74th OREGON LEGISLATIVE ASSEMBLY--2007 Regular Session
Enrolled
House Bill 2235
Ordered printed by the Speaker pursuant to House Rule 12.00A (5).
Presession filed (at the request of Governor Theodore R.
Kulongoski for Department of Revenue)
CHAPTER ................
AN ACT
Relating to connection to federal tax law; creating new
provisions; amending ORS 305.230, 305.494, 305.690, 307.130,
307.147, 310.140, 310.630, 310.800, 311.689, 314.011, 315.004,
316.012, 316.695, 317.010, 657.010, 657.115, 657.117, 657.195,
657.321 and 657.325; and prescribing an effective date.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 305.230 is amended to read:
305.230. (1) Notwithstanding ORS 9.320:
(a) Any person who is qualified to practice law or public
accountancy in this state, any person who has been granted active
enrollment to practice before the Internal Revenue Service and
who is qualified to prepare tax returns in this state or any
person who is the authorized employee of a taxpayer and is
regularly employed by the taxpayer in tax matters may represent
the taxpayer before a tax court magistrate or the Department of
Revenue in any conference or proceeding with respect to the
administration of any tax.
(b) Any person who is licensed by the State Board of Tax
Practitioners or who is exempt from such licensing requirement as
provided for and limited by ORS 673.610 may represent a taxpayer
before a tax court magistrate or the department in any conference
or proceeding with respect to the administration of any tax on or
measured by net income.
(c) Any shareholder of an S corporation, as defined in section
1361 of the Internal Revenue Code, as amended and in effect on
December 31, { - 2004 - } { + 2006 + }, may represent the
corporation in any proceeding before a tax court magistrate or
the department in the same manner as if the shareholder were a
partner and the S corporation were a partnership. The S
corporation must designate in writing a tax matters shareholder
authorized to represent the S corporation.
(d) Any person who is licensed as a real estate broker or
principal real estate broker under ORS 696.022 or is a state
certified appraiser or state licensed appraiser under ORS 674.310
or is a registered appraiser under ORS 308.010 may represent a
taxpayer before a tax court magistrate or the department in any
conference or proceeding with respect to the administration of
any ad valorem property tax.
(e) A general partner who has been designated by members of a
partnership as their tax matters partner under ORS 305.242 may
Enrolled House Bill 2235 (HB 2235-A) Page 1
represent those partners in any conference or proceeding with
respect to the administration of any tax on or measured by net
income.
(f) Any person authorized under rules adopted by the department
may represent a taxpayer before the department in any conference
or proceeding with respect to any tax. Rules adopted under this
paragraph, to the extent feasible, shall be consistent with
federal law that governs representation before the Internal
Revenue Service, as federal law is amended and in effect on
December 31, { - 2004 - } { + 2006 + }.
(g) Any person authorized under rules adopted by the tax court
may represent a taxpayer in a proceeding before a tax court
magistrate.
(2) A person may not be recognized as representing a taxpayer
pursuant to this section unless there is first filed with the
magistrate or department a written authorization, or unless it
appears to the satisfaction of the magistrate or department that
the representative does in fact have authority to represent the
taxpayer. A person recognized as an authorized representative
under rules or procedures adopted by the tax court shall be
considered an authorized representative by the department.
(3) A taxpayer represented by someone other than an attorney is
bound by all things done by the authorized representative, and
may not thereafter claim any proceeding was legally defective
because the taxpayer was not represented by an attorney.
(4) Prior to the holding of a conference or proceeding before
the tax court magistrate or department, written notice shall be
given by the magistrate or department to the taxpayer of the
provisions of subsection (3) of this section.
SECTION 2. ORS 305.494 is amended to read:
305.494. Notwithstanding ORS 9.320, any shareholder of an S
corporation as defined in section 1361 of the Internal Revenue
Code, as amended and in effect on December 31, { - 2004 - }
{ + 2006 + }, may represent the corporation in any proceeding
before the Oregon Tax Court in the same manner as if the
shareholder were a partner and the S corporation were a
partnership.
SECTION 3. ORS 305.690 is amended to read:
305.690. As used in ORS 305.690 to 305.753, unless the context
otherwise requires:
(1) 'Biennial years' means the two income tax years of
individual taxpayers that begin in the two calendar years
immediately following the calendar year in which a list is
certified under ORS 305.715.
(2) 'Commission' means the Oregon Charitable Checkoff
Commission.
(3) 'Department' means the Department of Revenue.
(4) 'Internal Revenue Code' means the federal Internal Revenue
Code as amended and in effect on December 31, { - 2004 - }
{ + 2006 + }.
SECTION 4. ORS 307.130 is amended to read:
307.130. (1) 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.
Enrolled House Bill 2235 (HB 2235-A) Page 2
(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
physically, mentally or emotionally disabled individuals 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.
(2) 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.
(3) 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.
(4) 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.
Enrolled House Bill 2235 (HB 2235-A) Page 3
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
Enrolled House Bill 2235 (HB 2235-A) Page 4
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.
SECTION 5. ORS 307.147 is amended to read:
307.147. (1) For purposes of this section:
(a) 'Internal Revenue Code' means the federal Internal Revenue
Code as amended and in effect on December 31, { - 2004 - }
{ + 2006 + }.
(b) '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.
(c) 'Senior services center' means property that:
(A) Is owned or being purchased by a nonprofit corporation;
(B) Is actually and exclusively used to provide services and
activities (including parking) primarily to or for persons over
50 years of age;
(C) Is open generally to all persons over 50 years of age;
(D) Is not used primarily for fund-raising activities; and
(E) Is not a residential or dwelling place.
(2) Upon compliance with ORS 307.162, a senior services center
is exempt from ad valorem property taxation.
SECTION 6. ORS 310.140 is amended to read:
310.140. The Legislative Assembly finds that section 11b,
Article XI of the Oregon Constitution, was drafted by citizens
and placed before the voters of the State of Oregon by initiative
petition. Section 11b, Article XI of the Oregon Constitution,
uses terms that do not have established legal meanings and
require definition by the Legislative Assembly. Section 11b,
Article XI of the Oregon Constitution, was amended by section 11
(11), Article XI of the Oregon Constitution. This section is
intended to interpret the terms of section 11b, Article XI of the
Oregon Constitution, as originally adopted and as amended by
section 11 (11), Article XI of the Oregon Constitution,
consistent with the intent of the people in adopting these
provisions, so that the provisions of section 11b, Article XI of
the Oregon Constitution, may be given effect uniformly throughout
the State of Oregon, with minimal confusion and misunderstanding
by citizens and affected units of government. As used in the
revenue and tax laws of this state, and for purposes of section
11b, Article XI of the Oregon Constitution:
(1) 'Actual cost' means all direct or indirect costs incurred
by a government unit in order to deliver goods or services or to
undertake a capital construction project. The ' actual cost' of
providing goods or services to a property or property owner
includes the average cost or an allocated portion of the total
amount of the actual cost of making a good or service available
to the property or property owner, whether stated as a minimum,
fixed or variable amount. 'Actual cost' includes, but is not
Enrolled House Bill 2235 (HB 2235-A) Page 5
limited to, the costs of labor, materials, supplies, equipment
rental, property acquisition, permits, engineering, financing,
reasonable program delinquencies, return on investment, required
fees, insurance, administration, accounting, depreciation,
amortization, operation, maintenance, repair or replacement and
debt service, including debt service payments or payments into
reserve accounts for debt service and payment of amounts
necessary to meet debt service coverage requirements.
(2) 'Assessment for local improvement' means any tax, fee,
charge or assessment that does not exceed the actual cost
incurred by a unit of government for design, construction and
financing of a local improvement.
(3) 'Bonded indebtedness' means any formally executed written
agreement representing a promise by a unit of government to pay
to another a specified sum of money, at a specified date or dates
at least one year in the future.
(4) 'Capital construction':
(a) For bonded indebtedness issued prior to December 5, 1996,
and for the proceeds of any bonded indebtedness approved by
electors prior to December 5, 1996, that were spent or
contractually obligated to be spent prior to June 20, 1997, means
the construction, modification, replacement, repair, remodeling
or renovation of a structure, or addition to a structure, that is
expected to have a useful life of more than one year, and
includes, but is not limited to:
(A) Acquisition of land, or a legal interest in land, in
conjunction with the capital construction of a structure.
(B) Acquisition, installation of machinery or equipment,
furnishings or materials that will become an integral part of a
structure.
(C) Activities related to the capital construction, including
planning, design, authorizing, issuing, carrying or repaying
interim or permanent financing, research, land use and
environmental impact studies, acquisition of permits or licenses
or other services connected with the construction.
(D) Acquisition of existing structures, or legal interests in
structures, in conjunction with the capital construction.
(b) For bonded indebtedness issued on or after December 5,
1996, except for the proceeds of any bonded indebtedness approved
by electors prior to December 5, 1996, that were spent or
contractually obligated to be spent before June 20, 1997, has the
meaning given that term in paragraph (a) of this subsection,
except that 'capital construction':
(A) Includes public safety and law enforcement vehicles with a
projected useful life of five years or more; and
(B) Does not include:
(i) Maintenance and repairs, the need for which could be
reasonably anticipated;
(ii) Supplies and equipment that are not intrinsic to the
structure; or
(iii) Furnishings, unless the furnishings are acquired in
connection with the acquisition, construction, remodeling or
renovation of a structure, or the repair of a structure that is
required because of damage or destruction of the structure.
(5) 'Capital improvements':
(a) For bonded indebtedness issued prior to December 5, 1996,
and for the proceeds of any bonded indebtedness approved by
electors before December 5, 1996, that were spent or
contractually obligated to be spent before June 20, 1997, means
land, structures, facilities, as that term is defined in ORS
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288.805, machinery, equipment or furnishings having a useful life
longer than one year.
(b) For bonded indebtedness issued on or after December 5,
1996, except for the proceeds of any bonded indebtedness approved
by electors prior to December 5, 1996, that were spent or
contractually obligated to be spent before June 20, 1997, has the
meaning given that term in paragraph (a) of this subsection,
except that 'capital improvements':
(A) Includes public safety and law enforcement vehicles with a
projected useful life of five years or more; and
(B) Does not include:
(i) Maintenance and repairs, the need for which could be
reasonably anticipated;
(ii) Supplies and equipment that are not intrinsic to the
structure; or
(iii) Furnishings, unless the furnishings are acquired in
connection with the acquisition, construction, remodeling or
renovation of a structure, or the repair of a structure that is
required because of damage or destruction of the structure.
(6) 'Direct consequence of ownership' means that the obligation
of the owner of property to pay a tax arises solely because that
person is the owner of the property, and the obligation to pay
the tax arises as an immediate and necessary result of that
ownership without respect to any other intervening transaction,
condition or event.
(7)(a) 'Exempt bonded indebtedness' means:
(A) Bonded indebtedness authorized by a specific provision of
the Oregon Constitution;
(B) Bonded indebtedness incurred or to be incurred for capital
construction or capital improvements that was issued as a general
obligation of the issuing governmental unit on or before November
6, 1990;
(C) Bonded indebtedness incurred or to be incurred for capital
construction or capital improvements that was issued as a general
obligation of the issuing governmental unit after November 6,
1990, with the approval of the electors of the issuing
governmental unit; or
(D) Bonded indebtedness incurred or to be incurred for capital
construction or capital improvements, if the issuance of the
bonds is approved by voters on or after December 5, 1996, in an
election that is in compliance with the voter participation
requirements of section 11 (8), Article XI of the Oregon
Constitution.
(b) 'Exempt bonded indebtedness' includes bonded indebtedness
issued to refund or refinance any bonded indebtedness described
in paragraph (a) of this subsection.
(8)(a) 'Incurred charge' means a charge imposed by a unit of
government on property or upon a property owner that does not
exceed the actual cost of providing goods or services and that
can be controlled or avoided by the property owner because:
(A) The charge is based on the quantity of the goods or
services used, and the owner has direct control over the
quantity;
(B) The goods or services are provided only on the specific
request of the property owner; or
(C) The goods or services are provided by the government unit
only after the individual property owner has failed to meet
routine obligations of ownership of the affected property, and
such action is deemed necessary by an appropriate government unit
to enforce regulations pertaining to health or safety.
Enrolled House Bill 2235 (HB 2235-A) Page 7
(b) For purposes of this subsection, an owner of property may
control or avoid an incurred charge if the owner is capable of
taking action to affect the amount of a charge that is or will be
imposed or to avoid imposition of a charge even if the owner must
incur expense in so doing.
(c) For purposes of paragraph (a)(A) of this subsection, an
owner of property has direct control over the quantity of goods
or services if the owner of property has the ability, whether or
not that ability is exercised, to determine the quantity of goods
or services provided or to be provided.
(9)(a) 'Local improvement' means a capital construction
project, or part thereof, undertaken by a local government,
pursuant to ORS 223.387 to 223.399, or pursuant to a local
ordinance or resolution prescribing the procedure to be followed
in making local assessments for benefits from a local improvement
upon the lots that have been benefited by all or a part of the
improvement:
(A) That provides a special benefit only to specific properties
or rectifies a problem caused by specific properties;
(B) The costs of which are assessed against those properties in
a single assessment upon the completion of the project; and
(C) For which the property owner may elect to make payment of
the assessment plus appropriate interest over a period of at
least 10 years.
(b) For purposes of paragraph (a) of this subsection, the
status of a capital construction project as a local improvement
is not affected by the accrual of a general benefit to property
other than the property receiving the special benefit.
(10) 'Maintenance and repairs, the need for which could be
reasonably anticipated':
(a) Means activities, the type of which may be deducted as an
expense under the provisions of the federal Internal Revenue
Code, as amended and in effect on December 31, { - 2004 - }
{ + 2006 + }, that keep the property in ordinarily efficient
operating condition and that do not add materially to the value
of the property nor appreciably prolong the life of the property;
(b) Does not include maintenance and repair of property that is
required by damage, destruction or defect in design, or that was
otherwise not reasonably expected at the time the property was
constructed or acquired, or the addition of material that is in
the nature of the replacement of property and that arrests the
deterioration or appreciably prolongs the useful life of the
property; and
(c) Does not include street and highway construction, overlay
and reconstruction.
(11) 'Projected useful life' means the useful life, as
reasonably estimated by the unit of government undertaking the
capital construction or capital improvement project, beginning
with the date the property was acquired, constructed or
reconstructed and based on the property's condition at the time
the property was acquired, constructed or reconstructed.
(12) 'Routine obligations of ownership' means a standard of
operation, maintenance, use or care of property established by
law, or if established by custom or common law, a standard that
is reasonable for the type of property affected.
(13) 'Single assessment' means the complete assessment process,
including preassessment, assessment or reassessment, for any
local improvement authorized by ORS 223.387 to 223.399, or a
local ordinance or resolution that provides the procedure to be
followed in making local assessments for benefits from a local
Enrolled House Bill 2235 (HB 2235-A) Page 8
improvement upon lots that have been benefited by all or part of
the improvement.
(14) 'Special benefit only to specific properties' shall have
the same meaning as 'special and peculiar benefit' as that term
is used in ORS 223.389.
(15) 'Specific request' means:
(a) An affirmative act by a property owner to seek or obtain
delivery of goods or services;
(b) An affirmative act by a property owner, the legal
consequence of which is to cause the delivery of goods or
services to the property owner; or
(c) Failure of an owner of property to change a request for
goods or services made by a prior owner of the property.
(16) 'Structure' means any temporary or permanent building or
improvement to real property of any kind that is constructed on
or attached to real property, whether above, on or beneath the
surface.
(17) 'Supplies and equipment intrinsic to a structure ' means
the supplies and equipment that are necessary to permit a
structure to perform the functions for which the structure was
constructed, or that will, upon installation, constitute fixtures
considered to be part of the real property that is comprised, in
whole or part, of the structure and land supporting the
structure.
(18) 'Tax on property' means any tax, fee, charge or assessment
imposed by any government unit upon property or upon a property
owner as a direct consequence of ownership of that property, but
does not include incurred charges or assessments for local
improvements. As used in this subsection, 'property' means real
or tangible personal property, and intangible property that is
part of a unit of real or tangible personal property to the
extent that such intangible property is subject to a tax on
property.
SECTION 7. ORS 310.630 is amended to read:
310.630. As used in ORS 310.630 to 310.706:
(1) 'Contract rent' means rental paid to the landlord for the
right to occupy a homestead, including the right to use the
personal property located therein. 'Contract rent' does not
include rental paid for the right to occupy a homestead that is
exempt from taxation, unless payments in lieu of taxes of 10
percent or more of the rental exclusive of fuel and utilities are
made on behalf of the homestead. 'Contract rent' does not include
advanced rental payments for another period and rental deposits,
whether or not expressly set out in the rental agreement, or
payments made to a nonprofit home for the elderly described in
ORS 307.375. If a landlord and tenant have not dealt with each
other at arm's length, and the Department of Revenue is satisfied
that the contract rent charged was excessive, it may adjust the
contract rent to a reasonable amount for purposes of ORS 310.630
to 310.706.
(2) 'Department' means the Department of Revenue.
(3) 'Fuel and utility payments' includes payments for heat,
lights, water, sewer and garbage made solely to secure those
commodities or services for the homestead of the taxpayer. 'Fuel
and utility payments' does not include telephone service.
(4) 'Gross rent' means contract rent paid plus the fuel and
utility payments made for the homestead in addition to the
contract rent, during the calendar year for which the claim is
filed.
Enrolled House Bill 2235 (HB 2235-A) Page 9
(5) 'Homestead' means the taxable principal dwelling located in
Oregon, either real or personal property, rented by the taxpayer,
and the taxable land area of the tax lot upon which it is built.
(6) 'Household' means the taxpayer, the spouse of the taxpayer
and all other persons residing in the homestead during any part
of the calendar year for which a claim is filed.
(7) 'Household income' means the aggregate income of the
taxpayer and the spouse of the taxpayer who reside in the
household, that was received during the calendar year for which
the claim is filed. 'Household income' includes payments received
by the taxpayer or the spouse of the taxpayer under the federal
Social Security Act for the benefit of a minor child or minor
children who are members of the household.
(8) 'Income' means 'adjusted gross income' as defined in the
federal Internal Revenue Code, as amended and in effect on
December 31, { - 2004 - } { + 2006 + }, even when the
amendments take effect or become operative after that date,
relating to the measurement of taxable income of individuals,
estates and trusts, with the following modifications:
(a) There shall be added to adjusted gross income the following
items of otherwise exempt income:
(A) The gross amount of any otherwise exempt pension less
return of investment, if any.
(B) Child support received by the taxpayer.
(C) Inheritances.
(D) Gifts and grants, the sum of which are in excess of $500
per year.
(E) Amounts received by a taxpayer or spouse of a taxpayer for
support from a parent who is not a member of the taxpayer's
household.
(F) Life insurance proceeds.
(G) Accident and health insurance proceeds, except
reimbursement of incurred medical expenses.
(H) Personal injury damages.
(I) Sick pay which is not included in federal adjusted gross
income.
(J) Strike benefits excluded from federal gross income.
(K) Worker's compensation, except for reimbursement of medical
expense.
(L) Military pay and benefits.
(M) Veteran's benefits.
(N) Payments received under the federal Social Security Act
which are excluded from federal gross income.
(O) Welfare payments, except as follows:
(i) Payments for medical care, drugs and medical supplies, if
the payments are not made directly to the welfare recipient;
(ii) In-home services authorized and approved by the Department
of Human Services; and
(iii) Direct or indirect reimbursement of expenses paid or
incurred for participation in work or training programs.
(P) Nontaxable dividends.
(Q) Nontaxable interest not included in federal adjusted gross
income.
(R) Rental allowance paid to a minister that is excluded from
federal gross income.
(S) Income from sources without the United States that is
excluded from federal gross income.
(b) Adjusted gross income shall be increased due to the
disallowance of the following deductions:
Enrolled House Bill 2235 (HB 2235-A) Page 10
(A) The amount of the net loss, in excess of $1,000, from all
dispositions of tangible or intangible properties.
(B) The amount of the net loss, in excess of $1,000, from the
operation of a farm or farms.
(C) The amount of the net loss, in excess of $1,000, from all
operations of a trade or business, profession or other activity
entered into for the production or collection of income.
(D) The amount of the net loss, in excess of $1,000, from
tangible or intangible property held for the production of rents,
royalties or other income.
(E) The amount of any net operating loss carryovers or
carrybacks included in federal adjusted gross income.
(F) The amount, in excess of $5,000, of the combined deductions
or other allowances for depreciation, amortization or depletion.
(G) The amount added or subtracted, as required within the
context of this section, for adjustments made under ORS 316.680
(2)(d) and 316.707 to 316.737.
(c) 'Income' does not include any of the following:
(A) Any governmental grant which must be used by the taxpayer
for rehabilitation of the homestead of the taxpayer.
(B) The amount of any payments made pursuant to ORS 310.630 to
310.706.
(C) Any refund of Oregon personal income taxes that were
imposed under ORS chapter 316.
(9) 'Payments for heat' means those payments made to secure the
commodities or services to be used as the principal source of
heat for the homestead of the taxpayer and includes payments for
natural gas, oil, firewood, coal, sawdust, electricity, steam or
other materials that are capable of use as a primary source of
heat for the homestead.
(10) 'Statement of gross rent' means a declaration by the
applicant, under penalties of false swearing, that the amount of
contract rent and fuel and utility payments designated is the
actual amount both incurred and paid during the year for which
elderly rental assistance is claimed.
(11) 'Taxpayer' means an individual who is a resident of this
state on December 31 of the year for which elderly rental
assistance is claimed and whose homestead, as of the same
December 31 and during all or a portion of the year ending on the
same December 31, is rented and while rented is the subject,
directly or indirectly, of property tax levied by this state or a
political subdivision or of payments made in lieu of taxes.
SECTION 8. ORS 310.800 is amended to read:
310.800. (1) As used in this section:
(a) 'Authorized representative' means a senior citizen who is
authorized by a tax-exempt entity to perform charitable or public
service on behalf of a senior citizen who has entered into a
contract under subsection (2) of this section.
(b) 'Homestead' means an owner-occupied principal residence.
(c) 'Senior citizen' means a person who is 60 years of age or
older.
(d) 'Tax-exempt entity' means an entity that is exempt from
federal income taxes under section 501 (c) of the Internal
Revenue Code, as amended and in effect on December 31,
{ - 2004 - } { + 2006 + }.
(e) 'Taxing unit' means any county, city or common or union
high school district, community college service district or
community college district within this state with authority to
impose ad valorem property taxes.
Enrolled House Bill 2235 (HB 2235-A) Page 11
(2) A tax-exempt entity may establish a property tax work-off
program pursuant to which a senior citizen may contract to
perform charitable or public service in consideration of payment
of property taxes extended against the homestead of the senior
citizen and billed to the senior citizen. For purposes of ORS
chapters 316 and 656, and notwithstanding ORS 670.600 or other
law, a senior citizen who enters into a contract under this
subsection shall be considered an independent contractor and not
a worker or employee with respect to the services performed
pursuant to the contract. Nothing in this section precludes a
taxing unit from being considered an employer, for purposes of
unemployment compensation under ORS chapter 657, of a senior
citizen who enters into a contract under this section.
(3) A taxing unit may enter into an agreement with a tax-exempt
entity that has established a property tax work-off program.
Pursuant to the agreement the taxing unit may accept, as
volunteer and public service, the services of a senior citizen
who has entered into a contract described in subsection (2) of
this section or an authorized representative.
(4) A taxing unit may provide funds or make grants to any
tax-exempt entity that has established a property tax work-off
program for use to carry out the program.
SECTION 9. ORS 311.689 is amended to read:
311.689. (1) Notwithstanding ORS 311.668 or any other provision
of ORS 311.666 to 311.701, if the individual or, in the case of
two or more individuals electing to defer property taxes jointly,
all of the individuals together, or the spouse who has filed a
claim under ORS 311.688, has federal adjusted gross income that
exceeds $32,000 for the tax year that began in the previous
calendar year, then for the tax year next beginning, the amount
of taxes for which deferral is allowed shall be reduced by $0.50
for each dollar of federal adjusted gross income in excess of
$32,000.
(2) Prior to June 1 of each year, and notwithstanding ORS
314.835, the Department of Revenue shall review returns filed
under ORS chapter 314 and 316 to determine if subsection (1) of
this section is applicable for a homestead for the tax year next
beginning. If subsection (1) of this section is applicable, the
department shall notify by mail the taxpayer or spouse electing
deferral, and the taxes otherwise to be deferred for the tax year
next beginning shall be reduced as provided in subsection (1) of
this section or, if federal adjusted gross income in excess of
$32,000 exceeds the amount of property taxes by a factor of two,
the property taxes shall not be deferred.
(3) If the taxpayer or spouse does not file a return for
purposes of ORS chapters 314 and 316 and the department has
reason to believe that the federal adjusted gross income of the
taxpayer or spouse exceeds $32,000 for the tax year that began in
the previous calendar year, the department shall notify by mail
the taxpayer or spouse electing deferral. If, within 30 days
after the notice is mailed, the taxpayer or spouse does not file
a return under ORS chapter 314 or 316 or otherwise satisfy the
department that federal adjusted gross income does not exceed
$32,000, the department shall again notify the taxpayer or
spouse, and the taxes otherwise to be deferred for the tax year
next beginning shall not be deferred.
(4) For tax years beginning on or after July 1, 2002, the
federal adjusted gross income limit set forth in subsections (1)
to (3) of this section shall be recomputed by multiplying $32,000
Enrolled House Bill 2235 (HB 2235-A) Page 12
by the indexing factor described in ORS 311.668 (7)(a)(A), and
rounding the amount so computed to the nearest multiple of $500.
(5) Nothing in this section shall affect the continued deferral
of taxes that have been deferred for tax years beginning prior to
the tax year next beginning or the right to deferral of taxes for
a tax year beginning after the tax year next beginning if
subsection (1) is not applicable for that tax year for the
homestead.
(6) As used in this section, 'federal adjusted gross income'
means federal adjusted gross income of the individual or, in the
case of two or more individuals electing to defer property tax
jointly, the combined federal adjusted gross income of the
individuals, or the federal adjusted gross income of the spouse
who has filed a claim under ORS 311.688, all as determined for
the tax year beginning in the calendar year prior to which a
determination is required under subsection (2) of this section.
' Federal adjusted gross income' shall be determined under the
Internal Revenue Code, as amended and in effect on December 31,
{ - 2004 - } { + 2006 + }, without any of the additions,
subtractions or other modifications or adjustments required under
ORS chapter 314 or 316.
(7)(a) If, after an initial determination under this section
has been made by the department, upon audit or examination or
otherwise, it is discovered that the taxpayer or spouse had
federal adjusted gross income in excess of the limitation
provided under subsection (1) of this section, the department
shall determine the amount of taxes deferred that should not have
been deferred and give notice to the taxpayer or spouse of the
amount of taxes that should not have been deferred. The
provisions of ORS chapters 305 and 314 shall apply to a
determination of the department under this section in the same
manner as those provisions are applicable to an income tax
deficiency. The amount of deferred taxes that should not have
been deferred shall bear interest from the date paid by the
department until paid at the rate established under ORS 305.220
for deficiencies. A deficiency shall not be assessed under this
section if notice required under this section is not given to the
taxpayer or spouse within three years after the date that the
department has paid the deferred taxes to the county. Upon
payment of the amount assessed as deficiency, and interest, the
department shall execute a release in the amount of the payment
and the release shall be conclusive evidence of the removal and
extinguishment of the lien under ORS 311.666 to 311.701 to the
extent of the payment.
(b) If, after an initial determination under this section has
been made by the department, upon claim for refund, audit or
examination or otherwise, it is discovered that the taxpayer or
spouse had federal adjusted gross income in the amount of or less
than the limitation provided under subsection (1) of this
section, the department shall determine the amount of taxes
deferred that should have been deferred and give notice to the
taxpayer or spouse of the amount of taxes that should have been
deferred. The provisions of ORS chapters 305 and 314 shall apply
to a determination of the department under this section in the
same manner as those provisions are applicable to an income tax
refund. The amount of the taxes that should have been deferred
shall bear interest from the date paid by the taxpayer to the
county at the rate established under ORS 305.220 for refunds
until paid. Claim for refund under this paragraph must be filed
within three years after the earliest date that the taxpayer or
Enrolled House Bill 2235 (HB 2235-A) Page 13
spouse is notified by the department that the taxes are not
deferred.
(8) This section applies to all tax-deferred property,
notwithstanding that election to defer taxes is made under ORS
311.666 to 311.701 before or after October 3, 1989.
SECTION 10. ORS 314.011 is amended to read:
314.011. (1) As used in this chapter, unless the context
requires otherwise, 'department' means the Department of Revenue.
(2) As used in this chapter:
(a) Any term has the same meaning as when used in a comparable
context in the laws of the United States relating to federal
income taxes, unless a different meaning is clearly required or
the term is specifically defined in this chapter.
(b) Except where the Legislative Assembly has provided
otherwise, a reference to the laws of the United States or to the
Internal Revenue Code refers to the laws of the United States or
to the Internal Revenue Code as they are amended and in effect:
(A) On December 31, { - 2004 - } { + 2006 + }; or
(B) If related to the definition of taxable income, as
applicable to the tax year of the taxpayer.
(c) With respect to ORS 314.105, 314.256 (relating to proxy tax
on lobbying expenditures), 314.260 (1)(b), 314.265 (1)(b),
314.302, 314.306, 314.330, 314.360, 314.362, 314.385, 314.402,
314.410, 314.412, 314.525, 314.742 (7), 314.750 and 314.752 and
other provisions of this chapter, except those described in
paragraph (b) of this subsection, any reference to the laws of
the United States or to the Internal Revenue Code means the laws
of the United States relating to income taxes or the Internal
Revenue Code as they are amended on or before December 31,
{ - 2004 - } { + 2006 + }, even when the amendments take
effect or become operative after that date, except where the
Legislative Assembly has specifically provided otherwise.
(3) Insofar as is practicable in the administration of this
chapter, the department shall apply and follow the administrative
and judicial interpretations of the federal income tax law. When
a provision of the federal income tax law is the subject of
conflicting opinions by two or more federal courts, the
department shall follow the rule observed by the United States
Commissioner of Internal Revenue until the conflict is resolved.
Nothing contained in this section limits the right or duty of the
department to audit the return of any taxpayer or to determine
any fact relating to the tax liability of any taxpayer.
(4) When portions of the Internal Revenue Code incorporated by
reference as provided in subsection (2) of this section refer to
rules or regulations prescribed by the Secretary of the Treasury,
then such rules or regulations shall be regarded as rules adopted
by the department under and in accordance with the provisions of
this chapter, whenever they are prescribed or amended.
(5)(a) When portions of the Internal Revenue Code incorporated
by reference as provided in subsection (2) of this section are
later corrected by an Act or a Title within an Act of the United
States Congress designated as an Act or Title making technical
corrections, then notwithstanding the date that the Act or Title
becomes law, those portions of the Internal Revenue Code, as so
corrected, shall be the portions of the Internal Revenue Code
incorporated by reference as provided in subsection (2) of this
section and shall take effect, unless otherwise indicated by the
Act or Title (in which case the provisions shall take effect as
indicated in the Act or Title), as if originally included in the
provisions of the Act being technically corrected. If, on account
Enrolled House Bill 2235 (HB 2235-A) Page 14
of this subsection, any adjustment is required to an Oregon
return that would otherwise be prevented by operation of law or
rule, the adjustment shall be made, notwithstanding any law or
rule to the contrary, in the manner provided under ORS 314.135.
(b) As used in this subsection, 'Act or Title' includes any
subtitle, division or other part of an Act or Title.
SECTION 11. ORS 315.004 is amended to read:
315.004. (1) Except when the context requires otherwise, the
definitions contained in ORS chapters 314, 316, 317 and 318 are
applicable in the construction, interpretation and application of
the personal and corporate income and excise tax credits
contained in this chapter.
(2)(a) For purposes of the tax credits contained in this
chapter, any term has the same meaning as when used in a
comparable context in the laws of the United States relating to
federal income taxes, unless a different meaning is clearly
required or the term is specifically defined for purposes of
construing, interpreting and applying the credit.
(b) With respect to the tax credits contained in this chapter,
any reference to the laws of the United States or to the Internal
Revenue Code means the laws of the United States relating to
income taxes or the Internal Revenue Code as they are amended on
or before December 31, { - 2004 - } { + 2006 + }, even when
the amendments take effect or become operative after that date.
(3) Insofar as is practicable in the administration of this
chapter, the Department of Revenue shall apply and follow the
administrative and judicial interpretations of the federal income
tax law. When a provision of the federal income tax law is the
subject of conflicting opinions by two or more federal courts,
the department shall follow the rule observed by the United
States Commissioner of Internal Revenue until the conflict is
resolved. Nothing contained in this section limits the right or
duty of the department to audit the return of any taxpayer or to
determine any fact relating to the tax liability of any taxpayer.
(4) When portions of the Internal Revenue Code incorporated by
reference as provided in subsection (2) of this section refer to
rules or regulations prescribed by the Secretary of the Treasury,
then such rules or regulations shall be regarded as rules adopted
by the department under and in accordance with the provisions of
this chapter, whenever they are prescribed or amended.
(5)(a) When portions of the Internal Revenue Code incorporated
by reference as provided in subsection (2) of this section are
later corrected by an Act or a Title within an Act of the United
States Congress designated as an Act or Title making technical
corrections, then notwithstanding the date that the Act or Title
becomes law, those portions of the Internal Revenue Code, as so
corrected, shall be the portions of the Internal Revenue Code
incorporated by reference as provided in subsection (2) of this
section and shall take effect, unless otherwise indicated by the
Act or Title (in which case the provisions shall take effect as
indicated in the Act or Title), as if originally included in the
provisions of the Act being technically corrected. If, on account
of this subsection, any adjustment is required to an Oregon
return that would otherwise be prevented by operation of law or
rule, the adjustment shall be made, notwithstanding any law or
rule to the contrary, in the manner provided under ORS 314.135.
(b) As used in this subsection, 'Act or Title' includes any
subtitle, division or other part of an Act or Title.
SECTION 12. ORS 316.012 is amended to read:
Enrolled House Bill 2235 (HB 2235-A) Page 15
316.012. Any term used in this chapter has the same meaning as
when used in a comparable context in the laws of the United
States relating to federal income taxes, unless a different
meaning is clearly required or the term is specifically defined
in this chapter. Except where the Legislative Assembly has
provided otherwise, any reference in this chapter to the laws of
the United States or to the Internal Revenue Code refers to the
laws of the United States or to the Internal Revenue Code as they
are amended and in effect:
(1) On December 31, { - 2004 - } { + 2006 + }; or
(2) If related to the definition of taxable income, as
applicable to the tax year of the taxpayer.
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.
Enrolled House Bill 2235 (HB 2235-A) Page 16
(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.
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(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.
Enrolled House Bill 2235 (HB 2235-A) Page 18
(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.
SECTION 14. ORS 317.010 is amended to read:
317.010. As used in this chapter, unless the context requires
otherwise:
Enrolled House Bill 2235 (HB 2235-A) Page 19
(1) 'Centrally assessed corporation' means every corporation
the property of which is assessed by the Department of Revenue
under ORS 308.505 to 308.665.
(2) 'Department' means the Department of Revenue.
(3)(a) 'Consolidated federal return' means the return permitted
or required to be filed by a group of affiliated corporations
under section 1501 of the Internal Revenue Code.
(b) 'Consolidated state return' means the return required to be
filed under ORS 317.710 (5).
(4) 'Doing business' means any transaction or transactions in
the course of its activities conducted within the state by a
national banking association, or any other corporation; provided,
however, that a foreign corporation whose activities in this
state are confined to purchases of personal property, and the
storage thereof incident to shipment outside the state, shall not
be deemed to be doing business unless such foreign corporation is
an affiliate of another foreign or domestic corporation which is
doing business in Oregon. Whether or not corporations are
affiliated shall be determined as provided in section 1504 of the
Internal Revenue Code.
(5) 'Excise tax' means a tax measured by or according to net
income imposed upon national banking associations, all other
banks, and financial, centrally assessed, mercantile,
manufacturing and business corporations for the privilege of
carrying on or doing business in this state.
(6) 'Financial institution' or 'financial corporation ' means a
bank or trust company organized under ORS chapter 707, national
banking association or production credit association organized
under federal statute, building and loan association, savings and
loan association, mutual savings bank, and any other corporation
whose principal business is in direct competition with national
and state banks.
(7) 'Internal Revenue Code,' except where the Legislative
Assembly has provided otherwise, refers to the laws of the United
States or to the Internal Revenue Code as they are amended and in
effect:
(a) On December 31, { - 2004 - } { + 2006 + }; or
(b) If related to the definition of taxable income, as
applicable to the tax year of the taxpayer.
(8) 'Oregon taxable income' means taxable income, less the
deduction allowed under ORS 317.476, except as otherwise provided
with respect to insurers in subsection (11) of this section and
ORS 317.650 to 317.665.
(9) 'Oregon net loss' means taxable loss, except as otherwise
provided with respect to insurers in subsection (11) of this
section and ORS 317.650 to 317.665.
(10) 'Taxable income or loss' means the taxable income or loss
determined, or in the case of a corporation for which no federal
taxable income or loss is determined, as would be determined,
under chapter 1, Subtitle A of the Internal Revenue Code and any
other laws of the United States relating to the determination of
taxable income or loss of corporate taxpayers, with the
additions, subtractions, adjustments and other modifications as
are specifically prescribed by this chapter except that in
determining taxable income or loss for any year, no deduction
under ORS 317.476 or 317.478 and section 45b, chapter 293, Oregon
Laws 1987, shall be allowed. If the corporation is a corporation
to which ORS 314.280 or 314.605 to 314.675 (requiring or
permitting apportionment of income from transactions or
Enrolled House Bill 2235 (HB 2235-A) Page 20
activities carried on both within and without the state) applies,
to derive taxable income or loss, the following shall occur:
(a) From the amount otherwise determined under this subsection,
subtract nonbusiness income, or add nonbusiness loss, whichever
is applicable.
(b) Multiply the amount determined under paragraph (a) of this
subsection by the Oregon apportionment percentage defined under
ORS 314.280, 314.650 or 314.670, whichever is applicable. The
resulting product shall be Oregon apportioned income or loss.
(c) To the amount determined as Oregon apportioned income or
loss under paragraph (b) of this subsection, add nonbusiness
income allocable entirely to Oregon under ORS 314.280 or 314.625
to 314.645, or subtract nonbusiness loss allocable entirely to
Oregon under ORS 314.280 or 314.625 to 314.645. The resulting
figure is 'taxable income or loss' for those corporations
carrying on taxable transactions or activities both within and
without Oregon.
(11) As used in ORS 317.122 and 317.650 to 317.665, ' insurer'
means any domestic, foreign or alien insurer as defined in ORS
731.082 and any interinsurance and reciprocal exchange and its
attorney in fact with respect to its attorney in fact net income
as a corporate attorney in fact acting as attorney in compliance
with ORS 731.458, 731.462, 731.466 and 731.470 for the reciprocal
or interinsurance exchange. However, 'insurer' does not include
title insurers or health care service contractors operating
pursuant to ORS 750.005 to 750.095.
SECTION 15. { + (1) Except as provided in subsections (2) and
(3) of this section, the amendments to statutes by sections 1 to
14 of this 2007 Act apply to transactions or activities occurring
on or after January 1, 2007, in tax years beginning on or after
January 1, 2007.
(2) The effective and applicable dates, and the exceptions,
special rules and coordination with the Internal Revenue Code, as
amended, relative to those dates, contained in the Deficit
Reduction Act of 2005 (P.L. 109-171), the Tax Increase Prevention
and Reconciliation Act of 2005 (P.L. 109-222), the Pension
Protection Act of 2006 (P.L. 109-280) and other federal law
amending the Internal Revenue Code apply for Oregon personal
income and corporate excise and income tax purposes, to the
extent they can be made applicable, in the same manner as they
are applied under the Internal Revenue Code and related federal
law.
(3)(a) If a deficiency is assessed against any taxpayer for a
tax year beginning before January 1, 2007, and the deficiency or
any portion thereof is attributable to any retroactive treatment
under the amendments to statutes by sections 1 to 14 of this 2007
Act, then any interest or penalty assessed under ORS chapter 305,
314, 315, 316, 317 or 318 with respect to the deficiency or
portion thereof shall be canceled.
(b) If a refund is due any taxpayer for a tax year beginning
before January 1, 2007, and the refund or any portion thereof is
due the taxpayer on account of any retroactive treatment under
the amendments to statutes by sections 1 to 14 of this 2007 Act,
then notwithstanding ORS 305.270 or 314.415 or other law, the
refund or portion thereof shall be paid without interest.
(c) Any changes required because of the amendments to statutes
by sections 1 to 14 of this 2007 Act for a tax year beginning
before January 1, 2007, shall be made by filing an amended return
within the time prescribed by law.
Enrolled House Bill 2235 (HB 2235-A) Page 21
(d) If a taxpayer fails to file an amended return under
paragraph (c) of this subsection, the Department of Revenue shall
make any changes under paragraph (c) of this subsection on the
return to which the changes relate within the period specified
for issuing a notice of deficiency or claiming a refund as
otherwise provided by law with respect to that return, or within
one year after a return for a tax year beginning on or after
January 1, 2007, and before January 1, 2008, is filed, whichever
period expires later. + }
SECTION 16. ORS 657.010 is amended to read:
657.010. As used in this chapter, unless the context requires
otherwise:
(1) 'Base year' means the first four of the last five completed
calendar quarters preceding the benefit year.
(2) 'Benefits' means the money allowances payable to unemployed
persons under this chapter.
(3) 'Benefit year' means a period of 52 consecutive weeks
commencing with the first week with respect to which an
individual files an initial valid claim for benefits, and
thereafter the 52 consecutive weeks period beginning with the
first week with respect to which the individual next files an
initial valid claim after the termination of the individual's
last preceding benefit year except that the benefit year shall be
53 weeks if the filing of an initial valid claim would result in
overlapping any quarter of the base year of a previously filed
initial valid claim.
(4) 'Calendar quarter' means the period of three consecutive
calendar months ending on March 31, June 30, September 30 or
December 31, or the approximate equivalent thereof, as the
Director of the Employment Department may, by regulation,
prescribe.
(5) 'Contribution' or 'contributions' means the taxes, as
defined in subsection { - (12) - } { + (13) + } of this
section, that are the money payments required by this chapter, or
voluntary payments permitted, to be made to the Unemployment
Compensation Trust Fund.
(6) 'Educational institution,' including an institution of
higher education as defined in subsection (9) of this section,
means an institution:
(a) In which participants, trainees or students are offered an
organized course of study or training designed to transfer to
them knowledge, skills, information, doctrines, attitudes or
abilities from, by or under the guidance of an instructor or
teacher;
(b) That is accredited, registered, approved, licensed or
issued a permit to operate as a school by the Department of
Education or other government agency, or that offers courses for
credit that are transferable to an approved, registered or
accredited school;
(c) In which the course or courses of study or training that it
offers may be academic, technical, trade or preparation for
gainful employment in a recognized occupation; and
(d) In which the course or courses of study or training are
offered on a regular and continuing basis.
(7) 'Employment office' means a free public employment office
or branch thereof, operated by this state or maintained as a part
of a state-controlled system of public employment offices.
(8) 'Hospital' means an organization that has been licensed,
certified or approved by the Department of Human Services as a
hospital.
Enrolled House Bill 2235 (HB 2235-A) Page 22
(9) 'Institution of higher education' means an educational
institution that:
(a) Admits as regular students only individuals having a
certificate of graduation from a high school, or the recognized
equivalent of such a certificate;
(b) Is legally authorized in this state to provide a program of
education beyond high school;
(c) Provides an educational program for which it awards a
bachelor's or higher degree, or provides a program that is
acceptable for full credit toward such a degree, a program of
post-graduate or post-doctoral studies, or a program of training
to prepare students for gainful employment in a recognized
occupation; and
(d) Is a public or other nonprofit institution.
{ + (10) 'Internal Revenue Code' means the federal Internal
Revenue Code, as amended and in effect on December 31, 2006. + }
{ - (10) - } { + (11) + } 'Nonprofit employing unit' means
an organization, or group of organizations, described in section
501(c)(3) of the Internal Revenue Code that is exempt from income
tax under section 501(a) of the Internal Revenue Code.
{ - (11) - } { + (12) + } 'State' includes, in addition to
the states of the United States of America, the District of
Columbia and Puerto Rico. However, for all purposes of this
chapter the Virgin Islands shall be considered a state on and
after the day on which the United States Secretary of Labor first
approves the Virgin Islands' law under section 3304(a) of the
Federal Unemployment Tax Act as amended by Public Law 94-566.
{ - (12) - } { + (13) + } 'Taxes' means the money payments
to the Unemployment Compensation Trust Fund required, or
voluntary payments permitted, by this chapter.
{ - (13) - } { + (14) + } 'Valid claim' means any claim for
benefits made in accordance with ORS 657.260 if the individual
meets the wages-paid-for-employment requirements of ORS 657.150.
{ - (14) - } { + (15) + } 'Week' means any period of seven
consecutive calendar days ending at midnight, as the director
may, by regulation, prescribe. The director may by regulation
prescribe that a 'week' shall be 'in,' 'within,' or 'during' the
calendar quarter that includes the greater part of such week.
SECTION 17. ORS 657.115 is amended to read:
657.115. (1) 'Wages' does not include the amount of any payment
made to, or on behalf of, an individual or any of the
individual's dependents on account of:
(a) Retirement.
(b) Sickness or accident disability under a workers'
compensation law.
(c) Medical or hospitalization expenses in connection with
sickness or accident disability.
(d) Death.
(e) Dependent care assistance furnished pursuant to a program
that meets the requirements of section 129(d) of the Internal
Revenue Code, to the extent the assistance does not exceed the
earned income limitation in section 129(b) of the Internal
Revenue Code.
(2) For purposes of this section, 'payment made' includes
amounts paid by an employing unit for insurance or annuities or
into a fund.
(3) This section does not apply unless the payment is made
under a plan or system established by an employing unit which
makes provision generally:
Enrolled House Bill 2235 (HB 2235-A) Page 23
(a) For individuals performing service for it or for such
individuals generally and their dependents; or
(b) For a class or classes of such individuals or for a class
or classes of such individuals and their dependents.
{ - (4) As used in this section, 'Internal Revenue Code'
means the federal Internal Revenue Code as amended and in effect
on December 31, 2004. - }
SECTION 18. ORS 657.117 is amended to read:
657.117. 'Wages' as used in ORS 657.105 { - shall include - }
{ + includes + }:
(1) The amount of any tax imposed upon an employee and paid by
an employer pursuant to { - paragraphs 6 of sections 3121(a)
and 3306(b) - } { + sections 3121(a)(6) and 3306(b)(6) + } of
the Internal Revenue Code { - of 1954 as amended by the Omnibus
Reconciliation Act of 1980 - } .
(2) Tips reported by the employer pursuant to section 3306 of
the Internal Revenue Code { - of 1954, as amended - } .
SECTION 19. ORS 657.195 is amended to read:
657.195. (1) Notwithstanding any other provisions of this
chapter, no work is deemed suitable and benefits shall not be
denied under this chapter to any otherwise eligible individual
for refusing to accept new work under any of the following
conditions:
(a) If the position offered is vacant due directly to a strike,
lockout or other labor dispute.
(b) If the remuneration, hours or other conditions of the work
offered are substantially less favorable to the individual than
those prevailing for similar work in the locality.
(c) If as a condition of being employed the individual would be
required to join a company union or to resign from or refrain
from joining any bona fide labor organization.
(2) On and after November 8, 1938, and for the purposes of this
chapter only, this section shall have the same meaning as the
provisions of section 3304(a)(5) of the { - United States - }
Internal Revenue Code.
SECTION 20. ORS 657.321 is amended to read:
657.321. As used in ORS 657.321 to 657.329 unless the context
requires otherwise:
(1) 'Extended benefit period' means a period that:
(a) Begins with the third week after a week for which there is
a state 'on' indicator; and
(b) Ends with the third week after the first week for which
there is a state 'off' indicator or the 13th consecutive week of
such period, whichever occurs later.
(2) Notwithstanding the provisions of subsection (1) of this
section, no extended benefit period may begin by reason of a
state ' on' indicator before the 14th week following the end of a
prior extended benefit period which was in effect with respect to
this state.
(3) There is a state 'on' indicator for any week for which the
Director of the Employment Department determines in accordance
with regulations of the United States Secretary of Labor that for
the period consisting of such week and the immediately preceding
12 weeks, the rate of insured unemployment (not seasonally
adjusted):
(a) Equaled or exceeded five percent and equaled or exceeded
120 percent of the average of such rates for the corresponding
13-week periods ending in each of the preceding two calendar
years;
(b) Equaled or exceeded six percent; or
Enrolled House Bill 2235 (HB 2235-A) Page 24
(c) With respect to benefits for weeks of unemployment
beginning after March 6, 1993:
(A) The average rate of total unemployment (seasonally
adjusted), as determined by the United States Secretary of Labor,
for the period consisting of the most recent three months for
which data for all states are published before the close of such
week equals or exceeds 6.5 percent; and
(B) The average rate of total unemployment in the state
(seasonally adjusted), as determined by the United States
Secretary of Labor, for the three-month period referred to in
subparagraph (A) of this paragraph, equals or exceeds 110 percent
of such average for either or both of the corresponding
three-month periods ending in the two preceding calendar years.
(4) There is a state 'off' indicator for any week for which the
director determines in accordance with regulations of the United
States Secretary of Labor that for the period consisting of such
week and the immediately preceding 12 weeks, none of the options
specified in subsection (3) of this section results in an ' on'
indicator.
(5) 'Rate of insured unemployment,' for the purpose of
subsections (3) and (4) of this section, means the percentage
derived by dividing:
(a) The average weekly number of regular continued weeks of
unemployment claimed by individuals in this state with respect to
the most recent 13-consecutive-week period, as determined by the
director on the basis of reports to the United States Secretary
of Labor, by
(b) The average monthly employment covered under this chapter
for the first four of the most recent six completed calendar
quarters before the end of such 13-week period.
(6) 'Regular benefits' means benefits payable to an individual
under this chapter or under any other state law (including
benefits payable to federal civilian employees and to
ex-servicemen pursuant to 5 U.S.C. chapter 85) other than
extended benefits.
(7) 'Extended benefits' means benefits (including benefits
payable to federal civilian employees and to ex-servicemen
pursuant to 5 U.S.C. chapter 85) payable to an individual under
the provisions of this chapter for weeks of unemployment in the
individual's eligibility period.
(8) 'Eligibility period' of an individual means the period
consisting of the weeks in the individual's benefit year which
begin in an extended benefit period and, if the benefit year ends
within such extended benefit period, any weeks thereafter which
begin in such period.
(9) 'Exhaustee' means an individual who, with respect to any
week of unemployment in the individual's eligibility period:
(a) Has received prior to such week, all of the regular
benefits that were available to the individual under this chapter
or any other state law (including dependents' allowances and
benefits payable to federal civilian employees and ex-servicemen
under 5 U.S.C. chapter 85) in the current benefit year that
includes such week (provided that an individual shall be deemed
to have received all of the regular benefits that were available
to the individual, although as a result of a pending appeal with
respect to wages or employment that were not considered in the
original monetary determination in the current benefit year, the
individual may subsequently be determined to be entitled to added
regular benefits); or
Enrolled House Bill 2235 (HB 2235-A) Page 25
(b) The individual's benefit year having expired prior to such
week, has no, or insufficient wages and employment to establish a
new benefit year that would include such week; and
(c) Has no right to unemployment benefits or allowances under
the Railroad Unemployment Insurance Act and such other federal
laws as are specified in regulations issued by the United States
Secretary of Labor; and
(d) Has not received and is not seeking, or the appropriate
agency has finally determined that the individual is not entitled
to receive, unemployment benefits under the unemployment
compensation law of Canada.
(10) 'State law' means the unemployment insurance law of any
state, approved by the United States Secretary of Labor under
section 3304 of the Internal Revenue Code { - of 1954, as
amended - } .
(11) 'High unemployment period' means any period during which
an extended benefit period would be in effect if subsection
(3)(c)(A) of this section were applied by substituting 'eight
percent' for '6.5 percent. '
SECTION 21. ORS 657.325 is amended to read:
657.325. (1) An individual shall be eligible to receive
extended benefits with respect to any week of unemployment in the
individual's eligibility period only if the Director of the
Employment Department finds that with respect to such week the
individual:
(a) Is an exhaustee;
(b) Has satisfied the requirements of this chapter for the
receipt of regular benefits that are applicable to individuals
claiming extended benefits, including not being subject to a
disqualification for the receipt of benefits; and
(c) Has been paid wages by an employer or employers subject to
the provisions of this chapter during the base period of the
individual's applicable benefit year in an amount equal to or in
excess of 40 times the individual's applicable weekly benefit
amount.
(2) The weekly extended benefit amount payable to an individual
for a week of total unemployment in the individual's eligibility
period shall be an amount equal to the weekly benefit amount
payable to the individual during the applicable benefit year.
(3) The maximum extended benefit amount payable to any eligible
individual with respect to the applicable benefit year shall be:
(a) 50 percent of the total amount of regular benefits which
were payable to the individual under this chapter in the
applicable benefit year; or
(b) With respect to weeks beginning in a high unemployment
period, 80 percent of the total amount of regular benefits which
were payable to the individual under this chapter in the
applicable benefit year.
(4) Notwithstanding subsection (1) of this section, extended
benefits shall not be payable to any individual for any week
pursuant to an interstate claim filed in any other state under
the interstate benefit payment plan if an extended benefit period
is not in effect for such week in such other state.
(5) The provisions of subsection (4) of this section shall not
apply with respect to the first two weeks for which extended
benefits would otherwise be payable to an individual pursuant to
an interstate claim filed under the interstate benefit payment
plan.
(6) Notwithstanding the provisions of subsections (1) to (5)
and (12) of this section, an individual shall be ineligible for
Enrolled House Bill 2235 (HB 2235-A) Page 26
payment of extended benefits for any week of unemployment in the
individual's eligibility period if the director finds that during
such week:
(a) The individual failed to accept any offer of suitable work
or failed to apply for any suitable work, as defined under
subsection (8) of this section, to which the individual was
referred by the director; or
(b) The individual failed to actively engage in seeking work as
prescribed under subsection (10) of this section.
(7) Any individual who has been found ineligible for extended
benefits by reason of the provisions in subsection (6) of this
section shall also be denied benefits beginning with the first
day of the week following the week in which such failure occurred
and until the individual has been employed in each of four
subsequent weeks, whether or not consecutive, and has earned
remuneration equal to not less than four times the extended
weekly benefit amount.
(8)(a) For purposes of this section, the term 'suitable work'
means, with respect to any individual, any work which is within
such individual's capabilities, provided, however:
(A) That the gross average weekly remuneration payable for the
work must exceed the sum of the individual's weekly benefit
amount and the amount, if any, of supplemental unemployment
benefits, as defined in section 501(c)(17)(D) of the Internal
Revenue Code { - of 1954 - } , payable to such individual for
such week; and
(B) The work must pay wages which equal or exceed the higher of
the state or local minimum wage or the minimum wage provided by
section 6 (a)(1) of the Fair Labor Standards Act of 1938, without
regard to any exemption;
(b) No individual shall be denied extended benefits for failure
to accept an offer of or referral to any job which meets the
definition of suitability as described herein if:
(A) The position was not offered to such individual in writing
or was not listed with the Employment Department; or
(B) Such failure could not result in a denial of benefits under
the definition of suitable work for regular benefit claimants
pursuant to ORS 657.190 to the extent that the criteria of
suitability are not inconsistent with the provisions of this
section; or
(C) The individual furnishes satisfactory evidence to the
director that the individual's prospects for obtaining work in
the individual's customary occupation within a reasonably short
period are good. If such evidence is deemed satisfactory for this
purpose, the determination of whether any work is suitable with
respect to such individual shall be made in accordance with the
definition of suitable work in ORS 657.190 without regard to the
definition specified in this subsection.
(9) Notwithstanding the provisions of subsection (8) of this
section to the contrary, no work shall be deemed to be suitable
work for an individual which does not accord with the labor
standard provisions required by section 3304(a)(5) of the
Internal Revenue Code { - of 1954 - } and as set forth in ORS
657.195.
(10) For the purposes of subsection (6)(b) of this section, an
individual shall be treated as actively engaged in seeking work
during any week if:
(a) The individual has engaged in a systematic and sustained
effort to obtain work during such week; and
Enrolled House Bill 2235 (HB 2235-A) Page 27
(b) The individual furnishes tangible evidence of engaging in
such effort during such week.
(11) The Employment Department shall refer any claimant
entitled to extended benefits to any suitable work which meets
the criteria prescribed in subsection (8) of this section.
(12) An individual shall not be eligible to receive extended
benefits under this section if the individual has been
disqualified for regular or extended benefits under ORS 657.176
(2) unless the individual has satisfied the disqualification as
provided in ORS 657.176 (2).
(13) Subsections (6) to (11) of this section shall not apply to
weeks of unemployment beginning after March 6, 1993, and before
January 1, 1995.
SECTION 22. { + 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. + }
----------
Passed by House March 14, 2007
Repassed by House June 7, 2007
...........................................................
Chief Clerk of House
...........................................................
Speaker of House
Passed by Senate June 4, 2007
...........................................................
President of Senate
Enrolled House Bill 2235 (HB 2235-A) Page 28
Received by Governor:
......M.,............., 2007
Approved:
......M.,............., 2007
...........................................................
Governor
Filed in Office of Secretary of State:
......M.,............., 2007
...........................................................
Secretary of State
Enrolled House Bill 2235 (HB 2235-A) Page 29