Oregon Advisory Opinions March 13, 1970: OAG 70-23 (March 13, 1970)

OAG 70-23.

Chapter 432 [1969] Oregon Laws 784 provides for a credit against personal income tax in taxable years beginning on and after January 1, 1970 "for contributions made in the taxable year to political parties and their candidates whose names are listed on official ballots in any election held in Oregon." Credit is also allowed for contributions to organizations supporting or opposing ballot measures or questions.

This statute does not require that a contribution be made directly (that is, without intervening agency) to a political party or its candidate. This is evidenced by language in Section 2(2) thereof which permits receipts from, among other sources, the "agent" to whom the contribution was made for the purpose of substantiating eligibility for the tax credit.

Thus, if a person contributed to a political party's candidate by way of giving the contribution to a committee which was in fact acting as an agent to raise contributions for that candidate's campaign (the committee therefor serving in effect merely as an intermediary for the candidate, who ultimately receives the contribution), the tax credit would be allowable.

On the other hand, if the contribution were made to a committee (other than a political party's committee) which was not an agent for the candidate for whom the contribution were intended, it would be considered a contribution only to the committee itself, rather than to a political party or its candidate, and the tax credit would not be allowable. We have advised the Department of Revenue that a committee which purports to act as "agent" of a political party or its candidate or a ballot measure organization should possess written evidence of such agency for audit purposes.

Inquiry has also been made as to whether there would

be any distinction under Chapter 432, in the case of direct aid to a candidate by a committee to whom the contribution was given, between aid in the form of cash given to the candidate's fund raising committee and aid in the form of purchase of materials, services, or advertisements for a candidate. Oregon election law (providing for financial statements) includes under the term "contributions" only "money received" and "items of value received." ORS 260.075(2). "Items of value" would be limited to tangible items whose value can be ascertained and, in our judgment, should not include services because the value or extent thereof would be speculative. Indeed, the Department of Revenue has long held with respect to charitable contributions that personal services are not deductible for income tax purposes. See Reg. 316.340(3). There is no sensible reason why a similar rule should not be applicable in the case of political contributions.

It is therefore concluded that "contributions" as used in Chapter 432 would only include money and tangible items of value received.