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 1840
 
                         House Bill 2486
 
Sponsored by Representative NELSON
 
 
                             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 tax credit for amounts paid by taxpayer during tax
year on interest from debt incurred to purchase goods and
services for personal, family or household purposes.
  Applies to amounts paid on interest in tax years beginning on
or after January 1, 2004.
 
                        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 2003 Act is added to and made
a part of ORS chapter 315. + }
  SECTION 2.  { + (1) A credit against the taxes otherwise due
under ORS chapter 316 is allowed to a taxpayer for amounts paid
by the taxpayer during the tax year on interest from debt
incurred to purchase goods and services for personal, family or
household purposes.
  (2) The amount of the tax allowed under this section shall
equal the lesser of:
  (a) __ percent of the amount of interest paid by the taxpayer
during the tax year; or
  (b) $__.
  (3) The amount of the credit claimed under this section may not
exceed the tax liability of the taxpayer for the tax year and may
not be carried forward to succeeding tax years.
  (4)(a) A nonresident shall be allowed the credit under this
section in the proportion provided in ORS 316.117.
  (b) 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.
  (c) 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 under this section shall be prorated or computed
in a manner consistent with ORS 314.085.
  (5) For any part of the debt that is incurred jointly by
spouses who are married at the close of the tax year, the credit
shall be allowed to only one taxpayer if the spouses file
separate returns for the tax year.
 
 
  (6) The credit allowed under this section shall be claimed on
the form and in the time and manner in which the Department of
Revenue prescribes. + }
  SECTION 3.  { + Section 2 of this 2003 Act applies to amounts
paid on interest in tax years beginning on or after January 1,
2004. + }
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