Title 29, Revenue and Taxation

This chapter may be cited as the Personal Income Tax Act of 1969. [1969 c.493 §1; 1995 c.79 §164]

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

It is the intent of the Legislative Assembly, by the adoption of this chapter, insofar as possible, to: (1) 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, est…

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 Legislat…

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 unde…

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. [1985 c.802 §42; 2003 c.46 §35…

As used in this chapter, unless the context requires otherwise: (1) “Department” means the Department of Revenue. (2) “Director” means the Director of the Department of Revenue. (3) “Individual” means a natural person, including aliens and minors. (4) A “nonresident” means an ind…

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. [1987 c.293 §12a; 2003 c.46 §36]

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. [2018 c.5…

(1) For purposes of this chapter, unless the context requires otherwise: (a) “Resident” or “resident of this state” means: (A) An individual who is domiciled in this state unless the individual: (i) Maintains no permanent place of abode in this state; (ii) Does maintain a permane…

(1) 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 ad…

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. [2011 c.685 §2]

(1) 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. (2) An eligible taxpayer may elect under this section to use…

(1) The Department of Revenue shall administer and enforce this chapter. (2) 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 t…

(1)(a) 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 …

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 hou…

(1) As used in this section: (a) “Material participation” has the meaning given that term in section 469 of the Internal Revenue Code. (b) “Nonpassive income” means income other than income from passive activity as determined under section 469 of the Internal Revenue Code. “Nonpa…

(1)(a) 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 …

(1) As used in this section: (a) “Farming” means: (A) Raising, harvesting and selling crops; (B) Feeding, breeding, managing or selling livestock, poultry, fur-bearing animals or honeybees or the produce thereof; (C) Dairying and selling dairy products; (D) Stabling or training e…

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 e…

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 …

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 …

(1) 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: (a) The State of…

(1) 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 …

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 b…

(1) 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 individua…

(1)(a) 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. (b) In the case of an individual with respe…

(1) 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, notwithstandi…

(1) As used in this section: (a) “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. (b) “Manufactured dwelling” has the meaning given that term …

(1) As used in this section, unless the context requires otherwise: (a) “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 e…

(1) A credit against taxes shall be allowed for voluntary contributions in money made in the taxable year: (a) 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. (b)…

(1) 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. (2) A credit against the tax otherwise due under this chapter shal…

(1)(a) 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. (b) A credit against the taxes otherwise du…

(1) 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…

(1) 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). (2) In determining the pro rata share of S corporation income of a nonresident shareholder, …

(1) 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: (a) For the portion of the year in which the taxpayer was a resident of Oregon, the taxpayer’s…

(1) 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 c…

(1) 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 i…

(1) The adjusted gross income of a nonresident derived from sources within this state is the sum of the following: (a) 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…

(1) 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 chap…

(1) 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 …

As used in ORS 316.147 to 316.149, unless the context requires otherwise: (1) “Eligible taxpayer” includes any individual who must pay taxes otherwise imposed by this chapter and: (a) Who pays or incurs expenses for the care of a qualified individual, through a payment method det…

(1) 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 …

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. [1…

(1) 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. (2) For purposes of this…

(1) 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 pa…

(1)(a) 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 s…

As used in ORS 316.162 to 316.221: (1) “Employer” means: (a) 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 (b) An officer or employee of a corporation, or a me…

(1) 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 p…

(1) 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 la…