Bill Text: OR SB883 | 2011 | Regular Session | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
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-Introduced.html
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-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 3725
Senate Bill 883
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 as
introduced.
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.
A BILL FOR AN ACT
Relating to decreases in capital gains tax rates; creating new
provisions; amending ORS 316.037, 316.045, 316.122, 317.061 and
318.020; 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 a rate equal to 0.5 multiplied by the rate applicable
under subsection (1) of this section. + }
{ - (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 a rate equal to 0.5 multiplied by the rate applicable
under subsection (1) of this section. + }
{ - (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. ORS 317.061, as amended by sections 5 and 7, chapter
745, Oregon Laws 2009, is amended to read:
317.061. { + (1) + } The rate of the tax imposed by and
computed under this chapter is:
{ - (1) - } { + (a) + } Six and six-tenths percent of the
first $250,000 of taxable income, or fraction thereof; and
{ - (2) - } { + (b) + } Seven and six-tenths percent of any
amount of taxable income in excess of $250,000.
{ + (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 a rate equal to 0.5 multiplied by the rate applicable
under subsection (1) of this section. + }
SECTION 5. ORS 317.061, as amended by sections 5, 7 and 9,
chapter 745, Oregon Laws 2009, is amended to read:
317.061. { + (1) + } The rate of the tax imposed by and
computed under this chapter is:
{ - (1) - } { + (a) + } Six and six-tenths percent of the
first $10 million of taxable income, or fraction thereof; and
{ - (2) - } { + (b) + } Seven and six-tenths percent of any
amount of taxable income in excess of $10 million.
{ + (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 a rate equal to 0.5 multiplied by the rate applicable
under subsection (1) of this section. + }
SECTION 6. 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 7. ORS 316.045 is amended to read:
316.045. (1) As used in this section:
(a) 'Farming' means:
(A) Raising, harvesting and selling crops;
(B) Feeding, breeding, managing or selling livestock, poultry,
fur-bearing animals or honeybees or the produce thereof;
(C) Dairying and selling dairy products;
(D) Stabling or training equines, including but not limited to
providing riding lessons, training clinics and schooling shows;
(E) Propagating, cultivating, maintaining or harvesting aquatic
species and bird and animal species to the extent allowed by the
rules adopted by the State Fish and Wildlife Commission;
(F) On-site constructing and maintaining equipment and
facilities used for the activities described in this subsection;
(G) Preparing, storing or disposing of, by marketing or
otherwise, the products or by-products raised for human or animal
use on land employed in activities described in this subsection;
or
(H) Any other agricultural or horticultural activity or animal
husbandry, or any combination of these activities, except that
'farming' does not include growing and harvesting trees of a
marketable species other than growing and harvesting cultured
Christmas trees or certain hardwood timber described in ORS
321.267 (3) or 321.824 (3).
(b) 'Section 1231 gain' has the meaning given that term in
section 1231 of the Internal Revenue Code.
(2) Notwithstanding ORS 316.037, taxable income that consists
of net long-term capital gain shall be subject to tax under this
chapter at a rate of five percent { + , unless a lower rate
applies under ORS 316.037 (2), + }if all of the following
conditions apply:
(a) The gain is:
(A) Derived from the sale or exchange of capital assets
consisting of ownership interests in a corporation, partnership
or other entity in which, prior to the sale or exchange, the
taxpayer owned at least a 10 percent ownership interest; or
(B) Section 1231 gain.
(b) The property that was sold or exchanged consisted of:
(A) Ownership interests in a corporation, partnership or other
entity that is engaged in the trade or business of farming; or
(B) Property that is predominantly used in the trade or
business of farming.
(c) The sale or exchange is to a person who is not related to
the taxpayer under section 267 of the Internal Revenue Code.
(d) The sale or exchange constitutes a substantially complete
termination of all of the taxpayer's ownership interests in a
trade or business that is engaged in farming or a substantially
complete termination of all of the taxpayer's ownership interests
in property that is employed in the trade or business of farming.
Ownership of a farm dwelling or farm homesite does not constitute
ownership of property employed in the trade or business of
farming.
(3) If the taxpayer has net long-term capital gain derived in
part from the sale or exchange of property described in
subsection (2)(b) of this section and in part from the sale or
exchange of all other property, the net long-term capital gain
that is subject to tax under this section shall be determined as
follows:
(a) Compute the net long-term capital gain derived from all
property described in subsection (2)(b) of this section that was
sold or exchanged during the tax year.
(b) Compute the net capital gain or loss from the sale or
exchange of all other property during the tax year.
(c) If the amount determined under paragraph (b) of this
subsection is a net capital gain, the gain that is subject to tax
under subsection (2) of this section shall be the amount
determined under paragraph (a) of this subsection.
(d) If the amount determined under paragraph (b) of this
subsection is a net capital loss, the gain that is subject to tax
under subsection (2) of this section shall be the amount
determined under paragraph (a) of this subsection minus the
amount determined under paragraph (b) of this subsection.
SECTION 8. { + (1) The amendments to ORS 316.037 and 316.045
by sections 1 and 7 of this 2011 Act apply to tax years beginning
on or after January 1, 2011, and before January 1, 2012.
(2) The amendments to ORS 316.037 by section 2 of this 2011 Act
apply to tax years beginning on or after January 1, 2012.
(3) The amendments to ORS 316.122 and 318.020 by sections 3 and
6 of this 2011 Act apply to tax years beginning on or after
January 1, 2011.
(4) The amendments to ORS 317.061 by section 4 of this 2011 Act
apply to tax years beginning on or after January 1, 2011, and
before January 1, 2013.
(5) The amendments to ORS 317.061 by section 5 of this 2011 Act
apply to tax years beginning on or after January 1, 2013. + }
SECTION 9. { + (1) ORS 317.063 does not apply to tax years
beginning on or after January 1, 2011.
(2) ORS 316.045 does not apply to tax years beginning on or
after January 1, 2012. + }
SECTION 10. { + This 2011 Act takes effect on the 91st day
after the date on which the 2011 regular session of the
Seventy-sixth Legislative Assembly adjourns sine die. + }
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