Oregon Statutes - Chapter 317 - Corporation Excise Tax - Section 317.122 - Insurers; amounts paid for certain taxes and assessments.

(1) A credit against taxes imposed by this chapter shall be allowed insurers for the gross premium tax paid on fire insurance premiums in accordance with ORS 731.820.

(2) A credit against the taxes otherwise due under this chapter shall be allowed to an insurer. The amount of the credit shall be the lesser of:

(a) The amount of any assessments paid by the insurer during the tax year pursuant to ORS 656.612; or

(b) The total profit attributable to the workers’ compensation line of business, net of reinsurance and including all investment gain attributable to the workers’ compensation line of business, determined in the manner prescribed under ORS 731.574 by the Director of the Department of Consumer and Business Services, with the modifications under ORS 317.655 attributable to the workers’ compensation line of business, and then apportioned in accordance with ORS 317.660 and multiplied by the corporate tax rate set forth in ORS 317.061. In making the apportionment under ORS 317.660 for purposes of this paragraph, the insurance sales factor shall be determined using only items attributable to the workers’ compensation line of business. [Formerly 317.076; 1995 c.786 §14; 2007 c.716 §2]

Note: Section 5, chapter 716, Oregon Laws 2007, provides:

Sec. 5. The amendments to ORS 317.122 and 317.660 by sections 2 and 3 of this 2007 Act apply to tax years beginning on or after January 1, 2007. [2007 c.716 §5]

(Temporary provisions relating to mile-based or time-based motor vehicle insurance)

Note: Sections 2 to 4, chapter 545, Oregon Laws 2003, provide:

Sec. 2. (1) As used in this section:

(a) “Mile-based rating plan” means a rating plan for which a unit of exposure is one mile traveled by the insured motor vehicle.

(b) “Time-based rating plan” means a rating plan for which a unit of exposure is one minute or one hour traveled by the insured motor vehicle.

(c) “Unit of exposure” means a unit that measures the loss exposure assumed by an insurer, the total of such units of which is multiplied by the policy rate, or rates, to produce the policy premium.

(2) A corporation shall be allowed a credit against the taxes that are otherwise due under this chapter or ORS chapter 318 for providing motor vehicle insurance policies in this state that are at least 70 percent based on a mile-based rating plan or a time-based rating plan.

(3) The amount of the credit shall equal $100 for each vehicle insured under a policy described in subsection (2) of this section that is issued in this state during the tax year.

(4) The credit may not exceed $300 for each policy described in subsection (2) of this section that is issued by the taxpayer.

(5) The total amount of credit allowed under this section in a tax year may not exceed the tax liability of the taxpayer and may not be carried forward to another tax year.

(6) In order for credit to be claimed for a policy under this section, the taxpayer must obtain a verified statement from the policyholder stating that the policy for which a credit is claimed covers all vehicles used at the household of the policyholder and owned, leased or regularly operated by the policyholder or by an individual who is legally related to the policyholder or who otherwise regularly shares vehicles with the policyholder.

(7) The credit may not be claimed with respect to a policy for which a credit was allowed in a previous tax year. [2003 c.545 §2]

Sec. 3. Notwithstanding section 2 of this 2003 Act, if a credit claimed under section 2 of this 2003 Act, when added to all previous credits allowed under section 2 of this 2003 Act by all taxpayers for all tax years, exceeds $1 million, the credit shall be disallowed. [2003 c.545 §3]

Sec. 4. Sections 2 and 3 of this 2003 Act apply to tax years beginning on or after January 1, 2005, and before January 1, 2010. [2003 c.545 §4]

(Long Term Enterprise Zones)

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Last modified: August 7, 2008