Personal Income Tax

ORS 316.007

It is the intent of the Legislative Assembly, by the adoption of this chapter, insofar as possible, to:


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, estates and trusts, modified as necessary by the state’s jurisdiction to tax and the revenue needs of the state;


Achieve this result by the application of the various provisions of the Internal Revenue Code relating to the definition of income, exceptions and exclusions therefrom, deductions (business and personal), accounting methods, taxation of trusts, estates and partnerships, basis, depreciation and other pertinent provisions relating to gross income as defined therein, modified as provided in this chapter, resulting in a final amount called “taxable income”; and


Impose a tax on residents of this state measured by taxable income wherever derived and to impose a tax on the income of nonresidents that is ascribable to sources within this state. [1969 c.493 §2; 1971 s.s. c.4 §1; 1987 c.293 §1; 1989 c.625 §1; 2003 c.46 §34]

Notes of Decisions

Plaintiff's expenses were incurred "while away from home in the pursuit of a trade or business" and therefore deductible under federal Internal Revenue Code of 1954, §162 (a) (2). Hilyard v. Dept. of Rev., 5 OTR 619 (1975)

Internal Revenue Code provision for deduction of contribution to municipal corporation applied to land deeded to water district for pump house. Act. Brice v. Dept. of Rev., 6 OTR 548 (1976)

Where taxpayers realized gain on sale of California property before moving to Oregon, gain was not taxable by state even though recognition was deferred under federal tax law until after taxpayers had established residency in Oregon. Denniston v. Dept. of Revenue, 287 Or 719, 601 P2d 1258 (1979)

Travel from union member's home to place of business is personal commuting expense but travel from that situs of member's business, the "hiring hall," to assigned jobsite for temporary employment results in expense incurred in carrying on trade or business. Shelton v. Dept. of Rev., 10 OTR 12 (1985)

Oregon tax law is to follow federal provisions relating to measurement of taxable income; policy does not apply to Oregon provisions on withholding. Realty Group v. Dept. of Rev., 299 Or 377, 702 P2d 1075 (1985)

Non-immigrant student with F-1 Visa who is subject to federal income tax is subject to Oregon income tax. Gobina v. Dept. of Rev., 12 OTR 202 (1992)

Chapter 316

Notes of Decisions

Unless the divorce decree specifically designates that payments are for child support, payments will be treated as alimony. Henderson v. Dept. of Rev., 5 OTR 153 (1972)

The goal of this chapter is to incorporate all of the provisions of the federal Internal Revenue Code; taxable income should be adjusted whenever the result of the adjustment is to give effect to the policies or principles of the federal Internal Revenue Code, even though no express authority for the adjustment is present in the statutes. Christian v. Dept. of Rev., 269 Or 469, 526 P2d 538 (1974); Smith v. Dept. of Rev., 270 Or 456, 528 P2d 73 (1974)

By its enactment of this chapter, the legislature intended to adopt §172 of the federal Internal Revenue Code allowing for the carryback and carryforward of net operating losses. Christian v. Dept. of Rev., 269 Or 469, 526 P2d 538 (1974)

Where plaintiff failed to appeal timely as required by this section, appeal rights were not preserved so that cause could be considered on merits. Dela Rosa v. Dept. of Rev., 11 OTR 201 (1989), aff'd 313 Or 284, 832 P2d 1228 (1992)

Where taxpayers paid foreign income taxes on foreign income and claimed foreign taxes paid as federal tax credit and as state business expense deduction, taxpayers who claim federal foreign tax credit are entitled only to foreign tax deduction provided in ORS 316.690. Whipple v. Dept. of Rev., 309 Or 422, 788 P2d 994 (1990)

For purposes of claim preclusion, all issues regarding taxpayer's income tax liability for tax year constitute same claim. U.S. Bancorp v. Dept. of Revenue, 15 OTR 13 (1999)

Atty. Gen. Opinions

Political contributions as credit against Oregon tax return, (1974) Vol 37, p 159

Law Review Citations

57 OLR 309 (1978); 16 WLR 373 (1979)


Last accessed
Jun. 26, 2021