Bill Text: OR HB3282 | 2011 | Regular Session | Introduced

Oregon House Bill 3282 (Prior Session Legislation)

Introduced

Bill Title: Relating to tax deferrals for investments in certain businesses; prescribing an effective date.

Spectrum: Partisan Bill (Republican 2-0)

Status: (Failed) 2011-06-30 - In committee upon adjournment. [HB3282 Detail]

Download: Oregon-2011-HB3282-Introduced.html



     76th OREGON LEGISLATIVE ASSEMBLY--2011 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 3710

                         House Bill 3282

Sponsored by Representative BREWER; Senator STARR

                             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.

  Permits taxpayer to defer recognition of long term capital
gains if taxpayer invests in certain businesses.
  Applies to tax years beginning on or after January 1, 2011.
  Takes effect on 91st day following adjournment sine die.

                        A BILL FOR AN ACT
Relating to tax deferrals for investments in certain businesses;
  and prescribing an effective date.
Be It Enacted by the People of the State of Oregon:
  SECTION 1.  { + Section 2 of this 2011 Act is added to and made
a part of ORS chapter 314. + }
  SECTION 2.  { + (1) As used in this section:
  (a) 'Equipment' means property as described in section
1245(a)(3) of the Internal Revenue Code that is tangible personal
property used in an Oregon business.
  (b) 'Oregon business' has the meaning given that term in ORS
470.050.
  (c) 'Oregon investment' means an investment in Oregon business,
equipment or workforce.
  (d) 'Workforce' means salaries, wages and benefits paid to
employees of the taxpayer for service performed in this state.
  (2) A taxpayer who has income for federal income tax purposes
from the sale or other disposition of a capital asset may defer
recognition of all or part of long term capital gain in
determining the taxes imposed under this chapter or ORS chapter
316, 317 or 318 if an amount equal to the gain is invested in an
Oregon investment during the tax year. This deferral may be
continued as long as the Oregon investment is maintained.
  (3) A taxpayer meeting the requirements of subsection (2) of
this section and seeking deferral shall file an application for
the deferral with the Department of Revenue at the time the
taxpayer files the tax return for the tax year for which deferral
is sought.
  (4) The department may require the taxpayer to provide proof of
eligibility for the deferral granted by this section.
  (5) Deferral may be granted under this section only if the
taxpayer:
  (a) Has timely filed the taxpayer's tax return for the tax
year; and
  (b) Has paid any amount of tax due that is not eligible for
deferral under subsection (2) of this section for the tax year.
  (6) If the taxpayer meets the requirements for deferral under
this section, the department shall grant the deferral.
  (7) The basis of the taxpayer in the Oregon investment shall be
reduced by the amount of gain deferred under this section.
  (8) The department may adopt rules and prescribe any forms
necessary to administer the deferral program created by this
section. + }
  SECTION 3.  { + Section 2 of this 2011 Act applies to tax years
beginning on or after January 1, 2011. + }
  SECTION 4.  { + This 2011 Act takes effect on the 91st day
after the date on which the 2011 regular session of the
Seventy-sixth Legislative Assembly adjourns sine die. + }
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