Bill Text: OR SB664 | 2011 | Regular Session | Introduced

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Bill Title: Relating to inheritance tax; appropriating money; prescribing an effective date.

Spectrum: Committee Bill

Status: (Failed) 2011-06-30 - In committee upon adjournment. [SB664 Detail]

Download: Oregon-2011-SB664-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 2775

                         Senate Bill 664

Sponsored by COMMITTEE ON GENERAL GOVERNMENT, CONSUMER AND SMALL
  BUSINESS PROTECTION

                             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.

  Provides for annual adjustment, based on U.S. City Average
Consumer Price Index, of threshold for filing inheritance tax
return. Establishes Next Generation Fund. Directs inheritance tax
revenues to Next Generation Fund. Appropriates moneys to Oregon
Student Assistance Commission to fund Oregon Opportunity Grant
program and to Department of Education to fund Oregon
prekindergarten program.
  Applies to estates of decedents dying on or after January 1,
2012, and to revenues received by Department of Revenue on or
after January 1, 2012.
  Takes effect on 91st day following adjournment sine die.

                        A BILL FOR AN ACT
Relating to inheritance tax; creating new provisions; amending
  ORS 118.160, 118.510 and 118.535; appropriating money; and
  prescribing an effective date.
Be It Enacted by the People of the State of Oregon:
  SECTION 1. ORS 118.160 is amended to read:
  118.160. (1) Except as provided in subsection   { - (2) - }
 { + (3) + } of this section:
  (a) An inheritance tax return is not required with respect to
the estates of decedents dying on or after January 1, 1987, and
before January 1, 2003, unless a federal estate tax return is
required to be filed; and
  (b) An inheritance tax return is not required with respect to
the estates of decedents dying on or after:
  (A) January 1, 2003, and before January 1, 2004, unless the
value of the gross estate is $700,000 or more;
  (B) January 1, 2004, and before January 1, 2005, unless the
value of the gross estate is $850,000 or more;
  (C) January 1, 2005, and before January 1, 2006, unless the
value of the gross estate is $950,000 or more; or
  (D) January 1, 2006, unless the value of the gross estate is $1
million or more.
   { +  (2)(a) For estates of decedents dying on or after January
1, 2012, the threshold amount in subsection (1)(b)(D) of this
section shall be annually adjusted. The computation shall be as
follows:
  (A) Divide 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 monthly averaged index for the first
six months of 2011.
  (B) Recompute the dollar amount of the threshold by multiplying
$1 million by the appropriate indexing factor determined as
provided in subparagraph (A) of this paragraph.  Round off the
amount obtained under this paragraph to the nearest $1.
  (b) As used in this section, '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.
  (c) The threshold amount established under this subsection
shall apply to estates of decedents dying during the calendar
year. + }
    { - (2) - }   { + (3) + } In every estate, whether or not
subject to administration and whether or not a federal estate tax
return is required to be filed, the executor shall at such times
and in such manner as required by rules of the Department of
Revenue, file with the department a return in a form provided by
the department setting forth a list and description of all
transfers of property, in trust or otherwise, made by the
decedent in the lifetime of the decedent as a division or
distribution of the estate of the decedent made within the
three-year period ending on the date of death or intended to take
effect at or after death and any further data that the department
requires to determine inheritance tax under this chapter.
  SECTION 2. ORS 118.510 is amended to read:
  118.510. The net revenue from the taxes imposed by ORS 118.005
to 118.840 (including temporary payments under ORS 118.260 and
fees, taxes, interest and penalties), after deduction of refunds,
shall be   { - credited to the General Fund to be available to
meet any expense or obligation of this state lawfully
incurred - }  { + deposited in the Next Generation Fund
established under section 4 of this 2011 Act + }.
  SECTION 3. ORS 118.535 is amended to read:
  118.535. (1) If the Department of Revenue determines that the
executor has not made an appraisal that is needed in order to
comply with the provisions of ORS 118.005 to 118.840, the
department may cause an appraisal to be made by a fee appraiser
to so ensure compliance.
  (2) The cost of the appraisal including the appraiser's fee as
a witness in the event of an appeal shall be paid out of the
taxes collected under this chapter before the net revenue is
  { - credited to the General Fund - }   { + deposited in the
Next Generation Fund + } as provided in ORS 118.510.
  SECTION 4.  { + The Next Generation Fund is established
separate and distinct from the General Fund. Interest earned by
the Next Generation Fund shall be credited to the Next Generation
Fund.  Moneys in the fund shall be distributed as follows:
  (1) Fifty percent is continuously appropriated to the Oregon
Student Assistance Commission for the purpose of funding grants
through the Oregon Opportunity Grant program under ORS 348.260.
  (2) Fifty percent is continuously appropriated to the
Department of Education for the purpose of funding the Oregon
prekindergarten program described in ORS 329.170 to 329.200. + }
  SECTION 5.  { + The amendments to ORS 118.160 by section 1 of
this 2011 Act apply to estates of decedents dying on or after
January 1, 2012. + }
  SECTION 6.  { + Section 4 of this 2011 Act and the amendments
to ORS 118.510 and 118.535 by sections 2 and 3 of this 2011 Act
apply to revenues received by the Department of Revenue on or
after January 1, 2012. + }
  SECTION 7.  { + This 2011 Act takes effect on the 91st day
after the date on which the regular session of the Seventy-sixth
Legislative Assembly adjourns sine die. + }
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