Bill Text: OR HB2460 | 2013 | Regular Session | Enrolled
Bill Title: Relating to tax compliance; and prescribing an effective date.
Spectrum: Committee Bill
Status: (Passed) 2013-08-01 - Chapter 707, (2013 Laws): Effective date October 7, 2013. [HB2460 Detail]
Download: Oregon-2013-HB2460-Enrolled.html
77th OREGON LEGISLATIVE ASSEMBLY--2013 Regular Session
Enrolled
House Bill 2460
Introduced and printed pursuant to House Rule 12.00. Presession
filed (at the request of House Interim Committee on Revenue)
CHAPTER ................
AN ACT
Relating to tax compliance; creating new provisions; amending ORS
317.267 and 317.715; and prescribing an effective date.
Be It Enacted by the People of the State of Oregon:
SECTION 1. { + No later than February 1, 2014, the Department
of Revenue shall make a report on the use of out-of-state tax
shelters to the Seventy-seventh Legislative Assembly. The
department shall use all data available to the department to
prepare the report, which shall:
(1) Describe methods by which taxpayers shift income otherwise
taxable by this state to outside the state; and
(2) Make recommendations for addressing noncompliance
attributable to out-of-state tax shelters. + }
SECTION 2. ORS 317.715 is amended to read:
317.715. (1) If a corporation required to make a return under
this chapter is a member of an affiliated group of corporations
making a consolidated federal return under sections 1501 to 1505
of the Internal Revenue Code, the corporation's Oregon taxable
income shall be determined beginning with federal consolidated
taxable income of the affiliated group as provided in this
section.
{ + (2)(a) For purposes of determining Oregon taxable income,
the taxable income or loss of any corporation that is a member of
a unitary group and that is incorporated in any of the following
jurisdictions shall be added to federal consolidated taxable
income:
(b) Andorra, Anguilla, Antigua and Barbuda, Aruba, the Bahamas,
Bahrain, Barbados, Belize, Bermuda, the British Virgin Islands,
the Cayman Islands, the Cook Islands, Cyprus, Dominica,
Gibraltar, Grenada, Guernsey-Sark-Alderney, the Isle of Man,
Jersey, Liberia, Liechtenstein, Luxembourg, Malta, the Marshall
Islands, Mauritius, Monaco, Montserrat, Nauru, the Netherlands
Antilles, Niue, Samoa, San Marino, Seychelles, St. Kitts and
Nevis, St. Lucia, St. Vincent and the Grenadines, the Turks and
Caicos Islands, the U.S. Virgin Islands and Vanuatu. + }
{ - (2) - } { + (3) + } If the affiliated group, of which
the corporation subject to taxation under this chapter is a
member, consists of more than one unitary group, before the
additions, subtractions, adjustments and modifications to federal
taxable income provided for in this chapter are made, and before
allocation and apportionment as provided in ORS 317.010 (10), if
any, modified federal consolidated taxable income shall be
Enrolled House Bill 2460 (HB 2460-B) Page 1
computed. Modified federal consolidated taxable income shall be
determined by eliminating from the federal consolidated taxable
income of the affiliated group the separate taxable income, as
determined under Treasury Regulations adopted under section 1502
of the Internal Revenue Code, and any deductions or additions or
items of income, expense, gain or loss for which consolidated
treatment is prescribed under Treasury Regulations adopted under
section 1502 of the Internal Revenue Code, attributable to the
member or members of any unitary group of which the corporation
is not a member.
{ - (3)(a) - } { + (4)(a) + } After modified federal
consolidated taxable income is determined under subsection
{ - (2) - } { + (3) + } of this section, the additions,
subtractions, adjustments and modifications prescribed by this
chapter shall be made to the modified federal consolidated
taxable income of the remaining members of the affiliated group,
where applicable, as if all such members were subject to taxation
under this chapter. After those modifications are made, Oregon
taxable income or loss shall be determined as provided in ORS
317.010 (10)(a) to (c), if necessary.
(b) In the computation of the Oregon apportionment percentage
for a corporation that is a member of an affiliated group filing
a consolidated federal return, there shall be taken into
consideration only the property, payroll, sales or other factors
of those members of the affiliated group { + , and of those
corporations described in subsection (2) of this section, + }
whose items of income, expense, gain or loss remain in modified
federal consolidated taxable income after the eliminations
required under subsection { - (2) - } { + (3) + } of this
section. Those members of an affiliated group making a
consolidated federal return or a consolidated state return
{ - shall - } { + may + } not be treated as one taxpayer for
purposes of determining whether any member of the group is
taxable in this state or any other state with respect to
questions of jurisdiction to tax or the composition of the
apportionment factors used to attribute income to this state
under ORS 314.280 or 314.605 to 314.675.
{ + (5) The Department of Revenue shall adopt rules:
(a) To determine the computation of income or loss for a
corporation that is a member of a unitary group and that is not
otherwise required to file a consolidated federal return.
(b) To prevent double taxation or double deduction of any
amount included in the computation of income under this
section. + }
SECTION 3. ORS 317.267 is amended to read:
317.267. (1) To derive Oregon taxable income, there shall be
added to federal taxable income amounts received as dividends
from corporations deducted for federal purposes pursuant to
section 243 or 245 of the Internal Revenue Code, except section
245(c) of the Internal Revenue Code, amounts paid as dividends by
a public utility or telecommunications utility and deducted for
federal purposes pursuant to section 247 of the Internal Revenue
Code or dividends eliminated under Treasury Regulations adopted
under section 1502 of the Internal Revenue Code that are paid by
members of an affiliated group that are eliminated from a
consolidated federal return pursuant to ORS 317.715 { - (2) - }
{ + (3) + }.
(2) To derive Oregon taxable income, after the modification
prescribed under subsection (1) of this section, there shall be
subtracted from federal taxable income an amount equal to 70
Enrolled House Bill 2460 (HB 2460-B) Page 2
percent of dividends (determined without regard to section 78 of
the Internal Revenue Code) received or deemed received from
corporations if such dividends are included in federal taxable
income. However:
(a) In the case of any dividend on debt-financed portfolio
stock as described in section 246A of the Internal Revenue Code,
the subtraction allowed under this subsection shall be reduced
under the same conditions and in same amount as the dividends
received deduction otherwise allowable for federal income tax
purposes is reduced under section 246A of the Internal Revenue
Code.
(b) In the case of any dividend received from a 20 percent
owned corporation, as defined in section 243(c) of the Internal
Revenue Code, this subsection shall be applied by substituting '
80 percent' for '70 percent. '
(c) A dividend that is not treated as a dividend under section
243(d) or 965(c)(3) of the Internal Revenue Code may not be
treated as a dividend for purposes of this subsection.
(d) If a dividends received deduction is not allowed for
federal tax purposes because of section 246(a) or (c) of the
Internal Revenue Code, a subtraction may not be made under this
subsection for received dividends that are described in section
246(a) or (c) of the Internal Revenue Code.
(3) There shall be excluded from the sales factor of any
apportionment formula employed to attribute income to this state
any amount subtracted from federal taxable income under
subsection (2) of this section.
SECTION 4. { + On or before January 1 of each odd-numbered
year, the Department of Revenue shall submit a report to the
Legislative Assembly in the manner provided by ORS 192.245. The
report shall include recommendations for legislation related to
jurisdictions listed in ORS 317.715 (2)(b), including
recommendations for additions to or subtractions from the list of
jurisdictions in ORS 317.715 (2)(b). + }
SECTION 5. { + The amendments to ORS 317.267 and 317.715 by
sections 2 and 3 of this 2013 Act apply to tax years beginning on
or after January 1, 2014. + }
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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Passed by House May 22, 2013
Repassed by House June 27, 2013
.............................................................
Ramona J. Line, Chief Clerk of House
.............................................................
Tina Kotek, Speaker of House
Passed by Senate June 26, 2013
.............................................................
Peter Courtney, President of Senate
Enrolled House Bill 2460 (HB 2460-B) Page 3
Received by Governor:
......M.,............., 2013
Approved:
......M.,............., 2013
.............................................................
John Kitzhaber, Governor
Filed in Office of Secretary of State:
......M.,............., 2013
.............................................................
Kate Brown, Secretary of State
Enrolled House Bill 2460 (HB 2460-B) Page 4
