Title 29, Revenue and Taxation

(1) 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 305.62…

(1) 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 f…

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…

(1) 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 …

(1) 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’…

(1) 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 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 b…

(1) As used in this section: (a) “Commercial annuity” means an annuity, endowment or life insurance contract issued by an insurance company authorized to transact insurance in the State of Oregon. (b) “Department” means the Oregon Department of Revenue. (c) “Designated distributi…

Notwithstanding the provisions of ORS 316.197: (1) 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 t…

(1) 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-…

(1) 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 withh…

(1) 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…

(1)(a) 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 ag…

(1) 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. (2) The Department of Revenue may adopt…

(1) 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 …

(1) 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. (2) At an…

(1) 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: (a) The individual performing the services shall not be treated as an employee; and (b) The person for wh…

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, con…

(1) As used in ORS 316.213 to 316.219: (a) “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…

(1) 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…

(1) 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: (a) The total amount of compensation paid during the year to the members of the…

(1) The Department of Revenue may adopt administrative rules the department determines are necessary to: (a) Implement the duties of the department under ORS 316.213 to 316.219; and (b) Carry out the purposes of ORS 316.213 to 316.221. (2) The rules may include, but are not limit…

(1) 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.…

(1) 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 Fil…

(1) As used in this section: (a) “Nonresident employer” means an employer who: (A) Has no permanent place of business within this state; and (B) Employs qualifying nonresident employees to perform temporary services in this state. (b) “Qualifying nonresident employee” means an em…

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. [1969 c.493 §39; 1973 c.115 §3]

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. [1969 c.493 §40; 1983 c.684 §21]

(1) 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. (2) An association…

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 31…

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

(1) 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 estat…

(1) 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. (2) Notwithstanding the limitations contained in ORS 316.082 and …

(1) 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 pr…

For purposes of this chapter, a “nonresident estate or trust” means an estate or trust that is not a resident. [1969 c.493 §47; 1997 c.325 §43]

For purposes of ORS 316.302 to 316.317: (1) Items of income, gain, loss and deduction mean those derived from or connected with sources in this state. (2) Items of income, gain, loss and deduction entering into the definition of federal distributable net income include such items…

(1) 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 …

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 …

(1) An income tax return with respect to the tax imposed by this chapter shall be made by the following: (a) Every resident individual: (A) Who is required to file a federal income tax return for the taxable year; or (B) Who has gross income greater than the sum of: (i) The basic…

The instructions to the individual state income tax return form required to be filed by this chapter shall: (1) Be written in simple words used in their commonly understood senses that convey meanings clearly and directly; (2) Be written in primarily simple, rather than compound …

(1) The instructions to an individual state income tax return form shall have a total Flesch Reading Ease Score of 60 or higher. (2) As used in this section: (a) “Flesch Reading Ease Score” means 206.835 - (x + y) where x equals average sentence length multiplied by 1.015 and y e…

(1) 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…

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: (1) No joint return shall be made under this chapter if the spouses are not permitted to file a joint…

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…

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: (1) If the Internal Revenue Service has made a determination that relieved the spouse of liabilit…

(1) 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. (2) Except as provided in subsection (3) of this section, a minor shall file a return and include on t…

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 o…

(1) 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 l…

(1) 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 f…

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. [1969 c.493 §60]

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 r…