Bill Text: OR HB2539 | 2011 | Regular Session | Introduced
Bill Title: Relating to corporate minimum tax; prescribing an effective date.
Sponsorship: Unknown
Status: (Failed) 2011-06-30 - In committee upon adjournment. [HB2539 Detail]
Download: Oregon-2011-HB2539-Introduced.html
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 1602
House Bill 2539
Ordered printed by the Speaker pursuant to House Rule 12.00A (5).
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.
Bases corporate minimum tax levied on C corporations on level
of business activity in state. Discontinues minimum tax
applicable to C corporations based on level of Oregon sales.
Applies to tax years beginning on or after January 1, 2012.
Takes effect on 91st day following adjournment sine die.
A BILL FOR AN ACT
Relating to corporate minimum tax; 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, 'Oregon sales '
means: - }
{ - (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) 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) 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. - }
{ - (2) - } { + (1) + } 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 { + of the
greater of $10 or the amount required by sections 2 and 3 of this
2011 Act. + } { - 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) - } { + (2) + } 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. { + As used in this section and section 3 + }
{ + of this 2011 Act, unless the context requires otherwise:
(1)(a) 'Business activity' means a transfer of legal or
equitable title to or rental of property, whether real, personal
or mixed, tangible or intangible, or the performance of services,
or a combination thereof, made or engaged in, or caused to be
made or engaged in, within this state, whether in intrastate,
interstate or foreign commerce, with the object of gain, benefit
or advantage, whether direct or indirect, to the taxpayer or to
others.
(b) 'Business activity' does not include services rendered by
an employee to the employee's employer, services rendered as a
director of a corporation, or a casual transaction.
(c) 'Business activity' includes activity of a taxpayer
incidental to the taxpayer's other business activities.
(2) 'Casual transaction' means a transaction made or engaged in
other than in the ordinary course of repeated and successive
transactions of a like character, except that a transaction made
or engaged in by a taxpayer that is incidental to that taxpayer's
regular business activity constitutes a business activity under
this section and section 3 of this 2011 Act.
(3)(a) 'Compensation' means all wages, salaries, fees, bonuses,
commissions or payments made in the tax year on behalf of or for
the benefit of employees, officers or directors of the taxpayer.
(b) 'Compensation' includes, but is not limited to, payments
that are subject to or specifically exempt or excepted from
withholding under sections 3401 to 3406 of the Internal Revenue
Code.
(c) 'Compensation' also includes, on a cash or accrual basis
consistent with the taxpayer's method of accounting for federal
income tax purposes, payments to state and federal unemployment
compensation funds, payments under the Federal Insurance
Contributions Act and similar social insurance programs,
payments, including self-insurance, for workers' compensation
insurance, payments to individuals not currently working,
payments to dependents and heirs of individuals because of
current or former labor services rendered by those individuals,
payments to a pension, retirement or profit sharing plan, and
payments for insurance for which employees are the beneficiaries,
including payments under health and welfare and noninsured
benefit plans and payments of fees for the administration of
health and welfare and noninsured benefit plans.
(d) 'Compensation' does not include any of the following:
(A) Discounts on the price of the taxpayer's merchandise or
services sold to the taxpayer's employees, officers or directors
that are not available to other customers.
(B) Payments to an independent contractor.
(C) Payments to state and federal unemployment compensation
funds.
(4)(a) 'Dividends' means any distribution of money or property,
other than the distribution of newly issued stock of the same
enterprise, to the owners of a business enterprise with respect
to their ownership interest in the enterprise from the
accumulated revenues and profits of the enterprise.
(b) 'Dividends' does not include any of the following:
(A) Distributions of money or property to beneficiaries of a
trust qualified under section 401 of the Internal Revenue Code.
(B) Cash or noncash payments of life, sickness, accident or
other benefits to members or their dependents or designated
beneficiaries from a voluntary employees' beneficiary association
qualified under section 501(c)(9) of the Internal Revenue Code.
(C) Distributions of money or property to participants from any
common trust fund as defined under section 584 of the Internal
Revenue Code.
(D) Policyholder dividends as defined under section 808 of the
Internal Revenue Code, to the extent the dividends are not
reduced pursuant to the Internal Revenue Code.
(E) Payment of interest on deposits of depositors of a mutual
bank or credit union.
(F) Distributions of money or property to or on behalf of
beneficiaries of a trust that is either subject to taxation under
section 641 of the Internal Revenue Code or described in section
664 of the Internal Revenue Code, if the trust limits its
activities to personal investment activities that do not
constitute business activities and those incidental to or in
support of such personal investment activities.
(5) 'Employee' means an employee as defined in section 3401(c)
of the Internal Revenue Code. An individual from whom an employer
is required to withhold for federal income tax purposes shall
prima facie be deemed an employee.
(6) 'Employer' means an employer as defined in section 3401(d)
of the Internal Revenue Code. A person required to withhold for
federal income tax purposes shall prima facie be deemed an
employer.
(7) 'Enterprise value tax base' means the sum of all
compensation paid or accrued, interest paid or accrued and
dividends paid by the business enterprise, before apportionment
or allocation.
(8)(a) 'Gross receipts' means the sum of sales and rent or
lease receipts.
(b) 'Gross receipts' does not include the amounts received in
an agency or other representative capacity, solely on behalf of
another or others, excluding amounts received by persons having
the power or authority to expend or otherwise appropriate such
amounts in payment for or in consideration of sales or services
made or rendered by themselves or by others acting under their
direction and control or by such fiduciaries as guardians,
executors, administrators, receivers, conservators or trustees
other than trustees of taxes received or collected from others
under direction of the laws of the federal government or of any
state or local government.
(9)(a) 'Interest' means all amounts paid or accrued for the use
or forbearance of money or property.
(b) 'Interest' does not include amounts paid, credited or set
aside in connection with reserves by insurers to fulfill policy
and contractual responsibilities to policyholders or by voluntary
employees' beneficiary associations qualified under section
501(c)(9) of the Internal Revenue Code to fulfill obligations to
members. + }
SECTION 3. { + (1) For each tax year, there is levied and
imposed a tax at the rate of ___ percent of the enterprise value
tax base, after allocation or apportionment, of every C
corporation with business activity in this state.
(2) Notwithstanding subsection (1) of this section, if the
gross receipts of a taxpayer do not exceed $100,000 for the tax
year, the taxpayer shall be exempt from the tax levied and
imposed under this section. + }
SECTION 4. { + Sections 2 and 3 of this 2011 Act and the
amendments to ORS 317.090 by section 1 of this 2011 Act apply to
tax years beginning on or after January 1, 2012. + }
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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