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
House Bill 2747
Sponsored by Representative DINGFELDER, Senator RINGO;
Representatives BATES, NOLAN
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.
Disconnects, for Oregon income and corporate excise tax
purposes, from federal law permitting accelerated depreciation of
four-wheeled motor vehicles exceeding certain weights.
Applies to 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) The federal taxable income of a taxpayer
shall be modified by the amount determined under subsection (2)
of this section if:
(a) The taxpayer is expensing or depreciating a four-wheeled
vehicle manufactured primarily for use on public streets, roads
and highways; and
(b) The vehicle:
(A) Is rated at 6,000 pounds unloaded gross vehicle weight or
more; or
(B) Is a truck or van and is rated at 6,000 pounds gross
vehicle weight or more.
(2)(a) The amount by which federal taxable income is modified
shall equal the difference between:
(A) The amount allowed for the vehicle 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 federal tax purposes; and
(B) The amount that would be allowed for the vehicle 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 if the vehicle met the definition of 'passenger
automobile' under section 280F(d)(5)(A) of the Internal Revenue
Code.
(b) The modification shall be an addition to federal taxable
income if the amount described under paragraph (a)(A) of this
subsection is larger than the amount described in paragraph
(a)(B) of this subsection.
(c) The modification shall be a subtraction from federal
taxable income if the amount described under paragraph (a)(A) of
this subsection is smaller than the amount described in paragraph
(a)(B) of this subsection.
(3) The adjusted basis of a vehicle subject to this section
shall be further adjusted for Oregon tax purposes to reflect the
modifications to federal taxable income made under this
section. + }
SECTION 3. { + Section 2 of this 2003 Act applies to 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) The federal taxable income of a taxpayer
shall be modified by the amount determined under subsection (2)
of this section if:
(a) The taxpayer is expensing or depreciating a four-wheeled
vehicle manufactured primarily for use on public streets, roads
and highways; and
(b) The vehicle:
(A) Is rated at 6,000 pounds unloaded gross vehicle weight or
more; or
(B) Is a truck or van and is rated at 6,000 pounds gross
vehicle weight or more.
(2)(a) The amount by which federal taxable income is modified
shall equal the difference between:
(A) The amount allowed for the vehicle 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 federal tax purposes; and
(B) The amount that would be allowed for the vehicle 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 if the vehicle met the definition of 'passenger
automobile' under section 280F(d)(5)(A) of the Internal Revenue
Code.
(b) The modification shall be an addition to federal taxable
income if the amount described under paragraph (a)(A) of this
subsection is larger than the amount described in paragraph
(a)(B) of this subsection.
(c) The modification shall be a subtraction from federal
taxable income if the amount described under paragraph (a)(A) of
this subsection is smaller than the amount described in paragraph
(a)(B) of this subsection.
(3) The adjusted basis of a vehicle subject to this section
shall be further adjusted for Oregon tax purposes to reflect the
modifications to federal taxable income made under this
section. + }
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 tax years
beginning on or after January 1, 2004. + }
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