Bill Text: OR SB430 | 2013 | Regular Session | Introduced

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Bill Title: Relating to subtractions for crop contributions; prescribing an effective date.

Spectrum: Bipartisan Bill

Status: (Failed) 2013-07-08 - In committee upon adjournment. [SB430 Detail]

Download: Oregon-2013-SB430-Introduced.html

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     77th OREGON LEGISLATIVE ASSEMBLY--2013 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 1681

                         Senate Bill 430

Sponsored by Senator THOMSEN, Representative CLEM; Senators
  DINGFELDER, JOHNSON, OLSEN, STEINER HAYWARD, WHITSETT,
  Representatives BAILEY, BENTZ, BERGER, BOONE, DOHERTY,
  ESQUIVEL, FREDERICK, HUFFMAN, KENY-GUYER, MCLANE, PARRISH
  (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.

  Creates subtraction from taxable income for contribution of
crop to charitable organization.
  Applies to tax years beginning on or after January 1, 2013, and
before January 1, 2020.
  Takes effect on 91st day following adjournment sine die.

                        A BILL FOR AN ACT
Relating to subtractions for crop contributions; and prescribing
  an effective date.
Be It Enacted by the People of the State of Oregon:
  SECTION 1.  { + Section 2 of this 2013 Act is added to and made
a part of ORS chapter 316. + }
  SECTION 2.  { + (1) As used in this section:
  (a) 'Charitable organization' means a food bank or other
charitable organization as defined in ORS 315.154.
  (b) 'Crop' has the meaning given that term in ORS 315.154.
  (c) 'Most recent sale price' means an amount equal to the price
that the taxpayer would have received for the contributed crop,
determined as if the crop had been sold by that taxpayer on the
date of the most recent sale of such a crop and at the same price
per unit as the most recent sale or at the price determined by an
agricultural market service on the date the crop is contributed.
  (d) 'Qualified crop contribution' means any contribution to a
charitable organization of a crop grown in this state by a
taxpayer engaged in the trade or business of farming or
processing agriculture crops.
  (e) 'Wholesale market price' means the average wholesale market
price for the contributed crop in the nearest regional market
during the month in which the contribution is made, determined
without consideration of the grade or quality of the crop and as
if the quantity of the contributed crop were marketable.
  (2)(a) A subtraction from federal taxable income shall be
allowed under this chapter for qualified crop contributions made
during the tax year to one or more charitable organizations.
  (b) The amount of the subtraction under this section may not
exceed the wholesale market price or the most recent sale price
of the contributed crop, whichever is greater.
  (c) The subtraction under this section shall be reduced by any
amount that is deducted as a charitable contribution under
section 170 of the Internal Revenue Code with respect to the
contributed crop and that exceeds the cost of producing the crop.
  (d) It is not a double deduction for a taxpayer to claim both a
subtraction under this section for a qualified crop contribution
and a deduction for the costs of producing the crop.
  (3) The subtraction under this section shall be allowed if:
  (a) The use of the crop by the charitable organization is
related to the purpose or function forming the basis of the
charitable organization's tax-exempt status.
  (b) The crop is not transferred by the charitable organization
in exchange for money, other property or services.
  (4) At the time of the qualified crop contribution, the
director, supervisor or other appropriate official of the
charitable organization to which a qualified crop contribution is
made shall supply to the taxpayer two copies of a form prescribed
by the Department of Revenue. The form shall contain:
  (a) The name and address of the grower;
  (b) The description and quantity of the contributed crop;
  (c) The signature of the director, supervisor or other
appropriate official of the charitable organization receiving the
qualified crop contribution verifying that the crop was or will
be distributed to children or homeless, unemployed, elderly or
low-income individuals;
  (d) The wholesale market price or the most recent sale price of
the contributed crop, whichever is greater; and
  (e) Any other information required by the department by rule.
  (5) If at any time the department determines that a taxpayer is
not in compliance with any of the provisions of this section, the
department shall disallow the subtraction under this section.
Upon this disallowance, the department shall determine the amount
of tax due absent the subtraction under this section and
immediately shall collect any taxes due by reason of the
disallowance.
  (6) The department shall by rule establish criteria and
policies for administering the subtraction allowed under this
section. + }
  SECTION 3.  { + Section 4 of this 2013 Act is added to and made
a part of ORS chapter 317. + }
  SECTION 4.  { + (1) As used in this section:
  (a) 'Charitable organization' means a food bank or other
charitable organization as defined in ORS 315.154.
  (b) 'Crop' has the meaning given that term in ORS 315.154.
  (c) 'Most recent sale price' means an amount equal to the price
that the taxpayer would have received for the contributed crop,
determined as if the crop had been sold by that taxpayer on the
date of the most recent sale of such a crop and at the same price
per unit as the most recent sale or at the price determined by an
agricultural market service on the date the crop is contributed.
  (d) 'Qualified crop contribution' means any contribution to a
charitable organization of a crop grown in this state by a
taxpayer engaged in the trade or business of farming or
processing agriculture crops.
  (e) 'Wholesale market price' means the average wholesale market
price for the contributed crop in the nearest regional market
during the month in which the contribution is made, determined
without consideration of the grade or quality of the crop and as
if the quantity of the contributed crop were marketable.
  (2)(a) A subtraction from federal taxable income shall be
allowed under this chapter for qualified crop contributions made
during the tax year to one or more charitable organizations.
  (b) The amount of the subtraction under this section may not
exceed the wholesale market price or the most recent sale price
of the contributed crop, whichever is greater.

  (c) The subtraction under this section shall be reduced by any
amount that is deducted as a charitable contribution under
section 170 of the Internal Revenue Code with respect to the
contributed crop and that exceeds the cost of producing the crop.
  (d) It is not a double deduction for a taxpayer to claim both a
subtraction under this section for a qualified crop contribution
and a deduction for the costs of producing the crop.
  (3) The subtraction under this section shall be allowed if:
  (a) The use of the crop by the charitable organization is
related to the purpose or function forming the basis of the
charitable organization's tax-exempt status.
  (b) The crop is not transferred by the charitable organization
in exchange for money, other property or services.
  (4) At the time of a qualified crop contribution, the director,
supervisor or other appropriate official of the charitable
organization to which a qualified crop contribution is made shall
supply to the taxpayer two copies of a form prescribed by the
Department of Revenue. The form shall contain:
  (a) The name and address of the grower;
  (b) The description and quantity of the contributed crop;
  (c) The signature of the director, supervisor or other
appropriate official of the charitable organization receiving the
qualified crop contribution verifying that the crop was or will
be distributed to children or homeless, unemployed, elderly or
low-income individuals;
  (d) The wholesale market price or the most recent sale price of
the contributed crop, whichever is greater; and
  (e) Any other information required by the department by rule.
  (5) If at any time the department determines that a taxpayer is
not in compliance with any of the provisions of this section, the
department shall disallow the subtraction under this section.
Upon this disallowance, the department shall determine the amount
of tax due absent the subtraction under this section and
immediately shall collect any taxes due by reason of the
disallowance.
  (6) The department shall by rule establish criteria and
policies for administering the subtraction allowed under this
section. + }
  SECTION 5.  { + Sections 2 and 4 of this 2013 Act apply to tax
years beginning on or after January 1, 2013, and before January
1, 2020. + }
  SECTION 6.  { + This 2013 Act takes effect on the 91st day
after the date on which the 2013 regular session of the
Seventy-seventh Legislative Assembly adjourns sine die. + }
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