Chapter 605 Oregon Laws 2007

AN ACT

HB 2026

Relating to taxation of military personnel; creating new provisions; amending ORS 316.791; and prescribing an effective date.

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

SECTION 1. ORS 316.791 is amended to read:

316.791. Compensation, including death gratuity and other qualified military benefits described in section 134 of the Internal Revenue Code, received by a member of the Oregon National Guard, the military reserve forces or the organized militia of any other state or territory of the United States[, that is attributable to service performed after a change in status from Title 32 to Title 10 of the United States Code, and before the termination of Title 10 status,] is exempt from taxation under this chapter, if:

(1) The compensation is attributable to military service performed when the taxpayer is away from the home of the taxpayer overnight;

(2) The taxpayer is required to be away from home overnight in order to perform the service described in subsection (1) of this section; and

(3) The service described in subsection (1) of this section is of a duration of at least three consecutive weeks, although the consecutive weeks of service need not be in the same tax year.

SECTION 2. (1) Notwithstanding ORS 305.270 or 314.415 or other law limiting the period of time within which a refund of personal income tax may be made, a taxpayer may file a claim for refund of tax paid for a tax year beginning on or after January 1, 2001, and before January 1, 2005, if the claim for refund is based on the inclusion within gross income of compensation described in ORS 316.791, for military service performed on or after September 11, 2001.

(2) The Department of Revenue shall refund amounts due for a claim described in subsection (1) of this section if the claim is allowable and the claim has been filed with the department before July 1, 2008.

SECTION 3. Section 2 of this 2007 Act is repealed on January 2, 2010.

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 June 26, 2007

Filed in the office of Secretary of State June 27, 2007

Effective date September 27, 2007

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