Bill Text: OR HB2281 | 2013 | Regular Session | Introduced
Bill Title: Relating to revenues for innovation; appropriating money; prescribing an effective date.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Failed) 2013-07-08 - In committee upon adjournment. [HB2281 Detail]
Download: Oregon-2013-HB2281-Introduced.html
77th OREGON LEGISLATIVE ASSEMBLY--2013 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 2372
House Bill 2281
Sponsored by Representative READ (Presession filed.)
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.
Directs Oregon Business Development Department to implement
program in which tax revenues generated by persons hired by
innovation activity employers are directed to Oregon Innovation
Fund.
Appropriates moneys from General Fund to department for
purposes of administering program.
Specifies rate of withholding on taxable income of person
employed by registered employer.
Applies to tax years beginning on or after January 1, 2014, and
before January 1, 2017.
Takes effect on 91st day following adjournment sine die.
A BILL FOR AN ACT
Relating to revenues for innovation; creating new provisions;
amending ORS 284.720; appropriating money; and prescribing an
effective date.
Be It Enacted by the People of the State of Oregon:
SECTION 1. { + As used in sections 1 to 3 of this 2013 Act:
(1) 'Incremental Oregon innovation tax revenues' means:
(a) The Oregon personal income tax revenues that are generated
from the Oregon personal income tax liabilities shown on the
income tax returns filed by persons hired by registered employers
in the two consecutive tax years beginning with the tax year in
which the employer is registered under section 2 of this 2013
Act, including revenues that are generated from the tax
liabilities of spouses of persons employed by registered
employers if the tax liabilities are reported on a joint return;
or
(b) If Oregon personal income tax rates are reduced after the
dates of the grant agreements described in ORS 284.735, and the
grant agreements provide that payments will be based on rates in
effect when the grant agreements are executed, the Oregon
personal income tax revenues generated from the tax liabilities,
as described in paragraph (a) of this subsection, that would have
been due if the liabilities were calculated using personal income
tax rates in effect on the date of execution of the grant
agreements.
(2) 'Innovation activity employer' means an employer that:
(a) Is an Oregon growth business, as that term is defined in
ORS 284.701; and
(b) Has had an average payroll, over the preceding six months,
of at least 50 employees.
(3) 'Registered employer' means an innovation activity employer
that has been identified and registered as a participant in the
program established under section 2 of this 2013 Act.
(4) 'Tax liabilities' means the tax determined under ORS
chapter 316 for the tax year, less the credits allowed for
purposes of ORS chapter 316 for the tax year. + }
SECTION 2. { + The Oregon Business Development Department
shall, in cooperation with the Department of Revenue:
(1) Establish and administer a program for utilizing
incremental Oregon innovation tax revenues for the purposes of
the Oregon Innovation Council;
(2) Identify employers that are innovation activity employers;
(3) Notify innovation activity employers of the requirement
that the employers comply with sections 6 and 7 of this 2013 Act;
and
(4) Register the innovation activities employers as
participants in the program established under this section. + }
SECTION 3. { + The Oregon Business Development Department may
adopt administrative rules that the department determines are
necessary to:
(1) Further define the terms defined in section 1 of this 2013
Act in a manner consistent with section 1 of this 2013 Act;
(2) Implement the duties of the department under sections 1 to
3 of this 2013 Act; and
(3) Carry out the purposes of sections 1 to 3 of this 2013
Act. + }
SECTION 4. { + Sections 5 to 9 of this 2013 Act are added to
and made a part of ORS 316.162 to 316.221. + }
SECTION 5. { + As used in sections 5 to 9 of this 2013 Act:
(1) 'Compensation' has the meaning given that term in ORS
314.610.
(2) 'Registered employer' has the meaning given that term in
section 1 of this 2013 Act. + }
SECTION 6. { + (1) A registered employer, in lieu of the
withholding requirements under ORS 316.167, shall withhold eight
percent of the wages of employees hired by the registered
employer in each of the two consecutive tax years beginning with
the tax year in which the employer is registered under section 2
of this 2013 Act, as provided in this section and by rule of the
Department of Revenue.
(2) The registered employer withholding amounts under this
section shall pay the amounts withheld to the Department of
Revenue at the time and in the manner prescribed by the
department by rule.
(3) This section applies to tax years beginning on or after
January 1, 2012, and before January 1, 2022. + }
SECTION 7. { + In addition to other reports and returns
required by law or rule, a registered employer required to
withhold compensation under section 6 of this 2013 Act shall file
an annual report with the Department of Revenue, stating:
(1) The total amount of compensation paid during the year to
employees hired in that tax year by the registered employer;
(2) The taxpayer identification number of each employee of the
registered employer;
(3) The compensation paid to each employee of the certified
employer; and
(4) The amount withheld under section 6 of this 2013 Act for
each employee hired by the registered employer. + }
SECTION 8. { + (1) The Department of Revenue may adopt
administrative rules that the department determines are necessary
to:
(a) Implement the duties of the department under sections 5 to
9 of this 2013 Act; and
(b) Carry out the purposes of sections 5 to 9 of this 2013 Act.
(2) The rules may include rules construing ORS 316.162 to
316.221 in a manner that is consistent and compatible with the
withholding provisions of sections 5 to 9 of this 2013 Act. + }
SECTION 9. { + For tax years beginning on or after January 1,
2014, and before January 1, 2017, the revenues received by the
Department of Revenue under section 6 of this 2013 Act shall be
transferred to the Oregon Innovation Fund created under ORS
284.720. + }
SECTION 10. { + (1) There is appropriated to the Oregon
Business Development Department, for the biennium beginning July
1, 2013, out of the General Fund, the amount of $___ for the
purpose of carrying out the provisions of sections 1 to 3 of this
2013 Act.
(2) There is appropriated to the Department of Revenue, for the
biennium beginning July 1, 2013, out of the General Fund, the
amount of $___ for the purpose of carrying out the provisions of
sections 5 to 9 of this 2013 Act. + }
SECTION 11. ORS 284.720 is amended to read:
284.720. (1) There is created within the State Treasury,
separate and distinct from the General Fund, the Oregon
Innovation Fund. Interest earned by the Oregon Innovation Fund
shall be credited to the fund.
(2) Moneys in the Oregon Innovation Fund shall consist of:
(a) Amounts donated to the fund;
(b) Amounts appropriated or otherwise transferred to the fund
by the Legislative Assembly;
(c) Investment earnings received on moneys in the fund;
{ - and - }
{ + (d) Moneys received by the Department of Revenue under
section 6 of this 2013 Act; and + }
{ - (d) - } { + (e) + } Other amounts deposited in the fund
from any source.
(3) Moneys in the fund are continuously appropriated to the
Oregon Innovation Council for the purposes of making grants and
loans under ORS 284.742 and entering into contracts to carry out
the recommendations included in the state plan developed under
ORS 284.715.
(4) The council may establish accounts and subaccounts within
the fund when the council determines that accounts or subaccounts
are necessary or desirable and may credit any interest or income
derived from moneys in the fund to any account or subaccount in
the fund.
(5) The council may use moneys in the fund to pay the
administrative costs associated with the fund and with making
grants, loans and other distributions of moneys from the fund.
SECTION 12. { + Sections 1 to 3 and 5 to 9 of this 2013 Act
and the amendments to ORS 284.720 by section 11 of this 2013 Act
apply to tax years beginning on or after January 1, 2014, and
before January 1, 2017. + }
SECTION 13. { + This 2013 Act takes effect on the 91st day
after the date on which the 2013 regular session of the
Seventy-seventh Legislative Assembly adjourns sine die. + }
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