71st OREGON LEGISLATIVE ASSEMBLY--2001 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 1230
A-Engrossed
House Bill 2206
Ordered by the Senate May 30
Including Senate Amendments dated May 30
Ordered printed by the Speaker pursuant to House Rule 12.00A (5).
Presession filed (at the request of Governor John A. Kitzhaber,
M.D., for Department of 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.
Conforms certain valuation references in property tax laws to
constitutional assessed value limitations. Conforms provision
governing de minimis corrections of value on assessment roll to
constitutional tax limitations. Restates timber privilege tax
offset rules. Conforms exemption for recreational facilities on
federal land to legislative form and style. Limits changed
property ratio used for certain adjustments to maximum assessed
value to factor of 1.00. { + Modifies provisions providing tax
credit for certain individuals engaged in practice of medicine in
rural areas. Modifies provisions dealing with tax deferred like
kind exchanges where property acquired in exchange is located
outside of Oregon.
Takes effect on 91st day following adjournment sine die. + }
A BILL FOR AN ACT
Relating to taxation; creating new provisions; amending ORS
307.050, 307.060, 308.153, 308.156, 309.203, 311.205, 316.143,
316.680, 321.312 and 321.487 and section 4, chapter 405, Oregon
Laws 1981; repealing ORS 314.290 and 317.326; and prescribing
an effective date.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 309.203 is amended to read:
309.203. (1) On or before June 15 of each year, the Department
of Revenue shall give specific written recommendations or orders
to the county assessor as to the actions which, in the
department's judgment, should be taken by the assessor in order
to achieve compliance with the real market value standard
required under ORS 308.232 in the forthcoming assessment roll.
Copies shall be sent to the county governing body for their
information. On or before July 15 following, the county assessor
shall act upon the recommendations or orders of the department,
or notify the department in writing, of any objections to the
department's recommendations or orders.
(2) After May 1, but prior to September 1, the department shall
examine the certified ratio study prepared by each county
assessor under ORS 309.200 and studies prepared by the
department, to determine if the value of all locally assessed
taxable properties complies with the real market value
requirements of ORS 308.232. The assessor and the department
shall cooperate with each other to keep the department informed
as to the assessor's needs and as to the status of the current
assessment work. If, in the judgment of the department, the
attainment of the real market value standard required under ORS
308.232 is in jeopardy, the department shall notify the assessor
in writing of the determination and the factors giving rise to
it, with the statement that if unfulfilled statutory duties
specified by the department are not met, the department shall
take action pursuant to this section. A copy of such notice shall
be sent to the county governing body, for its information. On or
before September 1, { - if necessary to meet the requirements
of ORS 308.232, - } the department shall issue a written order
to the assessor to adjust the classes of property on the
assessment roll:
(a) If the department finds that the ratio of all taxable
properties deviates more than five percent { - , - } from the
real market value level required by ORS 308.232, the department
shall order an adjustment to the real market values that will
result in
{ - assessment levels in - } compliance with ORS 308.232. The
assessor shall apply the adjustment to { - property values
shown as - } real market { - value - } { + values + } on the
assessment roll and compute corrected assessed values { + if
necessary + }. A tolerance of five percent from 100 percent may
be presumed by the department to meet the requirements of ORS
308.232. Notwithstanding satisfactory compliance with the
provisions of paragraph (b) of this subsection, the department
shall take any action necessary to achieve the real market value
level required by ORS 308.232.
(b) If the department finds that the real market value for any
class of property provided for under ORS 308.215 { - and used
in the current assessment roll as the basis for determining
assessed value - } deviates more than 10 percent from 100
percent of real market value for the class, the department shall
order a change of values to bring the class to 100 percent of
real market value. The order may be made applicable to the class
throughout the county or to the class in specific areas of the
county and may take into account variations caused by appraisals
being made in different years.
(c) If the department's order results in a valuation increase,
the increase may be appealed in the manner provided by ORS
309.100.
(3) If the department orders an adjustment to the real market
values of property under subsection (2) of this section, the
department shall immediately give notice to the assessor, showing
why the adjustment is ordered.
SECTION 2. ORS 311.205 is amended to read:
311.205. (1) After the assessor certifies the assessment and
tax roll to the tax collector, the officer in charge of the roll
may correct errors or omissions in the roll to conform to the
facts, as follows:
(a) The officer may correct a clerical error. A clerical error
is an error on the roll which either arises from an error in the
ad valorem tax records of the assessor, or the records of the
Department of Revenue for property assessed under ORS 306.126, or
which is a failure to correctly reflect the ad valorem tax
records of the assessor, or the records of the Department of
Revenue for property assessed under ORS 306.126, and which, had
it been discovered by the assessor or the department prior to the
certification of the assessment and tax roll of the year of
assessment would have been corrected as a matter of course, and
the information necessary to make the correction is contained in
such records. Such errors include, but are not limited to,
arithmetic and copying errors, and the omission or misstatement
of a land, improvement or other property value on the roll.
(b) The officer may not correct an error in valuation judgment,
except as provided in ORS 308.242 (2) and (3). Such errors are
those where the assessor would arrive at a different opinion of
value. The officer may correct any other error or omission of any
kind. Corrections that are not corrections of valuation judgment
errors include, but are not limited to, the elimination of an
assessment to one taxpayer of property belonging to another on
the assessment date, the correction of a tax limit calculation,
the correction of a value changed on appeal, or the correction of
an error in the assessed value of property resulting from an
error in the identification of a unit of property, but not an
error in a notice filed under ORS 310.060.
(c) The officer shall make any change requested by the
Department of Revenue which relates to an assessment of property
made by the department under ORS 308.505 to 308.665.
(d) The officer shall make any change ordered by the tax court
or the Department of Revenue under ORS 305.288 or 306.115.
(e) The officer shall make any change required under ORS
308A.089.
(2)(a) The officer in charge of the roll shall make corrections
with the assent and concurrence of the assessor or the
department. The direction for the correction shall be made in
writing and state the type of error and the statutory authority
for the correction. Corrections may be made to the roll for any
year or years not exceeding five years prior to the last roll so
certified.
(b) Any additional taxes resulting from corrections for years
prior to the current year shall be deemed assessed and imposed in
the particular year or years as to which the corrections apply.
Addition of tax to a prior year's tax roll, due to corrections
under this section, shall not be considered in calculating the
effect of the tax limitation under section 11b, Article XI of the
Oregon Constitution for the current year.
(3) A correction made pursuant to this section shall be made in
whatever manner necessary to make the assessment, tax or other
proceeding regular and valid. The correction shall be
distinguishable upon the roll, shall include the date of the
correction and shall identify the officer making the correction.
Whenever a correction is to be made after the assessor has
delivered the roll to the tax collector, the effect of which is
to increase the assessment to which it relates, except where made
by order of the department, the procedure prescribed in ORS
311.216 to 311.232 shall be followed; and the provisions therein
with respect to appeals shall likewise apply.
(4) Corrections which would result in less than a $1,000 change
in { - valuation - } { + assessed value or real market
value + } shall not change the value for purposes of computing
the taxes levied against the property, but shall be made only for
purposes of correcting the office records.
(5) The remedies under this section are in addition to other
remedies provided by law.
SECTION 3. { + The amendments to ORS 311.205 by section 2 of
this 2001 Act apply to corrections in the assessment and tax roll
that are made on or after the effective date of this 2001
Act. + }
SECTION 4. ORS 321.312 is amended to read:
321.312. Each year { + , + } when extending the operating
{ - levy - } { + taxes, as defined in ORS 310.055, + } of the
county upon the assessment roll { + , + } the county assessor
shall { - offset against the levy - } { + reduce the
operating tax rate + } submitted by the county { + so as to
offset + } the amount of revenue distributed to the county
pursuant to ORS 321.307 (3)(b) { + against the operating taxes
of the county + }
{ - and correspondingly reduce the amount of the levy to be
collected through extension on the tax roll - } for the current
fiscal year.
SECTION 5. ORS 321.487 is amended to read:
321.487. Each year { + , + } when extending the operating
{ - levies - } { + taxes, as defined in ORS 310.055, + } of
the county upon the assessment { - rolls - } { + roll + },
the county assessor shall { - offset against the levy - } { +
reduce the operating tax rate + } submitted by the county { + so
as to offset + }the amount of revenue distributed to the county
pursuant to ORS 321.485 (3)(b) { + against the operating taxes
of the county + } { - and correspondingly reduce the amount of
the levy to be collected through extension on the tax roll - }
for the current fiscal year.
SECTION 6. ORS 307.050 is amended to read:
307.050. Whenever real and personal property of the United
States or any department or agency { - thereof - } { + of the
United States + } is the subject of a contract of sale or other
agreement whereby on certain payments being made the legal title
is or may be acquired by any person and { - such - } { +
that + } person uses and possesses { - such - } { + the + }
property or has the right of present use and possession, then
{ - such - } { + a real market value for the + } property
shall { - be assessed and taxed as for the full true value
thereof - } { + be determined, as required under ORS
308.232, + } without deduction on account of any part of the
purchase price or other sum due on such property remaining
unpaid. { + The property shall have an assessed value determined
under ORS 308.146 and shall be subject to tax on the assessed
value so determined. + } The lien for { - such - } { +
the + } tax shall neither attach to, impair, nor be enforced
against any interest of the United States in { - such - } { +
the + } real or personal property. This section { - shall - }
{ + does + } not apply to real or personal property held and in
immediate use and occupation by this state or any county,
municipal corporation or political subdivision { - therein - }
{ + of this state, + } or to standing timber, prior to
severance { - thereof - } , of the United States or any
department or agency { - thereof which - } { + of the United
States that + } is the subject of a contract of sale or other
agreement.
SECTION 7. ORS 307.060 is amended to read:
307.060. Real and personal property of the United States or any
department or agency { - thereof - } { + of the United
States + } held by any person under a lease or other interest or
estate less than a fee simple, other than under a contract of
sale, shall { - be assessed and taxed as for the full assessed
value thereof - } { + have a real market value determined under
ORS 308.232, + } subject only to deduction for restricted use.
{ + The property shall have an assessed value determined under
ORS 308.146 and shall be subject to tax on the assessed value so
determined. + } The lien for the tax shall attach to and be
enforced against only the leasehold, interest or estate in
{ - such - } { + the + } real or personal property. This
section
{ - shall - } { + does + } not apply to real property held or
occupied primarily for agricultural purposes under the authority
of a federal wildlife conservation agency or held or occupied
primarily for purposes of grazing livestock. This section
{ - shall - } { + does + }not apply to real or personal
property held by this state or any county, municipal corporation
or political subdivision { - therein which - } { + of this
state that + } is:
(1) In immediate use and occupation by { - such - } { +
the + } political body; or
(2) Required, by the terms of the lease or agreement, to be
maintained and made available to the federal government as a
military installation and facility.
SECTION 8. Section 4, chapter 405, Oregon Laws 1981, as amended
by section 1, chapter 169, Oregon Laws 1985, and section 4,
chapter 748, Oregon Laws 1995, is amended to read:
{ + Sec. 4. + } ORS 307.182 { - , the amendments to ORS
307.060 by section 2, chapter 405, Oregon Laws 1981, and the
repeal of section 2, chapter 656, Oregon Laws 1975, by section 3,
chapter 405, Oregon Laws 1981, apply for - } { + applies to + }
tax years beginning on or after July 1, 1981, and prior to July
1, 2002.
SECTION 9. ORS 308.153 is amended to read:
308.153. (1) If new property is added to the assessment roll or
improvements are made to property as of January 1 of the
assessment year, the maximum assessed value of the property shall
be the sum of:
(a) The maximum assessed value determined under ORS 308.146;
and
(b) The product of the value of the new property or new
improvements determined under subsection (2)(a) of this section
multiplied by the ratio { + , not greater than 1.00, + } of the
average maximum assessed value over the average real market value
for the assessment year.
(2)(a) The value of new property or new improvements shall
equal the real market value of the new property or new
improvements reduced (but not below zero) by the real market
value of retirements from the property tax account.
(b) If the maximum assessed value of property is adjusted for
fire or act of God, the reduction in real market value due to
fire or act of God may not be considered to be a retirement under
this subsection.
(3) The property's assessed value for the year shall equal the
lesser of:
(a) The property's maximum assessed value; or
(b) The property's real market value.
SECTION 10. ORS 308.156 is amended to read:
308.156. (1) If property is subdivided or partitioned after
January 1 of the preceding assessment year and on or before
January 1 of the current assessment year, then the property's
maximum assessed value shall be established as provided under
this section.
(2) If property is rezoned and, after January 1 of the
preceding assessment year and on or before January 1 of the
current assessment year, the property is used consistently with
the rezoning, the property's maximum assessed value shall be
established under this section.
(3)(a) For the first tax year for which property is added to
the property tax account as omitted property, the property's
maximum assessed value shall be established under this section.
(b) For tax years subsequent to the first tax year for which
property is added to the property tax account as omitted
property, the property's maximum assessed value shall be
determined as otherwise provided by law, taking into account the
maximum assessed value of the property as determined under this
section.
(4)(a) If property was subject to exemption, partial exemption
or special assessment as of the January 1 assessment date of the
preceding assessment year and is disqualified from exemption,
partial exemption or special assessment as of the January 1 of
the current assessment year, the property's maximum assessed
value shall be established under this section.
(b) If property described in this subsection is eligible for a
different type of exemption, partial exemption or special
assessment as of January 1 of the current assessment year, the
property's maximum assessed value shall be established under the
provision granting the partial exemption or special assessment.
(5) The property's maximum assessed value shall be the sum of:
(a) The maximum assessed value determined under ORS 308.146
that is allocable to that portion of the property not affected by
an event described in subsections (1), (2), (3) or (4)(a) of this
section; and
(b) The product of the value of that portion of the property
that is affected by an event described in subsections (1), (2),
(3) or (4)(a) of this section multiplied by the ratio { + , not
greater than 1.00, + } of the average maximum assessed value over
the average real market value for the assessment year in the same
area and property class.
(6) The property's assessed value for the year shall equal the
lesser of:
(a) The property's maximum assessed value; or
(b) The property's real market value.
(7) The Department of Revenue shall provide by rule the method
by which the allocations described in subsection (5) of this
section are to be made.
SECTION 11. { + The amendments to ORS 308.153 and 308.156 by
sections 9 and 10 of this 2001 Act apply to property tax years
beginning on or after July 1, 2001. + }
SECTION 12. ORS 316.143 is amended to read:
316.143. (1) A resident or nonresident individual certified as
eligible under ORS 442.563, licensed under ORS chapter 677, who
is engaged in the practice of medicine, and who has a rural
practice that amounts to 60 percent of the individual's practice,
shall be allowed an annual credit against taxes otherwise due
under this chapter in the sum of $5,000 during the time in which
the individual retains such practice and membership if the
individual is actively practicing in and is a member of the
medical staff of one of the following hospitals:
(a) A type A hospital designated as such by the Office of Rural
Health;
{ - (b) A type B hospital designated as such by the Office of
Rural Health, so long as the type B hospital is not within the
boundaries of a metropolitan statistical area, or if the hospital
is located within the boundaries of a metropolitan statistical
area, is located 30 or more highway miles from the closest
hospital within the major population center in the metropolitan
statistical area; - }
{ + (b) A type B hospital designated as such by the Office of
Rural Health if the hospital is:
(A) Not within the boundaries of a metropolitan statistical
area;
(B) Located 30 or more highway miles from the closest hospital
within the major population center in a metropolitan statistical
area; or
(C) Located in a county with a population of less than
75,000; + }
(c) A type C rural hospital, if the Office of Rural Health
makes the findings required by ORS 316.146; or
(d) A rural critical access hospital.
(2) A nonresident shall be allowed the credit under this
section in the proportion provided in ORS 316.117. If a change in
the status of a taxpayer from resident to nonresident or from
nonresident to resident occurs, the credit allowed by this
section shall be determined in a manner consistent with ORS
316.117.
(3) For purposes of this section, an 'individual's practice'
shall be determined on the basis of actual time spent in practice
each week in hours or days, whichever is considered by the Office
of Rural Health to be more appropriate. In the case of a
shareholder of a corporation or a member of a partnership, only
the time of the individual shareholder or partner shall be
considered and the full amount of the credit shall be allowed to
each shareholder or partner who qualifies in an individual
capacity.
(4) As used in this section:
(a) 'Type A hospital,' 'type B hospital' and 'type C hospital'
have the meaning for those terms provided in ORS 442.470.
(b) 'Rural critical access hospital' means a facility that
meets the criteria set forth in 42 U.S.C. 1395i-4 (c)(2)(B) and
that has been designated a critical access hospital by the Office
of Rural Health and the Health Division.
SECTION 13. { + The amendments to ORS 316.143 by section 12 of
this 2001 Act apply to tax years beginning on or after January 1,
2002. + }
SECTION 14. { + Section 15 of this 2001 Act is added to and
made a part of ORS chapter 316. + }
SECTION 15. { + (1) If gain is deferred upon the voluntary or
involuntary disposition of property in an exchange that qualifies
for deferral under section 1031 or 1033 of the Internal Revenue
Code, and the property acquired in the exchange has a situs
outside of this state, upon the sale or other disposition of the
acquired property in a transaction in which gain or loss is
recognized for federal tax purposes but is not taken into account
in computing federal taxable income for Oregon tax purposes,
there shall be added to federal taxable income the difference
between:
(a) The adjusted basis of the acquired property on the date the
exchange under section 1031 or 1033 of the Internal Revenue Code
was completed; and
(b) The lesser of:
(A) The fair market value of the acquired property on the date
the exchange under section 1031 or 1033 of the Internal Revenue
Code was completed; or
(B) The fair market value of the acquired property on the date
gain or loss from the sale or other disposition of the acquired
property is recognized for federal tax purposes.
(2) If the adjusted basis described in subsection (1)(a) of
this section is larger than either value described in subsection
(1)(b) of this section, the difference computed under subsection
(1) of this section shall be subtracted from federal taxable
income instead of being added to federal taxable income.
(3) The Department of Revenue may require taxpayers owning
property acquired in an exchange under section 1031 or 1033 of
the Internal Revenue Code that has a situs outside of this state
to file an annual report on the acquired property, and may adopt
rules to implement reporting requirements under this section. + }
SECTION 16. { + Section 17 of this 2001 Act is added to and
made a part of ORS chapter 317. + }
SECTION 17. { + (1) If gain is deferred upon the voluntary or
involuntary disposition of property in an exchange that qualifies
for deferral under section 1031 or 1033 of the Internal Revenue
Code, and the property acquired in the exchange has a situs
outside of this state, upon the sale or other disposition of the
acquired property in a transaction in which gain or loss is
recognized for federal tax purposes but is not taken into account
in computing taxable income for Oregon tax purposes, there shall
be added to taxable income the difference between:
(a) The adjusted basis of the acquired property on the date the
exchange under section 1031 or 1033 of the Internal Revenue Code
was completed; and
(b) The lesser of:
(A) The fair market value of the acquired property on the date
the exchange under section 1031 or 1033 of the Internal Revenue
Code was completed; or
(B) The fair market value of the acquired property on the date
gain or loss from the sale or other disposition of the acquired
property is recognized for federal tax purposes.
(2) If the adjusted basis described in subsection (1)(a) of
this section is larger than either value described in subsection
(1)(b) of this section, the difference computed under subsection
(1) of this section shall be subtracted from taxable income
instead of being added to taxable income.
(3) The Department of Revenue may require taxpayers owning
property acquired in an exchange under section 1031 or 1033 of
the Internal Revenue Code that has a situs outside of this state
to file an annual report on the acquired property, and may adopt
rules to implement reporting requirements under this section. + }
SECTION 18. ORS 316.680, as amended by section 12, chapter 746,
Oregon Laws 1999, is amended to read:
316.680. (1) There shall be subtracted from federal taxable
income:
(a) The interest or dividends on obligations of the United
States and its territories and possessions or of any authority,
commission or instrumentality of the United States to the extent
includable in gross income for federal income tax purposes but
exempt from state income taxes under the laws of the United
States. However, the amount subtracted under this paragraph shall
be reduced by any interest on indebtedness incurred to carry the
obligations or securities described in this paragraph, and by any
expenses incurred in the production of interest or dividend
income described in this paragraph to the extent that such
expenses, including amortizable bond premiums, are deductible in
determining federal taxable income.
(b) The amount of any federal income taxes accrued by the
taxpayer during the taxable year as described in ORS 316.685,
less the amount of any refunds of federal taxes previously
accrued for which a tax benefit was received.
(c)(A) If the taxpayer does not qualify for the subtraction
under subparagraph (B) of this paragraph, compensation (other
than pension or retirement pay) received for active service
performed by a member of the Armed Forces of the United States in
an amount not to exceed $3,000 per annum.
(B) For the tax year of initial draft or enlistment into the
Armed Forces of the United States or for the tax year of
discharge from or termination of full-time active duty for the
Armed Forces of the United States, compensation (other than
pension or retirement pay or pay for service when on military
reserve duty) paid by the Armed Forces of the United States for
services performed outside this state, if the taxpayer is on
active duty as a full-time officer, enlistee or draftee, with the
Armed Forces of the United States.
{ - (d) For taxable years open to audit on October 5, 1973,
the amount of any deferred income which was added to federal
taxable income for state tax purposes under subsection (2)(e) of
this section in a prior taxable year and which is now added to
federal taxable income. For purposes of this paragraph, the
amount subtracted shall not exceed the amount of gain now
reported on the federal return. If the gain is a capital gain or
subject to capital gain treatment, the adjustments under this
paragraph shall be similar to the adjustments made under
subsection (2)(e) of this section in the prior year. - }
{ - (e) - } { + (d) + } Amounts allowable under sections
2621(a)(2) and 2622(b) of the Internal Revenue Code to the extent
that the taxpayer does not elect under section 642(g) of the
Internal Revenue Code to reduce federal taxable income by those
amounts.
{ - (f) - } { + (e) + } Any supplemental payments made to
JOBS Plus Program participants under ORS 411.892.
{ - (g)(A) - } { + (f)(A) + } Federal pension income that
is attributable to federal employment occurring before October 1,
1991. Federal pension income that is attributable to federal
employment occurring before October 1, 1991, shall be determined
by multiplying the total amount of federal pension income for the
tax year by the ratio of the number of months of federal
creditable service occurring before October 1, 1991, over the
total number of months of federal creditable service.
(B) The subtraction allowed under this paragraph applies only
to federal pension income received at a time when:
(i) Benefit increases provided under chapter 569, Oregon Laws
1995, are in effect; or
(ii) Public Employees Retirement System benefits received for
service prior to October 1, 1991, are exempt from state income
tax.
(C) As used in this paragraph:
(i) 'Federal creditable service' means those periods of time
for which a federal employee earned a federal pension.
(ii) 'Federal pension' means any form of retirement allowance
provided by the federal government, its agencies or its
instrumentalities to retirees of the federal government or their
beneficiaries.
{ - (h) - } { + (g) + } Any amount included in federal
taxable income for the tax year that is attributable to the
conversion of a regular individual retirement account into a Roth
individual retirement account described in section 408A of the
Internal Revenue Code, to the extent that:
(A) The amount was subject to the income tax of another state
or the District of Columbia in a prior tax year; and
(B) The taxpayer was a resident of the other state or the
District of Columbia for that prior tax year.
{ - (i) - } { + (h) + } Any amounts awarded to the taxpayer
by the Public Safety Memorial Fund Board under ORS 243.954 to
243.970 to the extent that the taxpayer has not taken the amount
as a deduction in determining the taxpayer's federal taxable
income for the tax year.
{ - (j) - } { + (i) + } The amount contributed to a
qualified tuition savings program account established under ORS
348.841 to 348.873, except that a subtraction under this
paragraph may not exceed:
(A) $2,000 for the tax year; or
(B) In the case of a married individual filing separately,
$1,000 for the tax year.
(2) There shall be added to federal taxable income:
(a) Interest or dividends, exempt from federal income tax, on
obligations or securities of any foreign state or of a political
subdivision or authority of any foreign state. However, the
amount added under this paragraph shall be reduced by any
interest on indebtedness incurred to carry the obligations or
securities described in this paragraph and by any expenses
incurred in the production of interest or dividend income
described in this paragraph.
(b) Interest or dividends on obligations of any authority,
commission, instrumentality and territorial possession of the
United States which by the laws of the United States are exempt
from federal income tax but not from state income taxes. However,
the amount added under this paragraph shall be reduced by any
interest on indebtedness incurred to carry the obligations or
securities described in this paragraph and by any expenses
incurred in the production of interest or dividend income
described in this paragraph.
(c) The amount of any federal estate taxes allocable to income
in respect of a decedent not taxable by Oregon.
(d) The amount of any allowance for depletion in excess of the
taxpayer's adjusted basis in the property depleted, deducted on
the taxpayer's federal income tax return for the taxable year,
pursuant to sections 613, 613A, 614, 616 and 617 of the Internal
Revenue Code.
{ - (e) The amount of any gain which is deferred for tax
recognition purposes upon the voluntary or involuntary conversion
or exchange of tangible real or personal property as provided
under ORS 314.290. - }
{ - (f) - } { + (e) + } For taxable years beginning on or
after January 1, 1985, the dollar amount deducted under section
151 of the Internal Revenue Code for personal exemptions for the
taxable year.
{ - (g) - } { + (f) + } The amount taken as a deduction on
the taxpayer's federal return for unused qualified business
credits under section 196 of the Internal Revenue Code.
{ - (h) - } { + (g) + } The amount of any increased
benefits paid to a taxpayer under chapter 569, Oregon Laws 1995,
under the provisions of chapter 796, Oregon Laws 1991, and under
section 26, chapter 815, Oregon Laws 1991, that is not includable
in the taxpayer's federal taxable income under the Internal
Revenue Code.
{ - (i) - } { + (h) + } The amount of any long term care
insurance premiums paid or incurred by the taxpayer during the
tax year if:
(A) The amount is taken into account as a deduction on the
taxpayer's federal return for the tax year; and
(B) The taxpayer claims the credit allowed under ORS 315.610
for the tax year.
{ - (j) - } { + (i) + } Any amount taken as a deduction
under section 1341 of the Internal Revenue Code in computing
federal taxable income for the tax year, if the taxpayer has
claimed a credit for claim of right income repayment adjustment
under ORS 315.068.
(3) Discount and gain or loss on retirement or disposition of
obligations described under subsection (2)(a) of this section
issued on or after January 1, 1985, shall be treated for purposes
of this chapter in the same manner as under sections 1271 to 1283
and other pertinent sections of the Internal Revenue Code as if
the obligations, although issued by a foreign state or a
political subdivision of a foreign state, were not tax exempt
under the Internal Revenue Code.
SECTION 19. { + ORS 314.290 and 317.326 are repealed. + }
SECTION 20. { + Sections 15 and 17 of this 2001 Act, the
amendments to ORS 316.680 by section 18 of this 2001 Act and the
repeal of ORS 314.290 and 317.326 by section 19 of this 2001 Act
apply to:
(1) Tax years beginning on or after January 1, 1998; and
(2) Any tax year for which an amended return may be filed or a
notice of deficiency issued on or after the effective date of
this 2001 Act. + }
SECTION 21. { + This 2001 Act takes effect on the 91st day
after the date on which the regular session of the Seventy-first
Legislative Assembly adjourns sine die. + }
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