ORS 315.653¹
Forfeiture of prior tax relief
  • disallowed withdrawal or distribution

(1) As provided in subsection (2) of this section, prior tax relief afforded a taxpayer by virtue of the credit allowed under ORS 315.650 (Higher education savings account or ABLE account contributions) shall be forfeited if any of the following are taken:

(a) A nonqualified withdrawal from an account, as defined in ORS 178.300 (Definitions for ORS 178.300 to 178.360);

(b) A withdrawal from a savings network account for higher education established under ORS 178.300 (Definitions for ORS 178.300 to 178.360) to 178.360 (Consideration of amounts in accounts for higher education expenses in benefit eligibility determinations) to pay expenses in connection with enrollment or attendance at an elementary or secondary school; or

(c) A distribution from an ABLE account that is not a qualified disability expense of the designated beneficiary as provided in ORS 178.375 (Definitions for ORS 178.375, 178.380 and 178.385) and 178.380 (Establishment of qualified ABLE program) and rules adopted by the Oregon 529 Savings Board.

(2) A taxpayer shall report the amount of a disallowed withdrawal or distribution in the tax year in which it is taken, and shall remit the taxes due as a result of the forfeited credit. The Department of Revenue shall by rule determine the calculation of forfeited credit amounts.

(3) If a taxpayer does not report a disallowed withdrawal or distribution in the tax year that it is taken, and notwithstanding ORS 314.410 (Time limit for notice of deficiency), the department shall proceed to collect those taxes, including penalties and interest, not paid by the taxpayer as a result of the tax credit allowed the taxpayer. [2019 c.579 §3]

Chapter 315

Notes of Decisions

State could not recalculate tax for tax year closed to review in order to prevent elective carry forward of tax credit to tax year subject to review. Smurfit Newsprint Corp. v. Dept. of Revenue, 329 Or 591, 997 P2d 185 (2000)

1 Legislative Counsel Committee, CHAPTER 315—Personal and Corporate Income or Excise Tax Credits, https://­www.­oregonlegislature.­gov/­bills_laws/­ors/­ors315.­html (2019) (last ac­cessed May 16, 2020).
 
2 Legislative Counsel Committee, Annotations to the Oregon Revised Stat­utes, Cumulative Supplement - 2019, Chapter 315, https://­www.­oregonlegislature.­gov/­bills_laws/­ors/­ano315.­html (2019) (last ac­cessed May 16, 2020).
 
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