74th OREGON LEGISLATIVE ASSEMBLY--2007 Regular Session
HA to HB 2031
LC 1691/HB 2031-1
HOUSE AMENDMENTS TO
HOUSE BILL 2031
By COMMITTEE ON REVENUE
March 6
In line 2 of the printed bill, after the semicolon delete the
rest of the line and insert 'creating new provisions; amending
ORS 118.010, 118.160 and 317.090; prescribing an effective date;
and providing for revenue raising that requires approval by a
three-fifths majority.'.
Delete lines 4 through 16 and insert:
' { + SECTION 1. + } ORS 118.010 is amended to read:
' 118.010. (1) A tax is imposed upon a transfer of property and
any interest therein, within the jurisdiction of the state,
whether belonging to the inhabitants of this state or not, which
passes to or vests in any person or persons, or any body or
bodies politic or corporate, in trust or otherwise, or by reason
whereof any person or body politic or corporate shall become
beneficially entitled, in possession or expectation, to any
property or interest therein or income thereof.
' (2) { + (a) + } The tax imposed under this section shall
equal the maximum amount of the state death tax credit allowable
against the federal estate tax under section 2011 of the Internal
Revenue Code.
' { + (b) Notwithstanding paragraph (a) of this subsection,
the tax may not be imposed on the first $2 million of the
adjusted taxable estate. + }
' (3) In the case of a resident decedent owning property
outside of the jurisdiction of this state at the time of death,
the tax imposed under this section shall be the amount determined
under subsection (2) of this section multiplied by a ratio. The
numerator of the ratio shall be the sum of the appraised value of
the decedent's real property located in Oregon, tangible personal
property located in Oregon and intangible personal property
located both in and outside of Oregon. The denominator of the
ratio shall be the total appraised value of the decedent's gross
estate.
' (4)(a) In the case of a nonresident decedent owning property
within the jurisdiction of this state at the time of death, the
tax imposed under this section shall be the amount determined
under subsection (2) of this section multiplied by a ratio. The
numerator of the ratio shall be the sum of the appraised value of
the decedent's real property located in Oregon, tangible personal
property located in Oregon and intangible personal property
located in Oregon. The denominator shall be the total appraised
value of the decedent's gross estate.
' (b) Intangible personal property of a nonresident decedent
shall not be included in the numerator of the ratio used to
determine the tax under this subsection if a similar exemption is
made by the laws of the state or country of the decedent's
residence in favor of residents of this state.
' (5) In the case of decedents dying before January 1, 2003, if
federal estate tax credits other than the state death tax credit
result in no federal estate tax, no tax shall be imposed under
this section.
' (6) Payment, in whole or in part, of inheritance and estate
taxes from funds of an estate or trust on any benefit subject to
tax under ORS 118.005 to 118.840 is not to be considered as a
further taxable benefit, when such payment is directed by
decedent's will or by a trust agreement.
' (7) If the federal taxable estate is determined by making an
election under section 2032 or 2056 of the Internal Revenue Code
or another provision of the Internal Revenue Code, or if a
federal estate tax return is not required under the Internal
Revenue Code, the Department of Revenue may adopt rules providing
for a separate election for state inheritance tax purposes.
' { + SECTION 2. + } ORS 118.160 is amended to read:
' 118.160. (1) Except as provided in subsection (2) of this
section:
' (a) An inheritance tax return is not required with respect to
the estates of decedents dying on or after January 1, 1987, and
before January 1, 2003, unless a federal estate tax return is
required to be filed; and
' (b) An inheritance tax return is not required with respect to
the estates of decedents dying on or after:
' (A) January 1, 2003, and before January 1, 2004, unless the
value of the gross estate is $700,000 or more;
' (B) January 1, 2004, and before January 1, 2005, unless the
value of the gross estate is $850,000 or more;
' (C) January 1, 2005, and before January 1, 2006, unless the
value of the gross estate is $950,000 or more; { - or - }
' (D) January 1, 2006, { + and before January 1, 2007, + }
unless the value of the gross estate is $1 million or more
{ - . - } { + ; or
' (E) January 1, 2007, unless the value of the gross estate is
more than $2 million. + }
' (2) In every estate, whether or not subject to administration
and whether or not a federal estate tax return is required to be
filed, the executor shall at such times and in such manner as
required by rules of the Department of Revenue, file with the
department a return in a form provided by the department setting
forth a list and description of all transfers of property, in
trust or otherwise, made by the decedent in the lifetime of the
decedent as a division or distribution of the estate of the
decedent made within the three-year period ending on the date of
death or intended to take effect at or after death and any
further data that the department requires to determine
inheritance tax under this chapter.
' { + SECTION 3. + } { + The amendments to ORS 118.010 and
118.160 by sections 1 and 2 of this 2007 Act apply to decedents
who die on or after January 1, 2007. + }
' { + SECTION 4. + } ORS 317.090 is amended to read:
' 317.090. { + (1) + } Each taxpayer named in ORS 317.056 or
317.070 shall pay annually to the state, for the privilege of
carrying on or doing business by it within this state, a minimum
tax of $10 { - . The minimum tax shall not be apportionable
(except in the case of a change of accounting periods), but shall
be payable in full for any part of the year during which a
corporation is subject to tax. - } { + , except as provided in
subsection (2) of this section. + }
' { + (2) Each taxpayer that is subject to the provisions of
subtitle A, chapter 1, subchapter C of the Internal Revenue Code
for the purposes of income taxation shall pay annually to the
state, for the privilege of doing business within this state, a
minimum tax as follows:
' (a) If the taxpayer has Oregon sales for the tax year of less
than $50,000, $25.
' (b) If the taxpayer has Oregon sales for the tax year of
$50,000 or more, but less than $100,000, $75.
' (c) If the taxpayer has Oregon sales for the tax year of
$100,000 or more, but less than $250,000, $250.
' (d) If the taxpayer has Oregon sales for the tax year of
$250,000 or more, but less than $500,000, $500.
' (e) If the taxpayer has Oregon sales for the tax year of
$500,000 or more, but less than $1 million, $1,000.
' (f) If the taxpayer has Oregon sales for the tax year of $1
million or more, but less than $5 million, $2,500.
' (g) If the taxpayer has Oregon sales for the tax year of $5
million or more, but less than $10 million, $10,000.
' (h) If the taxpayer has Oregon sales for the tax year of $10
million or more, but less than $25 million, $25,000.
' (i) If the taxpayer has Oregon sales for the tax year of more
than $25 million, $50,000.
' (3) 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.
' (4) The minimum tax is not apportionable, except in the case
of a change of accounting periods, but shall be payable in full
for any part of the year during which a corporation is subject to
tax. + }
' { + SECTION 5. + } { + The amendments to ORS 317.090 by
section 4 of this 2007 Act apply to tax years beginning on or
after January 1, 2007. + }
' { + SECTION 6. + } { + (1) For a tax year that begins on
or after January 1, 2007, and before January 1, 2008, a taxpayer
that is subject to the provisions of subtitle A, chapter 1,
subchapter C of the Internal Revenue Code for the purposes of
income taxation as of the effective date of this 2007 Act 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' has the meaning
given that term in ORS 317.090. + }
' { + SECTION 7. + } { + Section 6 of this 2007 Act is added
to and made a part of ORS chapter 317. + }
' { + SECTION 8. + } { + 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. + } ' .
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