74th OREGON LEGISLATIVE ASSEMBLY--2007 Regular Session
Enrolled
House Bill 2361
Ordered printed by the Speaker pursuant to House Rule 12.00A (5).
Presession filed (at the request of House Interim Committee on
Judiciary for Oregon State Bar Estate Planning Section)
CHAPTER ................
AN ACT
Relating to partial liquidations; amending ORS 129.300.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 129.300 is amended to read:
129.300. (1) In this section, 'entity' means a corporation,
partnership, limited liability company, regulated investment
company, real estate investment trust, common trust fund or any
other organization in which a trustee has an interest other than
a trust or estate to which ORS 129.305 applies, a business or
activity to which ORS 129.308 applies or an asset-backed security
to which ORS 129.385 applies.
(2) Except as otherwise provided in this section, a trustee
shall allocate to income money received from an entity.
(3) A trustee shall allocate the following receipts from an
entity to principal:
(a) Property other than money;
(b) Money received in one distribution or a series of related
distributions in exchange for part or all of a trust's interest
in the entity;
(c) Money received in total or partial liquidation of the
entity; and
(d) Money received from an entity that is a regulated
investment company or a real estate investment trust if the money
distributed is a capital gain dividend for federal income tax
purposes.
(4) Money is received in partial liquidation:
(a) To the extent that the entity, at or near the time of a
distribution, indicates that it is a distribution in partial
liquidation; or
(b) If the total amount of money and property
{ - received - } { + distributed by an entity + } in a
distribution or series of related distributions is greater than
20 percent of the entity's gross assets, as shown by the entity's
year-end financial statements immediately preceding the initial
{ - receipt - } { + distribution + }.
(5) Money is not received in partial liquidation, nor may it be
taken into account under subsection (4)(b) of this section, to
the extent that it does not exceed the amount of income tax that
a trustee or beneficiary must pay on taxable income of the entity
that distributes the money.
Enrolled House Bill 2361 (HB 2361-INTRO) Page 1
(6) A trustee may rely upon a statement made by an entity about
the source or character of a distribution if the statement is
made at or near the time of distribution by the entity's board of
directors or other person or group of persons authorized to
exercise powers to pay money or transfer property comparable to
those of a corporation's board of directors.
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Passed by House February 26, 2007
...........................................................
Chief Clerk of House
...........................................................
Speaker of House
Passed by Senate March 29, 2007
...........................................................
President of Senate
Enrolled House Bill 2361 (HB 2361-INTRO) Page 2
Received by Governor:
......M.,............., 2007
Approved:
......M.,............., 2007
...........................................................
Governor
Filed in Office of Secretary of State:
......M.,............., 2007
...........................................................
Secretary of State
Enrolled House Bill 2361 (HB 2361-INTRO) Page 3