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 2368
 
                         House Bill 3081
 
Sponsored by Representative BRUUN; Representatives ESQUIVEL,
  FREEMAN, GARRARD, GILMAN, HANNA, HUFFMAN, KRIEGER, MAURER,
  OLSON, WEIDNER, WHISNANT, WINGARD
 
 
                             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 amount of personal exemption income tax credit.
Applies to tax years beginning on or after January 1, 2010.
  Takes effect on 91st day following adjournment sine die.
 
                        A BILL FOR AN ACT
Relating to personal exemption credit; creating new provisions;
  amending ORS 316.085; and prescribing an effective date.
Be It Enacted by the People of the State of Oregon:
  SECTION 1. ORS 316.085 is amended to read:
  316.085. (1)(a) There shall be allowed a personal exemption
credit against taxes otherwise due under this chapter. The credit
shall equal   { - $90 - }   { + $500 + } multiplied by the number
of personal exemptions allowed under section 151 of the Internal
Revenue Code.
  (b) In the case of an individual with respect to whom a credit
under paragraph (a) of this subsection is allowable to another
taxpayer for a taxable year beginning in the calendar year in
which the individual's taxable year begins, the credit amount
applicable to such individual for such individual's taxable year
is zero.
  (2)(a) A nonresident shall be allowed the credit provided under
subsection (1) of this section computed in the same manner and
subject to the same limitations as the credit allowed to a
resident of this state. However, the credit shall be prorated
using the proportion provided in ORS 316.117.
  (b) If a change in the taxable year of a taxpayer occurs as
described in ORS 314.085, or if the Department of Revenue
terminates the taxpayer's taxable year under ORS 314.440, the
credit allowed by this section shall be prorated or computed in a
manner consistent with ORS 314.085.
  (c) If a change in the status of a taxpayer from resident to
nonresident or from nonresident to resident occurs, the credit
allowed by this section shall be determined in a manner
consistent with ORS 316.117.
  (3) The Department of Revenue shall recompute the dollar amount
of the personal exemption credit allowed for state personal
income tax purposes. The computation shall be as follows:
  (a) Divide the monthly averaged U.S. City Average Consumer
Price Index for the 12 consecutive months ending August 31 of the
prior calendar year by the monthly averaged index for the first
six months of   { - 1986 - }  { +  2010 + }.
  (b) Recompute the dollar amount of the personal exemption
credit by multiplying   { - $90 - }   { + $500 + } by the
appropriate indexing factor determined as provided in paragraph
(a) of this subsection.  Round off the amount obtained under this
paragraph to the nearest $1.
  (4) As used in this section, '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.
  (5) Notwithstanding subsections (1) to (3) of this section, if
a taxpayer's federal adjusted gross income for the tax year
exceeds the threshold amount, the exemption amount shall be the
greater of:
  (a) Thirty-three percent of the amount computed in subsection
(3) of this section; or
  (b) The amount computed in subsection (3) of this section
reduced by:
  (A) Two percentage points for each $2,500 (or fraction thereof)
by which the taxpayer's federal adjusted gross income exceeds the
threshold amount; or
  (B) Two percentage points for each $1,250 (or fraction thereof)
by which the taxpayer's federal adjusted gross income exceeds the
threshold amount, if the taxpayer is married but filing
separately.
  (6) As used in this section, 'threshold amount' means:
  (a) $234,600 in the case of a joint return or a surviving
spouse.
  (b) $195,500 in the case of a head of a household.
  (c) $156,400 in the case of an individual who is not a married
individual and is not a surviving spouse.
  (d) $117,300 in the case of a married individual filing a
separate return.
  (7) The Department of Revenue shall adjust the threshold
amounts in subsection (6) of this section according to the
cost-of-living adjustment for the calendar year. The department
shall annually recompute the threshold amounts for the current
tax year by multiplying each dollar amount by the percentage (if
any) 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 U.S. City
Average Consumer Price Index for the 12 consecutive months ending
August 31, 2006.
  (8) If a threshold amount computed under subsections (6) and
(7) of this section is not a multiple of $50, the amount shall be
rounded to the next lower multiple of $50.
  SECTION 2.  { + The amendments to ORS 316.085 by section 1 of
this 2009 Act apply to tax years beginning on or after January 1,
2010. + }
  SECTION 3.  { + 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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