72nd OREGON LEGISLATIVE ASSEMBLY--2003 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 641
House Bill 2184
Ordered printed by the Speaker pursuant to House Rule 12.00A (5).
Presession filed (at the request of Governor Theodore R.
Kulongoski for Department of Revenue)
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.
For purposes of determining Oregon inheritance tax, applies
changes made to federal estate tax law to decedents who died
during 1998 to 2002 period. States that no Oregon inheritance tax
is due if federal law, as of certain dates, does not require
filing of federal estate tax return. Does not alter effect of
existing law for estates of decedents who die on or after January
1, 2003.
Authorizes Department of Revenue to assess unpaid inheritance
taxes in same manner as unpaid income taxes are assessed.
Takes effect on 91st day following adjournment sine die.
A BILL FOR AN ACT
Relating to inheritance taxation; creating new provisions;
amending ORS 118.160 and 118.230; and prescribing an effective
date.
Be It Enacted by the People of the State of Oregon:
SECTION 1. { + Section 2 of this 2003 Act is added to and made
a part of ORS 118.005 to 118.840. + }
SECTION 2. { + Any term used in ORS 118.005 to 118.840 has the
same meaning as when used in a comparable context in the laws of
the Internal Revenue Code relating to federal estate taxes,
unless a different meaning is clearly required or the term is
specifically defined in ORS 118.005 to 118.840. Any reference in
ORS 118.005 to 118.840 to the Internal Revenue Code means the
Internal Revenue Code as amended and in effect on December 31,
2000, except where the Legislative Assembly has specifically
provided otherwise. + }
SECTION 3. { + (1) Except as provided in subsection (2) of
this section, section 2 of this 2003 Act applies to decedents who
died on or after January 1, 1998, and before January 1, 2003, and
to inheritance taxes imposed on transfers of property occurring
due to decedents who died on or after January 1, 1998, and before
January 1, 2003.
(2) Except where the Legislative Assembly has provided
otherwise, the effective and applicable dates, and the
exceptions, special rules and coordination with the Internal
Revenue Code, as amended, relative to those dates, contained in
the Taxpayer Relief Act of 1997 (P.L. 105-34) and the Internal
Revenue Service Restructuring and Reform Act of 1998 (P.L.
105-206) apply for purposes of ORS 118.005 to 118.840, to the
extent they can be made applicable, in the same manner as they
are applied under the Internal Revenue Code and related federal
law. + }
SECTION 4. ORS 118.160 is amended to read:
118.160. (1) Except as provided in subsection (2) of this
section { - , - } { + and notwithstanding any other provision
of ORS 118.005 to 118.840:
(a) An + } { - No - } inheritance tax return { - shall
be - } { + is not + } required with respect to the estates of
decedents { - dying on or after January 1, 1987, - } unless a
federal estate tax return is required to be filed { + under the
Internal Revenue Code; and
(b) An inheritance tax is not due if an inheritance tax return
is not required under paragraph (a) of this subsection + }.
(2) In every estate, whether or not subject to administration
and whether or not a federal estate tax return is required to be
filed, the executor shall at such times and in such manner as
required by rules of the Department of Revenue, file with the
department a return in a form provided by the department setting
forth a list and description of all transfers of property, in
trust or otherwise, made by the decedent in the lifetime of the
decedent as a division or distribution of the estate of the
decedent made within the three-year period ending on the date of
death or intended to take effect at or after death and any
further data that the department requires to determine
inheritance tax under this chapter.
SECTION 5. ORS 118.160, as amended by section 4 of this 2003
Act, is amended to read:
118.160. (1) Except as provided in subsection (2) of this
section and notwithstanding any other provision of ORS 118.005 to
118.840:
(a) An inheritance tax return is not required with respect to
the estates of decedents unless a federal estate tax return is
required to be filed under the Internal Revenue Code { + , as
amended and in effect on December 31, 2002 + }; and
(b) An inheritance tax is not due if an inheritance tax return
is not required under paragraph (a) of this subsection.
(2) In every estate, whether or not subject to administration
and whether or not a federal estate tax return is required to be
filed, the executor shall at such times and in such manner as
required by rules of the Department of Revenue, file with the
department a return in a form provided by the department setting
forth a list and description of all transfers of property, in
trust or otherwise, made by the decedent in the lifetime of the
decedent as a division or distribution of the estate of the
decedent made within the three-year period ending on the date of
death or intended to take effect at or after death and any
further data that the department requires to determine
inheritance tax under this chapter.
SECTION 6. { + The amendments to ORS 118.160 by section 5 of
this 2003 Act apply to decedents who died on or after January 1,
2002, and to inheritance taxes imposed on transfers of property
occurring due to decedents who died on or after January 1,
2002. + }
SECTION 7. ORS 118.160, as amended by sections 4 and 5 of this
2003 Act, is amended to read:
118.160. (1) Except as provided in subsection (2) of this
section and notwithstanding any other provision of ORS 118.005 to
118.840:
(a) An inheritance tax return is not required with respect to
the estates of decedents unless a federal estate tax return is
required to be filed under the Internal Revenue Code, as amended
and in effect on December 31, { - 2002 - } { + 1996 + }; and
(b) An inheritance tax is not due if an inheritance tax return
is not required under paragraph (a) of this subsection.
(2) In every estate, whether or not subject to administration
and whether or not a federal estate tax return is required to be
filed, the executor shall at such times and in such manner as
required by rules of the Department of Revenue, file with the
department a return in a form provided by the department setting
forth a list and description of all transfers of property, in
trust or otherwise, made by the decedent in the lifetime of the
decedent as a division or distribution of the estate of the
decedent made within the three-year period ending on the date of
death or intended to take effect at or after death and any
further data that the department requires to determine
inheritance tax under this chapter.
SECTION 8. { + The amendments to ORS 118.160 by section 7 of
this 2003 Act apply to decedents who died on or after January 1,
2003, and to inheritance taxes imposed on transfers of property
occurring due to decedents who died on or after January 1,
2003. + }
SECTION 9. ORS 118.230 is amended to read:
118.230. (1) Every tax imposed by ORS 118.005 to 118.840 is a
lien upon the property embraced in any inheritance, devise,
bequest, legacy or gift until paid, and the person to whom such
property is transferred, and the personal representatives and
trustees of every estate embracing such property are personally
liable for such tax until its payment, to the extent of the value
of such property.
(2) Taxes imposed under ORS 118.005 to 118.840 may be { +
assessed and + } collected by the Department of Revenue in the
same manner as income taxes are { + assessed and + } collected
under ORS chapter 314. The department may issue a warrant as
provided in ORS 314.430 { - , - } and record the warrant in the
County Clerk Lien Record maintained under ORS 205.130. A warrant
issued under this section has the same force and effect as a
warrant issued under ORS 314.430.
SECTION 10. { + This 2003 Act takes effect on the 91st day
after the date on which the regular session of the Seventy-second
Legislative Assembly adjourns sine die. + }
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