Chapter 997 Oregon Laws 1999

Session Law

AN ACT

SB 873

Relating to taxation; creating new provisions; and amending section 48, chapter 556, Oregon Laws 1995.

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

SECTION 1. Section 48, chapter 556, Oregon Laws 1995, as amended by section 1, chapter 654, Oregon Laws 1997, is amended to read:

Sec. 48. (1) In the case of property described under ORS 316.707 (1), notwithstanding ORS 316.707 taxpayers may elect to claim as an addition to or subtraction from federal taxable income, whichever is applicable, an amount equal to the difference in the adjusted basis of the property for federal tax purposes and the adjusted basis of the property for state tax purposes that is attributable to ORS 316.707 (1).

(2) The election described under subsection (1) of this section shall be made on the return for the taxpayer's first tax year beginning after December 31, 1995, by reporting this amount on the taxpayer's return. [For each tax year after the year in which the election is made there shall be no modification to federal taxable income for the depreciation of the property under either ORS 316.707 or this section.] A deduction that is otherwise allowable under this section and that is not used by the taxpayer in a particular tax year may be carried forward and offset against the taxable income of the taxpayer for the next succeeding tax year. Any amount remaining unused in the next succeeding tax year may be carried forward and used in the second succeeding tax year, but may not be carried forward for any tax year thereafter.

(3) The election described under subsection (1) of this section may be revoked by filing an amended return within the time prescribed by law. [If the election is revoked, the revocation is final and may not be changed.]

SECTION 2. The amendments to section 48, chapter 556, Oregon Laws 1995, by section 1 of this 1999 Act apply to tax years beginning on or after January 1, 1996.

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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