By Oregon Society of CPAs ,
In the 1990s Oregon adopted legislation to provide that the Oregon definition of taxable income would automatically tie to changes in the federal definition of taxable income. As the 2009 Legislature convened, they became very concerned about the newest stimulus package that was moving through Congress, and what it might mean in terms of lost tax dollars to the state of Oregon. Democrats in both the House and Senate quickly moved a bill through the Legislature to change the connection date to the Internal Revenue Code to December 31, 2008. Therefore, although all changes through the end of 2008 were automatically picked up, Oregon’s definition of taxable income will no longer be automatically tied to the Internal Revenue Code.
The Oregon Legislature will be considering a bill to adopt the newest tax legislation passed by Congress in February 2009. They were concerned that if they did not sever the tie date prior to the passage of this most recent Act, then it would require a 2/3 vote in the Oregon Legislature to disconnect from any provision that might cost Oregon a lot of tax dollars. A disconnect after the fact would have been viewed as a tax increase, which requires the higher vote. Specifically, the legislators are concerned about accelerated depreciation provisions. We are hopeful that Oregon will remain connected to the Internal Revenue Code. However, for now they will address the issue each Legislative Session, and consider whether to retroactively adopt any changes made by Congress in between Oregon sessions.
Your Tax Team is hard at work to keep our tax laws connected to promote conformity and compliance.
— More information on OSCPA