ORS 316.007¹

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

(1) 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;

(2) 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

(3) 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 (Foreign income taxes). 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)

1 Legislative Counsel Committee, CHAPTER 316—Personal Income Tax, https://­www.­oregonlegislature.­gov/­bills_laws/­Archive/­2007ors316.­pdf (2007) (last ac­cessed Feb. 12, 2009).
2 Legislative Counsel Committee, Annotations to the Oregon Revised Stat­utes, Cumulative Supplement - 2007, Chapter 316, https://­www.­oregonlegislature.­gov/­bills_laws/­ors/­316ano.­htm (2007) (last ac­cessed Feb. 12, 2009).
3 OregonLaws.org assembles these lists by analyzing references between Sections. Each listed item refers back to the current Section in its own text. The result reveals relationships in the code that may not have otherwise been apparent. Currency Information