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 2045
A-Engrossed
House Bill 2863
Ordered by the House May 9
Including House Amendments dated May 9
Sponsored by Representative CARLSON; Representatives MERKLEY,
RINGO, TOMEI, WILLIAMS, WILSON
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.
Creates tax credit allowable { + , to extent sale has been
certified by Manufactured Dwelling Park Ombudsman, + } for owner
of manufactured dwelling facility if owner sells facility to
facility purchase association, tenants' association or tenants'
association supported nonprofit organization. { + Limits total
amount of sales that may be certified for credit to $11.1
million. Limits maximum amount that may be certified for each
sale to $1 million. + }
Applies to tax years beginning on or after January 1,
2002 { + , and before January 1, 2006 + }.
{ + Sunsets December 31, 2006. + }
A BILL FOR AN ACT
Relating to taxation; creating new provisions; and amending ORS
314.752 and 318.031.
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 and section 4 of
this 2001 Act:
(a) 'Facility' means a piece of land under one ownership where
four or more manufactured dwellings are located on separate lots,
tracts or parcels of land that are individually rented or leased
and are within 500 feet of one another.
(b) 'Manufactured dwelling' means any structure that was
constructed for movement on public highways, that has sleeping,
cooking and plumbing facilities, that is intended for human
occupancy and that is being used for residential purposes. '
Manufactured dwelling' does not include a recreational vehicle,
as that term is defined in ORS 446.003.
(c) 'Owner' has the meaning given that term in ORS 90.100.
(2) A credit against taxes otherwise due under ORS chapter 316
or, if the taxpayer is a corporation, ORS chapter 317 or 318 is
allowed to a facility owner that sells a facility to a facility
purchase association, tenants' association or tenants'
association supported nonprofit organization under ORS 90.800 to
90.840, to the extent the sale has been certified under section 4
of this 2001 Act.
(3) The amount of the credit allowed under this section equals
nine percent of the consideration given for the sale of the
facility. The credit determined under this subsection shall be
allocated among all persons that have an ownership interest in
the facility:
(a) In proportion to each person's interest in the facility; or
(b) In the manner the persons have agreed to allocate the
credit.
(4) Within 30 days of completing a sale to a facility purchase
association, tenants' association or tenants' association
supported nonprofit organization, the facility owner shall file
with the Department of Revenue an affidavit in which the facility
owner certifies that a sale was made to the association or
organization. The facility owner shall include with the affidavit
a statement indicating each person who has an ownership interest
in the facility and the proportion of each person's interest in
the facility. If the persons who have an ownership interest in
the facility reach an agreement to divide the credit in some
other manner, the facility owner also shall include a statement
summarizing the agreement.
(5) The amount of credit allowed to a taxpayer under this
section in any tax year may not exceed the tax liability of the
taxpayer for that tax year.
(6) Any tax credit otherwise allowable under this section 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
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, and any credit not used in
that third succeeding tax year may be carried forward and used in
the fourth succeeding tax year, and any credit not used in that
fourth succeeding tax year may be carried forward and used in the
fifth succeeding tax year, but may not be carried forward for any
tax year thereafter. + }
SECTION 3. { + Section 2 of this 2001 Act applies to certified
sales of manufactured dwelling facilities occurring in tax years
beginning on or after January 1, 2002, and before January 1,
2006. + }
SECTION 4. { + (1) An owner of a manufactured dwelling
facility seeking a tax credit under section 2 of this 2001 Act
shall first obtain tax credit certification under this section
from the Manufactured Dwelling Park Ombudsman.
(2) The owner shall apply for tax credit certification on a
form prescribed by the ombudsman containing:
(a) The location of the facility;
(b) The date and amount of the sale;
(c) The name and address of the purchaser and a description of
the purchaser sufficient for the ombudsman to determine if the
purchaser is a person described in section 2 (2) of this 2001
Act; and
(d) Any other information required by the ombudsman.
(3) The ombudsman shall review applications in chronological
order, based on the date the application is filed or the date of
the sale of the facility, whichever is later.
(4) The ombudsman shall approve an application filed with the
ombudsman if:
(a) The sale reported on the application qualifies for the tax
credit allowed under section 2 of this 2001 Act; and
(b) The total amount of sales certified under this section for
all applications filed under this section for all tax years does
not exceed $11.1 million.
(5) Upon approval of an application, the ombudsman shall
prepare and send to the owner a written certification that sets
forth the amount of the sale being certified. Notwithstanding the
actual amount of the sale, the amount of the sale that may be
certified under this section may not exceed $1 million.
(6) The owner shall maintain the certification in the owner's
records and shall furnish the certification to the Department of
Revenue upon request by the department.
(7) A denial of an application for certification may be
appealed in the manner of a contested case under ORS 183.310 to
183.550. + }
SECTION 5. { + Section 4 of this 2001 Act is repealed on
December 31, 2006. + }
SECTION 6. ORS 314.752 is amended to read:
314.752. (1) Except as provided in ORS 314.740 (5)(b), the tax
credits allowed or allowable to a C corporation for purposes of
ORS chapter 317 or 318 shall not be allowed to an S corporation.
The business tax credits allowed or allowable for purposes of ORS
chapter 316 shall be allowed or are allowable to the shareholders
of the S corporation.
(2) In determining the tax imposed under ORS chapter 316, as
provided under ORS 314.734, on income of the shareholder of an S
corporation, there shall be taken into account the shareholder's
pro rata share of business tax credit (or item thereof) that
would be allowed to the corporation (but for subsection (1) of
this section) or recapture or recovery thereof. The credit (or
item thereof), recapture or recovery shall be passed through to
shareholders in pro rata shares as determined in the manner
prescribed under section 1377(a) of the Internal Revenue Code.
(3) The character of any item included in a shareholder's pro
rata share under subsection (2) of this section shall be
determined as if such item were realized directly from the source
from which realized by the corporation, or incurred in the same
manner as incurred by the corporation.
(4) If the shareholder is a nonresident and there is a
requirement applicable for the business tax credit that in the
case of a nonresident that the credit be allowed in the
proportion provided in ORS 316.117, then that provision shall
apply to the nonresident shareholder.
(5) As used in this section, 'business tax credit' means a tax
credit granted to personal income taxpayers to encourage certain
investment, to create employment, economic opportunity or
incentive or for charitable, educational, scientific, literary or
public purposes that is listed under this subsection as a
business tax credit or is designated as a business tax credit by
law or by the Department of Revenue by rule and includes but is
not limited to the following credits: ORS 315.104 (forestation
and reforestation), ORS 315.134 (fish habitat improvement), ORS
315.138 (fish screening, by-pass devices, fishways), ORS 315.156
(crop gleaning), ORS 315.164 (farmworker housing), ORS 315.204
(dependent care assistance), ORS 315.208 (dependent care
facilities), ORS 315.234 (child development program
contributions), ORS 315.254 (youth apprenticeship sponsorship),
ORS 315.304 (pollution control facility), ORS 315.324 (plastics
recycling), ORS 315.354 and ORS 469.207 (energy conservation
facilities), ORS 315.504 (Oregon Capital Corporation), ORS
315.604 (bone marrow transplant expenses) and ORS 317.115
(fueling stations necessary to operate an alternative fuel
vehicle) { + and section 2 of this 2001 Act (sale of
manufactured dwelling facility) + }.
SECTION 7. ORS 318.031 is amended to read:
318.031. It being the intention of the Legislative Assembly
that this chapter and the Corporation Excise Tax Law of 1929
shall be administered as uniformly as possible (allowance being
made for the difference in imposition of the taxes and the
operative date of this chapter), the provisions of ORS 305.140
and 305.150 and ORS chapter 314 and of the following sections of
ORS chapter 315 or 317, as amended on or before August 3, 1955,
and as they may thereafter be amended, are incorporated into this
chapter by this reference and made a part hereof: ORS 315.104,
315.134, 315.156, 315.204, 315.208, 315.234, 315.254, 315.304,
315.504 and 315.604 { + and section 2 of this 2001 Act + } (all
only to the extent applicable for a corporation) and ORS 317.010,
317.013, 317.018 to 317.022, 317.030, 317.035, 317.038, 317.080,
317.152 to 317.154, 317.259 to 317.303, 317.310 to 317.386,
317.476 to 317.485, 317.510 to 317.635 and 317.705 to 317.725 and
section 40, chapter 835, Oregon Laws 1997, and section 4, chapter
358, Oregon Laws 1999.
----------