Chapter 4 Oregon Laws 2007

AN ACT

HB 2031

Relating to taxation; and prescribing an effective date.

Be It Enacted by the People of the State of Oregon:

SECTION 1. (1) For a tax year that begins on or after January 1, 2007, and before January 1, 2008, a taxpayer that is a C corporation as defined in ORS 314.730 and that has Oregon sales for the tax year of less than $5 million shall be allowed a credit against taxes that would otherwise be due under ORS chapter 317 or 318 equal to 67 percent of those taxes.

(2) As used in this section, “Oregon sales” means:

(a) If the taxpayer apportions business income under ORS 314.650 to 314.665 for Oregon income tax purposes, the total sales of the taxpayer in this state during the tax year, as determined for purposes of ORS 314.665;

(b) If the taxpayer does not apportion business income for Oregon income tax purposes, the total sales in this state during the tax year that the taxpayer would have had, as determined for purposes of ORS 314.665, if the taxpayer were required to apportion business income for Oregon income tax purposes; or

(c) If the taxpayer apportions business income using a method different from that prescribed by ORS 314.650 to 314.665, Oregon sales as defined by the Department of Revenue by rule.

SECTION 2. Section 1 of this 2007 Act is added to and made a part of ORS chapter 317.

SECTION 3. Sections 1 and 2 of this 2007 Act do not become operative unless C-engrossed House Bill 2707 is passed by both houses of the Legislative Assembly and signed by the Governor on or before March 16, 2007.

SECTION 4. This 2007 Act takes effect on the 91st day after the date on which the regular session of the Seventy-fourth Legislative Assembly adjourns sine die.

Approved by the Governor March 16, 2007

Filed in the office of Secretary of State March 16, 2007

Effective date September 27, 2007

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