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 3590

                         Senate Bill 938

Sponsored by COMMITTEE ON GOVERNMENT FINANCE AND TAX POLICY


                             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.

  Enacts Tax Accountability Act of 1995. Requires all tax
credits, exemptions and subtractions, before being allowed or
granted, be approved or reapproved by law every two years.

                        A BILL FOR AN ACT
Relating to tax accountability.
Be It Enacted by the People of the State of Oregon:
  SECTION 1.  { + Sections 2 to 5 of this Act are added to and
made a part of ORS chapter 306. + }
  SECTION 2.  { + Sections 2 to 5 of this 1995 Act may be cited
as the 'Tax Accountability Act of 1995.' + }
  SECTION 3.  { + (1) As used in sections 2 to 5 of this 1995
Act:
  (a) 'Credit' means any credit allowed for purposes of ORS
chapter 314, 316, 317 or 318, but does not include withholding or
estimated taxes.
  (b) 'Exemption' includes the following:
  (A) Every whole or partial exemption from ad valorem property
taxes and every cancellation of assessment.
  (B) Every special or limited assessment accorded land or
improvements for ad valorem property tax purposes.
  (c) 'Subtraction' means every subtraction from federal taxable
income allowed for purposes of ORS chapter 314, 316, 317 or 318
and includes any exclusion or exemption that requires a
subtraction or other modification to federal taxable income.
  (2) Sections 2 to 5 of this 1995 Act do not apply to any
credit, exemption or subtraction required under the laws or
Constitution of the United States or the Constitution of this
state.
  (3) Nothing in sections 2 to 5 of this 1995 Act, shall affect a
credit, exemption or subtraction that can be carried forward or
is otherwise allowed over a period of years if the tax year in
question is a tax year other than the initial tax year of credit,
exemption or subtraction. + }
  SECTION 4.  { + (1) Notwithstanding any other law:
  (a) For tax years beginning on or after July 1, 1996, the
county assessor or the Department of Revenue shall not allow,
without the enactment of enabling legislation, any exemption from
ad valorem property taxes for any tax year.


  (b) For tax years beginning on or after January 1, 1995, the
Department of Revenue shall not allow, without the enactment of
enabling legislation, any credit or subtraction.
  (2)(a) For ad valorem property tax purposes, 'enabling
legislation' means legislation enacted at a regular session of
the Legislative Assembly that specifically grants or extends the
exemption for the one or two tax years beginning after the tax
year in which the legislation takes effect, and only for those
two tax years.
  (b) For personal or corporate tax purposes, 'enabling
legislation' means legislation enacted at a regular session of
the Legislative Assembly that specifically allows or extends the
credit or subtraction for the one or two tax years ending in the
next biennium, and only for those two tax years. + }
  SECTION 5.  { + The Department of Revenue shall, no later than
January 15 of each odd-numbered year, provide the Legislative
Assembly with a report setting forth in detail the following: all
credits, exemptions and subtractions, as defined in section 3 of
this 1995 Act, that are allowed or granted by enabling
legislation enacted by the previous regular session of the
Legislative Assembly; the purpose of the credit, exemption or
subtraction; the persons affected by the credit, exemption or
subtraction; the statutory authority for the credit, exemption or
subtraction; an estimate of the amounts credited, exempted or
subtracted by the previous enabling legislation; and the amounts
that may be expected to be credited, exempted or subtracted if
enabling legislation for each credit, exemption or subtraction is
again enacted and the totals of those amounts. + }
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