Chapter 316 — Personal
Income Tax
ORS sections in this chapter were
amended or repealed by the Legislative Assembly during its 2012 regular
session. See the table of ORS sections amended or repealed during the 2012
regular session: 2012 A&R Tables
New sections of law were adopted by the
Legislative Assembly during its 2012 regular session and are likely to be
compiled in this ORS chapter. See
sections in the following 2012 Oregon Laws chapters: 2012
Session Laws 0045
2011 EDITION
PERSONAL INCOME TAX
REVENUE AND TAXATION
GENERAL PROVISIONS
316.002 Short
title
316.003 Goals
316.007 Policy
316.012 Terms
have same meaning as in federal laws; federal law references
316.013 Determination
of federal adjusted gross income
316.018 Application
of Payment-in-Kind Tax Treatment Act of 1983
316.022 General
definitions
316.024 Application
of federal law to determination of taxable income
316.027 “Resident”
defined
316.028 Determination
of net operating loss, carryback and carryforward
316.029 Disallowance
of subtraction for amounts included in calculation of net operating loss
316.032 Department
to administer law; policy as to federal conflicts and technical corrections
316.037 Imposition
and rate of tax
316.042 Amount
of tax where joint return used
316.045 Tax
rate imposed on certain long-term capital gain from farming; requirements
316.047 Transitional
provision to prevent doubling income or deductions
316.048 Taxable
income of resident
316.054 Social
Security benefits to be subtracted from federal taxable income
316.056 Interest
or dividends on obligations of state or public bodies subtracted from federal
taxable income
316.074 Exemption
for service in Vietnam on missing status
316.076 Deduction
for physician in medically disadvantaged area
CREDITS
316.078 Tax
credit for dependent care expenses necessary for employment
316.079 Credit
for certain disabilities
316.082 Credit
for taxes paid another state; rules
316.085 Personal
exemption credit
316.087 Credit
for the elderly or permanently and totally disabled
316.099 Credit
for early intervention services for child with disability; rules of State Board
of Education
316.102 Credit
for political contributions
316.109 Credit
for tax by another jurisdiction on sale of residential property; rules
316.116 Credit
for alternative energy device or alternative fuel vehicle; rules
(Temporary provisions relating to tax
credit for manufactured dwelling park closures are compiled as notes following
ORS 316.116)
TAXATION OF NONRESIDENTS
316.117 Proration
between Oregon income and other income for nonresidents, part-year residents
and trusts
316.118 Pro
rata share of S corporation income of nonresident shareholder
316.119 Proration
of part-year resident’s income between Oregon income and other income;
alternative proration for pass-through entity items
316.122 Separate
or joint determination of income for husband and wife
316.124 Determination
of adjusted gross income of nonresident partner
316.127 Income
of nonresident from Oregon sources
316.130 Determination
of taxable income of full-year nonresident
316.131 Credit
allowed to nonresident for taxes paid to state of residence; exception
ADDITIONAL CREDITS
(Costs in Lieu of Nursing Home Care)
316.147 Definitions
for ORS 316.147 to 316.149
316.148 Credit
for expenses in lieu of nursing home care; limitation
316.149 Evidence
of eligibility for credit
(Retirement Income)
316.157 Credit
for retirement income
316.158 Effect
upon ORS 316.157 of determination of invalidity; severability
316.159 Subtraction
for certain retirement distributions contributed to retirement plan during
period of nonresidency; substantiation rules
COLLECTION OF TAX AT SOURCE OF PAYMENT
(Generally)
316.162 Definitions
for ORS 316.162 to 316.221
316.164 When
surety bond or letter of credit required of employer; enforcement
316.167 Withholding
of tax required; elective provisions for agricultural employees; liability of
supplier of funds to employer for taxes
316.168 Employer
required to file combined quarterly tax report
316.169 Circumstances
in which person other than employer required to withhold tax
316.171 Application
of tax and report to administration of tax laws
316.172 Tax
withholding tables to be prepared by department
316.177 Reliance
on withholding statement; penalty for statement without reasonable basis
316.182 Exemption
certificate
316.187 Amount
withheld is in payment of employee’s tax
316.189 Withholding
of state income taxes from certain periodic payments
316.191 Withholding
taxes at time and in manner other than required by federal law; rules
316.193 Withholding
of state income taxes from federal retired pay for members of uniformed
services
316.194 Withholding
from lottery prize payments; rules
316.196 Withholding
of state income taxes from federal retirement pay for civil service annuitant
316.197 Payment
to department by employer; interest on delinquent payments
316.198 Payment
by electronic funds transfer; phase-in; rules
316.202 Reports
by employer; waiver; penalty for failure to report; rules
316.207 Liability
for tax; warrant for collection; conference; appeal
316.209 Applicability
of ORS 316.162 to 316.221 when services performed by qualified real estate
broker or direct seller
316.212 Application
of penalties, misdemeanors and jeopardy assessment; employer as taxpayer
(Professional Athletic Teams)
316.213 Definitions
for ORS 316.213 to 316.219
316.214 Withholding
requirements for members of professional athletic teams
316.218 Annual
report of compensation paid to professional athletic team members
316.219 Rules
(Qualifying Film Productions)
316.220 Alternative
withholding requirements for qualifying film production compensation; rules;
refund prohibition
316.221 Disposition
of withheld amounts
NONRESIDENT REPORTING
316.223 Alternate
methods of filing, reporting and calculating liability for nonresident employer
and employee in state temporarily; rules
ESTATES AND TRUSTS
(Generally)
316.267 Application
of chapter to estates and certain trusts
316.272 Computation
and payment on estate or trust
316.277 Associations
taxable as corporations exempt from chapter
316.279 Treatment
of business trusts and business trusts income
(Resident Estates and Trusts)
316.282 Definitions
related to trusts and estates; rules
316.287 “Fiduciary
adjustment” defined; shares proportioned; rules
316.292 Credit
for taxes paid another state
316.298 Accumulation
distribution credit
(Nonresident Estates and Trusts)
316.302 “Nonresident
estate or trust” defined
316.307 Income
of nonresident estate or trust
316.312 Determination
of Oregon share of income
316.317 Credit
to beneficiary for accumulation distribution
RETURNS; PAYMENTS; REFUNDS
316.362 Persons
required to make returns
316.363 Returns;
instructions
316.364 Flesch
Reading Ease Score form instructions
316.367 Joint
return by husband and wife
316.368 When
joint return liability divided; showing of marital status and hardship; rules
316.369 Circumstances
where one spouse relieved of joint return liability; rules
316.372 Minor
to file return; unpaid tax assessable against parent; when parent may file for
minor
316.377 Individual
under disability
316.382 Returns
by fiduciaries
316.387 Election
for final tax determination by personal representative; period for assessment
of deficiency; discharge of personal representative from personal liability for
tax
316.392 Notice
of qualification of receiver and others
316.417 Date
return considered made or advance payment made
316.457 Department
may require copy of federal return
316.462 Change
of election
316.472 Tax
treatment of common trust fund; information return required
316.490 Refund
as contribution to Alzheimer’s Disease Research Fund
316.491 Refund
as contribution to Oregon Military Emergency Financial Assistance Program
316.493 Refund
as contribution for prevention of child abuse and neglect
DISTRIBUTION OF REVENUE
316.502 Distribution
of revenue to General Fund; working balance; refundable credit payments
PAYMENT OF ESTIMATED TAXES
316.557 Definition
of “estimated tax”
316.559 Application
of ORS 316.557 to 316.589 to estates and trusts
316.563 When
declaration of estimated tax required; exception; effect of short tax year;
content; amendment; rules
316.567 Joint
declaration of husband and wife; liability; effect on nonjoint returns; rules
316.569 When
declaration required of nonresident
316.573 When
individual not required to file declaration
316.577 Date
of filing declaration
316.579 Amount
of estimated tax to be paid with declaration; installment schedule; prepayment
of installment
316.583 Effect
of payment of estimated tax or installment; credit for overpayment of prior
year taxes; rules
316.587 Effect
of underpayment of estimated tax; computation of underpayment; interest; when
not imposed
316.588 When
interest on underpayment not imposed
316.589 Application
to short tax years and tax years beginning on other than January 1
MODIFICATIONS OF TAXABLE INCOME
(Generally)
316.680 Modification
of taxable income
316.681 Interest
or dividends to benefit self-employed or individual retirement accounts
316.683 State
exempt-interest dividends; rules
316.685 Federal
income tax deductions; accrual method of accounting required; adjustment for
federal earned income credit
316.687 Amount
in excess of standard deduction for child, if child’s income included on parent’s
federal return; limitation
316.690 Foreign
income taxes
316.695 Additional
modifications of taxable income; rules
316.697 Fiduciary
adjustment
316.698 Subtraction
for qualifying film production labor rebates
316.699 Subtraction
for college savings network account contributions; limitations; carryforward
316.707 Computation
of depreciation of property under federal law; applicability
316.716 Differences
in basis on federal and state return
316.737 Amount
specially taxed under federal law to be included in computation of state
taxable income
316.738 Modification
of taxable income when deferred gain is recognized as result of out-of-state
disposition of property
316.739 Deferral
of deduction for certain amounts deductible under federal law
316.744 Cash
payments for energy conservation
(Additional Personal Exemption Credits)
316.752 Definitions
for ORS 316.752 to 316.771
316.758 Additional
personal exemption credit for persons with severe disabilities
316.765 Additional
personal exemption credit for spouse of person with severe disability;
conditions
316.771 Proof
of status for exemption credit
(Exemptions)
316.777 Income
derived from sources within federally recognized Indian country exempt from tax
316.778 Small
city business development exemption; rules
316.783 Amounts
received for condemnation of Indian tribal lands
316.785 Income
derived from exercise of Indian fishing rights
316.787 Payments
to Japanese and Aleuts under Civil Liberties Act of 1988
316.789 Persian
Gulf Desert Shield active military service
316.791 Compensation
for active duty military service
(Exemption for Certain Sales or Closures
of Manufactured Dwelling Parks)
316.795 Exemption
for payments to tenants of manufactured dwelling parks upon termination of
rental agreement
(Additional Modifications of Taxable
Income)
316.806 Definitions
for ORS 316.806 to 316.818
316.812 Certain
traveling expenses
316.818 Proof
of expenses
316.821 Federal
election to deduct sales taxes; addition for state purposes
316.824 Definitions
for ORS 316.824 and 316.832
316.832 Travel
expenses for loggers
316.836 Qualified
production activities income
316.837 Addition
for federal prescription drug plan subsidies excluded for federal tax purposes
316.838 Art
object donation
316.844 Special
computation of gain or loss where farm use value used
316.845 Exception
to ORS 316.844
316.846 Scholarship
awards used for housing expenses
316.848 Individual
development accounts
316.852 Qualified
donations and sales to educational institutions
316.856 Severance
pay; rules
316.970 Effect
of chapter 493, Oregon Laws 1969
PENALTIES
316.992 Penalty
for filing incorrect return that is based on frivolous position or is intended
to delay or impede administration; appeal
GENERAL PROVISIONS
316.002 Short title.
This chapter may be cited as the Personal Income Tax Act of 1969. [1969 c.493 §1;
1995 c.79 §164]
316.003 Goals.
(1) The goals of the Legislative Assembly are to achieve for Oregon’s citizens
a tax system which recognizes:
(a)
Fairness and equity as its basic values; and
(b)
That the total tax system should use seven guiding principles as measures by
which to evaluate tax proposals.
(2)
Those guiding principles are:
(a)
Ability to pay;
(b)
Fairness;
(c)
Efficiency;
(d)
Even distribution;
(e)
The tax system should be equitable where the minimum aspects of a fair system
are:
(A)
That it shields genuine subsistence income from taxation;
(B)
That it is not regressive; and
(C)
That it imposes approximately the same tax burden on all households earning the
same income;
(f)
Adequacy; and
(g)
Flexibility.
(3)
To meet those goals of Oregon’s tax system, any tax must be considered in
conjunction with the effects of all other taxes on Oregonians. [1991 c.457 §1a]
Note:
316.003 was enacted into law by the Legislative Assembly but was not added to
or made a part of ORS chapter 316 or any series therein by legislative action.
See Preface to Oregon Revised Statutes for further explanation.
316.005 [1953
c.304 §1; repealed by 1969 c.493 §99]
316.007 Policy.
It is the intent of the Legislative Assembly, by the adoption of this chapter,
insofar as possible, to:
(1)
Make the Oregon personal income tax law identical in effect to the provisions
of the Internal Revenue Code relating to the measurement of taxable income of
individuals, estates and trusts, modified as necessary by the state’s
jurisdiction to tax and the revenue needs of the state;
(2)
Achieve this result by the application of the various provisions of the
Internal Revenue Code relating to the definition of income, exceptions and
exclusions therefrom, deductions (business and personal), accounting methods,
taxation of trusts, estates and partnerships, basis, depreciation and other
pertinent provisions relating to gross income as defined therein, modified as
provided in this chapter, resulting in a final amount called “taxable income”;
and
(3)
Impose a tax on residents of this state measured by taxable income wherever
derived and to impose a tax on the income of nonresidents that is ascribable to
sources within this state. [1969 c.493 §2; 1971 s.s. c.4 §1; 1987 c.293 §1;
1989 c.625 §1; 2003 c.46 §34]
316.010 [1953
c.304 §2; 1953 c.552 §1; repealed by 1969 c.493 §99]
316.012 Terms have same meaning as in
federal laws; federal law references. Any term used
in this chapter has the same meaning as when used in a comparable context in
the laws of the United States relating to federal income taxes, unless a
different meaning is clearly required or the term is specifically defined in
this chapter. Except where the Legislative Assembly has provided otherwise, any
reference in this chapter to the laws of the United States or to the Internal
Revenue Code refers to the laws of the United States or to the Internal Revenue
Code as they are amended and in effect:
(1)
On December 31, 2010; or
(2)
If related to the definition of taxable income, as applicable to the tax year
of the taxpayer. [1969 c.493 §3; 1971 s.s. c.4 §2; 1975 c.672 §3; 1983 c.162 §59;
1985 c.802 §1; 1987 c.293 §2; 1989 c.625 §2; 1991 c.457 §1; 1993 c.726 §27;
1995 c.556 §1; 1997 c.839 §1; 1999 c.224 §7; 2001 c.660 §35; 2003 c.77 §14;
2005 c.519 §9; 2005 c.832 §27; 2007 c.614 §12; 2008 c.45 §13; 2009 c.5 §23;
2009 c.909 §§24,25; 2010 c.82 §§24,25; 2011 c.7 §23]
316.013 Determination of federal adjusted
gross income. Unless the context requires otherwise and
notwithstanding ORS 316.012, whenever, in the calculation of Oregon taxable
income, reference to the taxpayer’s federal adjusted gross income is required
to be made, the taxpayer’s federal adjusted gross income shall be as determined
under the provisions of the Internal Revenue Code as they may be in effect for
the tax year of the taxpayer without any of the additions, subtractions or
other modifications or adjustments required under this chapter and other laws
of this state applicable to personal income taxation. [1985 c.802 §3a; 1999
c.580 §3; 2009 c.5 §29; 2009 c.909 §§31,32; 2010 c.82 §26]
316.014 [1985
c.802 §18; 1997 c.839 §2; 2003 c.77 §15; renumbered 316.028 in 2011]
316.015 [1953
c.304 §3; 1953 c.552 §2; 1959 c.211 §3; 1959 c.593 §1 (referred and rejected);
1963 c.627 §2 (referred and rejected); repealed by 1969 c.493 §99; amended by
1969 c.520 §41]
316.016 [1973
c.119 §2; repealed by 1975 c.672 §8]
316.017 [1969
c.493 §3a; repealed by 1969 c.493 §3b]
316.018 Application of Payment-in-Kind Tax
Treatment Act of 1983. The Payment-in-Kind Tax
Treatment Act of 1983 (P.L. 98-4, as amended by section 1061 of P.L. 98-369)
applies for purposes of determining Oregon taxable income under this chapter,
notwithstanding that the Act is not part of the Internal Revenue Code. [1985
c.802 §42; 2003 c.46 §35]
316.019 [1985
c.802 §46; repealed by 1997 c.839 §69]
316.020 [1953
c.304 §4; repealed by 1969 c.493 §99]
316.021 [1985
c.802 §58; 1987 c.293 §3; renumbered 314.029 in 1993]
316.022 General definitions.
As used in this chapter, unless the context requires otherwise:
(1)
“Department” means the Department of Revenue.
(2)
“Director” means the Director of the Department of Revenue.
(3)
“Individual” means a natural person, including aliens and minors.
(4)
A “nonresident” means an individual who is not a resident of this state.
(5)
“Part-year resident” means an individual taxpayer who changes status during a
tax year from resident to nonresident or from nonresident to resident.
(6)
“Taxable income” means the taxable income as defined in subsection (a) or (b),
section 63 of the Internal Revenue Code, with such additions, subtractions and
adjustments as are prescribed by this chapter.
(7)
“Taxpayer” means any natural person, estate, trust, or beneficiary whose income
is in whole or in part subject to the taxes imposed by this chapter, or any
employer required by this chapter to withhold personal income taxes from the
compensation of employees for remittance to the state. [1969 c.493 §§4,5,6,7,9
and 1969 c.520 §42b; 1985 c.141 §2; 1987 c.293 §4]
316.023 [1987
c.293 §§71,72,73; renumbered 314.033 in 1993]
316.024 Application of federal law to
determination of taxable income. Section 243
of the Tax Reform Act of 1986 (P.L. 99-514) does not apply for purposes of
determining taxable income under this chapter. [1987 c.293 §12a; 2003 c.46 §36]
316.025 [1953
c.304 §5; repealed by 1957 c.632 §1 (314.075 and 314.080 enacted in lieu of
316.025, 316.030, 317.015 and 317.020)]
316.027 “Resident” defined.
(1) For purposes of this chapter, unless the context requires otherwise:
(a)
“Resident” or “resident of this state” means:
(A)
An individual who is domiciled in this state unless the individual:
(i)
Maintains no permanent place of abode in this state;
(ii)
Does maintain a permanent place of abode elsewhere; and
(iii)
Spends in the aggregate not more than 30 days in the taxable year in this
state; or
(B)
An individual who is not domiciled in this state but maintains a permanent
place of abode in this state and spends in the aggregate more than 200 days of
the taxable year in this state unless the individual proves that the individual
is in the state only for a temporary or transitory purpose.
(b)
“Resident” or “resident of this state” does not include:
(A)
An individual who is a qualified individual under section 911(d)(1) of the
Internal Revenue Code for the tax year;
(B)
A spouse of a qualified individual under section 911(d)(1) of the Internal
Revenue Code, if the spouse has a principal place of abode for the tax year
that is not located in this state; or
(C)
A resident alien under section 7701(b) of the Internal Revenue Code who would
be considered a qualified individual under section 911(d)(1) of the Internal
Revenue Code if the resident alien were a citizen of the United States.
(2)
For purposes of subsection (1)(a)(B) of this section, a fraction of a calendar
day shall be counted as a whole day. [1969 c.493 §8; 1987 c.158 §49; 1995 c.79 §165;
1999 c.1096 §1]
316.028 Determination of net operating
loss, carryback and carryforward. (1) In the
computation of state taxable income the net operating loss, net operating loss
carryback and net operating loss carryforward shall be the same as that
contained in the Internal Revenue Code as it applies to the tax year for which
the return is filed and shall not be adjusted for any changes or modifications
contained in this chapter or by the case law of this state.
(2)
In the case of a nonresident, the net operating loss deduction, net operating
loss carryback and net operating loss carryforward shall be that described in
subsection (1) of this section which is attributable to Oregon sources.
(3)
If any provision in ORS 316.047 or 316.127 appears to require an adjustment to
a net operating loss, net operating loss carryback or net operating loss
carryforward contrary to the provisions of this section, that adjustment shall
not be made. [Formerly 316.014]
316.029 Disallowance of subtraction for
amounts included in calculation of net operating loss.
Notwithstanding ORS 316.739, a subtraction from federal taxable income is not
allowed for amounts included in the calculation of an Oregon net operating loss
under ORS 316.028. [2011 c.685 §2]
Note:
Sections 3 and 4, chapter 685, Oregon Laws 2011, provide:
Sec. 3. If a
taxpayer has claimed a subtraction for a previous tax year that is disallowed
under section 2 of this 2011 Act [316.029], the taxpayer may comply with
section 2 of this 2011 Act by filing an amended return or by adding to income
on the taxpayer’s return for the 2011 tax year the amount of the disallowed
subtraction. [2011 c.685 §3]
Sec. 4.
Sections 2 [316.029] and 3 of this 2011 Act apply to tax years beginning on or
after January 1, 2009. [2011 c.685 §4]
316.030 [1953
c.304 §6; repealed by 1957 c.632 §1 (314.075 and 314.080 enacted in lieu of
316.025, 316.030, 317.015 and 317.020)]
316.032 Department to administer law;
policy as to federal conflicts and technical corrections.
(1) The Department of Revenue shall administer and enforce this chapter.
(2)
Insofar as is practicable in the administration of this chapter, the department
shall apply and follow the administrative and judicial interpretations of the
federal income tax law. When a provision of the federal income tax law is the
subject of conflicting opinions by two or more federal courts, the department
shall follow the rule observed by the United States Commissioner of Internal
Revenue until the conflict is resolved. Nothing contained in this section
limits the right or duty of the department to audit the return of any taxpayer
or to determine any fact relating to the tax liability of any taxpayer.
(3)
When portions of the Internal Revenue Code incorporated by reference as
provided in ORS 316.007 or 316.012 refer to rules or regulations prescribed by
the Secretary of the Treasury, then such rules or regulations shall be regarded
as rules adopted by the department under and in accordance with the provisions
of this chapter, whenever they are prescribed or amended.
(4)(a)
When portions of the Internal Revenue Code incorporated by reference as
provided in ORS 316.007 or 316.012 are later corrected by an Act or a Title
within an Act of the United States Congress designated as an Act or Title
making technical corrections, then notwithstanding the date that the Act or
Title becomes law, those portions of the Internal Revenue Code, as so
corrected, shall be the portions of the Internal Revenue Code incorporated by
reference as provided in ORS 316.007 or 316.012 and shall take effect, unless
otherwise indicated by the Act or Title (in which case the provisions shall
take effect as indicated in the Act or Title), as if originally included in the
provisions of the Act being technically corrected. If, on account of this
subsection, any adjustment is required to an Oregon return that would otherwise
be prevented by operation of law or rule, the adjustment shall be made,
notwithstanding any law or rule to the contrary, in the manner provided under
ORS 314.135.
(b)
As used in this subsection, “Act or Title” includes any subtitle, division or
other part of an Act or Title. [1969 c.493 §10; 1985 c.802 §1a; 1987 c.293 §5;
1997 c.839 §3]
316.035 [1953
c.304 §117; repealed by 1969 c.493 §99 and 1969 c.520 §49]
316.037 Imposition and rate of tax.
(1)(a) A tax is imposed for each taxable year on the entire taxable income of
every resident of this state. The amount of the tax shall be determined in
accordance with the following table:
______________________________________________________________________________
If taxable
income is: The
tax is:
Not over $2,000 5%
of
taxable
income
Over $2,000 but
not
over $5,000 $100
plus 7%
of
the excess
over
$2,000
Over $5,000 but
not
over $125,000 $310
plus 9%
of
the excess
over
$5,000
Over $125,000 $11,110
plus 9.9%
of
the excess
over
$125,000
______________________________________________________________________________
(b) For tax years beginning in each
calendar year, the Department of Revenue shall adopt a table that shall apply
in lieu of the table contained in paragraph (a) of this subsection, as follows:
(A) Except as provided in subparagraph (D)
of this paragraph, the minimum and maximum dollar amounts for each bracket for
which a tax is imposed shall be increased by the cost-of-living adjustment for
the calendar year.
(B) The rate applicable to any rate
bracket as adjusted under subparagraph (A) of this paragraph shall not be
changed.
(C) The amounts setting forth the tax, to
the extent necessary to reflect the adjustments in the rate brackets, shall be
adjusted.
(D) The rate brackets applicable to
taxable income in excess of $125,000 may not be adjusted.
(c) For purposes of paragraph (b) of this
subsection, the cost-of-living adjustment for any calendar year is the
percentage (if any) by which the monthly averaged U.S. City Average Consumer
Price Index for the 12 consecutive months ending August 31 of the prior
calendar year exceeds the monthly averaged index for the second quarter of the
calendar year 1992.
(d) As used in this subsection, “U.S. City
Average Consumer Price Index” means the U.S. City Average Consumer Price Index
for All Urban Consumers (All Items) as published by the Bureau of Labor
Statistics of the United States Department of Labor.
(e) If any increase determined under paragraph
(b) of this subsection is not a multiple of $50, the increase shall be rounded
to the next lower multiple of $50.
(2) A tax is imposed for each taxable year
upon the entire taxable income of every part-year resident of this state. The
amount of the tax shall be computed under subsection (1) of this section as if
the part-year resident were a full-year resident and shall be multiplied by the
ratio provided under ORS 316.117 to determine the tax on income derived from
sources within this state.
(3) A tax is imposed for each taxable year
on the taxable income of every full-year nonresident that is derived from
sources within this state. The amount of the tax shall be determined in
accordance with the table set forth in subsection (1) of this section. [1969
c.493 §11; 1975 c.674 §1; 1977 c.872 §1; 1979 c.649 §1; 1983 c.684 §23; 1985
c.141 §1; 1987 c.293 §6; 1991 c.457 §1b; 2001 c.660 §11; 2003 c.46 §37; 2009
c.746 §§1,2]
316.040
[1953 c.304 §7; repealed by 1969 c.493 §99]
316.042
Amount of tax where joint return used. In the case
of a joint return of husband and wife, pursuant to ORS 316.122 or pursuant to
ORS 316.367, the tax imposed by ORS 316.037 shall be twice the tax which would
be imposed if the taxable income were cut in half. For purposes of this
section, a return of a head of household or a surviving spouse, as defined in
subsections (a) and (b) of section 2 of the Internal Revenue Code, shall be
treated as a joint return of husband and wife. [1969 c.493 §12; 1975 c.674 §2;
1987 c.293 §7; 1987 c.647 §10]
316.045
Tax rate imposed on certain long-term capital gain from farming; requirements.
(1) As used in this section:
(a) “Farming” means:
(A) Raising, harvesting and selling crops;
(B) Feeding, breeding, managing or selling
livestock, poultry, fur-bearing animals or honeybees or the produce thereof;
(C) Dairying and selling dairy products;
(D) Stabling or training equines,
including but not limited to providing riding lessons, training clinics and
schooling shows;
(E) Propagating, cultivating, maintaining
or harvesting aquatic species and bird and animal species to the extent allowed
by the rules adopted by the State Fish and Wildlife Commission;
(F) On-site constructing and maintaining
equipment and facilities used for the activities described in this subsection;
(G) Preparing, storing or disposing of, by
marketing or otherwise, the products or by-products raised for human or animal
use on land employed in activities described in this subsection; or
(H) Any other agricultural or horticultural
activity or animal husbandry, or any combination of these activities, except
that “farming” does not include growing and harvesting trees of a marketable
species other than growing and harvesting cultured Christmas trees or certain
hardwood timber described in ORS 321.267 (3) or 321.824 (3).
(b) “Section 1231 gain” has the meaning
given that term in section 1231 of the Internal Revenue Code.
(2) Notwithstanding ORS 316.037, taxable
income that consists of net long-term capital gain shall be subject to tax
under this chapter at a rate of five percent if all of the following conditions
apply:
(a) The gain is:
(A) Derived from the sale or exchange of
capital assets consisting of ownership interests in a corporation, partnership
or other entity in which, prior to the sale or exchange, the taxpayer owned at
least a 10 percent ownership interest; or
(B) Section 1231 gain.
(b) The property that was sold or
exchanged consisted of:
(A) Ownership interests in a corporation,
partnership or other entity that is engaged in the trade or business of
farming; or
(B) Property that is predominantly used in
the trade or business of farming.
(c) The sale or exchange is to a person
who is not related to the taxpayer under section 267 of the Internal Revenue
Code.
(d) The sale or exchange constitutes a
substantially complete termination of all of the taxpayer’s ownership interests
in a trade or business that is engaged in farming or a substantially complete
termination of all of the taxpayer’s ownership interests in property that is
employed in the trade or business of farming. Ownership of a farm dwelling or
farm homesite does not constitute ownership of property employed in the trade
or business of farming.
(3) If the taxpayer has net long-term
capital gain derived in part from the sale or exchange of property described in
subsection (2)(b) of this section and in part from the sale or exchange of all
other property, the net long-term capital gain that is subject to tax under
this section shall be determined as follows:
(a) Compute the net long-term capital gain
derived from all property described in subsection (2)(b) of this section that
was sold or exchanged during the tax year.
(b) Compute the net capital gain or loss
from the sale or exchange of all other property during the tax year.
(c) If the amount determined under
paragraph (b) of this subsection is a net capital gain, the gain that is
subject to tax under subsection (2) of this section shall be the amount
determined under paragraph (a) of this subsection.
(d) If the amount determined under
paragraph (b) of this subsection is a net capital loss, the gain that is
subject to tax under subsection (2) of this section shall be the amount
determined under paragraph (a) of this subsection minus the amount determined
under paragraph (b) of this subsection. [2001 c.545 §2; 2003 c.454 §123; 2003
c.621 §98a]
316.047
Transitional provision to prevent doubling income or deductions.
If any provision of the Internal Revenue Code or of this chapter requires that
any amount be added to or deducted from federal gross income or the net income
taxable under this chapter that previously had been added to or deducted from
net income taxable under the Oregon law in effect prior to the taxpayer’s
taxable year as to which this chapter is first effective, then, in such event,
appropriate adjustment shall be made to the net income for the year or years
subject to this chapter so as to prohibit the double taxation or the double
deduction of any such amount that previously had entered into the computation
of taxable income. Differences such as the difference in basis of property used
by the taxpayer for federal and Oregon income tax returns and on account of the
treatment of operating losses shall be resolved by application of this principle.
However, the Department of Revenue, in its audit of a return, shall not apply
any adjustment under this section which, in its opinion, if applied would
result in an increase or decrease of tax liability of less than $25. [1969
c.493 §13; 1987 c.293 §8]
316.048
Taxable income of resident. The entire taxable income of a
resident of this state is the federal taxable income of the resident as defined
in the laws of the United States, with the modifications, additions and
subtractions provided in this chapter and other laws of this state applicable
to personal income taxation. [Formerly 316.062; 1999 c.580 §4]
316.049
[1977 c.755 §2; renumbered 316.777]
316.050
[1977 c.553 §2; renumbered 316.783]
316.051
[1977 c.390 §2; renumbered 316.788]
316.052
[1977 c.390 §3; 1979 c.691 §2; renumbered 316.794]
316.053
[1977 c.390 §4; renumbered 316.799]
316.054
Social Security benefits to be subtracted from federal taxable income.
In addition to the other modifications to federal taxable income contained in
this chapter, there shall be subtracted from federal taxable income the amount
of any Social Security benefits, as defined in section 86 of the Internal
Revenue Code (Title II Social Security or tier 1 railroad retirement benefits)
included in gross income for federal income tax purposes under section 86 of
the Internal Revenue Code. [1985 c.154 §2; 1997 c.839 §4]
316.055
[1953 c.304 §8; 1953 c.552 §3; 1957 s.s. c.15 §1; 1963 c.627 §3 (referred and
rejected); repealed by 1969 c.493 §99]
316.056
Interest or dividends on obligations of state or public bodies subtracted from
federal taxable income. In addition to the modifications
to federal taxable income contained in this chapter, there shall be subtracted
from federal taxable income the interest or dividends on obligations of the
State of Oregon or a public body, as defined in ORS 287A.001, to the extent
includable in gross income for federal income tax purposes. However, the amount
subtracted under this section shall be reduced by any interest on indebtedness
incurred to carry the obligations or securities described in this section, and
by any expenses incurred in the production of interest or dividend income
described in this section. [1987 c.293 §23b; 1989 c.988 §1; 2007 c.783 §126]
316.057
[1977 c.872 §8; renumbered 316.806]
316.058
[1977 c.872 §9; renumbered 316.812]
316.059
[1977 c.872 §10; renumbered 316.818]
316.060
[1953 c.304 §9; 1955 c.596 §1; part derived from 1955 c.596 §4; 1957 c.586 §1;
1957 s.s. c.15 §2; 1959 c.593 §2 (referred and rejected); 1963 c.627 §4
(referred and rejected); repealed by 1969 c.493 §99; amended by 1969 c.520 §42]
316.061
[1979 c.887 §2; renumbered 316.824]
316.062
[1969 c.493 §14; renumbered 316.048]
316.063
[1979 c.887 §§3,4; renumbered 316.832]
316.064
[1979 c.707 §2; renumbered 316.838]
316.065
[1953 c.304 §10; repealed by 1959 c.593 §14 (referred and rejected); repealed
by 1963 c.627 §23 (referred and rejected); repealed by 1969 c.493 §99]
316.066
[1973 c.753 §2; repealed by 1979 c.414 §7]
316.067
[1969 c.493 §15; 1971 c.686 §12; 1971 c.736 §1; 1973 c.1 §1; 1973 c.88 §1; 1973
c.402 §18; 1973 c.753 §3; 1977 c.784 §1; 1979 c.414 §5; 1979 c.436 §1; 1979
c.579 §7; 1983 c.381 §1; renumbered 316.680]
316.068
[1975 c.672 §§2,2a,10b,13; subsection (7) enacted as 1975 c.650 §2; 1977 c.795 §10;
1977 c.872 §12; 1978 c.9 §1; 1979 c.240 §1; 1979 c.436 §6; 1981 c.679 §1; 1981
c.896 §1; 1983 c.684 §6; renumbered 316.695]
316.069
[1981 c.778 §34; renumbered 316.744]
316.070
[1953 c.304 §13; repealed by 1969 c.493 §99]
316.071
[1981 c.801 §2; renumbered 316.690]
316.072
[1969 c.467 §6; 1979 c.376 §1; 1981 c.705 §1; renumbered 316.685]
316.073
[1975 c.672 §12; repealed by 1991 c.457 §24]
316.074
Exemption for service in Vietnam on missing status.
(1) Any compensation or gratuity received from any source by any individual by
reason of civilian or military service on and after February 28, 1961, during
the Vietnam conflict, for any month during any part of which such individual is
in a missing status as a result of that conflict, is exempt from tax under this
chapter. Any such compensation or gratuity is exempt from tax without regard
to:
(a) The identity of the recipient of the
compensation or gratuity;
(b) The death of the individual whose
service in a missing status results in payment of the compensation or the
gratuity; or
(c) A date of death established for the
individual whose service in a missing status results in payment of the
compensation or the gratuity.
(2) As used in this section:
(a) “Compensation” does not include any
pension or retirement allowance.
(b) “Missing status” means the status of
an individual who is carried or determined to be in a status of missing;
missing in action; interned in a foreign country; captured, beleaguered or besieged
by a hostile force; or detained in a foreign country against the will of the
individual. “Missing status” does not include the status of an individual for a
period during which the individual is officially determined to be absent from a
post of duty without authority.
(3) In addition to the income tax relief
provided by this section, any provision in the laws of the United States or in
the Internal Revenue Code providing income tax relief for returning prisoners
of war, persons in a missing status, their spouses, heirs, devisees or
executors shall apply to the measurement of the taxable income of individuals,
estates and trusts. [1973 c.475 §§2,3; 1975 c.672 §4; 1997 c.839 §5]
316.075
[1953 c.304 §11; 1953 c.522 §4; 1959 c.593 §3 (referred and rejected); 1963
c.627 §5 (referred and rejected); repealed by 1969 c.493 §99]
316.076
Deduction for physician in medically disadvantaged area.
(1) Any person who becomes licensed under ORS chapter 677 on or after January
1, 1974, and prior to January 1, 1982, and enters the practice of medicine in
any medically disadvantaged area of this state may deduct as an expense from
income earned from the practice of medicine an amount equal to the annual
expense incurred for each year in attending medical school, including tuition,
fees, living expenses and other actual and necessary expenses, but not to
exceed $10,000 for any year.
(2) In order to qualify for the exemption
granted by subsection (1) of this section, the person must apply to the
Department of Revenue on or before April 15, following the first tax year for
which the deduction is claimed on a form prescribed by the department and
accompanied by evidence from the Oregon Medical Board that the area in which
the person is practicing was medically disadvantaged when the physician entered
practice there.
(3) The deduction authorized by subsection
(1) of this section shall be applicable for four tax years. [1973 c.644 §6;
1979 c.699 §1]
316.077
[1969 c.493 §16; renumbered 316.697]
CREDITS
316.078
Tax credit for dependent care expenses necessary for employment.
(1) A resident individual shall be allowed a credit against the tax otherwise
due under this chapter in an amount equal to a percentage of employment-related
expenses allowable pursuant to section 21 of the Internal Revenue Code,
notwithstanding the limitation imposed by section 26 of the Internal Revenue
Code. The percentage shall be determined on the basis of federal taxable
income, as defined in section 63 of the Internal Revenue Code and as reflected
on the federal return, whether or not a joint return, of the taxpayer for the
taxable year, in accordance with the following table:
______________________________________________________________________________
If federal
taxable
income is: The
percentage is:
Not over $5,000 30%
Over $5,000 but not
over $10,000 15%
Over $10,000 but not
over $15,000
8%
Over $15,000 but not
over $25,000
6%
Over $25,000 but not
over $35,000
5%
Over $35,000 but not
over $45,000
4%
Over $45,000
0%
______________________________________________________________________________
(2) A nonresident individual shall be
allowed the credit computed in the same manner and subject to the same
limitations as the credit allowed a resident by subsection (1) of this section.
However, the credit shall be prorated using the proportion provided in ORS
316.117.
(3) If a change in the taxable year of a
taxpayer occurs as described in ORS 314.085, or if the Department of Revenue
terminates the taxpayer’s taxable year under ORS 314.440, the credit allowed by
this section shall be prorated or computed in a manner consistent with ORS
314.085.
(4) 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.
(5) Any tax credit otherwise allowable
under this section which is not used by the taxpayer in a particular year may
be carried forward and offset against the taxpayer’s tax liability for the next
succeeding tax year. Any credit remaining unused in such next succeeding tax
year may be carried forward and used in the second succeeding tax year, and
likewise any credit not used in that second succeeding tax year may be carried
forward and used in the third succeeding tax year, and any credit not used in
that third succeeding tax year may be carried forward and used in the fourth
succeeding tax year, and any credit not used in that fourth succeeding tax year
may be carried forward and used in the fifth succeeding tax year, but may not
be carried forward for any tax year thereafter. [1975 c.672 §15a; 1977 c.872 §3;
1979 c.691 §4; 1983 c.684 §9; 1985 c.802 §4; 1987 c.293 §10; 1989 c.625 §7;
1989 c.1047 §11; 1991 c.457 §2; 1993 c.726 §28; 1997 c.839 §6; 1999 c.90 §8;
2001 c.660 §36]
Note:
Section 44, chapter 913, Oregon Laws 2009, provides:
Sec.
44. Except as provided in ORS 316.078 (5),
a credit may not be claimed under ORS 316.078 for tax years beginning on or
after January 1, 2016. [2009 c.913 §44]
316.079
Credit for certain disabilities. A $50 credit,
against income taxes owed, shall be allowed a taxpayer who as of the close of
the taxable year has suffered a permanent and complete loss of function of both
legs or both arms or one leg and one arm as certified to by a public health
officer. The certificate shall be in a form prescribed by the Department of
Revenue and shall be filed with the first return in which the credit is
claimed. [1973 c.120 §2]
Note:
Section 41, chapter 913, Oregon Laws 2009, provides:
Sec.
41. A credit may not be claimed under ORS
316.079 for tax years beginning on or after January 1, 2016. [2009 c.913 §41]
316.080
[1953 c.304 §12; renumbered 316.475]
316.081
[1973 c.503 §15; 1975 c.705 §11; 1981 c.502 §1; renumbered 316.844]
316.082
Credit for taxes paid another state; rules. (1) A
resident individual shall be allowed a credit against the tax otherwise due
under this chapter for the amount of any income tax imposed on the individual,
or on an Oregon S corporation or Oregon partnership of which the individual is
a member (to the extent of the individual’s pro rata share of the S corporation
or distributive share of the partnership), for the tax year by another state on
income derived from sources therein and that is also subject to tax under this
chapter.
(2) The credit provided under this section
shall not exceed the proportion of the tax otherwise due under this chapter
that the amount of the modified adjusted gross income of the taxpayer derived
from sources in the other state bears to the entire modified adjusted gross
income of the taxpayer.
(3) The Department of Revenue shall
provide by rule the procedure for obtaining credit provided by this section and
the proof required. The requirement of proof may be waived partially,
conditionally or absolutely, as provided under ORS 315.063.
(4) No credit allowed under this section
or ORS 316.292 shall be applied in calculating tax due under this chapter if
the tax upon which the credit is based has been claimed as a deduction, unless
the tax upon which the credit is based is restored to income on the Oregon
return.
(5) Credit shall not be allowed under this
section for income taxes paid to a state that allows a nonresident a credit
against the income taxes imposed by that state for taxes paid or payable to the
state of residence. It is the purpose of this subsection to avoid duplicative
taxation through use of a nonresident, rather than a resident, credit for taxes
paid or payable to another state.
(6) The Department of Revenue may adopt
rules under this section that provide a credit against the tax imposed by this
chapter when the department considers the credit necessary to avoid taxation of
the same income by this state and another state.
(7) As used in this section:
(a) “Modified adjusted gross income” means
federal adjusted gross income as modified by this chapter and the other laws of
this state applicable to personal income taxation.
(b) “Oregon partnership” means an entity
that is treated as a partnership for Oregon excise and income tax purposes.
(c) “Oregon S corporation” means a
corporation that has elected S corporation status for Oregon excise and income
tax purposes.
(d) “State” means a state, district,
territory or possession of the United States.
(8) For purposes of this section:
(a) A direct tax imposed upon income of an
Oregon S corporation is an income tax imposed on the Oregon S corporation.
(b) An excise tax that is measured by
income of an Oregon S corporation is an income tax imposed on the Oregon S
corporation.
(c) An excise tax is measured by income
only if the statute imposing the excise tax provides that the base for the
excise tax:
(A) Includes revenue from sales and from
services rendered, and income from investments; and
(B) Permits a deduction for the cost of
goods sold and the cost of services rendered. [1969 c.493 §17; 1981 c.801 §3;
1987 c.647 §11; 1991 c.838 §6; 1993 c.726 §28a; 1995 c.54 §7; 1999 c.74 §5;
2001 c.9 §1]
316.083
[1977 c.666 §35; 1995 c.556 §2; renumbered 316.845 in 2005]
316.084
[1981 c.720 §16; 1983 c.684 §10; 1991 c.877 §1; repealed by 1993 c.730 §9
(315.134 enacted in lieu of 316.084, 317.133 and 318.080)]
316.085
Personal exemption credit. (1)(a) There shall be allowed a
personal exemption credit against taxes otherwise due under this chapter. The
credit shall equal $90 multiplied by the number of personal exemptions allowed
under section 151 of the Internal Revenue Code.
(b) In the case of an individual with
respect to whom a credit under paragraph (a) of this subsection is allowable to
another taxpayer for a taxable year beginning in the calendar year in which the
individual’s taxable year begins, the credit amount applicable to such
individual for such individual’s taxable year is zero.
(2)(a) A nonresident shall be allowed the
credit provided under subsection (1) of this section computed in the same
manner and subject to the same limitations as the credit allowed to a resident
of this state. However, the credit shall be prorated using the proportion
provided in ORS 316.117.
(b) If a change in the taxable year of a
taxpayer occurs as described in ORS 314.085, or if the Department of Revenue
terminates the taxpayer’s taxable year under ORS 314.440, the credit allowed by
this section shall be prorated or computed in a manner consistent with ORS
314.085.
(c) 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) The Department of Revenue shall
recompute the dollar amount of the personal exemption credit allowed for state
personal income tax purposes. The computation shall be as follows:
(a) Divide the monthly averaged U.S. City
Average Consumer Price Index for the 12 consecutive months ending August 31 of
the prior calendar year by the monthly averaged index for the first six months
of 1986.
(b) Recompute the dollar amount of the
personal exemption credit by multiplying $90 by the appropriate indexing factor
determined as provided in paragraph (a) of this subsection. Round off the
amount obtained under this paragraph to the nearest $1.
(4) As used in this section, “U.S. City
Average Consumer Price Index” means the U.S. City Average Consumer Price Index
for All Urban Consumers (All Items) as published by the Bureau of Labor
Statistics of the United States Department of Labor.
(5) Notwithstanding subsections (1) to (3)
of this section, if a taxpayer’s federal adjusted gross income for the tax year
exceeds the threshold amount, the exemption amount shall be the greater of:
(a) Thirty-three percent of the amount
computed in subsection (3) of this section; or
(b) The amount computed in subsection (3)
of this section reduced by:
(A) Two percentage points for each $2,500
(or fraction thereof) by which the taxpayer’s federal adjusted gross income
exceeds the threshold amount; or
(B) Two percentage points for each $1,250
(or fraction thereof) by which the taxpayer’s federal adjusted gross income
exceeds the threshold amount, if the taxpayer is married but filing separately.
(6) As used in this section, “threshold
amount” means:
(a) $234,600 in the case of a joint return
or a surviving spouse.
(b) $195,500 in the case of a head of a
household.
(c) $156,400 in the case of an individual
who is not a married individual and is not a surviving spouse.
(d) $117,300 in the case of a married
individual filing a separate return.
(7) The Department of Revenue shall adjust
the threshold amounts in subsection (6) of this section according to the
cost-of-living adjustment for the calendar year. The department shall annually
recompute the threshold amounts for the current tax year by multiplying each
dollar amount by the percentage (if any) by which the monthly averaged U.S.
City Average Consumer Price Index for the 12 consecutive months ending August
31 of the prior calendar year exceeds the monthly averaged U.S. City Average
Consumer Price Index for the 12 consecutive months ending August 31, 2006.
(8) If a threshold amount computed under
subsections (6) and (7) of this section is not a multiple of $50, the amount
shall be rounded to the next lower multiple of $50. [1985 c.345 §§2,3; 1987
c.293 §13; 1991 c.457 §2a; 1997 c.839 §8; 1999 c.90 §9; 2001 c.660 §12; 2007 c.843
§63]
316.086
[1979 c.733 §2; 1983 c.684 §11; 1989 c.880 §12; repealed by 1995 c.746 §22]
316.087
Credit for the elderly or permanently and totally disabled.
(1) A resident individual shall be allowed a credit against the tax otherwise
due under this chapter in an amount equal to 40 percent of the credit for the
elderly or the permanently and totally disabled allowable pursuant to section
22 of the Internal Revenue Code, notwithstanding the limitation imposed by
section 26 of the Internal Revenue Code.
(2) A nonresident individual shall be
allowed the credit computed in the same manner and subject to the same
limitations as the credit allowed a resident by subsection (1) of this section.
However, the credit shall be prorated using the proportion provided in ORS
316.117.
(3) If a change in the taxable year of a
taxpayer occurs as described in ORS 314.085, or if the Department of Revenue
terminates the taxpayer’s taxable year under ORS 314.440, the credit allowed by
this section shall be prorated or computed in a manner consistent with ORS
314.085.
(4) 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.
(5) No credit shall be allowed under this
section for the taxable year if the taxpayer claims the credit allowed under
ORS 316.157. [1969 c.493 §18; 1971 c.736 §2; 1977 c.872 §4; 1979 c.691 §5; 1983
c.684 §12; 1985 c.802 §5; 1987 c.293 §14; 1987 c.545 §1; 1989 c.625 §8; 1991
c.457 §3; 1991 c.823 §2; 1993 c.726 §29; 1997 c.839 §9; 1999 c.90 §10; 2001
c.660 §37]
Note:
Section 40, chapter 913, Oregon Laws 2009, provides:
Sec.
40. A credit may not be claimed under ORS
316.087 for tax years beginning on or after January 1, 2016. [2009 c.913 §40]
316.088
[1977 c.811 §2; 1979 c.534 §1; 1981 c.894 §1; 1983 c.684 §13; 1989 c.648 §64;
repealed by 1991 c.877 §41]
316.089
[1977 c.852 §2; 1979 c.622 §2; 1985 c.521 §3; repealed by 1993 c.730 §15
(315.154 enacted in lieu of 316.089)]
316.091
[1977 c.852 §3; 1979 c.622 §3; 1985 c.630 §1; repealed by 1993 c.730 §17
(315.156 enacted in lieu of 316.091, 317.148 and 318.104)]
316.092
[1969 c.493 §19; repealed by 1973 c.402 §30]
316.093
[1977 c.839 §8; 1979 c.412 §5a; repealed by 1987 c.769 §20]
316.094
[1979 c.578 §7; 1985 c.749 §1; 1987 c.605 §1; 1989 c.887 §1; 1991 c.714 §6;
1991 c.877 §2; repealed by 1993 c.730 §7 (315.104 enacted in lieu of 316.094,
317.102 and 318.110)]
316.095
[1987 c.890 §§2,3; 1989 c.953 §1; 1991 c.781 §1; 1995 c.54 §8; 2003 c.46 §38;
repealed by 2011 c.83 §15]
316.096
[1987 c.591 §13; 1989 c.381 §§8,11,14; 1991 c.877 §§3,4,5; 1991 c.916 §§14,16,17;
1993 c.18 §§77,78,79; repealed by 1997 c.170 §33]
316.097
[See 316.480; 1973 c.831 §8; 1977 c.795 §11; 1977 c.866 §10; 1979 c.691 §6;
1981 c.408 §1; 1983 c.637 §6; 1987 c.596 §2; 1989 c.802 §2; 1991 c.877 §6;
repealed by 1993 c.730 §29 (315.304 enacted in lieu of 316.097 and 317.116)]
316.098
[1985 c.438 §2; 1991 c.877 §9; repealed by 1993 c.730 §13 (315.148 enacted in
lieu of 316.098, 317.150 and 318.102)]
316.099
Credit for early intervention services for child with disability; rules of
State Board of Education. (1) As used in this section,
unless the context requires otherwise:
(a) “Child with a disability” means a
qualifying child under section 152 of the Internal Revenue Code who has been
determined eligible for early intervention services or is diagnosed for the
purposes of special education as being mentally retarded, multidisabled,
visually impaired, hard of hearing, deaf-blind, orthopedically impaired or
other health impaired or as having autism, emotional disturbance or traumatic
brain injury, in accordance with State Board of Education rules.
(b) “Early intervention services” means
programs of treatment and habilitation designed to address a child’s
developmental deficits in sensory, motor, communication, self-help and
socialization areas.
(c) “Special education” means specially
designed instruction to meet the unique needs of a child with a disability,
including regular classroom instruction, instruction in physical education,
home instruction and instruction in hospitals, institutions and special
schools.
(2) The State Board of Education shall
adopt rules further defining “child with a disability” for purposes of this
section. A diagnosis obtained for the purposes of entitlement to special
education or early intervention services shall serve as the basis for a claim
for the additional credit allowed under subsection (3) of this section.
(3) In addition to the personal exemption
credit allowed by this chapter for state personal income tax purposes for a
dependent of the taxpayer, there shall be allowed an additional personal
exemption credit for a child with a disability if the child is a child with a
disability at the close of the tax year. The amount of the credit shall be
equal to the amount allowed as the personal exemption credit for the dependent
for state personal income tax purposes for the tax year.
(4) Each taxpayer qualifying for the
additional personal exemption credit allowed by this section may claim the
credit on the personal income tax return. However, the claim shall be
substantiated by any proof of entitlement to the credit as may be required by
the state board by rule. [1985 c.531 §2; 1987 c.293 §15; 1989 c.224 §50a; 1989
c.491 §1; 1993 c.777 §7; 1993 c.813 §6; 1999 c.989 §29; 2001 c.114 §35; 2005
c.832 §28; 2007 c.70 §84]
Note:
Section 39, chapter 913, Oregon Laws 2009, provides:
Sec.
39. A credit may not be claimed under ORS
316.099 for tax years beginning on or after January 1, 2016. [2009 c.913 §39]
316.102
Credit for political contributions. (1) A credit
against taxes shall be allowed for voluntary contributions in money made in the
taxable year:
(a) To a major political party qualified
under ORS 248.006 or to a committee thereof or to a minor political party
qualified under ORS 248.008 or to a committee thereof.
(b) To or for the use of a person who must
be a candidate for nomination or election to a federal, state or local elective
office in any primary election, general election or special election in this
state. The person must, in the calendar year in which the contribution is made,
either be listed on a primary election, general election or special election
ballot in this state or have filed in this state one of the following:
(A) A prospective petition;
(B) A declaration of candidacy;
(C) A certificate of nomination; or
(D) A designation of a principal campaign
committee.
(c) To a political committee, as defined
in ORS 260.005, if the political committee has certified the name of its
treasurer to the filing officer, as defined in ORS 260.005, in the manner
provided in ORS chapter 260.
(2) The credit allowed by subsection (1)
of this section shall be the lesser of:
(a) The total contribution, not to exceed
$50 on a separate return; the total contribution, not to exceed $100 on a joint
return; or
(b) The tax liability of the taxpayer.
(3) The claim for tax credit shall be
substantiated by submission, with the tax return, of official receipts of the
candidate, agent, political party or committee thereof or political committee
to whom contribution was made. [1969 c.432 §2; 1973 c.119 §3; 1975 c.177 §1;
1977 c.268 §1; 1979 c.190 §413; 1985 c.802 §6; 1987 c.293 §16; 1989 c.986 §1;
1993 c.797 §27; 1995 c.1 §19; 1995 c.712 §104; 1999 c.999 §27]
Note:
Section 34, chapter 913, Oregon Laws 2009, provides:
Sec.
34. A credit may not be claimed under ORS
316.102 for tax years beginning on or after January 1, 2014. [2009 c.913 §34]
316.103
[1985 c.684 §12; 1989 c.765 §1; 1989 c.958 §10; 1991 c.877 §7; repealed by 1993
c.730 §31 (315.324 enacted in lieu of 316.103 and 317.106)]
316.104
[1987 c.911 §8b; 1991 c.877 §8; repealed by 1993 c.730 §37 (315.504 enacted in
lieu of 316.104 and 317.140)]
316.105
[1953 c.304 §14; 1953 c.552 §5; repealed by 1969 c.493 §99]
316.106
[1967 c.274 §7; repealed by 1969 c.493 §99]
316.107
[1969 c.493 §20; 1973 c.402 §19; 1985 c.802 §7; repealed by 1993 c.730 §3 (315.054
enacted in lieu of 316.107)]
316.108
[1967 c.118 §2; repealed by 1969 c.493 §99]
316.109
Credit for tax by another jurisdiction on sale of residential property; rules.
(1) If gain on the sale of residential property is taxed under this chapter,
the adjusted basis of the property for purposes of this chapter shall be the
same as its adjusted basis for federal income tax purposes.
(2) A credit against the tax otherwise due
under this chapter shall be allowed to the taxpayer for the amount of any taxes
imposed on the taxpayer by another state of the United States, a foreign
country or the District of Columbia which tax is attributable to gain that is
subject to tax as described in subsection (1) of this section.
(3) The amount of the credit allowed under
subsection (2) of this section may not exceed the amount of the gain taxed by
the other taxing jurisdiction multiplied by eight percent.
(4) The Department of Revenue shall
provide by rule the procedure for obtaining credit provided by subsection (2)
of this section and the proof required. The requirement of proof may be waived
partially, conditionally or absolutely, as provided under ORS 315.063.
(5) Any credit allowed under subsection
(2) of this section may not be applied in calculating tax due under this
chapter if the tax upon which the credit is based has been claimed as a
deduction for Oregon personal income tax purposes, unless the tax is restored
to income on the Oregon return. [1979 c.579 §2; 1981 c.705 §2; 1995 c.54 §10;
2001 c.114 §36]
316.110
[1953 c.304 §15; 1953 c.552 §6; 1957 c.582 §1; 1961 c.506 §1; 1963 c.253 §1;
repealed by 1969 c.493 §99]
316.111
[1965 c.360 §2; repealed by 1969 c.493 §99]
316.112
[1959 c.211 §2; 1963 c.627 §5 (referred and rejected); repealed by 1969 c.493 §99]
316.113
[1967 c.61 §2; repealed by 1969 c.493 §99]
316.114
[1967 c.449 §2; repealed by 1969 c.493 §99]
316.115
[1953 c.304 §16; 1959 c.555 §1; subsection (4) derived from 1959 c.555 §2;
repealed by 1969 c.493 §99]
316.116
Credit for alternative energy device or alternative fuel vehicle; rules.
(1)(a) A resident individual shall be allowed a credit against the taxes
otherwise due under this chapter for costs paid or incurred for construction or
installation of each of one or more alternative energy devices in a dwelling.
(b) A resident individual shall be allowed
a credit against the taxes otherwise due under this chapter for costs paid or
incurred to modify or purchase an alternative fuel vehicle or related
equipment.
(c) A credit against the taxes otherwise
due under this chapter is not allowed for an alternative energy device that
does not meet or exceed all applicable federal, state and local requirements
for energy efficiency, including equipment codes, the state building code,
specialty codes and any other standards.
(2)(a) In the case of a category one
alternative energy device that is not an alternative fuel device, the credit
shall be based upon the first year energy yield of the alternative energy
device that qualifies under ORS 469B.100 to 469B.118. The amount of the credit
shall be the same whether for collective or noncollective investment.
(b) The credit allowed under this section
for each category one alternative energy device for each dwelling may not
exceed the lesser of $1,500 or the first year energy yield in kilowatt hours
per year multiplied by 60 cents per dwelling utilizing the alternative energy
device used for space heating, cooling, electrical energy or domestic water
heating for tax years beginning on or after January 1, 1998.
(c) For each category one alternative
energy device used for swimming pool, spa or hot tub heating, the credit
allowed under this section shall be based upon 50 percent of the cost of the
device or the first year’s energy yield in kilowatt hours per year multiplied
by 15 cents, whichever is lower, up to $1,500 for tax years beginning on or
after January 1, 1998.
(d) For each alternative fuel device, the
credit allowed under this section is 25 percent of the cost of the alternative
fuel device but the total credit shall not exceed $750 if the device is placed
in service on or after January 1, 1998.
(e)(A) For each category two alternative
energy device that is a solar electric system or fuel cell system, the credit
allowed under this section may not exceed the lesser of $3 per watt of
installed output or $6,000. The State Department of Energy may by rule provide
for a lesser amount of incentive as market conditions warrant, taking into
consideration factors including the availability of bulk purchasing of
alternative energy devices.
(B) For each category two alternative
energy device that is a wind electric system, the credit allowed under this
section may not exceed the lesser of $6,000 or the first year energy yield in
kilowatt hours per year multiplied by $2.
(C) Notwithstanding subparagraph (A) or
(B) of this paragraph, the total amount of the credits allowed in any one tax
year may not exceed the tax liability of the taxpayer or $1,500 for each
alternative energy device, whichever is less. Unused credit amounts may be
carried forward as provided in subsection (6) of this section, but may not be
carried forward to a tax year that is more than five tax years following the
first tax year for which any credit was allowed with respect to the category
two alternative energy device that is the basis for the credit.
(D) Notwithstanding subparagraph (A) or
(B) of this paragraph, the total amount of the credit for each device allowed
under this paragraph may not exceed 50 percent of the total installed cost of
the category two alternative energy device.
(3) To qualify for a credit under this
section, all of the following are required:
(a) The alternative energy device must be
purchased, constructed, installed and operated in accordance with ORS 469B.100
to 469B.118 and a certificate issued thereunder.
(b) The taxpayer who is allowed the credit
must be the owner or contract purchaser of the dwelling or dwellings served by
the alternative energy device or the tenant of the owner or of the contract
purchaser and must:
(A) Use the dwelling or dwellings served
by the alternative energy device as a principal or secondary residence; or
(B) Rent or lease, under a residential
rental agreement, the dwelling or dwellings to a tenant who uses the dwelling
or dwellings as a principal or secondary residence.
(c) In the case of an alternative fuel
device, unless the verification form and certificate are transferred as
authorized under ORS 469B.106 (9), the taxpayer who is allowed the credit must
be the contractor who constructs the dwelling that incorporates the alternative
fuel device into the dwelling or installs the fueling station in the dwelling.
(d) The credit must be claimed for the tax
year in which the alternative energy device was purchased if the device is
operational by April 1 of the next following tax year.
(e) If the alternative fuel vehicle is a
gasoline-electric hybrid vehicle not designed for electric plug-in charging, it
must be purchased before January 1, 2010.
(4) The credit provided by this section
does not affect the computation of basis under this chapter.
(5) The total credits allowed under this
section in any one year may not exceed the tax liability of the taxpayer.
(6) Any tax credit otherwise allowable
under this section that is not used by the taxpayer in a particular year may be
carried forward and offset against the taxpayer’s tax liability for the next
succeeding tax year. Any credit remaining unused in the next succeeding tax
year may be carried forward and used in the second succeeding tax year, and
likewise any credit not used in that second succeeding tax year may be carried
forward and used in the third succeeding tax year, and any credit not used in
that third succeeding tax year may be carried forward and used in the fourth succeeding
tax year, and any credit not used in that fourth succeeding tax year may be
carried forward and used in the fifth succeeding tax year, but may not be
carried forward for any tax year thereafter.
(7) A nonresident shall be allowed the
credit under this section in the proportion provided in ORS 316.117.
(8) If a change in the taxable year of a
taxpayer occurs as described in ORS 314.085, or if the Department of Revenue
terminates the taxpayer’s taxable year under ORS 314.440, the credit allowed by
this section shall be prorated or computed in a manner consistent with ORS
314.085.
(9) 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.
(10) A husband and wife who file separate
returns for a taxable year may each claim a share of the tax credit that would
have been allowed on a joint return in proportion to the contribution of each.
However, a husband or wife living in a separate principal residence may claim
the tax credit in the same amount as permitted a single person.
(11) As used in this section, unless the
context requires otherwise:
(a) “Collective investment” means an
investment by two or more taxpayers for the acquisition, construction and
installation of an alternative energy device for one or more dwellings.
(b) “Noncollective investment” means an
investment by an individual taxpayer for the acquisition, construction and
installation of an alternative energy device for one or more dwellings.
(c) “Taxpayer” includes a transferee of a
verification form under ORS 469B.106 (9).
(12) Notwithstanding any provision of
subsection (1) or (2) of this section, the sum of the credit allowed under subsection
(1) of this section plus any similar credit allowed for federal income tax
purposes may not exceed the cost to the taxpayer for the acquisition,
construction and installation of the alternative energy device. [1977 c.196 §8;
1979 c.670 §2; 1981 c.894 §3; 1983 c.684 §14; 1983 c.768 §1; 1987 c.492 §1;
1989 c.626 §6; 1989 c.880 §§9,11; 1995 c.746 §19; 1997 c.325 §41; 1997 c.534 §3;
1999 c.21 §41; 1999 c.623 §1; 2005 c.832 §5; 2007 c.843 §29; 2009 c.909 §47;
2011 c.730 §69]
Note:
Section 5a, chapter 832, Oregon Laws 2005, provides:
Sec.
5a. (1) A taxpayer may not be allowed a
credit under ORS 316.116 if the first tax year for which the credit would
otherwise be allowed with respect to an alternative energy device begins on or
after January 1, 2018.
(2) A taxpayer may not be allowed a credit
under ORS 316.116 if the first tax year for which the credit would otherwise be
allowed with respect to an alternative fuel vehicle or related equipment begins
on or after January 1, 2012. [2005 c.832 §5a; 2007 c.843 §35; 2009 c.913 §12;
2011 c.83 §16; 2011 c.730 §67]
Note:
Sections 74 and 75, chapter 730, Oregon Laws 2011, provide:
Sec.
74. The amendments to ORS 316.116, 469.160
[renumbered 469B.100], 469.165 [renumbered 469B.103], 469.170 [renumbered
469B.106] and 469.172 [renumbered 469B.112] by sections 69 to 72 of this 2011
Act apply to alternative energy devices certified by the State Department of
Energy on or after January 1, 2012, and to tax years beginning on or after
January 1, 2012. [2011 c.730 §74]
Sec.
75. The State Department of Energy may not
issue certifications for more than $10 million in potential tax credits for
third-party alternative energy device installations in any tax year. [2011
c.730 §75]
(Temporary
provisions relating to tax credit for manufactured dwelling park closures)
Note:
Sections 17 and 18, chapter 906, Oregon Laws 2007, provide:
Sec.
17. (1) As used in this section:
(a) “Household” has the meaning given that
term in ORS 310.630.
(b) “Manufactured dwelling” has the meaning
given that term in ORS 446.003.
(c) “Manufactured dwelling park” means a
place within this state where four or more manufactured dwellings are located,
the primary purpose of which is to rent space or keep space for rent to any
person for a charge or fee.
(d) “Rental agreement” means a contract
under which an individual rents space in a manufactured dwelling park for
siting a manufactured dwelling.
(2) A credit of $5,000 against the taxes
otherwise due under this chapter is allowed to an individual who:
(a) Rents space in a manufactured dwelling
park for a manufactured dwelling that is owned and occupied by the individual
as the individual’s principal residence on the date that the landlord delivers
notice that the park, or a portion of the park, is being closed and the rental
agreement for the space is being terminated because of the exercise of eminent
domain, by order of a federal, state or local agency or by the landlord; and
(b) Ends tenancy at the manufactured
dwelling park site in response to the delivered notice described in paragraph
(a) of this subsection.
(3) For purposes of subsection (2) of this
section:
(a) Tenancy by the individual at the
manufactured dwelling park site ends on the last day that a member of the
individual’s household occupies the manufactured dwelling at the manufactured
dwelling park site; and
(b) Tenancy by the individual at the
manufactured dwelling park site does not end if the manufactured dwelling park
is converted to a subdivision under ORS 92.830 to 92.845 and the individual
buys a space or lot in the subdivision or sells the manufactured dwelling to a
person who buys a space or lot in the subdivision.
(4) Notwithstanding subsection (2) of this
section, if the manufactured dwelling park, or a portion of the park, is being
closed and the rental agreement of the individual is being terminated because
of the exercise of eminent domain, the credit amount allowed to the individual
is the amount described in subsection (2) of this section, reduced by any
amount that was paid to the individual as compensation for the exercise of
eminent domain.
(5) An individual may not claim more than
one credit under this section for tenancies ended during the tax year.
(6) If, for the year in which the
individual ends the tenancy at the manufactured dwelling park, the amount of
the credit allowed by this section, when added to the sum of the amounts
allowable as payment of tax under ORS 316.187 and 316.583 plus other tax
prepayment amounts and other refundable credit amounts, exceeds the taxes
imposed by this chapter or ORS chapter 314 for the tax year, reduced by any
nonrefundable credits allowable for purposes of this chapter for the tax year,
the amount of the excess shall be refunded to the individual as provided in ORS
316.502.
(7) If more than one individual in a
household qualifies under this section to claim the tax credit, the qualifying
individuals may each claim a share of the available credit that is in
proportion to their respective gross incomes for the tax year. [2007 c.906
§17]
Sec.
18. Section 17, chapter 906, Oregon Laws
2007, applies to individuals whose household ends tenancy at a manufactured
dwelling park during a tax year that begins on or after January 1, 2007, and
before January 1, 2014. [2007 c.906 §18; 2009 c.913 §33]
TAXATION
OF NONRESIDENTS
316.117
Proration between Oregon income and other income for nonresidents, part-year
residents and trusts. (1) Except as provided under
subsection (2) of this section, the proportion for making a proration for
nonresident taxpayers of the standard deduction or itemized deductions, the
personal exemption credits and any accrued federal or foreign income taxes, or
for part-year resident taxpayers of the amount of the tax, between Oregon
source income and income from all other sources is the federal adjusted gross
income of the taxpayer from Oregon sources divided by the taxpayer’s federal
adjusted gross income from all sources. If the numerator of the fraction
described in this subsection is greater than the denominator, the proportion of
100 percent shall be used in the proration required by this section. As used in
this subsection, “federal adjusted gross income” means the federal adjusted
gross income of the taxpayer with the additions, subtractions and other
modifications to federal taxable income that relate to adjusted gross income
for personal income tax purposes.
(2) For part-year resident trusts, the
proration made under this section shall be made by reference to the taxable
income of the fiduciary. [1969 c.493 §21; 1971 c.672 §1; 1973 c.269 §1; 1975
c.672 §5; 1977 c.872 §5; 1981 c.801 §4; 1983 c.684 §15; 1985 c.141 §5; 1987
c.293 §17; 1999 c.580 §5]
316.118
Pro rata share of S corporation income of nonresident shareholder.
(1) The pro rata share of S corporation income of a nonresident shareholder
constitutes income or loss derived from or connected with sources in this state
as provided in ORS 316.127 (5).
(2) In determining the pro rata share of S
corporation income of a nonresident shareholder, there shall be included only
that part derived from or connected with sources in this state of the
shareholder’s distributive share of items of S corporation income, gain, loss
and deduction (or item thereof) entering into the federal adjusted gross income
of the shareholder, as such part is determined under rules adopted by the
Department of Revenue in accordance with the general rules under ORS 316.127.
(3) Any modifications, additions or
subtractions to federal taxable income described in this chapter that relates
to an item of S corporation income, gain, loss or deduction (or item thereof)
shall be made in accordance with the shareholder’s pro rata share, for federal
income tax purposes of the item to which the modification, addition or
subtraction relates, but limited to the portion of such item derived from or
connected with sources in this state.
(4) A nonresident shareholder’s pro rata
share of items of income, gain, loss or deduction (or item thereof) shall be
determined under ORS 314.734 (1). The character of shareholder items for a
nonresident shareholder shall be determined under ORS 314.734 (2). [1989 c.625 §52;
1991 c.877 §11]
316.119
Proration of part-year resident’s income between Oregon income and other
income; alternative proration for pass-through entity items.
(1) Except as provided in subsection (2) of this section, for purposes of ORS
316.117, the adjusted gross income of a part-year resident from Oregon sources
is the sum of the following:
(a) For the portion of the year in which
the taxpayer was a resident of Oregon, the taxpayer’s entire adjusted gross
income.
(b) For the portion of the year in which
the taxpayer was a nonresident, the taxpayer’s adjusted gross income derived
from sources within this state, as determined under ORS 316.127.
(2) For purposes of ORS 316.117, the
adjusted gross income of a part-year resident with federal adjusted gross
income that includes an item of income, gain, loss, deduction or credit from a
pass-through entity shall include the sum of the following:
(a) The total amount of the item that is
taken into account in federal adjusted gross income, multiplied by the ratio of
the number of days the taxpayer was a resident of Oregon during the tax year of
the entity over the total number of days in the tax year of the entity; and
(b) The total amount of the item that is
taken into account in federal adjusted gross income and that is derived from or
connected with sources within this state, as determined under ORS 316.127,
multiplied by the ratio of the number of days the taxpayer was a nonresident of
Oregon during the tax year of the entity over the total number of days in the
tax year of the entity.
(3) As used in subsection (2) of this
section:
(a) “Pass-through entity” means any entity
that is recognized as a separate entity for federal income tax purposes, for
which the owners are required to report income, gains, losses, deductions or
credits from the entity for federal income tax purposes.
(b) “Tax year of the entity” means the tax
year of the pass-through entity that ends within the tax year of the taxpayer. [1993
c.726 §31; 2005 c.55 §1]
316.122
Separate or joint determination of income for husband and wife.
(1) If the federal taxable income of husband and wife (one being a part-year
resident and the other a nonresident) is determined on a joint federal return,
their taxable income in this state shall be separately determined, unless they
elect to file a joint return, in which case their tax on their joint income
shall be determined in this state pursuant to ORS 316.037 (3).
(2) If the federal taxable income of
husband and wife (one being a full-year resident and the other a part-year
resident) is determined on a joint federal return, their taxable income in this
state shall be separately determined, unless they elect to file a joint return,
in which case their tax on their joint income shall be determined in this state
pursuant to ORS 316.037 (2).
(3) If the federal taxable income of
husband and wife (one being a full-year resident and the other a nonresident)
is determined on a joint federal return, their taxable income in the state
shall be separately determined, unless they elect to file a joint return, in
which case their tax on their joint income shall be determined in this state
pursuant to ORS 316.037 (3).
(4) For purposes of computing the tax of a
husband and wife under this section, if one of the spouses is a full-year
resident individual, then as used in ORS 316.037 (2) or (3), that spouse’s
taxable income derived from Oregon sources is that spouse’s entire federal
taxable income, defined in the laws of the United States, with the
modifications, additions and subtractions provided in this chapter and other
laws of this state applicable to personal income taxation.
(5) The provisions of ORS 316.367 with
respect to joint returns apply if both husband and wife are part-year residents
or full-year nonresidents. [1969 c.493 §22; 1985 c.802 §8; 1987 c.647 §3; 1999
c.580 §6]
316.124
Determination of adjusted gross income of nonresident partner.
(1) In determining the adjusted gross income of a nonresident partner of any
partnership, there shall be included only that part derived from or connected
with sources in this state of the partner’s distributive share of items of
partnership income, gain, loss and deduction (or item thereof) entering into
the federal adjusted gross income of the partner, as such part is determined
under rules adopted by the Department of Revenue in accordance with the general
rules in ORS 316.127.
(2) In determining the sources of a nonresident
partner’s income, no effect shall be given to a provision in the partnership
agreement which:
(a) Characterizes payments to the partner
as being for services or for the use of capital, or allocated to the partner,
as income or gain from sources outside this state, a greater proportion of the
partner’s distributive share of partnership income or gain than the ratio of
partnership income or gain from sources outside this state to partnership
income or gain from all sources, except as authorized in subsection (4) of this
section; or
(b) Allocates to the partner a greater
proportion of a partnership item of loss or deduction connected with sources in
this state than the proportionate share of the partner, for federal income tax
purposes, of partnership loss or deduction generally, except as authorized in
subsection (4) of this section.
(3) Any modification to federal taxable
income described in this chapter that relates to an item of partnership income,
gain, loss or deduction (or item thereof) shall be made in accordance with the
partner’s distributive share, for federal income tax purposes of the item to
which the modification relates, but limited to the portion of such item derived
from or connected with sources in this state.
(4) The department may, on application,
authorize the use of such other methods of determining a nonresident partner’s
portion of partnership items derived from or connected with sources in this
state, and the modifications related thereto, as may be appropriate and equitable,
on such terms and conditions as it may require.
(5) A nonresident partner’s distributive
share of items of income, gain, loss or deduction (or item thereof) shall be
determined under ORS 314.714 (2). The character of partnership items for a
nonresident partner shall be determined under ORS 314.714 (1). [1989 c.625 §32
(enacted in lieu of 316.352)]
316.125
[1953 c.304 §17; repealed by 1969 c.493 §99]
316.127
Income of nonresident from Oregon sources. (1)
The adjusted gross income of a nonresident derived from sources within this
state is the sum of the following:
(a) The net amount of items of income,
gain, loss and deduction entering into the nonresident’s federal adjusted gross
income that are derived from or connected with sources in this state including
(A) any distributive share of partnership income and deductions and (B) any
share of estate or trust income and deductions; and
(b) The portion of the modifications,
additions or subtractions to federal taxable income provided in this chapter
and other laws of this state that relate to adjusted gross income derived from
sources in this state for personal income tax purposes, including any
modifications attributable to the nonresident as a partner.
(2) Items of income, gain, loss and
deduction derived from or connected with sources within this state are those
items attributable to:
(a) The ownership or disposition of any
interest in real or tangible personal property in this state;
(b) A business, trade, profession or
occupation carried on in this state; and
(c) A taxable lottery prize awarded by the
Oregon State Lottery, including a taxable lottery prize awarded by a multistate
lottery association of which the Oregon State Lottery is a member if the ticket
upon which the prize is awarded was sold in this state.
(3) Income from intangible personal
property, including annuities, dividends, interest and gains from the
disposition of intangible personal property, constitutes income derived from
sources within this state only to the extent that such income is from property
employed in a business, trade, profession or occupation carried on in this
state.
(4) Deductions with respect to capital
losses, net long-term capital gains, and net operating losses shall be based
solely on income, gains, losses and deductions derived from or connected with
sources in this state, under regulations to be prescribed by the Department of
Revenue, but otherwise shall be determined in the same manner as the
corresponding federal deductions.
(5) Notwithstanding subsection (3) of this
section:
(a) The income of an S corporation for
federal income tax purposes derived from or connected with sources in this
state constitutes income derived from sources within this state for a
nonresident individual who is a shareholder of the S corporation; and
(b) A net operating loss of an S
corporation derived from or connected with sources in this state constitutes a
loss or deduction connected with sources in this state for a nonresident
individual who is a shareholder of the S corporation.
(6) If a business, trade, profession or
occupation is carried on partly within and partly without this state, the
determination of net income derived from or connected with sources within this
state shall be made by apportionment and allocation under ORS 314.605 to
314.675.
(7) Compensation paid by the United States
for service in the Armed Forces of the United States performed by a nonresident
does not constitute income derived from sources within this state.
(8) Compensation paid to a nonresident for
services performed by the nonresident at a hydroelectric facility does not
constitute income derived from sources within this state if the hydroelectric
facility:
(a) Is owned by the United States;
(b) Is located on the Columbia River; and
(c) Contains portions located within both
this state and another state.
(9)(a) Retirement income received by a
nonresident does not constitute income derived from sources within this state
unless the individual is domiciled in this state.
(b) As used in this section, “retirement
income” means retirement income as that term is defined in 4 U.S.C. 114, as
amended and in effect for the tax period.
(10) Compensation for the performance of
duties described in this subsection that is paid to a nonresident does not constitute
income derived from sources within this state if the individual:
(a) Is engaged on a vessel to perform
assigned duties in more than one state as a pilot licensed under 46 U.S.C. 7101
or licensed or authorized under the laws of a state; or
(b) Performs regularly assigned duties
while engaged as a master, officer or member of a crew on a vessel operating on
the navigable waters of more than one state. [1969 c.493 §23; 1971 c.672 §2;
1973 c.269 §2; 1975 c.705 §4; 1983 c.684 §15a; 1989 c.625 §9; 1997 c.654 §6;
1997 c.839 §10; 1999 c.143 §4; 1999 c.556 §1; 1999 c.580 §7; 2001 c.77 §§1,4;
2001 c.114 §37; 2003 c.77 §24]
316.130
Determination of taxable income of full-year nonresident.
(1) The taxable income for a full-year nonresident individual is adjusted gross
income attributable to sources within this state determined under ORS 316.127,
with the modifications (except those provided under subsection (2) of this
section) as otherwise provided under this chapter and other laws of this state
applicable to personal income taxation, less the deductions allowed under
subsection (2) of this section.
(2)(a) A full-year nonresident individual
shall be allowed the deduction for a standard deduction or itemized deductions
allowable to a resident under ORS 316.695 (1) in the proportion provided in ORS
316.117.
(b) A full-year nonresident individual
shall be allowed to deduct the amount of any accrued federal income taxes and
foreign country income taxes as provided in ORS 316.690 in the proportion
provided in ORS 316.117.
(c)(A) A full-year nonresident individual
shall be allowed to deduct the amount of any alimony or separate maintenance
payments paid during such individual’s taxable year in the proportion provided
in ORS 316.117 except that in determining the proportion the taxpayer’s
adjusted gross income shall not include a deduction for alimony. For purposes
of this paragraph, “alimony or separate maintenance payment” has the meaning
given the phrase in section 215 of the Internal Revenue Code.
(B) No deduction shall be allowed under
this paragraph if the alimony or separate maintenance payment is not includable
in the gross income of the nonresident individual for federal income tax
purposes under section 682 of the Internal Revenue Code.
(3)(a) A full-year nonresident who is a
self-employed individual shall be allowed to deduct that individual’s
contributions to a qualified plan, deductible on that individual’s federal
income tax return pursuant to section 401 of the Internal Revenue Code, in the
proportion that the individual’s earned income from Oregon sources bears to the
individual’s earned income from all sources. “Earned income” has the meaning
given in section 401(c)(2) of the Internal Revenue Code. If the numerator of
the fraction described in this paragraph is greater than the denominator, the
proration of 100 percent shall be used.
(b) A full-year nonresident shall be
allowed to deduct that individual’s qualified retirement contributions,
deductible on that individual’s federal income tax return pursuant to section
219 of the Internal Revenue Code, in the proportion that the individual’s
compensation from Oregon sources bears to the individual’s compensation from
all sources. “Compensation” has the meaning given in section 219(f)(1) of the
Internal Revenue Code.
(c) A full-year nonresident individual
shall be allowed to deduct the aggregate amounts paid in cash to a medical
savings account, deductible on the individual’s federal income tax return
pursuant to section 220 of the Internal Revenue Code, in the proportion that
the individual’s compensation from Oregon sources bears to the individual’s
compensation from all sources. Distributions from a medical savings account, if
excluded from income for federal income tax purposes, shall be excluded for
Oregon income tax purposes. Distributions from a medical savings account, if
included in income for federal tax purposes, shall be included in income for
Oregon tax purposes to the extent that an exclusion has been allowed for
contributions to the medical savings account for Oregon tax purposes in a
previous year. [1985 c.141 §4; 1987 c.293 §18; 1987 c.647 §12; 1989 c.626 §7;
1997 c.839 §11a; 1999 c.580 §8]
316.131
Credit allowed to nonresident for taxes paid to state of residence; exception.
(1) A nonresident shall be allowed a credit against the taxes otherwise due
under this chapter for income taxes imposed by and paid to the state of
residence (not including any preference, alternative or minimum tax) on income
taxable under this chapter, subject to the following conditions:
(a) The credit shall be allowed only if
the state of residence either:
(A) Does not tax the income of residents
of this state derived from sources within that state; or
(B) Allows residents of this state a
credit against income taxes imposed by that state on income for tax paid or
payable under this chapter.
(b) The credit may not be allowed for
taxes paid to a state that allows its residents a credit against the taxes
imposed by that state for income tax paid or payable under this chapter
irrespective of whether its residents are allowed a credit against the taxes
imposed by this chapter for income taxes paid to that state.
(c) Credit shall be allowed only for the
proportion of the taxes paid to the state of residence (not including
preference, alternative or minimum taxes) as the adjusted gross income taxable
under this chapter and also subject to taxes in the state of residence bears to
the entire adjusted gross income upon which the taxes paid to the state of
residence are imposed.
(d) The credit may not exceed the
proportion of the tax payable under this chapter that the modified adjusted
gross income subject to tax in the state of residence and also taxable under
this chapter bears to the entire modified adjusted gross income of the
taxpayer.
(2) For purposes of this section, the
amount of income taxes paid to another state includes the taxpayer’s pro rata
share of any taxes on, or according to, or measured by, income or profits paid
or accrued that were paid by an S corporation.
(3) Notwithstanding subsection (1) of this
section, credit may not be allowed under this section for taxes paid by a
nonresident on qualifying compensation.
(4) As used in this section:
(a) “Modified adjusted gross income” means
federal adjusted gross income as modified by this chapter and the other laws of
this state applicable to personal income taxation.
(b) “Qualifying compensation” has the
meaning given that term in section 1, chapter 559, Oregon Laws 2005.
(c) “State” means a state, district,
territory or possession of the United States. [1991 c.838 §5; 2001 c.9 §2; 2005
c.559 §6]
316.132
[1987 c.682 §3; 1991 c.877 §12; 1991 c.929 §1; repealed by 1993 c.730 §23
(315.208 enacted in lieu of 316.132, 317.114 and 318.160)]
316.133
[1991 c.928 §2; repealed by 1993 c.730 §25 (315.234 enacted in lieu of 316.133
and 317.134)]
316.134
[1987 c.682 §2; 1989 c.625 §10; 1991 c.457 §6; 1991 c.877 §13; repealed by 1993
c.730 §21 (315.204 enacted in lieu of 316.134, 317.135 and 318.175)]
316.135
[1979 c.554 §2; renumbered 316.752]
316.136
[1979 c.554 §3; renumbered 316.758]
316.137
[1979 c.554 §4; renumbered 316.765]
316.138
[1979 c.554 §5; renumbered 316.771]
316.139
[1989 c.924 §2; 1991 c.858 §10; 1991 c.877 §14; repealed by 1993 c.730 §11 (315.138
enacted in lieu of 316.139 and 317.145)]
316.140
[1979 c.512 §12; 1981 c.894 §10; 1991 c.877 §15; repealed by 1993 c.730 §33
(315.354 enacted in lieu of 316.140 and 317.104)]
316.141
[1979 c.512 §15; 1981 c.894 §11; 1989 c.765 §2; 1991 c.457 §7; repealed by 1993
c.730 §35 (315.356 enacted in lieu of 316.141, 316.142 and 317.103)]
316.142
[1979 c.512 §16, 17; 1981 c.894 §12; 1989 c.765 §3; repealed by 1993 c.730 §35
(315.356 enacted in lieu of 316.141, 316.142 and 317.103)]
ADDITIONAL
CREDITS
316.143
[1989 c.893 §2; 1991 c.877 §16; 1995 c.746 §36; 1999 c.459 §1; 2001 c.509 §12;
renumbered 315.613 in 2005]
316.144
[1989 c.893 §3; 1991 c.877 §17; 1995 c.746 §38; 1997 c.787 §3; 1999 c.459 §6;
1999 c.582 §10; 2003 c.46 §39; renumbered 315.616 in 2005]
316.145
[1979 c.561 §4; renumbered 316.849]
316.146
[1989 c.893 §6a; 1991 c.877 §18; 1999 c.291 §31; 2003 c.46 §40; renumbered
315.619 in 2005]
(Costs
in Lieu of Nursing Home Care)
316.147
Definitions for ORS 316.147 to 316.149. As used in ORS
316.147 to 316.149, unless the context requires otherwise:
(1) “Eligible taxpayer” includes any
individual who must pay taxes otherwise imposed by this chapter and:
(a) Who pays or incurs expenses for the
care of a “qualified individual,” as defined in subsection (2) of this section,
through a payment method determined by rule of the Department of Revenue; and
(b) Who has a “household income,” as
defined by ORS 310.630, for the taxable year, not to exceed the maximum amount
of household income allowed in ORS 310.640 (1989 Edition) for a homeowner or
renter refund.
(2) “Qualified individual” includes an
individual at least 60 years of age on the date that the expenses described in
subsection (1)(a) of this section are paid or incurred by the eligible taxpayer:
(a) Whose household income, as defined by
ORS 310.630, does not exceed $7,500 for the calendar year in which the taxable
year of the taxpayer begins;
(b) Who is eligible for authorized
services as defined in ORS 410.410 under Oregon Project Independence;
(c) Who is certified by the Department of
Human Services; and
(d) Whose care or any portion thereof is
not paid for under ORS chapter 414. [1979 c.494 §2; 1991 c.786 §5; 1997 c.170 §28;
2011 c.201 §8]
316.148
Credit for expenses in lieu of nursing home care; limitation.
(1) A credit against the taxes otherwise due under this chapter shall be
allowed to an eligible taxpayer with respect to food, clothing, medical care
and transportation expenses paid or incurred by the taxpayer during the taxable
year on behalf of a qualified individual in order that the qualified individual
is not placed or maintained in a nursing home unnecessarily. The amount of the
credit shall be $250 or eight percent of the expenses paid or incurred during
the taxable year, whichever is less.
(2) No credit shall be allowed under this
section for expenses paid or incurred for any period of time in which the
qualified individual is a resident in a nursing home or is receiving authorized
services as defined in ORS 410.410 from Oregon Project Independence. [1979
c.494 §3; 2011 c.201 §9]
Note:
Section 37, chapter 913, Oregon Laws 2009, provides:
Sec.
37. A credit may not be claimed under ORS
316.148 for tax years beginning on or after January 1, 2016. [2009 c.913 §37]
316.149
Evidence of eligibility for credit. Evidence of
payments made or expenses incurred that form the basis of the credit allowed
under ORS 316.147 to 316.149 shall be submitted to the Department of Revenue in
accordance with any rules adopted by the department relative to the submission
of evidence of such payments. [1979 c.494 §4]
316.150
[1979 c.414 §2; renumbered 316.854]
316.151
[1991 c.859 §4; repealed by 1993 c.730 §27 (315.254 enacted in lieu of 316.151,
317.141 and 318.085)]
316.152
[1991 c.916 §13; repealed by 1997 c.170 §33]
316.153
[1991 c.846 §2; 1995 c.556 §3; 1995 c.559 §54; 1997 c.839 §12; 1999 c.90 §11;
1999 c.676 §27; 2001 c.596 §50; 2001 c.660 §38; 2005 c.826 §1; repealed by 2007
c.843 §89 and 2007 c.906 §30]
316.154
[1989 c.963 §2; 1991 c.766 §3; 1991 c.877 §10; repealed by 1993 c.730 §19
(315.164 enacted in lieu of 316.154 and 317.146)]
316.155
[1991 c.652 §8; repealed by 1993 c.730 §39 (315.604 enacted in lieu of 316.155
and 317.149)]
(Retirement
Income)
316.157
Credit for retirement income. (1) In the
case of an eligible individual, there shall be allowed as a credit against the
taxes otherwise due under this chapter for the taxable year an amount equal to
the lesser of the tax liability of the taxpayer or nine percent of net pension
income.
(2) For purposes of this section:
(a) “Eligible individual” means any
individual who is receiving pension income and who has attained the following
age before the close of the taxable year:
(A) For taxable years beginning on or
after January 1, 1991, and before January 1, 1993, the individual must attain
58 years of age before the close of the taxable year.
(B) For taxable years beginning on or
after January 1, 1993, and before January 1, 1995, the individual must attain
59 years of age before the close of the taxable year.
(C) For taxable years beginning on or
after January 1, 1995, and before January 1, 1997, the individual must attain
60 years of age before the close of the taxable year.
(D) For taxable years beginning on or
after January 1, 1997, and before January 1, 1999, the individual must attain
61 years of age before the close of the taxable year.
(E) For taxable years beginning on or
after January 1, 1999, the individual must attain 62 years of age before the
close of the taxable year.
(b) “Household income” has that meaning
given in ORS 310.630 except that “household income” shall not include Social
Security benefits received by the taxpayer or the spouse of the taxpayer.
(c) “Net pension income” means:
(A) For eligible individuals filing a
joint return, the lesser of the pension income of the eligible individuals
received during the taxable year or the excess, if any, of $15,000 over the sum
of the following amounts:
(i) Any Social Security benefits received
by the eligible individual, or by the spouse of the individual, during the
taxable year; and
(ii) The excess, if any, of household
income over $30,000.
(B) For an eligible individual filing a
return other than a joint return, the lesser of the pension income of the
eligible individual received during the taxable year or the excess, if any, of
$7,500 over the sum of the following amounts:
(i) Any Social Security benefits received
by the eligible individual during the taxable year; and
(ii) The excess, if any, of household
income over $15,000.
(d) “Pension income” means income included
in Oregon taxable income from:
(A) Distributions from or pursuant to an
employee pension benefit plan, as defined in section 3(2) of the Employee
Retirement Income Security Act of 1974, which satisfies the requirements of
section 401 of the Internal Revenue Code;
(B) Distributions from or pursuant to a
public retirement system of this state or a political subdivision of this
state, or a public retirement system created by an Act of this state or a
political subdivision of this state, or the public retirement system of any
other state or local government;
(C) Distributions from or pursuant to a
federal retirement system created by the federal government for any officer or
employee of the United States, including any person retired from service in the
United States Civil Service, the Armed Forces of the United States or any
agency or subdivision thereof;
(D) Distributions or withdrawals from or
pursuant to an eligible deferred compensation plan which satisfies the
requirements of section 457 of the Internal Revenue Code;
(E) Distributions or withdrawals from or
pursuant to an individual retirement account, annuity or trust or simplified
employee pension which satisfies the requirements of section 408 of the
Internal Revenue Code; and
(F) Distributions or withdrawals from or
pursuant to an employee annuity, including custodial accounts treated as
annuities, subject to section 403 (a) or (b) of the Internal Revenue Code.
(e) “Social Security benefits” means
Social Security benefits, as defined in section 86 of the Internal Revenue Code
(Title II Social Security or tier 1 railroad retirement benefits).
(3) If a change in the taxable year of the
eligible individual occurs as described in ORS 314.085, or if the Department of
Revenue terminates the tax year of the eligible individual under ORS 314.440,
the credit allowed by this section shall be prorated or computed in a manner
consistent with ORS 316.085.
(4) If a change in the status of the
eligible individual from resident to nonresident or from nonresident to
resident occurs, the credit allowed by this section shall be determined in a
manner consistent with subsection (1) of this section. [1991 c.823 §5; 1997
c.839 §13; 1999 c.90 §12; 2001 c.660 §39]
Note:
Section 36, chapter 913, Oregon Laws 2009, provides:
Sec.
36. A credit may not be claimed under ORS
316.157 for tax years beginning on or after January 1, 2014. [2009 c.913 §36]
316.158
Effect upon ORS 316.157 of determination of invalidity; severability.
(1) It is the intent of the Legislative Assembly that no part of ORS 316.157 be
the law if any part of ORS 316.157 is held to be invalid or unconstitutional.
However, no amended return or payment of additional taxes shall be required for
any year prior to the year in which any part of ORS 316.157 is held to be
invalid or unconstitutional by a court of last resort.
(2) Except as provided in subsection (1)
of this section, it is the intent of the Legislative Assembly that the provisions
of ORS 238.445, 310.635, 316.087, 316.157, 316.158, 316.680 and 316.695 be
severable as provided in ORS 174.040. [1991 c.823 §9]
Note:
316.158 was enacted into law by the Legislative Assembly but was not added to
or made a part of ORS chapter 316 or any series therein by legislative action.
See Preface to Oregon Revised Statutes for further explanation.
316.159
Subtraction for certain retirement distributions contributed to retirement plan
during period of nonresidency; substantiation rules.
(1)(a) In addition to other modifications to federal taxable income contained
in this chapter, there shall be subtracted from federal taxable income of a
resident individual the distributions received by the individual from a plan or
trust described under subsection (2) of this section to the extent that:
(A) The distributions consist of
contributions made in a tax period during which the individual was a
nonresident; and
(B) The distributions consist of
contributions made in a tax period for which no deduction, exclusion or
exemption for the contributions was allowed or allowable to the individual for
purposes of a state personal net income tax imposed during the period by the
state of which the individual was a resident; and
(C) No deduction, exclusion, subtraction
or other tax benefit has been allowed for the distributions by another state
before the individual becomes a resident of this state.
(b) For purposes of this section, if any
distributions (lump sum or periodic) received by a resident individual from a
plan or trust described in subsection (2) of this section meet the requirements
of paragraph (a) of this subsection, then for purposes of the subtraction
allowed by this section, those distributions shall be considered to be the
distributions first received by the individual after the individual has become
a resident of this state.
(c) For purposes of ORS 316.082 (credit
for taxes paid to another state), any distributions received by a resident
individual from a plan or trust described in subsection (2) of this section
which meet the requirements of paragraph (a) of this subsection shall be
considered income subject to tax under this chapter notwithstanding the
exclusion under this section.
(2) A plan or trust is described in this
section if:
(a) The plan or trust is an individual
retirement account described in section 408 of the Internal Revenue Code;
(b) The trust forms part of a pension or
profit-sharing plan that provides contributions or benefits for employees, some
or all of whom are owner-employees, as defined under section 401(c)(3) of the
Internal Revenue Code;
(c) The plan or trust is an annuity
contract purchased on behalf of an employee of a charitable organization or
public school as described under section 403(b) of the Internal Revenue Code;
or
(d) The plan or trust is an eligible
deferred compensation plan established and maintained by an employer that is a
state or local government, a political subdivision thereof, or a tax exempt
organization, on behalf of an employee of the employer, as described under
section 457 of the Internal Revenue Code.
(3) The following contributions are not
contributions to which the subtraction under subsection (1) of this section is
accorded:
(a) Contributions made during a tax
period, or portion thereof, for which the taxpayer was a nonresident required
to file an Oregon return, to the extent that a deduction or exclusion was
allowable under this chapter for those contributions; or
(b) Contributions for which the taxpayer
was allowed a credit for taxes paid to another state under ORS 316.082.
(4) A subtraction shall not be allowed
under this section for interest or other income arising from investment of
contributions made to a plan or trust described in subsection (2) of this
section.
(5) For purposes of the subtraction
allowed under subsection (1) of this section:
(a) Distributions received by the taxpayer
from a plan or trust described in subsection (2) of this section shall be
considered to initially consist of a recovery of contributions.
(b) Once the distributions equal the
cumulative contributions, all further distributions shall constitute interest
or other income arising from investment of the contributions.
(6) The Department of Revenue may adopt
rules requiring substantiation of the contributions and tax treatment upon
which the subtraction under this section is based. Failure to provide
substantiation as required under the rules shall result in denial of the
subtraction otherwise allowed under this section. The requirement for
substantiation may be waived partially, conditionally or absolutely, as
provided under ORS 315.063. [1991 c.838 §2; 1995 c.54 §11; 1995 c.815 §6]
316.160
[1953 c.304 §18; 1965 c.26 §3; repealed by 1969 c.493 §99]
COLLECTION
OF TAX AT SOURCE OF PAYMENT
(Generally)
316.162
Definitions for ORS 316.162 to 316.221. As used in
ORS 316.162 to 316.221:
(1) “Number of withholding exemptions
claimed” means the number of withholding exemptions claimed in a withholding
exemption certificate in effect under ORS 316.182, except that if no such
certificate is in effect, the number of withholding exemptions claimed is
considered to be zero.
(2) “Wages” means remuneration for
services performed by an employee for an employer, including the cash value of
all remuneration paid in any medium other than cash, except that “wages” does
not include remuneration paid:
(a) For active service in the Armed Forces
of the United States as to which no withholding is required by the Internal
Revenue Code.
(b) To an employee of a common carrier to
the extent that 49 U.S.C. 14503 and 40116 prohibit the remuneration from
withholding for state income taxes.
(c) For domestic service in a private
home, a local college club or a local chapter of a college fraternity or
sorority.
(d) For casual labor not in the course of
the employer’s trade or business.
(e) To an employee whose services to the
employer consist solely of labor in connection with the planting, cultivating
or harvesting of seasonal agricultural crops if the total amount paid to such employee
is less than $300 annually.
(f) To seamen who are exempt from
garnishment, attachment or execution under title 46 of the United States Code.
(g) To persons temporarily employed as
emergency forest fire fighters.
(h) To employees’ trusts exempt from tax
under provisions of the federal Internal Revenue Code.
(i) For services performed by a duly
ordained, commissioned or licensed minister of a church in the exercise of the
minister’s ministry or by a member of a religious order in the exercise of religious
duties required by such order, which duties are not commercial in nature.
(j) For services provided by an
independent contractor, as defined in ORS 670.600.
(k) To or on behalf of an employee, a
beneficiary of an employee or an alternate payee under or to an eligible
deferred compensation plan that, at the time of the payment, is a plan
described in section 457(b) of the Internal Revenue Code and that is maintained
by an eligible employer described in section 457(e)(1)(A) of the Internal
Revenue Code.
(L) When the remuneration is exempt from
taxation under this chapter.
(3) “Employer” means:
(a) A person who is in such relation to
another person that the person may control the work of that other person and
direct the manner in which it is to be done; or
(b) An officer or employee of a
corporation, or a member or employee of a partnership, who as such officer,
employee or member is under a duty to perform the acts required of employers by
ORS 316.167, 316.182, 316.197, 316.202 and 316.207. [1969 c.493 §24; 1971 c.690
§1; 1973 c.229 §1; 1977 c.604 §1; 1981 c.705 §3; 1985 c.87 §3; 1989 c.762 §2;
1997 c.839 §15; 1999 c.21 §42; 1999 c.90 §13; 1999 c.580 §9; 2001 c.660 §40;
2003 c.77 §16; 2003 c.704 §6; 2005 c.533 §7]
316.164
When surety bond or letter of credit required of employer; enforcement.
(1) Except as provided in subsection (3) of this section, if the Department of
Revenue makes the findings required under subsection (2) of this section, the
department may require any employer subject to ORS 316.162 to 316.221, except
the state or its political subdivisions, to post a surety bond, or irrevocable
letter of credit issued by an insured institution, as defined in ORS 706.008,
with the department, to secure future payment of amounts required to be
withheld and paid over to the department under ORS 316.162 to 316.221. The bond
or letter of credit shall be in an amount equal to the amounts required to be
withheld upon the wages paid or estimated to be paid by the employer for a
period of four calendar quarters. The bond or letter of credit shall be in a
form acceptable to the department. Posting of the bond or letter of credit
shall not relieve the employer from withholding and paying over amounts based
on wages paid by the employer under any provision of ORS 316.162 to 316.221.
The department may, in its discretion, at any time apply such bond or letter of
credit or part thereof to the delinquencies or indebtedness of the employer
arising under any provision of ORS 316.162 to 316.221 and accruing after the
date the bond or letter of credit was posted. Appeal of an action of the
department under this section shall not relieve an employer of the requirement
during the pendency of the appeal.
(2) Before requiring an employer to post a
bond or irrevocable letter of credit under subsection (1) of this section, the
department shall determine that the employer has failed to make payment to the
department of amounts required to be withheld and paid over under any provision
of ORS 316.162 to 316.221 for at least three calendar quarters, and the total
amount of delinquent payments exceeds $2,500, exclusive of interest or
penalties. For purposes of this subsection, a payment shall not be considered
delinquent if the employer’s liability to withhold is subject to appeal to the
tax court.
(3) The department shall not require a
bond or irrevocable letter of credit to be posted under this section if the
employer elects to notify the department of the times of payment of wages to
the employees of the employer, and, notwithstanding ORS 316.197, to pay over
amounts withheld within three banking days after the dates the wages were paid.
(4) Before requiring an employer to post a
bond or irrevocable letter of credit or make payment of amounts required to be
withheld in the manner prescribed in subsection (3) of this section, the
department shall attempt to obtain payment of delinquent amounts through other
methods of collection, however, the department is not required to seize or sell
real or personal property in order to comply with the requirements of this
subsection.
(5) Any bond or irrevocable letter of
credit required under subsection (1) of this section shall become the sole
property of the department and shall be held by the department to guarantee
payment of withholding taxes by the employer. The bond or letter of credit
shall be held for the benefit of the State of Oregon, subject only to the
provisions of subsection (6) of this section. The bond or letter of credit
shall be prior to all other liens, claims or encumbrances and shall be exempt
from any process, attachment, garnishment or execution.
(6) If an employer ceases to be an
employer subject to ORS 316.162 to 316.221, the department shall, upon receipt
of all payments due from the employer for withheld amounts, cancel any bond or
irrevocable letter of credit given under this section. Such bonds or letters of
credit held for the benefit of the State of Oregon shall first be applied to
any indebtedness or deficiencies due from the employer under ORS 316.162 to 316.221
and accruing after the date the bond or letter of credit was posted before any
return is made to the employer. The employer shall have no interest in such
bond or letter of credit prior to full compliance with this section and all
provisions of ORS 316.162 to 316.221.
(7) If an employer required to post a bond
or irrevocable letter of credit or make payment of amounts withheld in the
manner prescribed under this section makes full payment of all delinquent
amounts due and owing at the time the bond, letter of credit or accelerated
payment schedule was required and makes payment of amounts due under ORS
316.162 to 316.221 and files returns required in connection with those payments
in a timely manner for the succeeding four calendar quarters, the department
shall release the employer from the requirement to post the bond or letter of
credit or make accelerated payments of amounts withheld.
(8) If any employer fails to comply with
subsections (1) to (7) of this section, the Oregon Tax Court, upon commencement
of an action by the department for that purpose, may order the employer to post
the required bond or irrevocable letter of credit or make accelerated payments
of amounts withheld. The employer’s failure to obey an order of the court is
punishable by contempt. If the Oregon Tax Court determines that an order of
compliance enforceable by contempt proceedings will not assure the payment of
withheld taxes by the employer, the court may enjoin the employer from further
employing individuals in this state or continuing in business therein until the
employer has complied with subsections (1) to (7) of this section. [1985 c.406 §§2,3;
1991 c.331 §143; 1995 c.650 §36; 1997 c.631 §§453,454]
316.165
[1953 c.304 §19; repealed by 1969 c.493 §99]
316.167
Withholding of tax required; elective provisions for agricultural employees;
liability of supplier of funds to employer for taxes.
(1) Every employer at the time of the payment of wages to any employee shall
deduct and retain from such wages an amount determined, at the employer’s
election, either (a) by a “percentage method” withholding table or (b) by “wage
bracket” withholding tables, prepared and furnished under the rules and
regulations of the Department of Revenue. However, in the case of wages paid to
an employee whose services to the employer consist solely of labor in
connection with the planting, cultivating or harvesting of seasonal
agricultural crops, the employer may elect to withhold two percent of the total
wages paid without regard to any withholding exemptions.
(2) Except in the case of an agricultural
employee, the amount withheld shall be computed on the basis of the total
amount of the wages and the number of withholding exemptions claimed by the
employee, without deduction for any amount withheld.
(3) If a lender, surety or other person
who supplies funds to or for the account of an employer for the purpose of
paying wages of the employees of such employer has actual notice or knowledge
that such employer does not intend to or will not be able to make timely
payment or deposit of the tax required to be deducted and withheld, such
lender, surety or other person shall be liable to the State of Oregon in a sum
equal to the taxes together with interest which are not timely paid over to the
department. Such liability shall be limited to the principal amount supplied by
such lender, surety or other person, and any amounts so paid to the department
shall be credited against the liability of the employer.
(4) With the approval of the Oregon
Department of Administrative Services, the department may enter into contracts
with banking institutions including but not limited to Federal Reserve Banks,
incorporated banks, trust companies, domestic building and loan associations,
savings and loan associations or credit unions authorizing them to receive as
financial agents of the department any tax required to be withheld and paid to
the department. [1969 c.493 §25; 1975 c.394 §1; 1977 c.604 §2; 1982 s.s.1 c.1 §1]
316.168
Employer required to file combined quarterly tax report.
(1) Except as otherwise provided by law, every employer subject to the
provisions of ORS 316.162 to 316.221, 656.506 and ORS chapter 657, or a
payroll-based tax imposed by a mass transit district and administered by the
Department of Revenue under ORS 305.620, shall make and file a combined
quarterly tax and assessment report upon a form prescribed by the department.
(2) The report shall be filed with the
Department of Revenue on or before the last day of the month following the
quarter to which the report relates and shall be deemed received on the date of
mailing, as provided in ORS 305.820.
(3) The report shall be accompanied by
payment of any tax or assessment due and a combined tax and assessment payment
coupon prescribed by the department. The employer shall indicate on the coupon
the amount of the total payment and the portions of the payment to be paid to
each of the tax or assessment programs.
(4) The Department of Revenue shall credit
the payment to the tax or assessment programs in the amounts indicated by the
employer on the coupon and shall promptly remit the payments to the appropriate
taxing or assessing body.
(5) If the employer fails to allocate the
payment on the coupon, the department shall allocate the payment to the proper
tax or assessment programs on the basis of the percentage the payment bears to
the total amount due.
(6) The Department of Revenue shall
distribute copies of the combined quarterly tax and assessment report and the
necessary tax or assessment payment information to each of the agencies charged
with the administration of a tax or assessment covered by the report.
(7) The Department of Revenue, the
Employment Department and the Department of Consumer and Business Services
shall develop a system of account numbers and assign to each employer a single
account number representing all of the tax and assessment programs included in
the combined quarterly tax and assessment report. [1989 c.901 §2; 1993 c.760 §2;
2009 c.33 §20]
316.169
Circumstances in which person other than employer required to withhold tax.
(1) If a lender, surety or other person who is not an employer with respect to
an employee pays wages directly to the employee, or to an agent on behalf of
the employee, the lender, surety or other person shall deduct and retain from
the wages, and shall be liable to this state for, an amount equal to the amount
required to be withheld from the employee’s wages by the employer under ORS
316.167.
(2) A lender, surety or other person
described under this section shall file a combined quarterly tax report and
make payment of the tax or assessment that is due in the time and manner
prescribed for employers under ORS 316.168.
(3) Amounts paid under this section shall
be credited against the liability of the employer under ORS 316.167.
(4) A lender, surety or other person
described under this section shall be considered to be an employer with respect
to withholdings made under this section or required to be made under this
section for purposes of ORS 316.191, 316.197, 316.202, 316.207 and 316.212.
(5) The employer of an employee that
receives wages from a lender, surety or other person shall not be discharged
from any liability or other obligation under ORS 316.162 to 316.221 except as
provided for in subsection (3) of this section. [1997 c.133 §6]
316.170
[1953 c.304 §20; repealed by 1969 c.493 §99]
316.171
Application of tax and report to administration of tax laws.
Except as provided in this section and ORS 314.840, 316.168, 316.197, 316.202
and 657.571, the statutes and regulations applicable to each agency, requiring
a report and imposing a tax, shall govern the audit and examination of reports
and returns, determination of deficiencies, assessments, claims for refund,
penalties, interest, administrative and judicial appeals and the procedures
relating thereto. [1989 c.901 §3]
316.172
Tax withholding tables to be prepared by department.
(1) The Department of Revenue shall prepare a table for use with the percentage
method that provides for the deduction and withholding of a tax equal to a
specific percent (to be determined by the department) of the amount by which
the wages for a given payroll period (daily, weekly, biweekly, semimonthly,
monthly, quarterly, semiannually or annually, as the case may be) exceed the
number of withholding exemptions claimed, multiplied by the amount of one such
exemption for each payroll period (such amount being determined by the
department for each such period). The determinations of the department shall
result, so far as is practicable, in withholding from the employee a sum
substantially equivalent to the amount of the tax that the employee will be
required to pay under this chapter upon such wages. To accomplish this purpose,
the department may make special provision for employees who are in the state
for limited periods of time.
(2) The department shall prepare tables
for use in computing withholding of tax by wage brackets. The wage brackets
shall be graduated so that the amount withheld is, as far as practicable, substantially
equivalent to the amount of the tax that the employee will be required to pay
under this chapter upon such wages. [1969 c.493 §26; 1973 c.402 §20]
316.175
[1953 c.304 §21; repealed by 1969 c.493 §99]
316.177
Reliance on withholding statement; penalty for statement without reasonable
basis. (1) If an employee does not claim a
different number of withholding exemptions for state withholding purposes, the
employee shall be entitled to the same number of withholding exemptions as the
number of withholding exemptions to which the employee is entitled for federal
income tax withholding purposes. If an employee does not claim a different
number of withholding exemptions for state withholding purposes, the employer
may rely upon the number of federal withholding exemptions claimed by the
employee, or authorized or specified under the Internal Revenue Code. If the
employee does claim a different number of withholding exemptions for state
withholding purposes, the employer shall rely on the number specified on that
claim.
(2) If any employee makes a statement for
federal income tax withholding purposes which claims more than 10 withholding
exemptions, or claims exemption from withholding and the employee’s income is
expected to exceed $200 per week for both federal and state purposes, or claims
exemption from withholding for state purposes but not for federal purposes, and
as of the time the statement was made there was no reasonable basis for the
statement, the Department of Revenue shall assess and collect from the employee
a penalty of $500.
(3) The penalty imposed under this section
is in addition to any other penalty imposed by law. Any employee against whom a
penalty is assessed under this section may appeal to the tax court as provided
in ORS 305.404 to 305.560. If the penalty is not paid within 10 days after the
order of the tax court becomes final, the department may record the order and
collect the amount assessed without interest in the same manner as income tax
deficiencies are recorded and collected under ORS 314.430.
(4) The department may waive all or any
part of the penalty imposed under subsection (2) of this section if the income
tax liability of the employee for the taxable year is equal to or less than the
sum of:
(a) The credits against taxes allowed for
purposes of this chapter; and
(b) The payments of estimated tax which
are considered payments on account of the tax liability of the employee under
ORS 316.579 and 316.583. [1969 c.493 §27; 1987 c.293 §19; 1987 c.843 §20; 1993
c.730 §42; 1995 c.650 §37]
316.180
[1953 c.304 §22; repealed by 1969 c.493 §99]
316.182
Exemption certificate. (1) Subject to subsection (2) or
(3) of this section and if the employee does not claim a different number of
withholding exemptions for purposes of this chapter, an employer shall use the
exemption certificate filed by the employee with the employer under the income
tax withholding provisions of the Internal Revenue Code for determining the
number of withholding exemptions to be used in computing the tax to be withheld
under ORS 316.167 and 316.172. If a new exemption certificate is not filed as
provided under section 1581 of the Tax Reform Act of 1986 (P.L. 99-514) for
federal purposes, the employer shall use the same number of withholding exemptions
as used for purposes of the Internal Revenue Code for determining the amount of
tax to be withheld under ORS 316.167 and 316.172.
(2) The Department of Revenue may require
an exemption certificate to be filed on a form prescribed by the department in any
circumstance where the department finds that an exemption certificate filed for
purposes of the Internal Revenue Code does not properly reflect the number of
withholding exemptions allowable under this chapter.
(3) No exemption certificate need be procured
from an employee whose wages consist of wages as defined in ORS 316.162 (2)(e).
[1969 c.493 §28; 1987 c.293 §20; 1997 c.839 §16; 2001 c.660 §41]
316.185
[1953 c.304 §23; 1955 c.129 §1; subsection (5) derived from 1955 c.129 §2; 1965
c.26 §4; repealed by 1969 c.493 §99]
316.187
Amount withheld is in payment of employee’s tax.
The amounts deducted from the wages of an employee during any calendar year in
accordance with ORS 316.167 and 316.172 shall be considered to be in part
payment of the tax on such employee’s income for the taxable year which begins
within such calendar year, and the return made by the employer pursuant to ORS
316.202 shall be accepted by the Department of Revenue as evidence in favor of
the employee of the amounts so deducted from the employee’s wages. [1969 c.493 §29]
316.189
Withholding of state income taxes from certain periodic payments.
(1) As used in this section:
(a) “Commercial annuity” means an annuity,
endowment or life insurance contract issued by an insurance company authorized
to transact insurance in the State of Oregon.
(b) “Department” means the Oregon
Department of Revenue.
(c) “Designated distribution” means any
distribution or payment from or under an employer deferred compensation plan,
an individual retirement plan or a commercial annuity. “Designated distribution”
does not include any amount treated as wages as defined in ORS 316.162, the
portion of any distribution or payment that is not includable in the gross
income of the recipient or any distribution or payment made under section
404(k)(2) of the Internal Revenue Code.
(d) “Employer deferred compensation plan”
means any pension, annuity, profit-sharing or stock bonus plan or other plan
deferring the receipt of compensation.
(e) “Individual retirement plan” means an
individual retirement account described in section 408(a) of the Internal
Revenue Code or an individual retirement annuity described in section 408(b) of
the Internal Revenue Code.
(f) “Nonperiodic distribution” means any
designated distribution which is not a periodic payment.
(g) “Payer” means any payer of a
designated distribution doing business in or making payments or distributions
from sources in this state.
(h) “Periodic payment” means a designated
distribution which is an annuity or similar periodic payment.
(i) “Plan administrator” means a plan
administrator as described in section 414(g) of the Internal Revenue Code, who
is the administrator of a plan created by an Oregon employer.
(j) “Qualified total distribution” means
any designated distribution made under a retirement, annuity or deferred
compensation plan described in section 401(a), 403(a) or 457(b) of the Internal
Revenue Code, that consists of the balance to the credit of the employee,
exclusive of accumulated deductible employee contributions, made within one tax
year of the recipient.
(2)(a) The payer of any periodic payment
shall withhold from such payment the amount which would be required to be
withheld from such payment under ORS 316.167 if the payment were wages paid by
an employer to an employee. The time and manner of payment of withheld amounts
to the department shall be the same as that required under ORS 316.197 for
withholding of income taxes from wages.
(b) The payer of any nonperiodic
distribution shall withhold from such distribution an amount determined under
tables prescribed by the department.
(c) The maximum amount to be withheld
under this section on any designated distribution shall not exceed 10 percent
of the amount of money and the fair market value of other property received in
the distribution. If the distribution is not subject to withholding for federal
income tax purposes under section 3405 of the Internal Revenue Code, it shall
not be subject to withholding under this section.
(3)(a) Except as provided in paragraph (b)
of this subsection, the payer of a designated distribution shall withhold and
be liable for payment of amounts required to be withheld under this section.
(b) In the case of any plan described in
section 401(a), 403(a) or 457(b) of the Internal Revenue Code, or section
301(d) of the Tax Reduction Act of 1975, the plan administrator shall withhold
and be liable for payment of amounts required to be withheld under this
section, unless the plan administrator has directed the payer to withhold the
tax and has provided the payer with the information required by rule of the
department.
(4)(a) An individual may elect to have no
withholding by a payer under subsection (2) of this section. If an individual
has elected to have no federal withholding from payments or distributions
described in this section the individual shall be deemed to have elected no
withholding for state purposes, unless the individual notifies the payer
otherwise.
(b) An election made under this subsection
shall be effective as provided under rules promulgated by the department. The
rules required under this paragraph shall provide the manner in which an
election may be revoked and when such revocation shall be effective.
(5) The payer of any periodic payment or
nonperiodic distribution shall give notice to the payee of the right to make an
election to have no state withholding from the payment or distribution. The
department shall provide by rule for the time and manner of giving the notice
required under this subsection.
(6) Any rules permitted or required to be
promulgated by the department under this section shall, insofar as is
practicable, be consistent with corresponding provisions of section 3405 of the
Internal Revenue Code and regulations promulgated thereunder.
(7) Any designated distribution shall be
treated as if it were wages paid by an employer to an employee within the
meaning of ORS 316.162 to 316.221 for all other purposes of ORS 316.162 to
316.221. In the case of any designated distribution not subject to withholding
by reason of an election under subsection (4) of this section, the amount
withheld shall be treated as zero. [1985 c.87 §9; 2003 c.77 §17]
Note:
316.189 was added to and made a part of ORS chapter 316 by legislative action
but was not added to any smaller series therein. See Preface to Oregon Revised
Statutes for further explanation.
316.190
[Amended by 1953 c.304 §24; 1955 c.92 §1; subsection (3) derived from 1955 c.92
§2; repealed by 1969 c.493 §99]
316.191
Withholding taxes at time and in manner other than required by federal law;
rules. Notwithstanding the provisions of ORS
316.197:
(1) When adherence to the federal
withholding system creates an undue burden on an employer, the employer may
request and the Department of Revenue may permit that taxes be withheld and
paid over within a time and in a manner other than that required under federal
law.
(2) If the department permits the
modification of the time and manner of withholding and payment of taxes under
this section the method of withholding and payment permitted shall, whenever
possible, provide for withholding and payment in a manner similar to that
required for other employers required to deduct and retain similar amounts of
income taxes from wages paid to their employees in Oregon.
(3) The department shall adopt rules
establishing the manner in which an employer may request a modification under
this section, and may by rule prescribe a modification of the time and manner
of withholding and payment of taxes in such instances as it considers
necessary. The department may adopt by rule any exceptions to federal
withholding requirements that have been adopted by the Internal Revenue
Service. [1985 c.87 §2]
316.192
[1969 c.493 §30; 1971 c.333 §2; repealed by 1985 c.602 §7]
316.193
Withholding of state income taxes from federal retired pay for members of
uniformed services. (1) The Department of Revenue
may enter into an agreement with the appropriate United States agency or
instrumentality for the voluntary withholding of state income taxes from the
retired pay of members of the uniformed services under the provisions of
section 654, Public Law 98-525. The department is hereby authorized to do all
acts and comply with any requirements necessary to enable retired members of
the uniformed services to elect voluntary withholding of state income taxes
from their retired pay.
(2) The department may establish by rule a
minimum monthly amount to be withheld and paid over for any member electing
voluntary withholding of state income taxes under an agreement entered into
under subsection (1) of this section.
(3) Notwithstanding ORS 314.835 or
314.840, the department may disclose to the Department of Defense the name,
address or Social Security number of any member electing voluntary withholding
of state income taxes whenever necessary to enable the Department of Defense to
implement such withholding under the terms of an agreement entered into under
subsection (1) of this section.
(4) As used in this section:
(a) “Member” means any person retired from
a regular or reserve component of one of the uniformed services, who has Oregon
personal income tax liability in connection with the receipt of retired pay.
(b) “Retired pay” means pay and benefits
received based on conditions of the federal retirement law, pay grade, years of
service, date of retirement, transfer to Fleet Reserve or Fleet Marine Corps
Reserve or disability.
(c) “Uniformed services” means the Army,
Navy, Air Force, Marine Corps, Coast Guard, commissioned corps of the United
States Public Health Service and the commissioned corps of the National Oceanic
and Atmospheric Administration. [1985 c.87 §8]
Note:
316.193 was added to and made a part of ORS chapter 316 by legislative action
but was not added to any smaller series therein. See Preface to Oregon Revised
Statutes for further explanation.
316.194
Withholding from lottery prize payments; rules.
(1) 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 prize exceeds $600, the
commission shall provide the prize recipient an income reporting form
indicating the amount of the prize payment being made. At the request of the
prize recipient or the department, the commission shall provide the requester a
copy of an income reporting form provided under this subsection. [1997 c.849 §4;
1999 c.43 §1; 1999 c.143 §5; 2003 c.48 §1]
316.195
[1953 c.304 §25; repealed by 1969 c.493 §99]
316.196
Withholding of state income taxes from federal retirement pay for civil service
annuitant. (1) The Department of Revenue may enter
into an agreement with the United States Office of Personnel Management for the
voluntary withholding of state income taxes from the retirement pay of United
States civil service annuitants under the provisions of section 1705 of Public
Law 97-35. The department is hereby authorized to do all acts and comply with
any requirements necessary to enable retired United States civil servants to
elect voluntary withholding of state income taxes from their retirement pay.
(2) The department shall establish by rule
a procedure under which a United States civil service annuitant may request
voluntary withholding under an agreement entered into under subsection (1) of
this section. The procedure may include a minimum monthly amount to be withheld
and paid over to the state.
(3) Notwithstanding ORS 314.835 or
314.840, the department may disclose to the United States Office of Personnel
Management the name, address or Social Security number of any United States
civil service annuitant electing voluntary withholding of state income taxes
whenever necessary to enable the United States Office of Personnel Management
to implement such withholding under the terms of an agreement entered into
under subsection (1) of this section.
(4) As used in this section:
(a) “Civil service annuitant” means any
person retired from the federal civil service who has Oregon personal income
tax liability in connection with the receipt of retirement pay. “Civil service
annuitant” includes a survivor annuitant within the meaning of Title 5, United
States Code, section 8331.
(b) “Retirement pay” means regular,
recurring monthly annuity payments received based on conditions of federal
retirement law, but does not include retired pay as defined in ORS 316.193. [1985
c.87 §7]
Note:
316.196 was added to and made a part of ORS chapter 316 by legislative action
but was not added to any smaller series therein. See Preface to Oregon Revised
Statutes for further explanation.
316.197
Payment to department by employer; interest on delinquent payments.
(1)(a) Except as provided under ORS 316.191 or paragraph (b) of this
subsection, within the time that each employer is required to pay over taxes
withheld for federal income tax purposes for any period, the employer shall pay
over to the Department of Revenue or to a financial agent of the department the
amounts required to be withheld under ORS 316.167 and 316.172 for the same
period. Any employer not required to withhold federal income taxes for any
period but who is required to deduct and retain amounts from wages paid to an
employee under ORS 316.167 and 316.172 for the same period shall pay over to
the department or financial agent of the department, taxes withheld for the
period, within the time and in the manner, as if the employer were required to
withhold taxes for the period under federal law.
(b) Notwithstanding the provisions of
paragraph (a) of this subsection, any employer of agricultural employees who is
not required to withhold federal income taxes for any period but who is
required to deduct and retain amounts from wages paid to those employees under
ORS 316.167 and 316.172 shall pay over to the department, or financial agent of
the department, taxes so withheld at the same time and for the same period for
which the employer is required to pay over employer and employee taxes under
chapter 21 of the Internal Revenue Code (Federal Insurance Contributions Act).
(2) Every amount so paid over shall be
accounted for as part of the collections under this chapter. No employee has
any right of action against an employer in respect of any moneys deducted from
wages and paid over in compliance or intended compliance with this section.
(3) If any amount required to be withheld
and paid over to the department is delinquent, interest shall accrue at the
rate prescribed under ORS 305.220 on that amount from the last day of the month
following the end of the calendar quarter within which the amount was required
to be paid to the department to the date of payment. The provisions of this
subsection shall not relieve any employer from liability for a late payment
penalty under any other provision of law. [1969 c.493 §31; 1975 c.594 §1; 1982
s.s.1 c.1 §2; 1983 c.697 §1; 1985 c.87 §4; 1989 c.901 §7]
316.198
Payment by electronic funds transfer; phase-in; rules.
(1) An employer required to make a combined quarterly tax and assessment
payment under ORS 316.168 shall make the payment by means of electronic funds
transfer if the employer is required to make federal payroll tax payments
electronically.
(2) The Department of Revenue may adopt
rules that provide exemptions from the requirement that combined quarterly tax
and assessment payments be paid by electronic funds transfer when the taxpayer
is disadvantaged by required payment by electronic funds transfer.
(3) The Department of Revenue may accept
electronically filed payments voluntarily submitted by an employer who is not
required to pay by means of electronic funds transfer.
(4) As used in this section, the term “electronic
funds transfer” has the meaning given that term in ORS 293.525. [1997 c.299 §2;
2001 c.28 §6]
316.200
[1953 c.304 §26; 1965 c.26 §5; repealed by 1969 c.493 §99]
316.202
Reports by employer; waiver; penalty for failure to report; rules.
(1) With each payment made to the Department of Revenue, every employer shall
deliver to the department, on a form prescribed by the department showing the
total amount of withheld taxes in accordance with ORS 316.167 and 316.172, and
supply such other information as the department may require. The employer is
charged with the duty of advising the employee of the amount of moneys
withheld, in accordance with such regulations as the department may prescribe,
using printed forms furnished or approved by the department for such purpose.
(2) Except as provided in subsection (4)
of this section, every employer shall submit a combined quarterly return to the
department on a form provided by it showing the number of payments made, the
withheld taxes paid during the quarter and an explanation of federal
withholding taxes as computed by the employer. The report shall be filed with
the department on or before the last day of the month following the end of the
quarter.
(3) The employer shall make an annual
return to the department on forms provided or approved by it, summarizing the
total compensation paid and the taxes withheld for all employees during the
calendar year and shall file the same with the department on or before the due
date of the corresponding federal return for the year for which report is made.
Failure to file the annual report without reasonable excuse on or before the
30th day after notice has been given to the employer of failure subjects the
employer to a penalty of $100. The department may by rule require additional
information the department finds necessary to substantiate the annual return,
including but not limited to copies of federal form W-2 for individual
employees, and may prescribe circumstances under which the filing requirement
imposed by this subsection is waived.
(4) Notwithstanding the provisions of
subsection (2) of this section, employers of agricultural employees may submit
returns annually showing the number of payments made and the withheld taxes
paid. However, such employers shall make and file a combined quarterly tax
report with respect to other tax programs, as required by ORS 316.168. [1969
c.493 §32; 1973 c.83 §1; 1982 s.s.1 c.1 §3; 1983 c.697 §2; 1987 c.366 §4; 1989
c.901 §8; 1993 c.593 §5; 1995 c.815 §1]
316.205
[1953 c.304 §27; repealed by 1957 c.632 §1 (314.280 enacted in lieu of 316.205
and 317.180)]
316.207
Liability for tax; warrant for collection; conference; appeal.
(1) Every employer who deducts and retains any amount under ORS 316.162 to
316.221 shall hold the same in trust for the State of Oregon and for the
payment thereof to the Department of Revenue in the manner and at the time
provided in ORS 316.162 to 316.221.
(2) At any time the employer fails to
remit any amount withheld, the department may enforce collection by the
issuance of a distraint warrant for the collection of the delinquent amount and
all penalties, interest and collection charges accrued thereon. Such warrant
shall be issued, recorded and proceeded upon in the same manner and shall have
the same force and effect as is prescribed with respect to warrants for the
collection of delinquent income taxes.
(3)(a) In the case of an employer that is
assessed pursuant to the provisions of ORS 305.265 (12) and 314.407 (1), the
department may issue a notice of liability to any officer, employee or member
described in ORS 316.162 (3)(b) of such employer within three years from the
time of assessment. Within 30 days from the date the notice of liability is
mailed to the officer, employee or member, such officer, employee or member
shall pay the assessment, plus penalties and interest, or advise the department
in writing of objections to the liability and, if desired, request a
conference. Any conference shall be governed by the provisions of ORS 305.265
pertaining to a conference requested from a notice of deficiency.
(b) After a conference or, if no
conference is requested, a determination of the issues considering the written
objections, the department shall mail the officer, employee or member a
conference letter affirming, canceling or adjusting the notice of liability.
Within 90 days from the date the conference letter is mailed to the officer,
employee or member, such officer, employee or member shall pay the assessment,
plus penalties and interest, or appeal to the tax court in the manner provided
for an appeal from a notice of assessment.
(c) If neither payment nor written
objection to the notice of liability is received by the department within 30
days after the notice of liability has been mailed, the notice of liability
becomes final. In such event, the officer, employee or member may appeal the
notice of liability to the tax court within 90 days after it became final in
the manner provided for an appeal from a notice of assessment.
(4)(a) In the case of a failure to file a
withholding tax report on the due date, governed by the provisions of ORS
305.265 (10) and 314.400, the department, in addition to the provisions of ORS
305.265 (10) and 314.400, may send notices of determination and assessment to
any officer, employee or member described in ORS 316.162 (3)(b) any time within
three years after the assessment of an employer described in ORS 316.162 (3)(a).
The time of assessment against such officer, employee or member shall be 30
days after the date the notice of determination and assessment is mailed.
Within 30 days from the date the notice of determination and assessment is
mailed to the officer, employee or member, such officer, employee or member
shall pay the assessment, plus penalties and interest, or advise the department
in writing of objections to the assessment, and if desired, request a
conference. Any conference shall be governed by the provisions of ORS 305.265
pertaining to a conference requested from a notice of deficiency.
(b) After a conference or, if no
conference is requested, a determination of the issues considering the written
objections, the department shall mail the officer, employee or member a
conference letter affirming, canceling or adjusting the notice of determination
and assessment. Within 90 days from the date the conference letter is mailed to
the officer, employee or member, such officer, employee or member shall pay the
assessment, plus penalties and interest, or appeal in the manner provided for
an appeal from a notice of assessment.
(c) If neither payment nor written
objection to the notice of determination and assessment is received by the
department within 30 days after the notice of determination and assessment has
been mailed, the notice of determination and assessment becomes final. In such
event, the officer, employee or member may appeal the notice of determination
and assessment to the tax court within 90 days after it became final in the
manner provided for an appeal from a notice of assessment.
(5)(a) More than one officer or employee
of a corporation may be held jointly and severally liable for payment of
withheld taxes.
(b) Notwithstanding the provisions of ORS
314.835, 314.840 or 314.991, if more than one officer or employee of a
corporation may be held jointly and severally liable for payment of withheld
taxes, the department may require any or all of the officers, members or
employees who may be held liable to appear before the department for a joint
determination of liability. The department shall notify each officer, member or
employee of the time and place set for the determination of liability.
(c) Each person notified of a joint
determination under this subsection shall appear and present such information
as is necessary to establish that person’s liability or nonliability for
payment of withheld taxes to the department. If any person notified fails to
appear, the department shall make its determination on the basis of all the
information and evidence presented. The department’s determination shall be
binding on all persons notified and required to appear under this subsection.
(d)(A) If an appeal is taken to the Oregon
Tax Court pursuant to ORS 305.404 to 305.560 by any person determined to be
liable for unpaid withholding taxes under this subsection, each person required
to appear before the department under this subsection shall be impleaded by the
plaintiff. The department may implead any officer, employee or member who may
be held jointly and severally liable for the payment of withheld taxes. Each
person impleaded under this paragraph shall be made a party to the action
before the tax court and shall make available to the tax court such information
as was presented before the department, as well as such other information as
may be presented to the court.
(B) The court may determine that one or
more persons impleaded under this paragraph are liable for unpaid withholding
taxes without regard to any earlier determination by the department that an
impleaded person was not liable for unpaid withholding taxes.
(C) If any person required to appear
before the court under this subsection fails or refuses to appear or bring such
information in part or in whole, or is outside the jurisdiction of the tax
court, the court shall make its determination on the basis of all the evidence
introduced. All such evidence shall constitute a public record and shall be
available to the parties and the court notwithstanding ORS 314.835, 314.840 or
314.991. The determination of the tax court shall be binding on all persons
made parties to the action under this subsection.
(e) Nothing in this section shall be
construed to preclude a determination by the department or the Oregon Tax Court
that more than one officer, employee or member are jointly and severally liable
for unpaid withholding taxes. [1969 c.493 §33; 1985 c.406 §4; 1989 c.423 §3;
1993 c.593 §6; 1995 c.650 §38; 1997 c.839 §17; 2001 c.660 §42; 2005 c.688 §4]
316.209
Applicability of ORS 316.162 to 316.221 when services performed by qualified
real estate broker or direct seller. (1) For
purposes of ORS 316.162 to 316.221, in the case of services performed as a
qualified real estate broker, qualified principal real estate broker or as a
direct seller:
(a) The individual performing the services
shall not be treated as an employee; and
(b) The person for whom the services are
performed shall not be treated as an employer.
(2) As used in this section, “qualified
real estate broker” or “qualified principal real estate broker” means any
individual if:
(a) The individual is a real estate
licensee under ORS 696.010 to 696.495, 696.600 to 696.785, 696.800 to 696.870
and 696.995;
(b) Substantially all of the remuneration
(whether or not paid in cash) for the services performed by the individual as a
real estate licensee is directly related to sales or other output (including
the performance of services) rather than to the number of hours worked; and
(c) The services performed by the
individual are performed pursuant to a written contract between the individual
and the real estate broker, principal real estate broker or real estate
appraiser for whom the services are performed and the contract provides that
the individual will not be treated as an employee with respect to the services
for Oregon tax purposes.
(3) As used in this section, “direct
seller” means any individual if:
(a) The individual is:
(A) Engaged in the trade or business of
selling, or soliciting the sale of, consumer products to any buyer on a
buy-sell basis, a deposit-commission basis or any similar basis, which the
Department of Revenue prescribes by rule, for resale by the buyer or any other
person, in the home or otherwise than in a permanent retail establishment; or
(B) Engaged in the trade or business of
selling, or soliciting the sale of, consumer products in the home or otherwise
than in a permanent retail establishment;
(b) Substantially all the remuneration
(whether or not paid in cash) for the performance of the services described in
paragraph (a) of this subsection is directly related to sales or other output
(including the performance of services) rather than to the number of hours
worked; and
(c) The services performed by the
individual are performed pursuant to a written contract between the individual
and the person for whom the services are performed and the contract provides
that the individual will not be treated as an employee with respect to the
services for Oregon tax purposes. [1983 c.597 §3; 2001 c.300 §61]
316.210
[1953 c.304 §28; repealed by 1957 c.632 §1 (314.285 enacted in lieu of 316.210
and 317.185)]
316.212
Application of penalties, misdemeanors and jeopardy assessment; employer as
taxpayer. The provisions of the income tax laws
in ORS chapters 305 and 314 and this chapter, relating to penalties,
misdemeanors and jeopardy assessments, apply to employers subject to the
provisions of ORS 316.162 to 316.221, and for these purposes any amount
deducted or required to be deducted and remitted to the Department of Revenue
under ORS 316.162 to 316.221 is considered the tax of the employer and with
respect to such amount the employer is considered as a taxpayer. [1969 c.493 §34;
1982 s.s.1 c.16 §10; 1985 c.87 §5]
(Professional
Athletic Teams)
316.213
Definitions for ORS 316.213 to 316.219. (1) As used
in ORS 316.213 to 316.219:
(a) “Duty days” means the days during the
tax year from the beginning of the official preseason training period of a
professional athletic team through the last game in which the professional
athletic team competes or is scheduled to compete during the tax year.
(b) “Member of a professional athletic
team” means an athlete or other individual rendering service to a professional
athletic team if the compensation of the athlete or other individual exceeds
$50,000 in a tax year.
(2) The Department of Revenue may further
define by rule the terms defined in this section in a manner consistent with
this section. [2003 c.808 §6]
316.214
Withholding requirements for members of professional athletic teams.
(1) A person who transacts business in the State of Oregon and who pays wages,
salary, bonuses or other taxable income to a member of a professional athletic
team, in lieu of the withholding requirements under ORS 316.167, shall withhold
eight percent of the income as provided in this section and by rule of the
Department of Revenue.
(2) The person withholding amounts under
this section shall pay the amounts withheld to the Department of Revenue at the
time and in the manner prescribed by the department by rule.
(3) If the member of a professional
athletic team is a resident of the State of Oregon, all compensation paid to
the member, whether or not attributable to duty days, is subject to withholding
under this section.
(4) If the member of a professional
athletic team is not a resident of the State of Oregon, a portion of the
compensation paid to the member is subject to withholding under this section.
The portion subject to withholding is that portion of compensation received for
the tax year that bears the same ratio to total compensation received for the
tax year as the number of duty days within this state bears to the total number
of duty days spent both within and outside this state during the tax year.
(5) Notwithstanding the description of the
portion of compensation subject to withholding in subsection (4) of this
section, the Department of Revenue may provide by rule alternative
methodologies for determining the portion of compensation subject to withholding
under this section that the department determines to be fair and equitable. [2003
c.808 §7]
316.215
[1969 c.493 §35; 1975 c.672 §6; 1978 c.9 §2; 1985 c.345 §5; repealed by 1987
c.293 §54]
316.216
[1985 c.352 §2; formerly 316.857; renumbered 316.223 in 2003]
316.217
[1969 c.493 §36; repealed by 1987 c.293 §56]
316.218
Annual report of compensation paid to professional athletic team members.
(1) In addition to other reports and returns required by law or rule, a person
required to withhold compensation under ORS 316.214 shall file an annual report
with the Department of Revenue reporting:
(a) The total amount of compensation paid
during the year to the members of the professional athletic team for which the
report is being made.
(b) A roster of the members of the
professional athletic team for which the report is being made who were members
at any time during the year, that lists for each member:
(A) A taxpayer identification number;
(B) Compensation paid to the member; and
(C) The number of duty days in this state
and the total number of duty days for the year.
(c) The amount withheld under ORS 316.214
for the year.
(d) Other information the department may
require by rule.
(2) The report must be filed with the
department on or before April 15 following the year for which the report is
being made or at another time as the department may require by rule. [2003
c.808 §8]
316.219
Rules. (1) The Department of Revenue may adopt
administrative rules the department determines are necessary to:
(a) Implement the duties of the department
under ORS 316.213 to 316.219; and
(b) Carry out the purposes of ORS 316.213
to 316.221.
(2) The rules may include, but are not
limited to:
(a) Rules providing alternative
methodologies for determining the portion of compensation subject to
withholding under ORS 316.214 (4) that the department determines to be fair and
equitable; and
(b) Rules construing ORS 316.162 to
316.221 in a manner that is consistent and compatible with the withholding
provisions of ORS 316.213 to 316.219. [2003 c.808 §8a]
(Qualifying
Film Productions)
316.220
Alternative withholding requirements for qualifying film production
compensation; rules; refund prohibition. (1) A person
who has obtained a written certificate under section 1, chapter 559, Oregon
Laws 2005, who is engaged in a qualifying film production and who pays
qualifying compensation shall withhold, in lieu of the state personal income
tax withholding requirements under ORS 316.167, 6.2 percent of the qualifying
compensation paid.
(2) For tax years beginning on or after
January 1, 2007, the Department of Revenue may by rule prescribe a withholding
percentage that reflects the department’s best estimate of state personal
income tax attributable to qualifying compensation. If a withholding percentage
is established by rule, a person described in subsection (1) of this section
shall withhold at the percentage established by rule in lieu of subsection (1)
of this section and the state personal income tax withholding requirements under
ORS 316.167.
(3) A person who withholds amounts under
this section shall pay the amounts withheld to the Department of Revenue and
shall file combined quarterly tax and assessment reports in accordance with ORS
316.168.
(4) A person who is required to withhold
amounts under this section shall file, in addition to any other reports
required by law, a report with the Oregon Film and Video Office, reporting:
(a) The total amount of qualifying
compensation paid by the person;
(b) The names, taxpayer identification
numbers and amounts of qualifying compensation paid to each employee receiving
qualifying compensation during the period during which the qualifying film
production was produced;
(c) The total amount withheld under this
section for the period during which the qualifying film production was
produced; and
(d) Any other information required by the
office.
(5) The report must be filed with the
office as soon as is practicable following completion of the qualifying film
production or, in the case of a qualifying film production that consists of
commercials, annually on or before January 31 of the year following the year in
which the commercials were produced. The office shall report the total amount
reported by each person under subsection (4)(c) of this section to the
department.
(6) Notwithstanding ORS 316.171 or other
law governing claims for refund of withheld amounts under ORS 316.162 to
316.221, a person who withholds amounts under this section may not file a claim
for refund with respect to any amount shown as having been withheld or any
payment accompanying a report filed under ORS 316.162 to 316.221 for a
reporting period that overlaps a period for which a report is filed under
subsection (4) of this section. [2005 c.559 §4]
316.221
Disposition of withheld amounts. (1)
Notwithstanding ORS 316.168 or 316.502, the Department of Revenue shall deposit
into a suspense account established under ORS 293.445 amounts that are withheld
and paid to the department under ORS 316.220 and that equal the amounts
reported to the department by the Oregon Film and Video Office under ORS
316.220 (5).
(2) Notwithstanding ORS 314.835 or 314.840
or other law concerning the disclosure of tax information, the department may
send copies of withholding reports filed under ORS 316.162 to 316.221 by a
certificate holder and statements of the amounts actually withheld by a
certificate holder to the Oregon Film and Video Office.
(3) Amounts necessary to reimburse the
department for the expenses of the department in administering this section and
ORS 316.220, not to exceed one-half of one percent of amounts deposited in the
suspense account described in subsection (1) of this section, are continuously
appropriated to the department from the suspense account. The balance of the
suspense account shall be transferred to the Greenlight Oregon Labor Rebate
Fund established under section 2, chapter 559, Oregon Laws 2005. [2005 c.559 §5]
316.222
[1969 c.493 §37; repealed by 1987 c.293 §56]
NONRESIDENT
REPORTING
316.223
Alternate methods of filing, reporting and calculating liability for
nonresident employer and employee in state temporarily; rules.
(1) As used in this section:
(a) “Nonresident employer” means an
employer who:
(A) Has no permanent place of business
within this state; and
(B) Employs qualifying nonresident
employees to perform temporary services in this state.
(b) “Qualifying nonresident employee”
means an employee or independent contractor who:
(A) Is not a resident or part-year
resident of this state;
(B) Performs temporary services in this
state for one or more nonresident employers; and
(C) Has no income from Oregon sources
other than income earned in connection with the performance of temporary
services for one or more nonresident employers.
(c) “Temporary services” means services
performed during a limited period of time, not to exceed 200 days in one
calendar year.
(2) The Department of Revenue shall
provide for alternate methods of filing, reporting or calculating tax
liability, to be used by nonresident employers and qualifying nonresident
employees to report and pay Oregon personal income tax on income earned in
connection with the employees’ performance of temporary services in this state.
In providing for an alternate filing, reporting or calculating method, the
department shall have the power to:
(a) Prescribe forms to be filed by
nonresident employers to satisfy withholding registration, quarterly filing and
account termination filing requirements under ORS 316.162 to 316.221, or
employee estimated tax requirements under ORS 316.557 to 316.589.
(b) Prescribe forms to be filed by
qualifying nonresident employees to satisfy annual personal income tax return
requirements under ORS 316.362.
(c) Determine, based upon the
circumstances, the amount of withholding or estimated tax payments necessary to
result in a sum substantially equivalent to the amount of tax that a qualifying
nonresident employee will be required to pay under this chapter.
(d) Enter into agreements pursuant to ORS
305.150 for the purpose of finally determining the Oregon personal income tax
liability of qualifying nonresident employees.
(e) Determine whether and to what extent
other provisions of this chapter shall be applied to nonresident employers or
qualifying nonresident employees.
(3)(a) Except as provided in paragraph (b)
of this subsection, a nonresident employer shall comply with the requirements
of ORS 316.162 to 316.221 in the same manner as any other employer.
(b) A nonresident employer may elect to
employ an alternate method established by the department pursuant to this
section by notifying the department in the time and manner established by rule
of the department. Any nonresident employer giving notice of election under
this paragraph shall not be required to comply with the requirements of ORS
316.162 to 316.221.
(4)(a) Notwithstanding the election of a
nonresident employer to employ the alternate method established by the
department under this section, a qualifying nonresident employee may elect to
report and pay Oregon personal income tax on income earned by the employee in
connection with the employee’s performance of temporary services in this state
in the same manner as any other nonresident.
(b) If a nonresident employer does not
make the election permitted under subsection (3) of this section, the
qualifying nonresident employees of the employer shall report and pay Oregon
personal income tax on income earned in connection with their performance of
temporary services within this state in the same manner as any other
nonresident.
(5) The department may adopt any rules it
considers necessary to carry out the provisions of this section. [Formerly
316.216]
316.227
[1969 c.493 §38; repealed by 1987 c.293 §56]
316.255
[1953 c.304 §29; repealed by 1959 c.581 §1 (316.256 enacted in lieu of
316.255)]
316.256
[1959 c.581 §2 (enacted in lieu of 316.255); subsection (4) derived from 1959
c.581 §11; repealed by 1969 c.493 §99]
316.257
[1963 c.435 §4; repealed by 1969 c.493 §99]
316.258
[1961 c.225 §2; repealed by 1969 c.493 §99]
316.260
[1953 c.304 §30; repealed by 1969 c.493 §99]
316.265
[1953 c.304 §31; 1953 c.552 §7; repealed by 1959 c.581 §3 (316.266 enacted in
lieu of 316.265)]
316.266
[1959 c.581 §4 (enacted in lieu of 316.265); last sentence derived from 1959
c.581 §11; last sentence of subsection (6) enacted as 1961 c.225 §3; 1969 c.103
§1; repealed by 1969 c.493 §99]
ESTATES
AND TRUSTS
(Generally)
316.267
Application of chapter to estates and certain trusts.
The tax imposed by this chapter on individuals applies to the taxable income of
estates and trusts, except for trusts taxed as corporations under ORS chapter
317 or 318. [1969 c.493 §39; 1973 c.115 §3]
316.270
[1953 c.304 §32; repealed by 1969 c.493 §99]
316.272
Computation and payment on estate or trust. The
taxable income of an estate or trust shall be computed in the same manner as in
the case of an individual except as otherwise provided by this chapter. The tax
shall be paid by the fiduciary. [1969 c.493 §40; 1983 c.684 §21]
316.275
[1953 c.304 §33; 1959 c.591 §19; subsection (2) derived from 1959 c.591 §21;
repealed by 1969 c.493 §99]
316.277
Associations taxable as corporations exempt from chapter.
(1) An association, trust or other unincorporated organization that is taxable
as a corporation for federal income tax purposes is not subject to tax under
this chapter, but is taxable as a corporation under ORS chapter 317 or 318, or
both, as provided therein.
(2) An association, trust or other
unincorporated organization that is not taxable as a corporation for federal
income tax purposes but by reason of its purposes or activities is exempt from
federal income tax except with respect to its unrelated business taxable
income, is taxable under this chapter on such federally taxable income. [1969
c.493 §41; 1973 c.402 §21]
316.279
Treatment of business trusts and business trusts income.
A domestic or foreign business trust of the type defined in ORS 128.560 is
subject to tax under ORS chapter 317 or 318 and amounts distributed by it to
its shareholders shall be treated as distributions by a corporation for the
purposes of this chapter and ORS chapters 317 and 318, except that
distributions that are treated as unrelated business taxable income under
section 856(h)(3)(C) (pension-held REITs) of the Internal Revenue Code for
federal tax purposes shall also be treated as unrelated business taxable income
for state tax purposes. [1973 c.115 §2; 1995 c.556 §4]
316.280
[1953 c.304 §34; 1953 c.552 §8; 1955 c.256 §1; paragraph (d) of subsection (6)
of 1957 Replacement Part derived from 1955 c.256 §2; repealed by 1959 c.581 §5
(316.281 enacted in lieu of 316.280)]
316.281
[1959 c.581 §6 (enacted in lieu of 316.280); subsection (8) derived from 1959
c.581 §11; 1965 c.99 §1; repealed by 1969 c.493 §99]
(Resident
Estates and Trusts)
316.282
Definitions related to trusts and estates; rules.
(1) As used in this chapter:
(a) “Qualified funeral trust” has the
meaning given that term in section 685 of the Internal Revenue Code.
(b) “Resident estate” means an estate of
which the fiduciary is appointed by an Oregon court or the administration of
which is carried on in Oregon.
(c) “Resident funeral trust” means a
qualified funeral trust that, at the time of the initial funding of the trust:
(A) Is required to be established under
the laws of this state; or
(B) Is established by a contract, the
terms of which state that a service or merchandise is to be provided by a
funeral home or cemetery located in this state.
(d) “Resident trust” means a trust, other
than a qualified funeral trust, of which the fiduciary is a resident of Oregon
or the administration of which is carried on in Oregon. In the case of a
fiduciary that is a corporate fiduciary engaged in interstate trust
administration, the residence and place of administration of a trust both refer
to the place where the majority of fiduciary decisions are made in
administering the trust.
(2) The taxable income of a resident
estate, resident trust or resident funeral trust is its federal taxable income
modified by the addition or subtraction, as the case may be, of its share of
the fiduciary adjustment determined under ORS 316.287.
(3) The Department of Revenue shall adopt
rules defining “trust administration” for purposes of subsection (1)(d) of this
section that include within the definition activities related to fiduciary
decision making and that exclude from the definition activities related to
incidental execution of fiduciary decisions.
(4) The department shall adopt rules
providing for simplified reporting of resident funeral trusts having a single
trustee and of resident funeral trusts that are terminated during the tax year.
[1969 c.493 §§42, 43; 1997 c.100 §7; 1997 c.325 §42; 2003 c.50 §1]
316.285
[1953 c.304 §35; repealed by 1959 c.581 §7 (316.286 enacted in lieu of
316.285)]
316.286
[1959 c.581 §8 (enacted in lieu of 316.285); subsection (6) derived from 1959
c.581 §11; repealed by 1969 c.493 §99]
316.287
“Fiduciary adjustment” defined; shares proportioned; rules.
(1) The “fiduciary adjustment” is the net amount of the modifications to
federal taxable income described in this chapter (ORS 316.697 being applicable
if the estate or trust is a beneficiary of another estate or trust) that
relates to its items of income or deduction of an estate or trust.
(2) The respective shares of an estate or
trust and its beneficiaries (including, solely for the purpose of this
allocation, nonresident beneficiaries) in the fiduciary adjustment shall be in
proportion to their respective shares of federal distributable net income of
the estate or trust. If the estate or trust has no federal distributable net
income for the taxable year, the share of each beneficiary in the fiduciary
adjustment shall be in proportion to the share of the estate or trust income of
the beneficiary for such year, under state law or the terms of the instrument,
that is required to be distributed currently and any other amounts of such
income distributed in such year. Any balance of the fiduciary adjustment shall
be allocated to the estate or trust.
(3) The Department of Revenue may by rule
authorize the use of such other methods of determining to whom the items
comprising the fiduciary adjustment shall be attributed, as may be appropriate
and equitable, on such terms and conditions as the department may require. [1969
c.493 §44; 1975 c.705 §6; 2009 c.33 §21]
316.290
[1953 c.304 §36; repealed by 1959 c.581 §9 (316.291 enacted in lieu of
316.290)]
316.291
[1959 c.581 §10 (enacted in lieu of 316.290); subsection (4) derived from 1959
c.581 §11; repealed by 1969 c.493 §99]
316.292
Credit for taxes paid another state. (1) For
purposes of this section, an estate or trust is considered a resident of the
state which taxes the income of the estate or trust irrespective of whether the
income is derived from sources within that state.
(2) Notwithstanding the limitations
contained in ORS 316.082 and 316.131, if an estate or trust is a resident of
this state and also a resident of another state, the estate or trust shall be
allowed a credit against the taxes imposed under this chapter for income taxes
imposed by and paid to the other state, subject to the following conditions:
(a) Credit shall be allowed only for the
proportion of the taxes paid to the other state as the income taxable under
this chapter and also subject to tax in the other state bears to the entire
income upon which the taxes paid to the other state are imposed.
(b) The credit shall not exceed the
proportion of the tax payable under this chapter as the income subject to tax
in the other state and also taxable under this chapter bears to the entire
income taxable under this chapter. [1969 c.493 §45; 1985 c.802 §10; 1991 c.838 §7]
316.295
[1953 c.304 §37; 1965 c.202 §1; repealed by 1969 c.493 §99]
316.296
[1965 c.154 §2; repealed by 1969 c.493 §99]
316.297
[1963 c.343 §2; repealed by 1969 c.493 §99]
316.298
Accumulation distribution credit. (1) A
resident beneficiary of a trust whose adjusted gross income includes all or
part of an accumulation distribution by such trust, as defined in section 665
of the Internal Revenue Code, shall be allowed a credit against the tax
otherwise due under this chapter for all or a proportionate part of any tax,
paid by the trust under this chapter for any preceding taxable year, that would
not have been payable if the trust had in fact made distribution to its
beneficiaries at the times and in the amounts specified in section 666 of the
Internal Revenue Code.
(2) The credit under this section shall
not reduce the tax otherwise due from the beneficiary under this chapter to an
amount less than would have been due if the accumulation distribution or part
thereof were excluded from the adjusted gross income of the beneficiary. [1969
c.493 §46; 1997 c.839 §18; 1999 c.90 §14; 2001 c.660 §43]
316.299
[1965 c.178 §2; repealed by 1969 c.493 §99]
(Nonresident
Estates and Trusts)
316.302
“Nonresident estate or trust” defined. For purposes
of this chapter, a “nonresident estate or trust” means an estate or trust that
is not a resident. [1969 c.493 §47; 1997 c.325 §43]
316.305
[1953 c.304 §38; 1963 c.283 §2; 1963 c.627 §7 (referred and rejected); repealed
by 1969 c.493 §99]
316.306
[1955 c.608 §2; repealed by 1969 c.493 §99]
316.307
Income of nonresident estate or trust. For purposes
of ORS 316.302 to 316.317:
(1) Items of income, gain, loss and
deduction mean those derived from or connected with sources in this state.
(2) Items of income, gain, loss and
deduction entering into the definition of federal distributable net income
include such items from another estate or trust of which the first estate or
trust is a beneficiary.
(3) The source of items of income, gain,
loss or deduction shall be determined under regulations prescribed by the
Department of Revenue in accordance with the general rules in ORS 316.127 as if
the estate or trust were a nonresident individual.
(4) The income of a nonresident estate or
trust consists of:
(a) Its share of items of income, gain,
loss and deduction that enter into the federal definition of distributable net
income;
(b) Increased or reduced by the amount of
any items of income, gain, loss or deduction that are recognized for federal
income tax purposes but excluded from the federal definition of distributable
net income of the estate or trust;
(c) Less the amount of the deduction for
its federal exemption. [1969 c.493 §48; 1983 c.684 §22]
316.310
[1953 c.304 §39; 1957 c.18 §1; repealed by 1969 c.493 §99]
316.312
Determination of Oregon share of income. (1) The share
of a nonresident estate or trust of items of income, gain, loss and deduction
entering into the definition of distributable net income and the share for
purpose of ORS 316.127 of a nonresident beneficiary of any estate or trust in
estate or trust income, gain, loss and deduction shall be determined as
follows:
(a) To the amount of items of income,
gain, loss and deduction that enter into the definition of distributable net
income there shall be added or subtracted, as the case may be, the
modifications to federal taxable income described in this chapter to the extent
they relate to items of income, gain, loss and deduction that also enter into
the definition of distributable net income. No modification shall be made under
this section that has the effect of duplicating an item already reflected in
the definition of distributable net income.
(b) The amount determined under paragraph
(a) of this subsection shall be allocated among the estate or trust and its
beneficiaries (including, solely for the purpose of this allocation, resident beneficiaries)
in proportion to their respective shares of federal distributable net income.
The amounts so allocated have the same character as for federal income tax
purposes. If an item entering into the computation of such amounts is not
characterized for federal income tax purposes, it has the same character as if
realized directly from the source from which realized by the estate or trust,
or incurred in the same manner as incurred by the estate or trust.
(c) If the estate or trust has no federal
distributable net income for the taxable year, the share of each beneficiary in
the net amount determined under paragraph (a) of this subsection shall be in
proportion to the beneficiary’s share of the estate or trust income for such
year, under state law or the terms of the instrument, that is required to be
distributed currently and any other amounts of such income distributed in such
year. Any balance of such net amount shall be allocated to the estate or trust.
(2) The Department of Revenue may by
regulation establish such other method or methods of determining the respective
shares of the beneficiaries and of the estate or trust in its income derived
from sources in this state, and in the modifications related thereto, as may be
appropriate and equitable. [1969 c.493 §49; 1975 c.705 §7]
316.315
[1953 c.304 §10; 1955 c.285 §1; subsection (4) of 1955 Replacement Part derived
from 1955 c.285 §2; 1957 c.540 §1; 1959 c.593 §4 (referred and rejected); 1963
c.627 §8 (referred and rejected); 1967 c.127 §1; repealed by 1969 c.493 §99]
316.317
Credit to beneficiary for accumulation distribution.
A nonresident beneficiary of a trust whose adjusted gross income derived from
sources in this state includes all or part of an accumulation distribution by
such trust, as defined in section 665 of the Internal Revenue Code, shall be
allowed a credit against the tax otherwise due under this chapter, computed in
the same manner and subject to the same limitation as provided by ORS 316.298
with respect to a resident beneficiary. [1969 c.493 §50]
316.320
[1953 c.304 §41; 1957 c.73 §1; 1965 c.410 §5; repealed by 1969 c.493 §99]
316.325
[1953 c.304 §42; repealed by 1969 c.493 §99]
316.330
[1953 c.304 §43; 1955 c.580 §1; repealed by 1969 c.493 §99]
316.335
[1953 c.304 §44; 1957 s.s. c.15 §3; repealed by 1969 c.493 §99]
316.336
[1961 c.608 §2; repealed by 1969 c.493 §99]
316.337
[1957 c.16 §2; repealed by 1969 c.493 §99]
316.340
[1953 c.304 §45; 1953 c.552 §9; 1955 c.589 §1; repealed by 1969 c.493 §99]
316.342
[1969 c.493 §51; repealed by 1989 c.625 §27 (314.712 enacted in lieu of
316.342)]
316.345
[1953 c.304 §46; 1953 c.552 §10; 1959 c.593 §5 (referred and rejected); 1963
c.627 §9 (referred and rejected); 1965 c.337 §1; repealed by 1969 c.493 §99]
316.347
[1969 c.493 §52; repealed by 1989 c.625 §29 (314.714 enacted in lieu of
316.347)]
316.350
[1953 c.304 §47; repealed by 1969 c.493 §99]
316.352
[1969 c.493 §53; 1975 c.705 §8; repealed by 1989 c.625 §31 (316.124 enacted in
lieu of 316.352)]
316.353
[1957 s.s. c.15 §6; subsection (6) derived from 1957 s.s. c.15 §8; 1959 c.92 §1;
1963 c.627 §12 (referred and rejected); 1965 c.410 §6; repealed by 1969 c.493 §99]
316.355
[1953 c.304 §48; repealed by 1969 c.493 §99]
316.360
[1953 c.304 §49; repealed by 1969 c.493 §99]
RETURNS;
PAYMENTS; REFUNDS
316.362
Persons required to make returns. (1) An income
tax return with respect to the tax imposed by this chapter shall be made by the
following:
(a) Every resident individual:
(A) Who is required to file a federal
income tax return for the taxable year; or
(B) Who has gross income greater than the
sum of:
(i) The basic standard deduction allowed
under ORS 316.695 (1)(c)(B);
(ii) Any additional standard deduction
allowed to the taxpayer under ORS 316.695 (7); and
(iii) An amount equal to the income
equivalent of one personal exemption credit under ORS 316.085 (3)(b) if
unmarried, or equal to the income equivalent of two personal exemption credits
under ORS 316.085 (3)(b) if married.
(b) Every nonresident individual who has
federal gross income from sources in this state of more than the basic standard
deduction allowed under ORS 316.695 (1)(c)(B).
(c) Every resident estate or trust that is
required to file a federal income tax return.
(d) Every nonresident estate that has
federal gross income of $600 or more for the taxable year from sources within
this state.
(e) Every nonresident trust that for the
taxable year has from sources within this state any taxable income, or gross
income of $600 or more regardless of the amount of taxable income.
(2) Nothing contained in this section
shall preclude the Department of Revenue from requiring any individual, estate
or trust to file a return when, in the judgment of the department, a return
should be filed.
(3) For purposes of this section, the
income equivalent of a personal exemption credit under ORS 316.085 (3)(b) shall
be determined as follows:
(a) Divide the personal exemption credit
amount by the rate applicable to the lowest income bracket under ORS 316.037.
(b) If the resulting quotient is less than
the maximum amount of income subject to the rate used in paragraph (a) of this
subsection, the quotient is the income equivalent.
(c) If the resulting quotient is more than
the maximum amount of income subject to the rate used in paragraph (a) of this
subsection:
(A) Multiply the maximum amount of income
subject to the rate used in paragraph (a) of this subsection by the rate used
in paragraph (a) of this subsection.
(B) Determine the difference between the
product calculated under subparagraph (A) of this paragraph and the personal
exemption credit amount.
(C) Divide the difference determined in
subparagraph (B) of this paragraph by the rate applicable to the income bracket
that is the next succeeding the lowest income bracket under ORS 316.037.
(D) Add the quotient determined in
subparagraph (C) of this paragraph to the maximum amount of income subject to
the rate used in paragraph (a) of this subsection. The sum is the income
equivalent. [1969 c.493 §54; 1983 c.740 §90; 2001 c.77 §6; 2001 c.660 §15]
316.363
Returns; instructions. The instructions to the
individual state income tax return form required to be filed by this chapter
shall:
(1) Be written in simple words used in
their commonly understood senses that convey meanings clearly and directly;
(2) Be written in primarily simple, rather
than compound or complex, sentences that are as short as possible;
(3) Limit the use of definitions to
definitions of words that cannot be properly explained or qualified in the
text;
(4) Include an index at the beginning of
the instructions to provide a useful guide to the use of the form. The index
shall give a comprehensive listing of return form parts in a logical sequence,
and the index listings shall clearly state the contents of each section;
(5) Have the text of the instructions
printed in roman type at least as large as 10-point modern type, two points
leaded;
(6) Have margins that are adequate for
purposes of readability, and have a line length of the text not exceeding four
inches for a column;
(7) Have section headings printed in a
contrasting color, typeface or size; and
(8) Be printed so that the contrast and
legibility of the ink and paper used is substantially the equivalent of black
ink on white paper. [1977 c.736 §2]
316.364
Flesch Reading Ease Score form instructions. (1)
The instructions to an individual state income tax return form shall have a
total Flesch Reading Ease Score of 60 or higher.
(2) As used in this section:
(a) “Flesch Reading Ease Score” means
206.835 - (x + y) where x equals average sentence length multiplied by 1.015
and y equals average word length multiplied by 84.6.
(b) “Average sentence length” means the
total number of words in the instructions to the state income tax return form
divided by the total number of sentences in the instructions.
(c) “Average word length” means the total
number of syllables in the instructions to the state income tax return form
divided by the total number of words in the instructions. [1977 c.736 §3]
316.365
[1953 c.304 §50; 1953 c.552 §11; 1957 c.586 §15; 1959 c.593 §6 (referred and
rejected); 1961 c.411 §1; 1963 c.627 §13 (referred and rejected); repealed by
1969 c.493 §99]
316.367
Joint return by husband and wife. A husband and
wife may make a joint return with respect to the tax imposed by this chapter
even though one of the spouses has neither gross income nor deductions, except
that:
(1) No joint return shall be made under
this chapter if the spouses are not permitted to file a joint federal income
tax return;
(2) If the federal income tax liability of
either spouse is determined on a separate federal return, their income tax
liabilities under this chapter shall be determined on separate returns;
(3) If the federal income tax liabilities
of husband and wife are determined on a joint federal return, they shall file a
joint return under this chapter and their tax liabilities shall be joint and
several; and
(4) If neither spouse is required to file
a federal income tax return and either or both are required to file an income
tax return under this chapter, they may elect to file separate or joint returns
and pursuant to such election their liabilities shall be separate or joint and
several. [1969 c.493 §55; 1985 c.802 §9]
316.368
When joint return liability divided; showing of marital status and hardship;
rules. Notwithstanding ORS 316.367, upon
petition to the Director of the Department of Revenue by one spouse who has
filed a joint tax return, the Department of Revenue may terminate the joint and
several liability of each spouse and divide the liability equally between both
spouses for the tax, penalty and interest due for the tax year that is the
subject of the joint return. No petition shall be granted unless at the time of
the petition, the spouses are living apart and are legally separated or
divorced, and the petitioner satisfies the department that the petitioner is
unable to pay the entire liability due to financial hardship. The department
shall adopt rules establishing the manner in which a petitioner shall show
financial hardship. [1993 c.593 §8]
316.369
Circumstances where one spouse relieved of joint return liability; rules.
If a joint return has been made under this chapter for a tax year, a spouse
shall be relieved of liability for tax, including interest, penalties and other
amounts, for the tax year:
(1) If the Internal Revenue Service has
made a determination that relieved the spouse of liability for federal taxes
for the same tax year under Internal Revenue Code provisions that provide for
spouse relief from liability; or
(2) If the Internal Revenue Service has
not made a determination that relieved the spouse of liability for the tax
year, but the spouse qualifies to be relieved of state tax liability under
rules adopted by the Department of Revenue. In adopting rules under this
subsection, the department shall consider the provisions of the Internal
Revenue Code and regulations issued thereunder that provide for spouse relief
from liability for federal taxes. [1983 c.627 §§2,3; 1985 c.802 §9a; 1999 c.90 §15;
2001 c.660 §7]
316.370
[1953 c.304 §51; repealed by 1969 c.493 §99]
316.371
[1989 c.625 §12; repealed by 2001 c.660 §9]
316.372
Minor to file return; unpaid tax assessable against parent; when parent may
file for minor. (1) Except as provided in
subsection (2) of this section, a minor shall file a return and include therein
all items of income, including income attributable to personal services, and
such income shall not be included on the return of the parent. All expenditures
by the parent or the minor attributable to such income are considered to have
been paid or incurred by the minor. However, any tax assessed against the
minor, to the extent, attributable to income from personal services, if not
paid by the minor, for all purposes shall be considered as having also been
properly assessed against the parent. For the purposes of this section the term
“parent” includes an individual who is entitled to the services of a minor by
reason of having parental rights and duties in respect of such minor.
(2) If a parent is eligible to elect and
elects to include the interest and dividend income of a child on the parent’s
federal income tax return under section 1(g)(7)(B) of the Internal Revenue
Code, the parent shall be considered to have elected to include the interest
and dividend income of the child on the return filed by the parent for the same
taxable period for purposes of this chapter. The child need not in such case
file a return for purposes of this chapter for the taxable period to which the
election applies. [1969 c.493 §56; 1989 c.625 §13a; 1991 c.457 §7a]
316.375
[1953 c.304 §52; 1957 c.16 §3; repealed by 1969 c.493 §99]
316.377
Individual under disability. An income tax
return for an individual who is unable to make a return by reason of minority
or other disability shall be made and filed by a duly authorized agent of the
individual, guardian, conservator, fiduciary or other person charged with the
care of the person or property of the individual other than a receiver in
possession of only a part of the individual’s property. [1969 c.493 §57; 1985
c.761 §13]
316.380
[1953 c.304 §53; repealed by 1969 c.493 §99]
316.382
Returns by fiduciaries. (1) An income tax return, in the
name of the decedent, for any deceased individual shall be made and filed by a
personal representative or other person charged with the care of the property,
and this duty extends to any unfiled return prior to decedent’s death. The tax
shall be levied upon and collected from the estate. A final return of a
decedent shall be due when it would have been due if the decedent had not died.
(2) The income tax return of an estate or
trust shall be made and filed by the fiduciary thereof, whether the income is
taxable to the estate or trust or to the beneficiaries thereof. If two or more
fiduciaries are acting jointly, the return may be made by any one of them. [1969
c.493 §58; 1975 c.705 §9]
316.385
[1963 c.435 §2; repealed by 1969 c.493 §99]
316.387
Election for final tax determination by personal representative; period for
assessment of deficiency; discharge of personal representative from personal
liability for tax. (1) In the case of any tax for
which a return is required under this chapter from a decedent or a decedent’s
estate during the period of administration, the Department of Revenue may give
notice of deficiency as described in ORS 305.265 within 18 months after a
written election for a final tax determination is made by the personal
representative, administrator, trustee or other fiduciary representing the
estate of the decedent. This election must be filed after the return is made
and filed in the form and manner as may be prescribed by the department by
rule.
(2) Notwithstanding the provisions of
subsection (1) of this section, if the department finds that gross income equal
to 25 percent or more of the gross income reported has been omitted from the
taxpayer’s return, notice of the deficiency may be given at any time within
five years after the return was filed.
(3) The limitations to the giving of a
notice of deficiency provided in this section shall not apply to a deficiency
resulting from false or fraudulent returns, or in cases where no return has
been filed. If the Commissioner of Internal Revenue or other authorized official
of the federal government makes a correction resulting in a change of the
decedent’s or the estate of the decedent’s tax for state income tax purposes,
then notice of a deficiency under any law imposing tax upon or measured by
income for the corresponding tax year may be mailed within one year after the
department is notified by the fiduciary or the commissioner of such federal
correction, or within the applicable 18-month or five-year period prescribed in
subsections (1) and (2) of this section, respectively, whichever period later
expires.
(4) After filing the decedent’s return,
the personal representative, administrator, trustee or other fiduciary may
apply in writing for discharge from personal liability for tax on the decedent’s
income. After paying any tax for which the personal representative,
administrator, trustee or other fiduciary is subsequently notified, or after
expiration of nine months since receipt of the application and during which no
notification of tax liability is made, the discharge becomes effective. A
discharge under this subsection does not discharge the personal representative,
administrator, trustee or other fiduciary from liability to the extent that
assets of the decedent’s estate are still in the possession or control of the
personal representative, administrator, trustee or other fiduciary. The failure
of a personal representative to make application and otherwise proceed under
this subsection shall not affect the protection available to the personal
representative under ORS 116.113 (2), 116.123 and 116.213.
(5) For the purpose of facilitating the
settlement and distribution of estates held by fiduciaries, the department, on
behalf of the state, may agree upon the amount of taxes at any time due or to
become due from such fiduciaries under this chapter or transferees of an estate
as provided in ORS 314.310 with respect to a tax return or returns of or for a
decedent individual or an estate or trust, and payment in accordance with such
agreement shall be in full satisfaction of the taxes to which the agreement
relates. [1969 c.493 §59; 1971 c.333 §3; 1995 c.453 §5]
316.390
[1963 c.435 §3; repealed by 1969 c.493 §99]
316.392
Notice of qualification of receiver and others.
Every receiver, trustee in bankruptcy, assignee for benefit of creditors or
other like fiduciary, shall give notice of qualification as such to the
Department of Revenue, as may be required by regulation. [1969 c.493 §60]
316.397
[1969 c.493 §61; 1971 c.332 §1; 1975 c.672 §7; 1978 c.9 §3; 1981 c.801 §5;
repealed by 1983 c.684 §24]
316.402
[1969 c.493 §62; repealed by 1971 c.332 §2]
316.405
[1975 c.410 §2; 1967 c.110 §1; repealed by 1969 c.493 §99]
316.406
[1959 c.591 §21; repealed by 1965 c.410 §7]
316.407
[1969 c.493 §63; 1971 c.354 §6; 1975 c.593 §18; 1979 c.470 §1; 1980 c.7 §23;
repealed by 1989 c.625 §60]
316.408
[1959 c.591 §2; 1963 c.388 §3; 1963 c.627 §14 (referred and rejected); repealed
by 1965 c.410 §7]
316.410
[1959 c.591 §3; repealed by 1965 c.410 §7]
316.411
[1963 c.388 §§2,4; repealed by 1965 c.410 §7]
316.412
[1959 c.591 §4; repealed by 1963 c.627 §23 (referred and rejected); repealed by
1965 c.410 §7]
316.414
[1959 c.591 §5; repealed by 1963 c.627 §23 (referred and rejected); repealed by
1965 c.410 §7]
316.415
[1965 c.410 §3; repealed by 1969 c.493 §99]
316.417
Date return considered made or advance payment made.
(1) A return filed before the last day prescribed by law for the filing thereof
is considered as filed on the last day. An advance payment of any portion of the
tax made at the time the return was filed is considered as made on the last day
prescribed by law for the payment of the tax or, if the taxpayer elected to pay
the tax in installments, on the last day prescribed for the payment of the
first installment. The last day prescribed by law for filing the return or
paying the tax shall be determined without regard to any extension of time
granted the taxpayer by the Department of Revenue.
(2) ORS 305.820 applies to returns filed
by mail or private express carrier and to due dates that fall on a Saturday,
Sunday or legal holiday. [1969 c.493 §64; 1993 c.44 §3]
316.420
[1959 c.591 §6; repealed by 1963 c.627 §23 (referred and rejected); repealed by
1965 c.410 §7]
316.422
[1969 c.493 §65; repealed by 1971 c.354 §7]
316.425
[1965 c.410 §4; repealed by 1969 c.493 §99]
316.426
[1959 c.591 §7; repealed by 1963 c.627 §23 (referred and rejected); repealed by
1965 c.410 §7]
316.430
[1959 c.591 §8; repealed by 1963 c.627 §23 (referred and rejected); repealed by
1965 c.410 §7]
316.432
[1959 c.591 §9; repealed by 1963 c.627 §23 (referred and rejected); repealed by
1965 c.410 §7]
316.434
[1959 c.591 §10; repealed by 1963 c.627 §23 (referred and rejected); repealed
by 1965 c.410 §7]
316.436
[1959 c.591 §11; repealed by 1963 c.627 §23 (referred and rejected); repealed
by 1965 c.410 §7]
316.438
[1959 c.591 §12; repealed by 1963 c.627 §23 (referred and rejected); repealed
by 1965 c.410 §7]
316.440
[1959 c.591 §13; repealed by 1965 c.410 §7]
316.442
[1959 c.591 §14; repealed by 1965 c.410 §7]
316.444
[1959 c.591 §15; repealed by 1965 c.410 §7]
316.446
[1959 c.591 §16; repealed by 1965 c.410 §7]
316.448
[1959 c.591 §17; repealed by 1965 c.410 §7]
316.450
[1959 c.591 §18; repealed by 1965 c.410 §7]
316.454
[1965 c.248 §3; repealed by 1969 c.493 §99]
316.455
[1953 c.304 §54; 1953 c.552 §12; 1955 c.596 §2; 1957 c.586 §2; 1957 s.s. c.15 §4;
1963 c.486 §1; 1963 c.627 §15 (referred and rejected); 1965 c.248 §1; repealed
by 1969 c.493 §99]
316.457
Department may require copy of federal return.
If directed to do so by the Department of Revenue, through regulations or
instructions upon the state income tax return form, every taxpayer required by
this chapter to file an income tax return with the department shall also file
with such return a true copy of the federal tax return filed by the taxpayer
pursuant to the requirements of the Internal Revenue Code for the same taxable
year. The department may, in its discretion, promulgate regulations or
instructions that permit taxpayers to submit specified excerpts from federal
returns in lieu of submitting copies of the entire federal return. The federal
return or any part thereof required to be filed with the state income tax
return is incorporated in and shall be a part of the state income tax return. [1969
c.493 §66; 1977 c.872 §6]
316.462
Change of election. Any election expressly
authorized by this chapter may be changed on such terms and conditions as the
Department of Revenue may prescribe by regulation. [1969 c.493 §67]
316.467
[1969 c.493 §68; 1985 c.602 §14; renumbered 314.724 in 1989]
316.472
Tax treatment of common trust fund; information return required.
(1) The tax treatment of common trust funds and participants therein, under
this chapter, is governed by the provisions of the Internal Revenue Code.
(2) Every financial institution or trust
company maintaining a common trust fund shall make a return to the Department
of Revenue for each tax year, stating specifically, with respect to such fund,
the items of gross income and deductions, and shall include in the return
information sufficient to identify the trusts and estates entitled to share in
the net income of the common trust fund and the amount of the proportionate
share of each such participant. The return shall be made at such time as is
designated by the department. [1969 c.493 §69; 1997 c.631 §456]
316.475
[Formerly 316.080; 1961 c.218 §1; repealed by 1969 c.493 §99]
316.480
[1967 c.592 §7; 1969 c.340 §2; repealed by 1969 c.493 §99; see 316.097]
316.485
[1981 c.411 §1; 1989 c.987 §18; repealed by 1995 c.79 §166]
316.487
[1987 c.902 §7; repealed by 1993 c.797 §33]
316.490
Refund as contribution to Alzheimer’s Disease Research Fund.
(1) Individual taxpayers who file an Oregon income tax return for purposes of
this chapter and who will receive a tax refund from the Department of Revenue
may designate that a contribution be made to the Alzheimer’s Disease Research
Fund as provided in ORS 305.690 to 305.753.
(2) A designation under subsection (1) of
this section shall be made with respect to any taxable year on the returns for
that taxable year, and once made shall be irrevocable. [1987 c.902 §2; 1989
c.987 §25; 2007 c.822 §16]
316.491
Refund as contribution to Oregon Military Emergency Financial Assistance
Program. (1) Personal income taxpayers who file
an Oregon income tax return and who will receive a tax refund from the
Department of Revenue may designate that a contribution of all or a portion of
the refund be made to the Oregon Military Emergency Financial Assistance
Program by marking the appropriate box printed on the return as provided in ORS
305.690 to 305.753.
(2) Moneys contributed to the Oregon
Military Emergency Financial Assistance Program through the checkoff program
described in subsection (1) of this section shall be deposited in the Oregon
Military Emergency Financial Assistance Fund. [2005 c.836 §11; 2007 c.822 §17]
Note:
316.491 was enacted into law by the Legislative Assembly but was not added to
or made a part of ORS chapter 316 or any series therein by legislative action.
See Preface to Oregon Revised Statutes for further explanation.
316.493
Refund as contribution for prevention of child abuse and neglect.
(1) Recognizing that children are Oregon’s most valuable resource and that
child abuse and neglect is a threat to the physical, mental and emotional
health of children; and further recognizing that the incidence of validated
cases of reported child abuse and neglect has been increasing at an alarming
rate in Oregon and represents an enormous threat to the welfare of our
community, the Legislative Assembly hereby provides an additional opportunity
to taxpayers to assist in child abuse and neglect prevention by means of an
income tax checkoff.
(2) Any individual taxpayer who files an
Oregon income tax return and who will receive a tax refund from the Department
of Revenue may designate that a contribution be made to the holder of the
subaccount established pursuant to section 36 (2), chapter 1084, Oregon Laws
1999, or a successor subaccount, account or fund by marking the appropriate box
printed on the return as provided in ORS 305.690 to 305.753.
(3) The Department of Revenue shall
transfer to the subaccount established pursuant to section 36 (2), chapter
1084, Oregon Laws 1999, or a successor subaccount, account or fund an amount as
credited to the subaccount or its successor. [1987 c.771 §2; 1989 c.987 §19;
1999 c.1084 §40; 2007 c.822 §18]
316.495
[1989 c.987 §32; repealed by 1995 c.79 §166]
DISTRIBUTION
OF REVENUE
316.502
Distribution of revenue to General Fund; working balance; refundable credit
payments. (1) The net revenue from the tax
imposed by this chapter, after deducting refunds, shall be paid over to the
State Treasurer and held in the General Fund as miscellaneous receipts
available generally to meet any expense or obligation of the State of Oregon
lawfully incurred.
(2) A working balance of unreceipted
revenue from the tax imposed by this chapter may be retained for the payment of
refunds, but such working balance shall not at the close of any fiscal year
exceed the sum of $1 million.
(3) Moneys are continuously appropriated
to the Department of Revenue to make:
(a) The refunds authorized under
subsection (2) of this section; and
(b) The refund payments in excess of tax
liability authorized under ORS 315.262 and 315.266 and section 17, chapter 906,
Oregon Laws 2007. [1969 c.493 §70; 1977 c.761 §2; 2003 c.473 §12; 2005 c.826 §§4,4a;
2005 c.832 §§55,60; 2007 c.843 §§84,85,86,87; 2007 c.868 §§6,6a,7,7a; 2007
c.906 §§19,19a,20,20a; 2011 c.83 §17]
316.505
[1953 c.304 §55; 1953 c.552 §13; 1955 c.596 §3; subsection (3) derived from
1955 c.596 §4; 1957 c.586 §3; 1963 c.627 §16 (referred and rejected); repealed
by 1969 c.493 §99]
316.510
[1953 c.304 §56; 1957 c.586 §4; repealed by 1969 c.493 §99]
316.512
[1965 c.592 §2; repealed by 1969 c.493 §99]
316.513
[1965 c.592 §3; repealed by 1969 c.493 §99]
316.515
[1953 c.304 §57; repealed by 1969 c.493 §99]
316.520
[1953 c.304 §58; repealed by 1957 c.632 §1 (314.355 enacted in lieu of
316.520)]
316.525
[1953 c.304 §59; repealed by 1969 c.493 §99]
316.530
[1953 c.304 §60; repealed by 1969 c.493 §99]
316.535
[1953 c.304 §61; repealed by 1957 c.632 §1 (314.360 enacted in lieu of
316.535)]
316.540
[1953 c.304 §62; repealed by 1969 c.493 §99]
316.545
[1953 c.304 §63; repealed by 1957 c.632 §1 (314.385 enacted in lieu of 316.545
and 317.355)]
316.550
[1953 c.304 §64; repealed by 1957 c.632 §1 (314.365 enacted in lieu of 316.550
and 317.365)]
316.555
[1953 c.304 §65; repealed by 1957 c.632 §1 (314.370 enacted in lieu of
316.555)]
PAYMENT
OF ESTIMATED TAXES
316.557
Definition of “estimated tax.” As used in
ORS 316.557 to 316.589, “estimated tax” means the amount of income tax imposed
under this chapter for the taxable year, as estimated by the individual, minus
the sum of any credits as estimated by the individual against tax provided by
this chapter. [1980 c.7 §4; 1985 c.603 §4; 1997 c.839 §21; 1999 c.90 §16; 2001
c.660 §44]
316.559
Application of ORS 316.557 to 316.589 to estates and trusts.
ORS 316.557 to 316.589 do not apply to an estate or trust. [1980 c.7 §9]
316.560
[1953 c.304 §66; repealed by 1957 c.632 §1 (314.295 enacted in lieu of 316.560
and 317.375)]
316.563
When declaration of estimated tax required; exception; effect of short tax
year; content; amendment; rules. (1) Except as
provided in subsection (2) of this section, every individual shall declare an
estimated tax for the taxable year if:
(a) The gross income for the taxable year
can be reasonably expected to include more than $1,000 from sources other than
wages as defined in ORS 316.162 (2); or
(b) The gross income for the taxable year
can be reasonably expected to exceed:
(A) $20,000 in the case of:
(i) A single individual, including a head
of household as defined in section 2(b) of the Internal Revenue Code, or a
surviving spouse as defined in section 2(a) of the Internal Revenue Code; or
(ii) A married individual entitled under
ORS 316.567 to file a joint declaration with a spouse, but only if the spouse
has not received wages, as defined in ORS 316.162 (2) for the taxable year; or
(B) $10,000 in the case of a married
individual entitled under ORS 316.567 to file a joint declaration with a
spouse, but only if each spouse has received wages as defined in ORS 316.162
(2) for the taxable year; or
(C) $5,000 in the case of a married
individual not entitled under ORS 316.567 to file a joint declaration with a
spouse.
(2) No declaration is required if the
estimated tax as defined in ORS 316.557 is less than the amount established by
rule of the Department of Revenue. The department shall consider the provisions
of section 6654 of the Internal Revenue Code in determining the amount.
(3) An individual with a taxable year of
less than 12 months shall make a declaration in accordance with rules adopted
by the Department of Revenue.
(4) An individual may amend the
declaration filed during the taxable year under rules prescribed by the
department.
(5) The declaration shall contain
information required by the department by rule. [1980 c.7 §§2,2a,5,8; 1981
c.678 §1a; 1987 c.293 §21; 1997 c.839 §22; 1999 c.90 §17; 2001 c.660 §45]
316.565
[1953 c.304 §67; repealed by 1957 c.632 §1 (314.380 enacted in lieu of 316.565
and 317.380)]
316.567
Joint declaration of husband and wife; liability; effect on nonjoint returns;
rules. (1) Except as provided in subsection
(2) of this section, a husband and wife may make a single declaration jointly
under ORS 316.557 to 316.589. The liability of the husband and wife making such
a declaration shall be joint and several.
(2) A husband and wife may not make a
joint declaration:
(a) If either the husband or the wife is a
nonresident alien;
(b) If they are separated under a judgment
of divorce or of separate maintenance; or
(c) If they have different taxable years.
(3) If a husband and wife make a joint
declaration but not a joint return for the taxable year, the husband and wife
may, in such manner as they may agree, and after giving notice of the agreement
to the Department of Revenue:
(a) Treat the estimated tax for the year
as the estimated tax of either the husband or of the wife; or
(b) Divide the estimated tax between them.
(4) If a husband and wife fail to agree,
or fail to notify the department of the manner in which they agree, to the
treatment of estimated tax for a taxable year for which they make a joint
declaration but not a joint return, the payments shall be allocated between
them according to rules adopted by the department. Notwithstanding ORS 314.835,
314.840 or 314.991, the department may disclose to either the husband or the
wife the information upon which an allocation of estimated tax was made under
this section. [1980 c.7 §3; 1985 c.603 §5; 2003 c.576 §432]
316.569
When declaration required of nonresident. No
declaration shall be required of a nonresident individual under ORS 316.557 to
316.589 unless:
(1) Withholding under this chapter is made
applicable to the wages, as defined in ORS 316.162, of the nonresident
individual; or
(2) The nonresident individual has income,
other than compensation for personal services subject to deduction and
withholding under ORS 316.162, which is effectively connected with the conduct
of a trade or business within this state. [1980 c.7 §10; 1985 c.603 §6]
316.570
[1953 c.304 §68; 1957 c.586 §16; 1959 c.632 §1; 1961 c.504 §2; 1969 c.166 §6;
repealed by 1969 c.493 §99]
316.573
When individual not required to file declaration.
(1) An individual need not file a declaration of estimated tax required by ORS
316.563 (1), if:
(a) The estimated gross income of the
individual from farming or fishing, including oyster farming, for the taxable
year is at least two-thirds of the total estimated gross income from all
sources for the taxable year; or
(b) The gross income of the individual
from farming or fishing, including oyster farming, shown on the return of the
individual in the preceding taxable year is at least two-thirds of the total
gross income from all sources shown on such return.
(2) For purposes of computing gross income
under this section, an individual who is a stockholder of one or more electing
small business corporations for federal income tax purposes shall consider his
or her share of the gross income of the electing small business corporation as
his or her individual income. The electing small business corporation gross
income shall be classed as farming, fishing, nonfarming or nonfishing as the
case may be in carrying out the provisions of this section. [1980 c.7 §12]
316.575
[1953 c.304 §69; 1955 c.595 §1; repealed by 1957 c.586 §19]
316.577
Date of filing declaration. Except as provided in ORS
316.573, declarations of estimated tax required by ORS 316.563 (1) from
individuals who are neither farmers nor fishermen for the purpose of that
section shall be filed on or before April 15 of the taxable year, except that
if the requirements of ORS 316.563 (1) are first met:
(1) After April 1 and before June 2 of the
taxable year, the declaration shall be filed on or before June 15 of the
taxable year;
(2) After June 1 and before September 2 of
the taxable year, the declaration shall be filed on or before September 15 of
the taxable year; or
(3) After September 1 of the taxable year,
the declaration shall be filed on or before January 15 of the succeeding year. [1980
c.7 §11; 1981 c.678 §2; 1983 c.162 §64; 2003 c.46 §41]
316.579
Amount of estimated tax to be paid with declaration; installment schedule; prepayment
of installment. (1) An individual required to
make a declaration of estimated tax under ORS 316.563 shall pay the estimated
tax as provided in subsections (2) to (6) of this section.
(2) If the declaration is filed on or
before April 15 of the taxable year, the estimated tax shall be paid in four
equal installments. The first installment shall be paid at the time of the
filing of the declaration, the second and third on June 15 and September 15 of
the taxable year, and the fourth on January 15 of the succeeding year.
(3) If the declaration is filed after
April 15 and not after June 15 of the taxable year, and is not required by ORS
316.577 to be filed on or before April 15 of the taxable year, the estimated
tax shall be paid in three equal installments. The first installment shall be
paid at the time of the filing of the declaration, the second on September 15
of the calendar year, and the third on January 15 of the succeeding taxable
year.
(4) If the declaration is filed after June
15 and not after September 15 of the taxable year, and is not required by ORS
316.577 to be filed on or before June 15 of the taxable year, the estimated tax
shall be paid in two equal installments. The first installment shall be paid at
the time of filing of the declaration, and the second on January 15 of the
succeeding taxable year.
(5) If the declaration is filed after
September 15 of the taxable year and is not required by ORS 316.577 to be filed
on or before September 15 of the taxable year, the estimated tax shall be paid
in full at the time of filing of the declaration.
(6) If the declaration is filed after the
time prescribed in ORS 316.577, subsections (3) to (5) of this section shall
not apply. Instead, there shall be paid at the time of filing all installments
of estimated tax that would have been payable on or before such time if the declaration
had been filed within the time prescribed in ORS 316.577, and the remaining
installments shall be paid at the times at which, and in the amounts in which,
they would have been payable if the declaration had been so filed.
(7) If a taxpayer does not file a
declaration but files a return on or before January 31 of the succeeding year
and pays in full the amount stated as due on the return:
(a) If the declaration is not required to
be filed during the taxable year, but is required to be filed on or before
January 15, the return shall be considered as the declaration; and
(b) If the tax shown on the return, as
reduced by the sum of the credits against the tax allowed for purposes of this
chapter, is greater than the estimated tax shown in an earlier declaration, or
in the last amendment thereof, the return shall be considered as the amendment
of the declaration permitted by ORS 316.563 (4) to be filed on or before
January 15.
(8) In the application of this section to
a taxable year beginning on any date other than January 1, there shall be
substituted for the 15th or last day of the month specified in this section,
the 15th or last day of the corresponding month.
(9) An individual may pay an installment
of the estimated tax before the date prescribed for its payment.
(10) Any payment of estimated tax received
by the Department of Revenue shall first be applied to underpayments of
estimated tax due for any prior installment due for the taxable year. Any
excess amount shall be applied to the installment that next becomes due after
the payment was received. [1980 c.7 §§16,20; 1981 c.678 §3; 1985 c.603 §7; 1987
c.293 §22; 1993 c.730 §43; 2003 c.46 §42]
316.580
[1953 c.304 §70; 1955 c.595 §2; 1957 c.586 §17; renumbered 316.751]
316.583
Effect of payment of estimated tax or installment; credit for overpayment of
prior year taxes; rules. (1) Payment of the estimated
income tax or any installment shall be considered payment on account of the
income taxes imposed by this chapter for the taxable year.
(2) If there is an overpayment of income
tax for a taxable year, the taxpayer may elect on a timely filed return for
that taxable year (determined with regard to any extension of time for filing)
to have the overpayment credited against an installment of estimated tax for
the subsequent taxable year. The amount credited shall be deemed paid as
estimated tax on the first date prescribed for payment of the estimated tax.
(3) If there is an overpayment of income
taxes for a taxable year, and the taxpayer elects on a return (including an
amended return) for that taxable year filed after the due date (determined with
regard to any extension of time for filing) to have the overpayment credited
against an installment of estimated tax for a subsequent taxable year, the
overpayment shall be credited against that installment of estimated tax. The
amount credited shall be deemed paid as estimated tax on the date the return
was filed.
(4) The Department of Revenue may adopt
rules which enable the taxpayer or department to credit against the estimated
income tax the amount the taxpayer or the department determines to be an
overpayment of the income tax for a preceding taxable year. [1980 c.7 §§19,21;
1993 c.726 §35]
316.585
[1953 c.304 §71; 1955 c.595 §3; 1957 c.586 §18; renumbered 316.770]
316.587
Effect of underpayment of estimated tax; computation of underpayment; interest;
when not imposed. (1) Except as provided in
subsection (5) of this section, if an individual makes an underpayment of
estimated tax, interest shall accrue at the rate established under ORS 305.220
for each month, or fraction thereof, on the amount underpaid for the period the
estimated tax or any installment remains unpaid. The penalty provisions
contained in ORS chapter 314 for underpayment of tax shall not apply to
underpayments of estimated tax under ORS 316.557 to 316.589.
(2) For purposes of subsection (1) of this
section, the amount of underpayment shall be the excess of the required
installment over the amount (if any) of the installment paid on or before the
due date for the installment.
(3) The period of underpayment shall run
from the date the installment was due to the earlier of the following dates:
(a) The 15th day of the fourth month
following the close of the taxable year; or
(b) With respect to any portion of the
underpayment, the date on which the portion is paid.
(4) For purposes of subsection (3)(b) of
this section, a payment of estimated tax shall be credited against unpaid
required installments in the order in which such installments are required to
be paid.
(5)(a) Interest accruing under subsection
(1) of this section shall not be imposed if the individual was a resident of
this state throughout the preceding taxable year and had no tax liability for
that year, and the preceding taxable year was a taxable year of 12 months.
(b) Interest accruing under subsection (1)
of this section shall not be imposed with respect to any underpayment of
estimated tax to the extent that the Department of Revenue determines that by
reason of casualty, disaster or other unusual circumstances the imposition of
interest would be against equity and good conscience.
(c) Interest accruing under subsection (1)
of this section shall not be imposed with respect to any underpayment of
estimated tax if the department determines that:
(A) In the tax year the estimated tax
payment was required to be made or in the tax year preceding such tax year, the
taxpayer (i) retired after having attained age 62 or (ii) became disabled; and
(B) The underpayment was due to reasonable
cause and not to willful neglect.
(d) Interest accruing under subsection (1)
of this section shall not be imposed with respect to any underpayment of
estimated tax attributable to the pro rata share of a shareholder of the income
of an S corporation if:
(A) The income is taxable income for an
initial year for which S corporation status is elected for the corporation; and
(B) The shareholder is a nonresident or
for the preceding taxable year was a part-year resident for Oregon tax purposes.
(6) For purposes of this section, the
estimated tax shall be computed without any reduction for the amount of credit
estimated to be allowed to the individual for the taxable year under ORS
316.187. The amount of the credit allowed under ORS 316.187 for the taxable
year shall be considered a payment of estimated tax. An equal part of the
credit shall be considered paid on each installment date for the taxable year,
unless the taxpayer establishes the date on which all amounts were actually
withheld, in which case the amount so withheld shall be considered payment of
estimated tax on the dates on which the amounts were actually withheld.
(7) For purposes of subsections (5) and
(8) of this section, the term “tax” means the tax imposed by this chapter minus
any credits against tax allowed for purposes of this chapter, other than the
credit against tax provided by ORS 316.187.
(8) For purposes of subsections (2) and
(4) of this section, the term “required installment” means the amount of the
installment that would be due if the estimated tax were equal to the lesser of:
(a) Ninety percent of the tax shown on the
return for the taxable year (or, if no return is filed, 90 percent of the tax
for such year);
(b) If the preceding taxable year was a
taxable year of 12 months, the percentage of the tax shown on the return filed
by the individual for the preceding taxable year that is established by the
Department of Revenue by rule; or
(c) Ninety percent of the tax for the
taxable year computed by placing on an annualized basis the taxable income for
the months in the taxable year ending before the month in which the installment
is required to be paid.
(9) For purposes of subsection (8) of this
section:
(a) If an amended return is filed on or
before the return due date (determined with regard to any extension of time
granted to the taxpayer), then the term “return” means the amended return.
(b) If during initial processing of the
return the department adjusts the amount of tax due, then the term “tax shown
on the return” means the tax as adjusted by the department. This paragraph
shall not apply if it is ultimately determined that the adjustment was
improper.
(c) The department shall consider the
provisions of section 6654 of the Internal Revenue Code. [1980 c.7 §22; 1982
s.s.1 c.16 §21; 1985 c.603 §8; 1987 c.293 §22a; 1989 c.625 §13b; 1991 c.457 §7h;
1993 c.726 §35a; 1995 c.556 §5; 1999 c.90 §18; 2001 c.660 §4]
316.588
When interest on underpayment not imposed. (1)
Interest accruing under ORS 316.587 shall not be imposed for any taxable year
if the tax shown on the return for the taxable year (or, if no return is filed,
the tax), minus the sum of any credits allowable for purposes of this chapter,
including the credit allowable under ORS 316.187, is less than the amount
established by rule adopted under ORS 316.563 (2).
(2) For purposes of this section:
(a) If an amended return is filed on or
before the return due date (determined with regard to any extension of time
granted to the taxpayer), then the term “return” means the amended return.
(b) If during initial processing of the
return the Department of Revenue adjusts the amount of tax due, then the term “tax
shown on the return” means the tax as adjusted by the department. This
paragraph shall not apply if it is ultimately determined that the adjustment
was improper. [1987 c.293 §22c; 1993 c.726 §35b; 1999 c.90 §19; 2001 c.660 §5]
316.589
Application to short tax years and tax years beginning on other than January 1.
(1) The application of ORS 316.557 to 316.589 to taxable years of less than 12
months shall be in accordance with rules adopted by the Department of Revenue.
(2) In the application of ORS 316.557 to
316.589 to a taxable year beginning on any date other than January 1 there
shall be substituted, for the months specified in ORS 316.557 to 316.589, the
months which correspond thereto. [1980 c.7 §§14,15; 1985 c.603 §9]
316.590
[1953 c.304 §72; repealed by 1969 c.493 §99]
316.605
[1953 c.304 §73; 1955 c.590 §1; repealed by 1957 c.632 §1 (314.405 enacted in
lieu of 316.605 and 317.405)]
316.610
[1953 c.304 §74; 1953 c.552 §14; 1957 c.17 §1; repealed by 1957 c.632 §1
(314.410 enacted in lieu of 316.610 and 317.410)]
316.615
[1953 c.304 §75; 1953 c.552 §15; 1955 c.583 §1; 1957 c.23 §1; repealed by 1957
c.632 §1 (314.415 enacted in lieu of 316.615 and 317.415)]
316.620
[1953 c.304 §76; 1955 c.355 §1; repealed by 1957 c.632 §1 (314.420 enacted in
lieu of 316.620, 317.370 and 317.420)]
316.625
[1953 c.304 §77; repealed by 1957 c.632 §1 (314.425 enacted in lieu of 316.625
and 317.425)]
316.630
[1953 c.304 §78; repealed by 1957 c.632 §1 (314.430 enacted in lieu of 316.630
and 317.430)]
316.635
[1953 c.304 §79; repealed by 1957 c.632 §1 (314.435 enacted in lieu of 316.635
and 317.435)]
316.640
[1953 c.304 §80; repealed by 1957 c.632 §1 (314.440 enacted in lieu of 316.640,
317.440 and 317.445)]
316.645
[1953 c.304 §81; 1961 c.504 §3; repealed by 1969 c.166 §8 and 1969 c.493 §99]
316.650
[1953 c.304 §82; 1953 c.552 §16; repealed by 1957 c.632 §1 (314.445 enacted in
lieu of 316.650 and 317.455)]
316.655
[1953 c.304 §83; 1953 c.552 §17; repealed by 1957 c.632 §1 (subsections (1) and
(2) of 314.450 enacted in lieu of 316.655 and 317.460)]
316.660
[1953 c.304 §84; repealed by 1957 c.632 §1 (314.455 enacted in lieu of 316.660
and 317.465)]
316.665
[1953 c.304 §85; 1953 c.552 §18; 1955 c.588 §1; repealed by 1957 c.632 §1
(314.460 enacted in lieu of 316.665 and 317.470)]
316.670
[1953 c.304 §86; repealed by 1957 c.632 §1 (314.465 enacted in lieu of 316.670
and 317.475)]
316.675
[1953 c.304 §87; 1953 c.552 §19; repealed by 1957 c.632 §1 (314.470 enacted in
lieu of 316.675 and 317.480)]
MODIFICATIONS
OF TAXABLE INCOME
(Generally)
316.680
Modification of taxable income. (1) There
shall be subtracted from federal taxable income:
(a) The interest or dividends on
obligations of the United States and its territories and possessions or of any
authority, commission or instrumentality of the United States to the extent
includable in gross income for federal income tax purposes but exempt from
state income taxes under the laws of the United States. However, the amount
subtracted under this paragraph shall be reduced by any interest on
indebtedness incurred to carry the obligations or securities described in this
paragraph, and by any expenses incurred in the production of interest or
dividend income described in this paragraph to the extent that such expenses,
including amortizable bond premiums, are deductible in determining federal
taxable income.
(b) The amount of any federal income taxes
accrued by the taxpayer during the taxable year as described in ORS 316.685,
less the amount of any refunds of federal taxes previously accrued for which a
tax benefit was received.
(c)(A) If the taxpayer does not qualify
for the subtraction under subparagraph (B) of this paragraph, compensation
(other than pension or retirement pay) received for active service performed by
a member of the Armed Forces of the United States in an amount not to exceed
$6,000 per annum. As used in this subparagraph, “active service” includes
weekend drills, annual training, summer camp, special school attendance and
battle assemblies.
(B) For the tax year of initial draft or
enlistment into the Armed Forces of the United States or for the tax year of
discharge from or termination of full-time active duty for the Armed Forces of
the United States, compensation (other than pension or retirement pay or pay
for service when on military reserve duty) paid by the Armed Forces of the
United States for services performed outside this state, if the taxpayer is on
active duty as a full-time officer, enlistee or draftee, with the Armed Forces
of the United States.
(d) Amounts allowable under sections
2621(a)(2) and 2622(b) of the Internal Revenue Code to the extent that the
taxpayer does not elect under section 642(g) of the Internal Revenue Code to
reduce federal taxable income by those amounts.
(e) Any supplemental payments made to JOBS
Plus Program participants under ORS 411.892.
(f)(A) Federal pension income that is
attributable to federal employment occurring before October 1, 1991. Federal
pension income that is attributable to federal employment occurring before
October 1, 1991, shall be determined by multiplying the total amount of federal
pension income for the tax year by the ratio of the number of months of federal
creditable service occurring before October 1, 1991, over the total number of
months of federal creditable service.
(B) The subtraction allowed under this
paragraph applies only to federal pension income received at a time when:
(i) Benefit increases provided under
chapter 569, Oregon Laws 1995, are in effect; or
(ii) Public Employees Retirement System
benefits received for service prior to October 1, 1991, are exempt from state
income tax.
(C) As used in this paragraph:
(i) “Federal creditable service” means
those periods of time for which a federal employee earned a federal pension.
(ii) “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.
(g) Any amount included in federal taxable
income for the tax year that is attributable to the conversion of a regular
individual retirement account into a Roth individual retirement account
described in section 408A of the Internal Revenue Code, to the extent that:
(A) The amount was subject to the income
tax of another state or the District of Columbia in a prior tax year; and
(B) The taxpayer was a resident of the
other state or the District of Columbia for that prior tax year.
(h) Any amounts awarded to the taxpayer by
the Public Safety Memorial Fund Board under ORS 243.954 to 243.974 to the
extent that the taxpayer has not taken the amount as a deduction in determining
the taxpayer’s federal taxable income for the tax year.
(i) If included in taxable income for
federal tax purposes, the amount withdrawn during the tax year in qualified
withdrawals from a college savings network account established under ORS
348.841 to 348.873.
(2) There shall be added to federal
taxable income:
(a) Interest or dividends, exempt from
federal income tax, on obligations or securities of any foreign state or of a
political subdivision or authority of any foreign state. However, the amount
added under this paragraph shall be reduced by any interest on indebtedness
incurred to carry the obligations or securities described in this paragraph and
by any expenses incurred in the production of interest or dividend income
described in this paragraph.
(b) Interest or dividends on obligations
of any authority, commission, instrumentality and territorial possession of the
United States that by the laws of the United States are exempt from federal
income tax but not from state income taxes. However, the amount added under
this paragraph shall be reduced by any interest on indebtedness incurred to
carry the obligations or securities described in this paragraph and by any
expenses incurred in the production of interest or dividend income described in
this paragraph.
(c) The amount of any federal estate taxes
allocable to income in respect of a decedent not taxable by Oregon.
(d) The amount of any allowance for
depletion in excess of the taxpayer’s adjusted basis in the property depleted,
deducted on the taxpayer’s federal income tax return for the taxable year,
pursuant to sections 613, 613A, 614, 616 and 617 of the Internal Revenue Code.
(e) For taxable years beginning on or
after January 1, 1985, the dollar amount deducted under section 151 of the
Internal Revenue Code for personal exemptions for the taxable year.
(f) The amount taken as a deduction on the
taxpayer’s federal return for unused qualified business credits under section
196 of the Internal Revenue Code.
(g) The amount of any increased benefits
paid to a taxpayer under chapter 569, Oregon Laws 1995, under the provisions of
chapter 796, Oregon Laws 1991, and under section 26, chapter 815, Oregon Laws
1991, that is not includable in the taxpayer’s federal taxable income under the
Internal Revenue Code.
(h) The amount of any long term care
insurance premiums paid or incurred by the taxpayer during the tax year if:
(A) The amount is taken into account as a
deduction on the taxpayer’s federal return for the tax year; and
(B) The taxpayer claims the credit allowed
under ORS 315.610 for the tax year.
(i) Any amount taken as a deduction under
section 1341 of the Internal Revenue Code in computing federal taxable income
for the tax year, if the taxpayer has claimed a credit for claim of right
income repayment adjustment under ORS 315.068.
(j) If the taxpayer makes a nonqualified
withdrawal, as defined in ORS 348.841, from a college savings network account
established under ORS 348.841 to 348.873, the amount of the withdrawal that is
attributable to contributions that were subtracted from federal taxable income
under ORS 316.699.
(3) Discount and gain or loss on
retirement or disposition of obligations described under subsection (2)(a) of
this section issued on or after January 1, 1985, shall be treated for purposes
of this chapter in the same manner as under sections 1271 to 1283 and other
pertinent sections of the Internal Revenue Code as if the obligations, although
issued by a foreign state or a political subdivision of a foreign state, were
not tax exempt under the Internal Revenue Code. [Formerly 316.067; 1985 c.345 §7;
1985 c.802 §11; 1987 c.293 §23; 1987 c.647 §13; 1991 c.457 §7b; 1991 c.823 §3;
1995 c.556 §8; 1995 c.561 §17; 1995 c.746 §59; 1995 c.816 §32; 1997 c.99 §18;
1999 c.90 §22; 1999 c.403 §1; 1999 c.746 §12; 1999 c.981 §16; 1999 c.1005 §3;
1999 c.1007 §3; 2001 c.13 §1; 2001 c.212 §1; 2001 c.509 §18; 2003 c.280 §3;
2007 c.843 §§1,2,2a; 2009 c.202 §§1,2]
316.681
Interest or dividends to benefit self-employed or individual retirement
accounts. ORS 316.680 (1)(a) shall apply to the
interest or dividends described under ORS 316.680 (1)(a) to the extent such
interest or dividends are includable in arriving at federal taxable income as
distributions from plans to benefit the self-employed or from individual
retirement accounts described under sections 401 to 408A of the Internal
Revenue Code. [1985 c.738 §2; 2003 c.77 §18]
316.683
State exempt-interest dividends; rules. (1) A
regulated investment company, or a pool of assets managed by a fiduciary,
including a financial institution, shall be qualified to pay state
exempt-interest dividends, as defined in subsection (2) of this section, to its
shareholders or beneficiaries.
(2) The term “state exempt-interest dividend”
means any dividend or part thereof (other than a capital gain dividend, as
defined in section 852(b) of the Internal Revenue Code) paid by a regulated
investment company, or any pool of assets managed by a fiduciary, including but
not limited to a financial institution, and designated by it as a state
exempt-interest dividend in a written notice mailed to its shareholders or
beneficiaries not later than 60 days after the close of its taxable year. If
the aggregate amount so designated with respect to a taxable year (including
state exempt-interest dividends paid after the close of the taxable year in the
manner described in section 855 of the Internal Revenue Code) is greater than
the excess of (a) the amount of interest and dividends received on obligations
described in ORS 316.680 (1)(a), over (b) the sum of the amount of any
deductible interest on indebtedness incurred to carry such obligations and the
amount of any deductible expenses incurred in the production of interest and
dividend income from such obligations, the portion of such distribution which
shall constitute a state exempt-interest dividend shall be only that proportion
of the amount so designated as the amount of such excess for such taxable year
bears to the amount so designated. The exemption created by this section shall
not exceed the portion of the dividend which is attributable to items of
interest described in ORS 316.680 (1)(a).
(3) A state exempt-interest dividend shall
be treated by a shareholder or beneficiary for all purposes as an item of
interest described in ORS 316.680 (1)(a). The shareholder or beneficiary shall
subtract from federal taxable income the state exempt-interest dividends
received with respect to the shares of a regulated investment company or any
pool of assets managed by a fiduciary, including but not limited to a financial
institution. However, the amount subtracted under this section shall be reduced
(but not below zero) by an amount equal to any deductible interest on
indebtedness incurred to carry such shares multiplied by the state
exempt-interest dividends and divided by the total dividends on such shares for
the taxable year.
(4) If a shareholder of a regulated
investment company, or a beneficiary of a pool of assets managed by a
fiduciary, including a financial institution, receives a state exempt-interest
dividend with respect to any share, and the share is held by the taxpayer for
six months or less, then any loss on the sale or exchange of the share shall,
to the extent of the amount the state exempt-interest dividend, be disallowed.
The Department of Revenue may adopt rules that reduce the holding period
requirements to less than six months.
(5) As used in this section, “financial
institution” means a financial institution as defined in ORS 706.008. [1987
c.293 §12b; 1989 c.988 §2; 1993 c.18 §81; 1993 c.229 §24; 1993 c.318 §13; 1997
c.631 §457]
316.685
Federal income tax deductions; accrual method of accounting required;
adjustment for federal earned income credit. (1)(a)
The federal income tax deduction provided by ORS 316.680 shall be as reported
on the taxpayer’s original return and shall be computed on the accrual method
of accounting. Any adjustments to the federal income tax deduction now or
hereafter required by Oregon law, including but not limited to the elimination
of the self-employment tax, also shall be computed and eliminated according to
the accrual method of accounting.
(b) For purposes of calculating the amount
of the deduction for federal income taxes provided under ORS 316.680, the
taxpayer shall not take into account any amount of the earned income credit
provided under section 32 of the Internal Revenue Code that reduced the amount
of the taxpayer’s federal income tax liability for the tax year.
(2) If refunds or additional assessments
result from an adjustment whether initiated by the federal or state government
or the taxpayer after the filing of the original return by the taxpayer, any
additional federal taxes shall be deductible by the Oregon taxpayer under this
section in the year in which the adjustment is finally determined or paid
whichever is later. In the case of a refund the tax reduction shall be added to
the taxpayer’s income in the year in which the refund is received.
(3) For purposes of this chapter, federal
income tax does not include the following:
(a) Taxes, contributions or other payments
paid by employees in pursuance of federal laws relating to Social Security,
railroad retirement, unemployment compensation or old age benefits.
(b) Taxes paid pursuant to the
Self-Employment Contribution Act, subtitle A, chapter 2, Internal Revenue Code.
[Formerly 316.072; 1987 c.293 §24; 1997 c.692 §4]
316.687
Amount in excess of standard deduction for child, if child’s income included on
parent’s federal return; limitation. There shall
be added to federal taxable income of a parent who makes an election under
section 1(g)(7)(B) of the Internal Revenue Code any amount in excess of the
standard deduction allowed for a child under ORS 316.695 (8) but not in excess
of the amount described in section 1(g)(7)(B)(i) of the Internal Revenue Code
(twice the amount in effect for the taxable year under section 63(c)(5)(A) of
the Internal Revenue Code). The addition under this section shall be made for
each child whose income is included in the taxable income of the parent under
section 1(g)(7)(B) of the Internal Revenue Code. [1989 c.625 §13; 1991 c.457 §7c;
1997 c.839 §23; 1999 c.917 §2]
316.690
Foreign income taxes. (1) Subject to subsection (2) of
this section, in addition to other modifications provided in this chapter, and
if a taxpayer elects to take foreign income taxes imposed for the taxable year
by a foreign country as a credit on the federal income tax return or does not
itemize personal deductions on the federal income tax return, there shall be
subtracted from federal taxable income in the computation of state taxable
income the amount of foreign income taxes imposed for the taxable year by a
foreign country.
(2) The deduction for foreign country
income taxes provided by this section shall be limited as follows:
(a) Except as provided in paragraph (b) of
this subsection, the sum of foreign country income taxes deducted in computing
state taxable income and the modification for federal income taxes authorized
by ORS 316.680 (1)(b) as limited by ORS 316.695 (3) shall not exceed $3,000.
(b) In the case of a husband and wife
filing separate tax returns, the sum described in paragraph (a) of this
subsection shall be limited to $1,500. [Formerly 316.071; 1985 c.345 §8; 1987 c.293
§24a]
316.695
Additional modifications of taxable income; rules.
(1) In addition to the modifications to federal taxable income contained in
this chapter, there shall be added to or subtracted from federal taxable
income:
(a) If, in computing federal income tax
for a taxable year, the taxpayer deducted itemized deductions, as defined in
section 63(d) of the Internal Revenue Code, the taxpayer shall add the amount
of itemized deductions deducted (the itemized deductions less an amount, if
any, by which the itemized deductions are reduced under section 68 of the
Internal Revenue Code).
(b) If, in computing federal income tax
for a taxable year, the taxpayer deducted the standard deduction, as defined in
section 63(c) of the Internal Revenue Code, the taxpayer shall add the amount
of the standard deduction deducted.
(c)(A) From federal taxable income there
shall be subtracted the larger of (i) the taxpayer’s itemized deductions or
(ii) a standard deduction. Except as provided in subsection (8) of this
section, for purposes of this subparagraph, “standard deduction” means the sum
of the basic standard deduction and the additional standard deduction.
(B) For purposes of subparagraph (A) of
this paragraph, the basic standard deduction is:
(i) $3,280, in the case of joint return
filers or a surviving spouse;
(ii) $1,640, in the case of an individual
who is not a married individual and is not a surviving spouse;
(iii) $1,640, in the case of a married
individual who files a separate return; or
(iv) $2,640, in the case of a head of
household.
(C)(i) For purposes of subparagraph (A) of
this paragraph for tax years beginning on or after January 1, 2003, the
Department of Revenue shall annually recompute the basic standard deduction for
each category of return filer listed under subparagraph (B) of this paragraph.
The basic standard deduction shall be computed by dividing the monthly averaged
U.S. City Average Consumer Price Index for the 12 consecutive months ending
August 31 of the prior calendar year by the average U.S. City Average Consumer
Price Index for the second quarter of 2002, then multiplying that quotient by
the amount listed under subparagraph (B) of this paragraph for each category of
return filer.
(ii) If any change in the maximum
household income determined under this subparagraph is not a multiple of $5,
the increase shall be rounded to the next lower multiple of $5.
(iii) As used in this subparagraph, “U.S.
City Average Consumer Price Index” means the U.S. City Average Consumer Price
Index for All Urban Consumers (All Items) as published by the Bureau of Labor
Statistics of the United States Department of Labor.
(D) For purposes of subparagraph (A) of
this paragraph, the additional standard deduction is the sum of each additional
amount to which the taxpayer is entitled under subsection (7) of this section.
(E) As used in subparagraph (B) of this
paragraph, “surviving spouse” and “head of household” have the meaning given
those terms in section 2 of the Internal Revenue Code.
(F) In the case of the following, the
standard deduction referred to in subparagraph (A) of this paragraph shall be
zero:
(i) A husband or wife filing a separate
return where the other spouse has claimed itemized deductions under
subparagraph (A) of this paragraph;
(ii) A nonresident alien individual;
(iii) An individual making a return for a
period of less than 12 months on account of a change in the individual’s annual
accounting period;
(iv) An estate or trust;
(v) A common trust fund; or
(vi) A partnership.
(d) For the purposes of paragraph (c)(A)
of this subsection, the taxpayer’s itemized deductions are the sum of:
(A) The taxpayer’s itemized deductions as
defined in section 63(d) of the Internal Revenue Code (reduced, if applicable,
as described under section 68 of the Internal Revenue Code) minus the deduction
for Oregon income tax (reduced, if applicable, by the proportion that the
reduction in federal itemized deductions resulting from section 68 of the
Internal Revenue Code bears to the amount of federal itemized deductions as
defined for purposes of section 68 of the Internal Revenue Code); and
(B) The amount that may be taken into
account under section 213(a) of the Internal Revenue Code, not to exceed seven
and one-half percent of the federal adjusted gross income of the taxpayer, if
the taxpayer has attained the following age before the close of the taxable
year, or, in the case of a joint return, if either taxpayer has attained the
following age before the close of the taxable year:
(i) For taxable years beginning on or
after January 1, 1991, and before January 1, 1993, a taxpayer must attain 58
years of age before the close of the taxable year.
(ii) For taxable years beginning on or
after January 1, 1993, and before January 1, 1995, a taxpayer must attain 59
years of age before the close of the taxable year.
(iii) For taxable years beginning on or
after January 1, 1995, and before January 1, 1997, a taxpayer must attain 60
years of age before the close of the taxable year.
(iv) For taxable years beginning on or
after January 1, 1997, and before January 1, 1999, a taxpayer must attain 61
years of age before the close of the taxable year.
(v) For taxable years beginning on or
after January 1, 1999, a taxpayer must attain 62 years of age before the close
of the taxable year.
(2)(a) There shall be subtracted from
federal taxable income any portion of the distribution of a pension,
profit-sharing, stock bonus or other retirement plan, representing that portion
of contributions which were taxed by the State of Oregon but not taxed by the
federal government under laws in effect for tax years beginning prior to
January 1, 1969, or for any subsequent year in which the amount that was
contributed to the plan under the Internal Revenue Code was greater than the
amount allowed under this chapter.
(b) Interest or other earnings on any
excess contributions of a pension, profit-sharing, stock bonus or other
retirement plan not permitted to be deducted under paragraph (a) of this
subsection shall not be added to federal taxable income in the year earned by
the plan and shall not be subtracted from federal taxable income in the year
received by the taxpayer.
(3)(a) Except as provided in subsection
(4) of this section, there shall be added to federal taxable income the amount
of any federal income taxes in excess of the amount provided in paragraphs (b)
to (d) of this subsection, accrued by the taxpayer during the taxable year as
described in ORS 316.685, less the amount of any refund of federal taxes
previously accrued for which a tax benefit was received.
(b) The limits applicable to this
subsection are:
(A) $5,500, if the federal adjusted gross
income of the taxpayer for the tax year is less than $125,000, or, if reported
on a joint return, less than $250,000.
(B) $4,400, if the federal adjusted gross
income of the taxpayer for the tax year is $125,000 or more and less than
$130,000, or, if reported on a joint return, $250,000 or more and less than
$260,000.
(C) $3,300, if the federal adjusted gross
income of the taxpayer for the tax year is $130,000 or more and less than
$135,000, or, if reported on a joint return, $260,000 or more and less than
$270,000.