Chapter 459 Oregon Laws 1999

Session Law

AN ACT

SB 530

Relating to taxation; amending ORS 316.143, 316.144, 442.561, 442.562, 442.563 and 442.564.

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

SECTION 1. ORS 316.143 is amended to read:

316.143. (1) A resident or nonresident individual certified as eligible under ORS 442.563, licensed under ORS chapter 677, who is engaged in the practice of medicine, and who has a rural practice that amounts to 60 percent of the individual's practice, shall be allowed an annual credit against taxes otherwise due under this chapter in the sum of $5,000[, not to exceed 10 tax years,] during the time in which the individual retains such practice and membership if the individual is actively practicing in and is a member of the medical staff of one of the following hospitals:

(a) A type A hospital designated as such by the Office of Rural Health;

(b) A type B hospital designated as such by the Office of Rural Health, so long as the type B hospital is not within the boundaries of a metropolitan statistical area, or if the hospital is located within the boundaries of a metropolitan statistical area, is located 30 or more highway miles from the closest hospital within the major population center in the metropolitan statistical area; [or]

(d) A rural critical access hospital.

(2) A nonresident shall be allowed the credit under this section in the proportion provided in ORS 316.117. 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)[(a)] For purposes of this section, an "individual's practice" shall be determined on the basis of actual time spent in practice each week in hours or days, whichever is considered by the Office of Rural Health to be more appropriate. In the case of a shareholder of a corporation or a member of a partnership, only the time of the individual shareholder or partner shall be considered and the full amount of the credit shall be allowed to each shareholder or partner who qualifies in an individual capacity.

[(b) If an individual applies on or before December 31, 2001, for eligibility for the tax credit allowed by this section under ORS 442.563 but fails to qualify for the credit for the tax year of the individual that begins in the calendar year 2001, the eligibility of the individual for a tax credit under this section shall cease. The individual not only shall not be allowed the credit under this section in the tax year beginning in the calendar year 2001, but also shall not be eligible for a tax credit under this section in any subsequent tax year.]

(4) As used in this section[,]:

(a) "Type A hospital," "type B hospital" and "type C hospital" have the meaning for those terms provided in ORS 442.470.

(b) "Rural critical access hospital" means a facility that meets the criteria set forth in 42 U.S.C. 1395i-4 (c)(2)(B) and that has been designated a critical access hospital by the Office of Rural Health and the Health Division.

SECTION 2. ORS 442.561 is amended to read:

442.561. The Office of Rural Health shall establish by rule criteria for certifying individuals who are licensed under ORS chapter 679 as eligible for the tax credit authorized by ORS 316.144. Upon application therefor[, filed on or before December 31, 2001,] and upon a finding that the applicant is or will be providing dental services to one or more rural communities and otherwise meets the eligibility criteria established by the office, the office shall certify individuals eligible for the tax credit authorized by ORS 316.144. [The tax credit authorized under ORS 316.144 applies to tax years beginning on and after January 1, 1995.]

SECTION 3. ORS 442.562 is amended to read:

442.562. The Office of Rural Health shall establish by rule criteria for certifying individuals who are licensed as podiatric physicians and surgeons under ORS chapter 677 as eligible for the tax credit authorized by ORS 316.144. Upon application therefor[, filed on or before December 31, 2001,] and upon a finding that the applicant is or will be providing podiatric services to one or more rural communities and otherwise meets the eligibility criteria established by the office, the office shall certify individuals eligible for the tax credit authorized by ORS 316.144. [The tax credit authorized by ORS 316.144 applies to tax years beginning on and after January 1, 1995.]

SECTION 4. ORS 442.563 is amended to read:

442.563. (1) Subject to ORS 442.560, the Office of Rural Health shall establish by rule criteria for certifying individuals eligible for the tax credit authorized by ORS 316.143, 316.144 or 316.146. Upon application therefor, [filed on or before December 31, 2001,] the office shall certify individuals eligible for the tax credit authorized by ORS 316.143. [The tax credit authorized under ORS 316.143 applies to tax years beginning on and after January 1, 1990.]

(2) The classification of rural hospitals for purposes of determining eligibility under this section shall be the classification of the hospital in effect on January 1, 1991.

SECTION 5. ORS 442.564 is amended to read:

442.564. The Office of Rural Health shall establish by rule criteria for certifying individuals who are licensed as optometrists under ORS 683.010 to 683.335 as eligible for the tax credit authorized by ORS 316.144. Upon application therefor[, filed on or before December 31, 2001,] and upon a finding that the applicant is or will be providing optometry services to one or more rural communities and otherwise meets the eligibility criteria established by the office, the office shall certify individuals eligible for the tax credit authorized by ORS 316.144.

SECTION 6. ORS 316.144 is amended to read:

316.144. A resident or nonresident individual who is certified as eligible under ORS 442.561, 442.562, 442.563 or 442.564, and is licensed as a physician or podiatric physician and surgeon under ORS chapter 677, registered as a physician assistant under ORS chapter 677, licensed as a nurse practitioner under ORS chapter 678, licensed as a certified registered nurse anesthetist under ORS chapter 678, licensed as a dentist under ORS chapter 679 or licensed as an optometrist under ORS 683.010 to 683.335 is entitled to the tax credit described in ORS 316.143 even if not a member of the hospital medical staff if the Office of Rural Health certifies that the individual:

(1) Has a rural practice that amounts to 60 percent of the individual's practice; and

(2) If a physician or a physician assistant, can cause a patient to be admitted to the hospital; and

(3) If a certified registered nurse anesthetist, is employed by or has a contractual relationship with one of the hospitals described in ORS 316.143 (1)[(a) to (c)]; and

(4) If an optometrist, has consulting privileges with a hospital listed in ORS 316.143 (1)[(a) to (c)]. This subsection does not apply to an optometrist who qualifies as a "frontier rural practitioner," as defined by the Office of Rural Health.

Approved by the Governor July 1, 1999

Filed in the office of Secretary of State July 2, 1999

Effective date October 23, 1999

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