69th OREGON LEGISLATIVE ASSEMBLY--1997 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 5
House Bill 2057
Ordered printed by the Speaker pursuant to House Rule 12.00A (5).
Presession filed (at the request of Representative George
Eighmey)
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.
Eliminates state corporate surplus refund (corporate surplus
kicker). Applies to bienniums beginning on or after July 1, 1995.
A BILL FOR AN ACT
Relating to finance; creating new provisions; amending ORS
291.349 and 291.351; and providing for revenue raising that
requires approval by three-fifths majority.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 291.349 is amended to read:
291.349. (1) As soon as practicable after adjournment sine die
of the regular session of the Legislative Assembly, the Oregon
Department of Administrative Services shall report to the
Emergency Board the estimate as of July 1 of the first year of
the biennium of General Fund and State Lottery Fund revenues that
will be received by the state during that biennium. The Oregon
Department of Administrative Services shall base its estimate on
the last forecast given to the Legislative Assembly before
adjournment sine die of the regular session on which the printed,
adopted budget prepared in the Oregon Department of
Administrative Services is based, adjusted only insofar as
necessary to reflect changes in laws adopted at that session. The
report shall contain the estimated revenues from corporate income
and excise taxes separately from the estimated revenues from
other General Fund sources. The Oregon Department of
Administrative Services may revise the estimate if necessary
following adjournment sine die of any special or emergency
session of the Legislative Assembly but any revision does not
affect the basis of the computation described in subsection (3)
{ - or (4) - } of this section.
(2) As soon as practicable after the end of the biennium, the
Oregon Department of Administrative Services shall report to the
Emergency Board, or the Legislative Assembly if it is in session,
the amount of General Fund revenues collected as of the last June
30 of the preceding biennium. The report shall contain the
collections from corporate income and excise taxes separately
from collections from other sources.
{ - (3) If the revenues received from the corporate income
and excise taxes during the biennium exceed the amounts estimated
to be received from such taxes for the biennium, as estimated
after adjournment sine die of the regular session, by two percent
or more, the total amount of that excess shall be credited to
corporate income and excise taxpayers in a percentage amount of
corporate excise and income tax liability as determined under
subsection (5) of this section. However, no credit shall be
allowed against tax liability imposed by ORS 317.090. - }
{ - (4) - } { + (3) + } If the revenues received from
General Fund revenue sources, exclusive of { + revenues from
corporate excise and income taxes + } { - those described in
subsection (3) of this section - } , during the biennium exceed
the amounts estimated to be received from such sources for the
biennium, as estimated after adjournment sine die of the regular
session, by two percent or more, the total amount of that excess,
reduced by the cost certified by the Department of Revenue under
ORS 291.351 as being allocable to payments described under this
subsection, shall be paid to personal income taxpayers in a
percentage amount of prior year personal income tax liability as
determined under subsection { - (6) - } { + (4) + } of this
section.
{ - (5) If there is an excess to be credited under subsection
(3) of this section, on or before October 1, following the end of
each biennium, the Oregon Department of Administrative Services
shall determine and certify to the Department of Revenue the
percentage amount of credit for purposes of subsection (3) of
this section. The percentage amount determined shall be a
percentage amount to the nearest one-tenth of a percent that will
distribute the excess to be credited to corporate excise and
income taxpayers for taxable years beginning in the calendar year
during which the excess is determined. The credit shall be
computed after the allowance of any credit allowed or allowable
under ORS chapter 317 or 318, whichever may be applicable, and
before the application of estimated tax payments, withholding or
other advance tax payments. - }
{ - (6)(a) - } { + (4)(a) + } If there is an excess to be
paid { + to personal income taxpayers + } under subsection
{ - (4) - } { + (3) + } of this section, on or before
September 15, following the end of each biennium, the Oregon
Department of Administrative Services shall determine and certify
to the Department of Revenue the percentage amount of payment
{ - for purposes of subsection (4) of this section - } . The
percentage amount { - so determined - } shall be
{ + determined + } { - a percentage amount - } to the nearest
one-hundredth of a percent { - that will distribute the excess
to be paid to personal income taxpayers under subsection (4) of
this section - } . The percentage amount shall equal the amount
distributed under subsection { - (4) - } { + (3) + } of this
section divided by the estimated total personal income tax
liability for all personal income taxpayers for tax years ending
during the final 12 months of the biennium.
(b) The Department of Revenue shall multiply the percentage
amount determined under paragraph (a) of this subsection by the
total amount of a personal income taxpayer's tax liability for
the tax year ending during the final 12 months of the biennium in
order to calculate the amount of the payment to be made to the
taxpayer.
(c) The payment described under this subsection shall be
subject to the rules allowing setoff of refunds or sums due
debtors of this state under ORS 293.250.
(d) The payment described under this subsection shall be mailed
by the Department of Revenue to personal income taxpayers
eligible for the payment on or before December 1 following the
end of the biennium for which the payment described under this
subsection is being made.
(e) Notwithstanding paragraph (d) of this subsection, the
Department of Revenue shall mail payment at the earliest date of
practicable convenience in the case of a return:
(A) For a tax year ending within the final 12 months of the
biennium for which payment is being made; and
(B) That is first filed on or after August 15 after the end of
the biennium.
{ - (7) - } { + (5) + } No payment shall be made to a
taxpayer if, after making the calculation described under
subsection { - (6) - } { + (4) + } of this section, the
amount calculated is less than $5.
SECTION 2. ORS 291.351 is amended to read:
291.351. If, based on the report made under ORS 291.349
{ - (2) - } , payment will be made { + to personal income
taxpayers + } { - under ORS 291.349 (4) - } , the Department of
Revenue shall certify the costs that are incurred in calculating
and making the payments
{ - under ORS 291.349 (4) - } . Costs shall be certified by the
department within 15 days of the date the report under ORS
291.349
{ - (2) - } is made. As used in this section, 'costs' means
and is limited to those costs that, absent the requirement of
making payment under ORS 291.349 { - (4) - } { + (3) + },
would not be incurred by the department.
SECTION 3. { + The amendments to ORS 291.349 and 291.351 by
sections 1 and 2 of this Act apply to bienniums beginning on or
after July 1, 1995. + }
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