76th OREGON LEGISLATIVE ASSEMBLY--2011 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 3416
House Bill 3421
Sponsored by Representative READ
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.
Reduces rate of tax on capital gains of personal income and
corporate income and excise taxpayers if amount equal to gain is
invested in emerging growth business during tax year.
Applies to tax years beginning on or after January 1, 2011.
Takes effect on 91st day following adjournment sine die.
A BILL FOR AN ACT
Relating to rate of tax on capital gains; creating new
provisions; amending ORS 316.037, 316.122 and 317.061; and
prescribing an effective date.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 316.037, as amended by section 1, chapter 746,
Oregon Laws 2009, 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.
_______________________________________________________________
over $5,000 $100 plus 7%
____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 but not
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
over $125,000 $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
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
Over $125,000 but not
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
over $250,000 $11,110 plus 10.8%
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
of the excess
over $125,000
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
Over $250,000 $24,610 plus 11%
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
of the excess
over $250,000
_________________________________________________________________
____________________________________________________________
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) Except as provided in subparagraph (D) of this paragraph,
the minimum and maximum dollar amounts for each 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.
(D) The rate brackets applicable to taxable income in excess of
$125,000 may not 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.
(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) As used in this subsection, 'emerging growth
business' has the meaning given that term in ORS 348.701.
(b) Notwithstanding subsection (1) of this section, any gain
that is treated as net capital gain for federal tax purposes and
that is included in taxable income in this state shall be taxed
at the rate of ___ percent, if an amount equal to the gain is
invested in an emerging growth business during the tax year. + }
{ - (2) - } { + (3) + } 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) - } { + subsections (1) and (2) + } 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) - } { + (4) + } 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 - } { + subsections (1) and (2) of + }
this section.
SECTION 2. ORS 316.037, as amended by sections 1 and 2, chapter
746, Oregon Laws 2009, 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.
_______________________________________________________________
over $5,000 $100 plus 7%
____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 but not
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
over $125,000 $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
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
Over $125,000 $11,110 plus 9.9%
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
of the excess
over $125,000
____________________________________________________________
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) Except as provided in subparagraph (D) of this paragraph,
the minimum and maximum dollar amounts for each 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.
(D) The rate brackets applicable to taxable income in excess of
$125,000 may not 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.
(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) As used in this subsection, 'emerging growth
business' has the meaning given that term in ORS 348.701.
(b) Notwithstanding subsection (1) of this section, any gain
that is treated as net capital gain for federal tax purposes and
that is included in taxable income in this state shall be taxed
at the rate of ___ percent, if an amount equal to the gain is
invested in an emerging growth business during the tax year. + }
{ - (2) - } { + (3) + } 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) - } { + subsections (1) and (2) + } 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) - } { + (4) + } 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) - } { + subsections (1) and (2) + } of this
section.
SECTION 3. ORS 316.122 is amended to read:
316.122. (1) If the federal taxable income of husband and wife
(one being a part-year resident and the other a nonresident) is
determined on a joint federal return, their taxable income in
this state shall be separately determined, unless they elect to
file a joint return, in which case their tax on their joint
income shall be determined in this state pursuant to ORS 316.037
{ - (3) - } { + (4) + }.
(2) If the federal taxable income of husband and wife (one
being a full-year resident and the other a part-year resident) is
determined on a joint federal return, their taxable income in
this state shall be separately determined, unless they elect to
file a joint return, in which case their tax on their joint
income shall be determined in this state pursuant to ORS 316.037
{ - (2) - } { + (3) + }.
(3) If the federal taxable income of husband and wife (one
being a full-year resident and the other a nonresident) is
determined on a joint federal return, their taxable income in the
state shall be separately determined, unless they elect to file a
joint return, in which case their tax on their joint income shall
be determined in this state pursuant to ORS 316.037 { - (3) - }
{ + (4) + }.
(4) For purposes of computing the tax of a husband and wife
under this section, if one of the spouses is a full-year resident
individual, then as used in ORS 316.037 { - (2) or - }
(3) { + or (4) + }, that spouse's taxable income derived from
Oregon sources is that spouse's entire federal taxable income,
defined in the laws of the United States, with the modifications,
additions and subtractions provided in this chapter and other
laws of this state applicable to personal income taxation.
(5) The provisions of ORS 316.367 with respect to joint returns
apply if both husband and wife are part-year residents or
full-year nonresidents.
SECTION 4. ORS 317.061, as amended by sections 5 and 7, chapter
745, Oregon Laws 2009, is amended to read:
317.061. { + (1) + } The rate of the tax imposed by and
computed under this chapter is:
{ - (1) - } { + (a) + } Six and six-tenths percent of the
first $250,000 of taxable income, or fraction thereof; and
{ - (2) - } { + (b) + } Seven and six-tenths percent of any
amount of taxable income in excess of $250,000.
{ + (2)(a) As used in this subsection, 'emerging growth
business' has the meaning given that term in ORS 348.701.
(b) Notwithstanding subsection (1) of this section, any gain
that is treated as net capital gain for federal tax purposes and
that is included in taxable income in this state shall be taxed
at the rate of ___ percent, if an amount equal to the gain is
invested in an emerging growth business during the tax year. + }
SECTION 5. ORS 317.061, as amended by sections 5, 7 and 9,
chapter 745, Oregon Laws 2009, is amended to read:
317.061. { + (1) + } The rate of the tax imposed by and
computed under this chapter is:
{ - (1) - } { + (a) + } Six and six-tenths percent of the
first $10 million of taxable income, or fraction thereof; and
{ - (2) - } { + (b) + } Seven and six-tenths percent of any
amount of taxable income in excess of $10 million.
{ + (2)(a) As used in this subsection, 'emerging growth
business' has the meaning given that term in ORS 348.701.
(b) Notwithstanding subsection (1) of this section, any gain
that is treated as net capital gain for federal tax purposes and
that is included in taxable income in this state shall be taxed
at the rate of ___ percent, if an amount equal to the gain is
invested in an emerging growth business during the tax year. + }
SECTION 6. { + (1) The amendments to ORS 316.037 by section 1
of this 2011 Act apply to tax years beginning on or after January
1, 2011, and before January 1, 2012.
(2) The amendments to ORS 316.037 by section 2 of this 2011 Act
apply to tax years beginning on or after January 1, 2012.
(3) The amendments to ORS 317.061 by section 4 of this 2011 Act
apply to tax years beginning on or after January 1, 2011, and
before January 1, 2013.
(4) The amendments to ORS 317.061 by section 5 of this 2011 Act
apply to tax years beginning on or after January 1, 2013.
(5) The amendments to ORS 316.122 by section 3 of this 2011 Act
apply to tax years beginning on or after January 1, 2011. + }
SECTION 7. { + This 2011 Act takes effect on the 91st day
after the date on which the 2011 regular session of the
Seventy-sixth Legislative Assembly adjourns sine die. + }
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