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 1548
Senate Bill 313
Sponsored by Senator DECKERT; Senator FISHER (at the request of
Economic and Community Development Department)
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.
Modifies period during which certain investments qualify for
electronic commerce investment income tax credit. Establishes
recordkeeping and enforcement provisions applicable to credit.
Applies to tax years beginning on or after January 1, 2002.
Takes effect on 91st day following adjournment sine die.
A BILL FOR AN ACT
Relating to business development tax incentives; creating new
provisions; amending ORS 315.507; and prescribing an effective
date.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 315.507 is amended to read:
315.507. (1) A credit against the taxes that are otherwise due
under ORS chapter 316 or, if the taxpayer is a corporation, under
ORS chapter 317 or 318, shall be allowed to a taxpayer that is:
(a) A { - qualified - } business firm engaged { + or
preparing to engage + } in electronic commerce in an enterprise
zone that has been approved for electronic commerce designation
under ORS 285B.672; or
(b) A business firm engaged in electronic commerce in a city
that has been designated for electronic commerce under ORS
285B.673.
(2) The credit shall equal 25 percent of the investments made
by the business firm { + in capital assets:
(a) Located in the area designated for electronic commerce;
(b) + } { - during the tax year - } { + Used or
constructed, installed or otherwise prepared for use + }in
electronic commerce operations within the area designated for
electronic commerce that are related to electronic commerce
sales, customer service, order fulfillment { + , + } { - or - }
broadband infrastructure { + or other electronic commerce
operations; and
(c)(A) During the period that commences when the firm becomes a
precertified business firm under ORS 285B.719 and ends on the
last day of the income or corporate excise tax year in which
begins the first property tax year in which qualified property of
the firm used in eligible electronic commerce activities is
exempt from property taxation under ORS 285B.698; or
(B) During any income or corporate excise tax year in which
begins a property tax year in which qualified property of the
firm used in eligible electronic commerce operations is exempt
from property taxation under ORS 285B.698 + }.
{ - (3) A credit under this section may not be allowed for an
income tax year beginning in a property tax year in which
qualified property of the business firm is subject to property
tax. - }
{ + (3) Except as provided in subsection (5) of this section,
the credit must be claimed for the income or corporate excise tax
year that is:
(a) The year in which the investment for which a credit is
being claimed is made; and
(b) A year, all or part of which is described in subsection
(2)(c) of this section. + }
(4) A credit allowed under this section { + for any one tax
year + } may not exceed the lesser of $2 million or the tax
liability of the taxpayer.
(5) Any tax credit otherwise allowable under this section that
is not used by the taxpayer in a particular year may be carried
forward and offset against the taxpayer's tax liability for the
next succeeding tax year. Any credit remaining unused in the next
succeeding tax year may be carried forward and used in the second
succeeding tax year, and likewise any credit not used in that
second succeeding tax year may be carried forward and used in the
third succeeding tax year, and any credit not used in that third
succeeding tax year may be carried forward and used in the fourth
succeeding tax year, and any credit not used in that fourth
succeeding tax year may be carried forward and used in the fifth
succeeding tax year, but may not be carried forward for any tax
year thereafter.
{ + (6) The credit allowed under this section is not in lieu
of any depreciation or amortization deduction to which the
taxpayer otherwise may be entitled under ORS chapter 316, 317 or
318 for the tax year.
(7) The taxpayer's adjusted basis for determining gain or loss
may not be further decreased by any amount of credit allowed
under this section.
(8)(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 under 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. + }
{ - (6) - } { + (9) + } As used in this section, 'business
firm, ' ' electronic commerce,' { - ' qualified business
firm' - } { + ' precertified business firm' + } and 'qualified
property' have the meanings given those terms in ORS 285B.650.
SECTION 2. { + (1) A taxpayer who has claimed a credit under
ORS 315.507 shall maintain records sufficient to show:
(a) That within three years following the year in which a
credit was claimed under ORS 315.507, property owned or operated
by the taxpayer and used in electronic commerce operations was
exempt from property taxation under ORS 285B.698; and
(b) That at no time was property described in paragraph (a) of
this subsection disqualified from exemption pursuant to ORS
285B.728.
(2) The taxpayer shall provide these records to the Department
of Revenue if requested by the department.
(3) The taxpayer shall maintain the records described in this
section for at least five years following the last tax year for
which the taxpayer claims any credit under ORS 315.507.
(4) If property owned or operated by the taxpayer is not both
used in electronic commerce operations in an area designated for
electronic commerce and exempt from property taxation under ORS
285B.698 within three years following the year in which a credit
is first claimed under ORS 315.507, the department shall disallow
the credit for the current or any prior tax year and collect any
taxes that were not paid as a result of application of the
credit.
(5) If property owned or operated by the taxpayer, used in
electronic commerce operations in an area designated for
electronic commerce and exempt from property taxation under ORS
285B.698 is disqualified from exemption under ORS 285B.728, the
department shall disallow the credit for the current or any prior
tax year and collect any taxes that were not paid as a result of
application of the credit.
(6) For purposes of collecting taxes due under subsection (4)
or (5) of this section, the department shall have the benefit of
all laws of this state pertaining to the collection of income and
corporate excise taxes. No assessment of these taxes shall be
necessary and no statute of limitations shall preclude the
collection of these taxes. + }
SECTION 3. { + Section 2 of this 2003 Act is added to and made
a part of ORS chapter 315. + }
SECTION 4. { + Section 2 of this 2003 Act and the amendments
to ORS 315.507 by section 1 of this 2003 Act apply to tax years
beginning on or after January 1, 2002. + }
SECTION 5. { + This 2003 Act takes effect on the 91st day
after the date on which the regular session of the Seventy-second
Legislative Assembly adjourns sine die. + }
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