Chapter 316 — Personal
Income Tax
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