Chapter 43 Oregon Laws 1999

Session Law

AN ACT

SB 255

Relating to taxation; creating new provisions; and amending ORS 316.194.

Be It Enacted by the People of the State of Oregon:

SECTION 1. ORS 316.194 is amended to read:

316.194. (1) [The Oregon State Lottery Commission shall withhold from a lottery prize payment for a net prize that exceeds $5,000 an amount equal to eight percent of the lottery prize payment] If a lottery prize payment for a prize is $5,000 or more, and the payment is made to an individual, the Oregon State Lottery Commission shall withhold eight percent of the payment. A payment made to a partnership, estate, trust or corporation shall not be subject to the withholding of tax.

(2) The commission shall pay to the Department of Revenue any amounts withheld under this section in the time and manner provided by the department by rule.

(3) If a [net] prize exceeds $600 but is less than $5,000, the commission shall provide the prize recipient a notice of potential tax liability for each prize payment that is made with respect to the prize. Following the conclusion of a year in which a prize payment is made with respect to a [net] prize described in this subsection, the commission shall send to the prize recipient an income reporting form indicating the amount of the payment. A copy of the form shall be provided to the department.

[(4) As used in this section, "net prize" means the total amount of the lottery prize minus the purchase price of the lottery ticket or share entitling the prize recipient to payment.]

SECTION 2. The amendments to ORS 316.194 by section 1 of this 1999 Act apply to lottery prize payments made on or after the effective date of this 1999 Act.

Approved by the Governor April 19, 1999

Filed in the office of Secretary of State April 19, 1999

Effective date October 23, 1999

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