Bill Text: OR SB883 | 2011 | Regular Session | Engrossed
Bill Title: Relating to decreases in capital gains tax rates; prescribing an effective date.
Spectrum: Partisan Bill (Republican 6-0)
Status: (Failed) 2011-06-30 - In committee upon adjournment. [SB883 Detail]
Download: Oregon-2011-SB883-Engrossed.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 3725
A-Engrossed
Senate Bill 883
Ordered by the Senate May 9
Including Senate Amendments dated May 9
Sponsored by Senator OLSEN; Senators TELFER, THOMSEN,
Representatives CONGER, MCLANE, PARRISH
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.
{ - Reduces rate of tax on capital gains of personal income
and corporate income and excise taxpayers. - }
{ - Applies to tax years beginning on or after January 1,
2011. - }
{ - Takes effect on 91st day following adjournment sine
die. - }
{ + Creates subtraction from federal taxable income for net
long-term capital gain. Provides greatest subtraction for gain
attributable to sale of business asset used in state and held at
least 60 consecutive months. Phases in subtraction, over
successive tax years ending in 2020, for gain attributable to
sale of non-business asset held at least 60 consecutive months.
Applies to sale of assets on or after January 1, 2013, and to
tax years beginning on or after January 1, 2013.
Takes effect only if Senate Joint Resolution 26 (2011) is
approved by people at next regular general election. Takes effect
on effective date of constitutional amendment proposed in Senate
Joint Resolution 26 (2011). + }
A BILL FOR AN ACT
Relating to decreases in capital gains tax rates; creating new
provisions; amending ORS 318.020; repealing ORS 316.045 and
317.063; and prescribing an effective date.
Be It Enacted by the People of the State of Oregon:
SECTION 1. { + Sections 2 and 3 of this 2011 Act are added to
and made a part of ORS chapter 316. + }
SECTION 2. { + (1) As used in this section and section 3 of
this 2011 Act, 'long-term capital gain' means gain recognized
through the sale of an asset that has been held by the taxpayer
for at least 60 consecutive months and that otherwise qualifies
as long-term capital gain under section 1222 of the Internal
Revenue Code. 'Long-term capital gain' does not include qualified
dividends.
(2) In addition to the other modifications to federal taxable
income contained in this chapter, to derive Oregon taxable income
there shall be subtracted from federal taxable income a
percentage of the net long-term capital gain incurred by the
taxpayer during the tax year that is included in federal taxable
income for Oregon tax purposes, as calculated in section 3 of
this 2011 Act.
(3) A taxpayer may elect not to claim a subtraction under this
section. + }
SECTION 3. { + (1) For the sale of property that has a primary
purpose of income generation, that is used in Oregon in a
revenue-producing enterprise and that has been held by the
taxpayer for at least 60 consecutive months, the subtraction
allowed under section 2 of this 2011 Act shall be determined by
multiplying 50 percent by the total of the following amounts:
(a) Net long-term capital gain recognized through the sale of
real property.
(b) The sale price of tangible personal property.
(2) For long-term capital gain other than that described in
subsection (1) of this section, the subtraction allowed shall be
a percentage of net long-term capital gain incurred by the
taxpayer that is included in federal taxable income. The
percentage shall be the following:
(a) For tax years beginning on or after January 1, 2013, and
before January 1, 2014, five percent.
(b) For tax years beginning on or after January 1, 2014, and
before January 1, 2015, 10 percent.
(c) For tax years beginning on or after January 1, 2015, and
before January 1, 2016, 15 percent.
(d) For tax years beginning on or after January 1, 2016, and
before January 1, 2017, 20 percent.
(e) For tax years beginning on or after January 1, 2017, and
before January 1, 2018, 25 percent.
(f) For tax years beginning on or after January 1, 2018, and
before January 1, 2019, 30 percent.
(g) For tax years beginning on or after January 1, 2019, and
before January 1, 2020, 35 percent.
(h) For tax years beginning on or after January 1, 2020, 40
percent. + }
SECTION 4. { + Sections 2 and 3 of this 2011 Act apply to the
sale of assets on or after January 1, 2013, and to tax years
beginning on or after January 1, 2013. + }
SECTION 5. ORS 318.020 is amended to read:
318.020. (1) There hereby is imposed upon every corporation for
each taxable year a tax at the rate provided in ORS 317.061 upon
its Oregon taxable income derived from sources within this state,
other than income for which the corporation is subject to the tax
imposed by ORS chapter 317 according to or measured by its Oregon
taxable income.
(2) Income from sources within this state includes income from
tangible or intangible property located or having a situs in this
state and income from any activities carried on in this state,
regardless of whether carried on in intrastate, interstate or
foreign commerce.
{ - (3) Income that constitutes net long-term capital gain
described in ORS 317.063 shall be taxed at the rate imposed under
ORS 317.063. - }
SECTION 6. { + ORS 316.045 and 317.063 are repealed. + }
SECTION 7. { + This 2011 Act does not become effective unless
the amendment to the Oregon Constitution proposed by Senate Joint
Resolution 26 (2011) is approved by the people at the regular
general election held in November 2012. This 2011 Act takes
effect on the effective date of that amendment. + }
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