Bill Text: OR HB2545 | 2011 | Regular Session | Introduced
Bill Title: Relating to a tax on motor vehicle rentals; appropriating money; prescribing an effective date; providing for revenue raising that requires approval by a three-fifths majority.
Sponsorship: Unknown
Status: (Failed) 2011-06-30 - In committee upon adjournment. [HB2545 Detail]
Download: Oregon-2011-HB2545-Introduced.html
76th OREGON LEGISLATIVE ASSEMBLY--2011 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 1625
House Bill 2545
Ordered printed by the Speaker pursuant to House Rule 12.00A (5).
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.
Establishes tax on motor vehicle rentals. Deposits revenue to
State Highway Fund. Continuously appropriates moneys to
Department of Transportation for highway purposes.
Applies to motor vehicles rented on or after January 1, 2012.
Takes effect on 91st day following adjournment sine die.
A BILL FOR AN ACT
Relating to a tax on motor vehicle rentals; creating new
provisions; amending ORS 367.605; 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 8 of this 2011 Act:
(1) 'Car sharing program' has the meaning given that term in
ORS 469.185.
(2) 'Doing business in this state' means any of the following
conduct by a rental company whose business address is within or
outside this state:
(a) Delivery of a rented vehicle to a location within this
state for use by a person within this state; or
(b) Presenting a rental agreement for execution within this
state by any person.
(3) 'Motor vehicle' means an automobile, truck having a
manufacturer's gross vehicle weight not exceeding 24,000 pounds,
motor home, motorcycle, pickup camper or any motorized passenger
vehicle designed to carry fewer than 10 persons, that is capable
of being used on the highways of this state.
(4) 'Rental' or 'renting' means obtaining from a rental
company, for a rental fee, the use of a motor vehicle and all
services, supplies and commodities furnished by the rental
company in connection with providing the use of the vehicle, but
does not include leasing or other transactions in which title of
a motor vehicle is permanently or temporarily transferred from
the rental company to any other person.
(5) 'Rental company' means a person, any part of whose business
consists of providing the use of motor vehicles for a rental fee.
(6) 'Rental fee' means the gross fee and charges, whatever the
basis of their calculation, paid to a rental company by any
person for the rental of a motor vehicle. + }
SECTION 2. { + (1) A tax is imposed on every person renting a
motor vehicle from a rental company doing business in this state,
if the rental is for a period of 30 days or less. For purposes of
this section, a rental has a duration of 30 days or less if the
actual possession or use by the person renting the vehicle
terminates not later than the end of a 30-day period or if any
contract governing the rental has a duration of 30 days or less.
(2) The base rate of the tax imposed by subsection (1) of this
section is equal to 10 percent of the rental fee charged by the
rental company for the rental.
(3) The surcharge rate of the tax imposed by subsection (1) of
this section is equal to 2.5 percent of the rental fee charged by
the rental company for the rental.
(4) If, with respect to any rental fee, the tax imposed under
this section does not equal an amount calculable to a whole cent,
the rental company must charge a tax equal to the next highest
whole cent. However, the amount remitted to the Department of
Revenue by the rental company for each quarter must equal 12.5
percent of the total rental fees collected by the rental company
during the quarter. + }
SECTION 3. { + (1) The rental company shall collect the tax
imposed under section 2 of this 2011 Act at the time it collects
a rental fee.
(2) On or before the last business day of January, April, July
and October of each year, each rental company must remit to the
Department of Revenue all taxes collected during the preceding
calendar quarter. The remittance must be accompanied by a report
showing:
(a) The amount of the rental fees collected by the rental
company during the preceding quarter;
(b) The amount, if any, of those rental fees that is
attributable to and identified on the records or billings of the
rental company for gasoline sales; and
(c) Such further information as the department may prescribe.
(3) The report and all additional information required from the
rental company accompanying remittance of the collected tax is
exempt from public disclosure and remains confidential in the
possession of the department.
(4) All rental companies must maintain accurate records of
rental fees assessed and of taxes collected, and the records are
subject to review, inspection and audit within this state by the
department at all reasonable times.
(5) The rental company doing business in this state is
responsible for remittance of the tax, based on the total rental
fee, wherever collected, as well as maintenance of the
appropriate records of the fees.
(6) The tax imposed under section 2 of this 2011 Act is a debt
owed by the rental company to this state until remitted under
this section. + }
SECTION 4. { + (1) If the Department of Revenue determines
that the report required in section 3 of this 2011 Act has not
been filed or is incorrect, the department may compute and
determine the amount required to be paid upon the basis of the
facts contained in any report or reports, or upon the basis of
any available information. The department may make one or more
deficiency or evasion determinations of the amount due for one or
more than one period. The amount so determined is due and payable
immediately upon service of notice, after which the amount
determined is delinquent. Penalties on deficiencies shall be
applied as provided under section 8 of this 2011 Act.
(2) In making a determination, the department may offset any
overpayments previously made for a period or periods against any
underpayment for a subsequent period or periods, or against
penalties and interest on the underpayments. Interest on
underpayments accrues at the rate of one percent per month pro
rata from the date the tax became delinquent until the date paid.
(3) The department shall give written determination notice to
the rental company, served personally or by certified mail. If
mail service is employed, service is deemed made upon mailing.
(4) Except where fraud or intent to evade this section exists,
every deficiency determination must be made and notice given
within three years after the last day of the month following the
close of the quarterly reporting period for which the amount is
proposed to be determined, or within three years after the report
reflecting an underpayment is filed, whichever period expires
later. + }
SECTION 5. { + The tax imposed under section 2 of this 2011
Act does not apply to:
(1) A rental fee that state or federal law exempts from the
tax.
(2) A rental fee for a motor vehicle used for official
governmental business by an employee of the federal government.
(3) A motor vehicle rented by a resident of this state to
temporarily replace a vehicle being repaired or serviced.
(4) A motor vehicle rented through a car sharing program by a
member of the program. + }
SECTION 6. { + To operate in this state, a rental company
shall obtain from the Department of Consumer and Business
Services a nontransferable license for each site the company
operates within this state. The department shall collect a fee in
an amount of $___ for each license issued. + }
SECTION 7. { + All moneys received by the Department of
Revenue pursuant to sections 1 to 8 of this 2011 Act, and
interest thereon, shall be paid to the State Treasurer to be held
in a suspense account established under ORS 293.445. After the
payment of refunds:
(1) Moneys necessary to reimburse the Department of Revenue for
the actual costs incurred by the department in administering the
tax imposed under section 2 of this 2011 Act, not to exceed two
percent of collections, are continuously appropriated to the
department;
(2) The balance of the moneys received shall be transferred to
the State Highway Fund established under ORS 366.505. The moneys
transferred under this subsection are continuously appropriated
to the Department of Transportation for highway purposes; and
(3) Not more than 70 percent of the revenues collected in a
biennium under section 2 of this 2011 Act may be pledged in a
biennium to payment of revenue bonds. + }
SECTION 8. { + (1) In addition to any other penalties
prescribed by law, a rental company that fails to collect and
remit the tax required under section 2 of this 2011 Act or
otherwise fails to comply with the requirements of sections 1 to
8 of this 2011 Act is subject to a penalty equal to 50 percent of
any deficiency in the taxes remitted by the company, or to a
lesser penalty the Director of the Department of Revenue may
assess.
(2) The penalty imposed by subsection (1) of this section is a
debt owed by the rental company to this state. + }
SECTION 9. ORS 367.605 is amended to read:
367.605. (1) Moneys deposited in the State Highway Fund
established under ORS 366.505 are pledged to payment of Highway
User Tax Bonds issued under ORS 367.615.
(2) Except as provided in subsection (3) of this section,
moneys, once deposited in the highway fund from the following
sources are subject to the use or pledge described in subsection
(1) of this section:
(a) Moneys from the taxes and fees on motor carriers imposed
under ORS 825.474 and 825.480.
(b) Moneys from the tax on motor vehicle fuel imposed under ORS
319.020.
(c) Moneys from the tax on fuel used in motor vehicles imposed
under ORS 319.530.
(d) Moneys described under ORS 803.090 from the titling of
vehicles.
(e) Moneys described under ORS 803.420 from the registration of
vehicles.
(f) Moneys described under ORS 807.370 relating to the issuance
of driver licenses and driver permits.
{ + (g) Subject to the limitation provided in section 7 of
this 2011 Act, moneys from the tax on rentals of motor vehicles
imposed under section 2 of this 2011 Act. + }
{ - (g) - } { + (h) + } Moneys received by the Department
of Transportation from taxes, fees or charges imposed after
January 1, 2001, or other revenues received by the department
from sources not listed in paragraphs (a) to { - (f) - }
{ + (g) + } of this subsection that are available for the use or
pledge described by this section.
(3) Moneys described under subsection (2) of this section do
not include:
(a) Moneys provided for appropriations to counties under ORS
366.762 to 366.768.
(b) Moneys provided for appropriations to cities under ORS
366.785 to 366.820.
(c) Moneys in the account established under ORS 366.512 for
parks and recreation.
(4) To the extent affirmatively pledged, moneys from the
following sources are subject to the use or pledge described in
subsection (1) of this section:
(a) Moneys received by the Department of Transportation from
the United States government.
(b) Any other moneys legally available to the department.
(5) Notwithstanding ORS 366.507, the lien or charge of any
pledge of moneys securing bonds issued under ORS 367.615 is
superior or prior to any other lien or charge and to any law of
{ - the - } { + this + } state requiring the department to
spend moneys for specified highway purposes.
SECTION 10. { + Sections 1 to 8 of this 2011 Act and the
amendments to ORS 367.605 by section 9 of this 2011 Act apply to
motor vehicles rented on or after January 1, 2012. + }
SECTION 11. { + This 2011 Act takes effect on the 91st day
after the date on which the 2011 session of the Seventy-sixth
Legislative Assembly adjourns sine die. + }
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