Bill Text: OR HB2540 | 2011 | Regular Session | Introduced

Oregon House Bill 2540 (Prior Session Legislation)

Introduced

Bill Title: Relating to tax subtraction for dividends received; prescribing an effective date; providing for revenue raising that requires approval by a three-fifths majority.

Spectrum: Unknown

Status: (Failed) 2011-06-30 - In committee upon adjournment. [HB2540 Detail]

Download: Oregon-2011-HB2540-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 1603

                         House Bill 2540

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.

  Temporarily reduces tax subtraction for dividends received by
corporations. Applies to tax years beginning on or after January
1, 2011, and before January 1, 2014.
  Takes effect on 91st day following adjournment sine die.

                        A BILL FOR AN ACT
Relating to tax subtraction for dividends received; creating new
  provisions; amending ORS 317.267; 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 317.267 is amended to read:
  317.267. (1) To derive Oregon taxable income, there shall be
added to federal taxable income amounts received as dividends
from corporations deducted for federal purposes pursuant to
section 243 or 245 of the Internal Revenue Code, except section
245(c) of the Internal Revenue Code, amounts paid as dividends by
a public utility or telecommunications utility and deducted for
federal purposes pursuant to section 247 of the Internal Revenue
Code or dividends eliminated under Treasury Regulations adopted
under section 1502 of the Internal Revenue Code that are paid by
members of an affiliated group that are eliminated from a
consolidated federal return pursuant to ORS 317.715 (2).
  (2) To derive Oregon taxable income, after the modification
prescribed under subsection (1) of this section, there shall be
subtracted from federal taxable income an amount equal to
  { - 70 - }   { +  ___ + } percent of dividends (determined
without regard to section 78 of the Internal Revenue Code)
received or deemed received from corporations if such dividends
are included in federal taxable income. However:
  (a) In the case of any dividend on debt-financed portfolio
stock as described in section 246A of the Internal Revenue Code,
the subtraction allowed under this subsection shall be reduced
under the same conditions and in same amount as the dividends
received deduction otherwise allowable for federal income tax
purposes is reduced under section 246A of the Internal Revenue
Code.

  (b) In the case of any dividend received from a 20 percent
owned corporation, as defined in section 243(c) of the Internal
Revenue Code, this subsection shall be applied by substituting
  { -  ' 80 percent' for '70 percent.' - }  { +  ' ___ percent'
for ' ___ percent.' + }
  (c) A dividend that is not treated as a dividend under section
243(d) or 965(c)(3) of the Internal Revenue Code may not be
treated as a dividend for purposes of this subsection.
  (d) If a dividends received deduction is not allowed for
federal tax purposes because of section 246(a) or (c) of the
Internal Revenue Code, a subtraction may not be made under this
subsection for received dividends that are described in section
246(a) or (c) of the Internal Revenue Code.
  (3) There shall be excluded from the sales factor of any
apportionment formula employed to attribute income to this state
any amount subtracted from federal taxable income under
subsection (2) of this section.
  SECTION 2. ORS 317.267, as amended by section 1 of this 2011
Act, is amended to read:
  317.267. (1) To derive Oregon taxable income, there shall be
added to federal taxable income amounts received as dividends
from corporations deducted for federal purposes pursuant to
section 243 or 245 of the Internal Revenue Code, except section
245(c) of the Internal Revenue Code, amounts paid as dividends by
a public utility or telecommunications utility and deducted for
federal purposes pursuant to section 247 of the Internal Revenue
Code or dividends eliminated under Treasury Regulations adopted
under section 1502 of the Internal Revenue Code that are paid by
members of an affiliated group that are eliminated from a
consolidated federal return pursuant to ORS 317.715 (2).
  (2) To derive Oregon taxable income, after the modification
prescribed under subsection (1) of this section, there shall be
subtracted from federal taxable income an amount equal to   { -
___ - }  { +  70 + } percent of dividends (determined without
regard to section 78 of the Internal Revenue Code) received or
deemed received from corporations if such dividends are included
in federal taxable income. However:
  (a) In the case of any dividend on debt-financed portfolio
stock as described in section 246A of the Internal Revenue Code,
the subtraction allowed under this subsection shall be reduced
under the same conditions and in same amount as the dividends
received deduction otherwise allowable for federal income tax
purposes is reduced under section 246A of the Internal Revenue
Code.
  (b) In the case of any dividend received from a 20 percent
owned corporation, as defined in section 243(c) of the Internal
Revenue Code, this subsection shall be applied by substituting
  { -  ' ___ percent' for ' ___ percent.' - }  { +  '80 percent'
for ' 70 percent.' + }
  (c) A dividend that is not treated as a dividend under section
243(d) or 965(c)(3) of the Internal Revenue Code may not be
treated as a dividend for purposes of this subsection.
  (d) If a dividends received deduction is not allowed for
federal tax purposes because of section 246(a) or (c) of the
Internal Revenue Code, a subtraction may not be made under this
subsection for received dividends that are described in section
246(a) or (c) of the Internal Revenue Code.
  (3) There shall be excluded from the sales factor of any
apportionment formula employed to attribute income to this state
any amount subtracted from federal taxable income under
subsection (2) of this section.
  SECTION 3.  { + (1) The amendments to ORS 317.267 by section 1
of this 2011 Act apply to tax years beginning on or after January
1, 2011.
  (2) The amendments to ORS 317.267 by section 2 of this 2011 Act
apply to tax years beginning on or after January 1, 2014. + }
  SECTION 4.  { + 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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