73rd OREGON LEGISLATIVE ASSEMBLY--2005 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 914
 
                         House Bill 2039
 
Ordered printed by the Speaker pursuant to House Rule 12.00A (5).
  Presession filed (at the request of former Representative Joe
  Smith)
 
 
                             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.
 
  Replaces existing corporate excise or income tax with tax
imposed on income reported to shareholders under federal
securities law, as further allocated or apportioned to Oregon
under existing law. Retains existing corporate excise or income
tax for corporations whose stock is not publicly traded.
  Applies to tax years beginning on or after January 1, 2007.
 
                        A BILL FOR AN ACT
Relating to taxation; 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.  { + As used in sections 1 to 6 of this 2005 Act:
  (1) 'Publicly traded corporation' means a corporation that is
required to report earnings under 15 U.S.C. 78m.
  (2) 'Reported income' means the earnings of a publicly traded
corporation, as reported on an annual report filed with the
Securities and Exchange Commission under 15 U.S.C. 78m.
  (3) 'United States Code' or 'U.S.C.' means the United States
Code as amended and in effect on December 31, 2004, including any
federal regulation adopted under a provision of the United States
Code, as the federal regulation is amended and in effect on
December 31, 2004. + }
  SECTION 2.  { + Notwithstanding any other provision of law, a
corporation that is a publicly traded corporation is exempt from
any tax imposed under ORS chapter 317 or 318 and is subject to
the tax imposed under section 3 of this 2005 Act. + }
  SECTION 3.  { + (1) The taxable income of a publicly traded
corporation shall be the reported income of the corporation, as
further allocated or apportioned to this state as provided in
subsection (3) of this section.
  (2) The tax year of the corporation shall be the calendar year.
  (3)(a) If a publicly traded corporation has reported income
from sources both within this state and outside of this state,
the corporation shall determine taxable income by allocating or
apportioning reported income to Oregon using the allocation and
apportionment provisions of ORS 314.605 to 314.675.
  (b) If a publicly traded corporation has reported income only
from sources within this state, the taxable income of the
corporation shall equal the reported income of the corporation.
  (4) For each tax year, a publicly traded corporation with
reported income from Oregon sources shall pay a tax equal to ___
percent of the taxable income of the corporation. + }
  SECTION 4.  { + (1) A publicly traded corporation subject to
tax under sections 1 to 6 of this 2005 Act shall pay the tax
imposed under section 3 of this 2005 Act to the Department of
Revenue on or before 60 days following the date the annual report
required under 15 U.S.C. 78m is filed with the Securities and
Exchange Commission or is required to be filed with the
Securities and Exchange Commission, whichever is earlier.
  (2) The tax shall be reported on a return filed with the
department on a form prescribed by the department that contains
the information required by the department.
  (3) The department may by rule require the advance payment of
taxes that are estimated to be due under section 3 of this 2005
Act. + }
  SECTION 5.  { + Unless the context requires otherwise, the
provisions of ORS chapters 305, 314, 317 and 318 as to the audit
and examination of reports and returns, determination of
deficiencies, assessments, claims for refunds, penalties,
interest, jeopardy assessments, warrants, conferences and appeals
to the Oregon Tax Court, and procedures relating thereto, apply
to sections 1 to 6 of this 2005 Act the same as if the tax were a
tax imposed upon or measured by taxable income as determined
under ORS chapter 317 or 318. + }
  SECTION 6.  { + The Department of Revenue may adopt rules to
implement or administer sections 1 to 6 of this 2005 Act. + }
  SECTION 7.  { + Sections 1 to 6 of this 2005 Act apply to tax
years beginning on or after January 1, 2007. + }
  SECTION 8.  { + (1) Notwithstanding any other provision of law,
each publicly traded corporation that reports corporate excise or
income taxes on a tax year basis that is other than the calendar
year shall, for the tax year of the corporation that begins in
the 2006 calendar year, compute taxes due under ORS chapter 317
or 318 on the basis of a short tax year that ends on December 31,
2006.
  (2) As used in this section, 'publicly traded corporation ' has
the meaning given that term in section 1 of this 2005 Act. + }
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