71st OREGON LEGISLATIVE ASSEMBLY--2001 Regular Session
Enrolled
Senate Bill 67
Printed pursuant to Senate Interim Rule 213.28 by order of the
President of the Senate in conformance with presession filing
rules, indicating neither advocacy nor opposition on the part
of the President (at the request of Senator Ted Ferrioli for
Associated Oregon Industries)
CHAPTER ................
AN ACT
Relating to taxation; creating new provisions; and amending ORS
316.037, 316.122 and 317.061.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 316.037 is amended to read:
316.037. (1)(a) A tax is imposed for each taxable year on the
entire taxable income of every resident of this state. The amount
of the tax shall be determined in accordance with the following
table:
_________________________________________________________________
____NOTE_TO_GOPHER_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
If taxable income The tax is:
____NOTE_TO_GOPHER_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
Not over $2,000.. 5% of
____NOTE_TO_GOPHER_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
taxable
income
Over $2,000 but not
____NOTE_TO_GOPHER_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
Enrolled Senate Bill 67 (SB 67-A) Page 1
over $5,000.... $100 plus 7%
____NOTE_TO_GOPHER_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
of the excess
over $2,000
____NOTE_TO_GOPHER_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
Over $5,000...... $310 plus 9%
____NOTE_TO_GOPHER_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
of the excess
over $5,000
_________________________________________________________________
____________________________________________________________
END OF POSSIBLE IRREGULAR TABULAR TEXT
____________________________________________________________
(b) For tax years beginning in each calendar year, the
Department of Revenue shall adopt a table which shall apply in
lieu of the table contained in paragraph (a) of this subsection,
as follows:
(A) The minimum and maximum dollar amounts for each rate
bracket for which a tax is imposed shall be increased by the
cost-of-living adjustment for the calendar year.
(B) The rate applicable to any rate bracket as adjusted under
subparagraph (A) of this paragraph shall not be changed.
(C) The amounts setting forth the tax, to the extent necessary
to reflect the adjustments in the rate brackets, shall be
adjusted.
(c) For purposes of paragraph (b) of this subsection, the
cost-of-living adjustment for any calendar year is the percentage
(if any) by which the { + average + } U.S. City Average Consumer
Price Index for the { - average of the monthly indexes for
the - } second quarter of the calendar year exceeds the average
{ - of the monthly indexes of - } { + for + } the second
quarter of the calendar year 1992.
(d) 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.
(e) If any increase determined under paragraph (b) of this
subsection is not a multiple of $50, the increase shall be
rounded to the next lowest multiple of $50.
{ + (2) Notwithstanding subsection (1) of this section, any
gain that is treated as net capital gain for federal tax purposes
and that is included in taxable income in this state shall be
Enrolled Senate Bill 67 (SB 67-A) Page 2
taxed at the lesser of the rate applicable under subsection (1)
of this section or six percent. + }
{ - (2) - } { + (3) + } A tax is imposed for each taxable
year upon the entire taxable income of every part-year resident
of this state. The amount of the tax shall be computed under
{ - subsection (1) - } { + subsections (1) and (2) + } of this
section as if the part-year resident were a full-year resident
and shall be multiplied by the ratio provided under ORS 316.117
to determine the tax on income derived from sources within this
state.
{ - (3) - } { + (4) + } A tax is imposed for each taxable
year on the taxable income of every full-year nonresident that is
derived from sources within this state. The amount of the tax
shall be determined in accordance with { - the table set forth
in subsection (1) - } { + subsections (1) and (2) + } of this
section.
SECTION 1a. { + For the tax year of the taxpayer beginning on
or after January 1, 2003, and before January 1, 2004,
notwithstanding ORS 316.037, the net capital gain subject to tax
under ORS 316.037 (2) may not exceed the amount of capital gain
realized on or after July 1, 2003, offset by the amount of
capital losses realized on or after July 1, 2003. Net capital
gain not subject to tax under ORS 316.037 (2) shall be subject to
tax under ORS 316.037 (1). + }
SECTION 2. ORS 316.122 is amended to read:
316.122. (1) If the federal taxable income of husband and wife
(one being a part-year resident and the other a nonresident) is
determined on a joint federal return, their taxable income in
this state shall be separately determined, unless they elect to
file a joint return, in which case their tax on their joint
income shall be determined in this state pursuant to ORS 316.037
{ - (3) - } { + (4) + }.
(2) If the federal taxable income of husband and wife (one
being a full-year resident and the other a part-year resident) is
determined on a joint federal return, their taxable income in
this state shall be separately determined, unless they elect to
file a joint return, in which case their tax on their joint
income shall be determined in this state pursuant to ORS 316.037
{ - (2) - } { + (3) + }.
(3) If the federal taxable income of husband and wife (one
being a full-year resident and the other a nonresident) is
determined on a joint federal return, their taxable income in the
state shall be separately determined, unless they elect to file a
joint return, in which case their tax on their joint income shall
be determined in this state pursuant to ORS 316.037 { - (3) - }
{ + (4) + }.
(4) For purposes of computing the tax of a husband and wife
under this section, if one of the spouses is a full-year resident
individual, then as used in ORS 316.037 { - (2) or - }
(3) { + or (4) + }, that spouse's taxable income derived from
Oregon sources is that spouse's entire federal taxable income,
defined in the laws of the United States, with the modifications,
additions and subtractions provided in this chapter and other
laws of this state applicable to personal income taxation.
(5) The provisions of ORS 316.367 with respect to joint returns
apply if both husband and wife are part-year residents or
full-year nonresidents.
SECTION 3. ORS 317.061 is amended to read:
317.061. { + (1) + } The rate of the tax imposed by and
computed under this chapter is six and six-tenths percent.
Enrolled Senate Bill 67 (SB 67-A) Page 3
{ + (2) Notwithstanding subsection (1) of this section, any
gain that is treated as net capital gain for federal tax purposes
and that is included in taxable income in this state shall be
taxed at a rate of six percent. + }
SECTION 3a. { + For the tax year of the taxpayer beginning on
or after January 1, 2003, and before January 1, 2004,
notwithstanding ORS 317.061, the net capital gain subject to tax
under ORS 317.061 (2) may not exceed the amount of capital gain
realized on or after July 1, 2003, offset by the amount of
capital losses realized on or after July 1, 2003. Net capital
gain not subject to tax under ORS 317.061 (2) shall be subject to
tax under ORS 317.061 (1). + }
SECTION 4. { + The amendments to ORS 316.037, 316.122 and
317.061 by sections 1, 2 and 3 of this 2001 Act apply to tax
years beginning on or after January 1, 2003. + }
SECTION 5. ORS 316.037, as amended by section 1 of this 2001
Act, is amended to read:
316.037. (1)(a) A tax is imposed for each taxable year on the
entire taxable income of every resident of this state. The amount
of the tax shall be determined in accordance with the following
table:
_________________________________________________________________
____NOTE_TO_GOPHER_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
If taxable income The tax is:
____NOTE_TO_GOPHER_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
Not over $2,000.. 5% of
____NOTE_TO_GOPHER_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
taxable
income
Over $2,000 but not
____NOTE_TO_GOPHER_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
over $5,000.... $100 plus 7%
____NOTE_TO_GOPHER_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
of the excess
Enrolled Senate Bill 67 (SB 67-A) Page 4
over $2,000
____NOTE_TO_GOPHER_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
Over $5,000...... $310 plus 9%
____NOTE_TO_GOPHER_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
of the excess
over $5,000
_________________________________________________________________
____________________________________________________________
END OF POSSIBLE IRREGULAR TABULAR TEXT
____________________________________________________________
(b) For tax years beginning in each calendar year, the
Department of Revenue shall adopt a table which shall apply in
lieu of the table contained in paragraph (a) of this subsection,
as follows:
(A) The minimum and maximum dollar amounts for each rate
bracket for which a tax is imposed shall be increased by the
cost-of-living adjustment for the calendar year.
(B) The rate applicable to any rate bracket as adjusted under
subparagraph (A) of this paragraph shall not be changed.
(C) The amounts setting forth the tax, to the extent necessary
to reflect the adjustments in the rate brackets, shall be
adjusted.
(c) For purposes of paragraph (b) of this subsection, the
cost-of-living adjustment for any calendar year is the percentage
(if any) by which the average U.S. City Average Consumer Price
Index for the second quarter of the calendar year exceeds the
average for the second quarter of the calendar year 1992.
(d) 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.
(e) If any increase determined under paragraph (b) of this
subsection is not a multiple of $50, the increase shall be
rounded to the next lowest multiple of $50.
(2) Notwithstanding subsection (1) of this section, any gain
that is treated as net capital gain for federal tax purposes and
that is included in taxable income in this state shall be taxed
at
{ - the lesser of the rate applicable under subsection (1) of
this section or six - } { + four + } percent.
(3) A tax is imposed for each taxable year upon the entire
taxable income of every part-year resident of this state. The
amount of the tax shall be computed under subsections (1) and (2)
of this section as if the part-year resident were a full-year
resident and shall be multiplied by the ratio provided under ORS
316.117 to determine the tax on income derived from sources
within this state.
(4) A tax is imposed for each taxable year on the taxable
income of every full-year nonresident that is derived from
Enrolled Senate Bill 67 (SB 67-A) Page 5
sources within this state. The amount of the tax shall be
determined in accordance with subsections (1) and (2) of this
section.
SECTION 6. ORS 317.061, as amended by section 3 of this 2001
Act, is amended to read:
317.061. (1) The rate of the tax imposed by and computed under
this chapter is six and six-tenths percent.
(2) Notwithstanding subsection (1) of this section, any gain
that is treated as net capital gain for federal tax purposes and
that is included in taxable income in this state shall be taxed
at a rate of { - six - } { + four + } percent.
SECTION 7. { + The amendments to ORS 316.037 and 317.061 by
sections 5 and 6 of this 2001 Act apply to tax years beginning on
or after January 1, 2005. + }
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Passed by Senate June 14, 2001
...........................................................
Secretary of Senate
...........................................................
President of Senate
Passed by House July 1, 2001
...........................................................
Speaker of House
Enrolled Senate Bill 67 (SB 67-A) Page 6
Received by Governor:
......M.,............., 2001
Approved:
......M.,............., 2001
...........................................................
Governor
Filed in Office of Secretary of State:
......M.,............., 2001
...........................................................
Secretary of State
Enrolled Senate Bill 67 (SB 67-A) Page 7