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 2296
B-Engrossed
House Bill 2747
Ordered by the House May 28
Including House Amendments dated April 2 and May 28
Sponsored by Representative DINGFELDER, Senator RINGO;
Representatives BATES, HASS, NOLAN, TOMEI
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.
Disconnects, for Oregon income and corporate excise tax
purposes, from federal law permitting expense deduction and
accelerated depreciation of specified four-wheeled motor
vehicles. { + Increases to three times amount of federal
expense deduction or depreciation deduction added back to federal
taxable income for Oregon tax purposes. + } Excludes
{ - taxpayers filing federal Schedule F - } { + vehicles used
predominately in business of farming, certain vehicles used in
timber or wood-products industry and certain vehicles used in
construction + }.
Applies to property placed into service in tax years beginning
on or after January 1, 2004.
A BILL FOR AN ACT
Relating to taxation; creating new provisions; amending ORS
318.031; and providing for revenue raising that requires
approval by a three-fifths majority.
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 316. + }
SECTION 2. { + (1) There shall be added to federal taxable
income of a taxpayer a positive amount that equals three times
the amount the taxpayer took as an expense deduction under
section 179 of the Internal Revenue Code or as a depreciation
deduction under section 168 of the Internal Revenue Code for a
four-wheeled vehicle manufactured primarily for use on public
streets, roads and highways if the vehicle:
(a) Is rated between 6,001 and 14,000 pounds gross vehicle
weight;
(b) Is designed to seat nine or fewer individuals; and
(c) Is not equipped with an open cargo area with an interior
length of 72 inches or more or does not have a covered box with
an interior length of 72 inches or more that is separate from the
passenger compartment.
(2) For Oregon tax purposes, the adjusted basis of a vehicle
subject to this section shall equal the federal adjusted basis of
the vehicle.
(3) This section does not apply to a vehicle that is used
predominantly:
(a) In the business of farming, as defined in ORS 316.045;
(b) For the purpose of transporting employees or customers of a
business that is engaged in the timber or wood-products industry
or cargo or equipment related to the timber or wood-products
industry; or
(c) For the purpose of transporting employees or customers of a
construction business or cargo or equipment used in construction.
For purposes of this paragraph, a construction business does not
include real estate sales operations. + }
SECTION 3. { + Section 2 of this 2003 Act applies to property
placed in service in tax years beginning on or after January 1,
2004. + }
SECTION 4. { + Section 5 of this 2003 Act is added to and made
a part of ORS chapter 317. + }
SECTION 5. { + (1) There shall be added to federal taxable
income of a taxpayer a positive amount that equals three times
the amount the taxpayer took as an expense deduction under
section 179 of the Internal Revenue Code or as a depreciation
deduction under section 168 of the Internal Revenue Code for a
four-wheeled vehicle manufactured primarily for use on public
streets, roads and highways if the vehicle:
(a) Is rated between 6,001 and 14,000 pounds gross vehicle
weight;
(b) Is designed to seat nine or fewer individuals; and
(c) Is not equipped with an open cargo area with an interior
length of 72 inches or more or does not have a covered box with
an interior length of 72 inches or more that is separate from the
passenger compartment.
(2) For Oregon tax purposes, the adjusted basis of a vehicle
subject to this section shall equal the federal adjusted basis of
the vehicle.
(3) This section does not apply to a vehicle that is used
predominantly:
(a) In the business of farming, as defined in ORS 316.045;
(b) For the purpose of transporting employees or customers of a
business that is engaged in the timber or wood-products industry
or cargo or equipment related to the timber or wood-products
industry; or
(c) For the purpose of transporting employees or customers of a
construction business or cargo or equipment used in construction.
For purposes of this paragraph, a construction business does not
include real estate sales operations. + }
SECTION 6. ORS 318.031 is amended to read:
318.031. It being the intention of the Legislative Assembly
that this chapter and the Corporation Excise Tax Law of 1929
shall be administered as uniformly as possible (allowance being
made for the difference in imposition of the taxes and the
operative date of this chapter), ORS 305.140 and 305.150, ORS
chapter 314 and the following sections are incorporated into and
made a part of this chapter: ORS 315.104, 315.134, 315.156,
315.204, 315.208, 315.213, 315.234, 315.254, 315.304, 315.504,
315.511 and 315.604 (all only to the extent applicable for a
corporation) and ORS 285B.773, 315.507, 317.010, 317.013, 317.018
to 317.022, 317.030, 317.035, 317.038, 317.080, 317.124 to
317.131, 317.152 to 317.154, 317.259 to 317.303, 317.310 to
317.386, 317.476 to 317.485, 317.488, 317.510 to 317.635 and
317.705 to 317.725 { + and section 5 of this 2003 Act + }.
SECTION 7. { + Section 5 of this 2003 Act and the amendments
to ORS 318.031 by section 6 of this 2003 Act apply to property
placed in service in tax years beginning on or after January 1,
2004. + }
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