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 1625
House Bill 2488
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.
Reduces personal income tax rates. Alters tax rate bracket
structure. Establishes single tax rate on net capital gains.
Increases personal exemption credit. Phases in changes over
four-year period.
A BILL FOR AN ACT
Relating to tax reduction; creating new provisions; and amending
ORS 316.037, 316.085 and 316.122.
Be It Enacted by the People of the State of Oregon:
SECTION 1. { + Notwithstanding ORS 316.037 (1)(a), for tax
years beginning on or after January 1, 2004, and before January
1, 2005, the following apply in lieu of ORS 316.037 (1)(a):
(1) A tax is imposed for each tax 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_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
{ +
If taxable income The tax is: + }
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
{ +
Not over $2,000 5% of + }
____NOTE_TO_WEB_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_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
{ +
$100 plus06.5% + }
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
{ +
of the excess
over $2,000 + }
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
{ +
Over $5,000 $295 plus 8.75% + }
____NOTE_TO_WEB_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
____________________________________________________________
{ + (2) Notwithstanding subsection (1) of this section, in
the case of taxable income that is treated as net capital gain
for federal tax purposes, the tax shall be the lesser of:
(a) The amount determined under subsection (1) of this section
if the net capital gain is characterized as ordinary income; or
(b) Seven and one-half percent of the net capital gain. + }
SECTION 2. { + Notwithstanding ORS 316.037 (1)(a), for tax
years beginning on or after January 1, 2005, and before January
1, 2006, the following apply in lieu of ORS 316.037 (1)(a):
(1) A tax is imposed for each tax 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_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
{ +
If taxable income The tax is: + }
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
{ +
Not over $2,000 5% of + }
____NOTE_TO_WEB_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_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
{ +
o$100$plus06% + }
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
{ +
of the excess
over $2,000 + }
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
{ +
Over $5,000 $280 plus 8.5% + }
____NOTE_TO_WEB_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
____________________________________________________________
{ + (2) Notwithstanding subsection (1) of this section, in
the case of taxable income that is treated as net capital gain
for federal tax purposes, the tax shall be the lesser of:
(a) The amount determined under subsection (1) of this section
if the net capital gain is characterized as ordinary income; or
(b) Six and one-half percent of the net capital gain. + }
SECTION 3. { + Notwithstanding ORS 316.037 (1)(a), for tax
years beginning on or after January 1, 2006, and before January
1, 2007, the following apply in lieu of ORS 316.037 (1)(a):
(1) A tax is imposed for each tax 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_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
{ +
If taxable income The tax is: + }
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
{ +
Not over $2,000 5% of + }
____NOTE_TO_WEB_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_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
{ +
$100 plus05.5% + }
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
{ +
of the excess
over $2,000 + }
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
{ +
Over $5,000 $265 plus 8.25% + }
____NOTE_TO_WEB_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
____________________________________________________________
{ + (2) Notwithstanding subsection (1) of this section, in
the case of taxable income that is treated as net capital gain
for federal tax purposes, the tax shall be the lesser of:
(a) The amount determined under subsection (1) of this section
if the net capital gain is characterized as ordinary income; or
(b) Five and one-half percent of the net capital gain. + }
SECTION 4. ORS 316.037 is amended to read:
316.037. (1)(a) A tax is imposed for each { - taxable - }
{ + tax + }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_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
If taxable income The tax is:
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
Not over { -
$2,000 - }
5% of
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
{ +
$5,000 + }
taxable
income
{ -
Over $2,000 but not - }
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
{ -
o$100$plus07% - }
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
{ -
of the excess - }
{ -
over $2,000 - }
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
Over $5,000 { -
$310 plus 9% - }
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
{ +
$250 plus 8% + }
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 monthly averaged U.S. City Average Consumer
Price Index for the 12 consecutive months ending August 31 of the
prior calendar year exceeds the monthly averaged index 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 rate of five percent. + }
{ - (2) - } { + (3) + } A tax is imposed for each
{ - taxable - } { + tax + } 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 - } { + tax + } 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 5. { + If chapter 4, Oregon Laws 2002 (fifth special
session), is approved by the voters at the special election held
throughout this state on January 28, 2003, section 4 of this 2003
Act (amending ORS 316.037), is repealed and ORS 316.037, as
amended by section 1, chapter 4, Oregon Laws 2002 (fifth special
session), is amended to read: + }
316.037. (1)(a) A tax is imposed for each { - taxable - }
{ + tax + } 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_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
If taxable income The tax is:
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
Not over { -
$2,000 - }
5% of
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
{ +
$5,000 + }
taxable
income
{ -
Over $2,000 but not - }
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
{ -
o$100$plus07% - }
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
{ -
of the excess - }
{ -
over $2,000 - }
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
Over $5,000 { -
$310 plus 9.5% - }
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
{ +
$250 plus 8% + }
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 monthly averaged U.S. City Average Consumer
Price Index for the 12 consecutive months ending August 31 of the
prior calendar year exceeds the monthly averaged index 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 $25, the increase shall be
rounded to the next lowest multiple of $25.
{ + (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 rate of five percent. + }
{ - (2) - } { + (3) + } A tax is imposed for each
{ - taxable - } { + tax + } 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 - } { + tax + } 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 6. If chapter 4, Oregon Laws 2002 (fifth special
session), is approved by the voters at the special election held
throughout this state on January 28, 2003, ORS 316.037, as
amended by sections 1 and 3, chapter 4, Oregon Laws 2002 (fifth
special session), is amended to read:
316.037. (1)(a) A tax is imposed for each { - taxable - }
{ + tax + } 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_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
If taxable income The tax is:
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
Not over { -
$2,000 - }
5% of
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
{ +
$5,000 + }
taxable
income
{ -
Over $2,000 but not - }
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
{ -
o$100$plus07% - }
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
{ -
of the excess - }
{ -
over $2,000 - }
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
Over $5,000 { -
$310 plus 9% - }
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
{ +
$250 plus 8% + }
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 monthly averaged U.S. City Average Consumer
Price Index for the 12 consecutive months ending August 31 of the
prior calendar year exceeds the monthly averaged index 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 $25, the increase shall be
rounded to the next lowest multiple of $25.
{ + (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 rate of five percent. + }
{ - (2) - } { + (3) + } A tax is imposed for each
{ - taxable - } { + tax + } 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 - } { + tax + } 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 7. 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 8. { + The amendments to ORS 316.037 and 316.122 by
sections 4 to 7 of this 2003 Act apply to tax years beginning on
or after January 1, 2007. + }
SECTION 9. { + Notwithstanding ORS 316.085 (1)(a):
(1) For tax years beginning on or after January 1, 2004, and
before January 1, 2005, the personal exemption credit shall equal
$150 multiplied by the number of personal exemptions allowed
under section 151 of the Internal Revenue Code.
(2) For tax years beginning on or after January 1, 2005, and
before January 1, 2006, the personal exemption credit shall equal
$170 multiplied by the number of personal exemptions allowed
under section 151 of the Internal Revenue Code.
(3) For tax years beginning on or after January 1, 2006, and
before January 1, 2007, the personal exemption credit shall equal
$190 multiplied by the number of personal exemptions allowed
under section 151 of the Internal Revenue Code. + }
SECTION 10. ORS 316.085 is amended to read:
316.085. (1)(a) There shall be allowed a personal exemption
credit against taxes otherwise due under this chapter. The credit
shall equal { - $90 - } { + $210 + } multiplied by the number
of personal exemptions allowed under section 151 of the Internal
Revenue Code.
(b) In the case of an individual with respect to whom a credit
under paragraph (a) of this subsection is allowable to another
taxpayer for a { - taxable - } { + tax + } year beginning in
the calendar year in which the individual's { - taxable - }
{ + tax + } year begins, the credit amount applicable to such
individual for such individual's { - taxable - } { + tax + }
year is zero.
(2)(a) A nonresident shall be allowed the credit provided under
subsection (1) of this section computed in the same manner and
subject to the same limitations as the credit allowed to a
resident of this state. However, the credit shall be prorated
using the proportion provided in ORS 316.117.
(b) If a change in the { - taxable - } { + tax + } year of
a taxpayer occurs as described in ORS 314.085, or if the
Department of Revenue terminates the taxpayer's { - taxable - }
{ + tax + } 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.
(3) The Department of Revenue shall recompute the dollar amount
of the personal exemption credit allowed for state personal
income tax purposes. The computation shall be as follows:
(a) Divide the monthly averaged U.S. City Average Consumer
Price Index for the 12 consecutive months ending August 31 of the
prior calendar year by the monthly averaged index for the first
six months of { - 1986 - } { + 2007 + }.
(b) Recompute the dollar amount of the personal exemption
credit by multiplying { - $90 - } { + $210 + } by the
appropriate indexing factor determined as provided in paragraph
(a) of this subsection. Round off the amount obtained under this
paragraph to the nearest $1.
(4) As used in this section, '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.
(5) For purposes of determining if a personal exemption credit
or an additional personal exemption credit is allowable under
this chapter or determining the number of personal exemption
credits allowed, section 151(d)(3) of the Internal Revenue Code
shall be disregarded.
SECTION 11. { + The amendments to ORS 316.085 by section 10 of
this 2003 Act apply to tax years beginning on or after January 1,
2007. + }
----------