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 1203
House Bill 2332
Ordered printed by the Speaker pursuant to House Rule 12.00A (5).
Presession filed (at the request of Representative Wayne Scott
for Oregon Restaurant Association)
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 rate of tax on capital gains of personal income and
corporate income and excise taxpayers. Phases in reduction.
Applies to tax years beginning on or after January 1, 2006, for
personal income taxpayers and January 1, 2008, for corporate
income and excise taxpayers.
A BILL FOR AN ACT
Relating to reductions in capital gains taxes; creating new
provisions; amending ORS 316.037, 316.122, 317.061 and 318.020;
and repealing ORS 316.045 and 317.063.
Be It Enacted by the People of the State of Oregon:
SECTION 1. { + Section 2 of this 2005 Act is added to and made
a part of ORS chapter 316. + }
SECTION 2. { + (1) For the tax year of the taxpayer beginning
on or after January 1, 2006, and before January 1, 2007,
notwithstanding ORS 316.037 (1), any gain that is treated as net
capital gain for federal tax purposes and that is included in
taxable income in this state shall be taxed at the lesser of the
rate applicable under ORS 316.037 (1) or 8.5 percent.
(2) For the tax year of the taxpayer beginning on or after
January 1, 2007, and before January 1, 2008, notwithstanding ORS
316.037 (1), any gain that is treated as net capital gain for
federal tax purposes and that is included in taxable income in
this state shall be taxed at the lesser of the rate applicable
under ORS 316.037 (1) or 7.5 percent.
(3) For the tax year of the taxpayer beginning on or after
January 1, 2008, and before January 1, 2009, notwithstanding ORS
316.037 (1), any gain that is treated as net capital gain for
federal tax purposes and that is included in taxable income in
this state shall be taxed at the lesser of the tax applicable
under ORS 316.037 (1) or 6.5 percent.
(4) For the tax year of the taxpayer beginning on or after
January 1, 2009, and before January 1, 2010, notwithstanding ORS
316.037 (1), any gain that is treated as net capital gain for
federal tax purposes and that is included in taxable income in
this state shall be taxed at the lesser of the rate applicable
under ORS 316.037 (1) or 5.5 percent. + }
SECTION 3. 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.
_______________________________________________________________
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
_________________________________________________________________
____________________________________________________________
END OF POSSIBLE IRREGULAR TABULAR TEXT
____________________________________________________________
(b) For tax years beginning in each calendar year, the
Department of Revenue shall adopt a table that 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 lower multiple of $50.
{ + (2) Notwithstanding subsection (1) of this section, any
gain that is treated as net capital gain for federal tax purposes
and that is included in taxable income in this state shall be
taxed at the rate of five percent. + }
{ - (2) - } { + (3) + } 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) - } { + subsections (1) and (2) + } 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) - } { + (4) + } 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) - } { + subsections (1) and (2) + } of this
section.
SECTION 4. 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) - } { + (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) - } { + (3) + }.
(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) - }
{ + (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) { + or (4) + }, 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 5. { + The amendments to ORS 316.037 and 316.122 by
sections 3 and 4 of this 2005 Act apply to tax years beginning on
or after January 1, 2010. + }
SECTION 6. { + Section 7 of this 2005 Act is added to and made
a part of ORS chapter 317. + }
SECTION 7. { + (1) For the tax year of the taxpayer beginning
on or after January 1, 2008, and before January 1, 2009,
notwithstanding ORS 317.061, any gain that is treated as net
capital gain subject to tax under ORS 317.061 shall be taxed at
the rate of 6.5 percent.
(2) For the tax year of the taxpayer beginning on or after
January 1, 2009, and before January 1, 2010, notwithstanding ORS
317.061, any gain that is treated as net capital gain subject to
tax under ORS 317.061 shall be taxed at the rate of 5.5
percent. + }
SECTION 8. ORS 317.061 is amended to read:
317.061. { + (1) + } The rate of the tax imposed by and
computed under this chapter is six and six-tenths percent.
{ + (2) Notwithstanding subsection (1) of this section, any
gain that is treated as net capital gain for federal tax purposes
and that is included in taxable income in this state shall be
taxed at the rate of five percent. + }
SECTION 9. ORS 318.020 is amended to read:
318.020. (1) There hereby is imposed upon every corporation for
each taxable year a tax at the rate provided in ORS 317.061 upon
its Oregon taxable income derived from sources within this state,
other than income for which the corporation is subject to the tax
imposed by the Corporation Excise Tax Law of 1929 (ORS chapter
317) according to or measured by its Oregon taxable income.
(2) Income from sources within this state includes income from
tangible or intangible property located or having a situs in this
state and income from any activities carried on in this state,
regardless of whether carried on in intrastate, interstate or
foreign commerce.
{ - (3) Income that constitutes net long-term capital gain
described in ORS 317.063 shall be taxed at the rate imposed under
ORS 317.063. - }
SECTION 10. { + The amendments to ORS 317.061 and 318.020 by
sections 8 and 9 of this 2005 Act apply to tax years beginning on
or after January 1, 2010. + }
SECTION 11. { + ORS 316.045 and 317.063 do not apply to tax
years beginning on or after January 1, 2010. + }
SECTION 12. { + ORS 316.045 and 317.063 are repealed on
January 2, 2012. + }
SECTION 13. { + Nothing in the repeal of ORS 316.045 and
317.063 by section 12 of this 2005 Act affects the treatment of
long-term capital gain that meets the requirements of ORS 316.045
or 317.063 in a tax year beginning before January 1, 2010. + }
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