68th OREGON LEGISLATIVE ASSEMBLY--1995 Regular Session
NOTE: Matter within { + braces and plus signs + } in an
amended section is new. Matter within { - braces and minus
signs - } is existing law to be omitted. New sections are within
{ + braces and plus signs + } .
LC 1171
A-Engrossed
House Bill 2257
Ordered by the House May 12
Including House Amendments dated May 12
Ordered printed by the Speaker pursuant to House Rule 12.00A (5).
Presession filed (at the request of House Interim Committee on
Revenue and School Finance)
SUMMARY
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure.
Extends sunset of tax credits granted for rural medical
practice and bone marrow transplant expense. { + Adds licensed
dentists to persons eligible for rural medical practice credit.
Modifies provisions relating to contributions made to child
development program. Establishes tax credit for seasonal
farmworker housing projects. + }
A BILL FOR AN ACT
Relating to taxes, including but not limited to taxes imposed
upon or measured by income; creating new provisions; and
amending ORS 315.234, 316.143, 316.144, 317.097, 329.385 and
442.563 and section 12, chapter 652, Oregon Laws 1991, section
3, chapter 846, Oregon Laws 1991, section 56, chapter 877,
Oregon Laws 1991, and section 6, chapter 928, Oregon Laws 1991.
Be It Enacted by the People of the State of Oregon:
SECTION 1. Section 56, chapter 877, Oregon Laws 1991, is
amended to read:
{ + Sec. 56. + } (1) Except as provided in subsections (2)
and (3) of this section, the amendments to ORS 316.143, 316.144,
316.146, 442.555, 442.560, { + 442.563 and + } 442.570 { - and
section 7, chapter 893, Oregon Laws 1989, - } by sections 16 to
22 { + , chapter 877, Oregon Laws 1991, + } { - of this Act - }
and the repeal of ORS 317.142 by section 41 { + , chapter 877,
Oregon Laws 1991, + } { - of this Act - } apply to tax years
beginning on or after January 1, 1990 { - , and before January
1, 1995 - } .
(2) The amendments to { - section 7 (2), chapter 893, Oregon
Laws 1989, - } { + ORS 442.563 (2) + } by section 19 { + ,
chapter 877, Oregon Laws 1991, + } { - of this Act - } apply
to tax years of individuals beginning on or after January 1,
1991.
(3) The amendments to ORS 316.143 by section 16 { + , chapter
877, Oregon Laws 1991 + } { - of this Act - } , that create a
new subsection (1)(b) of ORS 316.143 apply to tax years of
individuals beginning on or after January 1, 1991.
SECTION 2. ORS 442.563 is amended to read:
442.563. (1) Subject to ORS 442.560, the Office of Rural Health
shall establish by rule criteria for certifying individuals
eligible for the tax credit authorized by ORS 316.143 { + ,
316.144 or 316.146 + }. Upon application therefor, filed on or
before December 31, { - 1994 - } { + 1996 + }, the office
shall certify individuals eligible for the tax credit authorized
by ORS 316.143. The tax credit authorized under ORS 316.143
applies to tax years beginning on and after January 1, 1990
{ - , and before January 1, 1995 - } .
(2) The classification of rural hospitals for purposes of
determining eligibility under this section shall be the
classification of the hospital in effect on January 1, 1991.
SECTION 3. ORS 316.143 is amended to read:
316.143. (1) A resident or nonresident individual
{ + first + } certified as eligible under { - section 7,
chapter 893, Oregon Laws 1989 - } { + ORS 442.563 before
January 1, 1995 + }, licensed under ORS chapter 677, who is
engaged in the practice of medicine, and who has a rural practice
that amounts to 60 percent of the individual's practice, shall be
allowed an annual credit against taxes otherwise due under this
chapter in the sum of $5,000, not to exceed 10 tax years, during
which the individual retains such practice and membership if the
individual is actively practicing in and is a member of the
medical staff of one of the following hospitals:
(a) A type A hospital designated as such by the Office of Rural
Health;
(b) A type B hospital designated as such by the Office of Rural
Health, so long as the type B hospital is not within the
boundaries of a metropolitan statistical area, or if the hospital
is located within the boundaries of a metropolitan statistical
area, is located 30 or more highway miles from the closest
hospital within the major population center in the metropolitan
statistical area; or
(c) A type C rural hospital, if the Office of Rural Health
makes the findings required by ORS 316.146.
{ + (2) Notwithstanding subsection (1) of this section, a
resident or nonresident individual otherwise eligible for a
credit under this section who is first certified as eligible
under ORS 442.563 on or after January 1, 1995, shall be allowed
an annual credit against taxes otherwise due under this chapter
in the sum of $4,000, not to exceed 10 years, during which the
individual otherwise qualifies for credit under this section. + }
{ - (2) - } { + (3) + } A nonresident shall be allowed the
credit under this section in the proportion provided in ORS
316.117. If a change in the status of a taxpayer from resident to
nonresident or from nonresident to resident occurs, the credit
allowed by this section shall be determined in a manner
consistent with ORS 316.117.
{ - (3) - } { + (4)(a) + } For purposes of this section, an
'individual's practice' shall be determined on the basis of
actual time spent in practice each week in hours or days,
whichever is considered by the Office of Rural Health to be more
appropriate. In the case of a shareholder of a corporation or a
member of a partnership, only the time of the individual
shareholder or partner shall be considered and the full amount of
the credit shall be allowed to each shareholder or partner who
qualifies in an individual capacity.
{ + (b) If an individual applies on or before December 31,
2001, for eligibility for the tax credit allowed by this section
under ORS 442.563 but fails to qualify for the credit for the tax
year of the individual that begins in the calendar year 2001, the
eligibility of the individual for a tax credit under this section
shall cease. The individual not only shall not be allowed the
credit under this section in the tax year beginning in the
calendar year 2001, but also shall not be eligible for a tax
credit under this section in any subsequent tax year. + }
{ - (4) - } { + (5) + } As used in this section, 'type A
hospital, ' ' type B hospital' and 'type C hospital' have the
meaning for those terms provided in ORS 442.470.
SECTION 4. Section 12, chapter 652, Oregon Laws 1991, is
amended to read:
{ + Sec. 12. + } { - Sections 8 and 10 of this Act - }
{ + ORS 315.604 + } and the amendments to ORS 318.031 by section
11 { + , chapter 652, Oregon Laws 1991, + } { - of this Act - }
apply to bone marrow donation expense incurred in tax years
beginning on or after January 1, 1991, and { + on or + } before
{ - January 1, 1995 - } { + December 31, 2001 + }.
SECTION 4a. ORS 316.144 is amended to read:
316.144. A resident or nonresident individual who is certified
as eligible under ORS 442.563, and is licensed as a physician
under ORS chapter 677, registered as a physician assistant under
ORS chapter 677, licensed as a nurse practitioner under ORS
chapter 678 { + , + } { - or - } licensed as a certified
registered nurse anesthetist under ORS chapter 678 { + or
licensed as a dentist under ORS chapter 679 + } is entitled to
the tax credit described in ORS 316.143 even if not a member of
the hospital medical staff if the Office of Rural Health
certifies that the individual:
(1) Has a rural practice that amounts to 60 percent of the
individual's practice; and
(2) If a physician or a physician assistant, can cause a
patient to be admitted to the hospital; and
(3) If a certified registered nurse anesthetist, is employed by
or has a contractual relationship with one of the hospitals
described in ORS 316.143 (1)(a) to (c).
{ + (4) If licensed as a dentist, is certified as eligible
under section 6 of this 1995 Act. + }
SECTION 5. { + Section 6 of this Act is added to and made a
part of ORS 442.550 to 442.570. + }
SECTION 6. { + The Office of Rural Health shall establish by
rule criteria for certifying individuals who are licensed under
ORS chapter 679 as eligible for the tax credit authorized by ORS
316.144. Upon application therefor, filed on or before December
31, 1996, and upon a finding that the applicant is or will be
providing dental services to one or more rural communities and
otherwise meets the eligibility criteria established by the
office, the office shall certify individuals eligible for the tax
credit authorized by ORS 316.144. The tax credit authorized under
ORS 316.144 applies to tax years beginning on and after January
1, 1995. + }
SECTION 7. { + Section 6 of this Act and the amendments to ORS
316.144 by section 4a of this Act apply to applications for
certification beginning on or after January 1, 1995. + }
SECTION 8. ORS 317.097 is amended to read:
317.097. (1) A credit against taxes otherwise due under this
chapter for the taxable year shall be allowed to a lending
institution in an amount equal to the difference between:
(a) The amount of finance charge charged by the lending
institution during the taxable year at an annual rate less than
the market rate for a loan that is made on or after January 1,
1990, and before January 1, 2000, that complies with the
requirements of this section; and
(b) The amount of finance charge that would have been charged
during the taxable year by the lending institution for the loan
for housing construction, development or rehabilitation measured
at the annual rate charged by the lending institution for
nonsubsidized loans made under like terms and conditions at the
time the loan for housing construction, development or
rehabilitation is made.
(2) The maximum difference between the amounts described in
subsection (1)(a) and (b) of this section shall not exceed four
percent of the average unpaid balance of the loan during the tax
year for which the credit is claimed.
(3) { - Any tax credit otherwise allowable under this section
which is not used by the taxpayer in a particular year may be
carried forward and offset against the taxpayer's tax liability
for the next succeeding tax year. Any credit remaining unused in
such next succeeding tax year may be carried forward and used in
the second succeeding tax year, and likewise until the 15th
succeeding tax year. The credit may not be carried forward beyond
the 15th succeeding tax year. - } { + Any tax credit otherwise
allowable under this section that is not used by the taxpayer in
a particular year may be carried forward and offset against the
taxpayer's tax liability for the next succeeding tax year. Any
credit remaining unused in such next succeeding tax year may be
carried forward and used in the second succeeding tax year, and
likewise, any credit not used in that second succeeding tax year
may be carried forward and used in the third succeeding tax year,
and any credit not used in that third succeeding tax year may be
carried forward and used in the fourth succeeding tax year, and
any credit not used in that fourth succeeding tax year may be
carried forward and used in the fifth succeeding tax year, but
may not be carried forward for any tax year thereafter. + }
(4) In order to be eligible for the tax credit allowed under
subsection (1) of this section, the loan shall be:
(a)(A) Made to a qualified borrower;
(B) Used to finance construction, rehabilitation or development
of housing; and
(C) Accompanied by a written certification by the Housing and
Community Services Department that the:
(i) Housing created by the loan is or will be occupied by
households earning less than 80 percent of the area median
income; and
(ii) Full amount of savings from the reduced interest rate
provided by the lending institution is or will be passed on to
the tenants in the form of reduced housing payments, regardless
of other subsidies provided to the housing project; or
(b) Made to an individual or individuals who own the dwelling,
participate in an owner occupied community rehabilitation program
and are certified by the local government or its designated agent
as having an income level at the time the loan is made of less
than 80 percent of the area median income; or
(c) Made to refinance a loan that meets the criteria stated in
paragraph (a) or (b) of this subsection.
(5) In order to be eligible for the tax credit allowed under
subsection (1) of this section, the loan also shall be
accompanied by a written certification by the Housing and
Community Services Department that:
(a) Specifies the period, as determined by the department,
during which the loan is eligible for the tax credit under
subsection (1) of this section; and
(b) States that the loan is within the limitation imposed by
subsection (6) of this section.
(6)(a) The Housing and Community Services Department may
certify loans that are eligible under subsection (4) of this
section if the total { - unpaid balance of all loans eligible
for the credit allowed under subsection (1) of this section does
not exceed $37.5 million - } { + credits attributable to all
loans eligible for credits under subsection (1) of this section
and then outstanding do not exceed $3 million for any tax
year + }. In making loan certifications, the department shall
attempt to distribute the tax credits statewide, but shall
concentrate the tax credits in those areas of the state that are
determined by the State Housing Council to have the greatest need
for affordable housing.
(b) The certification under subsection (5) of this section
shall state the period for which the credit will be allowed,
which shall not exceed 20 years.
{ - (c) As used in paragraph (a) of this subsection, unpaid
balance includes, but is not limited to, the amount of loans that
have been certified but not made, such as the unused portion of a
line of credit. - }
{ - (d) Notwithstanding paragraph (a) of this subsection,
during the period beginning January 1, 1993, through June 30,
1995, the department may certify for credit loans that cause the
total unpaid balance of all loans eligible for credit to exceed
$37.5 million if the total unpaid balance of all loans eligible
for credit upon the certification does not exceed $57
million. - }
(7) The credit allowed in this section shall not be affected by
the applicant's receipt of a credit under section 42 of the
Internal Revenue Code (low-income housing tax credit program).
(8) A loan meeting the requirements of subsections (4) and (5)
of this section may be sold to a qualified assignee with or
without the lending institution's retaining servicing of the loan
so long as a designated lending institution maintains records
annually verified by a loan servicer that establish the amount of
tax credit earned by the taxpayer throughout each year of
eligibility.
(9) As used in this section, the following definitions shall
apply:
(a) 'Annual rate' means the yearly interest rate specified on
the note, and not the annual percentage rate, if any, disclosed
to the applicant to comply with the federal Truth in Lending Act.
(b) 'Finance charge' means the total of all interests, loan
fees and other charges related to the cost of obtaining credit
and includes any interest on any loan fees financed by the
lending institution.
(c) 'Lending institution' means any bank, mortgage banking
company, federal savings bank, savings bank, stock savings bank,
savings and loan association, national bank or federal savings
and loan association maintaining an office in this state.
'Lending institution' also includes any community development
corporation, as defined in ORS 708.444 (4), that is organized
under the Oregon Nonprofit Corporation Law, and that meets the
conditions described in ORS 708.444 (2)(a) and (e).
(d) 'Qualified assignee' means any investor participating in
the secondary market for real estate loans.
(e) 'Qualified borrower' means any borrower that is a
sponsoring entity that has a controlling interest in the real
property that is financed by the loan described in subsection (4)
of this section. Such a controlling interest includes, but is not
limited to, a controlling interest in the general partner of a
limited partnership that owns the real property.
(f) 'Sponsoring entity' means a nonprofit corporation, state
governmental entity, local unit of government as defined in ORS
466.706, housing authority or any person as defined in ORS
174.100, including, but not limited to, an employer making
housing available to low-income employees and other low-income
persons, provided that the person has agreed to restrictive
covenants imposed by a nonprofit corporation, state governmental
entity, local unit of government or housing authority.
(10) Notwithstanding any other provision of law, a lending
institution that is a community development corporation as
defined in ORS 708.444 (4), that is organized under the Oregon
Nonprofit Corporation Law, and that meets the conditions
described in ORS 708.444 (2)(a) and (e), may transfer any part or
all of any tax credit arising under subsection (1) of this
section to one or more other lending institutions that are
stockholders or members of the community development corporation
or that otherwise participate through the community development
corporation in the making of one or more loans that generate the
tax credit under subsection (1) of this section.
(11) The lending institution shall file an annual statement
with the Housing and Community Services Department, specifying
that it has conformed with all requirements imposed by law to
qualify for this tax credit.
(12) The Housing and Community Services Department and the
Department of Revenue may adopt rules to carry out the provisions
of this section.
SECTION 9. { + The amendments to ORS 317.097 by section 8 of
this Act apply to tax years beginning on or after January 1,
1995. + }
SECTION 10. Section 3, chapter 846, Oregon Laws 1991, is
amended to read:
{ + Sec. 3. + } { - Section 2 of this Act - } { + ORS
316.153 + } applies to tax years beginning on or after January 1,
1992, and { + on or + } before
{ - January 1, 1996 - } { + December 31, 2001 + }.
SECTION 11. { + Section 12 of this Act is added to and made a
part of ORS 90.500 to 90.940. + }
SECTION 12. { + (1) If a facility is closed or a portion of a
facility is closed, resulting in the termination of the rental
agreement between the landlord of the facility and a tenant
renting space for a manufactured dwelling, whether because of the
exercise of eminent domain, by order of the state or local
agencies, or as provided under ORS 90.630 (4), the landlord shall
provide notice to the tenant of the tax credit provided under ORS
316.153. The notice shall state the eligibility requirements for
the credit, information on how to apply for the credit and any
other information required by the Mobile Home Park Ombudsman by
rule.
(2) The notice described under subsection (1) of this section
shall be sent to a tenant affected by a facility closure on or
before:
(a) The date notice of rental termination must be given to the
tenant under ORS 90.630 (4), if applicable; or
(b) In the event of facility closure by exercise of eminent
domain or by order of state or local agency, within 15 days of
the date the landlord received notice of the closure.
(3) The landlord shall forward to the Mobile Home Park
Ombudsman a list of the names and addresses of tenants to whom
notice under this section has been sent. + }
SECTION 13. { + The Mobile Home Park Ombudsman may adopt rules
to implement section 12 of this Act, including rules specifying
the form and content of the notice described under section 12 of
this Act. + }
SECTION 14. ORS 315.234 is amended to read:
315.234. (1) A tax credit against the taxes otherwise due under
ORS chapter 316 (or, if the taxpayer is a corporation, under ORS
chapter 317 or 318) is allowed for contributions actually made
during the tax year to:
(a) A school district child development program that has been
approved by the Department of Education under ORS 329.385; or
(b) A school district student-parent program that has been
approved by the Department of Education under ORS 329.385.
(2) The amount of the credit is 50 percent of the sum of the
contributions made by the taxpayer during the tax year to both
programs. The amount of the credit shall not exceed $5,000 for
each program location. In the case of personal income tax, the
credit is allowed to either a resident or a nonresident taxpayer,
without proration. If separate returns are filed, each spouse may
claim a share of the credit, determined as if a joint return were
made, in proportion to the contribution of each.
(3) The credit is allowable only if { + :
(a) + } The contributions are made exclusively for use by a
program approved under ORS 329.385 { + ; and
(b) The claim for credit filed with the Department of Revenue
is accompanied by a certificate of contribution approval issued
by the Department of Education under ORS 329.385 + }.
(4) The credit is allowable only for contributions made after
the date the Department of Education approves the program.
(5) If, for the tax year, a deduction is allowable under ORS
chapter 316, 317 or 318 for the same contributions that are used
to determine the amount of the credit, the deduction shall be
reduced by the amount of the credit allowed.
{ + (6) The amount of the credit shall not exceed the tax
liability of the taxpayer for the tax year for which the credit
is claimed. + }
{ - (6) - } { + (7) + } The Department { + of Revenue + },
with the assistance of the Department of Education, shall adopt
rules to carry out the purposes of this section, including but
not limited to rules setting forth requirements for
substantiation of contributions and use of contributions.
SECTION 15. Section 6, chapter 928, Oregon Laws 1991, is
amended to read:
{ + Sec. 6. + } { - Sections 2 and 4 of this Act - }
{ + ORS 315.234 + } and the amendments to ORS 318.031 by section
5 { + , chapter 928, Oregon Laws 1991, + } { - of this Act - }
apply to tax years beginning on or after January 1, 1991, and
{ + on or + } before { - January 1, 1996 - } { + December
31, 2001 + }.
SECTION 16. ORS 329.385 is amended to read:
329.385. (1) The Department of Education shall prepare
operating guides for child development programs and for
student-parent programs applicable to programs under ORS 315.234,
318.031 and this section that are consistent with requirements
imposed by the State Board of Education.
(2) The Department of Education shall review applications for
approval of child development programs and student-parent
programs and may approve up to 20 child development and up to 20
student-parent programs after considering:
(a) The educational adequacy and type of programs.
(b) The number of students and children who are to be served by
the program.
(c) The availability of trained personnel and facilities.
(d) The need for the programs in the applying district.
(3) In approving applications for child development programs,
the department shall require that the school district use the
contributions described in ORS 315.234 and 318.031 for child
development curriculum and in the formulation and initiation of
onsite child development centers. Each center must be able to
accommodate not more than 30 full-time equivalent spaces for
children, distributed according to needs of the community.
(4) In approving applications for student-parent programs, the
department shall require that the school district use the
contributions described in ORS 315.234 and 318.031 for
appropriate education for student-parents leading to graduation
and in the formulation and development of appropriate onsite
child care centers. Each center must be able to accommodate not
more than 30 full-time equivalent spaces for children,
distributed according to the needs of the student-parents.
{ + (5) A school district that has obtained approval for a
child development program or a student-parent program shall file
a quarterly report with the department that lists the amounts of
contributions made to the program, the names and addresses of the
contributors and the dates of contributions.
(6)(a) The department, within 30 days of the receipt of a
report of contributors described under subsection (5) of this
section, shall send to each contributor a certificate of
contribution approval listing the amount of the approved
contribution to the extent the total amount of contributions for
which the department has issued certificates of contribution
approval for the calendar year equals $120,000, and thereafter
shall not issue any certificates of contribution approval for the
calendar year.
(b) Certificates of contribution approval shall be issued in
the chronological order in which contributions were received by
participating school districts. + }
{ - (5) - } { + (7) + } As used in this section:
(a) 'Child development program' means an educational program
that conforms to standards adopted by the State Board of
Education and that consists of an education component and a day
care component.
(b) 'Student-parent program' means an educational program that
conforms to standards adopted by the State Board of Education and
that consists of education for the student-parent and day care
for the student-parent's child.
SECTION 17. { + The amendments to ORS 315.234 and 329.385 by
sections 14 and 16 of this Act apply to tax years beginning on or
after January 1, 1996. + }
SECTION 18. { + Section 19 of this Act is added to and made a
part of ORS chapter 315. + }
SECTION 19. { + (1) As used in this section:
(a) 'Condition of habitability' means a condition that is in
compliance with the applicable provisions of the state building
code under ORS chapter 455 and the rules adopted thereunder.
(b) 'Eligible costs' includes finance costs, construction
costs, excavation costs and permit costs and excludes land costs.
(c) 'Rehabilitation' means to restore and reinstate a building
to a condition of habitability.
(d) 'Seasonal farm worker' means any person who, for an agreed
remuneration or rate of pay, performs temporary labor for another
in the production of farm products or in the planting,
cultivating or harvesting of seasonal agricultural crops or in
the forestation or reforestation of lands, including but not
limited to the planting, transplanting, tubing, precommercial
thinning and thinning of trees and seedlings, the clearing,
piling and disposal of brush and slash and other related
activities.
(e) 'Seasonal farm-worker housing' means housing that is
located within this state and that is limited to occupancy by
seasonal farm workers and their immediate families for no more
than nine months of the year.
(f) 'Seasonal farm-worker housing project' means construction
or rehabilitation of seasonal farm-worker housing.
(2) A resident individual is allowed a credit against the taxes
otherwise due under ORS chapter 316 or, if the taxpayer is a
corporation, the credit shall be allowed against taxes otherwise
due under ORS chapter 317. The amount of the credit shall be
equal to:
(a) 50 percent of the eligible costs actually paid or incurred
to complete a seasonal farm-worker housing project that is
completed during a tax year beginning before January 1, 1997.
(b) 40 percent of the eligible costs actually paid or incurred
to complete a seasonal farm-worker housing project that is
completed during a tax year beginning on or after January 1,
1997, and before January 1, 1999.
(c) 30 percent of the eligible costs actually paid or incurred
to complete a seasonal farm-worker housing project that is
completed during a tax year beginning on or after January 1,
1999.
(3) The credit allowed under subsection (2) of this section
shall be taken in five equal installments over a period of five
consecutive tax years beginning in the tax year of the taxpayer
during which the project is completed.
(4) Except as provided under subsection (5) of this section,
the credit allowed in any one year shall not exceed the tax
liability of the taxpayer.
(5) Any tax credit otherwise allowable under this section that
is not used by the taxpayer in a particular tax year may be
carried forward and offset against the taxpayer's tax liability
for the next succeeding tax year. Any credit remaining unused in
such next succeeding tax year may be carried forward and used in
the second succeeding tax year, and likewise any credit not used
in that second succeeding tax year may be carried forward and
used in the third succeeding tax year, and any credit not used in
that third succeeding tax year may be carried forward and used in
the fourth succeeding tax year, and any credit not used in that
fourth succeeding tax year may be carried forward and used in the
fifth succeeding tax year, but may not be carried forward for any
tax year thereafter.
(6)(a) The credit provided by this section is not in lieu of
any depreciation or amortization deduction for the project to
which the taxpayer otherwise may be entitled under ORS chapter
316 or 317 for such year.
(b) The taxpayer's adjusted basis for determining gain or loss
shall not be further decreased by any tax credits allowed under
this section.
(7)(a) If the taxpayer is a person who is not, and will not be,
the owner or operator of the seasonal farm-worker housing, the
taxpayer is entitled to the credit allowed under this section
only if, upon completion of the seasonal farm-worker housing
project and first occupation by farm workers, the housing
complies with all safety or health laws, rules, regulations and
standards applicable for farm-worker housing.
(b) If the taxpayer is a person who is, or will be, the owner
or operator of the seasonal farm-worker housing at any time
during the period for which the credit is claimed, the housing
must be inspected by the Department of Consumer and Business
Services prior to occupancy and must comply with all occupational
safety or health laws, rules, regulations and standards.
(c) For purposes of this section, 'owner' does not include a
person whose only interest in the housing is as holder of a
security interest.
(8)(a) Pursuant to the procedures for a contested case under
ORS 183.310 to 183.550, the department may order the disallowance
of the credit allowed under this section if it finds, by order,
that:
(A) The credit was obtained by fraud or misrepresentation; or
(B) In the event that an owner or operator claims or claimed
the credit, the taxpayer has failed substantially to comply with
the occupational safety or health laws, rules, regulations or
standards.
(b) If the tax credit is disallowed pursuant to this
subsection, notwithstanding ORS 314.410 or other law, all prior
tax relief provided to the taxpayer shall be forfeited and the
department shall proceed to collect those taxes not paid by the
taxpayer as a result of the prior granting of the credit.
(c) If the tax credit is disallowed pursuant to this
subsection, the taxpayer shall be denied any further credit
provided under this section, in connection with the seasonal
farm-worker housing project, as the case may be, from and after
the date that the order of disallowance becomes final.
(9) In the event that the seasonal farm-worker housing is
destroyed by fire, flood, natural disaster or act of God before
all of the credit has been used, the taxpayer may nevertheless
claim the credit as if no destruction had taken place. In the
event of fire, if the fire chief of the fire protection district
or unit determines that the fire was caused by arson, as defined
in ORS 164.315 and 164.325, by the taxpayer or by another at the
taxpayer's direction, then the fire chief shall notify the
department. Upon conviction of arson, the department shall
disallow the credit in accordance with subsection (8) of this
section.
(10)(a) A nonresident individual shall be allowed the credit
computed in the same manner and subject to the same limitations
as the credit allowed a resident by this section. However, the
credit shall be prorated using the proportion provided in ORS
316.117.
(b) If a change in the taxable year of a taxpayer occurs as
described in ORS 314.085, or if the department terminates the
taxpayer's taxable year under ORS 314.440, the credit allowed by
this section shall be prorated or computed in a manner consistent
with ORS 314.085.
(c) If a change in the status of a taxpayer from resident to
nonresident or from nonresident to resident occurs, the credit
allowed by this section shall be determined in a manner
consistent with ORS 316.117.
(11) The department may adopt rules for carrying out the
provisions of this section. + }
SECTION 20. { + Section 19 of this Act applies to seasonal
farm-worker housing projects completed in tax years that begin on
or after January 1, 1996, and before December 31, 2001. + }
SECTION 21. { + Section 22 of this Act is added to and made a
part of ORS chapter 317. + }
SECTION 22. { + (1) As used in this section:
(a) 'Commercial lending institution' means a bank, mortgage
banking company, trust company, savings bank, savings and loan
association, credit union, national banking association, federal
savings and loan association or federal credit union maintaining
an office in this state.
(b) 'Seasonal farm-worker housing' has the meaning given the
term under section 19 of this 1995 Act.
(2) A commercial lending institution shall be allowed a credit
against the taxes otherwise due under this chapter for the tax
year on loans to finance only costs directly associated with
construction or rehabilitation of seasonal farm-worker housing
if, at the time the loan is made, the borrower certifies, to the
satisfaction of the lender, that upon completion of the
construction or rehabilitation and first occupation by seasonal
farm workers, the housing will comply with all safety or health
laws, rules, regulations and standards applicable for seasonal
farm-worker housing. The amount of the credit shall be equal to:
(a) 50 percent of the interest income earned during the tax
year on loans certified during a tax year beginning before
January 1, 1997.
(b) 40 percent of the interest income earned during the tax
year on loans certified during a tax year beginning on or after
January 1, 1997, and before January 1, 1999.
(c) 30 percent of the interest income earned during the tax
year on loans certified during a tax year beginning on or after
January 1, 1999.
(3) The credit allowed under this section shall apply only to
loans to construct or rehabilitate seasonal farm-worker housing
located within the state.
(4) The credit allowed in any one year shall not exceed the tax
liability of the taxpayer.
(5) If the loan has a term of more than 10 years, then the
credit shall be allowed only for the tax year of the taxpayer
during which the loan is made and the nine tax years immediately
following.
(6) The credit allowed under this section shall not apply to
loans in which the interest rate charged exceeds 13-1/2 percent
per annum.
(7) The credit allowed under this section shall apply only to
interest income from the loan and shall not apply to any other
loan fees or other charges collected by the commercial lending
institution with respect to the loan.
(8) The credit allowed under this section shall only apply to
interest income actually collected by the commercial lending
institution during the tax year.
(9)(a) Except as provided in paragraph (b) of this subsection,
if the commercial lending institution sells the loan to another
commercial lending institution as defined in subsection (1) of
this section, then the credit shall pass to the assignee or
transferee of the loan, subject to the same conditions and
limitations as set forth in this section.
(b) A commercial lending institution may assign, sell or
otherwise transfer the loan to another person and retain the
right to claim the credit granted under this section if the
commercial lending institution also retains responsibility for
servicing the loan. + }
SECTION 23. { + Section 22 of this Act applies to loans made
in tax years that begin on or after January 1, 1996, and before
December 31, 2001. + }
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