71st OREGON LEGISLATIVE ASSEMBLY--2001 Regular Session
Enrolled
House Bill 2718
Sponsored by Representative SHETTERLY; Representatives KING,
KROPF, KRUSE, LEE, NELSON, ROSENBAUM, C WALKER, V WALKER,
WINTERS, Senators CASTILLO, FERRIOLI, MESSERLE, SHIELDS, TROW
(at the request of Oregon Hunger Relief Task Force and Oregon
Food Bank)
CHAPTER ................
AN ACT
Relating to taxation; creating new provisions; and amending ORS
315.154 and 315.156.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 315.154 is amended to read:
315.154. As used in { + this section and + } ORS 315.156:
{ + (1) 'Apparently wholesome food' means:
(a) Food fit for human consumption; and
(b) Food that meets all quality and labeling standards imposed
by federal, state or local laws, even though the food may not be
readily marketable due to appearance, age, freshness, grade,
size, surplus or other condition.
(2) 'Crop' means an agricultural crop producing food for human
consumption and includes, but is not limited to, bedding plants
that produce food, orchard stock intended for the production of
food and livestock that may be processed into food for human
consumption.
(3) 'Food bank or other charitable organization' means any
organization located in this state, including but not limited to
a gleaning cooperative, that is exempt from federal income taxes
under section 501(c)(3) of the Internal Revenue Code and that has
as a principal or ongoing purpose the distribution of food to
children or homeless, unemployed, elderly or low-income
individuals. + }
{ - (1) 'Gleaning' means the harvesting in Oregon of an
agricultural crop or a portion of a crop grown primarily to be
sold for cash that is donated by the grower of the crop to a
gleaning cooperative at such a time that the crop is still usable
as food for human beings and would otherwise go to waste
because: - }
{ - (a) The grower of the crop has supplied any crop contract
quota with the wholesale or retail buyer; - }
{ - (b) If the grower of the crop is a party to a contingent
supply contract, the wholesale or retail buyer reduces the crop
quota that was reasonably anticipated to be supplied by the
grower; or - }
{ - (c) Harvesting the crop for sale in the normal course of
business is no longer economically feasible. - }
Enrolled House Bill 2718 (HB 2718-INTRO) Page 1
{ - (2) 'Gleaning cooperative' means a nonprofit federally
tax exempt organization that is organized to provide and
distribute produce to individuals who meet the low-income
eligibility guidelines of the federal State Community Services
Program established pursuant to the federal Community Services
Act of 1974 (Public Law 93-744). - }
{ + (4) 'Grower' includes a person who raises livestock.
(5) 'Qualified donation' means the harvest or post-harvest
contribution in Oregon of a crop or a portion of a crop grown
primarily to be sold for cash that is donated by the grower of
the crop to a gleaning cooperative, food bank or other charitable
organization engaged in the distribution of food without charge,
at such a time that the crop is still usable as food for human
consumption and:
(a) The grower of the crop has supplied any crop contract quota
with the wholesale or retail buyer;
(b) If the grower of the crop is a party to a contingent supply
contract, the wholesale or retail buyer reduces the crop quota
that was reasonably anticipated to be supplied by the grower; or
(c) The grower of the crop otherwise determines to make a
donation of apparently wholesome food. + }
{ - (3) - } { + (6) + } ' Wholesale market price' means
the market price for the produce determined either by:
(a) The amount paid to the grower by the last previous cash
buyer of the particular crop; or
(b) In the event there is no previous cash buyer, a market
price { - determined by the gleaning cooperative - } based
upon the market price of the nearest regional wholesale buyer or
the regional u-pick market price.
SECTION 2. ORS 315.156 is amended to read:
315.156. (1) A taxpaying individual or corporation
{ - who - } { + that + } is a grower of a crop and { - who
permits the gleaning - } { + that makes a qualified
donation + } of the crop shall be allowed a credit against the
taxes otherwise due under ORS chapter 316 or, if the taxpayer is
a corporation, under ORS chapter 317 or 318, as follows:
(a) In the case of a { + qualified + } donation made under
circumstances described in ORS 315.154 { - (1)(a) and - }
{ + (5)(a) or + } (b), the amount of the credit shall be 10
percent of the value of the quantity of the crop donated computed
at the wholesale market price.
(b) In the case of a { + qualified + } donation made under
circumstances described in ORS 315.154 { - (1)(c) - }
{ + (5)(c) + }, the amount of the credit shall be 10 percent of
the value of the quantity of the crop donated computed at the
wholesale market price that the grower would have received had
the quantity of the crop donated been { + sold or + } salable.
(2) At the time of donation, the director, supervisor or other
appropriate official of the { - gleaning cooperative - } { +
entity + } to which a { + qualified + } donation is made shall
supply to the grower of the crop donated two copies of a form
prescribed by the Department of Revenue. The forms shall contain:
(a) The name and address of the grower;
(b) The description and quantity of the donated crop;
(c) The signature of the director, supervisor or other
appropriate official of the { - gleaning cooperative - } { +
entity receiving the donated crop + } verifying that the produce
was or will be distributed to { + children or homeless,
unemployed, elderly or + } low-income individuals { - meeting
the guidelines described in ORS 315.154 (2) - } ;
Enrolled House Bill 2718 (HB 2718-INTRO) Page 2
(d) The wholesale market price { - determined by the gleaning
cooperative, in the event there is no previous cash buyer of the
crop - } ; and
(e) Other information required by the Department of Revenue by
rule.
(3) Tax claim for tax credit shall be substantiated by
submission with the tax return, of the form described in
subsection (2) of this section, a statement verified by the
taxpayer that the { + qualified + } donation was made under
circumstances described in ORS 315.154 { - (1) - }
{ + (5) + } and a copy of an invoice or other statement
identifying the price received by the grower for the crops of
comparable grade or quality if there is a previous cash buyer.
The requirement for substantiation may be waived partially,
conditionally or absolutely, as provided under ORS 315.063.
(4) Any tax credit otherwise allowable under this section
{ - which - } { + that + } is not used by the taxpayer in a
particular tax year may be carried forward and offset against the
taxpayer's tax liability for the next succeeding tax year. Any
credit remaining unused in { - such - } { + the + } next
succeeding tax year may be carried forward and used in the second
succeeding tax year, and likewise, any credit not used in that
second succeeding tax year may be carried forward and used in the
third succeeding tax year, but may not be carried forward for any
tax year thereafter.
{ + (5)(a) A nonresident individual shall be allowed the
credit computed under this section in the same manner and subject
to the same limitations as the credit allowed a resident by this
section. However, the credit shall be prorated using the
proportion provided in ORS 316.117.
(b) If a change in the taxable year of a taxpayer occurs as
described in ORS 314.085, or if the department terminates the
taxpayer's taxable year under ORS 314.440, the credit allowed by
this section shall be prorated or computed in a manner consistent
with ORS 314.085.
(c) 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. + }
SECTION 3. { + The amendments to ORS 315.154 and 315.156 by
sections 1 and 2 of this 2001 Act apply to tax years beginning on
or after January 1, 2002. + }
----------
Enrolled House Bill 2718 (HB 2718-INTRO) Page 3
Passed by House March 12, 2001
...........................................................
Chief Clerk of House
...........................................................
Speaker of House
Passed by Senate May 4, 2001
...........................................................
President of Senate
Enrolled House Bill 2718 (HB 2718-INTRO) Page 4
Received by Governor:
......M.,............., 2001
Approved:
......M.,............., 2001
...........................................................
Governor
Filed in Office of Secretary of State:
......M.,............., 2001
...........................................................
Secretary of State
Enrolled House Bill 2718 (HB 2718-INTRO) Page 5