ANNOUNCEMENT 02 Jul 2013In July 2013, a US state government announced changed incentives for foreign investors entering the country.
NUMBER OF INTERVENTIONS
On July 2, 2013, the governor of Oregon signed into law a bill (HB3477) that has the effect of making previously tax-exempt banking activities subject to state taxes. Those exemptions had been available to certain foreign and other out-of-state financial institutions. The law repeals § 317.057 of the Oregon statutes (http://www.oregonlaws.org/ors/317.057), which had provided that extranational institutions, foreign associations organized to transact savings and loan business under federal law or under the laws of another state or territory of the United States, and out-of-state banks that engaged in certain activities were not subject to any tax, license fee or charge for the privilege of doing business in Oregon or to any tax measured by net or gross income. The previously tax-exempt activities, as provided in § 713.300 (http://www.oregonlaws.org/ors/713.300), included the following activities: "'A'n out-of-state bank, extranational institution or foreign association, without being authorized to transact banking business or savings and loan business in this state, may take, acquire, hold and enforce notes secured by mortgages or trust deeds and make commitments to purchase such notes. The out-of-state bank, extranational institution or foreign association may foreclose the mortgages or trust deeds in the courts of this state, acquire the mortgaged property, hold, own and operate the property for a period not exceeding five years and dispose of the property. The activities authorized under this subsection by an out-of-state bank, extranational institution or foreign association do not constitute transacting business in this state for the purposes of ORS chapter 60."