75th OREGON LEGISLATIVE ASSEMBLY--2009 Regular Session
 
NOTE:  Matter within  { +  braces and plus signs + } in an
amended section is new. Matter within  { -  braces and minus
signs - } is existing law to be omitted. New sections are within
 { +  braces and plus signs + } .
 
LC 931
 
                         House Bill 2119
 
Ordered printed by the Speaker pursuant to House Rule 12.00A (5).
  Presession filed (at the request of Governor Theodore R.
  Kulongoski)
 
 
                             SUMMARY
 
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.
 
  Increases corporate minimum tax that applies to C corporations.
Transfers net revenues from corporate minimum tax to Oregon Rainy
Day Fund. Applies to tax years beginning on or after January 1,
2009.
  Takes effect on 91st day following adjournment sine die.
 
                        A BILL FOR AN ACT
Relating to corporate minimum taxes; creating new provisions;
  amending ORS 317.090 and 317.850; prescribing an effective
  date; and providing for revenue raising that requires approval
  by a three-fifths majority.
Be It Enacted by the People of the State of Oregon:
  SECTION 1. ORS 317.090 is amended to read:
  317.090.  { + (1) + } Each taxpayer named in ORS 317.056 or
317.070 shall pay annually to the state, for the privilege of
carrying on or doing business by it within this state, a minimum
tax   { - of $10. - }  { + as follows:
  (a) If the corporation is an S corporation, as defined in ORS
314.730, $10 in lieu of any amount that would otherwise be due
under paragraphs (b) to (g) of this subsection.
  (b) If the corporation has Oregon sales for the tax year of
less than $50,000, $25.
  (c) If the corporation has Oregon sales for the tax year of
$50,000 or more, but less than $100,000, $100.
  (d) If the corporation has Oregon sales for the tax year of
$100,000 or more, but less than $250,000, $500.
  (e) If the corporation has Oregon sales for the tax year of
$250,000 or more, but less than $500,000, $1,000.
  (f) If the corporation has Oregon sales for the tax year of
$500,000 or more, but less than $1 million, $1,500.
  (g) If the corporation has Oregon sales for the tax year of $1
million or more, $5,000.
  (2) As used in this section, 'Oregon sales' means:
  (a) If the corporation apportions business income under ORS
314.650 to 314.665 for Oregon tax purposes, the total sales of
the taxpayer in this state during the tax year, as determined for
purposes of ORS 314.665;
  (b) If the corporation does not apportion business income for
Oregon tax purposes, the total sales in this state that the
taxpayer would have had, as determined for purposes of ORS
314.665, if the taxpayer were required to apportion business
income for Oregon tax purposes; or
  (c) If the corporation apportions business income using a
method different from the method prescribed by ORS 314.650 to
314.665, Oregon sales as defined by the Department of Revenue by
rule.
  (3) + } The minimum tax   { - shall not be - }   { + is not + }
apportionable (except in the case of a change of accounting
periods),   { - but shall be - }   { + and is + } payable in full
for any part of the year during which a corporation is subject to
tax.
  SECTION 2.  { + The amendments to ORS 317.090 by section 1 of
this 2009 Act apply to tax years beginning on or after January 1,
2009. + }
  SECTION 3. ORS 317.850 is amended to read:
  317.850.  { + (1) + } The net revenue from the tax imposed by
this chapter, after deduction of refunds, shall be paid over to
the State Treasurer and { + :
  (a) The net revenue attributable to the corporate minimum tax
imposed under ORS 317.090 shall be transferred to the Oregon
Rainy Day Fund established under ORS 293.144; and
  (b) The remaining balance of net revenue shall be + } held in
the General Fund as miscellaneous receipts available generally to
meet any expense or obligation of the State of Oregon lawfully
incurred.
   { +  (2) + } A working balance of unreceipted revenue from the
tax imposed by this chapter may be retained for the payment of
refunds, but   { - such - }   { + the + } working balance shall
not at the close of any fiscal year exceed the sum of $500,000.
  SECTION 4.  { + This 2009 Act takes effect on the 91st day
after the date on which the regular session of the Seventy-fifth
Legislative Assembly adjourns sine die. + }
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