Personal Income Tax

ORS 316.047
Transitional provision to prevent doubling income or deductions

If any provision of the Internal Revenue Code or of this chapter requires that any amount be added to or deducted from federal gross income or the net income taxable under this chapter that previously had been added to or deducted from net income taxable under the Oregon law in effect prior to the taxpayer’s taxable year as to which this chapter is first effective, then, in such event, appropriate adjustment shall be made to the net income for the year or years subject to this chapter so as to prohibit the double taxation or the double deduction of any such amount that previously had entered into the computation of taxable income. Differences such as the difference in basis of property used by the taxpayer for federal and Oregon income tax returns and on account of the treatment of operating losses shall be resolved by application of this principle. However, the Department of Revenue, in its audit of a return, shall not apply any adjustment under this section which, in its opinion, if applied would result in an increase or decrease of tax liability of less than $25. [1969 c.493 §13; 1987 c.293 §8]

Notes of Decisions

Annuity income not taxed by Oregon because of difference in treatment of annuity income prior to 1969, and excluded from federal tax returns after 1969, is an exclusion rather than deduction, and this section is not applicable. Bronson v. Dept. of Rev., 5 OTR 86 (1972), aff'd 265 Or 211, 508 P2d 423 (1973)

The statute will not allow a short-term capital loss carryover to the 1969 tax year where such disallowance does not result in a double taxation or deduction. Rinehart v. Dept. of Rev., 5 OTR 210 (1973)

By enactment of this section the legislature intended that adjustments be made in the taxpayer's net income to alleviate inconsistent treatment resulting from the transition from the Personal Income Tax Act of 1953 to the federal Internal Revenue Code. Christian v. Dept. of Rev., 269 Or 469, 526 P2d 538 (1974)

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)

Despite apparent inconsistency between state and federal tax law, taxpayers were required to use deceased father's basis in stock, rather than stepped-up basis, for determining gain for state income tax purposes. Seymour v. Dept. of Rev., 11 OTR 394 (1990), aff'd 311 Or 254, 809 P2d 100 (1991)

No double income taxation existed where state law required taxpayers to report gain on sale of stock calculated using decedent donor's basis rather than stepped-up basis. Seymour v. Dept. of Rev., 311 Or 254, 809 P2d 100 (1991)

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)


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Jun. 26, 2021