ORS Chapter 316 — Personal Income Tax

ORS 316.792. Military pay. (1) As used in this section: (a) Armed Forces of the United States means all regular and reserve components of the United States Army, Navy, Air Force, Marine Corps and Coast Guard and other uniformed services under the orders of the President of the United States. (b) Military pay means pay for active duty, inactive duty, training and reserve component duty, including state active duty, and any other compensation, other than retirement pay or pension, paid by the Armed Forces of the United States to a member of the Armed Forces of the United States. (c) Reserve component duty includes duty performed as a member of the reserve components that is not federal active duty. (d) Reserve components includes all National Guard and reserve departments of the Armed Forces of the United States. (e) Uniformed services includes the commissioned corps of the National Oceanic and Atmospheric Administration and the United States Public Health Service. (2) There shall be subtracted from federal taxable income military pay received for: (a) Service performed outside this state in the year of initial draft or enlistment or in the year of discharge. (b) Service performed outside this state during any month beginning on or after August 1, 1990, and before the date designated by the President of the United States as the date of termination of combatant activities in the Persian Gulf Desert Shield area. (c) Service by a member of the reserve components, if: (A) The military pay is for service performed when the taxpayer is away from the home of the taxpayer overnight; (B) The taxpayer is required to be away from home overnight in order to perform the service; and (C) The service is of a duration of at least 21 consecutive days, although the consecutive days need not be in the same tax year. (d) Service performed by a member of the Oregon National Guard while in active service of the state or on state active duty, as defined in ORS 396.005. (e) Service not otherwise qualified for a subtraction under paragraphs (a) to (d) of this subsection, not to exceed $6,000 per year. (3) The total amount subtracted under this section may not exceed the taxpayers total military pay included in federal taxable income for the tax year. [2013 c.194 2; 2023 c.490 6] Note: Section 7, chapter 490, Oregon Laws 2023, provides: Sec. 7. The amendments to ORS 316.792 by section 6 of this 2023 Act apply to tax years beginning on or after January 1, 2021. [2023 c.490 7] (Exemption for Certain Sales or Closures of Manufactured Dwelling Parks) Note: Sections 6 and 7, chapter 826, Oregon Laws 2005, provide: Sec. 6. Amounts received as a result of the sale of a manufactured dwelling park are exempt from the tax imposed by this chapter [ORS chapter 316]: (1) If the sale is made to a corporate entity formed by the tenants of the park, or by a nonprofit corporation or housing authority, as described in ORS 90.844. (2) If the manufactured dwelling park has been destroyed by a natural disaster, as defined in section 2, chapter 260, Oregon Laws 2021 [197.488], and the sale is made to a nonprofit corporation or housing authority that will redevelop the site as a manufactured dwelling park. [2005 c.826 6; 2014 c.89 16; 2015 c.217 9; 2021 c.528 21] Sec. 7. (1) Section 6, chapter 826, Oregon Laws 2005, applies to tax years beginning on or after January 1, 2006, and before January 1, 2026. (2) The amendments to section 6, chapter 826, Oregon Laws 2005, by section 9, chapter 217, Oregon Laws 2015, apply to tax years beginning on or after January 1, 2015, and before January 1, 2026. (3) The amendments to section 6, chapter 826, Oregon Laws 2005, by section 21 of this 2021 Act apply to tax years beginning on or after January 1, 2021, and before January 1, 2026.