1 / 38

OREGON INCOME TAXES

OREGON INCOME TAXES. Personal Income Tax. Corporate Excise Tax. Surplus Kicker. Proposed Legislative Tax Changes. Oregon Income and Property Taxes. General Fund Revenues. 1999-01 Biennium: Total $10.1 billion. 2001-03 Biennium: Total $9.2 billion. ($ 755 million). ($ 395 million).

Patman
Download Presentation

OREGON INCOME TAXES

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. OREGON INCOME TAXES Personal Income Tax Corporate Excise Tax Surplus Kicker Proposed Legislative Tax Changes

  2. Oregon Income and Property Taxes

  3. General Fund Revenues 1999-01 Biennium: Total $10.1 billion 2001-03 Biennium: Total $9.2 billion ($ 755 million) ($ 395 million) ($ 8.7 billion) ($ 8.1 billion)

  4. OREGON INCOME TAXES Personal Income Tax

  5. Oregon Personal Income Tax Federal Adjusted Gross Income + • Oregon Additions: • Interest on non-Oregon bonds... - • Oregon Subtractions: • Federal income tax up to $3250... - • Deductions • Standard either: Itemized • $1,640 single • $3,280 joint = Oregon Taxable Income

  6. TOP FIVE OR SUBTRACTIONS–Tax Year 2000: Total Full-Year Subtractions = $5.1 billion SUBTRACTION $ Amount (millions) • Federal Income Tax $2,415 • Social Security Income $1,104 • Federal Pension Income $ 719 • Oregon Tax Refund $ 345 • Interest from U.S. Bonds $ 306

  7. TOP FIVE FEDERAL ITEMIZED DEDUCTIONS– Tax Year 2000: Total Full-Year Deductions = $9.1 billion DEDUCTION $ Amount (millions) • Home Mortgage Interest $ 3,862 • Property Taxes $ 1,065 • Other charitable contributions $ 1,048 • Medical and Dental Expenses $ 693 • Charitable contributions: Education $ 215

  8. Oregon Personal Income Tax Oregon Taxable Income x Tax Rates = Tax Before Credits - • Tax Credits • $145 personal credit... = TAX

  9. 2002 Personal IncomeTax Rates

  10. TOP FIVE OR CREDITS –Tax Year 2000: Total Full-Year Credits= $423 million CREDIT $ Amount (millions) • Personal Exemption $ 361 • Tax Paid to Other States $ 17 • Earned Income $ 10 • Working Family $ 7 • Child Care $ 6.6

  11. Income Tax Credits 2000: $422.6 million

  12. Income Tax Rate and Credit Rate by Income 2000 Returns

  13. Distribution of Tax Returns Total 2000 Returns: 1.6 million Total 1990 Returns: 1.3 million

  14. Components of AGI 1990: $35 billion

  15. Components of AGI 2000: $66 billion (full-year returns)

  16. Change in Major Components of AGI- Tax Year 2000 and 2001* * Preliminary Data as of Dec. 2002

  17. Distribution of AGI Components

  18. Distribution of AGI Components 2000 AGI: $66 billion (full-year returns)

  19. Average AGI 2000 Average AGI: $43,615 1990 Average AGI: $26,610

  20. Average AGI By County - 2000 Polk 40,853 Statewide Avg. AGI = $43,165 $0 to $29,999 $30,000 to $40,000 $40,000 to $50,000 Above $50,000

  21. Average Tax by County - 2000 Columbia Statewide Avg. Tax = $2,416 $0 to $1,499 $1,500 to $1,999 $2,000 to $2,499 Above $2,500

  22. Average Tax by County - 1990 Statewide Avg. Tax = $1,404 $0 to $1,499 $1,500 to $1,999 $2,000 to $2,499 Above $2,500

  23. Number of Tax Returns:Tax Withheld, Estimated Payments & Refunds - 2000

  24. Tax Withheld, Estimated Payments & Refunds - 2000 Total Tax Due: $4.2 billion

  25. Breakdown by Industry and Month of Tax Withholdings Index – 1998-2002

  26. Industry Sectors With a Decline in Withholdings Between July 2001 and Nov. 2002 TOTAL -$238,111

  27. Part Year and Nonresident Taxpayers State has nexus to tax income earned by residents and income from Oregon sources earned by nonresidents. Applies to: Full Year Residents Part Year Residents • lived in Oregon but moved out • lived elsewhere but moved to Oregon Nonresidents • absentee landlord • commute from Vancouver, WA

  28. Part Year and Nonresident Taxpayers Example: Total Income Less: Exempt Income Plus: Additions Less: Subtractions Adjusted Gross Income Federal $20,000 1,000 500 200 $19,300 Oregon $5,000 0 0 50 $4,950 Oregon percentage ($4,950/$19,300) = p = 25.65%

  29. Part-Year Resident $19,300 - 7,250 12,050 923 237 - 36 $201 Federal AGI Less: Deductions 5,000 Federal Tax 2,250 Total Deductions Taxable Income: Tax before credits: Multiply by p Less Credit ($145) x p TAX DUE

  30. Nonresident $4,950 - 1,860 3,090 170 - 36 $134 Oregon AGI Less: Deductions 5,000 Federal Tax 2,250 Total 7,250 Multiply by p Taxable Income: Tax before credits: Less Credit ($145) x p TAX DUE

  31. Check-off Donations Total (2000) = $585,000

  32. SURPLUS KICKER&POTENTIAL CHANGES in Federal and State Income Tax Laws

  33. 2% Kicker At the end of a biennium if …... exceed COS estimate by 2% or more…. Entire excess is credited to CORP Taxpayers 1. CORP Income Tax Revenues 2. Other General Fund Revenues exceed COS estimate by 2% or more…. Entire excess is refunded to PI Taxpayers

  34. History of Surplus Kicker Refunds(1979/81 – 2001/03)

  35. Measure 28 • Passed during 5th special session • Increases top personal income tax rate to 9.5% • Increases the corporate tax rate to 6.93% • Increases tax rates for 3 years beginning tax year 2002 • Average tax increase is $114 per year • Raises $313 million in 2002-03 fiscal year • Raises $414 million in 2003-05 biennium

  36. Bush’s Proposed Economic Recovery Plan • Eliminate double taxation on dividends • Accelerate the 10% federal tax bracket expansion • Accelerate the reduction in income tax rates • Accelerate the reduction of the marriage penalty • Increase Federal child care credit by $400 • Increase business expensing threshold • Provide similar tax relief to alternative minimum tax returns

  37. DIVIDEND INCOME AND NUMBER OF RETURNS Statewide – Tax Year 2000 Dividend Income = $1.5 billion Number of Returns w/Dividends = 388,461 Total Dividend Estimated Tax = $105 million

More Related