Bill Text: OR HB2497 | 2013 | Regular Session | Introduced

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Bill Title: Relating to carbon tax; appropriating money; prescribing an effective date; providing for revenue raising that requires approval by a three-fifths majority.

Spectrum: Committee Bill

Status: (Failed) 2013-07-08 - In committee upon adjournment. [HB2497 Detail]

Download: Oregon-2013-HB2497-Introduced.html

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     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 1556

                         House Bill 2497

Introduced and printed pursuant to House Rule 12.00. Presession
  filed (at the request of House Interim Committee on Revenue)

                             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.

  Imposes tax on each fuel supplier and utility based on amount
of carbon in carbon-based fuel that is sold by fuel supplier to
consumers in state or that is used to produce carbon-generated
electricity supplied by utility to consumers in state. Limits tax
on certain oil and natural gas to six percent of market value of
oil or natural gas.
  Distributes moneys collected from tax to State Highway Fund,
Common School Fund, Energy Crisis Trust Fund and Renewable Energy
Resources Account.
  Establishes Renewable Energy Resources Account to fund
development of renewable energy resources.
  Appropriates moneys from General Fund to Department of Revenue
and State Department of Energy for purpose of funding first year
of administration of tax.
  Applies to carbon-based fuel sold to consumers or used to
produce carbon-generated electricity on or after January 1, 2015.
  Takes effect on 91st day following adjournment sine die.

                        A BILL FOR AN ACT
Relating to carbon tax; creating new provisions; amending ORS
  458.510; appropriating money; prescribing an effective date;
  and providing for revenue raising that requires approval by a
  three-fifths majority.
Be It Enacted by the People of the State of Oregon:
  SECTION 1.  { + As used in sections 1 to 7 of this 2013 Act:
  (1)(a) 'Carbon-based fuel' means coal, natural gas, petroleum
products and any other product used for fuel that contains carbon
and emits carbon dioxide when combusted.
  (b) 'Carbon-based fuel' does not include any product used for
fuel that is from a resource that is less than 1,000 years old in
its natural state.
  (2) 'Carbon-based fuel group' means a group of carbon-based
fuels that contain similar levels of carbon.
  (3)(a) 'Carbon-generated electricity' means electric energy
that is produced by a carbon-based fuel.
  (b) 'Carbon-generated electricity' does not include electric
energy produced by a fuel that is from a resource that is less
than 1,000 years old in its natural state.
  (4) 'Fuel supplier' means a person that sells carbon-based fuel
to consumers.
  (5) 'Utility' means a public utility operating under ORS
chapter 757, a people's utility district operating under ORS
chapter 261, a municipal utility operating under ORS chapter 225
or any other entity that supplies carbon-generated electricity to
consumers. + }
  SECTION 2.  { + (1) A tax is imposed on each fuel supplier and
utility at a rate of $___ per ton of carbon in a carbon-based
fuel that is:
  (a) Sold by a fuel supplier to consumers in this state; or
  (b) Used to produce carbon-generated electricity that is
supplied by a utility to consumers in this state.
  (2) Notwithstanding the rate designated under subsection (1) of
this section, the amount of tax imposed on oil or natural gas
under this section may not exceed six percent of the market value
of oil or natural gas that is described in Article IX, section
3b, of the Oregon Constitution. If the total of all taxes imposed
by all laws on oil or natural gas described in Article IX,
section 3b, of the Oregon Constitution, exceeds six percent of
the market value of the oil or natural gas, the amount that is in
excess because of taxes imposed by the laws of this state, other
than the tax imposed by this section, shall be refunded to the
taxpayer.
  (3) The Department of Revenue shall calculate the tax liability
of a fuel supplier or utility by multiplying the rate designated
in subsection (1) of this section by the total amount of carbon
in carbon-based fuels in each carbon-based fuel group that are:
  (a) Sold by the fuel supplier to consumers in this state in the
previous calendar year; or
  (b) Used to produce carbon-generated electricity supplied by
the utility to consumers in this state in the previous calendar
year.
  (4)(a) If a utility is unable to provide the information
required for the calculation under subsection (3) of this
section, the Department of Revenue shall calculate the utility's
tax liability by multiplying the rate designated in subsection
(1) of this section by the product of the average amount of
carbon used in the production of one kilowatt of electricity
supplied by the utility and the total number of kilowatts of
electricity supplied by the utility to consumers in this state.
  (b) The State Department of Energy shall calculate the average
amount of carbon used in the production of one kilowatt of
electricity supplied by the utility by estimating the ratio that
each carbon-based fuel group contributes to the generation of the
electricity. Each year, the State Department of Energy shall
recalculate and report to the Department of Revenue the average
amount of carbon used in the production of one kilowatt of
electricity supplied by the utility to take into account any
changes in the ratio of carbon-based fuel groups used in the
generation of the electricity.
  (5) The Department of Revenue and the State Department of
Energy may adopt any rules necessary for the calculation and
collection of the tax imposed under this section.
  (6) The tax imposed under this section does not apply to:
  (a) Carbon-based fuel or carbon-generated electricity that this
state is prohibited from taxing under the Constitution or laws of
the United States or the Constitution or laws of the State of
Oregon.
  (b) Any fuel supplier or utility that is administered by a
federal agency.
  (c) Any carbon-based fuel or carbon-generated electricity that
is transported through this state but not consumed in this
state. + }
  SECTION 3.  { + (1) Every fuel supplier and utility required to
pay the tax imposed under section 2 of this 2013 Act shall file a
report with the Department of Revenue on or before April 1 of
each year.
  (2) The report filed by a fuel supplier under this section
shall include:
  (a) The total amount of carbon-based fuel in each carbon-based
fuel group sold by the fuel supplier to consumers in this state
in the previous calendar year;
  (b) The market value and any taxes paid in the previous
calendar year for any oil or natural gas that is described in
Article IX, section 3b, of the Oregon Constitution, and sold by
the fuel supplier; and
  (c) Any other information required by the department by rule.
  (3) The report filed by a utility under this section shall
include:
  (a) The total amount of carbon-based fuel in each carbon-based
fuel group used to produce the carbon-generated electricity
supplied by the utility to consumers in this state in the
previous calendar year;
  (b) The market value and any taxes paid in the previous
calendar year for any oil or natural gas that is described in
Article IX, section 3b, of the Oregon Constitution, and used to
produce carbon-generated electricity supplied by the utility; and
  (c) Any other information required by the department by rule.
  (4) If a utility is unable to provide the information required
under subsection (3) of this section, the utility shall report:
  (a) To the State Department of Energy the information required
by the department by rule to make the calculations under section
2 (4) of this 2013 Act; and
  (b) To the Department of Revenue the total number of kilowatts
of electricity supplied by the utility to consumers in this state
in the previous calendar year.
  (5) Each fuel supplier and utility shall keep records, render
statements, make returns and comply with rules adopted by the
Department of Revenue and State Department of Energy for the tax
imposed under section 2 of this 2013 Act. + }
  SECTION 4.  { + (1) On or before June 1 of each year, the
Department of Revenue shall send an assessment to each fuel
supplier and utility that identifies the amount of tax liability
owed for the previous calendar year by the fuel supplier or
utility for the tax imposed under section 2 of this 2013 Act.
  (2) On or before July 1 of each year, each fuel supplier and
utility that receives an assessment under subsection (1) of this
section shall pay the amount of the tax liability to the
department.
  (3) If the amount paid by the fuel supplier or utility under
subsection (2) of this section exceeds the amount of tax payable,
the department shall refund the amount of the excess with
interest at the rate established under ORS 305.220 for each month
or fraction of a month from the date of payment of the excess
until the date of the refund. A refund is not available to a fuel
supplier or utility that fails to claim the refund within two
years after the due date for the filing of the return with
respect to which the claim for refund relates.
  (4) If a fuel supplier or utility fails to pay the tax assessed
against it under subsection (1) of this section, the department
may enforce collection by the issuance of a distraint warrant for
the collection of the delinquent amount and all penalties,
interest and collection charges. The warrant shall be issued,
docketed and proceeded upon in the same manner and shall have the
same force and effect as is prescribed with respect to warrants
for the collection of delinquent income taxes. + }
  SECTION 5.  { + Moneys received by the Department of Revenue
pursuant to the tax imposed under section 2 of this 2013 Act
shall be deposited in a suspense account created pursuant to ORS
293.445. Moneys in that account shall be distributed as follows:
  (1) All moneys that are collected from motor vehicle fuel or
any other product used for the propulsion of motor vehicles shall

be used in the manner described in Article IX, section 3a, of the
Oregon Constitution.
  (2) All moneys that are collected from oil or natural gas
described in Article VIII, section 2 (1)(g), of the Oregon
Constitution, shall be used in the manner designated in Article
VIII, section 2 (1)(g), of the Oregon Constitution.
  (3) All moneys collected from sources not described in
subsection (1) or (2) of this section, minus any amounts the
Department of Revenue or State Department of Energy may collect
to cover costs incurred by the Department of Revenue or State
Department of Energy in the administration of the tax, shall be
deposited as follows:
  (a) ___ percent to the Common School Fund described in Article
VIII, section 2, of the Oregon Constitution;
  (b) ___ percent to the Energy Crisis Trust Fund established
under ORS 458.510 for the purpose of providing low income home
energy assistance; and
  (c) ___ percent to the Renewable Energy Resources Account
established under section 6 of this 2013 Act for the purpose of
funding the development of renewable energy resources. + }
  SECTION 6.  { + The Renewable Energy Resources Account is
established in the State Treasury, separate and distinct from the
General Fund. The account consists of moneys distributed to the
account under section 5 of this 2013 Act. All moneys in the
account are continuously appropriated to the State Department of
Energy to fund the development of renewable energy resources, as
defined in ORS 469B.130. + }
  SECTION 7.  { + Unless the context requires otherwise, the
provisions of ORS chapters 305, 314 and 316 that relate to the
audit and examination of reports and returns, confidentiality and
disclosure of reports and returns, determination of deficiencies,
assessments, claims for refunds, penalties, interest, jeopardy
assessments, warrants, conferences and appeals to the Oregon Tax
Court, and related procedures, apply to sections 1 to 7 of this
2013 Act, the same as if the tax were a tax imposed upon or
measured by net income. + }
  SECTION 8. ORS 458.510 is amended to read:
  458.510. (1) There is established an Energy Crisis Trust Fund,
separate and distinct from the General Fund, in the State
Treasury. As permitted by federal court decisions, federal
statutory requirements and administrative decisions, funds from
the Petroleum Violation Escrow Fund made available to the Housing
and Community Services Department for the Energy Crisis Trust
Fund { + , funds designated to the Energy Crisis Trust Fund under
section 5 of this 2013 Act, + } and any gift, grant,
appropriation or donation for the purpose of the Energy Crisis
Trust Fund { + , + } shall be deposited by the State Treasurer
and credited to the Energy Crisis Trust Fund. The State Treasurer
shall credit monthly to the fund any interest or other income
derived from the fund or the investing of the fund. All moneys in
the fund are continuously appropriated to the Housing and
Community Services Department for the purpose of providing low
income home energy assistance.
  (2) If moneys are donated to the fund for low income energy
assistance by a home heating fuel or energy service provider that
allows its customers to contribute to the program, that money so
donated shall be redistributed through the Energy Crisis Trust
Fund only within the service area of that home heating fuel or
energy service provider.
  (3) The Housing and Community Services Department shall
contract with a private nonprofit or public organization or
agency for the distribution of moneys in the Energy Crisis Trust
Fund.  The department or the contractor shall administer and
distribute the funds in accordance with:
  (a) The Low Income Home Energy Assistance Act of 1981 (42
U.S.C. 8621 et seq.);
  (b) The Petroleum Violation Escrow Fund regulations; and
  (c) The recommendations of the advisory committee established
in ORS 458.515.
  SECTION 9.  { + For the purpose of first calculating the tax
imposed under section 2 of this 2013 Act, the State Department of
Energy shall determine the percentage of carbon in each
carbon-based fuel group and report those percentages to the
Department of Revenue. + }
  SECTION 10.  { + (1) In addition to and not in lieu of any
other appropriation, there is appropriated to the Department of
Revenue, for the biennium beginning July 1, 2013, out of the
General Fund, the amount of $___, which may be expended for the
purpose of funding the first year of administration of the tax
imposed under section 2 of this 2013 Act.
  (2) In addition to and not in lieu of any other appropriation,
there is appropriated to the State Department of Energy, for the
biennium beginning July 1, 2013, out of the General Fund, the
amount of $___, which may be expended for the purpose of
assisting the Department of Revenue in administering the first
year of the tax imposed under section 2 of this 2013 Act. + }
  SECTION 11.  { + Sections 1 to 7 of this 2013 Act and the
amendments to ORS 458.510 by section 8 of this 2013 Act apply to
carbon-based fuel sold to consumers or used to produce
carbon-generated electricity on or after January 1, 2015. + }
  SECTION 12.  { + 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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