74th OREGON LEGISLATIVE ASSEMBLY--2007 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 1691
 
                           B-Engrossed
 
                         House Bill 2031
                  Ordered by the House March 8
      Including House Amendments dated March 6 and March 8
 
Ordered printed by the Speaker pursuant to House Rule 12.00A (5).
  Presession filed (at the request of House Interim Committee on
  Revenue for Oregon Association of County Tax Collectors)
 
 
                             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.
 
    { - Provides that first $2 million of adjusted taxable estate
is exempt from inheritance tax and that inheritance tax return is
not required unless value of gross estate is more than $2
million. - }
    { - Establishes graduated minimum tax schedule for C
corporations based on amount of Oregon sales. Provides tax credit
to certain C corporations with Oregon sales of less than $5
million for tax year that begins on or after January 1, 2007, and
before January 1, 2008. - }
   { +  Allows tax credit against corporate taxes otherwise due
to C corporation taxpayer with Oregon sales of less than $5
million for tax year beginning on or after January 1, 2007, and
before January 1, 2008.
  Becomes operative only if C-engrossed House Bill 2707 relating
to Oregon Rainy Day Fund passes both houses of Legislative
Assembly and is signed by Governor on or before March 16,
2007. + }
  Takes effect on 91st day following adjournment sine die.
 
                        A BILL FOR AN ACT
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. + }
                         ----------