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 2606
A-Engrossed
House Bill 2653
Ordered by the Senate June 18
Including Senate Amendments dated June 18
Sponsored by COMMITTEE ON REVENUE
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.
Removes exception to standard income apportionment method that
provides for double-weighted sales factor in apportionment
formula as applicable to forest products industry taxpayers.
Applies to tax years beginning on or after January 1, 2010.
{ + Requires Department of Revenue to waive penalty or
interest if penalty or interest is based on underpayment or
underreporting that results solely from changes to corporate
minimum tax and rate of corporate excise tax or imposition of
entity tax on partnerships made by House Bill 3405. Applies to
tax years beginning on or after January 1, 2009, and before
January 1, 2010. + }
Takes effect on 91st day following adjournment sine die.
A BILL FOR AN ACT
Relating to corporate income taxation; creating new provisions;
amending ORS 314.650, 314.655 and 314.660; and prescribing an
effective date.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 314.650 is amended to read:
314.650. { - (1) - } All business income shall be
apportioned to this state by multiplying the income by the sales
factor.
{ - (2)(a) Notwithstanding subsection (1) of this section,
the business income of a taxpayer that is in the forest products
industry, that owns and manages 300,000 or more acres in this
state, but less than 400,000 acres, and that processes at least
20 percent of the taxpayer's total wood chip supply for
papermaking from sawmill residue generated within this state,
shall be apportioned to this state by multiplying the income by a
fraction, the numerator of which is the property factor plus the
payroll factor plus two times the sales factor, and the
denominator of which is four. - }
{ - (b) If the denominator of the property factor, payroll
factor or sales factor, as determined under ORS 314.650 to
314.665, is zero, then the denominator specified in paragraph (a)
of this subsection shall be reduced by the number of factors with
a denominator of zero. - }
SECTION 2. ORS 314.655 is amended to read:
314.655. (1) { - As used in ORS 314.650 - } { + For
purposes of ORS 317.391 + }, the property factor is a fraction,
the numerator of which is the average value of the taxpayer's
real and tangible personal property owned or rented and used in
this state during the tax period and the denominator of which is
the average value of all the taxpayer's real and tangible
personal property owned or rented and used during the tax period.
(2) Property owned by the taxpayer is valued at its original
cost. Property rented by the taxpayer is valued at eight times
the net annual rental rate. Net annual rental rate is the annual
rental rate paid by the taxpayer less any annual rental rate
received by the taxpayer from subrentals.
(3) The average value of property shall be determined by
averaging the values at the beginning and ending of the tax
period but the Department of Revenue may require the averaging of
monthly values during the tax period if reasonably required to
reflect properly the average value of the taxpayer's property.
SECTION 3. ORS 314.660 is amended to read:
314.660. (1) { - As used in ORS 314.650 - } { + For
purposes of ORS 317.391 + }, the payroll factor is a fraction,
the numerator of which is the total amount paid in this state
during the tax period by the taxpayer for compensation, and the
denominator of which is the total compensation paid everywhere
during the tax period.
(2) Compensation is paid in this state if:
(a) The individual's service is performed entirely within the
state; { - or - }
(b) The individual's service is performed both within and
without the state, but the service performed without the state is
incidental to the individual's service within the state; or
(c) Some of the service is performed in the state and (A) the
base of operations or, if there is no base of operations, the
place from which the service is directed or controlled is in the
state, or (B) the base of operations or the place from which the
service is directed or controlled is not in any state in which
some part of the service is performed, but the individual's
residence is in this state.
SECTION 4. { + The amendments to ORS 314.650 by section 1 of
this 2009 Act apply to tax years beginning on or after January 1,
2010. + }
SECTION 5. { + The Department of Revenue shall waive any
penalty or interest that would otherwise apply to taxes due if
the penalty or interest is based on underpayment or
underreporting that results solely from section 3, chapter ___,
Oregon Laws 2009 (Enrolled House Bill 3405), and the amendments
to ORS 317.061 and 317.090 by sections 1 and 5, chapter ___,
Oregon Laws 2009 (Enrolled House Bill 3405). + }
SECTION 6. { + Section 5 of this 2009 Act applies to tax years
beginning on or after January 1, 2009, and before January 1,
2010. + }
SECTION 7. { + 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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