70th OREGON LEGISLATIVE ASSEMBLY--1999 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 4072

                           A-Engrossed

                        Senate Bill 1136
                  Ordered by the Senate July 7
            Including Senate Amendments dated July 7

Sponsored by Senator GEORGE


                             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.

    { - Creates subtraction from taxable income for pension
income attributable to employment before October 1, 1991, with a
state or local government of the United States other than this
state or a municipal corporation or political subdivision of this
state. - }
    { - Applies to tax years beginning on or after January 1,
2000. - }
   { +  Authorizes refund of personal income tax imposed on
federal pension income before October 1, 1991. + }

                        A BILL FOR AN ACT
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. + }
                         ----------