74th OREGON LEGISLATIVE ASSEMBLY--2007 Regular Session
SA to HB 2235 (A to RC)
LC 711/HB 2235-2
SENATE AMENDMENTS TO
HOUSE BILL 2235
(INCLUDING AMENDMENTS TO RESOLVE CONFLICTS)
By COMMITTEE ON FINANCE AND REVENUE
May 30
On page 1 of the printed bill, line 3, after '316.012, ' insert
'316.695,'.
On page 3, after line 33, insert:
' { + SECTION 4a. + } { + If Senate Bill 83 becomes law,
section 4 of this 2007 Act (amending ORS 307.130) is repealed and
ORS 307.130, as amended by section 75, chapter 70, Oregon Laws
2007 (Enrolled Senate Bill 83), is amended to read: + }
' 307.130. (1) As used in this section:
' (a) 'Art museum' means a nonprofit corporation organized to
display works of art to the public.
' (b) 'Internal Revenue Code' means the federal Internal
Revenue Code as amended and in effect on December 31,
{ - 2004 - } { + 2006 + }.
' (c) 'Nonprofit corporation' means a corporation that:
' (A) Is organized not for profit, pursuant to ORS chapter 65
or any predecessor of ORS chapter 65; or
' (B) Is organized and operated as described under section
501(c) of the Internal Revenue Code.
' (d) 'Volunteer fire department' means a nonprofit corporation
organized to provide fire protection services in a specific
response area.
' (2) Upon compliance with ORS 307.162, the following property
owned or being purchased by art museums, volunteer fire
departments, or incorporated literary, benevolent, charitable and
scientific institutions shall be exempt from taxation:
' (a) Except as provided in ORS 748.414, only such real or
personal property, or proportion thereof, as is actually and
exclusively occupied or used in the literary, benevolent,
charitable or scientific work carried on by such institutions.
' (b) Parking lots used for parking or any other use as long as
that parking or other use is permitted without charge for no
fewer than 355 days during the tax year.
' (c) All real or personal property of a rehabilitation
facility or any retail outlet thereof, including inventory. As
used in this subsection, 'rehabilitation facility' means either
those facilities defined in ORS 344.710 or facilities which
provide individuals who have physical, mental or emotional
disabilities with occupational rehabilitation activities of an
educational or therapeutic nature, even if remuneration is
received by the individual.
' (d) All real and personal property of a retail store dealing
exclusively in donated inventory, where the inventory is
distributed without cost as part of a welfare program or where
the proceeds of the sale of any inventory sold to the general
public are used to support a welfare program. As used in this
subsection, ' welfare program' means the providing of food,
shelter, clothing or health care, including dental service, to
needy persons without charge.
' (e) All real and personal property of a retail store if:
' (A) The retail store deals primarily and on a regular basis
in donated and consigned inventory;
' (B) The individuals who operate the retail store are all
individuals who work as volunteers; and
' (C) The inventory is either distributed without charge as
part of a welfare program, or sold to the general public and the
sales proceeds used exclusively to support a welfare program. As
used in this paragraph, 'primarily' means at least one-half of
the inventory.
' (f) The real and personal property of an art museum that is
used in conjunction with the public display of works of art or
used to educate the public about art, but not including any
portion of the art museum's real or personal property that is
used to sell, or hold out for sale, works of art, reproductions
of works of art or other items to be sold to the public.
' (g) All real and personal property of a volunteer fire
department that is used in conjunction with services and
activities for providing fire protection to all residents within
a fire response area.
' (3) An art museum or institution shall not be deprived of an
exemption under this section solely because its primary source of
funding is from one or more governmental entities.
' (4) An institution shall not be deprived of an exemption
under this section because its purpose or the use of its property
is not limited to relieving pain, alleviating disease or removing
constraints.'.
On page 13, after line 36, insert:
' { + SECTION 13. + } ORS 316.695 is amended to read:
' 316.695. (1) In addition to the modifications to federal
taxable income contained in this chapter, there shall be added to
or subtracted from federal taxable income:
' (a) If, in computing federal income tax for a taxable year,
the taxpayer deducted itemized deductions, as defined in section
63(d) of the Internal Revenue Code, the taxpayer shall add the
amount of itemized deductions deducted (the itemized deductions
less an amount, if any, by which the itemized deductions are
reduced under section 68 of the Internal Revenue Code).
' (b) If, in computing federal income tax for a taxable year,
the taxpayer deducted the standard deduction, as defined in
section 63(c) of the Internal Revenue Code, the taxpayer shall
add the amount of the standard deduction deducted.
' (c)(A) From federal taxable income there shall be subtracted
the larger of (i) the taxpayer's itemized deductions or (ii) a
standard deduction. Except as provided in subsection (8) of this
section, for purposes of this subparagraph, 'standard deduction'
means the sum of the basic standard deduction and the additional
standard deduction.
' (B) For purposes of subparagraph (A) of this paragraph, the
basic standard deduction is:
' (i) $3,280, in the case of joint return filers or a surviving
spouse;
' (ii) $1,640, in the case of an individual who is not a
married individual and is not a surviving spouse;
' (iii) $1,640, in the case of a married individual who files a
separate return; or
' (iv) $2,640, in the case of a head of household.
' (C)(i) For purposes of subparagraph (A) of this paragraph for
tax years beginning on or after January 1, 2003, the Department
of Revenue shall annually recompute the basic standard deduction
for each category of return filer listed under subparagraph (B)
of this paragraph. The basic standard deduction shall be computed
by dividing the { - average - } { + monthly averaged + } U.S.
City Average Consumer Price Index for the { - second quarter of
the current - } { + 12 consecutive months ending August 31 of
the prior + } calendar year by the average U.S. City Average
Consumer Price Index for the second quarter of 2002, then
multiplying that quotient by the amount listed under subparagraph
(B) of this paragraph for each category of return filer.
' (ii) If any change in the maximum household income determined
under this subparagraph is not a multiple of $5, the increase
shall be rounded to the next lower multiple of $5.
' (iii) As used in this subparagraph, '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.
' (D) For purposes of subparagraph (A) of this paragraph, the
additional standard deduction is the sum of each additional
amount to which the taxpayer is entitled under subsection (7) of
this section.
' (E) As used in subparagraph (B) of this paragraph, '
surviving spouse' and 'head of household' have the meaning given
those terms in section 2 of the Internal Revenue Code.
' (F) In the case of the following, the standard deduction
referred to in subparagraph (A) of this paragraph shall be zero:
' (i) A husband or wife filing a separate return where the
other spouse has claimed itemized deductions under subparagraph
(A) of this paragraph;
' (ii) A nonresident alien individual;
' (iii) An individual making a return for a period of less than
12 months on account of a change in his or her annual accounting
period;
' (iv) An estate or trust;
' (v) A common trust fund; or
' (vi) A partnership.
' (d) For the purposes of paragraph (c)(A) of this subsection,
the taxpayer's itemized deductions are the sum of:
' (A) The taxpayer's itemized deductions as defined in section
63(d) of the Internal Revenue Code (reduced, if applicable, as
described under section 68 of the Internal Revenue Code) minus
the deduction for Oregon income tax (reduced, if applicable, by
the proportion that the reduction in federal itemized deductions
resulting from section 68 of the Internal Revenue Code bears to
the amount of federal itemized deductions as defined for purposes
of section 68 of the Internal Revenue Code); and
' (B) The amount that may be taken into account under section
213(a) of the Internal Revenue Code, not to exceed seven and
one-half percent of the federal adjusted gross income of the
taxpayer, if the taxpayer has attained the following age before
the close of the taxable year, or, in the case of a joint return,
if either taxpayer has attained the following age before the
close of the taxable year:
' (i) For taxable years beginning on or after January 1, 1991,
and before January 1, 1993, a taxpayer must attain 58 years of
age before the close of the taxable year.
' (ii) For taxable years beginning on or after January 1, 1993,
and before January 1, 1995, a taxpayer must attain 59 years of
age before the close of the taxable year.
' (iii) For taxable years beginning on or after January 1,
1995, and before January 1, 1997, a taxpayer must attain 60 years
of age before the close of the taxable year.
' (iv) For taxable years beginning on or after January 1, 1997,
and before January 1, 1999, a taxpayer must attain 61 years of
age before the close of the taxable year.
' (v) For taxable years beginning on or after January 1, 1999,
a taxpayer must attain 62 years of age before the close of the
taxable year.
' (2)(a) There shall be subtracted from federal taxable income
any portion of the distribution of a pension, profit-sharing,
stock bonus or other retirement plan, representing that portion
of contributions which were taxed by the State of Oregon but not
taxed by the federal government under laws in effect for tax
years beginning prior to January 1, 1969, or for any subsequent
year in which the amount that was contributed to the plan under
the Internal Revenue Code was greater than the amount allowed
under this chapter.
' (b) Interest or other earnings on any excess contributions of
a pension, profit-sharing, stock bonus or other retirement plan
not permitted to be deducted under paragraph (a) of this
subsection shall not be added to federal taxable income in the
year earned by the plan and shall not be subtracted from federal
taxable income in the year received by the taxpayer.
' (3)(a) Except as provided in paragraph (b) of this subsection
and subsection (4) of this section, there shall be added to
federal taxable income the amount of any federal income taxes in
excess of $5,500, accrued by the taxpayer during the taxable year
as described in ORS 316.685, less the amount of any refund of
federal taxes previously accrued for which a tax benefit was
received.
' (b) In the case of a husband and wife filing separate tax
returns, the amount added shall be in the amount of any federal
income taxes in excess of $2,750, less the amount of any refund
of federal taxes previously accrued for which a tax benefit was
received.
' (c)(A) For a calendar year beginning on or after January 1,
2008, the Department of Revenue shall make a cost-of-living
adjustment to the federal income tax threshold amount described
in paragraphs (a) and (b) of this subsection.
' (B) The cost-of-living adjustment for a calendar year is the
percentage 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 period beginning September 1, 2005, and ending August 31,
2006.
' (C) As used in this paragraph, '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.
' (D) If any adjustment determined under subparagraph (B) of
this paragraph is not a multiple of $50, the adjustment shall be
rounded to the next lower multiple of $50.
' (E) The adjustment shall apply to all tax years beginning in
the calendar year for which the adjustment is made.
' (4)(a) In addition to the adjustments required by ORS
316.130, a full-year nonresident individual shall add to taxable
income a proportion of any accrued federal income taxes as
computed under ORS 316.685 in excess of $5,500 in the proportion
provided in ORS 316.117.
' (b) In the case of a husband and wife filing separate tax
returns, the amount added under this subsection shall be computed
in a manner consistent with the computation of the amount to be
added in the case of a husband and wife filing separate returns
under subsection (3) of this section. The method of computation
shall be determined by the Department of Revenue by rule.
' (5) Subsections (3)(b) and (4)(b) of this section shall not
apply to married individuals living apart as defined in section
7703(b) of the Internal Revenue Code.
' (6)(a) For tax years beginning on or after January 1, 1981,
and prior to January 1, 1983, income or loss taken into account
in determining federal taxable income by a shareholder of an S
corporation pursuant to sections 1373 to 1375 of the Internal
Revenue Code shall be adjusted for purposes of determining Oregon
taxable income, to the extent that as income or loss of the S
corporation, they were required to be adjusted under the
provisions of ORS chapter 317.
' (b) For tax years beginning on or after January 1, 1983,
items of income, loss or deduction taken into account in
determining federal taxable income by a shareholder of an S
corporation pursuant to sections 1366 to 1368 of the Internal
Revenue Code shall be adjusted for purposes of determining Oregon
taxable income, to the extent that as items of income, loss or
deduction of the shareholder the items are required to be
adjusted under the provisions of this chapter.
' (c) The tax years referred to in paragraphs (a) and (b) of
this subsection are those of the S corporation.
' (d) As used in paragraph (a) of this subsection, an S
corporation refers to an electing small business corporation.
' (7)(a) The taxpayer shall be entitled to an additional
amount, as referred to in subsection (1)(c)(A) and (D) of this
section, of $1,000:
' (A) For himself or herself if he or she has attained age 65
before the close of his or her taxable year; and
' (B) For the spouse of the taxpayer if the spouse has attained
age 65 before the close of the taxable year and an additional
exemption is allowable to the taxpayer for such spouse for
federal income tax purposes under section 151(b) of the Internal
Revenue Code.
' (b) The taxpayer shall be entitled to an additional amount,
as referred to in subsection (1)(c)(A) and (D) of this section,
of $1,000:
' (A) For himself or herself if he or she is blind at the close
of the taxable year; and
' (B) For the spouse of the taxpayer if the spouse is blind as
of the close of the taxable year and an additional exemption is
allowable to the taxpayer for such spouse for federal income tax
purposes under section 151(b) of the Internal Revenue Code. For
purposes of this subparagraph, if the spouse dies during the
taxable year, the determination of whether such spouse is blind
shall be made immediately prior to death.
' (c) In the case of an individual who is not married and is
not a surviving spouse, paragraphs (a) and (b) of this subsection
shall be applied by substituting '$1,200' for '$1,000. '
' (d) For purposes of this subsection, an individual is blind
only if his or her central visual acuity does not exceed 20/200
in the better eye with correcting lenses, or if his or her visual
acuity is greater than 20/200 but is accompanied by a limitation
in the fields of vision such that the widest diameter of the
visual field subtends an angle no greater than 20 degrees.
' (8) In the case of an individual with respect to whom a
deduction under section 151 of the Internal Revenue Code is
allowable for federal income tax purposes to another taxpayer for
a taxable year beginning in the calendar year in which the
individual's taxable year begins, the basic standard deduction
(referred to in subsection (1)(c)(B) of this section) applicable
to such individual for such individual's taxable year shall equal
the lesser of:
' (a) The amount allowed to the individual under section
63(c)(5) of the Internal Revenue Code for federal income tax
purposes for the tax year for which the deduction is being
claimed; or
' (b) The amount determined under subsection (1)(c)(B) of this
section.'.
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