Chapter 316 — Personal Income Tax

316.002 Short title

This chapter may be cited as the Personal Income Tax Act of 1969.

316.003 Goals

The goals of the Legislative Assembly are to achieve for the people of this state a tax system that recognizes: Fairness and equity as its basic values; and That the total tax system should use seven guiding principles as measures by which to evaluate tax proposals. Those guiding principles are: Ability to pay; Fairness; Efficiency; Even distribution;…

316.005 [1953 c.304 §1; repealed by 1969 c.493 §99]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: 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 r…

316.010 [1953 c.304 §2; 1953 c.552 §1; repealed by 1969 c.493 §99]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 o…

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 t…

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c.304 §3; 1953 c.552 §2; 1959 c.211 §3; 1959 c.593 §1 (referred and rejected); 1963 c.627 §2 (referred and rejected); repealed by 1969 c.493 §99; amended by 1969 c.520 §41]

316.016 [1973 c.119 §2; repealed by 1975 c.672 §8]

316.017 [1969 c.493 §3a; repealed by 1969 c.493 §3b]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.

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: “Department” means the Department of Revenue. “Director” means the Director of the Department of Revenue. “Individual” means a natural person, including aliens and minors. A “nonresident” means an individual who is not a resident of this state. “Part-year resident” means an individual taxpa…

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.

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)]

316.026 Charitable contributions or activities not to be used for domicile or resident status determination

The Department of Revenue may not use the charitable contributions or activities of an individual or the individual’s spouse, whether performed inside or outside this state, for the purposes of determining the individual’s domicile or resident status under this chapter.

316.027 “Resident” defined

For purposes of this chapter, unless the context requires otherwise: “Resident” or “resident of this state” means: An individual who is domiciled in this state unless the individual: Maintains no permanent place of abode in this state; Does maintain a permanent place of abode elsewhere; and Spends in the aggregate not more than 30 days in the taxable ye…

316.028 Determination of net operating loss, carryback and carryforward

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…

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.

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)]

316.031 Net operating loss subtraction allowed to taxpayer doing business in agricultural sector

As used in this section, “eligible taxpayer” means a taxpayer primarily doing business in 2017 North American Industry Classification System code 111, crop production, or code 112, animal production and aquaculture. An eligible taxpayer may elect under this section to use a three-year net operating loss carryback. Notwithstanding ORS 316.028, if an eligibl…

316.032 Department to administer law; policy as to federal conflicts and technical corrections

The Department of Revenue shall administer and enforce this chapter. 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…

316.035 [1953 c.304 §117; repealed by 1969 c.493 §99 and 1969 c.520 §49]

316.037 Imposition and rate of tax

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 4.75% of taxable income Over $2,000 but no…

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 spouses in a marriage, 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…

316.043 Tax rates allowed for certain qualifying income; conditions; election

As used in this section: “Material participation” has the meaning given that term in section 469 of the Internal Revenue Code. “Nonpassive income” means income other than income from passive activity as determined under section 469 of the Internal Revenue Code. “Nonpassive income” does not include wages, interest, dividends or capital gains. “Nonpassive l…

316.044 Estimates by Legislative Revenue Officer; reports; adjustment of rates

As soon as practicable, the Legislative Revenue Officer, after consultation with the Department of Revenue, shall prepare estimates of projected use by taxpayers of the reduced rates provided in ORS 316.043 (2). The estimates shall include the projected use of the reduced rates in tax years beginning on or after January 1, 2015, and before January 1, 2017, a…

316.045 Tax rate imposed on certain long-term capital gain from farming; requirements

As used in this section: “Farming” means: Raising, harvesting and selling crops; Feeding, breeding, managing or selling livestock, poultry, fur-bearing animals or honeybees or the produce thereof; Dairying and selling dairy products; Stabling or training equines, including but not limited to providing riding lessons, training clinics and schooling shows…

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 eff…

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.

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 pu…

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, to the extent includable in gross income for federal income tax purposes, the interest or dividends on obligations of: The State of Oregon pursuant to ORS 286A.140. A public body, as defined in ORS 287A.001. The amou…

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 [1973 c.475 §§2,3; 1975 c.672 §4; 1997 c.839 §5; repealed by 2013 c.176 §7]

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 [1973 c.644 §6; 1979 c.699 §1; repealed by 2013 c.176 §7]

316.077 [1969 c.493 §16; renumbered 316.697]

CREDITS

316.078 Tax credit for dependent care expenses necessary for employment

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 …

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 …

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

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), f…

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

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. In the case of an individual with respect to whom a credit under paragraph (a) of this subsection is allowable to another taxpaye…

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

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. A nonresident…

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)]

316.090 Credit for manufactured dwelling park closure

As used in this section: “Household” means the taxpayer, the spouse of the taxpayer and all other persons residing in the manufactured dwelling during any part of the calendar year for which a credit is claimed. “Manufactured dwelling” has the meaning given that term in ORS 446.003. “Manufactured dwelling park” means a place within this state where four o…

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; income limitation; rules of State Board of Education

As used in this section, unless the context requires otherwise: “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,…

316.102 Credit for political contributions

A credit against taxes shall be allowed for voluntary contributions in money made in the taxable year: 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. To or for the use of a person who must be a candidate for nomination or election to a fed…

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

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. 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 ano…

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; rules

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 or at a dwelling. A credit against the taxes otherwise due under this chapter is not allowed for an alternative energy device that does not meet or…

316.117 Proration between Oregon income and other income for nonresidents, part-year residents and trusts

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 al…

316.118 Pro rata share of S corporation income of nonresident shareholder

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). 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 s…

316.119 Proration of part-year resident’s income between Oregon income and other income; alternative proration for pass-through entity items

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: For the portion of the year in which the taxpayer was a resident of Oregon, the taxpayer’s entire adjusted gross income. For the portion of the year in which the taxpayer was a…

316.122 Separate or joint determination of income for spouses in a marriage

If the federal taxable income of spouses in a marriage (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 OR…

316.124 Determination of adjusted gross income of nonresident partner

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…

316.125 [1953 c.304 §17; repealed by 1969 c.493 §99]

316.127 Income of nonresident from Oregon sources

The adjusted gross income of a nonresident derived from sources within this state is the sum of the following: 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 with sources in this state including (A) any distributive share of partnership income and d…

316.130 Determination of taxable income of full-year nonresident

The taxable income for a full-year nonresident individual is adjusted gross income attributable to sources within this state determined under ORS 316.127, with the modifications (except those provided under subsection (2) of this section) as otherwise provided under this chapter and other laws of this state applicable to personal income taxation, less the de…

316.131 Credit allowed to nonresident for taxes paid to state of residence; exception

A nonresident shall be allowed a credit against the taxes otherwise due under this chapter for income taxes imposed by and paid to the state of residence (not including any preference, alternative or minimum tax) on income taxable under this chapter, subject to the following conditions: The credit shall be allowed only if the state of residence either: Doe…

316.132 [1987 c.682 §3; 1991 c.877 §12; 1991 c.929 §1; repealed by 1993 c.730 §23 (315.208 enacted in lieu of 316.132, 317.114 and 318.160)]

316.133 [1991 c.928 §2; repealed by 1993 c.730 §25 (315.234 enacted in lieu of 316.133 and 317.134)]

316.134 [1987 c.682 §2; 1989 c.625 §10; 1991 c.457 §6; 1991 c.877 §13; repealed by 1993 c.730 §21 (315.204 enacted in lieu of 316.134, 317.135 and 318.175)]

316.135 [1979 c.554 §2; renumbered 316.752]

316.136 [1979 c.554 §3; renumbered 316.758]

316.137 [1979 c.554 §4; renumbered 316.765]

316.138 [1979 c.554 §5; renumbered 316.771]

316.139 [1989 c.924 §2; 1991 c.858 §10; 1991 c.877 §14; repealed by 1993 c.730 §11 (315.138 enacted in lieu of 316.139 and 317.145)]

316.140 [1979 c.512 §12; 1981 c.894 §10; 1991 c.877 §15; repealed by 1993 c.730 §33 (315.354 enacted in lieu of 316.140 and 317.104)]

316.141 [1979 c.512 §15; 1981 c.894 §11; 1989 c.765 §2; 1991 c.457 §7; repealed by 1993 c.730 §35 (315.356 enacted in lieu of 316.141, 316.142 and 317.103)]

316.142 [1979 c.512 §16, 17; 1981 c.894 §12; 1989 c.765 §3; repealed by 1993 c.730 §35 (315.356 enacted in lieu of 316.141, 316.142 and 317.103)]

316.143 [1989 c.893 §2; 1991 c.877 §16; 1995 c.746 §36; 1999 c.459 §1; 2001 c.509 §12; renumbered 315.613 in 2005]

316.144 [1989 c.893 §3; 1991 c.877 §17; 1995 c.746 §38; 1997 c.787 §3; 1999 c.459 §6; 1999 c.582 §10; 2003 c.46 §39; renumbered 315.616 in 2005]

316.145 [1979 c.561 §4; renumbered 316.849]

316.146 [1989 c.893 §6a; 1991 c.877 §18; 1999 c.291 §31; 2003 c.46 §40; renumbered 315.619 in 2005]

ADDITIONAL CREDITS (Costs in Lieu of Nursing Home Care)

316.147 Definitions for ORS 316.147 to 316.149

As used in ORS 316.147 to 316.149, unless the context requires otherwise: “Eligible taxpayer” includes any individual who must pay taxes otherwise imposed by this chapter and: Who pays or incurs expenses for the care of a qualified individual, through a payment method determined by rule of the Department of Revenue; and Who has a household income, for the…

316.148 Credit for expenses in lieu of nursing home care; limitation

A credit against the taxes otherwise due under this chapter shall be allowed to an eligible taxpayer with respect to food, clothing, medical care and transportation expenses paid or incurred by the taxpayer during the taxable year on behalf of a qualified individual in order that the qualified individual is not placed or maintained in a nursing home unnecess…

316.149 Evidence of eligibility for credit

Evidence of payments made or expenses incurred that form the basis of the credit allowed under ORS 316.147 to 316.149 shall be submitted to the Department of Revenue in accordance with any rules adopted by the department relative to the submission of evidence of such payments.

316.150 [1979 c.414 §2; renumbered 316.854]

316.151 [1991 c.859 §4; repealed by 1993 c.730 §27 (315.254 enacted in lieu of 316.151, 317.141 and 318.085)]

316.152 [1991 c.916 §13; repealed by 1997 c.170 §33]

316.153 [1991 c.846 §2; 1995 c.556 §3; 1995 c.559 §54; 1997 c.839 §12; 1999 c.90 §11; 1999 c.676 §27; 2001 c.596 §50; 2001 c.660 §38; 2005 c.826 §1; repealed by 2007 c.843 §89 and 2007 c.906 §30]

316.154 [1989 c.963 §2; 1991 c.766 §3; 1991 c.877 §10; repealed by 1993 c.730 §19 (315.164 enacted in lieu of 316.154 and 317.146)]

316.155 [1991 c.652 §8; repealed by 1993 c.730 §39 (315.604 enacted in lieu of 316.155 and 317.149)]

(Retirement Income)

316.157 Credit for retirement income

In the case of an eligible individual, there shall be allowed as a credit against the taxes otherwise due under this chapter for the taxable year an amount equal to the lesser of the tax liability of the taxpayer or nine percent of net pension income. For purposes of this section: “Eligible individual” means any individual who is receiving pension income a…

316.158 Effect upon ORS 316.157 of determination of invalidity; severability

It is the intent of the Legislative Assembly that no part of ORS 316.157 be the law if any part of ORS 316.157 is held to be invalid or unconstitutional. However, no amended return or payment of additional taxes shall be required for any year prior to the year in which any part of ORS 316.157 is held to be invalid or unconstitutional by a court of last resor…

316.159 Subtraction for certain retirement distributions contributed to retirement plan during period of nonresidency; substantiation rules

In addition to other modifications to federal taxable income contained in this chapter, there shall be subtracted from federal taxable income of a resident individual the distributions received by the individual from a plan or trust described under subsection (2) of this section to the extent that: The distributions consist of contributions made in a tax pe…

316.160 [1953 c.304 §18; 1965 c.26 §3; repealed by 1969 c.493 §99]

COLLECTION OF TAX AT SOURCE OF PAYMENT (Generally)

316.162 Definitions for ORS 316.162 to 316.221

As used in ORS 316.162 to 316.221: “Employer” means: A person who is in relation to another person such that the person may control the work of that other person and direct the manner in which the work is to be done; or An officer or employee of a corporation, or a member or employee of a partnership, who as an officer, employee or member is under a duty …

316.164 When surety bond or letter of credit required of employer; enforcement

Except as provided in subsection (3) of this section, if the Department of Revenue makes the findings required under subsection (2) of this section, the department may require any employer subject to ORS 316.162 to 316.221, except the state or its political subdivisions, to post a surety bond, or irrevocable letter of credit issued by an insured institution,…

316.165 [1953 c.304 §19; repealed by 1969 c.493 §99]

316.167 Withholding of tax required; elective provisions for agricultural employees; liability of supplier of funds to employer for taxes

Every employer at the time of the payment of wages to any employee shall deduct and retain from the wages an amount determined by the Department of Revenue under ORS 316.172. However, in the case of wages paid to an employee whose services to the employer consist solely of labor in connection with the planting, cultivating or harvesting of seasonal agricultu…

316.168 Employer required to file combined quarterly tax report

Except as otherwise provided by law, every employer subject to the provisions of ORS 316.162 to 316.221, 320.550 and 656.506 and ORS chapters 657 and 657B, or a payroll-based tax imposed by a mass transit district and administered by the Department of Revenue under ORS 305.620, shall make and file a combined quarterly tax and assessment report upon a form pr…

316.169 Circumstances in which person other than employer required to withhold tax

If a lender, surety or other person who is not an employer with respect to an employee pays wages directly to the employee, or to an agent on behalf of the employee, the lender, surety or other person shall deduct and retain from the wages, and shall be liable to this state for, an amount equal to the amount required to be withheld from the employee’s wages …

316.170 [1953 c.304 §20; repealed by 1969 c.493 §99]

316.171 Application of tax and report to administration of tax laws

Except as provided in this section and ORS 314.840, 316.168, 316.197, 316.202 and 657.571, the statutes and regulations applicable to each agency, requiring a report and imposing a tax, shall govern as to the audit and examination of returns, periods of limitation, determinations of and notices of deficiencies, assessments, collections, liens, delinquencies,…

316.172 Department to provide deduction and withholding information and determine amount, form and manner of withholding by employers

The Department of Revenue shall specify and disseminate information providing for the deduction and withholding of tax in an amount substantially equivalent to the amount of the tax that each employee will be required to pay under this chapter upon wages or other income. The amount shall be determined based upon wages for a given daily, weekly, biweekly, sem…

316.175 [1953 c.304 §21; repealed by 1969 c.493 §99]

316.177 Reliance on withholding statement or exemption certificate; penalty for statement without reasonable basis

If an employee provides the employer with a withholding statement or exemption certificate under ORS 316.182, the employer may rely upon the instruction provided by the employee. If the employee instructs the employee’s employer to withhold an amount of tax from the employee’s pay or claim exemption from withholding, and as of the time the instruction was ma…

316.180 [1953 c.304 §22; repealed by 1969 c.493 §99]

316.182 Withholding statement of exemption certificate; default withholding rate

The Department of Revenue may require a withholding statement or an exemption certificate to be filed on a form prescribed by the department for purposes of an employee instructing the employee’s employer of the proper amount of tax to withhold from the employee’s pay, or of the employee’s exemption from withholding requirements. A withholding statement or …

316.185 [1953 c.304 §23; 1955 c.129 §1; subsection (5) derived from 1955 c.129 §2; 1965 c.26 §4; repealed by 1969 c.493 §99]

316.187 Amount withheld is in payment of employee’s tax

The amounts deducted from the wages of an employee during any calendar year in accordance with ORS 316.167 and 316.172 shall be considered to be in part payment of the tax on such employee’s income for the taxable year which begins within such calendar year, and the return made by the employer pursuant to ORS 316.202 shall be accepted by the Department of Re…

316.189 Withholding of state income taxes from certain periodic payments

As used in this section: “Commercial annuity” means an annuity, endowment or life insurance contract issued by an insurance company authorized to transact insurance in the State of Oregon. “Department” means the Oregon Department of Revenue. “Designated distribution” means any distribution or payment from or under an employer deferred compensation plan, a…

316.190 [Amended by 1953 c.304 §24; 1955 c.92 §1; subsection (3) derived from 1955 c.92 §2; repealed by 1969 c.493 §99]

316.191 Withholding taxes at time and in manner other than required by federal law; rules

Notwithstanding the provisions of ORS 316.197: When adherence to the federal withholding system creates an undue burden on an employer, the employer may request and the Department of Revenue may permit that taxes be withheld and paid over within a time and in a manner other than that required under federal law. If the department permits the modification of…

316.192 [1969 c.493 §30; 1971 c.333 §2; repealed by 1985 c.602 §7]

316.193 Withholding of state income taxes from federal retired pay for members of uniformed services

The Department of Revenue may enter into an agreement with the appropriate United States agency or instrumentality for the voluntary withholding of state income taxes from the retired pay of members of the uniformed services under the provisions of section 654, Public Law 98-525. The department is hereby authorized to do all acts and comply with any requirem…

316.194 Withholding from lottery prize payments; rules

If a lottery prize payment for a prize is $1,500 or more, and the payment is made to an individual, the Oregon State Lottery Commission shall withhold eight percent of the payment. A payment made to a partnership, estate, trust or corporation shall not be subject to the withholding of tax. The commission shall pay to the Department of Revenue any amounts wi…

316.195 [1953 c.304 §25; repealed by 1969 c.493 §99]

316.196 Withholding of state income taxes from federal retirement pay for civil service annuitant

The Department of Revenue may enter into an agreement with the United States Office of Personnel Management for the voluntary withholding of state income taxes from the retirement pay of United States civil service annuitants under the provisions of section 1705 of Public Law 97-35. The department is hereby authorized to do all acts and comply with any requi…

316.197 Payment to department by employer; interest on delinquent payments

Except as provided under ORS 316.191 or paragraph (b) of this subsection, within the time that each employer is required to pay over taxes withheld for federal income tax purposes for any period, the employer shall pay over to the Department of Revenue or to a financial agent of the department the amounts required to be withheld under ORS 316.167, 316.172 an…

316.198 Payment by electronic funds transfer; phase-in; rules

An employer required to make a combined quarterly tax and assessment payment under ORS 316.168 shall make the payment by means of electronic funds transfer if the employer is required to make federal payroll tax payments electronically. The Department of Revenue may adopt rules that provide exemptions from the requirement that combined quarterly tax and ass…

316.200 [1953 c.304 §26; 1965 c.26 §5; repealed by 1969 c.493 §99]

316.202 Reports by employer; waiver; indication of qualified retirement plan offer; penalty for failure to substantiate report; rules

With each payment made to the Department of Revenue, every employer shall deliver to the department, on a form prescribed by the department showing the total amount of withheld taxes in accordance with ORS 316.167, 316.172 and 320.550, and supply any other information as the department may require. The employer is charged with the duty of advising the employ…

316.205 [1953 c.304 §27; repealed by 1957 c.632 §1 (314.280 enacted in lieu of 316.205 and 317.180)]

316.207 Liability for tax; warrant for collection; conference; appeal

Every employer who deducts and retains any amount under ORS 316.162 to 316.221 and 320.550 shall hold the same in trust for the State of Oregon and for the payment thereof to the Department of Revenue in the manner and at the time provided in ORS 316.162 to 316.221. At any time the employer fails to remit any amount withheld, the department may enforce coll…

316.209 Applicability of ORS 316.162 to 316.221 when services performed by qualified real estate broker or direct seller

For purposes of ORS 316.162 to 316.221, in the case of services performed as a qualified real estate broker, qualified principal real estate broker or as a direct seller: The individual performing the services shall not be treated as an employee; and The person for whom the services are performed shall not be treated as an employer. As used in this sectio…

316.210 [1953 c.304 §28; repealed by 1957 c.632 §1 (314.285 enacted in lieu of 316.210 and 317.185)]

316.212 Applicability of other provisions of tax law; employer as taxpayer

The provisions of the income tax laws in ORS chapters 305 and 314 and this chapter, as to the audit and examination of returns, periods of limitation, determinations of and notices of deficiencies, assessments, collections, liens, delinquencies, claims for refund and refunds, conferences, judicial appeals, stays of collection pending appeal, confidentiality …

316.213 Definitions for ORS 316.213 to 316.219

As used in ORS 316.213 to 316.219: “Duty days” means the days during the tax year from the beginning of the official preseason training period of a professional athletic team through the last game in which the professional athletic team competes or is scheduled to compete during the tax year. “Member of a professional athletic team” means an athlete or oth…

316.214 Withholding requirements for members of professional athletic teams

A person who transacts business in the State of Oregon and who pays wages, salary, bonuses or other taxable income to a member of a professional athletic team, in lieu of the withholding requirements under ORS 316.167, shall withhold eight percent of the income as provided in this section and by rule of the Department of Revenue. The person withholding amou…

316.215 [1969 c.493 §35; 1975 c.672 §6; 1978 c.9 §2; 1985 c.345 §5; repealed by 1987 c.293 §54]

316.216 [1985 c.352 §2; formerly 316.857; renumbered 316.223 in 2003]

316.217 [1969 c.493 §36; repealed by 1987 c.293 §56]

316.218 Annual report of compensation paid to professional athletic team members

In addition to other reports and returns required by law or rule, a person required to withhold compensation under ORS 316.214 shall file an annual report with the Department of Revenue reporting: The total amount of compensation paid during the year to the members of the professional athletic team for which the report is being made. A roster of the member…

316.219 Rules

The Department of Revenue may adopt administrative rules the department determines are necessary to: Implement the duties of the department under ORS 316.213 to 316.219; and Carry out the purposes of ORS 316.213 to 316.221. The rules may include, but are not limited to: Rules providing alternative methodologies for determining the portion of compensation…

316.220 Alternative withholding requirements for qualifying film production compensation; rules; refund prohibition

A person who has obtained a written certificate under section 1, chapter 559, Oregon Laws 2005, who is engaged in a qualifying film production and who pays qualifying compensation shall withhold, in lieu of the state personal income tax withholding requirements under ORS 316.167, 6.2 percent of the qualifying compensation paid. For tax years beginning on or…

316.221 Disposition of withheld amounts

Notwithstanding ORS 316.168 or 316.502, the Department of Revenue shall deposit into a suspense account established under ORS 293.445 amounts that are withheld and paid to the department under ORS 316.220 and that equal the amounts reported to the department by the Oregon Film and Video Office under ORS 316.220 (5). Notwithstanding ORS 314.835 or 314.840 or…

316.222 [1969 c.493 §37; repealed by 1987 c.293 §56]

NONRESIDENT REPORTING

316.223 Alternate methods of filing, reporting and calculating liability for nonresident employer and employee in state temporarily; rules

As used in this section: “Nonresident employer” means an employer who: Has no permanent place of business within this state; and Employs qualifying nonresident employees to perform temporary services in this state. “Qualifying nonresident employee” means an employee or independent contractor who: Is not a resident or part-year resident of this state; P…

316.227 [1969 c.493 §38; repealed by 1987 c.293 §56]

316.255 [1953 c.304 §29; repealed by 1959 c.581 §1 (316.256 enacted in lieu of 316.255)]

316.256 [1959 c.581 §2 (enacted in lieu of 316.255); subsection (4) derived from 1959 c.581 §11; repealed by 1969 c.493 §99]

316.257 [1963 c.435 §4; repealed by 1969 c.493 §99]

316.258 [1961 c.225 §2; repealed by 1969 c.493 §99]

316.260 [1953 c.304 §30; repealed by 1969 c.493 §99]

316.265 [1953 c.304 §31; 1953 c.552 §7; repealed by 1959 c.581 §3 (316.266 enacted in lieu of 316.265)]

316.266 [1959 c.581 §4 (enacted in lieu of 316.265); last sentence derived from 1959 c.581 §11; last sentence of subsection (6) enacted as 1961 c.225 §3; 1969 c.103 §1; repealed by 1969 c.493 §99]

ESTATES AND TRUSTS (Generally)

316.267 Application of chapter to estates and certain trusts

The tax imposed by this chapter on individuals applies to the taxable income of estates and trusts, except for trusts taxed as corporations under ORS chapter 317 or 318.

316.270 [1953 c.304 §32; repealed by 1969 c.493 §99]

316.272 Computation and payment on estate or trust

The taxable income of an estate or trust shall be computed in the same manner as in the case of an individual except as otherwise provided by this chapter. The tax shall be paid by the fiduciary.

316.275 [1953 c.304 §33; 1959 c.591 §19; subsection (2) derived from 1959 c.591 §21; repealed by 1969 c.493 §99]

316.277 Associations taxable as corporations exempt from chapter

An association, trust or other unincorporated organization that is taxable as a corporation for federal income tax purposes is not subject to tax under this chapter, but is taxable as a corporation under ORS chapter 317 or 318, or both, as provided therein. An association, trust or other unincorporated organization that is not taxable as a corporation for f…

316.279 Treatment of business trusts and business trusts income

A domestic or foreign business trust of the type defined in ORS 128.560 is subject to tax under ORS chapter 317 or 318 and amounts distributed by it to its shareholders shall be treated as distributions by a corporation for the purposes of this chapter and ORS chapters 317 and 318, except that distributions that are treated as unrelated business taxable inco…

316.280 [1953 c.304 §34; 1953 c.552 §8; 1955 c.256 §1; paragraph (d) of subsection (6) of 1957 Replacement Part derived from 1955 c.256 §2; repealed by 1959 c.581 §5 (316.281 enacted in lieu of 316.280)]

316.281 [1959 c.581 §6 (enacted in lieu of 316.280); subsection (8) derived from 1959 c.581 §11; 1965 c.99 §1; repealed by 1969 c.493 §99]

(Resident Estates and Trusts)

316.282 Definitions related to trusts and estates; rules

As used in this chapter: “Qualified funeral trust” has the meaning given that term in section 685 of the Internal Revenue Code. “Resident estate” means an estate of which the fiduciary is appointed by an Oregon court or the administration of which is carried on in Oregon. “Resident funeral trust” means a qualified funeral trust that, at the time of the in…

316.285 [1953 c.304 §35; repealed by 1959 c.581 §7 (316.286 enacted in lieu of 316.285)]

316.286 [1959 c.581 §8 (enacted in lieu of 316.285); subsection (6) derived from 1959 c.581 §11; repealed by 1969 c.493 §99]

316.287 “Fiduciary adjustment” defined; shares proportioned; rules

The “fiduciary adjustment” is the net amount of the modifications to federal taxable income described in this chapter (ORS 316.697 being applicable if the estate or trust is a beneficiary of another estate or trust) that relates to its items of income or deduction of an estate or trust. The respective shares of an estate or trust and its beneficiaries (incl…

316.290 [1953 c.304 §36; repealed by 1959 c.581 §9 (316.291 enacted in lieu of 316.290)]

316.291 [1959 c.581 §10 (enacted in lieu of 316.290); subsection (4) derived from 1959 c.581 §11; repealed by 1969 c.493 §99]

316.292 Credit for taxes paid another state

For purposes of this section, an estate or trust is considered a resident of the state which taxes the income of the estate or trust irrespective of whether the income is derived from sources within that state. Notwithstanding the limitations contained in ORS 316.082 and 316.131, if an estate or trust is a resident of this state and also a resident of anoth…

316.295 [1953 c.304 §37; 1965 c.202 §1; repealed by 1969 c.493 §99]

316.296 [1965 c.154 §2; repealed by 1969 c.493 §99]

316.297 [1963 c.343 §2; repealed by 1969 c.493 §99]

316.298 Accumulation distribution credit

A resident beneficiary of a trust whose adjusted gross income includes all or part of an accumulation distribution by such trust, as defined in section 665 of the Internal Revenue Code, shall be allowed a credit against the tax otherwise due under this chapter for all or a proportionate part of any tax, paid by the trust under this chapter for any preceding …

316.299 [1965 c.178 §2; repealed by 1969 c.493 §99]

(Nonresident Estates and Trusts)

316.302 “Nonresident estate or trust” defined

For purposes of this chapter, a “nonresident estate or trust” means an estate or trust that is not a resident.

316.305 [1953 c.304 §38; 1963 c.283 §2; 1963 c.627 §7 (referred and rejected); repealed by 1969 c.493 §99]

316.306 [1955 c.608 §2; repealed by 1969 c.493 §99]

316.307 Income of nonresident estate or trust

For purposes of ORS 316.302 to 316.317: Items of income, gain, loss and deduction mean those derived from or connected with sources in this state. Items of income, gain, loss and deduction entering into the definition of federal distributable net income include such items from another estate or trust of which the first estate or trust is a beneficiary. Th…

316.310 [1953 c.304 §39; 1957 c.18 §1; repealed by 1969 c.493 §99]

316.312 Determination of Oregon share of income

The share of a nonresident estate or trust of items of income, gain, loss and deduction entering into the definition of distributable net income and the share for purpose of ORS 316.127 of a nonresident beneficiary of any estate or trust in estate or trust income, gain, loss and deduction shall be determined as follows: To the amount of items of income, gai…

316.315 [1953 c.304 §10; 1955 c.285 §1; subsection (4) of 1955 Replacement Part derived from 1955 c.285 §2; 1957 c.540 §1; 1959 c.593 §4 (referred and rejected); 1963 c.627 §8 (referred and rejected); 1967 c.127 §1; repealed by 1969 c.493 §99]

316.317 Credit to beneficiary for accumulation distribution

A nonresident beneficiary of a trust whose adjusted gross income derived from sources in this state includes all or part of an accumulation distribution by such trust, as defined in section 665 of the Internal Revenue Code, shall be allowed a credit against the tax otherwise due under this chapter, computed in the same manner and subject to the same limitati…

316.320 [1953 c.304 §41; 1957 c.73 §1; 1965 c.410 §5; repealed by 1969 c.493 §99]

316.325 [1953 c.304 §42; repealed by 1969 c.493 §99]

316.330 [1953 c.304 §43; 1955 c.580 §1; repealed by 1969 c.493 §99]

316.335 [1953 c.304 §44; 1957 s.s. c.15 §3; repealed by 1969 c.493 §99]

316.336 [1961 c.608 §2; repealed by 1969 c.493 §99]

316.337 [1957 c.16 §2; repealed by 1969 c.493 §99]

316.340 [1953 c.304 §45; 1953 c.552 §9; 1955 c.589 §1; repealed by 1969 c.493 §99]

316.342 [1969 c.493 §51; repealed by 1989 c.625 §27 (314.712 enacted in lieu of 316.342)]

316.345 [1953 c.304 §46; 1953 c.552 §10; 1959 c.593 §5 (referred and rejected); 1963 c.627 §9 (referred and rejected); 1965 c.337 §1; repealed by 1969 c.493 §99]

316.347 [1969 c.493 §52; repealed by 1989 c.625 §29 (314.714 enacted in lieu of 316.347)]

316.350 [1953 c.304 §47; repealed by 1969 c.493 §99]

316.352 [1969 c.493 §53; 1975 c.705 §8; repealed by 1989 c.625 §31 (316.124 enacted in lieu of 316.352)]

316.353 [1957 s.s. c.15 §6; subsection (6) derived from 1957 s.s. c.15 §8; 1959 c.92 §1; 1963 c.627 §12 (referred and rejected); 1965 c.410 §6; repealed by 1969 c.493 §99]

316.355 [1953 c.304 §48; repealed by 1969 c.493 §99]

316.360 [1953 c.304 §49; repealed by 1969 c.493 §99]

RETURNS; PAYMENTS; REFUNDS

316.362 Persons required to make returns

An income tax return with respect to the tax imposed by this chapter shall be made by the following: Every resident individual: Who is required to file a federal income tax return for the taxable year; or Who has gross income greater than the sum of: The basic standard deduction allowed under ORS 316.695 (1)(c)(B); Any additional standard deduction allo…

316.363 Returns; instructions

The instructions to the individual state income tax return form required to be filed by this chapter shall: Be written in simple words used in their commonly understood senses that convey meanings clearly and directly; Be written in primarily simple, rather than compound or complex, sentences that are as short as possible; Limit the use of definitions to …

316.364 Flesch Reading Ease Score form instructions

The instructions to an individual state income tax return form shall have a total Flesch Reading Ease Score of 60 or higher. As used in this section: “Flesch Reading Ease Score” means 206.835 - (x + y) where x equals average sentence length multiplied by 1.015 and y equals average word length multiplied by 84.6. “Average sentence length” means the total n…

316.365 [1953 c.304 §50; 1953 c.552 §11; 1957 c.586 §15; 1959 c.593 §6 (referred and rejected); 1961 c.411 §1; 1963 c.627 §13 (referred and rejected); repealed by 1969 c.493 §99]

316.366 Schedule for collection of taxpayer self-reported demographic data

The Department of Revenue shall attach to personal income tax returns required to be filed under this chapter a schedule that allows taxpayers to provide to the department, at the time of filing the return and on a voluntary basis, self-reported identification of the taxpayer’s race and ethnicity. The data collection schedule required under subsection (1) o…

316.367 Joint return by spouses in a marriage

Spouses in a marriage may make a joint return with respect to the tax imposed by this chapter even though one of the spouses has neither gross income nor deductions, except that: No joint return shall be made under this chapter if the spouses are not permitted to file a joint federal income tax return; If the federal income tax liability of either spouse i…

316.368 When joint return liability divided; showing of marital status and hardship; rules

Notwithstanding ORS 316.367, upon petition to the Director of the Department of Revenue by one spouse who has filed a joint tax return, the Department of Revenue may terminate the joint and several liability of each spouse and divide the liability equally between both spouses for the tax, penalty and interest due for the tax year that is the subject of the j…

316.369 Circumstances where one spouse relieved of joint return liability; rules

If a joint return has been made under this chapter for a tax year, a spouse shall be relieved of liability for tax, including interest, penalties and other amounts, for the tax year: If the Internal Revenue Service has made a determination that relieved the spouse of liability for federal taxes for the same tax year under Internal Revenue Code provisions th…

316.370 [1953 c.304 §51; repealed by 1969 c.493 §99]

316.371 [1989 c.625 §12; repealed by 2001 c.660 §9]

316.372 Minor to file return; unpaid tax assessable against parent; when parent may file for minor

As used in this section, “parent” includes an individual who is entitled to the services of a minor by reason of having parental rights and duties with respect to the minor. Except as provided in subsection (3) of this section, a minor shall file a return and include on the return all items of the minor’s income, including income attributable to personal se…

316.375 [1953 c.304 §52; 1957 c.16 §3; repealed by 1969 c.493 §99]

316.377 Individual under disability

An income tax return for an individual who is unable to make a return by reason of minority or other disability shall be made and filed by a duly authorized agent of the individual, guardian, conservator, fiduciary or other person charged with the care of the person or property of the individual other than a receiver in possession of only a part of the indiv…

316.380 [1953 c.304 §53; repealed by 1969 c.493 §99]

316.382 Returns by fiduciaries

An income tax return, in the name of the decedent, for any deceased individual shall be made and filed by a personal representative or other person charged with the care of the property, and this duty extends to any unfiled return prior to decedent’s death. The tax shall be levied upon and collected from the estate. A final return of a decedent shall be due …

316.385 [1963 c.435 §2; repealed by 1969 c.493 §99]

316.387 Election for final tax determination by personal representative; period for assessment of deficiency; discharge of personal representative from personal liability for tax

In the case of any tax for which a return is required under this chapter from a decedent or a decedent’s estate during the period of administration, the Department of Revenue may give notice of deficiency as described in ORS 305.265 within 18 months after a written election for a final tax determination is made by the personal representative, administrator, …

316.390 [1963 c.435 §3; repealed by 1969 c.493 §99]

316.392 Notice of qualification of receiver and others

Every receiver, trustee in bankruptcy, assignee for benefit of creditors or other like fiduciary, shall give notice of qualification as such to the Department of Revenue, as may be required by regulation.

316.397 [1969 c.493 §61; 1971 c.332 §1; 1975 c.672 §7; 1978 c.9 §3; 1981 c.801 §5; repealed by 1983 c.684 §24]

316.402 [1969 c.493 §62; repealed by 1971 c.332 §2]

316.405 [1975 c.410 §2; 1967 c.110 §1; repealed by 1969 c.493 §99]

316.406 [1959 c.591 §21; repealed by 1965 c.410 §7]

316.407 [1969 c.493 §63; 1971 c.354 §6; 1975 c.593 §18; 1979 c.470 §1; 1980 c.7 §23; repealed by 1989 c.625 §60]

316.408 [1959 c.591 §2; 1963 c.388 §3; 1963 c.627 §14 (referred and rejected); repealed by 1965 c.410 §7]

316.410 [1959 c.591 §3; repealed by 1965 c.410 §7]

316.411 [1963 c.388 §§2,4; repealed by 1965 c.410 §7]

316.412 [1959 c.591 §4; repealed by 1963 c.627 §23 (referred and rejected); repealed by 1965 c.410 §7]

316.414 [1959 c.591 §5; repealed by 1963 c.627 §23 (referred and rejected); repealed by 1965 c.410 §7]

316.415 [1965 c.410 §3; repealed by 1969 c.493 §99]

316.417 [1969 c.493 §64; 1993 c.44 §3; repealed by 2025 c.371 §9]

316.420 [1959 c.591 §6; repealed by 1963 c.627 §23 (referred and rejected); repealed by 1965 c.410 §7]

316.422 [1969 c.493 §65; repealed by 1971 c.354 §7]

316.425 [1965 c.410 §4; repealed by 1969 c.493 §99]

316.426 [1959 c.591 §7; repealed by 1963 c.627 §23 (referred and rejected); repealed by 1965 c.410 §7]

316.430 [1959 c.591 §8; repealed by 1963 c.627 §23 (referred and rejected); repealed by 1965 c.410 §7]

316.432 [1959 c.591 §9; repealed by 1963 c.627 §23 (referred and rejected); repealed by 1965 c.410 §7]

316.434 [1959 c.591 §10; repealed by 1963 c.627 §23 (referred and rejected); repealed by 1965 c.410 §7]

316.436 [1959 c.591 §11; repealed by 1963 c.627 §23 (referred and rejected); repealed by 1965 c.410 §7]

316.438 [1959 c.591 §12; repealed by 1963 c.627 §23 (referred and rejected); repealed by 1965 c.410 §7]

316.440 [1959 c.591 §13; repealed by 1965 c.410 §7]

316.442 [1959 c.591 §14; repealed by 1965 c.410 §7]

316.444 [1959 c.591 §15; repealed by 1965 c.410 §7]

316.446 [1959 c.591 §16; repealed by 1965 c.410 §7]

316.448 [1959 c.591 §17; repealed by 1965 c.410 §7]

316.450 [1959 c.591 §18; repealed by 1965 c.410 §7]

316.454 [1965 c.248 §3; repealed by 1969 c.493 §99]

316.455 [1953 c.304 §54; 1953 c.552 §12; 1955 c.596 §2; 1957 c.586 §2; 1957 s.s. c.15 §4; 1963 c.486 §1; 1963 c.627 §15 (referred and rejected); 1965 c.248 §1; repealed by 1969 c.493 §99]

316.457 Department may require copy of federal return

If directed to do so by the Department of Revenue, through regulations or instructions upon the state income tax return form, every taxpayer required by this chapter to file an income tax return with the department shall also file with such return a true copy of the federal tax return filed by the taxpayer pursuant to the requirements of the Internal Revenue…

316.462 Change of election

Any election expressly authorized by this chapter may be changed on such terms and conditions as the Department of Revenue may prescribe by regulation.

316.467 [1969 c.493 §68; 1985 c.602 §14; renumbered 314.724 in 1989]

316.472 Tax treatment of common trust fund; information return required

The tax treatment of common trust funds and participants therein, under this chapter, is governed by the provisions of the Internal Revenue Code. Every financial institution or trust company maintaining a common trust fund shall make a return to the Department of Revenue for each tax year, stating specifically, with respect to such fund, the items of gross …

316.475 [Formerly 316.080; 1961 c.218 §1; repealed by 1969 c.493 §99]

316.480 [1967 c.592 §7; 1969 c.340 §2; repealed by 1969 c.493 §99; see 316.097]

316.485 [1981 c.411 §1; 1989 c.987 §18; repealed by 1995 c.79 §166]

316.487 [1987 c.902 §7; repealed by 1993 c.797 §33]

316.490 [1987 c.902 §2; 1989 c.987 §25; 2007 c.822 §16; repealed by 2021 c.8 §14]

316.491 [2005 c.836 §11; 2007 c.822 §17; repealed by 2021 c.8 §14]

316.493 [1987 c.771 §2; 1989 c.987 §19; 1999 c.1084 §40; 2007 c.822 §18; repealed by 2021 c.8 §14]

316.495 [1989 c.987 §32; repealed by 1995 c.79 §166]

DISTRIBUTION OF REVENUE

316.502 Distribution of revenue to General Fund; working balance; refundable credit payments

The net revenue from the tax imposed by this chapter, after deducting refunds and amounts described in ORS 285B.630 and 285C.635, shall be paid over to the State Treasurer and held in the General Fund as miscellaneous receipts available generally to meet any expense or obligation of the State of Oregon lawfully incurred. A working balance of unreceipted rev…

316.505 [1953 c.304 §55; 1953 c.552 §13; 1955 c.596 §3; subsection (3) derived from 1955 c.596 §4; 1957 c.586 §3; 1963 c.627 §16 (referred and rejected); repealed by 1969 c.493 §99]

316.510 [1953 c.304 §56; 1957 c.586 §4; repealed by 1969 c.493 §99]

316.512 [1965 c.592 §2; repealed by 1969 c.493 §99]

316.513 [1965 c.592 §3; repealed by 1969 c.493 §99]

316.515 [1953 c.304 §57; repealed by 1969 c.493 §99]

316.520 [1953 c.304 §58; repealed by 1957 c.632 §1 (314.355 enacted in lieu of 316.520)]

316.525 [1953 c.304 §59; repealed by 1969 c.493 §99]

316.530 [1953 c.304 §60; repealed by 1969 c.493 §99]

316.535 [1953 c.304 §61; repealed by 1957 c.632 §1 (314.360 enacted in lieu of 316.535)]

316.540 [1953 c.304 §62; repealed by 1969 c.493 §99]

316.545 [1953 c.304 §63; repealed by 1957 c.632 §1 (314.385 enacted in lieu of 316.545 and 317.355)]

316.550 [1953 c.304 §64; repealed by 1957 c.632 §1 (314.365 enacted in lieu of 316.550 and 317.365)]

316.555 [1953 c.304 §65; repealed by 1957 c.632 §1 (314.370 enacted in lieu of 316.555)]

PAYMENT OF ESTIMATED TAXES

316.557 Definition of “estimated tax.”

As used in ORS 316.557 to 316.589, “estimated tax” means the amount of income tax imposed under this chapter for the taxable year, as estimated by the individual, minus the sum of any credits as estimated by the individual against tax provided by this chapter.

316.559 Application of ORS 316.557 to 316.589 to estates and trusts

ORS 316.557 to 316.589 do not apply to an estate or trust.

316.560 [1953 c.304 §66; repealed by 1957 c.632 §1 (314.295 enacted in lieu of 316.560 and 317.375)]

316.563 When declaration of estimated tax required; exception; effect of short tax year; content; amendment; rules

Except as provided in subsection (2) of this section, every individual shall declare an estimated tax for the taxable year if: The gross income for the taxable year can be reasonably expected to include more than $1,000 from sources other than wages as defined in ORS 316.162 (2); or The gross income for the taxable year can be reasonably expected to exceed…

316.565 [1953 c.304 §67; repealed by 1957 c.632 §1 (314.380 enacted in lieu of 316.565 and 317.380)]

316.567 Joint declaration of spouses in a marriage; liability; effect on nonjoint returns; rules

Except as provided in subsection (2) of this section, spouses in a marriage may make a single declaration jointly under ORS 316.557 to 316.589. The liability of the spouses making such a declaration shall be joint and several. Spouses may not make a joint declaration: If either spouse is a nonresident noncitizen; If the spouses are separated under a judgm…

316.569 When declaration required of nonresident

No declaration shall be required of a nonresident individual under ORS 316.557 to 316.589 unless: Withholding under this chapter is made applicable to the wages, as defined in ORS 316.162, of the nonresident individual; or The nonresident individual has income, other than compensation for personal services subject to deduction and withholding under ORS 316…

316.570 [1953 c.304 §68; 1957 c.586 §16; 1959 c.632 §1; 1961 c.504 §2; 1969 c.166 §6; repealed by 1969 c.493 §99]

316.573 When individual not required to file declaration

An individual need not file a declaration of estimated tax required by ORS 316.563 (1), if: The estimated gross income of the individual from farming or fishing, including oyster farming, for the taxable year is at least two-thirds of the total estimated gross income from all sources for the taxable year; or The gross income of the individual from farming …

316.575 [1953 c.304 §69; 1955 c.595 §1; repealed by 1957 c.586 §19]

316.577 Date of filing declaration

Except as provided in ORS 316.573, declarations of estimated tax required by ORS 316.563 (1) from individuals who are neither farmers nor fishermen for the purpose of that section shall be filed on or before April 18 of the taxable year or the due date of the return for the prior taxable year without regard to extensions, whichever is earlier, except that if…

316.579 Amount of estimated tax to be paid with declaration; installment schedule; prepayment of installment

An individual required to make a declaration of estimated tax under ORS 316.563 shall pay the estimated tax as provided in subsections (2) to (6) of this section. If the declaration is filed on or before April 18 of the taxable year, the estimated tax shall be paid in four equal installments. The first installment shall be paid at the time of the filing of …

316.580 [1953 c.304 §70; 1955 c.595 §2; 1957 c.586 §17; renumbered 316.751]

316.583 Effect of payment of estimated tax or installment; credit for overpayment of prior year taxes; rules

Payment of the estimated income tax or any installment shall be considered payment on account of the income taxes imposed by this chapter for the taxable year. If there is an overpayment of income tax for a taxable year, the taxpayer may elect on a timely filed return for that taxable year (determined with regard to any extension of time for filing) to have…

316.585 [1953 c.304 §71; 1955 c.595 §3; 1957 c.586 §18; renumbered 316.770]

316.587 Effect of underpayment of estimated tax; computation of underpayment; interest; when not imposed

Except as provided in subsection (5) of this section, if an individual makes an underpayment of estimated tax, interest shall accrue at the rate established under ORS 305.220 on the amount underpaid for the period the estimated tax or any installment remains unpaid. The penalty provisions contained in ORS chapter 314 for underpayment of tax shall not apply t…

316.588 When interest on underpayment not imposed

Interest accruing under ORS 316.587 shall not be imposed for any taxable year if the tax shown on the return for the taxable year (or, if no return is filed, the tax), minus the sum of any credits allowable for purposes of this chapter, including the credit allowable under ORS 316.187, is less than the amount established by rule adopted under ORS 316.563 (2)…

316.589 Application to short tax years and tax years beginning on other than January 1

The application of ORS 316.557 to 316.589 to taxable years of less than 12 months shall be in accordance with rules adopted by the Department of Revenue. In the application of ORS 316.557 to 316.589 to a taxable year beginning on any date other than January 1 there shall be substituted, for the months specified in ORS 316.557 to 316.589, the months which co…

316.590 [1953 c.304 §72; repealed by 1969 c.493 §99]

316.605 [1953 c.304 §73; 1955 c.590 §1; repealed by 1957 c.632 §1 (314.405 enacted in lieu of 316.605 and 317.405)]

316.610 [1953 c.304 §74; 1953 c.552 §14; 1957 c.17 §1; repealed by 1957 c.632 §1 (314.410 enacted in lieu of 316.610 and 317.410)]

316.615 [1953 c.304 §75; 1953 c.552 §15; 1955 c.583 §1; 1957 c.23 §1; repealed by 1957 c.632 §1 (314.415 enacted in lieu of 316.615 and 317.415)]

316.620 [1953 c.304 §76; 1955 c.355 §1; repealed by 1957 c.632 §1 (314.420 enacted in lieu of 316.620, 317.370 and 317.420)]

316.625 [1953 c.304 §77; repealed by 1957 c.632 §1 (314.425 enacted in lieu of 316.625 and 317.425)]

316.630 [1953 c.304 §78; repealed by 1957 c.632 §1 (314.430 enacted in lieu of 316.630 and 317.430)]

316.635 [1953 c.304 §79; repealed by 1957 c.632 §1 (314.435 enacted in lieu of 316.635 and 317.435)]

316.640 [1953 c.304 §80; repealed by 1957 c.632 §1 (314.440 enacted in lieu of 316.640, 317.440 and 317.445)]

316.645 [1953 c.304 §81; 1961 c.504 §3; repealed by 1969 c.166 §8 and 1969 c.493 §99]

316.650 [1953 c.304 §82; 1953 c.552 §16; repealed by 1957 c.632 §1 (314.445 enacted in lieu of 316.650 and 317.455)]

316.655 [1953 c.304 §83; 1953 c.552 §17; repealed by 1957 c.632 §1 (subsections (1) and (2) of 314.450 enacted in lieu of 316.655 and 317.460)]

316.660 [1953 c.304 §84; repealed by 1957 c.632 §1 (314.455 enacted in lieu of 316.660 and 317.465)]

316.665 [1953 c.304 §85; 1953 c.552 §18; 1955 c.588 §1; repealed by 1957 c.632 §1 (314.460 enacted in lieu of 316.665 and 317.470)]

316.670 [1953 c.304 §86; repealed by 1957 c.632 §1 (314.465 enacted in lieu of 316.670 and 317.475)]

316.675 [1953 c.304 §87; 1953 c.552 §19; repealed by 1957 c.632 §1 (314.470 enacted in lieu of 316.675 and 317.480)]

MODIFICATIONS OF TAXABLE INCOME (Generally)

316.680 Modification of taxable income

There shall be subtracted from federal taxable income: The interest or dividends on obligations of the United States and its territories and possessions or of any authority, commission or instrumentality of the United States to the extent includable in gross income for federal income tax purposes but exempt from state income taxes under the laws of the Unit…

316.681 Interest or dividends to benefit self-employed or individual retirement accounts

ORS 316.680 (1)(a) shall apply to the interest or dividends described under ORS 316.680 (1)(a) to the extent such interest or dividends are includable in arriving at federal taxable income as distributions from plans to benefit the self-employed or from individual retirement accounts described under sections 401 to 408A of the Internal Revenue Code.

316.683 State exempt-interest dividends; rules

A regulated investment company, or a pool of assets managed by a fiduciary, including a financial institution, shall be qualified to pay state exempt-interest dividends, as defined in subsection (2) of this section, to its shareholders or beneficiaries. The term “state exempt-interest dividend” means any dividend or part thereof (other than a capital gain d…

316.685 Federal income tax deductions; accrual method of accounting required; adjustment for federal earned income credit

The federal income tax deduction provided by ORS 316.680 shall be as reported on the taxpayer’s original return and shall be computed on the accrual method of accounting. Any adjustments to the federal income tax deduction now or hereafter required by Oregon law, including but not limited to the elimination of the self-employment tax, also shall be computed …

316.687 Amount in excess of standard deduction for child, if child’s income included on parent’s federal return; limitation

There shall be added to federal taxable income of a parent who makes an election under section 1(g)(7)(B) of the Internal Revenue Code any amount in excess of the standard deduction allowed for a child under ORS 316.695 (8) but not in excess of the amount described in section 1(g)(7)(B)(i) of the Internal Revenue Code (twice the amount in effect for the taxa…

316.690 Foreign income taxes

Subject to subsection (2) of this section, in addition to other modifications provided in this chapter, and if a taxpayer elects to take foreign income taxes imposed for the taxable year by a foreign country as a credit on the federal income tax return or does not itemize personal deductions on the federal income tax return, there shall be subtracted from fe…

316.693 Subtraction for medical expenses of elderly individuals

In addition to the other modifications to federal taxable income contained in this chapter, there shall be subtracted from federal taxable income the amount paid for medical care of an individual and not compensated for by insurance or otherwise, as described in section 213 of the Internal Revenue Code, if the individual meets the age requirement for the tax…

316.695 Additional modifications of taxable income; rules

In addition to the modifications to federal taxable income contained in this chapter, there shall be added to or subtracted from federal taxable income: If, in computing federal income tax for a tax year, the taxpayer deducted itemized deductions, as defined in section 63(d) of the Internal Revenue Code, the taxpayer shall add the amount of itemized deducti…

316.697 Fiduciary adjustment

There shall be added to or subtracted from federal taxable income, as the case may be, the taxpayer’s share of the fiduciary adjustment determined under ORS 316.287.

316.698 Subtraction for qualifying film production labor rebates

If the amount received as a labor rebate under section 1, chapter 559, Oregon Laws 2005, is included in federal taxable income for federal tax purposes, then the amount shall be subtracted from federal taxable income for purposes of determining Oregon taxable income under this chapter.

316.699 Subtraction for contributions to savings network account for higher education or ABLE account; limitations; carryforward

There shall be subtracted from federal taxable income the amount contributed to: A savings network account for higher education established under ORS 178.300 to 178.360; or An ABLE account established under ORS 178.380 and rules adopted by the Oregon 529 Savings Board, when the contribution is made before the designated beneficiary of the account attains 2…

316.701 [1983 c.162 §61; repealed by 1987 c.293 §70]

316.705 [1953 c.304 §88; repealed by 1957 c.632 §1 (314.805 enacted in lieu of 316.705 and 317.505)]

316.706 [1957 c.586 §6; 1959 c.76 §1; 1961 c.506 §2; 1961 c.623 §1; repealed by 1969 c.493 §99]

316.707 Computation of depreciation of property under federal law; applicability

To the extent that the amount allowed as a deduction under section 168 of the Internal Revenue Code (Accelerated Cost Recovery System) exceeds, or is less than, the amount that would be allowed as a deduction for depreciation for the property under the federal Internal Revenue Code as amended and in effect on December 31, 1980, the difference shall be added …

316.710 [1953 c.304 §89; repealed by 1957 c.632 §1 (subsections (2), (3) and (4) of 306.040 enacted in lieu of 316.710)]

316.711 [1957 c.586 §7; 1959 c.593 §7 (referred and rejected); 1961 c.623 §2; repealed by 1969 c.493 §99]

316.714 [1957 c.586 §7; 1959 c.593 §8 (referred and rejected); 1963 c.627 §17 (referred and rejected); repealed by 1969 c.493 §99]

316.715 [1953 c.304 §90; repealed by 1957 c.632 §1 (314.810 enacted in lieu of 316.715)]

316.716 Differences in basis on federal and state return; application of federal credit

Upon the taxable sale, exchange or disposition of any asset in a tax year beginning on or after January 1, 1983, federal taxable income shall be increased or decreased by an amount which will reflect one or more of the following: The difference in basis which results from the difference in depreciation or cost recovery, or expense claimed under section 179 …

316.718 [1989 c.625 §6; repealed by 1991 c.457 §24]

316.720 [1953 c.304 §91; repealed by 1957 c.632 §1 (314.815 enacted in lieu of 316.720 and 317.505)]

316.721 [1957 c.586 §12; repealed by 1969 c.493 §99]

316.723 [1983 c.162 §70; 1985 c.802 §15; 1987 c.293 §26; 1991 c.457 §7e; repealed by 1995 c.556 §43]

316.725 [1953 c.304 §92; repealed by 1957 c.632 §1 (314.820 enacted in lieu of 316.725 and 317.520)]

316.729 [1983 c.162 §73; 1995 c.556 §10; repealed by 2003 c.46 §43 and 2003 c.77 §26]

316.730 [1953 c.304 §93; repealed by 1957 c.632 §1 (314.825 enacted in lieu of 316.730 and 317.525)]

316.731 [1957 c.586 §13; repealed by 1969 c.493 §99]

316.735 [1953 c.304 §94; repealed by 1957 c.632 §1 (314.830 enacted in lieu of 316.735 and 317.530)]

316.737 Amount specially taxed under federal law to be included in computation of state taxable income

If a taxpayer has taken a deduction to arrive at federal taxable income for the purpose of having that income taxed in a manner different from the taxation of federal taxable income, the amount which was deducted and specially taxed shall be added to federal taxable income in the computation of state taxable income. However, if any portion of the amount adde…

316.738 Modification of taxable income when deferred gain is recognized as result of out-of-state disposition of property

If gain is deferred upon the voluntary or involuntary disposition of property in an exchange that qualifies for deferral under section 1031 or 1033 of the Internal Revenue Code, and the property acquired in the exchange has a situs outside of this state, upon the sale or other disposition of the acquired property in a transaction in which gain or loss is rec…

316.739 Deferral of deduction for certain amounts deductible under federal law

There shall be added to federal taxable income for Oregon tax purposes the difference between the amount allowable as a deduction under section 108 of the Internal Revenue Code as applicable to the tax year of the taxpayer and the amount allowable as a deduction under section 108 of the Internal Revenue Code as amended and in effect on December 31, 2008, as …

316.740 [1953 c.304 §95; 1957 c.75 §1; repealed by 1957 c.632 §1 (314.835 enacted in lieu of 316.740 and 317.535)]

316.741 [1957 c.586 §8; repealed by 1969 c.493 §99]

316.742 [1991 c.457 §7g; 1995 c.556 §11; repealed by 1997 c.839 §69]

316.743 [1997 c.824 §2; repealed by 2001 c.660 §55]

316.744 Cash payments for energy conservation

Any amount received as a cash payment for energy conservation measures under ORS 456.594 to 456.599 and 469.631 to 469.687 is exempt from the tax imposed under this chapter.

316.745 [1953 c.304 §96; repealed by 1957 c.632 §1 (314.840 enacted in lieu of 316.745 and 317.540)]

316.746 [1991 c.641 §4; repealed by 1999 c.880 §2]

316.747 Contribution to charitable organization subject to disqualification order

Except as provided in subsection (2) of this section, in addition to any other modification to federal taxable income under this chapter there shall be added to federal taxable income the amount of any charitable contribution that: Is allowed as a deduction for federal tax purposes for the tax year under section 170 of the Internal Revenue Code; Is attribu…

316.749 Dividend from domestic international sales corporation

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 dividend received by the taxpayer on or after January 1, 2013, from a domestic international sales corporation formed on or before January 1, 2014, and subject to the tax imposed under ORS 317.283…

316.750 [1953 c.304 §97; repealed by 1957 c.632 §1 (314.845 enacted in lieu of 316.750 and 317.545)]

316.751 [Formerly 316.580; repealed by 1969 c.493 §99]

(Additional Personal Exemption Credits)

316.752 Definitions for ORS 316.752 to 316.771

For purposes of ORS 316.752 to 316.771: A person has a “severe disability” if the person: Has lost the use of one or more lower extremities; Has lost the use of both hands; Is disabled as that term is defined in section 72(m)(7) of the Internal Revenue Code, to a degree that the person is unable to engage in any substantial gainful activity; or Has a ph…

316.755 [1953 c.304 §98; repealed by 1957 c.632 §1 (314.850 enacted in lieu of 316.755)]

316.758 Additional personal exemption credit for persons with severe disabilities; income limitation

In addition to the personal exemption credit allowed by this chapter for state personal income tax purposes, there shall be allowed an additional personal exemption credit for the taxpayer if the taxpayer: Has a severe disability at the close of the taxable year; and Has federal adjusted gross income that does not exceed $100,000 for the tax year. The amo…

316.760 [1953 c.304 §99; repealed by 1957 c.632 §1 (314.855 enacted in lieu of 316.760 and 317.550)]

316.761 [1957 c.586 §9; 1963 c.627 §18 (referred and rejected); 1963 s.s. c.3 §1; repealed by 1969 c.493 §99]

316.765 Additional personal exemption credit for spouse of person with severe disability; conditions

An additional personal exemption credit in the same amount as allowed under ORS 316.758 for a taxpayer with a severe disability shall be allowed for the spouse of the taxpayer if a separate return is made by the taxpayer, and if the spouse: Has a severe disability; Has no gross income for the calendar year in which the taxable year of the taxpayer begins; …

316.770 [Formerly 316.585; 1963 c.83 §1; repealed by 1969 c.493 §99]

316.771 Proof of status for exemption credit

Each person qualifying for the additional personal exemption credit allowed in ORS 316.758 and 316.765 may claim the credit on the personal income tax return. However, the claim shall be substantiated by a letter from a licensed physician describing the nature and extent of the physical disability. The requirement for substantiation may be waived partially, …

316.775 [1957 c.586 §10; 1959 c.234 §3; repealed by 1969 c.493 §99]

(Exemptions)

316.777 Income derived from sources within federally recognized Indian country exempt from tax

Any income derived from sources within the boundaries of federally recognized Indian country in Oregon by any enrolled member of a federally recognized American Indian tribe residing in federally recognized Indian country in Oregon at the time the income is earned is exempt from tax under this chapter. An extract from the tribal rolls or other documentary p…

316.778 Small city business development exemption; rules

For each tax year in which a business firm receives an annual certification under ORS 285C.506, the income of the taxpayer apportionable to the certified facility of the business firm shall be exempt from tax under this chapter. The income of a resident taxpayer that is exempt under this section shall be determined by: Multiplying the federal taxable incom…

316.780 [1957 c.586 §11; repealed by 1969 c.493 §99]

316.783 Amounts received for condemnation of Indian tribal lands

Amounts received as condemnation awards as a result of condemnation by the federal government of Indian tribal lands are exempt from the tax imposed by this chapter.

316.785 Income derived from exercise of Indian fishing rights

Income derived from the exercise of rights of any Indian tribe to fish secured by treaty, Executive order or Act of Congress is exempt from the tax imposed by this chapter if section 7873 of the Internal Revenue Code does not permit a like federal tax to be imposed on such income.

316.787 Payments to Japanese and Aleuts under Civil Liberties Act of 1988

Amounts paid to an eligible individual (persons of Japanese ancestry and Aleut civilian residents of the Pribilof Islands and the Aleutian Islands) under section 1989b-4, Title I, or 1989c-5, Title II, of the Civil Liberties Act of 1988 (P.L. 100-383) shall be treated for purposes of this chapter as damages for human suffering and shall be exempt from the ta…

316.788 [Formerly 316.051; repealed by 1987 c.293 §70]

316.789 [1991 c.177 §2; repealed by 2013 c.194 §4]

316.790 [1953 c.304 §116; 1957 c.528 §3; repealed by 1969 c.493 §99]

316.791 [2005 c.519 §12; 2007 c.605 §1; repealed by 2013 c.194 §4]

316.792 Military pay

As used in this section: “Armed Forces of the United States” means all regular and reserve components of the United States Army, Navy, Air Force, Marine Corps, Coast Guard and Space Force and other uniformed services under the orders of the President of the United States. “Military pay” means pay for active duty, inactive duty, training and reserve compone…

316.794 [Formerly 316.052; repealed by 1987 c.293 §70]

316.795 Exemption for payments to tenants of manufactured dwelling parks upon termination of rental agreement

Amounts received by a taxpayer under ORS 90.645 (1) are exempt from the taxes imposed by this chapter. (First-time Home Buyer Savings Accounts)

316.796 Definitions

As used in ORS 316.796 to 316.808: “Account holder” means an individual who establishes a first-time home buyer savings account. “Allowable closing costs” means disbursements listed in a settlement statement for the purchase of a single family residence by an account holder or a qualified beneficiary. “Eligible costs” means the down payment and allowable …

316.797 First-time home buyer savings account; restrictions

An individual may create a first-time home buyer savings account with a financial institution to be used to pay or reimburse eligible costs related to the purchase of a single family residence by an account holder or qualified beneficiary. An individual may jointly own a first-time home buyer savings account with another person if the joint account holders …

316.798 Subtraction for contributions; exemption for earnings; limitations

Subject to ORS 316.800, and 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 funds contributed by an account holder to the account holder’s first-time home buyer savings account during the tax year, not to exceed $5,000 for an account holder who fil…

316.799 [Formerly 316.053; repealed by 1987 c.293 §70]

316.800 Limits phased out based on income applicable to subtraction or exemption

The limits applicable to a subtraction from federal taxable income and an exemption allowed under ORS 316.798 are: $10,000 if reported on a joint income tax return, or $5,000 for all others, if the federal adjusted gross income of the taxpayer for the tax year is less than $149,000 or, if reported on other than a joint return, less than $104,000. $8,000 if…

316.801 Addition for certain amounts withdrawn; penalty; exceptions

There shall be added to federal taxable income the amount of funds a taxpayer withdraws from a first-time home buyer savings account established under ORS 316.797, if: Those funds were used for a purpose other than eligible costs; In this tax year or a previous tax year, those funds were subtracted or exempted from federal taxable income under ORS 316.798;…

316.802 [1969 c.493 §71; renumbered 316.970]

316.803 Obligations of financial institution; provision of certificates to account holders

On or before January 31 of each calendar year, for calendar years beginning before January 1, 2025, a financial institution at which an account holder has created a first-time home buyer savings account shall provide to the account holder a certificate containing the following information: The date when the account was created; The name of the account hold…

316.805 [1953 c.304 §100; repealed by 1969 c.493 §99]

316.806 [Formerly 316.057; renumbered 316.811 in 2025]

316.807 Taxpayer to maintain records

For each tax year in which a taxpayer claims a subtraction or exemption under ORS 316.798, the taxpayer shall maintain the records described in subsection (2) of this section, and any other records as required by the Department of Revenue under ORS 316.796 to 316.808. A taxpayer shall maintain, and shall furnish to the department upon the request of the dep…

316.808 Rules; financial institutions not subject to obligations related to first-time home buyer savings accounts; informational materials

The Department of Revenue may adopt rules to administer ORS 316.796 to 316.808. Rules adopted under this section may not impose administrative, reporting or other obligations or requirements on financial institutions related to first-time home buyer savings accounts. The department may prepare and distribute informational materials regarding the first-time …

316.810 [1953 c.304 §101; repealed by 1969 c.493 §99]

(Additional Modifications of Taxable Income)

316.811 Definitions for ORS 316.811 to 316.818

As used in ORS 316.811 to 316.818: “Construction job site” means the specific location of a construction project. “Construction project” means the construction, alteration, repair, improvement, moving or demolition of a structure and appurtenances thereto. “Construction worker” means a person who is a member of a recognized construction trade, craft, unio…

316.812 Certain traveling expenses

In addition to the modifications to federal taxable income contained in this chapter, there shall be subtracted from federal taxable income traveling expenses, as defined in ORS 316.811, incurred by a construction worker during the first year of continuous employment on the same construction job site. However, if employment on the same construction job site …

316.815 [1953 c.304 §102; 1955 c.582 §1; repealed by 1969 c.493 §99]

316.818 Proof of expenses

The modification to federal taxable income by ORS 316.812 shall be substantiated by any proof required by the Department of Revenue by rule. The requirement for substantiation may be waived partially, conditionally or absolutely, as provided under ORS 315.063.

316.820 [1953 c.304 §103; 1963 c.627 §19 (referred and rejected); repealed by 1969 c.493 §99]

316.821 Federal election to deduct sales taxes; addition for state purposes

A taxpayer that elects to deduct state and local sales taxes under section 164(b)(5) of the Internal Revenue Code for federal tax purposes must make the same election for purposes of the tax imposed by this chapter. A taxpayer that elects to deduct state and local sales taxes under section 164(b)(5) of the Internal Revenue Code for federal tax purposes shal…

316.824 Definitions for ORS 316.824 and 316.832

As used in ORS 316.824 and 316.832: “Forest products” means any merchantable form including but not limited to logs, poles and piling, into which a fallen tree may be cut before it undergoes manufacturing. “Logger” means a person commonly known as a faller or bucker who furnishes and maintains personal equipment in the commercial harvesting of forest produ…

316.825 [1953 c.304 §104; repealed by 1969 c.493 §99]

316.827 [1957 s.s. c.15 §7; last sentence derived from 1957 s.s. c.15 §8; 1963 c.627 §20 (referred and rejected); repealed by 1969 c.493 §99]

316.830 [1953 c.304 §105; repealed by 1969 c.493 §99]

316.832 Travel expenses for loggers

In addition to the modifications to federal taxable income contained in this chapter, there shall be subtracted from federal taxable income traveling expenses incurred by a logger in job-related travel. The modification to federal taxable income by subsection (1) of this section shall be substantiated by any proof required by the Department of Revenue by ru…

316.834 [1991 c.863 §33; repealed by 2009 c.33 §23]

316.835 [1953 c.304 §106; repealed by 1969 c.493 §99]

316.836 Qualified production activities income

A taxpayer that is allowed a deduction for qualified production activities income under section 199 of the Internal Revenue Code for federal tax purposes shall add the amount deducted to federal taxable income for purposes of the tax imposed by this chapter.

316.837 Addition for federal prescription drug plan subsidies excluded for federal tax purposes

A taxpayer that is allowed an exclusion from gross income under section 139A of the Internal Revenue Code for federal tax purposes shall add the amount excluded to federal taxable income for purposes of the tax imposed by this chapter.

316.838 Art object donation

As used in this section, “art object” means a painting, sculpture, photograph, graphic or craft art, industrial design, costume or fashion design, tape or sound recording or film. A subtraction from federal taxable income is allowed for a charitable contribution of an art object, if the art object has not been previously sold or otherwise transferred by its…

316.840 [1953 c.304 §107; 1961 c.506 §3; repealed by 1969 c.493 §99]

316.844 Special computation of gain or loss where farm use value used

Notwithstanding any other provision of this chapter, when gain or loss that is included in federal taxable income is derived from the disposition of property and the gain, loss or basis computed with respect to that disposition involves, in whole or in part, property that was valued at the property’s value for farm use or as forestland under ORS 118.155 (199…

316.845 Exception to ORS 316.844

ORS 316.844 shall not apply in any case in which a carryover basis for certain property acquired from a decedent dying after December 31, 1976, is provided by section 1014 of the Internal Revenue Code.

316.846 Scholarship awards used for housing expenses

There shall be subtracted from federal taxable income amounts received from a scholarship awarded to the taxpayer or a dependent of the taxpayer that are used for housing expenses of the scholarship recipient at the time the scholarship recipient is attending an accredited community college, college, university or other institution of higher education. A su…

316.847 National service educational award

There shall be subtracted from federal taxable income amounts received as a national service educational award under 42 U.S.C. 12602, following completion of the required term of service in 42 U.S.C. 12593(b). A subtraction may not be allowed under this section if the amounts described in subsection (1) of this section: Are not included in the taxpayer’s f…

316.848 Individual development accounts

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 taxpayer deposits to an individual development account established by the taxpayer under ORS 458.685. Matching deposits made by a fiduciary organization to an individual development account, and inte…

316.849 [Formerly 316.145; repealed by 1993 c.475 §3]

316.850 Personal casualty loss

There shall be subtracted from federal taxable income any amount of personal casualty loss that is incurred in Oregon and that would be deductible under section 165(c) and (h) of the Internal Revenue Code, but for the operation of section 165(h)(5) of the Internal Revenue Code. A subtraction under this section is allowed only for a personal casualty loss th…

316.852 [1999 c.358 §2; 2011 c.301 §3; repealed by 2025 c.36 §4]

316.853 Addition for amount deducted as deemed repatriation

In addition to the other modifications to federal taxable income contained in this chapter, to derive Oregon taxable income there shall be added to federal taxable income any amount deducted, for the tax year, for federal income tax purposes under section 965(c)(1) of the Internal Revenue Code.

316.854 [Formerly 316.150; 1985 c.802 §16a; repealed by 1987 c.293 §70]

316.855 [1953 c.304 §108; 1963 c.305 §1; repealed by 1969 c.493 §99]

316.856 Severance pay; rules

As used in this section: “Invest” means to exchange cash for equity, debt, convertible debt or management responsibilities, accompanied by terms that substantiate ownership or control of an interest in a business. “Invest” does not mean to make a loan to a business. “Material participation” has the meaning given that term in section 469 of the Internal Rev…

316.857 [1989 1985 c.352 §2; renumbered 316.216 in 1989]

316.859 Addition for amount deducted as qualified business income from pass-through entity

There shall be added to federal taxable income for Oregon tax purposes the amount allowable as a deduction under section 199A(a) of the Internal Revenue Code for the tax year.

316.860 [1953 c.304 §109; repealed by 1969 c.493 §99]

316.861 Addition of purchase price of purchased winning lottery ticket

If the amount of the purchase price of a lottery ticket that is purchased in violation of ORS 461.610 is allowed as a deduction for federal tax purposes, the amount of the purchase price shall be added to federal taxable income for Oregon tax purposes.

316.863 [1985 c.802 §3; repealed by 1997 c.839 §69]

316.865 [1953 c.304 §110; repealed by 1969 c.493 §99]

(Wildfire-related Litigation)

316.866 Amounts received in civil action arising from wildfire

There shall be subtracted from federal taxable income any amount received in judgment or settlement of a civil action arising from a wildfire, as defined in ORS 477.089, and awarded to a plaintiff. A subtraction under this section is allowed only for resolution of civil actions arising from a wildfire that: Is the subject of a state of emergency declared b…

316.867 Legal fees in wildfire-related litigation

As used in this section: “Wildfire” means a wildfire as defined in ORS 477.089, that: Is the subject of a state of emergency declared by the Governor; Occurs in an area subject to an executive order of the Governor invoking the Emergency Conflagration Act under ORS 476.510 to 476.610; or Is a federally declared disaster, as defined in section 165 of the …

316.870 [1953 c.304 §111; repealed by 1969 c.493 §99]

316.871 [1985 c.715 §2; 1987 c.293 §9; 1993 c.18 §82; 1997 c.772 §30; 2009 c.33 §24; repealed by 2011 c.83 §21]

316.872 [1985 c.715 §3; 1987 c.647 §15; repealed by 2011 c.83 §21]

316.873 [1995 c.809 §2; 1997 c.839 §25; repealed by 2011 c.83 §21]

316.874 [1995 c.809 §3; repealed by 2011 c.83 §21]

316.875 [1953 c.304 §112; repealed by 1969 c.493 §99]

316.876 [1995 c.809 §4; repealed by 2011 c.83 §21]

316.877 [1995 c.809 §5; repealed by 2011 c.83 §21]

316.878 [1995 c.809 §6; repealed by 2011 c.83 §21]

316.879 [1995 c.809 §7; repealed by 2011 c.83 §21]

316.880 [1953 c.304 §113; repealed by 1969 c.493 §99]

316.881 [1995 c.809 §8; repealed by 2011 c.83 §21]

316.882 [1995 c.809 §9; repealed by 2011 c.83 §21]

316.883 [1995 c.809 §10; repealed by 2011 c.83 §21]

316.884 [1995 c.809 §12; repealed by 2011 c.83 §21]

316.885 [1953 c.304 §114; repealed by 1969 c.493 §99]

(Prior Laws Superseded)

316.970 Effect of chapter 493, Oregon Laws 1969

This chapter is intended to supersede any conflicting provisions of law in effect on August 22, 1969, to the extent of such conflict.

316.990 [1953 c.304 §115; repealed by 1957 c.632 §1 (314.991 enacted in lieu of 316.990 and 317.990)]

PENALTIES

316.992 Penalty for filing incorrect return that is based on frivolous position or is intended to delay or impede administration; appeal

The Department of Revenue shall assess a penalty of $250 against any individual who files what purports to be a return of the tax imposed by this chapter but which: Does not contain information on which the substantial correctness of the self-assessment may be judged; or Contains information that on its face indicates that the self-assessment is substantia…