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 3774
House Bill 3658
Sponsored by Representative SCHAUFLER
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 by 10 percent amount of tax imposed on taxpayer with
federal adjusted gross income under certain amount.
Applies to tax years beginning on or after January 1, 2004.
A BILL FOR AN ACT
Relating to income taxes; creating new provisions; and amending
ORS 316.037 and 316.122.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 316.037 is amended to read:
316.037. (1)(a) A tax is imposed for each taxable 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.
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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.
_______________________________________________________________
over $5,000 $100 plus 7%
____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.
_______________________________________________________________
of the excess
over $5,000
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END OF POSSIBLE IRREGULAR TABULAR TEXT
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(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) A tax is imposed for each taxable 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) 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) A tax is imposed for each taxable 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) of this section.
{ + (4) Notwithstanding subsection (1), (2) or (3) of this
section, the amount of the tax imposed under this section shall
equal the amount determined under subsection (1), (2) or (3) of
this section reduced by 10 percent if a taxpayer:
(a) Is not eligible to file a joint return and has a federal
adjusted gross income for the tax year of $35,000 or less; or
(b) Files a joint return and has a combined federal adjusted
gross income for the tax year of $70,000 or less. + }
SECTION 2. 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) { + and (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) { + and (4) + }.
(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) { + and
(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), 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 3. { + The amendments to ORS 316.037 and 316.122 by
sections 1 and 2 of this 2003 Act apply to tax years beginning on
or after January 1, 2004. + }
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