(1)(a) There shall be allowed a personal exemption credit against taxes otherwise due under this chapter. The credit shall equal $90 multiplied by the number of personal exemptions allowed under section 151 of the Internal Revenue Code.
(b) In the case of an individual with respect to whom a credit under paragraph (a) of this subsection is allowable to another taxpayer for a taxable year beginning in the calendar year in which the individual’s taxable year begins, the credit amount applicable to such individual for such individual’s taxable year is zero.
(2)(a) A nonresident shall be allowed the credit provided under subsection (1) of this section computed in the same manner and subject to the same limitations as the credit allowed to a resident of this state. However, the credit shall be prorated using the proportion provided in ORS 316.117.
(b) If a change in the taxable year of a taxpayer occurs as described in ORS 314.085, or if the Department of Revenue terminates the taxpayer’s taxable year under ORS 314.440, the credit allowed by this section shall be prorated or computed in a manner consistent with ORS 314.085.
(c) If a change in the status of a taxpayer from resident to nonresident or from nonresident to resident occurs, the credit allowed by this section shall be determined in a manner consistent with ORS 316.117.
(3) The Department of Revenue shall recompute the dollar amount of the personal exemption credit allowed for state personal income tax purposes. The computation shall be as follows:
(a) Divide the monthly averaged U.S. City Average Consumer Price Index for the 12 consecutive months ending August 31 of the prior calendar year by the monthly averaged index for the first six months of 1986.
(b) Recompute the dollar amount of the personal exemption credit by multiplying $90 by the appropriate indexing factor determined as provided in paragraph (a) of this subsection. Round off the amount obtained under this paragraph to the nearest $1.
(4) As used in this section, “U.S. City Average Consumer Price Index” means the U.S. City Average Consumer Price Index for All Urban Consumers (All Items) as published by the Bureau of Labor Statistics of the United States Department of Labor.
(5) Notwithstanding subsections (1) to (3) of this section, if a taxpayer’s federal adjusted gross income for the tax year exceeds the threshold amount, the exemption amount shall be the greater of:
(a) Thirty-three percent of the amount computed in subsection (3) of this section; or
(b) The amount computed in subsection (3) of this section reduced by:
(A) Two percentage points for each $2,500 (or fraction thereof) by which the taxpayer’s federal adjusted gross income exceeds the threshold amount; or
(B) Two percentage points for each $1,250 (or fraction thereof) by which the taxpayer’s federal adjusted gross income exceeds the threshold amount, if the taxpayer is married but filing separately.
(6) As used in this section, “threshold amount” means:
(a) $234,600 in the case of a joint return or a surviving spouse.
(b) $195,500 in the case of a head of a household.
(c) $156,400 in the case of an individual who is not a married individual and is not a surviving spouse.
(d) $117,300 in the case of a married individual filing a separate return.
(7) The Department of Revenue shall adjust the threshold amounts in subsection (6) of this section according to the cost-of-living adjustment for the calendar year. The department shall annually recompute the threshold amounts for the current tax year by multiplying each dollar amount by the percentage (if any) by which the monthly averaged U.S. City Average Consumer Price Index for the 12 consecutive months ending August 31 of the prior calendar year exceeds the monthly averaged U.S. City Average Consumer Price Index for the 12 consecutive months ending August 31, 2006.
(8) If a threshold amount computed under subsections (6) and (7) of this section is not a multiple of $50, the amount shall be rounded to the next lower multiple of $50. [1985 c.345 §§2,3; 1987 c.293 §13; 1991 c.457 §2a; 1997 c.839 §8; 1999 c.90 §9; 2001 c.660 §12; 2007 c.843 §63]Section: Previous 316.078 316.079 316.080 316.081 316.082 316.083 316.084 316.085 316.086 316.087 316.088 316.089 316.091 316.092 316.093 Next
Last modified: August 7, 2008