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 1856
B-Engrossed
Senate Bill 362
Ordered by the House August 26
Including Senate Amendments dated April 29 and House Amendments
dated August 26
Sponsored by Senator DECKERT, Representative BUTLER (at the
request of Oregon Council on Knowledge and Economic
Development)
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.
{ - Establishes exemption from personal income tax for
certain income of upper-level managers at certain venture capital
firms and for certain income of upper-level scientific research
personnel at accredited colleges and universities. Directs
Economic and Community Development Department to certify
taxpayers as eligible for exemption upon application and
determination that exemption requirements are met. Limits total
number of individuals who may obtain initial certification.
Limits exemption to seven years. - }
{ - Applies to applications for certification made in tax
years beginning on or after January 1, 2003. - }
{ + Establishes connection date for ties to federal law for
Oregon inheritance tax purposes. Grants rulemaking authority to
Department of Revenue to permit estates to claim elections
similar to elections made for federal estate tax purposes.
Establishes tax return filing thresholds. Adopts federal levels
on value of estate that may be excluded from tax, but caps
maximum exclusion amount at $2 million. Allows department to
extend return filing and tax payment date for decedents who died
during 2002 and 2003. + }
Takes effect on 91st day following adjournment sine die.
A BILL FOR AN ACT
Relating to taxation; creating new provisions; amending ORS
118.010, 118.160 and 118.230; and prescribing an effective
date.
Be It Enacted by the People of the State of Oregon:
SECTION 1. { + Sections 2, 3, 9 and 10 of this 2003 Act are
added to and made a part of ORS 118.005 to 118.840. + }
SECTION 2. { + Any term used in ORS 118.005 to 118.840 has the
same meaning as when used in a comparable context in the laws of
the federal Internal Revenue Code relating to federal estate
taxes, unless a different meaning is clearly required or the term
is specifically defined in ORS 118.005 to 118.840. Any reference
in ORS 118.005 to 118.840 to the Internal Revenue Code means the
federal Internal Revenue Code as amended and in effect on
December 31, 2000, except where the Legislative Assembly has
specifically provided otherwise. + }
SECTION 3. { + (1) Section 2 of this 2003 Act applies to
decedents dying on or after January 1, 1998, and to inheritance
taxes imposed on transfers of property occurring due to decedents
dying on or after January 1, 1998.
(2) Except where the Legislative Assembly has provided
otherwise, the effective and applicable dates, and the
exceptions, special rules and coordination with the Internal
Revenue Code, as amended, relative to those dates, contained in
the Taxpayer Relief Act of 1997 (P.L. 105-34) and the Internal
Revenue Service Restructuring and Reform Act of 1998 (P.L.
105-206), apply for purposes of ORS 118.005 to 118.840, to the
extent they can be made applicable, in the same manner as they
are applied under the Internal Revenue Code and related federal
law. + }
SECTION 4. Section 2 of this 2003 Act is amended to read:
{ + Sec. 2. + }Any term used in ORS 118.005 to 118.840 has
the same meaning as when used in a comparable context in the laws
of the federal Internal Revenue Code relating to federal estate
taxes, unless a different meaning is clearly required or the term
is specifically defined in ORS 118.005 to 118.840. Any reference
in ORS 118.005 to 118.840 to the Internal Revenue Code means the
federal Internal Revenue Code as amended and in effect on
December 31, { - 2000 - } { + 2002 + }, except where the
Legislative Assembly has specifically provided otherwise.
SECTION 5. { + (1) Section 2 of this 2003 Act, as amended by
section 4 of this 2003 Act, applies to decedents dying on or
after January 1, 2002, and to inheritance taxes imposed on
transfers of property occurring due to decedents dying on or
after January 1, 2002.
(2) Except where the Legislative Assembly has provided
otherwise, the effective and applicable dates, and the
exceptions, special rules and coordination with the Internal
Revenue Code, as amended, relative to those dates, contained in
the Economic Growth and Tax Relief Reconciliation Act of 2001
(P.L. 107-16), apply for purposes of ORS 118.005 to 118.840, to
the extent they can be made applicable, in the same manner as
they are applied under the Internal Revenue Code and related
federal law. + }
SECTION 6. ORS 118.010 is amended to read:
118.010. (1) A tax is imposed upon a transfer of property and
any interest therein, within the jurisdiction of the state,
whether belonging to the inhabitants of this state or not, which
passes to or vests in any person or persons, or any body or
bodies politic or corporate, in trust or otherwise, or by reason
whereof any person or body politic or corporate shall become
beneficially entitled, in possession or expectation, to any
property or interest therein or income thereof.
(2) The tax imposed under this section shall equal { + :
(a) In the case of decedents dying before January 1, 2002, + }
the maximum amount of the state death tax credit allowable
against the federal estate tax under section 2011 of the Internal
Revenue Code.
{ + (b) In the case of decedents dying on or after January 1,
2002, and before January 1, 2003, the lesser of:
(A) An amount equal to the federal estate tax; or
(B) An amount 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.
_______________________________________________________________
{ +
Adjusted Taxable Estate
At But Tax Of Excess
leastless than = + % Over + }
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
{ +
$ 0 $ 40,0$0 0 0 $ 0 + }
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
{ +
490,000 0 0.40,000
90,00140,000 400 1.6 90,000
140,00240,000 1,200 2.4 140,000
240,00440,000 3,600 3.2 240,000
440,00640,000 10,000 4.0 440,000
640,00840,000 18,000 4.8 640,000
840,1,040,000 27,600 5.6 840,000
1,041,540,000 38,800 6.4 1,040,000
1,542,040,000 70,800 7.2 1,540,000
2,042,540,000106,800 8.0 2,040,000
2,543,040,000146,800 8.8 2,540,000
3,043,540,000190,800 9.6 3,040,000
3,544,040,000238,800 10.4 3,540,000
4,045,040,000290,800 11.2 4,040,000
5,046,040,000402,800 12.0 5,040,000
6,047,040,000522,800 12.8 6,040,000
7,048,040,000650,800 13.6 7,040,000
8,049,040,000786,800 14.4 8,040,000
9,010,040,000930,800 15.2 9,040,000
10,04and0ov1,082,800 10,040,000 + }
________________________________________________________________
____________________________________________________________
END OF POSSIBLE IRREGULAR TABULAR TEXT
____________________________________________________________
{ + (c) In the case of decedents dying on or after January 1,
2003, and before January 1, 2004, 1.34 times the lesser of:
(A) An amount equal to the federal estate tax; or
(B) An amount 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.
_______________________________________________________________
{ +
Adjusted Taxable Estate
At But Tax Of Excess
leastless than = + % Over + }
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
{ +
$ 0 $ 40,0$0 0 0 $ 0 + }
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
{ +
490,000 0 0.40,000
90,00140,000 400 1.6 90,000
140,00240,000 1,200 2.4 140,000
240,00440,000 3,600 3.2 240,000
440,00640,000 10,000 4.0 440,000
640,00840,000 18,000 4.8 640,000
840,1,040,000 27,600 5.6 840,000
1,041,540,000 38,800 6.4 1,040,000
1,542,040,000 70,800 7.2 1,540,000
2,042,540,000106,800 8.0 2,040,000
2,543,040,000146,800 8.8 2,540,000
3,043,540,000190,800 9.6 3,040,000
3,544,040,000238,800 10.4 3,540,000
4,045,040,000290,800 11.2 4,040,000
5,046,040,000402,800 12.0 5,040,000
6,047,040,000522,800 12.8 6,040,000
7,048,040,000650,800 13.6 7,040,000
8,049,040,000786,800 14.4 8,040,000
9,010,040,000930,800 15.2 9,040,000
10,04and0ov1,082,800 10,040,000 + }
________________________________________________________________
____________________________________________________________
END OF POSSIBLE IRREGULAR TABULAR TEXT
____________________________________________________________
{ + (d) In the case of decedents dying on or after January 1,
2004, and before January 1, 2005, 1.38 times the lesser of:
(A) An amount equal to the federal estate tax; or
(B) An amount 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.
_______________________________________________________________
{ +
Adjusted Taxable Estate
At But Tax Of Excess
leastless than = + % Over + }
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
{ +
$ 0 $ 40,0$0 0 0 $ 0 + }
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
{ +
490,000 0 0.40,000
90,00140,000 400 1.6 90,000
140,00240,000 1,200 2.4 140,000
240,00440,000 3,600 3.2 240,000
440,00640,000 10,000 4.0 440,000
640,00840,000 18,000 4.8 640,000
840,1,040,000 27,600 5.6 840,000
1,041,540,000 38,800 6.4 1,040,000
1,542,040,000 70,800 7.2 1,540,000
2,042,540,000106,800 8.0 2,040,000
2,543,040,000146,800 8.8 2,540,000
3,043,540,000190,800 9.6 3,040,000
3,544,040,000238,800 10.4 3,540,000
4,045,040,000290,800 11.2 4,040,000
5,046,040,000402,800 12.0 5,040,000
6,047,040,000522,800 12.8 6,040,000
7,048,040,000650,800 13.6 7,040,000
8,049,040,000786,800 14.4 8,040,000
9,010,040,000930,800 15.2 9,040,000
10,04and0ov1,082,800 10,040,000 + }
________________________________________________________________
____________________________________________________________
END OF POSSIBLE IRREGULAR TABULAR TEXT
____________________________________________________________
{ + (e) In the case of decedents dying on or after January 1,
2005, the lesser of:
(A) An amount equal to the federal estate tax; or
(B) An amount 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.
_______________________________________________________________
{ +
Adjusted Taxable Estate
At But Tax Of Excess
leastless than = + % Over + }
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
{ +
$ 0 $ 40,0$0 0 0 $ 0 + }
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
{ +
490,000 0 0.40,000
90,00140,000 400 1.6 90,000
140,00240,000 1,200 2.4 140,000
240,00440,000 3,600 3.2 240,000
440,00640,000 10,000 4.0 440,000
640,00840,000 18,000 4.8 640,000
840,1,040,000 27,600 5.6 840,000
1,041,540,000 38,800 6.4 1,040,000
1,542,040,000 70,800 7.2 1,540,000
2,042,540,000106,800 8.0 2,040,000
2,543,040,000146,800 8.8 2,540,000
3,043,540,000190,800 9.6 3,040,000
3,544,040,000238,800 10.4 3,540,000
4,045,040,000290,800 11.2 4,040,000
5,046,040,000402,800 12.0 5,040,000
6,047,040,000522,800 12.8 6,040,000
7,048,040,000650,800 13.6 7,040,000
8,049,040,000786,800 14.4 8,040,000
9,010,040,000930,800 15.2 9,040,000
10,04and0ov1,082,800 10,040,000 + }
________________________________________________________________
____________________________________________________________
END OF POSSIBLE IRREGULAR TABULAR TEXT
____________________________________________________________
(3) In the case of a resident decedent owning property outside
of the jurisdiction of this state at the time of death, the tax
imposed under this section shall be the amount determined under
subsection (2) of this section multiplied by a ratio. The
numerator of the ratio shall be the sum of the appraised value of
the decedent's real property located in Oregon, tangible personal
property located in Oregon and intangible personal property
located both in and outside of Oregon. The denominator of the
ratio shall be the total appraised value of the decedent's gross
estate.
(4)(a) In the case of a nonresident decedent owning property
within the jurisdiction of this state at the time of death, the
tax imposed under this section shall be the amount determined
under subsection (2) { + + }of this section multiplied by a
ratio. The numerator of the ratio shall be the sum of the
appraised value of the decedent's real property located in
Oregon, tangible personal property located in Oregon and
intangible personal property located in Oregon. The denominator
shall be the total appraised value of the decedent's gross
estate.
(b) Intangible personal property of a nonresident decedent
shall not be included in the numerator of the ratio used to
determine the tax under this subsection if a similar exemption is
made by the laws of the state or country of the decedent's
residence in favor of residents of this state.
(5) { + In the case of decedents dying before January 1,
2009, + } if federal estate tax credits other than the state
death tax credit result in no federal estate tax, { - no tax
shall - } { + a tax may not + } be imposed under this section.
(6) Payment, in whole or in part, of inheritance and estate
taxes from funds of an estate or trust on any benefit subject to
tax under ORS 118.005 to 118.840 is not to be considered as a
further taxable benefit, when such payment is directed by
decedent's will or by a trust agreement.
{ + (7) If the federal taxable estate is determined by making
an election under section 2032 or 2056 of the Internal Revenue
Code or another provision of the Internal Revenue Code, or if a
federal estate tax return is not required under the Internal
Revenue Code, the Department of Revenue may adopt rules providing
for a separate election for state inheritance tax purposes.
(8) As used in this section:
(a) 'Adjusted taxable estate' means the adjusted taxable estate
that would have been determined under section 2011 of the
Internal Revenue Code, without adjustment for the amount of any
Oregon inheritance tax imposed under this chapter.
(b) 'Federal estate tax' means the amount of tax that would
have been determined under section 2001 of the Internal Revenue
Code, reduced by the lesser of:
(A) The unified credit allowed to the estate under section 2010
of the Internal Revenue Code; or
(B) $780,800. + }
SECTION 7. ORS 118.160 is amended to read:
118.160. (1) Except as provided in subsection (2) of this
section { - , - } { + :
(a) + } { - no inheritance tax return shall be - } { + An
inheritance tax return is not + } required with respect to the
estates of decedents dying on or after January 1, 1987, { + and
before January 1, 2009, + } unless a federal estate tax return is
required to be filed { + ; and
(b) An inheritance tax return is not required with respect to
the estates of decedents dying on or after January 1, 2009,
unless the value of the gross estate of the decedent is $2
million or more + }.
(2) In every estate, whether or not subject to administration
and whether or not a federal estate tax return is required to be
filed, the executor shall at such times and in such manner as
required by rules of the Department of Revenue, file with the
department a return in a form provided by the department setting
forth a list and description of all transfers of property, in
trust or otherwise, made by the decedent in the lifetime of the
decedent as a division or distribution of the estate of the
decedent made within the three-year period ending on the date of
death or intended to take effect at or after death and any
further data that the department requires to determine
inheritance tax under this chapter.
SECTION 8. ORS 118.230 is amended to read:
118.230. (1) Every tax imposed by ORS 118.005 to 118.840 is a
lien upon the property embraced in any inheritance, devise,
bequest, legacy or gift until paid, and the person to whom such
property is transferred, and the personal representatives and
trustees of every estate embracing such property are personally
liable for such tax until its payment, to the extent of the value
of such property.
(2) Taxes imposed under ORS 118.005 to 118.840 may be { +
assessed and + } collected by the Department of Revenue in the
same manner as income taxes are { + assessed and + } collected
under ORS chapter 314. The department may issue a warrant as
provided in ORS 314.430 { - , - } and record the warrant in the
County Clerk Lien Record maintained under ORS 205.130. A warrant
issued under this section has the same force and effect as a
warrant issued under ORS 314.430.
SECTION 9. { + (1) In the case of a decedent who dies on or
after January 1, 2002, and before January 1, 2004, the Department
of Revenue may extend the time for the filing of a return and for
the payment of any tax due under ORS 118.005 to 118.840 for a
reasonable period not to exceed four years from the date
otherwise fixed for the filing of a return and the payment of the
tax due.
(2) The department may prescribe rules and forms for granting
an extension under this section. + }
SECTION 10. { + Notwithstanding section 2 of this 2003 Act,
section 2210 of the Internal Revenue Code does not apply to ORS
118.005 to 118.840. In the case of a decedent dying on or after
January 1, 2010, the provisions of the Internal Revenue Code
apply as if the decedent died before January 1, 2010. + }
SECTION 11. { + 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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