Oregon Statutes 316.082 – Credit for taxes paid another state; rules
(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 individual’s pro rata share of the S corporation or distributive share of the partnership), for the tax year by another state on income derived from sources therein and that is also subject to tax under this chapter.
Terms Used In Oregon Statutes 316.082
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Department: means the Department of Revenue. See Oregon Statutes 316.022
- Individual: means a natural person, including aliens and minors. See Oregon Statutes 316.022
- nonresident: means an individual who is not a resident of this state. See Oregon Statutes 316.022
- Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
- Statute: A law passed by a legislature.
- Taxpayer: means any natural person, estate, trust, or beneficiary whose income is in whole or in part subject to the taxes imposed by this chapter, or any employer required by this chapter to withhold personal income taxes from the compensation of employees for remittance to the state. See Oregon Statutes 316.022
- United States: includes territories, outlying possessions and the District of Columbia. See Oregon Statutes 174.100
(2) The credit provided under this section shall not exceed the proportion of the tax otherwise due under this chapter that the amount of the modified adjusted gross income of the taxpayer derived from sources in the other state bears to the entire modified adjusted gross income of the taxpayer.
(3) The Department of Revenue shall provide by rule the procedure for obtaining credit provided by this section and the proof required. The requirement of proof may be waived partially, conditionally or absolutely, as provided under ORS § 315.063.
(4) No credit allowed under this section or ORS § 316.292 shall be applied in calculating tax due under this chapter if the tax upon which the credit is based has been claimed as a deduction, unless the tax upon which the credit is based is restored to income on the Oregon return.
(5) Credit shall not be allowed under this section for income taxes paid to a state that allows a nonresident a credit against the income taxes imposed by that state for taxes paid or payable to the state of residence. It is the purpose of this subsection to avoid duplicative taxation through use of a nonresident, rather than a resident, credit for taxes paid or payable to another state.
(6) The Department of Revenue may adopt rules under this section that provide a credit against the tax imposed by this chapter when the department considers the credit necessary to avoid taxation of the same income by this state and another state.
(7) As used in this section:
(a) ‘Modified adjusted gross income’ means federal adjusted gross income as modified by this chapter and the other laws of this state applicable to personal income taxation.
(b) ‘Oregon partnership’ means an entity that is treated as a partnership for Oregon excise and income tax purposes.
(c) ‘Oregon S corporation’ means a corporation that has elected S corporation status for Oregon excise and income tax purposes.
(d) ‘State’ means a state, district, territory or possession of the United States.
(8) For purposes of this section:
(a) A direct tax imposed upon income of an Oregon S corporation is an income tax imposed on the Oregon S corporation.
(b) An excise tax that is measured by income of an Oregon S corporation is an income tax imposed on the Oregon S corporation.
(c) An excise tax is measured by income only if the statute imposing the excise tax provides that the base for the excise tax:
(A) Includes revenue from sales and from services rendered, and income from investments; and
(B) Permits a deduction for the cost of goods sold and the cost of services rendered. [1969 c.493 § 17; 1981 c.801 § 3; 1987 c.647 § 11; 1991 c.838 § 6; 1993 c.726 § 28a; 1995 c.54 § 7; 1999 c.74 § 5; 2001 c.9 § 1]
[1977 c.666 § 35; 1995 c.556 § 2; renumbered 316.845 in 2005]
[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)]