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83rd OREGON LEGISLATIVE ASSEMBLY--2025 Regular Session
House Bill 2073
Introduced and printed pursuant to House Rule 12.00. Presession filed (at the request of House Interim Committee
on Revenue for Representative Nancy Nathanson)
SUMMARY
The following summary is not prepared by the sponsors of the measure and is not a part of the body thereof subject
to consideration by the Legislative Assembly. It is an editor’s brief statement of the essential features of the
measure as introduced.The statement includes a measure digest written in compliance with applicable readability
standards.
Digest: The Act would make technical changes to certain tax laws. (Flesch Readability Score:
78.2).
Makes technical changes in Oregon tax statutes.
Takes effect on the 91st day following adjournment sine die.
A BILL FOR AN ACT
Relating to the correction of erroneous material in Oregon tax law; creating new provisions;
amending ORS 311.165, 314.772, 316.502, 317.010, 317.655, 319.420, 320.013 and 320.100; repealing
ORS 309.310, 315.174, 316.852, 317.122, 317.152, 317.153, 317.154, 317.488 and 319.430; and pre-
scribing an effective date.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 309.310 is repealed.
NOTE: Repeals obsolete statute.
SECTION 2. ORS 311.165 is amended to read:
311.165. (1) The assessor shall proceed to levy and the tax collector to collect the taxes
described in this subsection in the manner set forth in subsections (2) to (5) of this section
if, in the opinion of the assessor:
(a) It appears probable that real property improvements, whether assessed as improvements only
or as real property improvements assessed together with land have been or will be severed from the
land upon which they are situated and have been or will be removed from [such] the land;
(b) It appears that the amount of taxes [which] that have been levied against the property in
the current and prior years or [which] that are anticipated to be levied for the current assessment
year will not be adequately secured by the value of the property remaining in the tax account; and
(c) It appears that unless prompt action is taken the taxes will not be collected[, then the
assessor shall proceed to levy and the tax collector to collect the taxes in the manner set forth in sub-
section (2) of this section].
(2)(a) If the amount of the taxes for the current year attributable to the property improvements
is not able to be determined, the assessor shall estimate the taxes due for the current year.
(b) The assessor shall make demand upon the owner of the improvements as shown by the most
recent assessment roll, for payment of the unpaid taxes attributable to the improvements for the
current and all prior years.
(3)(a) Any payments shall be paid immediately upon demand of the assessor either to the
assessor for remittance to the tax collector or directly to the tax collector of the county pursuant
to ORS 311.370.
NOTE:Matter in boldfaced type in an amended section is new; matter [italic and bracketed] is existing law to be omitted.
New sections are in boldfaced type.
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(b) If the taxes are not paid immediately upon demand, the assessor shall certify the assessment
and tax levies so made by the assessor to the tax collector.
(4)(a) For the purposes of collection of the assessments, the owner shall be considered a tax-
payer owning personal property against which ad valorem taxes have been assessed.
(b) Review may be had as provided in ORS 311.467.
(5) All taxes collected by the tax collector, or taxes collected by the assessor and remitted to
the tax collector shall be credited to the real property account containing the improvements
[which] that were the basis of the tax.
NOTE: Improves syntax in (1) and (5) and updates sequence.
SECTION 3. ORS 314.772 is amended to read:
314.772. (1) Except as provided in ORS 314.766 (5)(b), the tax credits allowed or allowable to a
C corporation for purposes of ORS chapter 317 or 318 shall not be allowed to an S corporation. The
business tax credits allowed or allowable for purposes of ORS chapter 316 shall be allowed or are
allowable to the shareholders of the S corporation.
(2) In determining the tax imposed under ORS chapter 316, as provided under ORS 314.763, on
income of the shareholder of an S corporation, there shall be taken into account the shareholder’s
pro rata share of business tax credit (or item thereof) that would be allowed to the corporation (but
for subsection (1) of this section) or recapture or recovery thereof. The credit (or item thereof), re-
capture or recovery shall be passed through to shareholders in pro rata shares as determined in the
manner prescribed under section 1377(a) of the Internal Revenue Code.
(3) The character of any item included in a shareholder’s pro rata share under subsection (2)
of this section shall be determined as if such item were realized directly from the source from which
realized by the corporation, or incurred in the same manner as incurred by the corporation.
(4) If the shareholder is a nonresident and there is a requirement applicable for the business tax
credit that in the case of a nonresident the credit be allowed in the proportion provided in ORS
316.117, then that provision shall apply to the nonresident shareholder.
(5) As used in this section, “business tax credit” means the following credits: ORS 315.104
(forestation and reforestation), ORS 315.124 (small forest option), ORS 315.133 (agricultural overtime
pay), ORS 315.138 (fish screening, by-pass devices, fishways), ORS 315.141 (biomass production for
biofuel), ORS 315.156 (crop gleaning), ORS 315.164 and 315.169 (agriculture workforce housing), ORS
315.176 (bovine manure), ORS 315.204 (dependent care assistance), ORS 315.208 (dependent care fa-
cilities), ORS 315.213 (contributions for child care), ORS 315.237 (employee and dependent scholar-
ships), ORS 315.271 (individual development accounts), ORS 315.283 (affordable housing sales), ORS
315.304 (pollution control facility), ORS 315.326 (renewable energy development contributions), ORS
315.331 (energy conservation projects), ORS 315.336 (transportation projects), ORS 315.341
(renewable energy resource equipment manufacturing facilities), ORS 315.354 and 469B.151 (energy
conservation facilities), ORS 315.506 (tribal taxes on reservation enterprise zones and reservation
partnership zones), ORS 315.507 (electronic commerce), ORS 315.514 (film production development
contributions), ORS 315.518 (semiconductors), ORS 315.523 (employee training programs), ORS
315.533 (low income community jobs initiative), ORS 315.593 (short line railroads), ORS 315.640
(university venture development funds), ORS 315.643 (Opportunity Grant Fund contributions), ORS
315.675 (Trust for Cultural Development Account contributions), ORS 317.097 (loans for affordable
housing), ORS 317.124 (long term enterprise zone facilities)[,] and ORS 317.147 (loans for agriculture
workforce housing)[, ORS 317.152 (qualified research expenses) and ORS 317.154 (alternative qualified
research expenses)] and section 9, chapter 774, Oregon Laws 2013 (alternative fuel vehicle contribu-
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tions).
NOTE: Deletes references to repealed statutes. See section 4.
SECTION 4. ORS 315.174, 316.852, 317.122, 317.152, 317.153, 317.154 and 317.488 are repealed.
NOTE: Repeals obsolete tax expenditure provisions.
SECTION 5. ORS 316.502, as amended by section 65a, chapter 70, Oregon Laws 2024, is
amended to read:
316.502. (1) 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.
(2) A working balance of unreceipted revenue from the tax imposed by this chapter may be re-
tained for the payment of refunds, but such working balance shall not at the close of any fiscal year
exceed the sum of $1 million.
(3) Moneys are continuously appropriated to the Department of Revenue to make:
(a) The refunds authorized under subsection (2) of this section; and
(b) The refund payments in excess of tax liability authorized under ORS 315.133, [315.174,]
315.262, 315.264, 315.266, 315.273, 315.519 and 316.090 and section 3, chapter 589, Oregon Laws 2021.
NOTE: Deletes reference to repealed statute. See section 4.
SECTION 6. ORS 317.010, as amended by section 24, chapter 75, Oregon Laws 2024, is amended
toread:
317.010. As used in this chapter, unless the context requires otherwise:
(1) “Centrally assessed corporation” means every corporation the property of which is assessed
by the Department of Revenue under ORS 308.505 to 308.674.
(2) “Department” means the Department of Revenue.
(3)(a) “Consolidated federal return” means the return permitted or required to be filed by a
group of affiliated corporations under section 1501 of the Internal Revenue Code.
(b) “Consolidated state return” means the return required to be filed under ORS 317.710 (5).
(4) “Doing business” means any transaction or transactions in the course of its activities con-
ducted within the state by a national banking association, or any other corporation; provided, how-
ever, that a foreign corporation whose activities in this state are confined to purchases of personal
property, and the storage thereof incident to shipment outside the state, shall not be deemed to be
doing business unless such foreign corporation is an affiliate of another foreign or domestic corpo-
ration which is doing business in Oregon. Whether or not corporations are affiliated shall be de-
termined as provided in section 1504 of the Internal Revenue Code.
(5) “Excise tax” means a tax measured by or according to net income imposed upon national
banking associations, all other banks, and financial, centrally assessed, mercantile, manufacturing
and business corporations for the privilege of carrying on or doing business in this state.
(6) “Financial institution” has the meaning given that term in ORS 314.610 except that it does
not include a credit union as defined in ORS 723.006, an interstate credit union as defined in ORS
723.001 or a federal credit union.
(7) “Internal Revenue Code,” except where the Legislative Assembly has provided otherwise,
refers to the laws of the United States or to the Internal Revenue Code as they are amended and
in effect:
(a) On December 31, 2023; or
(b) If related to the definition of taxable income, as applicable to the tax year of the taxpayer.
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(8) “Oregon taxable income” means taxable income, less the deduction allowed under ORS
317.476, except as otherwise provided with respect to insurers in subsection (11) of this section and
ORS 317.650 to 317.665.
(9) “Oregon net loss” means taxable loss, except as otherwise provided with respect to insurers
in subsection (11) of this section and ORS 317.650 to 317.665.
(10) “Taxable income or loss” means the taxable income or loss determined, or in the case of a
corporation for which no federal taxable income or loss is determined, as would be determined, un-
der chapter 1, Subtitle A of the Internal Revenue Code and any other laws of the United States
relating to the determination of taxable income or loss of corporate taxpayers, with the additions,
subtractions, adjustments and other modifications as are specifically prescribed by this chapter ex-
cept that in determining taxable income or loss for any year, no deduction under ORS 317.476 or
317.478 and section 45b, chapter 293, Oregon Laws 1987, shall be allowed. If the corporation is a
corporation to which ORS 314.280 or 314.605 to 314.675 (requiring or permitting apportionment of
income from transactions or activities carried on both within and without the state) applies, to
derive taxable income or loss, the following shall occur:
(a) From the amount otherwise determined under this subsection, subtract nonapportionable in-
come, or add nonapportionable loss, whichever is applicable.
(b) Multiply the amount determined under paragraph (a) of this subsection by the Oregon ap-
portionment percentage defined under ORS 314.280, 314.650 or 314.667, whichever is applicable.The
resulting product shall be Oregon apportioned income or loss.
(c) To the amount determined as Oregon apportioned income or loss under paragraph (b) of this
subsection, add nonapportionable income allocable entirely to Oregon under ORS 314.280 or 314.625
to 314.645, or subtract nonapportionable loss allocable entirely to Oregon under ORS 314.280 or
314.625 to 314.645. The resulting figure is “taxable income or loss” for those corporations carrying
on taxable transactions or activities both within and without Oregon.
(11) As used in ORS [317.122 and] 317.650 to 317.665, “insurer” means any domestic, foreign or
alien insurer as defined in ORS 731.082 and any interinsurance and reciprocal exchange and its at-
torney in fact with respect to its attorney in fact net income as a corporate attorney in fact acting
as attorney in compliance with ORS 731.458, 731.462, 731.466 and 731.470 for the reciprocal or
interinsurance exchange. However, “insurer” does not include title insurers or health care service
contractors operating pursuant to ORS 750.005 to 750.095.
NOTE: Deletes reference to repealed statute. See section 4.
SECTION 7. ORS 317.655 is amended to read:
317.655. (1) For purposes of the tax imposed under ORS 317.070, the Oregon taxable income of
an insurer shall be the insurer’s “net gain from operations” or “net income” determined in the
manner prescribed by the Department of Consumer and Business Services on its Annual Statement
Form for the taxable year, as adjusted pursuant to ORS 317.010 (11)[, 317.122] and 317.650 to 317.665.
(2) The Oregon taxable income of an insurer shall be computed by adding or subtracting, to the
insurer’s net gain from operations as determined under subsection (1) of this section, such of the
following items as apply to the insurer:
(a) Add the amount of federal and state income taxes deducted by the insurer in computing its
net gain from operations.
(b) Add penalty interest received by the insurer arising out of prepayment of loans made by the
insurer.
(c) Add realized gains and losses on sales or exchanges by the insurer of property.
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(d) Subtract, if the insurer so elects, additional or accelerated depreciation on real and personal
property that is in excess of the depreciation deducted by the method used in computing the
insurer’s net gain from operations.
(e) Subtract that amortized portion of the contribution for past service credits made to qualified
plans and exempt trusts for employees allowed as a deduction.
(f) Add or subtract, as appropriate, increases or decreases in mandatory reserves that the
insurer is required to maintain by law or by rules or directives of the Director of the Department
of Consumer and Business Services or the insurance director or commissioner of the state of
domicile of the foreign or alien insurer, other than increases or decreases that (A) are deducted in
arriving at the insurer’s net gain from operations, or (B) result from net gains or losses, realized
or unrealized, in the value of the insurer’s property and investments.
(g) Add or subtract, as appropriate, increases or decreases in reserves for policies and obli-
gations outstanding before the beginning of the taxable year resulting from changes in the bases and
methods of computing such reserves that are justified by accounting and actuarial practices appli-
cable to or accepted by the insurance industry, commonly known as “reserve strengthening” or
“reserveweakening.”
(3) Income, expenses, gains, losses, exclusions, deductions, assets, reserves, liabilities and other
items properly attributable to one or more separate accounts authorized under ORS 733.220 shall
not be taken into account in determining taxable income of an insurer under ORS 317.010 (11)[,
317.122] and 317.650 to 317.665 until such amounts or items are returned to and reflected on the
general accounts of such insurer so as to be available generally to or for the benefit of contract and
policyholders of the insurer.
NOTE: Deletes references to repealed statute. See section 4.
SECTION 8. ORS 319.420 is amended to read:
319.420. ORS 319.010 to [319.410] 319.420 do not affect or repeal any of the provisions of ORS
319.510 to 319.880.
NOTE: Amends series reference.
SECTION 9.ORS 319.430 is repealed.
NOTE: Repeals obsolete statute.
SECTION 10.The repeal of ORS 319.430 by section 9 of this 2025 Act does not affect any
rights or obligations arising under the provisions of the statutes repealed by section 38,
chapter 413, Oregon Laws 1945, or any duties or obligations contracted or arising under such
statutes, prior to June 16, 1945.
NOTE: Clarifies effects of repealing ORS 319.430. See section 9.
SECTION 11. ORS 320.013 is amended to read:
320.013. (1) In addition to the excise tax imposed by ORS 320.011, an excise tax is imposed upon
every person for the privilege of operating an amusement device within this state. The tax shall be
$10 for each amusement device operated during the tax year.
(2) All moneys received from the tax imposed under subsection (1) of this section, not including
penalties, shall be paid by the Department of Revenue into the State Treasury quarterly and are
continuously appropriated to the Higher Education Coordinating Commission to pay the ex-
penses of the state and local programs of the Oregon Youth Corps established under ORS 418.650
to 418.663.
NOTE: Clarifies to whom amusement device excise tax moneys are continuously appropriated.
SECTION 12. ORS 320.100 is amended to read:
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320.100. (1) All moneys received from the taxes imposed under ORS 320.011 and 320.012, includ-
ing penalties, shall be paid by the Department of Revenue in the following manner:
(a) Seventy-five percent (75%) of the moneys shall be credited, appropriated or remitted as fol-
lows:
(A) Forty-three and two-tenths percent (43.2%) thereof shall be credited to the General Fund to
be available for payment of general governmental expenses.
(B) Nine and seven-tenths percent (9.7%) is continuously appropriated to the Higher Education
Coordinating Commission to pay the expenses of state and local programs of the Oregon Youth
Corps established under ORS 418.650 to 418.663.
(C) Forty-seven and one-tenth percent (47.1%) thereof shall be remitted to the county treasurers
of the several counties of the state. Each county shall receive such share of the moneys as its pop-
ulation, determined by Portland State University, bears to the total population of the counties of the
state, as determined by the census last preceding such apportionment.
(b) Twenty-five percent (25%) of the moneys shall be continuously appropriated to the Higher
Education Coordinating Commission to pay the expenses of the state and local programs of the
Oregon Youth Corps established under ORS 418.650 to 418.663.
(2) All revenues received under this section by the treasurers of the several counties shall be
placed in the general fund of each county to be expended by the county courts or the board of
county commissioners of the several counties for general governmental expenses.
NOTE: Clarifies to whom amusement device excise tax moneys are continuously appropriated.
SECTION 13. ORS 320.355, 320.357 and 320.360 are added to and made a part of ORS
320.345 to 320.365.
NOTE: Adds statutes to the appropriate statutory series.
SECTION 14.This 2025 Act takes effect on the 91st day after the date on which the 2025
regular session of the Eighty-third Legislative Assembly adjourns sine die.
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