(b) For tax years beginning in each calendar year, the
Department of Revenue shall adopt a table that shall apply in
lieu of the table contained in paragraph (a) of this subsection,
as follows:
(A) Except as provided in subparagraph (D) of this paragraph,
the minimum and maximum dollar amounts for each bracket for which
a tax is imposed shall be increased by the cost-of-living
adjustment for the calendar year.
(B) The rate applicable to any rate bracket as adjusted under
subparagraph (A) of this paragraph shall not be changed.
(C) The amounts setting forth the tax, to the extent necessary
to reflect the adjustments in the rate brackets, shall be
adjusted.
(D) The rate brackets applicable to taxable income in excess of
$125,000 may not be adjusted.
(c) For purposes of paragraph (b) of this subsection, the
cost-of-living adjustment for any calendar year is the percentage
(if any) 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
second quarter of the calendar year 1992.
(d) As used in this subsection, '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.
(e) If any increase determined under paragraph (b) of this
subsection is not a multiple of $50, the increase shall be
rounded to the next lower multiple of $50.
(2) A tax is imposed for each taxable year upon the entire
taxable income of every part-year resident of this state. The
amount of the tax shall be computed under subsection (1) of this
section as if the part-year resident were a full-year resident
and shall be multiplied by the ratio provided under ORS 316.117
to determine the tax on income derived from sources within this
state.
(3) A tax is imposed for each taxable year on the taxable
income of every full-year nonresident that is derived from
sources within this state. The amount of the tax shall be
determined in accordance with the table set forth in subsection
(1) of this section.
SECTION 3. 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) - } 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 4. 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) - } { + 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 5. 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 6. 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 7. { + The amendments to ORS 316.037, 316.117,
316.130, 316.362, 316.687 and 316.695 by sections 1 to 6 of this
2013 Act apply to tax years beginning on or after January 1,
2014. + }
SECTION 8. { + 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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