Oregon Statutes 316.852 – Qualified donations and sales to educational institutions
(1) As used in this section:
Terms Used In Oregon Statutes 316.852
- 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.
- Fair market value: The price at which an asset would change hands in a transaction between a willing, informed buyer and a willing, informed seller.
- 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.
- Taxable income: means the taxable income as defined in subsection (a) or (b), section 63 of the Internal Revenue Code, with such additions, subtractions and adjustments as are prescribed by this chapter. See Oregon Statutes 316.022
- 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
(a) ‘Contribution base’ has the meaning given that term in section 170 of the Internal Revenue Code.
(b) ‘Educational institution’ means:
(A) A public common or union high school district;
(B) A private school that:
(i) Is an organization described in section 501(c)(3) of the Internal Revenue Code;
(ii) Offers education in prekindergarten, kindergarten or grades 1 through 12, or any combination of those grade levels; and
(iii) Provides instructional programs that are not limited solely to dancing, drama, music, religious or athletic instruction;
(C) An accredited public community college, college or university located in this state; or
(D) An accredited private community college, college or university located in this state that is an organization described in section 501(c)(3) of the Internal Revenue Code.
(c) ‘Qualified donation’ means a transfer of a fee estate in land from a taxpayer to an educational institution without consideration of any kind given to the taxpayer by the educational institution in exchange for the land.
(d) ‘Qualified reduced sale’ means a transfer of a fee estate in land by a taxpayer to an educational institution for consideration paid by the educational institution that is less than the fair market value of the land at the time of transfer.
(2) There shall be added to federal taxable income the amount that otherwise would be taken into account as a charitable contribution deduction for a qualified donation or a qualified reduced sale pursuant to section 170 of the Internal Revenue Code.
(3) In the case of a qualified donation made by the taxpayer during the tax year, the fair market value of the qualified donation shall be subtracted from federal taxable income.
(4) In the case of a qualified reduced sale made by the taxpayer during the tax year, the difference between the fair market value of the land and the sale price of the land shall be subtracted from federal taxable income.
(5) Notwithstanding subsections (3) and (4) of this section, the subtraction allowed under this section may not exceed:
(a) In the case of a qualified donation, 50 percent of the taxpayer’s contribution base for the tax year; or
(b) In the case of a qualified reduced sale, 25 percent of the taxpayer’s contribution base for the tax year.
(6) Any subtraction not allowed because of the limitations imposed under subsection (5) of this section may be carried forward and claimed as a subtraction in the next succeeding tax year. Any amount remaining unused in the next succeeding tax year may be carried forward and used in the second succeeding tax year, and likewise until the 15th succeeding tax year, but may not be carried beyond the 15th succeeding tax year.
(7) If a partnership or S corporation makes a qualified donation or qualified reduced sale during the tax year, each partner or shareholder shall be allowed a subtraction under this section in proportion to their ownership interest in the partnership or S corporation. [1999 c.358 § 2; 2011 c.301 § 3]
Section 6, chapter 358, Oregon Laws 1999, provides:
Sections 2 and 4 of this 1999 Act [316.852 and 317.488] apply to donations and reduced sales occurring in tax years beginning on or after January 1, 2000, and before January 1, 2008. [1999 c.358 § 6]