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 3097
House Bill 3115
Sponsored by Representative BUCKLEY (at the request of Oregon
Revenue Coalition)
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.
Requires addition to taxable income for Oregon tax purposes of
certain income otherwise excluded from federal taxable income.
Imposes property tax on tangible or intangible property, property
rights or property interests in or related to Pacific Northwest
AC Intertie and referenced in certain agreements.
Applies to tax years beginning on or after January 1, 2010.
Applies to property tax years beginning on or after July 1,
2010.
A BILL FOR AN ACT
Relating to taxation; creating new provisions; amending ORS
307.090 and 316.027 and section 4, chapter 405, Oregon Laws
1981; repealing ORS 307.182; and providing for revenue raising
that requires approval by a three-fifths majority.
Whereas the people of Oregon have repeatedly expressed their
desire for the Legislative Assembly to follow clear priorities;
and
Whereas the priorities established by the people of Oregon are
the adequate funding of education, human services and public
safety; and
Whereas tax expenditures, commonly known as 'tax breaks, ' that
are currently provided to a minority of Oregon taxpayers have
grown to such a level that we cannot afford to fund those
services given highest priority by the vast majority of the
residents of our state; and
Whereas it is necessary to review all current tax expenditures
and eliminate those that serve a minority of taxpayers at the
expense of the needs and priorities of the majority of residents;
now, therefore,
Be It Enacted by the People of the State of Oregon:
SECTION 1. { + Section 2 of this 2009 Act is added to and made
a part of ORS chapter 316. + }
SECTION 2. { + To derive Oregon taxable income, there shall be
added to federal taxable income the amount excluded from federal
taxable income for federal tax purposes under section 911 of the
federal Internal Revenue Code. + }
SECTION 3. { + Section 2 of this 2009 Act applies to tax years
beginning on or after January 1, 2010. + }
SECTION 4. { + Section 5 of this 2009 Act is added to and made
a part of ORS chapter 317. + }
SECTION 5. { + To derive Oregon taxable income, there shall be
added to federal taxable income the amount excluded from federal
taxable income for federal tax purposes under sections 861 to 863
and 865 of the federal Internal Revenue Code. + }
SECTION 6. { + Section 5 of this 2009 Act applies to tax years
beginning on or after January 1, 2010. + }
SECTION 7. { + Section 8 of this 2009 Act is added to and made
a part of ORS chapter 317. + }
SECTION 8. { + To derive Oregon taxable income, there shall be
added to federal taxable income the amount excluded from federal
taxable income for federal tax purposes under sections 114 and
941 of the federal Internal Revenue Code. + }
SECTION 9. { + Section 8 of this 2009 Act applies to tax years
beginning on or after January 1, 2010. + }
SECTION 10. { + Section 11 of this 2009 Act is added to and
made a part of ORS chapter 316. + }
SECTION 11. { + To derive Oregon taxable income, there shall
be added to federal taxable income the amount excluded from
federal taxable income for federal tax purposes under section 422
of the federal Internal Revenue Code. + }
SECTION 12. { + Section 11 of this 2009 Act applies to tax
years beginning on or after January 1, 2010. + }
SECTION 13. { + Section 14 of this 2009 Act is added to and
made a part of ORS chapter 317. + }
SECTION 14. { + To derive Oregon taxable income, there shall
be added to federal taxable income the amount excluded from
federal taxable income for federal tax purposes under sections
72, 101, 7702 and 7702A of the federal Internal Revenue Code. + }
SECTION 15. { + Section 14 of this 2009 Act applies to tax
years beginning on or after January 1, 2010. + }
SECTION 16. { + Section 17 of this 2009 Act is added to and
made a part of ORS chapter 316. + }
SECTION 17. { + To derive Oregon taxable income, there shall
be added to federal taxable income the amount excluded from
federal taxable income for federal tax purposes under section
1031 of the federal Internal Revenue Code. + }
SECTION 18. { + Section 17 of this 2009 Act applies to tax
years beginning on or after January 1, 2010. + }
SECTION 19. { + Section 20 of this 2009 Act is added to and
made a part of ORS chapter 317. + }
SECTION 20. { + To derive Oregon taxable income, there shall
be added to federal taxable income the amount excluded from
federal taxable income for federal tax purposes under section
1031 of the federal Internal Revenue Code. + }
SECTION 21. { + Section 20 of this 2009 Act applies to tax
years beginning on or after January 1, 2010. + }
SECTION 22. { + Section 23 of this 2009 Act is added to and
made a part of ORS chapter 317. + }
SECTION 23. { + To derive Oregon taxable income, there shall
be added to federal taxable income the amount excluded from
federal taxable income for federal tax purposes under section 954
of the federal Internal Revenue Code. + }
SECTION 24. { + Section 23 of this 2009 Act applies to tax
years beginning on or after January 1, 2010. + }
SECTION 25. ORS 316.027 is amended to read:
316.027. { - (1) - } For purposes of this chapter, unless
the context requires otherwise:
{ - (a) - } { + (1) + } 'Resident' or 'resident of this
state' means:
{ - (A) - } { + (a) + } An individual who is domiciled in
this state unless the individual:
{ - (i) - } { + (A) + } Maintains no permanent place of
abode in this state;
{ - (ii) - } { + (B) + } Does maintain a permanent place of
abode elsewhere; and
{ - (iii) - } { + (C) + } Spends in the aggregate not more
than 30 days in the taxable year in this state; or
{ - (B) - } { + (b) + } An individual who is not domiciled
in this state but maintains a permanent place of abode in this
state and spends in the aggregate more than 200 days of the
taxable year in this state unless the individual proves that the
individual is in the state only for a temporary or transitory
purpose.
{ - (b) 'Resident' or 'resident of this state' does not
include: - }
{ - (A) An individual who is a qualified individual under
section 911(d)(1) of the Internal Revenue Code for the tax
year; - }
{ - (B) A spouse of a qualified individual under section
911(d)(1) of the Internal Revenue Code, if the spouse has a
principal place of abode for the tax year that is not located in
this state; or - }
{ - (C) A resident alien under section 7701(b) of the
Internal Revenue Code who would be considered a qualified
individual under section 911(d)(1) of the Internal Revenue Code
if the resident alien were a citizen of the United States. - }
(2) For purposes of subsection { - (1)(a)(B) - }
{ + (1)(b) + } of this section, a fraction of a calendar day
shall be counted as a whole day.
SECTION 26. { + The amendments to ORS 316.027 by section 25 of
this 2009 Act apply to tax years beginning on or after January 1,
2010. + }
SECTION 27. { + ORS 307.182 is repealed on January 2,
2014. + }
SECTION 28. Section 4, chapter 405, Oregon Laws 1981, as
amended by section 1, chapter 169, Oregon Laws 1985, section 4,
chapter 748, Oregon Laws 1995, section 4, chapter 67, Oregon Laws
2001, section 13, chapter 114, Oregon Laws 2001, and section 8,
chapter 509, Oregon Laws 2001, is amended to read:
{ + Sec. 4. + } ORS 307.182 applies to tax years beginning on
or after July 1, 1981, and prior to July 1, { - 2012 - } { +
2011 + }.
SECTION 29. { + Section 30 of this 2009 Act is added to and
made a part of ORS chapter 316. + }
SECTION 30. { + (1) If mortgage interest is taken as a
deduction in computing federal taxable income for federal tax
purposes, excess mortgage interest shall be added to federal
taxable income in computing Oregon taxable income under this
chapter.
(2) Excess mortgage interest for a tax year shall be computed
in accordance with the following table: + }
________________________________________________________________
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
{ +
If the taxpayer's The taxpayer's
federal adjusted excess mortgage
gross income is: interest is: + }
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
{ +
$125,000 or Interest
more, but less attributable to
than $150,000 total amount of
mortgage loans in
excess of $200,000
$150,000 or Interest
more, but less attributable to
than $200,000 total amount of
mortgage loans in
excess of $100,000
$200,000 or Interest
more, but less attributable to
than $250,000 total amount of
mortgage loans in
excess of $50,000
$250,000 or more All mortgage
interest + }
________________________________________________________________
____________________________________________________________
END OF POSSIBLE IRREGULAR TABULAR TEXT
____________________________________________________________
{ + (3) For purposes of subsection (2) of this section, to
determine the amount of mortgage interest attributable to
mortgage loan amounts of more than a threshold amount, multiply
the total amount of interest paid during the tax year by the
ratio of (total amount of mortgage loans - threshold amount) /
total amount of mortgage loans.
(4) As used in this section:
(a) 'Threshold amount' means the maximum total amount of
mortgage loans for which interest paid during the tax year
remains fully deductible for Oregon tax purposes.
(b) 'Total amount of mortgage loans' means the total amount of
principal on all loans for which the taxpayer is claiming a
deduction under section 163 of the Internal Revenue Code because
the interest is qualified residence interest under section
163(h)(3) of the Internal Revenue Code. + }
SECTION 31. { + Section 30 of this 2009 Act applies to tax
years beginning on or after January 1, 2010. + }
SECTION 32. ORS 307.090 is amended to read:
307.090. (1) Except as provided by law, all property of the
state and all public or corporate property used or intended for
corporate purposes of the several counties, cities, towns, school
districts, irrigation districts, drainage districts, ports, water
districts, housing authorities and all other public or municipal
corporations in this state, is exempt from taxation.
(2) Any city may agree with any school district to make
payments in lieu of taxes on all property of the city located in
any such school district, and which is exempt from taxation under
subsection (1) of this section when such property is outside the
boundaries of the city and owned, used or operated for the
production, transmission, distribution or furnishing of electric
power or energy or electric service for or to the public.
{ - (3)(a) Notwithstanding ORS 308.505 to 308.665, the
property described in paragraph (b) of this subsection is exempt
from taxation if the owner of the property described in paragraph
(b) of this subsection is a city or public entity of a state
other than Oregon and the city or public entity does not own a
fee title interest in any real property in Oregon. - }
{ - (b) The property that is subject to exemption under
paragraph (a) of this subsection is tangible or intangible
property, property rights or property interests in or related to
the Pacific Northwest AC Intertie, as referenced in a written
capacity ownership agreement executed before November 4, 2005,
between the United States Department of Energy and the city or
public entity described in paragraph (a) of this subsection. - }
SECTION 33. { + The amendments to ORS 307.090 by section 32 of
this 2009 Act apply to property tax years beginning on or after
July 1, 2010. + }
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