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 3706
House Bill 3469
Sponsored by Representative HANNA; Representative BERGER
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.
Establishes personal income tax credit of $500 per dependent
child. Reduces personal income tax rates for certain taxpayers by
modifying income tax brackets.
Applies to tax years beginning on or after January 1, 2010.
A BILL FOR AN ACT
Relating to personal income taxation; creating new provisions;
and amending ORS 316.037 and 316.085.
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. { + A taxpayer shall be allowed a credit, in the
amount of $500 per dependent, against the taxes otherwise due
under this chapter for each dependent of the taxpayer who:
(1) Is a qualifying child, as defined in section 152 of the
Internal Revenue Code; and
(2) Is claimed by the taxpayer on the taxpayer's federal tax
return. + }
SECTION 3. 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 multiplied by - } the number of personal
exemptions allowed under section 151 of the Internal Revenue
Code { + less the number of dependents for whom a credit is
allowed under section 2 of this 2009 Act, multiplied by $90 + }.
(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.
(b) Recompute the dollar amount of the personal exemption
credit by multiplying $90 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 4. ORS 316.037 is amended to read:
316.037. (1)(a) A tax is imposed for each taxable year on the
entire taxable income of every resident of this state. The amount
of the tax shall be determined 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 taxable income The tax is: - }
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
{ -
Not over $2,000 5% of - }
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
{ -
taxable - }
{ -
income - }
{ -
Over $2,000 but not - }
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
{ -
o$100$plus07% - }
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
{ -
of the excess - }
{ -
over $2,000 - }
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
{ -
Over $5,000 $310 plus 9% - }
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
{ -
of the excess - }
{ -
over $5,000 - }
? _____________________________________________________________ ?
____________________________________________________________
END OF POSSIBLE IRREGULAR TABULAR TEXT
____________________________________________________________
________________________________________________________________
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
{ +
If taxable income The tax is: + }
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
{ +
Not over $5,800 5% of + }
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
{ +
taxable
income + }
{ +
Over $5,800 but not + }
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
{ +
o$290$plus07% + }
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
{ +
of the excess
over $5,800 + }
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
{ +
Over $14,600 $906 plus 9% + }
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
{ +
of the excess
over $14,600 + }
________________________________________________________________
____________________________________________________________
END OF POSSIBLE IRREGULAR TABULAR TEXT
____________________________________________________________
(b) For tax years beginning in each calendar year, the
Department of Revenue shall adopt a table that shall apply in
lieu of the table contained in paragraph (a) of this subsection,
as follows:
(A) The minimum and maximum dollar amounts for each rate
bracket for which a tax is imposed shall be increased by the
cost-of-living adjustment for the calendar year.
(B) The rate applicable to any rate bracket as adjusted under
subparagraph (A) of this paragraph shall not be changed.
(C) The amounts setting forth the tax, to the extent necessary
to reflect the adjustments in the rate brackets, shall be
adjusted.
(c) For purposes of paragraph (b) of this subsection, the
cost-of-living adjustment for any calendar year is 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 index for the
second quarter of the calendar year { - 1992 - } { +
2010 + }.
(d) As used in this subsection, '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.
(e) If any increase determined under paragraph (b) of this
subsection is not a multiple of $50, the increase shall be
rounded to the next lower multiple of $50.
(2) A tax is imposed for each taxable year upon the entire
taxable income of every part-year resident of this state. The
amount of the tax shall be computed under subsection (1) of this
section as if the part-year resident were a full-year resident
and shall be multiplied by the ratio provided under ORS 316.117
to determine the tax on income derived from sources within this
state.
(3) A tax is imposed for each taxable year on the taxable
income of every full-year nonresident that is derived from
sources within this state. The amount of the tax shall be
determined in accordance with the table set forth in subsection
(1) of this section.
SECTION 5. { + Section 2 of this 2009 Act and the amendments
to ORS 316.037 and 316.085 by sections 3 and 4 of this 2009 Act
apply to tax years beginning on or after January 1, 2010. + }
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