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 1575
House Bill 3105
Sponsored by Representative KROPF
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.
Establishes income or corporate excise tax credit for 75
percent of market value of forgone crops when riparian land is
voluntarily taken out of farm production.
Applies to tax years beginning on or after January 1, 2002.
A BILL FOR AN ACT
Relating to taxation.
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, 'riparian land '
means land in this state that:
(a) Borders both a river, stream or other natural watercourse
and land that is in farm production; and
(b) Does not exceed a width of 25 feet between the land that is
in farm production and the bank of the river, stream or other
natural watercourse.
(2) A taxpayer may claim a credit against the taxes otherwise
due under ORS chapter 316, 317 or 318 for 75 percent of the
market value of crops forgone when riparian land is voluntarily
taken out of farm production.
(3) A credit under this section may be claimed only if:
(a) The taxpayer owns the riparian land that is the basis of
the credit;
(b) The taxpayer is actively engaged in farming operations on
land adjacent to the riparian land;
(c) The riparian land was in farm production for the previous
tax year or a credit under this section was claimed during the
previous tax year; and
(d) The decision to remove the riparian land from farm
production was a voluntary decision and not the result of a
federal, state or local law or government decision requiring the
riparian land to be taken out of farm production.
(4)(a) The amount of the credit shall be calculated by
multiplying the market value per acre of the forgone crop by the
acreage of the riparian land that is not in farm production and
multiplying that product by 75 percent.
(b) For purposes of this subsection, the foregone crop for
which a value is determined shall be the crops grown on the
riparian land during the tax year in which the riparian land was
last in farm production. If no records are available that
establish the crops grown on the riparian land during the tax
year in which the riparian land was last in farm production, the
forgone crop shall be the crops grown on the land adjacent to the
riparian land during the tax year for which the credit is
claimed.
(5) Notwithstanding subsection (3)(a) and (b) of this section,
if the riparian land that is the basis of a credit under this
section is adjacent to land that is in farm production under a
share-rent agreement, the taxpayer that is engaged in farming
operations and the taxpayer that is the landowner may each claim
a credit under this section. The amount of the credit shall be
allocated to each taxpayer in the proportion that the share-rent
agreement allocates crop proceeds to each of those taxpayers. The
total amount of credit allowed to both taxpayers under this
subsection may not exceed the amount of the credit otherwise
allowable under this section if the farming operations were not
subject to a share-rent agreement.
(6) The credit allowed in any one tax year may not exceed the
tax liability of the taxpayer.
(7) 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. Any credit remaining unused in
the second succeeding tax year may be carried forward and used in
the third succeeding tax year. Any credit remaining unused in the
third succeeding tax year may be carried forward and used in the
fourth succeeding tax year. Any credit remaining unused in the
fourth succeeding tax year may be carried forward and used in the
fifth succeeding tax year, but may not be used in any tax year
thereafter.
(8) In the case of a credit allowed under this section for
purposes of ORS chapter 316:
(a) A nonresident shall be allowed the credit in the same
manner and subject to the same limitations as a resident.
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 of Revenue
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.
(9) The Department of Revenue may adopt rules prescribing
procedures for identifying forgone crops and for establishing the
market value of forgone crops. + }
SECTION 3. { + Section 2 of this 2001 Act applies to tax years
beginning on or after January 1, 2002. + }
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