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 322
 
                         House Bill 2149
 
Ordered printed by the Speaker pursuant to House Rule 12.00A (5).
  Presession filed (at the request of Governor Theodore R.
  Kulongoski for Department of Revenue)
 
 
                             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.
 
  Prescribes allocation formula for part-year resident and
nonresident taxpayers that receive items of income, gain, loss,
deduction or credit from pass-through entities.
  Applies to tax years beginning on or after January 1, 2002, and
other tax years for which returns are subject to appeal or to
audit or adjustment by Department of Revenue, or for which claim
for refund may be made.
  Takes effect on 91st day following adjournment sine die.
 
                        A BILL FOR AN ACT
Relating to taxation; creating new provisions; amending ORS
  316.119; and prescribing an effective date.
Be It Enacted by the People of the State of Oregon:
  SECTION 1. ORS 316.119 is amended to read:
  316.119.  { + (1) Except as provided in subsection (2) of this
section,  + }for purposes of ORS 316.117, the adjusted gross
income of a part-year resident from Oregon sources is the sum of
the following:
    { - (1) - }  { +  (a) + } For the portion of the year in
which the taxpayer was a resident of Oregon, the taxpayer's
entire adjusted gross income.
    { - (2) - }  { +  (b) + } For the portion of the year in
which the taxpayer was a nonresident, the taxpayer's adjusted
gross income derived from sources within this state { + , + } as
determined under ORS 316.127.
   { +  (2) For purposes of ORS 316.117, the adjusted gross
income of a part-year resident with federal adjusted gross income
that includes an item of income, gain, loss, deduction or credit
from a pass-through entity shall include the sum of the
following:
  (a) The total amount of the item that is taken into account in
federal adjusted gross income, multiplied by the ratio of the
number of days the taxpayer was a resident of Oregon during the
tax year of the entity over the total number of days in the tax
year of the entity; and
  (b) The total amount of the item that is taken into account in
federal adjusted gross income and that is derived from or
connected with sources within this state, as determined under ORS
316.127, multiplied by the ratio of the number of days the
taxpayer was a nonresident of Oregon during the tax year of the
entity over the total number of days in the tax year of the
entity.
  (3) As used in subsection (2) of this section:
  (a) 'Pass-through entity' means any entity that is recognized
as a separate entity for federal income tax purposes, for which
the owners are required to report income, gains, losses,
deductions or credits from the entity for federal income tax
purposes.
  (b) 'Tax year of the entity' means the tax year of the
pass-through entity that ends within the tax year of the
taxpayer. + }
  SECTION 2.  { + The amendments to ORS 316.119 by section 1 of
this 2005 Act apply to:
  (1) Tax years beginning on or after January 1, 2002; and
  (2) Any tax year for which a return is subject to audit or
adjustment by the Department of Revenue on or after the effective
date of this 2005 Act, any tax year for which a return is the
subject of an appeal on or after the effective date of this 2005
Act and any tax year for which a claim for refund may be made on
or after the effective date of this 2005 Act. + }
  SECTION 3.  { + This 2005 Act takes effect on the 91st day
after the date on which the regular session of the Seventy-third
Legislative Assembly adjourns sine die. + }
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