Bill Text: OR HB2508 | 2013 | Regular Session | Introduced

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Bill Title: Relating to transient lodging taxes; prescribing an effective date.

Spectrum: Committee Bill

Status: (Failed) 2013-07-08 - In committee upon adjournment. [HB2508 Detail]

Download: Oregon-2013-HB2508-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 2265

                         House Bill 2508

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.

  Requires transient lodging provider and transient lodging
intermediary to collect and remit transient lodging taxes
computed on total retail price, including all charges other than
taxes, paid by person for occupancy of transient lodging.
  Takes effect on 91st day following adjournment sine die.

                        A BILL FOR AN ACT
Relating to transient lodging taxes; creating new provisions;
  amending ORS 320.300, 320.305, 320.310, 320.315, 320.320,
  320.325, 320.330, 320.345, 320.347 and 320.350; and prescribing
  an effective date.
Be It Enacted by the People of the State of Oregon:
  SECTION 1.  { + Section 2 of this 2013 Act is added to and made
a part of ORS 320.300 to 320.350. + }
  SECTION 2.  { + The Legislative Assembly declares that it is
the purpose of the amendments to ORS 320.300, 320.305, 320.310,
320.315, 320.320, 320.325, 320.330, 320.345, 320.347 and 320.350
by sections 3 to 12 of this 2013 Act to enhance the
administration and enforcement of existing law governing
transient lodging taxes in this state. + }
  SECTION 3. ORS 320.300 is amended to read:
  320.300. As used in ORS 320.300 to 320.350:
  (1) 'Collection reimbursement charge' means the amount a
transient lodging   { - provider - }   { + tax collector + } may
retain as reimbursement for the costs incurred by the
 { - provider - }   { + transient lodging tax collector + } in
collecting and reporting a transient lodging tax and in
maintaining transient lodging tax records.
  (2) 'Conference center' means a facility that:
  (a) Is owned or partially owned by a unit of local government,
a governmental agency or a nonprofit organization; and
  (b) Meets the current membership criteria of the International
Association of Conference Centers.
  (3) 'Convention center' means a new or improved facility that:
  (a) Is capable of attracting and accommodating conventions and
trade shows from international, national and regional markets
requiring exhibition space, ballroom space, meeting rooms and any
other associated space, including   { - but not limited to - }
 { + without limitation + } banquet facilities, loading areas and
lobby and registration areas;
  (b) Has a total meeting room and ballroom space between
one-third and one-half of the total size of the center's
exhibition space;
  (c) Generates a majority of its business income from tourists;
  (d) Has a room-block relationship with the local lodging
industry; and
  (e) Is owned by a unit of local government, a governmental
agency or a nonprofit organization.
  (4) 'Local transient lodging tax' means a tax imposed by a unit
of local government on the sale, service or furnishing of
transient lodging.
  (5) 'State transient lodging tax' means the tax imposed under
ORS 320.305.
  (6) 'Tourism' means economic activity resulting from tourists.
  (7) 'Tourism promotion' means any of the following activities:
  (a) Advertising, publicizing or distributing information for
the purpose of attracting and welcoming tourists;
  (b) Conducting strategic planning and research necessary to
stimulate future tourism development;
  (c) Operating tourism promotion agencies; and
  (d) Marketing special events and festivals designed to attract
tourists.
  (8) 'Tourism promotion agency' includes:
  (a) An incorporated nonprofit organization or governmental unit
that is responsible for the tourism promotion of a destination on
a year-round basis.
  (b) A nonprofit entity that manages tourism-related economic
development plans, programs and projects.
  (c) A regional or statewide association that represents
entities that rely on tourism-related business for more than 50
percent of their total income.
  (9) 'Tourism-related facility'  { +  means + }:
  (a)   { - Means - }  A conference center, convention center or
visitor information center; and
  (b)   { - Means - }  Other improved real property that has a
useful life of 10 or more years and has a substantial purpose of
supporting tourism or accommodating tourist activities.
  (10) 'Tourist' means a person who, for business, pleasure,
recreation or participation in events related to the arts,
heritage or culture, travels from the community in which that
person is a resident to a different community that is separate,
distinct from and unrelated to the person's community of
residence, and that trip:
  (a) Requires the person to travel more than 50 miles from the
community of residence; or
  (b) Includes an overnight stay.
  (11) 'Transient lodging' means:
  (a) Hotel, motel and inn dwelling units that are used for
temporary overnight human occupancy;
  (b) Spaces used for parking recreational vehicles or erecting
tents during periods of human occupancy; or
  (c) Houses, cabins, condominiums, apartment units or other
dwelling units, or portions of any of these dwelling units, that
are used for temporary human occupancy.
   { +  (12) 'Transient lodging intermediary' means a person
other than a transient lodging provider that facilitates the
retail sale of transient lodging and charges for occupancy of the
transient lodging.
  (13) 'Transient lodging provider' means a person that furnishes
transient lodging.
  (14) 'Transient lodging tax collector' means a transient
lodging provider or a transient lodging intermediary. + }
    { - (12) - }   { + (15) + } 'Unit of local government' has
the meaning given that term in ORS 190.003.

    { - (13) - }   { + (16) + } 'Visitor information center'
means a building, or a portion of a building, the main purpose of
which is to distribute or disseminate information to tourists.
  SECTION 4. ORS 320.305 is amended to read:
  320.305. (1) { + (a) + } A tax of one percent is imposed on any
consideration rendered for the sale, service or furnishing of
transient lodging.
   { +  (b)(A) The tax must be computed on the total retail
price, including all charges other than taxes, paid by a person
for occupancy of the transient lodging.
  (B) The total retail price paid by a person for occupancy of
transient lodging that is part of a travel package may be
determined by reasonable and verifiable standards from books and
records kept in the ordinary course of the transient lodging tax
collector's business.
  (c) The tax shall be collected by the transient lodging tax
collector that receives the consideration rendered for occupancy
of the transient lodging.
  (d) + } The tax imposed by this subsection   { - shall be - }
 { + is + } in addition to and not in lieu of any local transient
lodging tax.
  { - The tax shall be collected by the transient lodging
provider. - }
  (2) The transient lodging   { - provider shall - }   { + tax
collector may + } withhold  { + a collection reimbursement charge
of + } five percent of the amount   { - the provider collects - }
 { + collected + } under subsection (1) of this section   { - for
the purpose of reimbursing the provider for the cost of tax
collection, record keeping and reporting - } .
  SECTION 5. ORS 320.310 is amended to read:
  320.310. Every transient lodging   { - provider responsible for
collecting the tax imposed by ORS 320.305 - }   { + tax
collector + } shall keep records, render statements and comply
with rules adopted by the Department of Revenue with respect to
the tax { +  imposed under ORS 320.305 + }. The records and
statements required by this section must be sufficient to show
whether there is a tax liability under ORS 320.305.
  SECTION 6. ORS 320.315 is amended to read:
  320.315. (1) Every transient lodging   { - provider - }
 { + tax collector + } is responsible for collecting the tax
imposed under ORS 320.305 and shall file a return with the
Department of Revenue, on or before the last day of the month
following the end of each calendar quarter, reporting the amount
of tax due during the quarter. The department shall prescribe the
form of the return required by this section. The rules of the
department shall require that returns be made under penalties for
false swearing.
  (2) When a return is required under subsection (1) of this
section, the transient lodging   { - provider - }   { + tax
collector + } required to make the return shall remit the tax due
to the department at the time fixed for filing the return.
  SECTION 7. ORS 320.320 is amended to read:
  320.320. If the amount paid by the transient lodging
  { - provider - }   { + tax collector + } to the Department of
Revenue under ORS 320.315 exceeds the amount of tax payable, the
department shall refund the amount of the excess with interest
thereon 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 may not be made to a
transient lodging   { - provider who - }   { + tax collector
that + } fails to claim the refund within two years after the due
date for filing the return to which the claim for refund relates.
  SECTION 8. ORS 320.325 is amended to read:
  320.325. (1) Every transient lodging   { - provider required to
collect the tax imposed by ORS 320.305 shall be - }   { + tax
collector is + } deemed to hold the amount  { + of state
transient lodging taxes + } collected in trust for the State of
Oregon and for payment to the Department of Revenue in the manner
and at the time provided   { - by - }  { + under + } ORS 320.315.
  (2) At any time the transient lodging   { - provider required
to collect the tax - }   { + tax collector + } fails to remit any
amount  { + of state transient lodging taxes + } deemed to be
held in trust for the State of Oregon, 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 accrued
  { - thereon - }  { +  on the delinquent amount + }. 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 9. ORS 320.330 is amended to read:
  320.330. Unless the context requires otherwise, the provisions
of ORS chapters 305, 314 and 316   { - as to - }
 { + governing + } the audit and examination of reports and
returns, confidentiality 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
 { - relating thereto - } , apply to ORS 320.305 to 320.340
 { - , the same - }  as if the  { + state transient lodging + }
tax were a tax imposed upon or measured by net income.   { - All
such - }   { + The + } provisions apply to the taxpayer liable
for the tax and to the transient lodging   { - provider - }
 { + tax collector + } required to collect the tax.   { - As
to - }  Any amount collected and required to be remitted to the
Department of Revenue  { - , the tax shall be - }   { + is + }
considered a tax upon the transient lodging   { - provider - }
 { + tax collector + } required to collect the tax and   { - that
provider shall be - }   { + the transient lodging tax collector
is + } considered a taxpayer.
  SECTION 10. ORS 320.350 is amended to read:
  320.350. (1) A unit of local government that did not impose a
local transient lodging tax on July 1, 2003, may not impose a
local transient lodging tax on or after July 2, 2003, unless the
imposition of the local transient lodging tax was approved on or
before July 1, 2003.
  (2) A unit of local government that imposed a local transient
lodging tax on July 1, 2003, may not increase the rate of the
local transient lodging tax on or after July 2, 2003, to a rate
that is greater than the rate in effect on July 1, 2003, unless
the increase was approved on or before July 1, 2003.
  (3) A unit of local government that imposed a local transient
lodging tax on July 1, 2003, may not decrease the percentage of
total local transient lodging tax revenues that are actually
expended to fund tourism promotion or tourism-related facilities
on or after July 2, 2003. A unit of local government that agreed,
on or before July 1, 2003, to increase the percentage of total
local transient lodging tax revenues that are to be expended to
fund tourism promotion or tourism-related facilities, must
increase the percentage as agreed.
  (4) Notwithstanding subsections (1) and (2) of this section, a
unit of local government that is financing debt with local
transient lodging tax revenues on November 26, 2003, must
continue to finance the debt until the retirement of the debt,
including any refinancing of that debt. If the tax is not
otherwise permitted under subsection (1) or (2) of this section,
at the time of the debt retirement:
  (a) The local transient lodging tax revenue that financed the
debt shall be used as provided in subsection (5) of this section;
or

  (b) The unit of local government shall thereafter eliminate the
new tax or increase in tax otherwise described in subsection (1)
or (2) of this section.
  (5) Subsections (1) and (2) of this section do not apply to a
new or increased local transient lodging tax if all of the net
revenue from the new or increased tax, following reductions
attributed to collection reimbursement charges, is used
consistently with subsection (6) of this section to:
  (a) Fund tourism promotion or tourism-related facilities;
  (b) Fund city or county services; or
  (c) Finance or refinance the debt of tourism-related facilities
and pay reasonable administrative costs incurred in financing or
refinancing that debt, provided that:
  (A) The net revenue may be used for administrative costs only
if the unit of local government provides a collection
reimbursement charge; and
  (B) Upon retirement of the debt, the unit of local government
reduces the tax by the amount by which the tax was increased to
finance or refinance the debt.
  (6) At least 70 percent of net revenue from a new or increased
local transient lodging tax shall be used for the purposes
described in subsection (5)(a) or (c) of this section. No more
than 30 percent of net revenue from a new or increased local
transient lodging tax may be used for the purpose described in
subsection (5)(b) of this section.
   { +  (7)(a)(A) A local transient lodging tax must be computed
on the total retail price, including all charges other than
taxes, paid by a person for occupancy of the transient lodging.
  (B) The total retail price paid by a person for occupancy of
transient lodging that is part of a travel package may be
determined by reasonable and verifiable standards from books and
records kept in the ordinary course of the transient lodging tax
collector's business.
  (b) The tax shall be collected by the transient lodging tax
collector that receives the consideration rendered for occupancy
of the transient lodging. + }
  SECTION 11. ORS 320.345 is amended to read:
  320.345. (1) On or after January 1, 2001, a unit of local
government that imposed a local transient lodging tax on December
31, 2000, and allowed a transient lodging   { - provider - }
 { + tax collector + } to retain a collection reimbursement
charge on that tax, may not decrease the   { - percentage of
local transient lodging taxes that is used to fund - }   { + rate
of the + } collection reimbursement   { - charges - }  { +
charge + }.
  (2) A unit of local government that imposes a new local
transient lodging tax on or after January 1, 2001, shall allow a
transient lodging   { - provider - }   { + tax collector + } to
retain a collection reimbursement charge of at least five percent
of all collected local transient lodging tax revenues.   { - The
percentage of the collection reimbursement charge may be
increased by - }  The unit of local government { +  may increase
the rate of the collection reimbursement charge + }.
  (3) A unit of local government that increases a local transient
lodging tax on or after January 1, 2001, shall allow a transient
lodging   { - provider - }   { + tax collector + } to retain a
collection reimbursement charge of at least five percent of all
collected local transient lodging tax revenues  { - . The
collection reimbursement charge shall apply to all collected
local transient lodging tax revenues - } , including revenues
that would have been collected without the increase.   { - The
percentage of the collection reimbursement charge may be
increased by - }  The unit of local government { +  may increase
the rate of the collection reimbursement charge + }.
  (4) A unit of local government may not offset the loss of local
transient lodging tax revenues caused by collection reimbursement
charges   { - required by - }   { + allowed under + } this
section by:
  (a) Increasing the rate of the local transient lodging tax;
  (b) Decreasing the percentage of total local transient lodging
tax revenues used to fund tourism promotion or tourism-related
facilities; or
  (c) Increasing or imposing a new fee solely on transient
lodging   { - providers - }   { + tax collectors + } or tourism
promotion agencies that are funded by the local transient lodging
tax.
  SECTION 12. ORS 320.347 is amended to read:
  320.347. (1) Except as provided in this section, a unit of
local government that imposes a tax on the rental of privately
owned camping or recreational vehicle spaces shall, regardless of
a schedule imposed by the unit of local government for remitting
tax receipts, allow a transient lodging   { - provider - }
 { + tax collector + } to hold the tax collected until the amount
of money held   { - by the provider - }  equals or exceeds $100.
  (2) Once the amount held by a transient lodging
 { - provider - }  { + tax collector + } equals or exceeds $100,
or by December 31 of each year if the $100 threshold is not met,
the   { - provider - }   { + transient lodging tax collector + }
shall remit the tax collected at the next following reporting
period established by the unit of local government for payment of
the tax.
  (3) A unit of local government may not assess any penalty or
interest against a transient lodging   { - provider - }   { + tax
collector + } that withholds payments pursuant to this section.
  SECTION 13.  { + The amendments to ORS 320.300, 320.305,
320.310, 320.315, 320.320, 320.325, 320.330, 320.345, 320.347 and
320.350 by sections 3 to 12 of this 2013 Act apply to transient
lodging occupied on or after the effective date of this 2013
Act. + }
  SECTION 14.  { + Section 2 of this 2013 Act is repealed on
January 2, 2023. + }
  SECTION 15.  { + 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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