Bill Text: OR HB4113 | 2012 | Regular Session | Introduced
Bill Title: Relating to corporate taxation; prescribing an effective date.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Failed) 2012-03-05 - In committee upon adjournment. [HB4113 Detail]
Download: Oregon-2012-HB4113-Introduced.html
76th OREGON LEGISLATIVE ASSEMBLY--2012 Regular Session
NOTE: Matter within { + braces and plus signs + } in an
amended section is new. Matter within { - braces and minus
signs - } is existing law to be omitted. New sections are within
{ + braces and plus signs + } .
LC 169
House Bill 4113
Sponsored by Representative BERGER (Presession filed.)
SUMMARY
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.
Provides that corporate minimum tax may be reduced by allowance
of tax credits. Applies to tax years beginning on or after
January 1, 2009.
Takes effect on 91st day following adjournment sine die.
A BILL FOR AN ACT
Relating to corporate taxation; creating new provisions; amending
ORS 317.090 and 317.151; and prescribing an effective date.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 317.090 is amended to read:
317.090. (1) As used in this section:
(a) 'Oregon sales' means:
(A) If the corporation apportions business income under ORS
314.650 to 314.665 for Oregon tax purposes, the total sales of
the taxpayer in this state during the tax year, as determined for
purposes of ORS 314.665;
(B) If the corporation does not apportion business income for
Oregon tax purposes, the total sales in this state that the
taxpayer would have had, as determined for purposes of ORS
314.665, if the taxpayer were required to apportion business
income for Oregon tax purposes; or
(C) If the corporation apportions business income using a
method different from the method prescribed by ORS 314.650 to
314.665, Oregon sales as defined by the Department of Revenue by
rule.
(b) If the corporation is an agricultural cooperative that is a
cooperative organization described in section 1381 of the
Internal Revenue Code, 'Oregon sales' does not include sales
representing business done with or for members of the
agricultural cooperative.
(2) Each corporation or affiliated group of corporations filing
a return under ORS 317.710 shall pay annually to the state, for
the privilege of carrying on or doing business by it within this
state, a minimum tax as follows:
(a) If Oregon sales properly reported on a return are:
(A) Less than $500,000, the minimum tax is $150.
(B) $500,000 or more, but less than $1 million, the minimum tax
is $500.
(C) $1 million or more, but less than $2 million, the minimum
tax is $1,000.
(D) $2 million or more, but less than $3 million, the minimum
tax is $1,500.
(E) $3 million or more, but less than $5 million, the minimum
tax is $2,000.
(F) $5 million or more, but less than $7 million, the minimum
tax is $4,000.
(G) $7 million or more, but less than $10 million, the minimum
tax is $7,500.
(H) $10 million or more, but less than $25 million, the minimum
tax is $15,000.
(I) $25 million or more, but less than $50 million, the minimum
tax is $30,000.
(J) $50 million or more, but less than $75 million, the minimum
tax is $50,000.
(K) $75 million or more, but less than $100 million, the
minimum tax is $75,000.
(L) $100 million or more, the minimum tax is $100,000.
(b) If a corporation is an S corporation, the minimum tax is
$150.
(3) The minimum tax is not apportionable (except in the case of
a change of accounting periods), and is payable in full for any
part of the year during which a corporation is subject to
tax. { + The minimum tax may be reduced by the application of
credits allowed under this chapter or ORS chapter 315. + }
SECTION 2. ORS 317.151 is amended to read:
317.151. (1) A credit is allowed against the taxes otherwise
due under this chapter. The amount of the credit shall equal 10
percent of the fair market value of certain qualified charitable
contributions, as described in this section.
(2) To qualify for the credit allowed under subsection (1) of
this section, the charitable contribution must:
(a) Be a charitable contribution of tangible personal property
described in section 1221(a)(1) of the Internal Revenue Code that
has as its original use, use by the donee for education of
students in this state, and that is a computer or other
scientific equipment or apparatus; and
(b) Be a charitable contribution made during the tax year for
which the credit is claimed to an educational organization that
is located in this state and that is:
(A) An institution of higher education described in section 170
(b)(1)(A)(ii) of the Internal Revenue Code; or
(B) A public educational institution offering instruction in
prekindergarten through grade 12 or any portion of that
instruction.
(3) Notwithstanding subsection (2) of this section, a
charitable contribution shall qualify for the credit allowed
under subsection (1) of this section, if:
(a) The charitable contribution would otherwise qualify for the
credit under subsection (2) of this section except that the
charitable contribution is of a contract or agreement for the
maintenance of the computer or other scientific equipment or
apparatus; or
(b) The charitable contribution is a contribution of moneys
made under a contract or agreement during the tax year for
scientific or engineering research to an educational organization
that is located in this state and that is:
(A) An institution of higher education described in section 170
(b)(1)(A)(ii) of the Internal Revenue Code; or
(B) A public educational institution offering instruction in
prekindergarten through grade 12 or any portion of that
instruction.
(4) The credit allowed under this section is in lieu of any
deduction otherwise allowable under this chapter. No deduction
shall be allowed under this chapter for any amount upon which the
credit allowed under this section is based. However, nothing in
this section shall affect the basis of the property in the hands
of the donee or any other taxpayer. The basis of the property in
the hands of the donee or other person shall be determined as if
this section did not exist.
(5)(a) Except as provided in paragraph (b) of this subsection,
the credit allowed under this section shall not exceed the tax
liability of the taxpayer { - and shall not be allowed against
the tax imposed under ORS 317.090 - } . To qualify for a credit
under this section, the charitable contribution must be made
without consideration and be accepted by the donee institution or
school.
(b) 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 that
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.
(6) For purposes of this section, 'fair market value' shall be
determined at the time the property or services are contributed
and shall be substantiated by whatever information the Department
of Revenue requires. A requirement for substantiation may be
waived partially, conditionally or absolutely, as provided under
ORS 315.063.
SECTION 3. { + The amendments to ORS 317.090 and 317.151 by
sections 1 and 2 of this 2012 Act apply to tax years beginning on
or after January 1, 2009. + }
SECTION 4. { + This 2012 Act takes effect on the 91st day
after the date on which the 2012 regular session of the
Seventy-sixth Legislative Assembly adjourns sine die. + }
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