Bill Text: OR SB336 | 2011 | Regular Session | Introduced
Bill Title: Relating to tax on capital gains; prescribing an effective date.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Failed) 2011-06-30 - In committee upon adjournment. [SB336 Detail]
Download: Oregon-2011-SB336-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 1438 Senate Bill 336 Sponsored by Senator HASS, Representative READ (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. Reduces rate of tax on certain capital gains of personal income taxpayers. Transfers amount equal to estimated revenue from tax on all net capital gains to Oregon Rainy Day Fund. 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 tax on capital gains; creating new provisions; amending ORS 293.148, 316.037 and 316.122; and prescribing an effective date. Be It Enacted by the People of the State of Oregon: SECTION 1. ORS 316.037, as amended by section 1, chapter 746, Oregon Laws 2009, 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 ____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. _______________________________________________________________ over $5,000 $100 plus 7% ____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. _______________________________________________________________ over $125,000 $310 plus 9% ____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 but not ____NOTE_TO_WEB_CUSTOMERS:__________________________________ THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR. FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE. _______________________________________________________________ over $250,000 $11,110 plus 10.8% ____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 ____NOTE_TO_WEB_CUSTOMERS:__________________________________ THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR. FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE. _______________________________________________________________ Over $250,000 $24,610 plus 11% ____NOTE_TO_WEB_CUSTOMERS:__________________________________ THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR. FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE. _______________________________________________________________ of the excess over $250,000 _________________________________________________________________ ____________________________________________________________ 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) Notwithstanding subsection (1) of this section, any gain that is treated as net capital gain for federal tax purposes and that is included in taxable income in this state shall be taxed at the lesser of the rate applicable under subsection (1) of this section or nine percent. + } { - (2) - } { + (3) + } 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) - } { + subsections (1) and (2) + } 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) - } { + (4) + } 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) - } { + subsections (1) and (2) + } of this section. SECTION 2. ORS 316.037, as amended by sections 1 and 2, chapter 746, Oregon Laws 2009, 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 ____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. _______________________________________________________________ over $5,000 $100 plus 7% ____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. _______________________________________________________________ over $125,000 $310 plus 9% ____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% ____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) Notwithstanding subsection (1) of this section, any gain that is treated as net capital gain for federal tax purposes and that is included in taxable income in this state shall be taxed at the lesser of the rate applicable under subsection (1) of this section or nine percent. + } { - (2) - } { + (3) + } 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) - } { + subsections (1) and (2) + } 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) - } { + (4) + } 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) - } { + subsections (1) and (2) + } of this section. SECTION 3. ORS 316.122 is amended to read: 316.122. (1) If the federal taxable income of husband and wife (one being a part-year resident and the other a nonresident) is determined on a joint federal return, their taxable income in this state shall be separately determined, unless they elect to file a joint return, in which case their tax on their joint income shall be determined in this state pursuant to ORS 316.037 { - (3) - } { + (4) + }. (2) If the federal taxable income of husband and wife (one being a full-year resident and the other a part-year resident) is determined on a joint federal return, their taxable income in this state shall be separately determined, unless they elect to file a joint return, in which case their tax on their joint income shall be determined in this state pursuant to ORS 316.037 { - (2) - } { + (3) + }. (3) If the federal taxable income of husband and wife (one being a full-year resident and the other a nonresident) is determined on a joint federal return, their taxable income in the state shall be separately determined, unless they elect to file a joint return, in which case their tax on their joint income shall be determined in this state pursuant to ORS 316.037 { - (3) - } { + (4) + }. (4) For purposes of computing the tax of a husband and wife under this section, if one of the spouses is a full-year resident individual, then as used in ORS 316.037 { - (2) or - } (3) { + or (4) + }, that spouse's taxable income derived from Oregon sources is that spouse's entire federal taxable income, defined in the laws of the United States, with the modifications, additions and subtractions provided in this chapter and other laws of this state applicable to personal income taxation. (5) The provisions of ORS 316.367 with respect to joint returns apply if both husband and wife are part-year residents or full-year nonresidents. SECTION 4. { + Except as provided in ORS 293.148, on or before July 1 of each year, beginning with July 1, 2012, the Department of Revenue shall: (1) For tax years beginning on or after January 1 of the preceding year and ending before January 1 of the current year, estimate the amount of personal income and corporate excise and income tax revenue received by the department that is attributable to net capital gain; and (2) Transfer an amount equal to the estimate required under subsection (1) of this section to the Oregon Rainy Day Fund established in ORS 293.144. + } SECTION 5. ORS 293.148 is amended to read: 293.148. (1) If the moneys in the Oregon Rainy Day Fund established by ORS 293.144 just prior to the time of a transfer scheduled under ORS 293.144 (3) or 293.146 { + or section 4 of this 2011 Act + } equal at least 7-1/2 percent of the amount of General Fund revenues collected during the prior biennium, moneys that would otherwise be transferred to the Oregon Rainy Day Fund shall be deposited in the General Fund. (2) If the moneys in the Oregon Rainy Day Fund just prior to the time of a transfer scheduled under ORS 293.144 (3) or 293.146 { + or section 4 of this 2011 Act + } do not equal at least 7-1/2 percent of the amount of General Fund revenues collected during the prior biennium, the transfer to the Oregon Rainy Day Fund shall be made regardless of whether that transfer increases the amount in the Oregon Rainy Day Fund to at least 7-1/2 percent of the amount of General Fund revenues collected during the prior biennium. SECTION 6. { + Section 4 of this 2011 Act and the amendments to ORS 293.148, 316.037 and 316.122 by sections 1, 2, 3 and 5 of this 2011 Act apply to tax years beginning on or after January 1, 2011. + } SECTION 7. { + 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. + } ----------