77th OREGON LEGISLATIVE ASSEMBLY--2013 Regular Session
Enrolled
House Bill 2325
Sponsored by Representative BUCKLEY (Presession filed.)
CHAPTER ................
AN ACT
Relating to state financial administration; creating new
provisions; amending ORS 291.349 and 305.792; and declaring an
emergency.
Be It Enacted by the People of the State of Oregon:
SECTION 1. { + (1) For purposes of implementing Article IX,
section 14 (3), of the Oregon Constitution, if revenues received
by the General Fund from the corporate income and excise taxes
during the biennium exceed the amount estimated to be received
from such taxes for the biennium by two percent or more, the
Legislative Assembly shall appropriate an amount equal to the
total amount of the excess to the State School Fund established
by ORS 327.008 for apportionment as provided in ORS 327.008.
(2) The amount appropriated under this section shall be in
addition to the total amount of revenues the Legislative Assembly
would otherwise appropriate, allocate or make available for the
biennium for funding kindergarten through grade 12 public
education if excess revenues described in subsection (1) of this
section were not available. + }
SECTION 2. ORS 291.349, as amended by section 22, chapter 107,
Oregon Laws 2012, is amended to read:
291.349. (1) As soon as practicable after adjournment sine die
of the odd-numbered year regular session of the Legislative
Assembly, the Oregon Department of Administrative Services shall
report to the Legislative Revenue Officer and the Legislative
Fiscal Officer 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 odd-numbered year 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 a special session or an
even-numbered year regular 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.
Enrolled House Bill 2325 (HB 2325-INTRO) Page 1
(2) As soon as practicable after the end of the biennium, the
Oregon Department of Administrative Services shall report to the
Legislative Revenue Officer and the Legislative Fiscal Officer,
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 odd-numbered year 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 prior year 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 - } { + retained in the General Fund and used,
in the manner described in section 1 of this 2013 Act, to provide
additional funding for public education, kindergarten through
grade 12 + }.
(4) If the revenues received from General Fund revenue sources,
exclusive of 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 odd-numbered year regular session, by
two percent or more, there shall be credited to personal income
taxpayers an amount equal to the total amount of that excess,
reduced by the cost certified by the Department of Revenue under
ORS 291.351 as being allocable to credits described under this
subsection. The excess amount to be credited shall be credited to
personal income taxpayers in a percentage amount of prior year
personal income tax liability as determined under subsection (5)
of this section.
(5)(a) If there is an excess to be credited under subsection
{ - (3) or - } (4) of this section, { - or both, - } 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 amounts of credit for
purposes of subsection { - (3) or - } (4) of this section. The
percentage amounts determined shall be percentage amounts to the
nearest one-tenth of a percent that will distribute the excess to
be credited { - either to corporate excise and income taxpayers
or - } to personal income taxpayers.
{ - (b) The percentage amount applicable to subsection (3) of
this section shall equal the amount distributed under subsection
(3) of this section divided by the estimated total corporate
income and excise tax liability for all corporate income and
excise taxpayers for tax years beginning in the calendar year
immediately preceding the calendar year in which the excess is
determined. - }
{ - (c) The amount of the surplus credit under subsection (3)
of this section is determined by multiplying the percentage
amount determined under paragraph (b) of this subsection by the
total amount of a corporate income or excise taxpayer's tax
liability for the tax year beginning in the calendar year
immediately preceding the calendar year in which the excess is
determined in order to calculate the amount to be credited to the
taxpayer. - }
Enrolled House Bill 2325 (HB 2325-INTRO) Page 2
{ - (d) - } { + (b) + } The percentage amount applicable to
subsection (4) of this section shall equal the amount distributed
under subsection (4) of this section divided by the estimated
total personal income tax liability for all personal income
taxpayers for tax years beginning in the calendar year
immediately preceding the calendar year in which the excess is
determined.
{ - (e) - } { + (c) + } The amount of the surplus credit
under subsection (4) of this section is determined by multiplying
the percentage amount determined under paragraph { - (d) - }
{ + (b) + } of this subsection by the total amount of a personal
income taxpayer's tax liability for the tax year beginning in the
calendar year immediately preceding the calendar year in which
the excess is determined in order to calculate the amount to be
credited to the taxpayer.
{ - (f) - } { + (d) + } The credit shall be determined
based on the tax liability as shown on the return of the taxpayer
or as corrected by the Department of Revenue.
{ - (g) - } { + (e) + } The credit shall be computed after
the allowance of a credit provided under ORS 316.082, 316.131 or
316.292, but before the allowance of any other credit or offset
against tax liability allowed or allowable under any provision of
law of this state, and before the application of estimated tax
payments, withholding or other advance tax payments.
{ - (h) For corporate income and excise taxpayers, if a
credit applied against tax liability as described in paragraph
(g) of this subsection reduces tax liability to zero and an
amount of the credit remains unused, the remaining unused amount
shall be carried forward and applied against tax liability as
prescribed in paragraph (g) of this subsection in the succeeding
tax year. Following application of the credit against tax
liability in a succeeding tax year, any amount continuing to
remain unused shall be carried forward and applied against tax
liability in a succeeding tax year until all remaining amounts of
unused credit are offset against tax liability. - }
{ - (i) - } { + (f) + } For personal income taxpayers, if a
credit applied against tax liability as described in paragraph
{ - (g) - } { + (e) + } of this subsection reduces tax
liability to zero and an amount of the credit remains unused, the
remaining unused amount shall be refunded to the taxpayer. For
purposes of ORS chapters 305, 314, 315 and 316, refunds issued
under this paragraph are refunds of an overpayment of tax imposed
under ORS chapter 316.
{ - (j) Notwithstanding paragraph (g) of this subsection, if
an excess is credited under subsection (3) of this section for a
tax year and an unused credit amount from a prior tax year is
carried forward to the tax year as prescribed under paragraph (h)
of this subsection, the amount of the carryforward credit shall
be applied against tax liability prior to applying the new
credit. - }
{ - (k) - } { + (g) + } The Department of Revenue may
prescribe by rule the manner of calculating and claiming a credit
if the filing status of a taxpayer changes between the tax year
for which a credit may be claimed and the succeeding tax year.
(6) A refund may not be made under this section to a taxpayer
if the amount of the refund is less than $1.
(7) Not later than October 15 following the end of the
biennium, the Department of Revenue shall provide information and
guidance to taxpayers relating to the calculation of the credit.
Enrolled House Bill 2325 (HB 2325-INTRO) Page 3
The department may make the information and guidance available
electronically or otherwise.
(8) The Department of Revenue may adopt rules specifying the
manner for issuing refunds under this section to taxpayers who
filed returns in the tax year on which the credit is computed but
who are not required to file returns in the year in which the
credit could be claimed.
SECTION 3. ORS 305.792 is amended to read:
305.792. (1) The Department of Revenue shall provide a means by
which personal income { - and corporate income or excise - }
tax return filers may indicate that a surplus refund credit to
which the taxpayer may otherwise be entitled to under ORS 291.349
shall instead be used for funding education.
(2)(a) A personal income { - or corporate excise or
income - } taxpayer may elect not to claim a surplus refund
credit that the taxpayer would otherwise be entitled to pursuant
to ORS 291.349, in order to achieve a corresponding transfer of
such moneys from the General Fund to the State School Fund for
the support of public elementary and secondary school education.
The taxpayer may make the election in the form and manner
prescribed by the department by rule.
(b) A taxpayer that indicates that the credit will not be
claimed but that nevertheless claims the credit in determining
the taxpayer's tax liability shall be considered to not have made
the election under this subsection.
(c) The election not to claim a credit under this subsection
may not be revoked by filing an amended return.
(3) Following the determination to credit personal income
{ - or corporate income and excise - } taxes pursuant to ORS
291.349, the department shall annually certify to the State
Treasurer the total amount of allowable credits that have not
been claimed pursuant to an election made under subsection (2) of
this section. The certification shall be made on or before
December 31 of each year, until the tax year for which the credit
would otherwise be claimed becomes a closed tax year.
SECTION 4. { + This 2013 Act being necessary for the immediate
preservation of the public peace, health and safety, an emergency
is declared to exist, and this 2013 Act takes effect on its
passage. + }
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Passed by House July 1, 2013
.............................................................
Ramona J. Line, Chief Clerk of House
.............................................................
Tina Kotek, Speaker of House
Passed by Senate July 6, 2013
.............................................................
Peter Courtney, President of Senate
Enrolled House Bill 2325 (HB 2325-INTRO) Page 4
Received by Governor:
......M.,............., 2013
Approved:
......M.,............., 2013
.............................................................
John Kitzhaber, Governor
Filed in Office of Secretary of State:
......M.,............., 2013
.............................................................
Kate Brown, Secretary of State
Enrolled House Bill 2325 (HB 2325-INTRO) Page 5