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 3223
House Bill 3005
Sponsored by Representative WOOTEN (at the request of Oregon
Breast Cancer Coalition)
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 as
introduced.
Provides that charity or similar organization listed on Oregon
tax return to receive contributions by means of checkoff be
listed for no more than four tax years. Provides that
organization may again be listed after expiration of four years
after removal from list.
A BILL FOR AN ACT
Relating to tax checkoff programs; creating new provisions; and
amending ORS 305.720, 305.740 and 305.749.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 305.720 is amended to read:
305.720. Subject to ORS 305.710 and 305.745, an entity
qualifies for listing on the Oregon individual income tax return
to receive contributions by means of checkoff if:
(1) The entity supports private charitable causes or engages in
public activities that are consistent with policies and programs
of the state and:
(a) Checkoff resources are used to augment existing programs or
provide new funding to related activities of proven value.
Checkoff funds are not to be used to meet the administrative
expenses of the entity;
(b) Programs funded by checkoff resources must result in
substantial and direct benefits to the human and natural
resources of the state that the commission determines are
unlikely to occur under existing public and private programs; and
(c) After checkoff resources are received by the entity, the
entity shows a pattern over several years of increasing its total
revenues from other than checkoff sources or reaches the level
where no more than 50 percent of its revenues are from checkoff
sources.
(2) The entity is qualified to receive contributions that are
tax deductible under the following:
(a) Section 170 of the Internal Revenue Code (relating to
contributions and gifts to charitable and governmental entities).
(b) Section 501(k) of the Internal Revenue Code (relating to
contributions to certain organizations providing child care).
(c) Section 7871 of the Internal Revenue Code (relating to
contributions to Indian tribal governments).
(d) Any other federal law allowing a deduction from federal
individual income tax for charitable contributions to an entity
classified by rule of the department as being an entity belonging
to the general class described in paragraphs (a) to (c) of this
subsection.
(3) The entity makes application for listing within the time
and in the manner prescribed by ORS 305.725.
(4) The entity files a financial report, and other information,
with the commission as described under ORS 305.730.
(5) The entity received $50,000 or more in checkoff
contributions in at least one of the two tax years immediately
preceding the tax year for which it is to be listed on the Oregon
income tax return. This subsection does not apply if the entity
has not been included on the Oregon personal income tax return
for each of the two tax years immediately preceding the tax year
for which determination for purposes of this subsection is being
made.
{ + (6) The entity was not listed on the Oregon tax return
for checkoff in any one of the four tax years immediately
preceding the tax year for which it is being considered for
listing. + }
SECTION 2. ORS 305.740 is amended to read:
305.740. (1) Prior to the end of 1990 and prior to the end of
each even-numbered calendar year thereafter, and subject to
subsection (2) of this section, the commission shall examine the
list of entities included on the Oregon personal income tax
return for the tax year beginning in the calendar year
immediately preceding and shall determine if each entity listed
is qualified under ORS 305.710 and 305.720 to be listed on the
Oregon individual income tax return to receive contributions by
means of checkoff for the ensuing biennial years.
(2)(a) The department shall determine for each tax year if each
entity listed for checkoff on the Oregon tax return for the
preceding tax year meets the criteria under ORS 305.720 (5)
{ + and (6) + } and shall notify the commission, if and when
appropriate. In determining the amount received in contributions
from checkoffs for an entity for a particular tax year:
(A) For purposes of meeting the $50,000 minimum contribution,
the amount received in contributions from checkoffs in the amount
shown in the department's financial statement for the fiscal year
shall be counted.
(B) The amount of receipts shall not be reduced by the amount
of administrative expense referred to in ORS 305.747.
(b) The determination of the department made under paragraph
(a) of this subsection is final and may not be appealed.
Notwithstanding subsection (1) of this section, an entity that
has not met the criteria of ORS 305.720 (5) { + and (6) + }
shall not be listed on the Oregon tax return for checkoff.
(3)(a) If the commission, for any reason other than { + those
specified in ORS 305.720 (5) or (6) + } { - that contributions
by means of checkoff did not reach the amount required under ORS
305.720 (5) - } , determines that an entity included on the list
certified under ORS 305.715 (2) for the prior biennial years is
not qualified to be included, or that an entity making
application is not qualified to be included, or is not included
because of determinations under ORS 305.710, on the list for the
ensuing biennial years, the commission shall so order.
(b) The commission shall serve upon the entity, either by
personal service or by certified mail, return receipt requested,
the order issued under paragraph (a) of this subsection. The
order shall comply with the applicable notice requirements of ORS
183.415.
(c) The entity or person or persons to whom the order is
directed shall have 20 days from the date of personal service or
mailing of the notice in which to make written application to the
commission for a contested case hearing to be held in accordance
with ORS 183.415 to 183.500 before the commission or the designee
of the commission. In any hearing before the designee of the
commission, the designee is authorized to issue the final order
in the matter.
(d) Upon failure to request a contested case hearing within the
time specified, the order shall become final.
(e) Appeal may be taken from a final order as specified under
ORS 183.480 to 183.497.
(f) A final order issued by the commission, the designee of the
commission, the Court of Appeals or the Oregon Supreme Court
determining that an entity be included on the list certified
under ORS 305.715 (2) may require only that the entity be
included on the list next certified after the effective date of
the final order.
SECTION 3. ORS 305.749 is amended to read:
305.749. Except ORS 305.690 to 305.753 and as otherwise
specifically provided, the following are applicable to the
various checkoff programs established under ORS { - 305.690 to
305.753, - } 496.380 and ORS chapter 316:
(1) Subject to subsection (4) of this section, the dollar
amounts of contributions made by taxpayer checkoff on Oregon tax
returns shall be remitted by the Department of Revenue to the
State Treasurer who shall deposit them to a suspense account
established under ORS 293.445.
(2) Of the contributions so deposited, a portion is
continuously appropriated for use to reimburse the General Fund
for costs incurred in administering the various checkoff
programs. No more than 10 percent of the moneys generated by
each checkoff program per fiscal year ending June 30 may be
appropriated under this subsection.
(3) The remainder of the contributions shall be credited by the
department to each checkoff program in proportion to the total
amounts checked off for the tax year, the proportions to be
determined on the basis of tax returns processed as of the June
30 following the tax year. The amounts so credited to each of the
checkoff programs are continuously appropriated to the department
for payment to the checkoff designee, or shall be transferred by
the department to the checkoff designee, as specified under the
law governing the particular checkoff program. The department may
adopt rules governing the crediting and payment or transfer of
checkoff moneys. In addition to any other provision, if adopted,
the rules shall specify the time that the contributions to a
program so credited are to be paid or transferred by the
department.
(4)(a) Space for designating the dollar amount of a
contribution made to each checkoff program shall be printed on
the Oregon tax return. The space shall provide for checkoff boxes
for the program in the amounts of $1, $5, $10 or other dollar
amount.
(b) Overpayments of tax that are insufficient, due to ORS
293.250 or otherwise, to satisfy the total amount of checkoffs
designated on a tax return shall be allocated among the designees
on a pro rata basis as provided under ORS 305.745 (3).
(5)(a) If, as of June 30 of the calendar year immediately
following the calendar year in which a particular tax year
begins, the department determines that the total amount checked
off for that tax year for a checkoff program is $50,000 or less,
the department shall notify a person administering the program or
other appropriate person.
(b) If, as determined by the department under paragraph (a) of
this subsection, the total amount checked off for a particular
checkoff program is $50,000 or less for each year in a period of
two consecutive tax years, a checkoff line and appropriate box
for that program shall not be provided on the Oregon individual
tax return for the tax year immediately following the later year
of the two-year period nor for any tax year thereafter, except as
otherwise provided by { + subsection (6) of this section + }
{ - law - } .
(c) As used in this subsection, 'total amount checked off '
means the total amount checked off by taxpayers as reflected by
tax returns for the tax year processed as of June 30 before any
deduction for administrative costs as required under subsection
(2) of this section has occurred but after any proration under
subsection (4) of this section.
{ + (6) If, prior to the preparation of tax returns for any
tax year, the department determines that a checkoff program to
which this section applies has been listed on the Oregon return
for any one of the four tax years immediately preceding, the
program shall not be listed on the tax return for that year or
for any of the three tax years immediately following. However,
notwithstanding ORS 305.710, after the expiration of the
four-tax-year period, the checkoff program shall again be listed
on the return. + }
SECTION 4. { + Determinations shall first be made in
accordance with ORS 305.720 and 305.749, as amended by sections 1
and 3 of this Act, in 1996. + }
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