Chapter 996 Oregon Laws 1999

Session Law

AN ACT

SB 1136

Relating to taxation.

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

SECTION 1. Sections 2 and 3 of this 1999 Act are added to and made a part of ORS chapter 314.

SECTION 2. (1) Notwithstanding ORS 305.270, 305.440 or 314.415 or any other provision of law establishing the finality of a personal income tax assessment, the Department of Revenue may issue a refund of personal income tax imposed on federal pension income for tax years beginning on or after January 1, 1991, to the extent the tax had been imposed on federal pension income attributable to federal employment occurring before October 1, 1991.

(2) A claim for refund under this section must be filed with the department on or before April 16, 2001.

(3) No refunds may be paid under this section prior to July 1, 2001.

(4) As used in this section, "federal pension" means any form of retirement allowance provided by the federal government, its agencies or its instrumentalities to retirees of the federal government or their beneficiaries.

SECTION 3. A refund under section 2 of this 1999 Act of tax that had been imposed upon the federal pension income of a deceased federal retiree or the deceased pension beneficiary of a federal retiree shall be allowed:

(1) To the personal representative of the estate of the deceased federal retiree or deceased federal pension beneficiary if the estate probate proceedings are still pending.

(2) To the person who has filed a small estate affidavit relating to the deceased federal retiree or deceased federal pension beneficiary under ORS 114.505 to 114.560.

(3) If the estate is not to be administered in a court having probate jurisdiction or if the estate has been closed, to a person in a group listed in ORS 293.490 (3) that is permitted to receive a refund under ORS 314.415 (7). For purposes of this subsection:

(a) The monetary limitations in ORS 293.490 to 293.500 shall not apply;

(b) The last illness and funeral expense payment provisions in ORS 293.495 (1)(e) shall not apply;

(c) The refund claim filed for payment pursuant to ORS 293.495 need not state whether there are other survivors in the group that includes the claimant, and the claim need not be in the form of a notarized affidavit; and

(d) The person receiving the refund shall be required to distribute the refund in equal shares to all persons in the group under ORS 293.490 (3) that is entitled to the refund.

Approved by the Governor August 20, 1999

Filed in the office of Secretary of State August 23, 1999

Effective date October 23, 1999

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