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 1912
A-Engrossed
House Bill 2332
Ordered by the House May 21
Including House Amendments dated May 21
Ordered printed by the Speaker pursuant to House Rule 12.00A (5).
Presession filed (at the request of Representative Bill Witt
and Representative-elect Steve March)
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.
Provides { - $1,500 - } { + $1,000 + } credit against
personal income taxes for taxpayer providing certain unreimbursed
assistance to relative { + for tax years beginning on or after
January 1, 2003, and before January 1, 2005. Increases credit to
$1,500 for tax years beginning on or after January 1, 2005 + }.
Defines types of assistance eligible for credit. Limits credit to
taxpayers with taxable incomes that do not exceed
{ - $65,000 - } { + $40,000. Phases out credit for taxpayers
with income above $40,000. Adjusts qualifying income for
inflation + }.
{ - Applies to tax years beginning on or after January 1,
2001. - }
Takes effect on 91st day following adjournment sine die.
A BILL FOR AN ACT
Relating to taxation; and prescribing an effective date.
Be It Enacted by the People of the State of Oregon:
SECTION 1. { + Section 2 of this 2001 Act is added to and made
a part of ORS chapter 315. + }
SECTION 2. { + (1) As used in this section:
(a) 'Activities of daily living' means dressing, grooming,
bathing, feeding, toileting or walking.
(b) 'Physical, mental or developmental disability' means a
condition that:
(A) Causes the person with the condition to be considered a
disabled person under ORS 174.107;
(B) Significantly interferes with the person's ability to
engage in one or more activities of daily living without
assistance; and
(C) Consists of a long-term or chronic condition from which the
person's recovery is not expected.
(c) 'Relative' means a spouse, child, father, mother, sibling
or other ancestor or descendant who is related by blood, marriage
or adoption.
(2) An individual taxpayer shall be allowed a credit against
the tax due under ORS chapter 316 if:
(a) The taxpayer provides unreimbursed daily care to a relative
that consists of providing assistance to the relative with two or
more activities of daily living for more than six months of the
tax year;
(b) The relative receiving the assistance does not reside in a
nursing home, assisted living facility or other residence where
assistance with activities of daily living is provided by the
facility staff;
(c) The reason the taxpayer is providing care is due to the
physical, mental or developmental disability of the recipient of
the care; and
(d) The taxpayer has federal adjusted gross income that does
not exceed $40,000 for the tax year for which the credit is
claimed.
(3)(a) For tax years beginning on or after January 1, 2004, the
maximum amount of federal adjusted gross income a taxpayer may
earn in order to qualify for a credit under this section shall be
adjusted by multiplying $40,000 by the ratio of the U.S. City
Average Consumer Price Index for the average of the monthly
indexes for the second quarter of the calendar year over the
average of the monthly indexes for the second quarter of the
calendar year 2003.
(b) 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.
(c) If any adjustment determined under paragraph (a) of this
subsection is not a multiple of $50, the adjustment shall be
rounded to the nearest multiple of $50.
(4) The amount of the credit provided under this section shall
equal:
(a) $1,000 for tax years beginning on or after January 1, 2003,
and before January 1, 2005.
(b) $1,500 for tax years beginning on or after January 1, 2005.
(5) Notwithstanding subsections (2)(d) and (4) of this section,
a taxpayer shall be allowed a credit under this section that
equals the amount provided in subsection (4) of this section
reduced by $0.50 for every $1 that the taxpayer's federal
adjusted gross income exceeds the greater of $40,000 or the
amount determined under subsection (3) of this section.
(6) The credit allowed in a tax year may not exceed the tax
liability of the taxpayer and may not be carried forward to a
succeeding tax year.
(7) A nonresident shall be allowed the credit under this
section in the proportion provided in ORS 316.117.
(8) 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.
(9) Only one taxpayer shall be eligible for the credit provided
under this section for the assistance provided to a relative
during a tax year.
(10) If a change in the taxable year of a taxpayer occurs as
described in ORS 314.085, or if the Department of Revenue
terminates the taxpayer's taxable year under ORS 314.440, the
credit allowed under this section shall be prorated or computed
in a manner consistent with ORS 314.085.
(11) The Department of Revenue may prescribe form and
substantiation requirements to be met in order to claim the
credit provided under this section. + }
SECTION 3. { + Section 2 of this 2001 Act applies to tax years
beginning on or after January 1, 2003. + }
SECTION 4. { + 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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