Statute Text
Application of federal Tax Reform Act of 1986 (P.L. 99-514).
(1) For purposes of subsections
(2) to (15) of this section, TRA means the federal Tax Reform Act of 1986
(P.L. 99-514).
(2) Unless the
context requires otherwise, the amendments, repeals and new matter contained in
chapter 293, Oregon Laws 1987, apply generally to tax years beginning on or
after January 1, 1987, or to transactions occurring on or after January 1,
1987, in tax years beginning on or after January 1, 1987. However, certain
changes made by the federal Tax Reform Act of 1986 (P.L. 99-514) and adopted by
the amendments to ORS 316.007, 316.012, 317.010, 317.013 and 317.018 by
sections 1, 2 and 31 to 33, chapter 293, Oregon Laws 1987, apply for federal
tax purposes as follows:
(a) To tax years
beginning prior to January 1, 1987;
(b) To
transactions occurring before, on or after December 31, 1986, in tax years
ending after that date; or
(c) To
transactions occurring prior to January 1, 1987, but with tax consequences for
federal purposes only for tax years beginning after December 31, 1986.
(3) The changes
described in subsection (2)(a) of this section, if otherwise applicable for
Oregon tax purposes, shall apply to and are specifically adopted for tax years
beginning prior to January 1, 1987.
(4) The changes
described in subsection (2)(b) and (c) of this section if otherwise applicable
for Oregon tax purposes, shall apply to and are specifically adopted for
transactions occurring before, on or after December 31, 1986, in tax years
ending after December 31, 1986, or beginning after December 31, 1986, whichever
is applicable.
(5) The changes
described in subsections (3) and (4) of this section are exemplified by, but
are specifically not limited to the following:
(a) The
amendments made by section 122 of the TRA (relating to charitable and employee
achievement awards) which apply to prizes and awards granted after December 31,
1986.
(b) The
amendments by section 123 of the TRA (relating to scholarships and fellowships)
which apply to tax years beginning after December 31, 1986, but only in the
case of scholarships and fellowships granted after August 16, 1986.
(c) The
amendments to the Internal Revenue Code relating to depreciation and the
expensing of certain depreciable business assets by sections 201 and 202 of the
TRA which apply generally for property placed in service on or after January 1,
1987, in tax years ending on or after that date. However, if an election is
made under section 203(a)(1)(B) of the TRA, that election shall be considered
to be made for Oregon tax purposes. In addition, the transitional rules
contained in sections 203 and 204 of the TRA shall apply for Oregon purposes to
the extent they can be made applicable, in the same manner as for federal tax
purposes.
(d) Section 611
of the TRA (reducing the dividends received deduction for corporations) which
applies to dividends received or accrued after December 31, 1986, in tax years
ending after that date. In conjunction with this paragraph, the amendments to
ORS 317.267 by chapter 293, Oregon Laws 1987, apply to dividends received or
accrued after December 31, 1986, in tax years ending after that date.
(e) Section 1103
of the TRA (relating to the deduction for a spousal IRA), which applies to tax
years beginning before, on or after December 31, 1985.
(f) Section
1708(a) of the TRA (relating to Vietnam MIAs) which applies to tax years
beginning after December 31, 1982.
(6) If the TRA
allows or requires an adjustment to the federal tax return filed for a tax year
beginning prior to January 1, 1987, and such an adjustment is made, the
adjustment (if adopted for Oregon tax purposes) shall also be made to the
corresponding Oregon return notwithstanding any law or rule to the contrary, in
the manner provided under ORS 314.135.
(7) If certain
transactions are grandfathered by the TRA or the changes in the federal law
made by the TRA are otherwise made inapplicable to those transactions, the same
treatment shall be given those transactions for Oregon tax purposes unless
otherwise provided under ORS chapter 316, 317, 318 or other law governing the
determination of Oregon personal income and Oregon corporate excise and income
taxes.
(8) Subsections
(2) to (6) of this section do not apply to the amendments to ORS 316.021 and
317.021 by chapter 293, Oregon Laws 1987.
(9) Subsections
(2) to (6) of this section do not apply to the amendments to ORS 267.380,
307.380 and 310.630 made by sections 65, 66 and 69, chapter 293, Oregon Laws
1987.
(10) The
amendments to ORS 310.630 by section 66, chapter 293, Oregon Laws 1987, apply
to property taxes billed or rent constituting property taxes paid in calendar
years beginning on or after January 1, 1987.
(11) Subsections
(2) to (6) of this section do not apply to the amendments creating a new
paragraph (c) of subsection (3) of ORS 316.680. The amendments to ORS 316.680