Bill Text: OR HB3074 | 2013 | Regular Session | Introduced
Bill Title: Relating to taxation; appropriating money; prescribing an effective date.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Failed) 2013-07-08 - In committee upon adjournment. [HB3074 Detail]
Download: Oregon-2013-HB3074-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 2864
House Bill 3074
Sponsored by Representative READ
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.
Enacts uniform sales and use tax administration provisions.
Directs Department of Revenue to enter into Streamlined Sales and
Use Tax Agreement with other states. Imposes sales tax on sales
of tangible personal property or services. Imposes use tax on use
of tangible personal property purchased out-of-state. Provides
exemptions from sales and use tax. Provides civil and criminal
penalties for noncompliance.
Provides that sales and use tax provisions become operative on
January 1, 2016, and apply to transactions occurring on or after
January 1, 2016, but do not become operative if Streamlined Sales
and Use Tax Agreement is not executed prior to January 1, 2016.
Reduces rates of personal income taxation. Creates subtraction
from taxable income for portion of net capital gain. Applies to
tax years beginning on or after January 1, 2016.
Increases percentage of federal earned income credit allowable
as credit against Oregon personal income tax. Applies to tax
years beginning on or after January 1, 2015.
Extends sunset for credit against Oregon personal income tax
based on federal earned income credit.
Creates income tax credit for business investment. Provides for
certification of taxpayers as eligible for tax credit by Director
of Oregon Business Development Department. Limits amount of
potential tax credits for all taxpayers certified as eligible to
$50 million per tax year. Applies to investments made in tax
years beginning on or after January 1, 2016.
Exempts from ad valorem property taxation first $50,000 of
assessed value of property that is taxpayer's owner occupied
principal dwelling. Applies to property tax years beginning on or
after July 1, 2016.
Takes effect only if constitutional amendment proposed by ___
Joint Resolution ___ (2013) (LC 2864-1) is approved by people at
next regular general election. Takes effect on effective date of
constitutional amendment proposed by ___ Joint Resolution ___
(2013) (LC 2864-1).
A BILL FOR AN ACT
Relating to taxation; creating new provisions; amending ORS
305.130, 305.265, 305.270, 305.280, 305.380, 305.565, 305.850,
305.895, 311.250, 314.430, 314.752, 315.266, 316.037, 318.031,
731.840, 801.040, 802.110 and 803.585; repealing sections 5 and
6, chapter 880, Oregon Laws 2007; appropriating money; and
prescribing an effective date.
Be It Enacted by the People of the State of Oregon:
{ +
UNIFORM SALES AND USE TAX + }
{ +
ADMINISTRATION ACT + }
SECTION 1. { + Sections 1 to 7 of this 2013 Act shall be known
and may be cited as the Uniform Sales and Use Tax Administration
Act. + }
SECTION 2. { + As used in sections 1 to 129 and 131 to 144 of
this 2013 Act:
(1) 'Certified automated system' means software certified
jointly by the states that are signatories to the Streamlined
Sales and Use Tax Agreement to compute the tax imposed by each
jurisdiction on a transaction, determine the amount of tax to
remit to the appropriate state and maintain a record of the
transaction.
(2) 'Certified service provider' means an agent certified
jointly by the states that are signatories to the Streamlined
Sales and Use Tax Agreement to perform all of the seller's sales
and use tax functions other than the seller's obligation to remit
tax on its own purchases.
(3) 'Model 1 Seller' means a seller registered pursuant to
section 19 of this 2013 Act that has contracted with a certified
service provider as its agent.
(4) 'Model 2 Seller' means a seller registered pursuant to
section 19 of this 2013 Act that uses a certified automated
system to perform part of the seller's sales and use tax
functions, other than the seller's obligation to remit the taxes.
(5)(a) 'Model 3 Seller' means a seller that:
(A) Is registered pursuant to section 19 of this 2013 Act;
(B) Has sales in at least five member states;
(C) Has total annual sales revenue of at least $500,000,000;
(D) Has a proprietary system that calculates the amount of tax
due to each jurisdiction; and
(E) Has entered into a performance agreement with the member
states that establishes a tax performance standard for the
seller.
(b) 'Model 3 Seller' includes an affiliated group of sellers
using the same proprietary system.
(6) 'Model 4 Seller' means a seller registered pursuant to
section 19 of this 2013 Act other than a Model 1 Seller, Model 2
Seller or Model 3 Seller.
(7) 'Person' means an individual, trust, estate, fiduciary,
partnership, limited liability company, limited liability
partnership, corporation or any other legal entity.
(8) 'Sales tax' means the tax imposed under section 11 of this
2013 Act.
(9) 'Seller' means a person making sales, leases or rentals of
tangible personal property or services.
(10) 'State' means any state of the United States or the
District of Columbia.
(11) 'Streamlined Sales and Use Tax Agreement' means the
Streamlined Sales and Use Tax Agreement adopted by the
Streamlined Sales Tax Project on November 12, 2002, as amended
and in effect on the effective date of this 2013 Act.
(12) 'Use tax' means the tax imposed under section 22 of this
2013 Act. + }
SECTION 3. { + The Legislative Assembly finds and declares
that its purpose in entering into the Streamlined Sales and Use
Tax Agreement with one or more states is to simplify and
modernize sales and use tax administration in order to
substantially reduce the burden of tax compliance for all sellers
and for all types of commerce. + }
SECTION 4. { + (1) The Department of Revenue shall enter into
the Streamlined Sales and Use Tax Agreement with one or more
states.
(2) After entry into the agreement, the department may:
(a) Act jointly with other states that are members of the
agreement to establish certification standards for a certified
service provider and certified automated system and to establish
performance standards for multistate sellers.
(b) Adopt rules to implement sections 1 to 7 of this 2013 Act.
(c) Procure jointly with other member states goods and services
in furtherance of the agreement.
(d) Take other actions reasonably necessary to implement the
provisions of sections 1 to 7 of this 2013 Act.
(3) The department may represent this state before the other
states that are signatories to the agreement. + }
SECTION 5. { + (1) No provision of the Streamlined Sales and
Use Tax Agreement entered into pursuant to section 4 of this 2013
Act invalidates or amends, in whole or part, any provision of the
law of this state.
(2) Adoption of the agreement by this state does not amend any
law of this state.
(3) Implementation of any condition of the agreement in this
state, whether adopted before, at the time of or after entry of
this state into the agreement, must be by the action of this
state. + }
SECTION 6. { + (1) The Streamlined Sales and Use Tax Agreement
authorized by sections 1 to 7 of this 2013 Act binds and inures
only to the benefit of this state and the other member states. No
person, other than a member state, is an intended beneficiary of
the agreement. Any benefit to a person other than a state is
established by the law of this state and the other member states
and not by the terms of the agreement.
(2) A person has no cause of action or defense under the
agreement or by virtue of the approval of the agreement by this
state. A person may not challenge, in any action brought under
any provision of law, any action or inaction by any department,
agency or other instrumentality of this state, or any political
subdivision of this state, on the ground that the action or
inaction is inconsistent with the agreement.
(3) No law of this state or application of the law may be
declared invalid as to any person or circumstance on the ground
that the provision or application is inconsistent with the
agreement. + }
SECTION 7. { + (1) A certified service provider is liable for
sales and use tax due each member state on all sales transactions
the certified service provider processes for a seller except as
set out in this section.
(2)(a) A Model 1 Seller is not liable to this state for sales
or use tax due on transactions processed by the seller's
certified service provider unless the seller misrepresented the
type of items the seller sells or committed fraud. In the absence
of probable cause to believe that the seller has committed fraud
or made a material misrepresentation, the seller is not subject
to audit on transactions processed by the seller's certified
service provider. A seller is subject to audit for transactions
not processed by the seller's certified service provider.
(b) Member states acting jointly may perform a system check of
a Model 1 Seller and review the seller's procedures to determine
if the system of the seller's certified service provider is
functioning properly and the extent to which the seller's
transactions are being processed by the certified service
provider.
(3) A person that provides a certified automated system is
responsible for the proper functioning of that system and is
liable to the state for underpayments of tax attributable to
errors in the functioning of the certified automated system. A
Model 2 Seller remains liable to the state for reporting and
remitting tax processed by the seller's certified automated
system.
(4) A Model 3 Seller is liable for the failure of the seller's
proprietary system to meet the tax performance standard
established in the seller's performance agreement with the
state. + }
{ +
THE SALES AND USE TAX LAW + }
SECTION 8. { + Sections 8 to 129 and 131 to 144 of this 2013
Act shall be known and may be cited as the Sales and Use Tax
Law. + }
SECTION 9. { + As used in sections 8 to 129 and 131 to 144 of
this 2013 Act:
(1) 'Business' means any activity engaged in with the object of
gain, benefit or advantage, either direct or indirect.
(2) 'Delivery charge' means a charge by the seller of personal
property or services for preparation and delivery to a location
designated by the purchaser of personal property or services.
(3) 'Engaged in business in this state,' with respect to a
seller at retail, means:
(a) Maintaining, occupying or using, permanently or
temporarily, directly or indirectly, or through a subsidiary or
other agent, by whatever name, an office, place of distribution,
sales or sample room or place, warehouse or storage place or
other place of business;
(b) Having a representative, agent, salesperson, canvasser or
solicitor operating in this state under the authority of the
seller or its subsidiary for the purpose of selling, delivering
or taking orders for tangible personal property; or
(c) Deriving rental income from a lease of tangible personal
property located in this state.
(4)(a) 'Gross receipts' means the total amount of
consideration, including cash, credit, property and services, for
which personal property or services are sold, leased or rented,
without any deduction for:
(A) The seller's cost of the property that is being sold;
(B) The cost of materials, labor, interest, losses,
transportation to the seller, taxes imposed on the seller or
other expense of the seller;
(C) Charges by the seller for any services necessary to
complete the sale, other than delivery and installation charges;
(D) Delivery charges;
(E) Installation charges; or
(F) The value of exempt personal property given to the
purchaser, if taxable and exempt personal property have been sold
by the seller as a single product.
(b) 'Gross receipts' does not mean:
(A) Discounts, including cash, term or coupons that are not
reimbursed by a third party, that are allowed by a seller and
taken by a purchaser on a sale;
(B) Separately stated credit for a trade-in of property of a
like kind;
(C) Interest, financing or carrying charges from credit
extended on the sale of personal property or services, if the
amount is separately stated on the invoice; or
(D) Taxes that are legally imposed directly on the purchaser
and that are separately stated on the invoice, bill of sale or
similar document given to the purchaser.
(5) 'In this state' or 'within this state' means within the
exterior limits of the State of Oregon and includes all territory
within these limits owned by or ceded to the United States of
America.
(6) 'Internal Revenue Code' means the federal Internal Revenue
Code, as amended and in effect on December 31, 2012.
(7)(a) 'Lease' means a transfer of possession or control of
tangible personal property for a fixed or indeterminate term for
consideration, or a future option to purchase or extend the
possession or control of the tangible personal property.
(b) 'Lease' does not mean:
(A) A transfer of possession or control of tangible personal
property under a security agreement or deferred payment plan that
requires the transfer of title upon completion of the required
payments.
(B) A transfer of possession or control of tangible personal
property under an agreement that requires the transfer of title
upon completion of required payments and payment of an option
price that does not exceed the greater of $100 or one percent of
the total of required payments.
(C) The provision of tangible personal property and an operator
of the tangible personal property for a fixed or indeterminate
period of time, if the operator is necessary for the equipment to
perform as designed. For purposes of this subparagraph, an
operator must do more than maintain, inspect or set up the
tangible personal property.
(D) An agreement covering the rental of a motor vehicle, if the
rental agreement contains a terminal rental adjustment clause as
defined in section 7701(h)(3) of the Internal Revenue Code.
(E) A rental agreement that was executed prior to the date on
which the Department of Revenue enters into the Streamlined Sales
and Use Tax Agreement.
(8) 'Motor vehicle' has the meaning given that term in ORS
801.360.
(9) 'Nonprofit corporation' means:
(a) A nonprofit corporation organized and existing under ORS
chapter 65; or
(b) A corporation described in section 501(c)(3) of the
Internal Revenue Code that is exempt from income tax under
section 501(a) of the Internal Revenue Code. + }
{ + (10) 'Nonresident' means an individual who is not a
resident of this state.
(11) 'Occasional sale' means:
(a) A sale of property not held or used by a seller in the
course of activities for which the seller is required to register
pursuant to section 19 of this 2013 Act or would be required to
register if the activities were conducted in this state, but only
if the sale is not one of a series of sales sufficient in number,
scope and character to constitute an activity for which the
seller is required to register or would be required to register
if the activity were conducted in this state.
(b) A transfer of 80 percent or more, in terms of sales price,
of the tangible personal property held or used by a person in the
course of an activity requiring the transferor to register
pursuant to section 19 of this 2013 Act, if, after the transfer,
the real or ultimate ownership of the property is substantially
similar to that which existed before the transfer. For the
purposes of this paragraph, stockholders, bondholders, partners
or other persons holding an interest in a corporation or other
entity are regarded as having the real or ultimate ownership of
the property of the corporation or other entity.
(12) 'Purchase price' has the same meaning as 'sales price. '
(13) 'Rental' has the same meaning as 'lease. '
(14) 'Resident' and 'resident of this state' have the meaning
given those terms in ORS 316.027.
(15) 'Retail sale' or 'sale at retail' means a sale or lease
for any purpose other than for resale, sublease or subrent.
(16) 'Sales price' means the total amount of gross receipts
derived from the sale or lease of tangible personal property or
services.
(17) 'Sales tax reimbursement' means an amount equal to the
sales tax that the seller is required to remit to the state and
that is added by the seller to the purchase price payable by the
purchaser.
(18) 'Services' means all activities engaged in for the benefit
of other persons for a fee, retainer, commission or other
monetary charge, if the activities predominantly involve the
performance of a service as distinguished from selling property.
(19)(a) 'Storage' means keeping or retaining in this state
tangible personal property purchased from a seller at retail, for
any purpose other than sale of the property in the regular course
of business or subsequent use of the property solely outside this
state.
(b) 'Storage' does not mean keeping, retaining or exercising
any right or power over tangible personal property for the
purpose of:
(A) Subsequently transporting the property outside this state
for use solely outside this state; or
(B) Having the property processed, fabricated or manufactured
into, attached to or incorporated into, other tangible personal
property to be subsequently transported outside this state for
use solely outside this state.
(20)(a) 'Tangible personal property' means personal property
that can be seen, weighed, measured, felt or touched, or that is
in any other manner perceptible to the senses.
(b) 'Tangible personal property' includes electricity, water,
gas, steam and prewritten computer software.
(c) 'Tangible personal property' does not mean a product that
is transferred electronically, other than telecommunications
services or services ancillary to telecommunications services.
(21)(a) 'Use' means the exercise of any right or power over
tangible personal property incident to the ownership of the
property, including the possession of, or the exercise of any
right or power over, tangible personal property by a lessee under
a lease.
(b) 'Use' does not mean the sale of tangible personal property
in the regular course of business.
(c) 'Use' does not mean keeping, retaining or exercising any
right or power over tangible personal property for the purpose
of:
(A) Subsequently transporting the property outside this state
for use solely outside this state; or
(B) Having the property processed, fabricated or manufactured
into, attached to or incorporated into, other tangible personal
property to be subsequently transported outside this state for
use solely outside this state. + }
SECTION 10. { + (1) The Department of Revenue shall adopt
rules for sourcing the retail sale of products and services. The
rules must conform to the sourcing provisions of the Streamlined
Sales and Use Tax Agreement.
(2) The department may adopt rules defining terms for purposes
of imposing and administering the sales tax and the use tax,
including rules defining categories of products or services. The
rules must conform to definitions set forth in the Streamlined
Sales and Use Tax Agreement. + }
{ +
THE SALES TAX + }
SECTION 11. { + (1) Pursuant to Article IX, section 16, of the
Oregon Constitution, in addition to all other taxes of every
kind, for the privilege of selling tangible personal property or
services at retail in this state, a tax payable by the seller is
imposed upon all sales at retail of tangible personal property
and services at the rate of five percent of the gross receipts
from the sale.
(2) A unit of local government may not impose a sales tax that
is not approved by the governing body of the local government on
or before November 4, 2014. + }
SECTION 12. { + (1) Whether a seller may add sales tax
reimbursement to the sales price of tangible personal property or
services sold at retail depends solely upon the terms of the
agreement of sale.
(2) It is presumed that the seller and purchaser agreed to the
addition of sales tax reimbursement to the sales price of
tangible personal property or services sold at retail to a
purchaser if:
(a) The agreement of sale expressly provides for the sales tax
reimbursement;
(b) Sales tax reimbursement is shown on the sales check or
other proof of sale; or
(c) The seller posts in the seller's premises in a location
visible to purchasers, or includes on a price tag or in an
advertisement or other printed material directed to purchasers, a
notice to the effect that sales tax reimbursement will be added
to the sales price of all services, items or certain items, as
applicable.
(3) It is presumed that the property or services, the gross
receipts from the sale of which are subject to the sales tax, are
sold at a price that includes sales tax reimbursement if the
seller posts in the premises or includes on a price tag or in an
advertisement, as applicable, one of the following notices:
(a) 'All prices of taxable items include sales tax
reimbursement computed to the nearest cent. '
(b) 'The price of this item includes sales tax reimbursement
computed to the nearest cent.' + }
SECTION 13. { + (1) The Department of Revenue shall adopt a
rounding algorithm that:
(a) Computes the sales tax and the sales tax reimbursement
allowable under section 12 of this 2013 Act to the third decimal
place; and
(b) Rounds the amount up to the next cent whenever the third
decimal place is greater than four.
(2) A seller may compute the sales tax due on a transaction on
an item or an invoice basis and may apply the rounding rule of
subsection (1) of this section to aggregated state and local
taxes.
(3) A seller may not be required to collect tax based on a
bracket system. + }
SECTION 14. { + (1) The Department of Revenue shall complete
the taxability matrix that is adopted by the Streamlined Sales
Tax Governing Board.
(2) The department shall provide and maintain entries in the
taxability matrix in a database that is in a downloadable format
that complies with the Streamlined Sales and Use Tax Agreement.
(3) Purchasers, sellers and certified service providers are
relieved from liability for sales tax or use tax to the extent
that the seller or certified service provider charged and
collected an incorrect amount of sales tax or use tax as a result
of reliance on erroneous data provided by the department for the
taxability matrix. + }
SECTION 15. { + (1)(a) The Department of Revenue may authorize
a seller to pay the sales tax upon sales made through vending
machines and similar devices, or under conditions of business
that render the collection of the tax as a separate item
impracticable, and to waive sales tax reimbursement from the
purchaser.
(b)(A) If sales are made by receipt of a coin or coins dropped
into a receptacle that results in delivery of the merchandise in
single purchases of smaller value than the minimum sale upon
which a one cent tax may be collected from the purchaser, and if
the design of the device is such that multiple sales of items are
not possible or cannot be detected so as practicably to assess a
tax, then no tax shall be assessed or collected on the gross
receipts from such sales if adequate and complete records are
kept by the vending machine operator, readily available for
inspection by the department.
(B) If adequate and complete records are not maintained as
required under subparagraph (A) of this paragraph, the gross
receipts for the purposes of the sales tax are 60 percent of the
gross receipts of the vending machine through which the sales are
made, determined by the department according to the best of its
information and belief, using such records as are available.
(c) As used in this subsection, 'adequate and complete records'
means that the vending machine operator regularly maintains
records that would enable a department auditor to accurately
ascertain liability for sales taxes, showing the location or
locations of each machine operated by the vending machine
operator during each reporting period, the serial number of the
machine, purchases and inventories of merchandise bought for sale
through all vending machines and the gross receipts derived from
the operation at each location during each reporting period.
(2)(a) No authority under subsection (1) of this section may be
granted except upon application to the department for a permit
and unless the department finds that the conditions of the
applicant's business are such as to render the collection of the
tax in the manner otherwise provided impracticable.
(b) If required by the department, an applicant under this
section must furnish a proper bond sufficient to secure the
payment of the tax. One permit is sufficient for all machines of
one operator. The operator shall affix in a conspicuous place on
each vending machine a statement that includes the operator's
name, place of business and permit number. + }
SECTION 16. { + (1)(a) When an amount represented by a seller
at retail to a purchaser as constituting sales tax reimbursement
is computed upon an amount that is not taxable or is in excess of
the taxable amount and is actually paid by the purchaser to the
seller, the excess sales tax reimbursement paid shall be returned
by the seller to the purchaser upon written notification by the
Department of Revenue or the purchaser.
(b) The written notification must contain information necessary
to determine the validity of the purchaser's claim.
(2) If the seller does not return the excess sales tax
reimbursement within 60 days after mailing of the written
notification required under subsection (1) of this section, the
purchaser may appeal to the Oregon Tax Court under ORS 305.275
for the amount of the excess sales tax reimbursement.
(3)(a) Amounts validly claimed by a purchaser under this
section but not returned to the purchaser by the seller shall be
remitted by the seller to the Department of Revenue.
(b) Amounts remitted to the department under this subsection
shall be credited by the department against any amounts of sales
tax or use tax, as applicable, due and payable on the same
transaction from the seller that remitted the amount and the
balance, if any, shall constitute an obligation due from the
seller to this state. + }
SECTION 17. { + (1)(a) A seller is relieved from liability for
sales tax to the extent that the tax is computed on accounts
that, for federal income tax purposes, constitute deductible bad
debt under section 166 of the Internal Revenue Code.
(b) Notwithstanding paragraph (a) of this subsection, the
amount of bad debt for which liability is relieved under this
section shall be reduced by:
(A) Interest or other financing charges;
(B) Sales or use taxes charged on the sale of the property or
services from which the bad debt is derived;
(C) Uncollectible amounts due on property that remains in the
possession of the seller until the full purchase price is paid;
(D) Expenses incurred in attempting to collect any debt; or
(E) The value of repossessed property.
(2) A deduction for bad debt allowed under this section may not
include interest charged by the seller on delinquent amounts.
(3) Bad debt may be deducted only on the tax return for the
period during which the bad debt is written off as uncollectible
in the books and records of the taxpayer and is eligible for
deduction for federal tax purposes, or would be eligible for
deduction if the taxpayer were required to file a federal income
tax return.
(4) If bad debt that is deducted under subsection (1) of this
section is subsequently collected, in whole or in part, the
amount collected shall be added to amounts on which the sales tax
liability of the taxpayer is computed for the reporting period in
which the amount is collected.
(5) If the amount of bad debt that may be deducted exceeds the
amount on which the sales tax liability of the taxpayer is
computed for the reporting period in which the bad debt is
written off, the taxpayer may file a claim for a refund within
the time and in the manner provided in ORS 305.270.
(6) If a seller's filing responsibilities have been assumed by
a certified service provider, the certified service provider may
claim on behalf of the seller any bad debt allowance provided
under this section. The certified service provider must credit or
refund the full amount of any bad debt allowance or refund
received by the certified service provider to the seller.
(7) For purposes of reporting a payment received on a
previously claimed bad debt, any payments made on a debt or
account must be applied first proportionally to the taxable sales
price of the property or service and the sales tax on the sales
price, and then to interest, service charges and any other
charges.
(8) The Department of Revenue shall adopt rules for the
allocation of bad debt between Oregon and other states in cases
in which the amount of bad debt for federal income tax purposes
is attributable to debt from both within and outside Oregon. + }
{ +
SELLER REGISTRATION + }
SECTION 18. { + (1) The Department of Revenue shall design and
implement an online sales tax registration system that complies
with the Streamlined Sales and Use Tax Agreement.
(2) A seller may not be required to pay a fee in order to
register for sales and use tax purposes.
(3) The department may adopt any rules necessary to implement
the registration system or to facilitate registration or the
operation of the registration system. + }
SECTION 19. { + (1) Each person seeking to conduct business in
this state as a seller shall register with the Department of
Revenue through the online registration system operated pursuant
to section 18 of this 2013 Act.
(2) A certified service provider may register on behalf of a
Model 1 Seller.
(3) A person may not conduct business as a seller in this state
without registering under this section.
(4) Each individual who bears any responsibility for the
direction or management of an entity of any kind that conducts
business in violation of subsection (3) of this section is guilty
of violating that subsection. + }
SECTION 20. { + For purposes of the proper administration of
the Sales and Use Tax Law and to prevent evasion of the sales
tax, all gross receipts are presumed subject to the sales tax
until the contrary is established. The burden of proving that a
sale of tangible personal property or services is not a sale at
retail is upon the seller. + }
SECTION 21. { + (1) A seller that registers pursuant to
section 19 of this 2013 Act shall receive amnesty for uncollected
or unpaid sales or use tax, provided that:
(a) The seller was not registered in this state in the 12-month
period immediately preceding the effective date of this state's
participation in the Streamlined Sales and Use Tax Agreement; and
(b) The seller registers within 12 months after the effective
date of this state's participation in the Streamlined Sales and
Use Tax Agreement.
(2) The amnesty provided under this section precludes
assessment for uncollected or unpaid sales or use tax, including
any penalty or interest for sales made during the period the
seller was not registered in this state.
(3) Notwithstanding subsections (1) and (2) of this section,
amnesty is not available:
(a) To a seller with respect to any matter for which the seller
has received notice of the commencement of an audit that is not
finally resolved, including any related administrative and
judicial proceedings.
(b) For sales or use taxes that have been paid or remitted to
the state or collected by the seller.
(4)(a) Amnesty under this section is fully effective, absent
the seller's fraud or intentional misrepresentation of a material
fact, as long as the seller continues registration and continues
payment or collection and remittance of applicable sales or use
taxes for a period of at least 36 months.
(b) The statute of limitations for assessing a tax liability
covered by the amnesty is tolled during the 36-month period
described in paragraph (a) of this subsection.
(5) Amnesty under this section applies only to sales or use
taxes due from a seller in its capacity as a seller and not in
its capacity as a purchaser.
(6) The Department of Revenue shall adopt uniform rules for
granting amnesty under this section. + }
{ +
THE USE TAX + }
SECTION 22. { + (1) Pursuant to Article IX, section 16, of the
Oregon Constitution, a use tax is imposed on the storage, use or
other consumption in this state of tangible personal property
purchased from any seller at the rate of five percent of the
purchase price of the property. + }
{ + (2) A unit of local government may not impose a use tax
that is not approved by the governing body of the local
government on or before November 4, 2014. + }
SECTION 23. { + (1) Every purchaser storing, using or
otherwise consuming in this state tangible personal property
purchased from a seller is liable for the use tax.
(2) A purchaser's liability under subsection (1) of this
section is not satisfied until the use tax has been paid to this
state.
(3) Notwithstanding subsection (2) of this section, a
purchaser's liability under subsection (1) of this section is
satisfied by a valid receipt given to the purchaser pursuant to
section 24 of this 2013 Act by a seller that is:
(a) Engaged in business in this state; or
(b) Authorized by the Department of Revenue, pursuant to such
rules as the department adopts, to collect the tax and that, for
purposes of the use tax, is regarded as a seller engaged in
business in this state. + }
SECTION 24. { + (1) Except as provided in section 42 of this
2013 Act, a seller shall collect the use tax from a purchaser and
give the purchaser a receipt for the tax in the manner and form
prescribed by the Department of Revenue if:
(a) The seller is:
(A) Engaged in business in this state;
(B) Required to collect the use tax; or
(C) Authorized to collect tax by the department; and
(b) The seller makes sales of tangible personal property for
storage, use or other consumption in this state that are not
exempt for purposes of the Sales and Use Tax Law.
(2) A seller required to collect the use tax under this section
shall collect the tax:
(a) At the time of making a taxable sale; or
(b) If the storage, use or other consumption of the tangible
personal property is not taxable at the time of sale, at the time
the storage, use or other consumption becomes taxable.
(3) The following amounts constitute a debt owed by the seller
to this state:
(a) Tax collected under subsection (1) of this section by the
seller; and
(b) Any amount that is not returned to the purchaser and that
is not tax but was collected under representation by the seller
that it was a tax.
(4) With respect to leases constituting sales of tangible
personal property, the use tax shall be collected from the lessee
at the time amounts are paid by the lessee under the lease.
(5) Unless the department otherwise provides by rule, the use
tax required to be collected by the seller from the purchaser
under this section shall be displayed separately from the list
price, the price advertised on the seller's premises, the marked
price or other price on the sales check or other proof of
sale. + }
SECTION 25. { + (1) The Director of the Department of Revenue
may, upon application of a seller, authorize collection of the
use tax by the seller if the seller furnishes adequate security
to ensure collection and payment of the tax.
(2) Upon authorization under subsection (1) of this section,
the Department of Revenue shall issue to the seller, without
charge, a permit to collect the use tax in the manner prescribed
by the director.
(3) When authorized, a seller shall collect the use tax upon
all tangible personal property sold by the seller for use,
storage or other consumption within this state.
(4) The department may cancel a seller's permit if, at any
time, the director considers the security inadequate or
determines that the tax can be collected more effectively from
purchasers of the tangible personal property.
(5) The department shall adopt rules necessary to administer
this section. + }
SECTION 26. { + To ensure the proper administration of the
Sales and Use Tax Law and to prevent evasion of the use tax and
the duty to collect the use tax, the following presumptions are
established:
(1)(a) Tangible personal property sold by any seller for
delivery in this state was sold for storage, use or other
consumption in this state unless the contrary is proved.
(b) The burden of proving the contrary is on the seller unless
the seller takes from the purchaser a resale certificate to the
effect that the property is purchased for resale.
(2) Tangible personal property shipped or brought to this state
by the purchaser was purchased from a seller on or after the
operative date of section 22 of this 2013 Act for storage, use or
other consumption in this state.
(3)(a) Tangible personal property delivered outside this state
to a purchaser known by the seller to be a resident of this state
was purchased from a seller for storage, use or other consumption
in this state and stored, used or otherwise consumed in this
state unless the contrary is established.
(b) The contrary may be proved by:
(A) A statement in writing, signed by the purchaser or an
authorized agent of the purchaser, and retained by the seller,
that the property was purchased for use at a designated point or
points outside this state; or
(B) Other evidence satisfactory to the Department of Revenue
that the property was not purchased for storage, use or other
consumption in this state.
(4)(a) A motor vehicle purchased outside this state that is
brought into this state on or before the 90th day after its
purchase, was acquired for storage, use or other consumption in
this state.
(b) The presumption established in paragraph (a) of this
subsection does not apply to a member of the Armed Forces of the
United States on active duty who purchases a motor vehicle prior
to the member's effective date of discharge. The member is not
considered to have purchased the motor vehicle for storage, use
or other consumption in this state unless at the time of purchase
the member intended to use it in this state, the intent resulting
from the member's own determination rather than from official
orders received as a member of the Armed Forces transferring the
member to this state. + }
SECTION 27. { + (1) A credit against the use tax on tangible
personal property in the amount of a general retail sales or use
tax or sales tax reimbursement paid by a person to another state
or political subdivision of the state with respect to the
property prior to the storage, use or other consumption of the
property in this state shall be allowed to the person.
(2) A credit otherwise permitted under subsection (1) of this
section may not be allowed against taxes that are measured by
periodic payments made under a lease, to the extent that the
taxes imposed by the other state or political subdivision of the
state were also measured by periodic payments made under a lease
for a period prior to the storage, use or other consumption of
the property in this state. + }
SECTION 28. { + A resale certificate relieves a seller from
liability for the sales tax or the duty to collect the use tax
only if the certificate is taken from a purchaser who is a seller
registered under section 19 of this 2013 Act. + }
SECTION 29. { + (1) A valid resale certificate must:
(a) Be signed by and bear the name and address of the
purchaser;
(b) Include information that identifies the purchaser as a
seller registered pursuant to section 19 of this 2013 Act; and
(c) Indicate the general character of the tangible personal
property sold by the purchaser in the regular course of business.
(2) A resale certificate must otherwise be substantially in
such form as the Department of Revenue prescribes by rule. + }
SECTION 30. { + (1) If a purchaser who gives a resale
certificate to a seller or who purchases tangible personal
property for the purpose of reselling it stores or makes any use
of the property other than retention, demonstration or display
while holding it for sale in the regular course of business,
including display at trade shows, the storage or use is subject
to the use tax as of the time the property is first stored or
used by the purchaser and, except as provided in subsections (2)
and (3) of this section, the sales price of the property paid by
the purchaser is the measure of the tax.
(2) If the use is limited to the loan of the property to
customers as an accommodation while awaiting delivery of property
purchased or leased from the lender or while property is being
repaired for customers by the lender, the measure of the tax is
the fair rental value of the property for the duration of each
loan.
(3) If the property is used frequently for purposes of
demonstration or display while holding it for sale in the regular
course of business and is used partly for other purposes, the
measure of the tax is the fair rental value of the property for
the period of the other uses. + }
SECTION 31. { + (1) If a purchaser acquires property in an
occasional sale as defined in section 9 (11)(b) of this 2013 Act
and leases the property, the purchaser may elect at the time the
property is first leased to pay the use tax measured by the
purchase price of the property.
(2) The purchase price paid by a transferee shall be the same
as the purchase price paid by the original purchaser.
(3) For purposes of this section, 'purchaser' includes a
transferee who acquires property in a transaction that is an
occasional sale as defined in section 9 (11)(b) of this 2013
Act. + }
SECTION 32. { + If a purchaser gives a resale certificate with
respect to the purchase of fungible goods and thereafter
commingles the goods with other fungible goods not so purchased
but of such similarity that the identity of the constituent goods
in the commingled mass cannot be determined, sales from the mass
of commingled goods shall be deemed to be sales of the goods so
purchased until a quantity of commingled goods equal to the
quantity of purchased goods so commingled has been sold. + }
SECTION 33. { + A purchaser may not give, for the purpose of
evading payment to the seller or other person selling the
property of the amount of the tax applicable to the transaction,
a resale certificate for property that the purchaser knows, at
the time of purchase, is not to be resold by the purchaser in the
regular course of business. + }
SECTION 34. { + (1)(a) The Department of Revenue may authorize
a purchaser of substantial amounts of tangible personal property
or services to pay the sales tax or use tax directly to the
department and to waive the collection of the tax by the seller.
(b) The department shall design and implement a direct pay
permit program that complies with the requirements of the
Streamlined Sales and Use Tax Agreement.
(c) In order to make direct payments of the sales tax or use
tax under paragraph (a) of this subsection, a purchaser must
obtain a direct pay permit from the department in the time and
manner prescribed by the department by rule.
(2)(a) The department may revoke a direct pay permit and the
authority granted to a purchaser under a direct pay permit for
failure to comply with the conditions under which the authority
was granted or for any reason constituting misuse of the
authority.
(b) The department shall adopt rules establishing an appeal
process for revocations of permits under this section.
(3)(a) As soon as practicable after the revocation of a direct
pay permit, the purchaser shall give written notice of the
revocation to each seller with whom the purchaser has transacted
business using a direct pay permit, and shall supply the
department with evidence that the notice has been given.
(b) Notwithstanding section 137 of this 2013 Act, if the
purchaser fails to notify a seller of the revocation, the
department may give notice of the revocation to the seller.
(4) Notwithstanding subsection (2) of this section, a direct
pay permit may be revoked only to the extent that revocation is
allowable under the Streamlined Sales and Use Tax Agreement. + }
SECTION 35. { + Except as otherwise provided by law or rule of
the Department of Revenue, a seller may not advertise, hold out
or state to the public or to any customer, directly or
indirectly, that the sales tax or use tax on tangible personal
property or services, in whole or in part:
(1) Will be assumed or absorbed by the seller;
(2) Will not be added to the sales price of the property or
services sold; or
(3) If added, will be refunded, in whole or in part. + }
SECTION 36. { + (1) As used in sections 36 to 44 of this 2013
Act, unless the context requires otherwise:
(a) 'Aircraft' means any powered contrivance used or designed
for navigation of or flight in the air, except a rocket or
missile.
(b)(A) 'Vehicle' means a vehicle or motor vehicle for which
registration or title is required under ORS 803.025 or 803.300 or
would be required if the vehicle were not exempt from
registration or title requirements under ORS 803.030 or 803.305.
(B) 'Vehicle' does not mean:
(i) A manufactured structure as defined in ORS 446.003.
(ii) A snowmobile as defined in ORS 801.490.
(iii) A school bus as defined in ORS 801.460.
(iv) An ambulance as defined in ORS 801.115, an emergency
vehicle as defined in ORS 801.260 or other fire apparatus or fire
engine.
(v) A bicycle as defined in ORS 801.150.
(vi) A farm tractor as defined in ORS 801.265, a farm trailer
as defined in ORS 801.270 or other implements of husbandry as
defined in ORS 801.310.
(vii) Fixed load vehicles as defined in ORS 801.285 that are
subject to ad valorem property taxation.
(viii) Golf carts as defined in ORS 801.295 and similar
vehicles described in ORS 803.030 (13).
(ix) Road rollers.
(x) Trolleys.
(xi) Well drilling machinery.
(xii) Wheelchairs.
(c) 'Vessel' means any boat, ship, barge, craft or floating
object designed for navigation in the water except:
(A) A seaplane;
(B) A watercraft specifically designed to operate on a
permanently fixed course, the movement of which is restricted to
or guided on the permanently fixed course by means of a
mechanical device on a fixed track or arm to which the watercraft
is attached or by which the watercraft is controlled, or by means
of a mechanical device attached to the watercraft itself;
(C) A watercraft of a type designed to be propelled solely by
oars or paddles;
(D) A watercraft of eight feet or less in length of a type
designed to be propelled by sail;
(E) A floating home as defined in ORS 830.700; or
(F) A boathouse as defined in ORS 830.700.
(2) A motor or other component part of a vessel, whether or not
detachable, is considered to be a part of the vessel when sold
with the vessel. + }
SECTION 37. { + A person making a retail sale of a vehicle,
vessel or aircraft is the seller of the vehicle, vessel or
aircraft for purposes of the Sales and Use Tax Law, regardless of
whether the person is a seller for purposes of any other
provision of the Sales and Use Tax Law, unless another person is
the seller pursuant to section 38 of this 2013 Act. + }
SECTION 38. { + (1) A person holding a certificate as a
vehicle dealer or a dismantler under ORS chapter 822 is the
seller of a vehicle when a retail sale of the vehicle is made
through the person and the person provides to the Department of
Transportation a notice of transfer with respect to the vehicle.
(2) A person that is a seller under this section shall register
pursuant to section 19 of this 2013 Act and remit tax to the
Department of Revenue with respect to sales described in
subsection (1) of this section in the same manner as a vehicle
dealer or dismantler making sales on the dealer's or dismantler's
own account.
(3) For purposes of this section, a sale does not include a
lease transaction. + }
SECTION 39. { + (1)(a) Gross receipts from sales of vehicles
required to be registered or titled by the Department of
Transportation are exempt from the sales tax if the seller is
other than a person certified as a vehicle dealer or a dismantler
under ORS chapter 822.
(b) The exemption under this subsection does not apply to:
(A) Rentals payable under a lease of tangible personal
property.
(B) Gross receipts from sales of boat trailers by persons in
the business of selling boats or boat trailers.
(2) Gross receipts from the sale of a vessel or aircraft are
exempt from the sales tax if the seller is other than a person
required to register pursuant to section 19 of this 2013 Act by
reason of the number, scope and character of the sales by the
person of vessels or aircraft. + }
SECTION 40. { + If a person is engaged in the business of
selling vehicles, vessels or aircraft, the person is not excused
from the requirements of section 19 of this 2013 Act, the
collection and payment of sales tax or any other provision of the
Sales and Use Tax Law by reason of the exemptions provided in
section 39 of this 2013 Act. + }
SECTION 41. { + Gross receipts from the sale, and the storage,
use or other consumption, in this state of a vehicle, vessel or
aircraft are exempt from the sales tax and the use tax if:
(1) The person selling the property is either by blood,
marriage or adoption the parent, grandparent, child or spouse of
the purchaser and the person selling is not engaged in the
business of selling the type of property for which the exemption
is claimed.
(2) The property is included in any transfer that is an
occasional sale as defined in section 9 (11)(b) of this 2013
Act. + }
SECTION 42. { + (1) Notwithstanding sections 120 and 121 of
this 2013 Act, except when the sale is by lease, the use taxes
imposed with respect to the storage, use or other consumption in
this state of vehicles, vessels and aircraft are due and payable
by the purchaser at the time the storage, use or other
consumption of the property first becomes taxable.
(2) The use taxes described in subsection (1) of this section
are payable when due to the Department of Revenue or, as
applicable:
(a) In the case of a vehicle required to be titled or
registered, to the Department of Transportation before a
certificate of title or registration may be issued to the
purchaser by the Department of Transportation.
(b) In the case of a vessel that is subject to certification of
title, or to registration if no certificate of title is to be
issued, by the State Marine Board pursuant to ORS 830.700 to
830.870, to the Department of Revenue before the vessel may be
certified or registered by the State Marine Board.
(c) In the case of aircraft subject to registration for the
first time to the purchaser by the Oregon Department of Aviation
pursuant to ORS 837.040 to 837.070, to the Department of Revenue
before it may be registered by the Oregon Department of Aviation.
(3)(a) If the purchaser of a vehicle, vessel or aircraft
described in subsection (2) of this section does not make
application for registration or certification to the Department
of Transportation, the Oregon Department of Aviation or the State
Marine Board, as applicable, within 30 days after the date of
purchase of the vehicle, vessel or aircraft, the purchaser is
liable for a penalty as specified in section 122 (1) of this 2013
Act without interest.
(b) If the purchaser does not make application for
certification or registration or does not pay the amount of use
tax due within 90 days after the date of purchase, or files a
return with the Department of Revenue that is not timely, the
purchaser is liable for the penalties and interest as provided in
section 122 of this 2013 Act, collectible by the Department of
Revenue or the Department of Transportation in the same manner
and subject to the same procedures as for other delinquent sales
and use taxes.
(c) The Department of Transportation shall collect delinquent
use taxes, penalties and interest as provided in this section and
section 44 of this 2013 Act with respect to any delinquent
application for certification of title or registration of a
vehicle.
(4) Application to the Department of Transportation for
certification of title or registration of a vehicle accompanied
by payment of the use tax by the purchaser relieves the purchaser
of the obligation to file a separate return with the Department
of Revenue under section 121 of this 2013 Act. + }
SECTION 43. { + There is a presumption that a transfer of a
vehicle to a lessee by a lessor was a sale for resale if the
lessee transfers title and registration to a third party within
10 days from the date the lessee acquired title from the lessor
at the expiration or termination of a lease. This presumption may
be rebutted by evidence that the sale was not for resale prior to
use. + }
SECTION 44. { + (1) Except when the sale is by lease, in the
collection of the use tax on vehicles for which a certificate of
title or registration is required, the Department of
Transportation shall act as collecting agent.
(2) The Department of Transportation shall collect the use tax,
and any penalty or interest due, at the time an applicant applies
for the registration of, or certification or transfer of title
to, the vehicle, unless:
(a) The applicant exhibits a seller's receipt showing that the
sales tax has been collected by the seller;
(b) The application is for the renewal of registration;
(c) The applicant presents an exemption certificate provided by
the Department of Revenue pursuant to section 119 of this 2013
Act; or
(d) The applicant presents satisfactory evidence showing that
the sales tax or the use tax has been paid on the vehicle in
question.
(3)(a) Every applicant for registration or issuance or transfer
of certificate of title who is subject to payment of the use tax
shall declare the value of the vehicle for which application is
made. The value of the vehicle is the purchase price.
(b) A person may not willfully misrepresent the value required
to be declared under this subsection.
(4)(a) The moneys collected by the Department of Transportation
under this section shall be deposited promptly in the suspense
account created under ORS 802.100 (1).
(b) As much of the moneys collected as is necessary to pay the
actual administrative expenses of the Department of
Transportation in collecting the use tax under this section is
continuously appropriated to the department.
(c) All moneys in excess of the administrative expenses
retained by the Department of Transportation pursuant to
paragraph (b) of this subsection shall be transferred monthly to
the Sales and Use Tax Fund established under section 142 of this
2013 Act.
(d) At least once each month the Department of Transportation
shall account to the Department of Revenue for all use tax moneys
collected and administrative expenses retained under this
section. The Department of Transportation shall turn over to the
Department of Revenue all reports, applications and other
information required by the Department of Revenue that have been
obtained in the collection and administration of the use tax on
vehicles.
(5) An applicant who has paid a use tax under this section may
apply to the Department of Revenue for a refund within the time
and in the manner provided under ORS 305.270 if the applicant has
reason to believe the use tax was not due and owing.
(6) The provisions of this section are in addition to any other
methods prescribed in the Sales and Use Tax Law for the
collection of the use tax. + }
{ +
EXEMPTIONS + }
SECTION 45. { + (1) Transactions that this state is prohibited
from taxing under the laws or Constitution of the United States
or under the Oregon Constitution, including but not limited to
gross receipts derived from contracts entered into before the
effective date of this 2013 Act, are exempt from the sales tax
and the use tax.
(2)(a) Gross receipts from the sale in this state of tangible
personal property and services to an Indian tribe or Indian
enterprise within an Indian reservation are exempt from the sales
tax.
(b) The storage, use or consumption of tangible personal
property in this state by an Indian tribe or Indian enterprise
within an Indian reservation is exempt from the use tax. + }
SECTION 46. { + (1) Gross receipts from the sale in this state
of water and services related to water are exempt from the sales
tax, and the storage, use or other consumption in this state of
water is exempt from the use tax.
(2) As used in this section, 'water' does not include ice. + }
SECTION 47. { + (1) Gross receipts from the sale in this state
of food and food ingredients and services related to food and
food ingredients are exempt from the sales tax, and the storage,
use or other consumption of food and food ingredients in this
state is exempt from the use tax.
(2) The exemptions under this section do not apply to prepared
food.
(3) As used in this section:
(a) 'Food and food ingredients':
(A) Means substances, whether in liquid, concentrated, solid,
frozen, dried or dehydrated form, that are sold for ingestion or
chewing by humans and are consumed for their taste or nutritional
value.
(B) Does not mean alcoholic beverages or tobacco.
(b) 'Prepared food':
(A) Means:
(i) Food sold in a heated state by the seller;
(ii) Two or more food ingredients mixed or combined by the
seller for sale as a single item; or
(iii) Food sold with eating utensils provided by the seller,
including plates, knives, forks, spoons, glasses, cups, napkins
or straws, but not a container or packaging used to transport the
food.
(B) Does not mean:
(i) Food that is only cut, repackaged or pasteurized by the
seller; or
(ii) Eggs, fish, meat, poultry and food containing these raw
ingredients requiring cooking by the consumer as recommended by
the federal Food and Drug Administration to prevent food-borne
illnesses. + }
SECTION 48. { + The sales tax does not apply to meals provided
to employees of a restaurant by the restaurant. + }
SECTION 49. { + Gross receipts from the sale in this state of
returnable containers for food and beverages are exempt from the
sales tax. + }
SECTION 50. { + (1) Gross receipts from the sale in this state
of clothing, clothing accessories and equipment, protective
equipment and sport or recreational equipment and services
related to clothing, clothing accessories and equipment,
protective equipment and sport or recreational equipment are
exempt from the sales tax, and the storage, use or other
consumption in this state of clothing, clothing accessories and
equipment, protective equipment and sport or recreational
equipment is exempt from the use tax.
(2) As used in this section:
(a) 'Clothing' means all human wearing apparel suitable for
general use.
(b) 'Clothing accessories and equipment':
(A) Means incidental items worn on the person in conjunction
with clothing or carried by the person in public.
(B) Does not mean electronic, computing or telecommunications
devices carried by the person in public.
(c) 'Protective equipment' means items for human wear that are
designed to protect the wearer against injury or disease or to
protect other persons or property against damage or injury but
that are not suitable for general use.
(d) 'Sport or recreational equipment' means items designed for
human use and worn in conjunction with athletic or recreational
activity that are not suitable for general use. + }
SECTION 51. { + (1) Notwithstanding ORS 471.725, 471.730 or
471.745 or any other provision of law to the contrary, the sales
tax and the use tax apply to the gross receipts from the sale, or
the storage, use or other consumption, in this state of alcoholic
beverages.
(2) As used in this section, 'alcoholic beverages' means
beverages that are suitable for human consumption and contain
one-half of one percent or more of alcohol by volume. + }
SECTION 52. { + Gross receipts from the sale in this state of
machinery and equipment used in manufacturing and services
related to machinery and equipment used in manufacturing are
exempt from the sales tax, and the storage, use or other
consumption in this state of machinery and equipment used in
manufacturing is exempt from the use tax. + }
SECTION 53. { + (1) Gross receipts from the sale in this state
of tangible personal property and services listed in subsection
(2) of this section are exempt from the sales tax, and the
storage, use or other consumption in this state of tangible
personal property listed in subsection (2) of this section is
exempt from the use tax.
(2) The tangible personal property and services referred to in
subsection (1) of this section are:
(a) Prescription and over-the-counter drugs.
(b) Dietary supplements.
(c) Oxygen.
(d) Human body parts, including blood and tissue.
(e) Nebulizers.
(f) Drug delivery systems.
(g) Ostomic equipment.
(h) Prosthetic devices.
(i) Mobility enhancing equipment.
(j) Kidney dialysis equipment.
(k) Durable medical equipment.
(L) Laundry services provided to a nonprofit health care
facility.
(m) Tangible personal property sold to a free hospital that is
reasonably necessary for the operation of the free hospital.
(n) Medical supplies sold to a blood bank, tissue bank, organ
procurement organization or cancer treatment facility.
(3) As used in this section:
(a) 'Drug' has the meaning given that term in ORS 475.005.
(b) 'Durable medical equipment' means equipment, including
repair of and replacement parts for the equipment, that:
(A) Can withstand repeated use;
(B) Is primarily and customarily used to serve a medical
purpose;
(C) Is generally not useful to a person in the absence of
illness or injury; and
(D) Is not worn in or on the body.
(c) 'Mobility enhancing equipment' means equipment, including
repair of and replacement parts for the equipment, that:
(A) Is primarily and customarily used to provide or increase
the ability to move from one place to another;
(B) Is appropriate for use in a home or a motor vehicle;
(C) Is not generally used by individuals with normal mobility;
and
(D) Does not include a motor vehicle or equipment on a motor
vehicle that is normally provided by the motor vehicle
manufacturer.
(d) 'Over-the-counter drug':
(A) Means a drug that is sold with a label that identifies the
product as a drug as required by 21 C.F.R. 201.66 and includes a
drug facts panel or a statement of the active ingredients
contained in the drug.
(B) Does not mean grooming or hygiene products.
(e) 'Prescription' has the meaning given that term in ORS
475.005.
(f) 'Prosthetic device' means a replacement, corrective or
supportive device, including repair and replacement parts for the
device, worn on or in the body that:
(A) Replaces a missing portion of the body;
(B) Prevents or corrects physical deformity or malfunction; or
(C) Supports a weak or deformed portion of the body. + }
SECTION 54. { + (1) Gross receipts from the sale of tangible
personal property and services related to the provision of
utilities in this state are exempt from the sales tax, and the
storage, use or other consumption of tangible personal property
related to the provision of utilities in this state is exempt
from the use tax.
(2) Gross receipts from the sale in this state of services
provided in pruning, trimming, repairing, removing and clearing
trees and brush near electric transmission or distribution lines
or equipment are exempt from the sales tax if the services are
performed by or at the direction of an electric utility. + }
SECTION 55. { + (1) Gross receipts from the sale in this state
of tangible personal property and services listed in subsection
(2) of this section are exempt from the sales tax, and the
storage, use or other consumption in this state of tangible
personal property listed in subsection (2) of this section is
exempt from the use tax.
(2) The tangible personal property and services referred to in
subsection (1) of this section are:
(a) Animals, animal products, feed, seed, seedlings, plants,
fertilizer, pesticides, herbicides, agents for enhanced
pollination, including insects, chemical sprays or washes used in
postharvest treatment of fruit for the prevention of scald,
fungus, mold or decay and spray materials sold to:
(A) Persons engaged in commercial agricultural, horticultural
or silvicultural activities; or
(B) Persons who participate in a federal conservation, wetlands
or wildlife habitat program administered by the United States
Department of Agriculture or the State Department of Fish and
Wildlife.
(b) Feed sold to a person for use in the commercial cultivation
of fish entirely within confined rearing areas on the person's
land or on land to which the person has a present right of
possession.
(c) Irrigation equipment if:
(A) The irrigation equipment was purchased in a sale subject to
the sales tax by a lessor for the purpose of irrigating land
controlled by the lessor;
(B) The irrigation equipment is attached to the land in whole
or in part; and
(C) The irrigation equipment is leased to a lessee as an
incidental part of the lease of the underlying land to the lessee
and is used solely on the leased land.
(d) Diesel fuel, biodiesel fuel or aircraft fuel or a fuel
blend if the component fuels of the blend would be exempt under
this paragraph, that is used for agricultural purposes by a
farmer who provides the seller with an exemption certificate in a
form and manner prescribed by the Department of Transportation.
(e) Pollen.
(f) Honey bees sold to a person required to register bee
colonies under ORS 602.090 who grows, raises or produces queen
honey bees, packaged honey bees, honey, pollen, bees wax,
propolis or other substances obtained from honey bees for sale at
wholesale.
(g) Livestock registered or eligible to be registered in a
breed association having jurisdiction over the registration of
livestock in the United States that is sold for breeding
purposes.
(h) Cattle and milk cows used on a farm.
(i) Semen for use in the artificial insemination of livestock.
(j) Livestock feed consumed by livestock at a public livestock
market.
(k) Animal pharmaceuticals approved by the United States
Department of Agriculture or by the United States Food and Drug
Administration sold to a farmer for the purpose of administering
the pharmaceutical to an animal that is raised by the farmer for
the purpose of producing for sale an agricultural product. The
exemption is available only when the buyer provides the seller
with an exemption certificate in a form and manner prescribed by
the Department of Revenue.
(L) Livestock nutrient management equipment, services provided
in installing, repairing, cleaning, altering or improving
livestock nutrient management equipment and livestock nutrient
management facilities, and tangible personal property that is
incorporated into livestock nutrient management facilities in the
course of repairing, cleaning, altering or improving the
facilities. The exemption is available only if the purchaser of
the property or services provides the seller with an exemption
certificate in a form and manner prescribed by the Department of
Revenue.
(m) Tangible personal property sold to a person for use in
operating an anaerobic digester used primarily to treat livestock
manure, services provided in installing, constructing, repairing,
cleaning, altering or improving an anaerobic digester and
tangible personal property that is incorporated into the
anaerobic digester. The exemption is available only if the
purchaser of the property or services provides the seller with an
exemption certificate in a form and manner prescribed by the
department.
(n) Poultry sold for use in the commercial production of
poultry or poultry products.
(o) Propane or natural gas sold to a farmer to be used
exclusively to heat structures in which chickens raised for
commercial production are housed. The exemption is available only
if the purchaser provides the seller with an exemption
certificate in a form and manner prescribed by the department.
(p) Bedding materials used to accumulate and facilitate the
removal of chicken manure from structures in which chickens
raised for commercial production are housed. The exemption is
available only if the purchaser provides the seller with an
exemption certificate in a form and manner prescribed by the
department.
(q) Horticultural services provided to a farmer.
(r) Tangible personal property used in the packing of fresh
perishable horticultural products for commercial sale.
(s) Tangible personal property and services purchased by a
person engaged in commercial Christmas tree production.
(t) Tangible personal property, including household goods, that
has been used in conducting farming activity if the seller is a
farmer and the sale is conducted on a farm. + }
SECTION 56. { + (1) Gross receipts from the sale in this state
of the following items are exempt from the sales tax:
(a) Equipment, machinery and implements, and replacement parts
for equipment, machinery and implements, purchased for exclusive
use in conducting commercial agricultural activities.
(b) Services provided in installing replacement parts described
in paragraph (a) of this subsection.
(2) If a single transaction involves services that are and are
not exempt under this section, the exemption under this section
is available for the exempt services only if the invoice itemizes
the services separately and the charges itemized for the exempt
services do not exceed the seller's customary charge for the
services.
(3) An exemption under this section is available only if the
purchaser:
(a)(A) Engages in business as a farmer and, in the immediately
preceding 12-month period, grew, raised or produced agricultural
products having an estimated value of at least $10,000; or
(B) Did not engage in farming in the immediately preceding
12-month period, has newly engaged in farming or returned to
farming in the current year, and expects to grow, raise or
produce agricultural products having an estimated value of at
least $10,000; and
(b) Provides the seller with an exemption certificate in a form
and manner prescribed by the Department of Revenue.
(4) If a person described in subsection (3)(a)(B) of this
section fails to grow, raise or produce agricultural products
with an estimated value of at least $10,000, the taxes that would
have been imposed are due and payable with interest.
(5) Beginning in 2015, and every year thereafter, the minimum
dollar amount of agricultural products specified in subsections
(3) and (4) of this section shall be increased or decreased in
proportion to the change in the cost of living for the previous
calendar year, based on changes in the Portland-Salem, OR-WA
Consumer Price Index for All Urban Consumers for All Items as
published by the Bureau of Labor Statistics of the United States
Department of Labor.
(6) Equipment, machinery and implements eligible for exemption
under this section do not include:
(a) Vehicles other than farm vehicles registered under ORS
805.300 or farm implements as defined in ORS 646A.300;
(b) Aircraft;
(c) Hand tools and hand-powered tools; and
(d) Property with a useful life of less than one year. + }
SECTION 57. { + (1) Gross receipts from the sale in this state
of the following items to wholesalers or third-party warehousers
who own or operate warehouses or grain elevators and retailers
who own or operate distribution centers are eligible for
remittance of the sales tax in an amount determined under
subsection (3) of this section:
(a) Material-handling equipment and racking equipment and
services provided in installing, repairing, cleaning, altering or
improving the equipment.
(b) Materials used and services provided in constructing a
warehouse or grain elevator.
(2) A person claiming a remittance under this section must
first pay the sales tax when due and include with the payment a
claim for remittance on a form prescribed by the Department of
Revenue.
(3)(a) For grain elevators with a capacity of at least
1,000,000 bushels but less than 2,000,000 bushels, the remittance
is equal to 50 percent of the amount of sales tax paid on
property and services described in subsection (1) of this
section.
(b) For warehouses of at least 200,000 square feet and grain
elevators with a capacity of at least 2,000,000 bushels, the
remittance is equal to 100 percent of the amount of sales tax
paid on property and services described in subsection (1)(b) of
this section and 50 percent of the amount of sales tax paid on
property and services described in subsection (1)(a) of this
section.
(4)(a) The department shall determine eligibility under this
section based on information provided by the purchaser and
through audit and other administrative records.
(b) The purchaser shall on a quarterly basis submit an
information sheet, in a form and manner required by the
department, specifying the amount of remittance claimed and the
purchases for which the remittance is claimed.
(c) The department shall make remittances under this section on
a quarterly basis.
(5) The lessor or owner of a warehouse or grain elevator is not
eligible for a remittance under this section unless the
underlying ownership of the warehouse or grain elevator and the
material-handling equipment and racking equipment vests
exclusively in the same person, or the lessor by written contract
agrees to pass the economic benefit of the remittance to the
lessee in the form of reduced rent payments.
(6) As used in this section:
(a) 'Distribution center' means a warehouse that is used
exclusively by a retailer solely for the storage and distribution
of finished goods to retail outlets of the retailer. '
Distribution center' does not include a warehouse at which retail
sales occur.
(b) 'Finished goods' means tangible personal property intended
for sale by a retailer or wholesaler. 'Finished goods ' does not
include agricultural products stored by wholesalers, third-party
warehouses or retailers, if the storage takes place on the land
of the person who produced the agricultural product, or logs,
minerals, petroleum, gas or other extracted products stored as
raw materials or in bulk.
(c) 'Material-handling equipment and racking equipment ' means
equipment in a warehouse or grain elevator that is primarily used
to handle, store, organize, convey, package or repackage finished
goods and includes tangible personal property with a useful life
of one year or more that is incorporated into the equipment,
including repair and replacement parts. ' Material-handling
equipment and racking equipment' does not include equipment in
offices, lunchrooms, restrooms or other similar areas within a
warehouse or grain elevator, or equipment used for nonwarehousing
purposes. + }
SECTION 58. { + (1) Gross receipts from the sale in this state
of the following items are exempt from the sales tax:
(a) Services provided in constructing, repairing, decorating or
improving structures used as farmworker housing; and
(b) Tangible personal property that, in the course of
constructing, repairing, decorating or improving structures used
as farmworker housing, is incorporated into the structures.
(2) The exemption under this section is available only:
(a) To farmworker housing that:
(A) Is provided to year-round farmworkers;
(B) Is used as farmworker housing for at least five consecutive
years from the date the housing is approved for human occupancy;
and
(C) Complies with all applicable state and local regulations;
and
(b) If the purchaser provides the seller with an exemption
certificate in a form and manner prescribed by the Department of
Revenue.
(3) If farmworker housing granted an exemption under this
section is used for farmworker housing for less than five
consecutive years after the date the housing is approved for
human occupancy, the amount of sales tax that would have been due
is immediately due and payable with interest computed from the
date the housing was approved for occupancy until the date of
payment.
(4) The exemption under this section does not apply to housing
built for the occupancy of an employer, family members of an
employer or persons with ownership interest in a farm
business. + }
SECTION 59. { + (1) Gross receipts from the sale in this state
of tobacco and services related to tobacco are exempt from the
sales tax, and the storage, use or other consumption in this
state of tobacco is exempt from the use tax.
(2) As used in this section, 'tobacco' means cigarettes as
defined in ORS 323.010 and tobacco products as defined in
323.500. + }
SECTION 60. { + (1) Gross receipts from the sale or
distribution in this state of motor vehicle fuel, fuel or
aircraft fuel and related services are exempt from the sales tax,
and the storage, use or other consumption in this state of motor
vehicle fuel, fuel or aircraft fuel is exempt from the use tax:
(a) If the sale, distribution, storage, use or other
consumption of the fuel in this state is:
(A) Subject to tax under ORS 319.010 to 319.430 or 319.510 to
319.880, and not subject to refund; or
(B) Exempt from the tax imposed under ORS 319.510 to 319.880 by
ORS 825.484 (2); or
(b) If the fuel is purchased:
(A) By a public entity or nonprofit corporation for the
purposes of providing public transportation;
(B) For use in a publicly owned or operated ferry; or
(C) For use in the operation of a vessel in commercial deep sea
fishing operations or commercial passenger fishing boat
operations by a person regularly engaged in such business.
(2)(a) For the purpose of establishing gross receipts upon
which the sales tax is computed, the Department of Transportation
shall use estimated average fuel sales prices.
(b) At the request of a refund claimant, the department may
adjust the sales tax upon presentation by the claimant of
information showing the exact amount paid for the fuel upon which
a refund is claimed.
(c) The department shall transfer the amount of the sales tax
refunds from the appropriate General Fund account from which
refunds are made under ORS chapter 319.
(d) The moneys transferred by the department under this
subsection shall be deposited promptly in the suspense account
created under ORS 802.100 (1).
(e) As much of the moneys collected as is necessary to pay the
actual administrative expenses of the department in collecting
the sales tax under this subsection and to pay refunds of the tax
is continuously appropriated to the department.
(f) All moneys in excess of the administrative expenses
retained by the department and refunds paid by the department
pursuant to this subsection shall be transferred monthly to the
State Highway Fund.
(g) At least once each month the department shall account to
the Department of Revenue for all sales tax moneys collected
under this subsection.
(3) The Department of Revenue, the Public Utility Commission
and the Department of Transportation shall adopt rules providing
that:
(a) Sales taxes collected on fuel exempt from the tax imposed
under ORS 319.510 to 319.880 by ORS 825.484 (2) may be offset
against taxes imposed under ORS chapter 825 in returns made under
that chapter. On the 15th day of each month, the Public Utility
Commission shall certify to the Department of Revenue and the
State Treasurer the amount offset, and the State Treasurer shall
cause that amount to be transferred from the Sales and Use Tax
Fund established under section 142 of this 2013 Act to the Motor
Carrier Account in the General Fund.
(b) Sales tax collected on fuel subject to tax under ORS
319.010 to 319.430 or 319.510 to 319.880, and not subject to
refund, may be offset against taxes imposed under ORS 319.010 to
319.430 or 319.510 to 319.880 in returns made under those
statutes. On the 15th day of each month, the Department of
Transportation shall certify to the Department of Revenue and the
State Treasurer the amount offset, and the State Treasurer shall
cause that amount to be transferred from the Sales and Use Tax
Fund to the State Highway Fund. + }
SECTION 61. { + (1) Gross receipts from the sale in this state
of the following items and services related to the following
items are exempt from the sales tax, and the storage, use or
other consumption in this state of the following items is exempt
from the use tax:
(a) Fuel oil, natural gas, liquefied petroleum gas, electricity
or geothermal resources when delivered to consumers through
mains, lines or pipes or by tank truck or for purposes of
residential heating and of exhaust steam, waste steam, heat or
resultant energy, produced in connection with cogeneration
technology.
(b) Coal.
(c) Firewood.
(d) Nuclear fuel.
(2) As used in this section:
(a) 'Cogeneration' means the sequential use of energy for the
production of electrical and useful thermal energy, whether the
sequence is thermal use followed by power production or the
reverse, provided:
(A) At least five percent of the cogeneration project's total
annual energy output is in the form of useful thermal energy; and
(B) If useful thermal energy production follows power
production, the useful annual power output plus one-half of the
useful annual thermal energy output equals not less than 42.5
percent of any natural gas or oil energy input.
(b) 'Nuclear fuel' means special nuclear material and source
material used for fueling or refueling nuclear reactors. + }
SECTION 62. { + Gross receipts from the sale in this state of
the following items are exempt from the sales tax:
(1) Tangible personal property purchased for the purpose of
consuming the property in producing ferrosilicon that is
subsequently used in producing magnesium for sale.
(2) Carbon, petroleum coke, coal tar, pitch or any similar
substance that becomes an ingredient or component of anodes or
cathodes used in producing aluminum for sale.
(3) Tangible personal property used at an aluminum smelter,
tangible personal property incorporated into the buildings or
other structures at an aluminum smelter and services provided
with respect to the buildings, structures or tangible personal
property incorporated into the buildings or structures.
(4)(a) Precious metal bullion, the value of which depends on
its contents and not upon its form.
(b) Monetized bullion or coins or other forms of money
manufactured from precious metals and formerly or currently used
as a medium of exchange under the laws of this state, the United
States or any foreign nation, but not coins or money sold to be
manufactured into jewelry or works of art.
(5) Wax and ceramic materials used to create molds consumed
during the process of creating ferrous and nonferrous investment
castings used in industrial applications, and services provided
in creating wax patterns and ceramic shells used as molds and
consumed during the process of creating ferrous and nonferrous
investment castings used in industrial applications. + }
SECTION 63. { + (1) Gross receipts from the sale in this state
of the following items purchased by a public research institution
for use primarily in research and development are exempt from the
sales tax:
(a) Machinery and equipment; and
(b) Services provided in installing, repairing, cleaning,
altering or improving the machinery and equipment.
(2) The exemption under this section may not be allowed unless
the purchaser provides the seller with an exemption certificate
in a form and manner prescribed by the Department of Revenue.
(3) As used in this section:
(a) 'Machinery and equipment' means:
(A) Fixtures, pieces of equipment, digital goods and support
facilities that are an integral and necessary part of a research
and development operation; and
(B) Tangible personal property that becomes an ingredient or
component of fixtures, equipment and support facilities,
including repair parts and replacement parts.
(b) 'Machinery and equipment' does not mean:
(A) Hand-powered tools;
(B) Property with a useful life of less than one year;
(C) Buildings; or
(D) Building fixtures that are not an integral and necessary
part of a research and development operation and that are
permanently affixed to and become a physical part of a building,
including utility systems for heating, ventilation, air
conditioning, communications, plumbing or electricity. + }
SECTION 64. { + Gross receipts from the sale in this state of
tangible personal property purchased for the purpose of providing
the property to consumers as part of a service provided by a
competitive telecommunications provider as defined in ORS 759.005
are exempt from the sales tax. + }
SECTION 65. { + Gross receipts from the sale in this state of
tangible personal property purchased to satisfy the purchaser's
obligations under an extended warranty are exempt from the sales
tax if the tangible personal property replaces or becomes an
ingredient or component of property covered by the extended
warranty without intervening use by the purchaser. + }
SECTION 66. { + Notwithstanding section 120 of this 2013 Act,
a person is not required to collect the sales tax if:
(1) The person's activities in this state, whether conducted
directly or through another person, are limited to:
(a) The storage, dissemination or display of advertising;
(b) The taking of orders; or
(c) The processing of payments; and
(2) The person's activities are conducted electronically via a
website on a server or other computer equipment located in this
state that is not owned or operated by the person making sales
into this state or by an affiliated person. + }
SECTION 67. { + Gross receipts from the sale in this state of
the following items are exempt from the sales tax:
(1) A digital code for one or more digital products if gross
receipts from the sale of the digital products to which the
digital code relates are exempt from the sales tax.
(2)(a) A digital good or digital automated service, including a
digital good or digital automated service acquired through the
use of a digital code, that is made available free of charge for
the use or enjoyment of the general public.
(b) The exemption provided under this subsection may not be
allowed unless:
(A) The purchaser has the legal right to broadcast,
rebroadcast, transmit, retransmit, license, relicense,
distribute, redistribute or exhibit the product, in whole or in
part, to the general public; and
(B) The purchaser provides the seller with an exemption
certificate in a form and manner prescribed by the Department of
Revenue.
(c) For purposes of this subsection, 'general public' means all
persons and is not limited or restricted to a particular class of
persons, except that 'general public' may mean:
(A) A class of persons that is defined as all persons residing
or owning property within this or a political subdivision of this
state; and
(B) With respect to libraries, authorized library patrons.
(3)(a) Digital goods, and services provided with respect to
digital goods, if the digital goods and related services are
purchased solely for business purposes, and digital code if all
the digital goods to be obtained by use of the digital code are
used solely for business purposes.
(b) The exemption under this subsection is allowable only if
the purchaser provides the seller with an exemption certificate
in a form and manner prescribed by the Department of Revenue.
(4)(a) Digital goods, digital codes, digital automated
services, prewritten computer software and related services if
the purchaser provides the seller with an exemption certificate
claiming multiple points of use in a form and containing such
information as required by the department.
(b) A purchaser may be allowed to use an exemption certificate
claiming multiple points of use only if the purchaser is a
business and the digital goods, digital codes, digital automated
services, prewritten computer software or related services
purchased will be concurrently available for use within and
outside this state. + }
SECTION 68. { + (1) Gross receipts from the sale in this state
of the following items are exempt from the sales tax:
(a) Computer equipment, including repair parts and replacement
parts for the computer equipment, if the computer equipment is
used primarily in the printing or publishing of any printed
material.
(b) Services provided in installing, repairing, cleaning,
altering or improving the computer equipment.
(2) The exemption under this section may not be allowed unless
the purchaser provides the seller with an exemption certificate
in a form and manner prescribed by the Department of Revenue. + }
SECTION 69. { + (1) Gross receipts from the sale in this state
of the following items are exempt from the sales tax:
(a) Computer hardware, computer peripherals or software used
primarily in the development, design and engineering of aerospace
products or in providing aerospace services; and
(b) Services provided in installing property described in
paragraph (a) of this subsection.
(2) The exemption under this section may be allowed only if the
purchaser provides the seller with an exemption certificate in a
form and manner prescribed by the Department of Revenue.
(3) As used in this section:
(a) 'Aerospace products' means:
(A) Commercial airplanes and components of commercial
airplanes;
(B) Machinery and equipment that is designed and used primarily
for the maintenance, repair, overhaul or refurbishing of
aerospace products by 14 C.F.R. part 145 certificated repair
stations; and
(C) Tooling specifically designed for use in manufacturing
aerospace products.
(b) 'Aerospace services' means the maintenance, repair,
overhaul or refurbishing of aerospace products, but only if the
services are performed by a 14 C.F.R. part 145 certificated
repair station.
(c) 'Computer peripherals' includes, but is not limited to,
keyboards, monitors, mouse devices and other accessories that
operate outside of the computer, other than cables, conduit,
wiring and similar property. + }
SECTION 70. { + Gross receipts from the sale in this state of
custom software and the customization of prewritten computer
software are exempt from the sales tax. + }
SECTION 71. { + Gross receipts from the sale in this state of
local telephone service, coin-operated telephone service and
mobile telecommunications services, including toll service, to a
customer whose place of primary use is outside this state are
exempt from the sales tax. + }
SECTION 72. { + Delivery charges made for the delivery of
direct mail in this state are exempt from the sales tax if the
charges are separately stated on an invoice or similar billing
document given to the purchaser. + }
SECTION 73. { + (1) Gross receipts from the rental in this
state of production equipment, or the sale in this state of
production services, to a motion picture or video production
business are exempt from the sales tax.
(2) The exemption under this section may not be allowed unless
the purchaser provides the seller with an exemption certificate
in a form and manner prescribed by the Department of Revenue.
(3) As used in this section:
(a) 'Motion picture or video production business' means a
person engaged in the production of motion pictures or videos for
exhibition or sale or for broadcast by a person other than the
person producing the motion picture or video.
(b) 'Production equipment' means the following when used in
motion picture or video production or postproduction:
(A) Grip and lighting equipment, cameras, camera mounts
including tripods, jib arms, steadicams and other camera mounts;
(B) Cranes, dollies, generators, helicopter mounts, helicopters
rented for motion picture or video production, walkie talkies,
vans, trucks and other vehicles specifically equipped for motion
picture or video production or used solely for production
activities; and
(C) Wardrobe and makeup trailers, special effects and stunt
equipment, video assists, videotape recorders, cables and
connectors, teleprompters, sound recording equipment and editing
equipment.
(c) 'Production services' means motion picture and video
processing, printing, editing, duplicating, animation, graphics,
special effects, negative cutting, conversions to other formats
or media, stock footage, sound mixing, rerecording, sound
sweetening, sound looping, sound effects and automatic dialog
replacement. + }
SECTION 74. { + (1) Gross receipts from the sale in this state
of tangible personal property incorporated into a prototype for
aircraft parts, auxiliary equipment or modifications, or tangible
personal property that is incorporated into a prototype but later
destroyed in the testing or development of the prototype, are
exempt from the sales tax.
(2) The exemption under this section may not be allowed to a
person whose gross business income, plus the value of products
manufactured by the person, during the immediately preceding
calendar year exceeds $20,000,000.
(3) The value of an exemption allowed under this section may
not exceed $100,000 for any person during any calendar year.
(4) Sellers shall collect the sales tax on sales described in
subsection (1) of this section and the purchaser may apply for a
refund directly from the Department of Revenue. + }
SECTION 75. { + (1) Gross receipts from the sale in this state
of the following items are exempt from the sales tax:
(a) Services provided in constructing new buildings and
installing fixtures to be used exclusively for manufacturing
superefficient airplanes, including buildings used for the
storage of raw materials and finished product; and
(b) Tangible personal property incorporated during the course
of construction into buildings to be used exclusively for
manufacturing superefficient airplanes.
(2) The exemption under this section may not be allowed unless
the purchaser provides the seller with an exemption certificate
in a form and manner prescribed by the Department of Revenue. + }
SECTION 76. { + The storage, use or other consumption in this
state by a bailee of tangible personal property that is entirely
consumed in the course of research, development, experimental or
testing activities is not subject to the use tax, provided the
acquisition of the property by the bailor was not subject to the
sales taxes. + }
SECTION 77. { + Gross receipts from the sale in this state of
form lumber to a person engaged in constructing, repairing,
decorating or improving new or existing buildings or other
structures under, on or above real property of or for consumers
are exempt from the sales tax if the lumber is used first by the
purchaser for molding concrete in a single contract, project or
job and is afterwards incorporated into the product of the same
contract, project or job as a part of the building or other
structure. + }
SECTION 78. { + The storage, use or other consumption in this
state of fuel by the person who extracted or manufactured the
fuel is exempt from the use tax if the fuel is used in the
operation of the plant in which the fuel was extracted or
manufactured. + }
SECTION 79. { + (1) Gross receipts from the sale in this state
of the following items are exempt from the sales tax:
(a) Tangible personal property purchased by a person engaged in
the business of generating, producing or distributing electrical
energy for the purpose of constructing or installing air
pollution control facilities at a thermal electric generation
facility placed in operation before July 1, 1975; and
(b) Services provided in constructing or installing air
pollution control facilities described in paragraph (a) of this
subsection.
(2) The exemption under subsection (1) of this section may not
be allowed unless the purchaser provides the seller with an
exemption certificate in a form and containing such information
as the Department of Revenue requires.
(3) Gross receipts from the sale in this state of coal used to
generate electric power at a coal-fired thermal electric
generation facility placed in operation before July 1, 1975, and
operated by a business are exempt from the sales tax if:
(a) The owners make application to the department for the
exemption;
(b) The owners install air pollution control facilities to meet
applicable regulatory requirements established under state and
federal law; and
(c) The emissions of the generation facility meet or exceed
standards established by the Department of Environmental Quality
during the immediately preceding 12-month period.
(4) As used in this section, 'air pollution control facilities'
means any treatment works, control devices and disposal systems,
machinery, equipment, structures, property, property improvements
and accessories, that are installed or acquired for the primary
purpose of reducing, controlling or disposing of industrial waste
that, if released to the outdoor atmosphere, could cause air
pollution, or that are required to meet regulatory requirements
applicable to their construction, installation or operation. + }
SECTION 80. { + (1) Gross receipts from the sale in this state
of gun safes are exempt from the sales tax.
(2) As used in this section, 'gun safe' means an enclosure
specifically designed or modified for the purpose of storing a
firearm and equipped with a padlock, key lock, combination lock
or similar locking device that, when locked, prevents
unauthorized use of the firearm. + }
SECTION 81. { + (1) The following uses of a vessel in this
state by the manufacturer of the vessel are exempt from the use
tax:
(a) Activities to test, set up, repair, remodel, evaluate or
otherwise make a vessel seaworthy, including performance,
endurance and sink testing, if the vessel is to be held for sale.
(b) Training activities of the manufacturer's employees, agents
or subcontractors involved in the development and manufacturing
of the manufacturer's vessels, if the vessel is to be held for
sale.
(c) Activities to promote the sale of the manufacturer's
vessels, including photography and video sessions to be used in
promotional materials.
(d) Transportation directly to and from vessel promotional
events for the express purpose of displaying a manufacturer's
vessels.
(e) The loan or donation of a vessel to the state, a political
subdivision or a civic, religious, nonprofit or educational
organization for continuous periods of use not exceeding 72
hours, or longer if approved by the Department of Revenue.
(f) Transporting, displaying or demonstrating a vessel at a
wholesale or retail vessel show.
(g) Delivery of a vessel to a buyer, vessel manufacturer,
registered vessel dealer or any other person involved in the
manufacturing or sale of that vessel for the purpose of the
manufacturing or sale of that vessel.
(h) Displaying, showing and operating a vessel for sale to a
prospective buyer, including short-term testing, operating and
examining by a prospective buyer.
(2) The exemption under subsection (1) of this section applies
to any trailer or other apparatus used to transport, display,
show or operate a vessel, if the trailer or other apparatus is
held for sale. + }
SECTION 82. { + (1) Gross receipts from the sale in this state
of a vessel 30 feet or longer are exempt from the sales tax for
the period of a valid use permit issued under this section to a
purchaser who is an individual nonresident of this state.
(2)(a) An individual claiming an exemption under this section
must display proof of nonresident status at the time of purchase.
(b) Acceptable proof of nonresident status includes one piece
of identification such as a valid driver license from the
jurisdiction in which the residency is claimed or a valid
identification card that has a photograph of the holder and is
issued by the out-of-state jurisdiction. The identification must
show the holder's residential address and have as one of its
legal purposes the establishment of residency in the out-of-state
jurisdiction.
(3) Notwithstanding subsection (1) of this section, a seller
may choose to collect the sales tax on vessels sold to
nonresident individuals and remit the amount of sales tax
collected to the state as otherwise provided by law. If the
seller chooses to make a sale to a nonresident without collecting
the sales tax, the seller must examine the proof of nonresidence,
determine whether the proof is acceptable under subsection (2)(b)
of this section and maintain records for each nontaxable sale
that shows the type of proof accepted, including any
identification numbers where appropriate, and the expiration
date, if any.
(4)(a) The seller of a vessel shall issue a use permit to a
buyer if the seller is satisfied that the buyer is a nonresident
individual. The use permit must be in a form and manner required
by the Department of Revenue and must include an affidavit,
signed by the purchaser, declaring that the vessel will be used
in a manner consistent with this section.
(b) The fee for issuance of a use permit is $500 for vessels 50
feet in length or less and $800 for vessels greater than 50 feet
in length.
(c) Funds collected under this section must be reported on the
seller's sales tax return and be remitted to the department as
required under section 120 of this 2013 Act.
(5)(a) A use permit issued under this section must be displayed
on the vessel and is valid for 12 consecutive months from the
date of issuance. A use permit is not renewable.
(b) A vessel dealer must maintain a copy of the use permit for
the dealer's records. Vessel dealers must provide copies of use
permits issued by the dealer under this section to the department
on a quarterly basis.
(6) A nonresident individual who claims an exemption under this
section and who uses a vessel in this state after the use permit
for the vessel has expired is liable for the sales tax computed
on the original purchase price plus interest computed from the
date of purchase until the tax is paid.
(7) Any vessel dealer who makes sales without collecting the
sales tax to an individual who does not hold valid identification
establishing out-of-state residency, and any dealer who fails to
maintain records of sales to nonresidents as provided in this
section, is personally liable for the amount of sales tax
due. + }
SECTION 83. { + (1) Gross receipts from the rental of a
vehicle or trailer to a nonresident of this state are exempt from
the sales tax if the vehicle or trailer is required to be
registered and titled in another state, the vehicle or trailer is
used exclusively for transporting persons or property across the
boundaries of this state and any intrastate operations are
incidental to the interstate operations.
(2)(a) For purposes of this section, 'nonresident of this
state' includes a person who has one or more places of business
in this state and in one or more other states.
(b) The exemption under this section may be allowed to a
nonresident described in paragraph (a) of this subsection only
for gross receipts from vehicles and trailers that are most
frequently dispatched, garaged, serviced, maintained and operated
from a place of business in another state. + }
SECTION 84. { + (1) The storage, use or other consumption in
this state of the following items is exempt from the use tax:
(a) An aircraft used primarily in interstate or foreign
commerce.
(b) An aircraft used primarily in intrastate air transportation
by a commuter air carrier.
(c) A locomotive, railroad car or vessel used primarily in
conducting interstate or foreign commerce by transporting
property and persons for hire.
(d) A vessel used primarily in commercial deep sea fishing
operations outside the territorial waters of this state.
(e) Tangible personal property that becomes a component part of
an aircraft, locomotive, railroad car or vessel described in this
subsection in the course of repairing, cleaning, altering or
improving the aircraft, locomotive, railroad car or vessel.
(2)(a) Use of a vehicle in this state for a period not
exceeding 15 consecutive days by a nonresident of this state is
exempt from the use tax if the vehicle is required to be
registered and titled in another state, the vehicle is used
exclusively for transporting persons or property across the
boundaries of this state and any intrastate operations are
incidental to the interstate operations.
(b) For purposes of this subsection, 'nonresident of this
state' includes a person who has one or more places of business
in this state and in one or more other states.
(c) The exemption under this section may be allowed to a
nonresident described in paragraph (b) of this subsection only
for vehicles that are most frequently dispatched, garaged,
serviced, maintained and operated from a place of business in
another state.
(d) The Department of Transportation may adopt rules
authorizing a second 15-day period of exemption consecutive to
the first 15-day period.
(3) The use of the following items by a holder of a carrier
permit issued by the Federal Motor Carrier Safety Administration
of the United States Department of Transportation or a successor
agency is exempt from the use tax:
(a) A vehicle used in substantial part in the normal and
ordinary course of the user's business for transporting for hire
persons or property across the boundaries of this state; and
(b) Tangible personal property that is incorporated into a
vehicle described in paragraph (a) of this subsection in the
course of repairing, cleaning, altering or improving the vehicle.
(4) Gross receipts from providing services described in
subsections (1)(e) and (3)(b) of this section in this state are
exempt from the sales tax. + }
SECTION 85. { + (1) The storage, use or other consumption in
this state by a resident of this state of motor vehicles and
trailers acquired and used while the resident is a member of the
armed services and is stationed outside this state pursuant to
military orders is exempt from the use tax.
(2) The exemption under this section does not apply to members
of the armed services called to active duty for training purposes
for periods of less than six months or to the use of motor
vehicles or trailers acquired less than 30 days prior to the
discharge or release from active duty of the resident from the
armed services. + }
SECTION 86. { + (1) Gross receipts from the sale in this state
of passenger motor vehicles are exempt from the sales tax if the
vehicles are used exclusively for commuter ride sharing or ride
sharing for persons with special transportation needs, in
compliance with the provisions of this section, for 36
consecutive months beginning from the date of purchase.
(2) A vehicle is eligible for the exemption under this section
only if the vehicle seats at least five passengers, including the
driver, and is:
(a) Operated pursuant to a car pool or van pool program
established by the Oregon Department of Administrative Services
under ORS 276.598;
(b) Used by a major employer as an element of a commute trip
reduction program operated by the employer for employees of the
employer; or
(c) Owned and operated by individual employees and is
registered with:
(A) A car pool or van pool program established by the Oregon
Department of Administrative Services; or
(B) The employer of at least one of the employees as part of
the employer's commute trip reduction program.
(3) The exemption under this section may not be allowed unless
the person claiming the exemption presents certification in a
form and manner prescribed by the Department of Transportation
that all applicable requirements have been met.
(4) If the vehicle ceases to be used exclusively for commuter
ride sharing or ride sharing for persons with special
transportation needs before 36 months have elapsed from the date
of purchase, the sales tax is due and payable immediately with
interest computed from the date of purchase until the date of
payment. + }
SECTION 87. { + The value of returnable products such as
batteries, starters, brakes and other automotive property with
returnable value added for the purpose of recycling or
remanufacturing is exempt from the sales tax. + }
SECTION 88. { + (1) Gross receipts from the sale in this state
of the following items are exempt from the sales tax:
(a) Services provided in constructing new buildings or new
parts of buildings used exclusively for the manufacturing of
semiconductor materials, including buildings and parts of
buildings used for the storage of raw materials and finished
product;
(b) Tangible personal property that is incorporated into the
buildings in the course of the construction; and
(c) Services provided in installing, in the course of
construction, building fixtures.
(2) The exemption under this section is available only if the
purchaser provides the seller with an exemption certificate in a
form and manner prescribed by the Department of Revenue.
(3) To be eligible for the exemption under this section, a
manufacturer or processor for hire of semiconductor materials
must meet the following requirements for an eight-year period,
beginning on the date the new building commences commercial
production:
(a) At least 75 percent of full employment must be maintained
at the new building for which the exemption is claimed.
(b) Before commencing commercial production at a new facility,
the manufacturer or processor for hire must meet with the Oregon
Business Development Department to review projected employment
levels in the new buildings. The department, using information
provided by the manufacturer or processor for hire, must make a
determination of the number of positions that would be filled at
full employment. This number must be used throughout the
eight-year period to determine whether any tax is to be repaid.
(c) If a production building in existence on the effective date
of this 2013 Act will be phased out of operation while employment
at the new building is increased, the manufacturer or processor
for hire must maintain 75 percent of full employment at the
manufacturing site overall.
(4) If the employment requirement is not met for any one
calendar year, one-eighth of the exempt sales taxes will be due
and payable by April 1 of the following year. The Department of
Revenue shall assess interest, but not penalties, from the date
the tax would have been imposed until the date the tax is
paid. + }
SECTION 89. { + (1) Gross receipts from the sale in this state
of gases and chemicals described in subsection (2) of this
section that are used by a manufacturer or processor for hire in
the production or manufacture of semiconductor materials are
exempt from the sales tax:
(2) The exemption under this section is limited to gases and
chemicals:
(a) Used in the production process to grow, deposit or grow
permanent or sacrificial layers on, etch, remove material from,
anneal, immerse or clean the product;
(b) Brought into direct contact with the product during the
production process for any other purpose; or
(c) Used to clean the chambers and other equipment in which the
processing takes place.
(3) A manufacturer or processor for hire claiming the exemption
under this section must file a complete annual report with the
Department of Revenue. + }
SECTION 90. { + (1) Gross receipts from the sale, lease or
rental in this state of a manufactured home or a floating home
and services related to a manufactured home or a floating home
are exempt from the sales tax, and the storage, use or other
consumption in this state of a manufactured structure or a
floating home is exempt from the use tax. + }
{ + (2) As used in this section:
(a) 'Floating home' has the meaning given that term in ORS
830.700.
(b) 'Manufactured structure' has the meaning given that term in
ORS 446.561. + }
SECTION 91. { + Gross receipts from the sale, or rental
pursuant to an agreement for a period greater than 30 days, of
previously owned trailers used for camping, mobile homes and
floating homes are exempt from the sales tax. + }
SECTION 92. { + (1) Gross receipts from the sale in this state
of any tangible personal property and services to the following
entities are exempt from the sales tax and the use tax:
(a) The United States and its unincorporated agencies and
instrumentalities.
(b) Any incorporated agency or instrumentality of the United
States wholly owned by the United States or by a corporation
wholly owned by the United States.
(c) The American Red Cross and its chapters and branches.
(2) The exemption provided under this section does not apply
to:
(a) Rentals payable under a lease of tangible personal
property.
(b) A sale of tangible personal property to a contractor that
purchases the property as the agent of the United States or for
the contractor's own account and subsequent resale to the United
States for use in the performance of a contract with the United
States for the construction of improvements on or to real
property in this state. + }
SECTION 93. { + Gross receipts from the sale in this state of
the following items are exempt from the sales tax:
(1) Services provided in building, repairing or improving any
street, place, road, highway, easement, right-of-way, public mass
transportation terminal or parking facility, bridge, tunnel or
trestle owned by a municipal corporation or political subdivision
of the state or by the United States that is or will be used
primarily for foot or vehicular traffic including mass
transportation vehicles of any kind.
(2)(a) Services provided in constructing, repairing, decorating
or improving buildings or other structures under, upon or above
real property of the United States, an instrumentality of the
United States or a housing authority created under the laws of
this state.
(b) Tangible personal property installed in or attached to
buildings or other structures described in paragraph (a) of this
subsection, regardless of whether the property is incorporated
into the buildings or other structures.
(3) Services provided in clearing land or moving earth of or
for the United States, an instrumentality of the United States or
a housing authority created under the laws of this state.
(4) Services provided in cleaning up for the United States or
an instrumentality of the United States radioactive waste or
by-products of weapons production or nuclear research and
development.
(5) Services provided or tangible personal property sold
pursuant to an agreement entered into between agencies or
political subdivisions of this state to provide maintenance
services for bus, rail or rail fixed guideway equipment.
(6) Services provided in mining, sorting, crushing, screening,
washing, hauling or stockpiling sand, gravel or rock taken from a
pit or quarry owned by or leased to a county or a city if the
sand, gravel or rock is:
(a) Placed by the county or city on a street, road or highway
of the county or city; or
(b) Sold by the county or city to a county or a city at actual
cost for placement on a publicly owned street, road or highway.
(7) Services provided in compacting, redistributing or removing
snow on state-owned or privately owned trails for the state or a
nonprofit corporation.
(8) Tangible personal property, including digital goods and
codes, transferred in a sale of the entire operating property of
a publicly or privately owned public utility, or of a complete
operating integral section of a publicly or privately owned
public utility, to the state or a political subdivision for use
in conducting any public service.
(9) Tangible personal property used and services provided under
a contract with the state or a political subdivision for
watershed protection or flood prevention. This exemption is
limited to the amount of the gross receipts that are reimbursed
by the United States government according to the provisions of
the Watershed Protection and Flood Prevention Act, 16 U.S.C. 1001
et seq.
(10) Tangible personal property sold by one political
subdivision to another political subdivision directly or
indirectly arising out of the annexation or incorporation of any
part of the territory of one political subdivision by another.
(11)(a) Ferry vessels purchased by the state or a political
subdivision for use in transporting pedestrians, vehicles and
goods within or outside the territorial waters of the state;
(b) Tangible personal property that is incorporated into a
ferry vessel described in paragraph (a) of this subsection; and
(c) Services provided in constructing or improving a ferry
vessel described in paragraph (a) of this subsection. + }
SECTION 94. { + Gross receipts from the sale in this state of
public records that are copied or transferred electronically by
state agencies and local governments under a request for the
record are exempt from the sales tax. A request for a record
includes a request for a document that is available only to
certain persons allowed access to the document by law. + }
SECTION 95. { + Gross receipts from the sale in this state of
the following items are exempt from the sales tax:
(1) Amusement or recreation services provided by a nonprofit
youth organization to members of the organization.
(2) Amusement or recreation services:
(a) Donated to a nonprofit corporation, the state or a local
government; or
(b) Used by a person to whom the property is donated by a
nonprofit corporation, the state or a local government in
furtherance of the purpose for which the services were originally
donated.
(3) Physical fitness classes provided by a local government.
(4) Tangible personal property sold for fundraising purposes by
a nonprofit corporation or a library.
(5) Subscriptions to magazines or periodicals, including
magazines and periodicals delivered electronically, for the
purposes of fundraising by an educational institution or a
nonprofit corporation engaged in activities primarily for the
benefit of persons 19 years of age and younger.
(6) Tangible personal property purchased by an artistic or
cultural organization for the purpose of exhibition or
presentation to the general public of the property if the
property is an object:
(a) Of art;
(b) Of cultural value; and
(c) Other than a tool, to be used in the creation of a work of
art; or
(d) To be used in displaying objects of art or presenting
artistic or cultural exhibitions or performances.
(7) If the sale is made by a nonprofit corporation at a camp or
conference center:
(a) Lodging, conference and meeting rooms, camping facilities,
parking and similar licenses to use real property;
(b) Food and meals; and
(c) Books, tapes and other products, including books and other
products that are transferred electronically, that are available
exclusively to the participants at the camp or conference
center. + }
SECTION 96. { + Gross receipts from the sale in this state of
the following items are exempt from the sales tax:
(1) Tangible personal property used in constructing alternative
housing exclusively for runaway, homeless and at-risk youth and
related services, if the housing is a facility licensed by an
agency of state or local government.
(2) Tangible personal property used in providing emergency
shelter and related services for homeless persons for a period of
less than 30 consecutive days pursuant to a program administered
by a county, city or other political subdivision or an
organization providing emergency shelter and attendant
services. + }
SECTION 97. { + The storage, use or other consumption in this
state of the following tangible personal property is exempt from
the use tax:
(1) Tangible personal property:
(a) Donated to a nonprofit corporation, the state or a local
government; or
(b) Used by a person to whom the property is donated or bailed
by a nonprofit corporation, the state or a local government in
furtherance of the purpose for which the property was originally
donated.
(2) Tangible personal property donated without intervening use
to a nonprofit corporation or incorporated without intervening
use into real or personal property of or for a nonprofit
corporation in the course of installing, repairing, cleaning,
altering, imprinting, improving, constructing or decorating the
real or personal property for no charge. + }
SECTION 98. { + The storage, use or other consumption in this
state of tangible personal property, including a digital good,
digital code, digital automated service or an extended warranty,
acquired by a credit union organized and operating under the laws
of this state from a federal credit union, foreign credit union
or out-of-state credit union as a result of a merger or
conversion is exempt from the use tax. + }
SECTION 99. { + Gross receipts from the sale in this state of
the following items are exempt from the sales tax:
(1) Printed newspapers, including supplements, that are issued
regularly at stated intervals at least twice a month and printed
on newsprint in tabloid or broadsheet format folded loosely
together without stapling, glue or binding of any kind.
(2) Newspapers transferred electronically, provided the
electronic version of a printed newspaper shares content with the
printed newspaper and is prominently identified by the same name
as the printed newspaper or otherwise conspicuously indicates
that it is a complement to the printed newspaper. + }
SECTION 100. { + The storage, use or other consumption in this
state by a public school, college or university or a private
nonprofit educational institution of computers, computer
components, computer accessories, computer software, digital
goods or digital codes that are irrevocably donated to the public
school, college or university or the private nonprofit
educational institution is exempt from the use tax. + }
SECTION 101. { + Gross receipts from the sale of motorcycles
for use in a motorcycle rider education program created under ORS
802.320 are exempt from the sales tax. + }
SECTION 102. { + The use in this state of a motor vehicle
equipped with dual controls that is loaned to and used
exclusively for purposes of driver training by a public
educational institution or a commercial driver training school
with a valid certificate issued under ORS 822.515 is exempt from
the use tax. + }
SECTION 103. { + Gross receipts from lease amounts paid by a
seller-lessee to a lessor under a sale-leaseback agreement with
respect to tangible personal property used by the seller-lessee,
or from the purchase amount paid by the seller-lessee pursuant to
an option to purchase at the end of the lease term, are exempt
from the sales tax, if the seller-lessee:
(1) Is a mass transit district, transportation district or
metropolitan service district; and
(2) Paid any sales tax or use tax otherwise due at the time the
property was acquired. + }
SECTION 104. { + (1) If a cargo container is purchased for use
outside this state and is delivered by an in-state manufacturer
to the purchaser in this state, and the purchaser moves the cargo
container to any point outside this state within 30 days after
the date of delivery, gross receipts from the sale in this state
of the cargo container and services related to the cargo
container are exempt from the sales tax, and the storage, use or
other consumption in this state of the cargo container is exempt
from the use tax, provided that the purchaser furnishes to the
manufacturer the purchaser's affidavits attesting that:
(a) The purchaser purchased the cargo container at a specified
location for use exclusively outside this state or exclusively in
interstate commerce; and
(b) The cargo container has been moved to a point outside this
state within 30 days of the date of the delivery of the cargo
container to the purchaser.
(2) As used in this section, 'cargo container' means a
receptacle that:
(a) Is of a permanent character and accordingly strong enough
to be suitable for repeated use;
(b) Is specially designed to facilitate the carriage of goods,
by one or more modes of transport, one of which shall be by
vessel, without intermediate reloading;
(c) Is fitted with devices permitting its ready handling,
particularly the transfer from one mode of transport to another;
(d) Is designed to be easy to fill and empty; and
(e) Has a displacement of 1,000 cubic feet or more. + }
SECTION 105. { + (1) Gross receipts from the sale in this
state of tangible personal property and related services to a
common carrier are exempt from the sales tax if the property is
shipped by the seller via the purchasing carrier under a bill of
lading, whether the freight is paid in advance or the shipment is
made freight charges collect, to a point outside this state and
the property is actually transported to the out-of-state
destination for use by the carrier in the conduct of its business
as a common carrier.
(2)(a) Gross receipts from the sale of tangible personal
property, other than aircraft fuel and petroleum products, and
related services are exempt from the sales tax if the property is
purchased by a foreign air carrier and transported by the foreign
air carrier to a foreign destination for use by the air carrier
in the conduct of its business as a common carrier by air of
persons or property.
(b) To qualify for the exemption under this subsection, the
foreign air carrier must timely furnish to the seller a
certificate in writing that the property will be transported and
used in the manner described in this subsection. Such certificate
must be substantially in the form prescribed by the Department of
Revenue. Acceptance in good faith of such a certificate shall
relieve the seller from liability for the sales tax. The foreign
air carrier shall maintain records in this state, such as a copy
of a bill of lading, an air waybill or cargo manifest,
documenting its transportation of the tangible personal property
to a foreign destination.
(c) Any use of the property by the purchasing foreign air
carrier, other than use incident to delivery of the property to
the foreign air carrier and the transportation of the property by
the carrier to a foreign destination and subsequent use in the
conduct of its business as a common carrier, or a failure of the
foreign air carrier to document its transporting the property to
a foreign destination, shall subject the carrier to liability for
payment of sales tax as if it were a retailer making a retail
sale of the property at the time of such use or failure, and the
cost of the property to it shall be deemed to be the gross
receipts from such retail sale.
(3) As used in this section:
(a) With respect to water transportation, 'common carrier '
means a person that engages in the business of transporting
persons or property for hire or compensation and that offers such
services indiscriminately to the public or some portion of the
public, and includes any vessel engaged for compensation in
transporting persons or property in interstate or foreign
commerce.
(4) 'Foreign air carrier' means a foreign air carrier as
defined in 49 U.S.C. 40102. + }
SECTION 106. { + (1) Gross receipts from the sale in this
state of tangible personal property and related services are
exempt from the sales tax if the property is purchased for use by
the purchaser in connection with the business of operating as a
private or common carrier by water, air or rail in interstate or
foreign commerce.
(2) Notwithstanding subsection (1) of this section:
(a) Actual use of the property in this state shall be subject
to the use tax at the time of the actual use; and
(b) Charges made by one railroad to another railroad for
maintenance and repair of jointly owned and used, or singly owned
and jointly used, railroad facilities do not constitute a
sale. + }
SECTION 107. { + (1) Gross receipts from the sale in this
state of tangible personal property in import or export commerce
are exempt from the sales tax.
(2) For purposes of this section, tangible personal property is
in import commerce from the time the property begins
transportation at a point outside the United States until the
property is:
(a) Actually used in any state, territory or possession of the
United States for any purpose;
(b) Resold after the property has arrived in this state or any
other state, territory or possession of the United States,
regardless of whether the property is in its original unbroken
package or container; or
(c) Processed, handled or otherwise stopped in transit for a
business purpose other than shipping, if the processing, handling
or other stoppage in transit occurs within any state, territory
or possession of the United States or the territorial waters of
this state or any other state, regardless of whether the
processing, handling or other stoppage in transit occurs within a
foreign trade zone.
(3)(a) For purposes of this section, tangible personal property
is in export commerce when the seller delivers the property to:
(A) The buyer at a destination in a foreign country;
(B) A carrier consigned to and for transportation to a
destination in a foreign country;
(C) The purchaser at shipside or aboard the purchaser's vessel
or other vehicle of transportation under circumstances that make
it clear that the process of exportation of the property has
begun; or
(D) The purchaser in this state if the property, other than a
vehicle, is capable of being transported to a foreign destination
under its own power, the seller files a shipper's export
declaration with respect to the property listing the seller as
the exporter and the purchaser immediately transports the
property directly to a destination in a foreign country.
(b) The exemption under this subsection may be allowed for
property delivered to the purchaser in this state if at the time
of delivery there is a certainty of export and the process of
export has begun. The process of export begins when the property
starts its final and certain continuous movement to a destination
in a foreign country. The process of export has not begun if the
property is in storage awaiting shipment even though there is
reasonable certainty that the property will be exported. + }
SECTION 108. { + (1) Gross receipts from occasional sales in
this state of tangible personal property and related services are
exempt from the sales tax.
(2) The exemption under this section does not apply to gross
receipts from the sale, or the storage, use or other consumption,
in this state of a vehicle, vessel or aircraft as defined in
section 36 of this 2013 Act. + }
SECTION 109. { + Gross receipts from the sale in this state of
tangible personal property purchased for use outside the United
States and related services are exempt from the sales tax, and
the storage, use or other consumption in this state of the
property is exempt from the use tax if the property is delivered
to a forwarding agent, export packer or other person engaged in
the business of preparing goods for export or arranging for their
exportation, and is actually delivered to a port outside the
United States prior to any use of the property. + }
SECTION 110. { + (1) Gross receipts from the sale in this
state of tangible personal property and related services to a
purchaser that is a seller registered under section 19 of this
2013 Act are exempt from the sales tax if the property is used by
the purchaser outside this state in the performance of a contract
to improve real property and, as a result of the use, the
property is incorporated into and becomes a part of real property
located outside this state.
(2) The exemption under this section applies only if the
purchaser certifies in writing to the seller, in such form as the
Department of Revenue may prescribe, that the property will be
used in the manner and for the purpose described in subsection
(1) of this section. + }
SECTION 111. { + (1) Gross receipts from the sale in this
state to a nonresident of this state for use outside this state
of the following items are exempt from the sales tax:
(a) Tangible personal property that becomes a component part of
tangible personal property belonging to the nonresident in the
course of installing, repairing, cleaning, altering or improving
the nonresident's property; and
(b) Services provided in installing, repairing, cleaning,
altering or improving personal property of or for a nonresident.
(2) The exemption under this section is allowable only if the
seller delivers the property to the purchaser at a point outside
this state or to a common or bona fide private carrier for
delivery to the purchaser at a point outside this state. + }
SECTION 112. { + Rentals payable under a lease of tangible
personal property in this state and related services are exempt
from the sales tax if the rentals are required to be included in
the measure of the use tax or if the property is situated outside
this state. + }
SECTION 113. { + (1) Gross receipts from the sale in this
state of tangible personal property and related services are
exempt from the sales tax if, pursuant to the contract of sale,
the property is required to be shipped and is shipped to a point
outside this state by the retailer by means of:
(a) Facilities operated by the retailer; or
(b) Delivery by the retailer to a carrier, customs broker or
forwarding agent, whether hired by the purchaser or not, for
shipment to the point outside this state.
(2) As used in this section:
(a) 'Carrier' means a person engaged in the business of
transporting for compensation tangible personal property owned by
other persons, and includes both common and contract carriers.
(b) 'Forwarding agent' means a person or firm engaged in the
business of preparing property for shipment or arranging for its
shipment. + }
SECTION 114. { + (1) The storage, use or other consumption in
this state of tangible personal property is exempt from the use
tax if the gross receipts from the sale of the property are
required to be included in the measure of the sales tax.
(2) The exemption under this section does not extend to the
possession, or the exercise, of any right or power over tangible
personal property by a lessee under a lease.
(3) No credit or refund of any amount of use tax paid may be
allowed on the ground that the storage, use or other consumption
of the property was exempt under subsection (1) of this section,
unless the person that paid the amount reimburses the seller for
the amount of the sales tax imposed on the sale of the property
and remitted by the seller to this state. + }
SECTION 115. { + (1) The storage, use or other consumption in
this state of tangible personal property is exempt from the use
tax if:
(a) The sales price of the tangible personal property does not
exceed $500 and the purchase is for personal use or consumption
and not for use or consumption in carrying on a trade,
occupation, business or profession; or
(b) The transfer is an occasional sale.
(2) The exemption under this section does not apply to the
gross receipts from the sale, or the storage, use or other
consumption, in this state of a vehicle, vessel or aircraft as
defined in section 36 of this 2013 Act.
(3)(a) For each tax year beginning on or after July 1, 2014,
the Department of Revenue shall recompute the threshold amount
under subsection (1) of this section as follows:
(A) Divide the average U.S. City Average Consumer Price Index
for the first six months of the current calendar year by the
average U.S. City Average Consumer Price Index for the first six
months of 2014.
(B) Recompute the threshold amount by multiplying $500 by the
appropriate indexing factor determined under subparagraph (A) of
this paragraph.
(b) Any change in the threshold amount determined under
paragraph (a) of this subsection shall be rounded to the nearest
multiple of $50.
(4) As used in this section 'U.S. City Average Consumer Price
Index' means the U.S. City Average Consumer Price Index for All
Urban Consumers (All Items) as published by the Bureau of Labor
Statistics of the United States Department of Labor. + }
SECTION 116. { + (1) The storage, use or other consumption in
this state of tangible personal property brought into this state
by a nonresident for the nonresident's use or enjoyment while
temporarily within this state is exempt from the use tax unless
the tangible personal property is used in conducting a
nontransitory business activity within this state.
(2) The use in this state, by a nonresident, of a motor vehicle
that is registered or licensed under the laws of the state of the
nonresident's residence, and that is not required to be
registered or titled under the laws of this state, is exempt from
the use tax. + }
SECTION 117. { + (1) The storage, use or other consumption in
this state of tangible personal property by a resident of this
state is exempt from the use tax if the tangible personal
property was acquired by the person in another state while a
resident of the other state primarily for use outside this state
and if the use was actual and substantial.
(2) If the tangible personal property was acquired by the
person less than three months before the person entered this
state, it is presumed that the tangible personal property was
acquired for use in this state and that its use outside this
state was not actual and substantial. + }
SECTION 118. { + (1) The use tax shall be computed on the
reasonable rental value, rather than on the retail value, of
tangible personal property stored, used or otherwise consumed in
this state for business purposes by a person engaged in business
outside this state who is the owner of the property.
(2) Notwithstanding subsection (1) of this section, the use tax
may not be imposed on property described in subsection (1) of
this section if the person paid the sales tax on the
property. + }
SECTION 119. { + (1) The Department of Revenue shall adopt
rules establishing procedures for claiming exemption from the
sales tax and the use tax, and may prescribe forms, exemption
certificates or other documentation required to claim exemptions.
(2) Procedures, forms, certificates and other requirements
prescribed under subsection (1) of this section shall comply with
the Streamlined Sales and Use Tax Agreement. + }
{ +
RETURNS AND PAYMENTS + }
SECTION 120. { + (1) Except as otherwise provided in the Sales
and Use Tax Law, all sales taxes and use taxes are due and
payable to the Department of Revenue as follows:
(a) If the taxes may reasonably be expected to be $500 or less
for the calendar year, the taxes are due and payable to the
department not later than the January 31 following the end of the
calendar year.
(b) If the taxes may reasonably be expected to be more than
$500, but $5,000 or less for the calendar year, the taxes are due
and payable to the department semiannually not later than the
last day of the calendar month next following June 30 and
December 31.
(c) Except for estimated taxes that may be required to be paid
under section 121 of this 2013 Act, if the taxes may reasonably
be expected to exceed $5,000 for the calendar year, the taxes are
due and payable quarterly not later than the 15th day of the
calendar month next following the end of the calendar
quarter. + } { +
(2)(a) For each tax year beginning on or after July 1, 2014,
the Department of Revenue shall recompute the threshold amounts
under subsection (1) of this section as follows:
(A) Divide the average U.S. City Average Consumer Price Index
for the first six months of the current calendar year by the
average U.S. City Average Consumer Price Index for the first six
months of 2014.
(B) Recompute each threshold amount by multiplying the
threshold amount by the appropriate indexing factor determined
under subparagraph (A) of this paragraph.
(b) Any change in the threshold amount determined under
paragraph (a) of this subsection shall be rounded to the nearest
multiple of $100.
(3) As used in this section 'U.S. City Average Consumer Price
Index' means the U.S. City Average Consumer Price Index for All
Urban Consumers (All Items) as published by the Bureau of Labor
Statistics of the United States Department of Labor. + }
SECTION 121. { + (1) The Department of Revenue shall prescribe
by rule:
(a) Methods for the remittance of the sales tax and the use
tax, including but not limited to the remittance of estimated
taxes.
(b) Sales tax and use tax forms and procedures for the filing
of sales tax and use tax returns.
(c) Compensation that sellers are allowed to retain out of
sales taxes and use taxes remitted to this state, in an amount
that is computed as a percentage of taxes due and that is not
less than the actual expenses incurred by the seller in
administering, collecting and remitting sales taxes and use
taxes.
(2) Rules adopted pursuant to subsection (1) of this section
must be in compliance with the Streamlined Sales and Use Tax
Agreement.
(3) Compensation under subsection (1)(c) of this section:
(a) May be allowed to a seller for a period only if:
(A) All required returns for the period are timely filed and
fully paid; and
(B) A certified service provider is not compensated on the
seller's behalf for the period.
(b) May not be computed on a base that includes taxes paid on
goods and services purchased for consumption by the seller. + }
SECTION 122. { + (1) If a person fails to file a sales tax or
use tax return at the time prescribed for filing, there shall be
added to the amount of tax required to be shown on the return a
delinquency penalty of five percent of the amount of the tax.
(2) If the failure to file a return continues for a period in
excess of 90 days after the due date:
(a) There shall be added to the amount of tax required to be
shown on the return a failure-to-file penalty of 20 percent of
the amount of the tax; and
(b) The Department of Revenue may send a notice to the person
demanding that the person file a return within 30 days of the
mailing of the notice.
(3) If, after the notice and demand sent pursuant to subsection
(2) of this section, no return is filed within 30 days, the
department may determine the tax according to the best of its
information and belief, assess the tax with appropriate penalty
and interest, plus an additional penalty of 25 percent of the tax
deficiency determined by the department, and give written notice
of the determination and assessment to the person required to
make the filing.
(4) A penalty equal to 100 percent of any deficiency determined
by the department shall be assessed and collected if:
(a) There is a failure to file a return with intent to evade
the tax; or
(b) A return was falsely prepared and filed with intent to
evade the tax.
(5) Interest shall be collected on the unpaid tax at the rate
established under ORS 305.220 for each month or fraction of a
month, computed from the time the tax became due, during which
the tax remains unpaid.
(6)(a) Each penalty imposed under this section is in addition
to any other penalty imposed under this section.
(b) Notwithstanding paragraph (a) of this subsection, the total
amount of penalty imposed under this section with respect to any
deficiency may not exceed 100 percent of the deficiency.
(7) A penalty may not be imposed under this section to the
extent that, as determined under rules adopted by the department,
the purchaser, seller or certified service provider relied on
erroneous data provided by the department with respect to tax
rates, boundaries or taxing jurisdiction assignments. + }
SECTION 123. { + (1) If a person fails to file a report or
return required under the Sales and Use Tax Law within 150 days
of the time prescribed by law, the Department of Revenue may
petition the Oregon Tax Court for an order requiring the person
to show cause why the person is not required to file the report
or return.
(2) Within 10 days after the filing of the petition, the tax
court shall enter an order directing the person to appear and
show cause why no report or return is required to be filed. The
petition and order shall be served upon the person in the manner
provided by law.
(3) Not later than 20 days after service pursuant to subsection
(2) of this section, the person shall:
(a) File the requested report or return with the department;
(b) Request from the tax court an order granting reasonable
time within which to file the requested report or return with the
department; or
(c) File with the tax court an answer to the petition showing
cause why the report or return is not required to be filed.
(4) If an answer is filed, the tax court shall set the matter
for hearing within 20 days after the filing of the answer, and
shall determine the matter in an expeditious manner, consistent
with the rights of the parties.
(5) An appeal may be taken to the Supreme Court as provided in
ORS 305.445 from an order of the tax court made and entered after
a hearing and determination under subsection (4) of this section.
(6) Reasonable attorney fees and expenses shall be awarded to
the prevailing party. + }
SECTION 124. { + Notwithstanding sections 121 and 122 of this
2013 Act, a penalty for late filing of a return with respect to
the sales tax or use tax or for late payment of sales taxes or
use taxes due may not be assessed, and the right of a seller to
retain as compensation a percentage of taxes due may not be
denied, during the six-month period beginning on the operative
date of this section. + }
SECTION 125. { + (1) A person may not:
(a) Fail to furnish any return required to be made pursuant to
the Sales and Use Tax Law;
(b) Fail to furnish a supplemental return or other data
required by the Department of Revenue; or
(c) Render a false or fraudulent return, report or claim for
refund.
(2) A person required to make, render, sign or verify any
return under the Sales and Use Tax Law may not make a false or
fraudulent return or fail to furnish a return with intent to
defeat or evade the determination of an amount due required by
law. + }
{ +
DETERMINATIONS, DEFICIENCIES AND COLLECTION + }
SECTION 126. { + Except as otherwise provided in the Sales and
Use Tax Law, the provisions of ORS chapters 305 and 314 relating
to audits and examinations of returns, periods of limitations,
determinations of deficiencies, assessments, liens,
delinquencies, claims for refund, conferences and appeals to the
Oregon Tax Court, and the procedures relating thereto, apply to
the determinations of taxes, penalties and interest under the
Sales and Use Tax Law. + }
SECTION 127. { + (1) If the Department of Revenue is not
satisfied with a tax return or the amount of tax paid to this
state by any person under the Sales and Use Tax Law, the
department may compute and determine the amount required to be
paid upon the basis of the facts contained in the return or upon
the basis of any information in the department's possession or
that comes into the department's possession.
(2) One or more deficiency determinations may be made of the
amount due for one or more periods.
(3) Notices of deficiency shall be given within the time for
giving notices of deficiencies under the circumstances described
under ORS 314.410.
(4) Notices of deficiency shall be given and interest on
deficiencies shall be computed as provided in ORS 305.265.
(5) Subject to ORS 314.421 and 314.423, liens for taxes or
deficiencies shall arise at the time of assessment, shall
continue until the taxes, interest and penalties are fully
satisfied and may be recorded and collected in the manner
provided for the collection of delinquent income taxes. + }
SECTION 128. { + All taxes, interest and penalties due and
unpaid under the Sales and Use Tax Law are, from the time
liability is incurred, a personal debt, due the State of Oregon,
from the persons liable for the taxes, interest and
penalties. + }
SECTION 129. { + (1) If the Department of Revenue believes
that any determination or collection of any sales or use tax or
any amount of sales or use tax required to be collected and paid
to the state will be jeopardized by delay, the department may
make a determination of the tax or amount of tax required to be
collected, noting that fact upon the determination.
(2) The amount determined under subsection (1) of this section
is immediately due and payable, and the department may assess the
tax, notify the person and proceed to collect the tax in the same
manner and using the same procedures as for the collection of
income taxes under ORS 314.440. + }
SECTION 130. ORS 314.430 is amended to read:
314.430. (1) If any tax imposed under ORS chapter 118, 316, 317
or 318 { + or the Sales and Use Tax Law + } or any portion of
the tax is not paid within 30 days after the date that the
written notice and demand for payment required under ORS 305.895
is mailed (or within five days after the tax becomes due, in the
case of the termination of the tax year by the Department of
Revenue under the provisions of ORS 314.440), or any amount
payable by a transferee under ORS 311.695 is not paid as required
under ORS 311.686, and no provision is made to secure the payment
thereof by bond, deposit or otherwise, pursuant to regulations
promulgated by the department, the department may issue a warrant
for the payment of the amount of the tax or amount payable under
ORS 311.695, with the added penalties, interest and any
collection charge incurred. A copy of the warrant shall be
mailed or delivered to the taxpayer or transferee by the
department at the taxpayer's or transferee's last-known address.
(2) At any time after issuing a warrant under this section, the
department may record the warrant in the County Clerk Lien Record
of any county of this state. Recording of the warrant has the
effect described in ORS 205.125. After recording a warrant, the
department may direct the sheriff for the county in which the
warrant is recorded to levy upon and sell the real and personal
property of the taxpayer or transferee found within that county,
and to levy upon any currency of the taxpayer or transferee found
within that county, for the application of the proceeds or
currency against the amount reflected in the warrant and the
sheriff's cost of executing the warrant. The sheriff shall
proceed on the warrant in the same manner prescribed by law for
executions issued against property pursuant to a judgment, and is
entitled to the same fees as provided for executions issued
against property pursuant to a judgment. The fees of the sheriff
shall be added to and collected as a part of the warrant
liability.
(3) In the discretion of the department a warrant under this
section may be directed to any agent authorized by the department
to collect taxes, and in the execution of the warrant the agent
has all of the powers conferred by law upon sheriffs, but is
entitled to no fee or compensation in excess of actual expenses
paid in the performance of such duty.
(4) Until a warrant issued under this section is satisfied in
full, the department has the same remedies to enforce the claim
for taxes against the taxpayer or for amounts payable by the
transferee as if the state had recovered judgment against the
taxpayer for the amount of the tax or against the transferee for
the amount payable under ORS 311.695. { +
(5) As used in this section, 'taxpayer' includes any person
required under the Sales and Use Tax Law to remit taxes to the
department. + }
SECTION 131. { + (1) The Director of the Department of Revenue
may enter into a sales tax and use tax refund agreement with the
governing body of any Indian reservation in Oregon.
(2) An agreement entered into under this section may provide
for a mutually agreed upon amount as a refund to the governing
body of any sales tax or use tax collected in connection with the
sale, use, storage or consumption of tangible personal property
on the Indian reservation. This provision is in addition to other
laws allowing tax refunds.
(3) There is annually appropriated to the department, from the
suspense account established pursuant to section 141 of this 2013
Act, the amounts necessary to make refunds pursuant to this
section. + }
SECTION 132. { + (1) The Department of Revenue may require any
person subject to the Sales and Use Tax Law to deposit with the
department a security in an amount the department considers
necessary to ensure the person's compliance with the Sales and
Use Tax Law.
(2) Notwithstanding subsection (1) of this section, the amount
of the security may not be greater than twice the estimated tax
liability of the person for the reporting period.
(3) The amount of the security may be increased or decreased as
the department considers necessary, subject to the limitations
provided under this section. + }
{ +
ADMINISTRATION + }
SECTION 133. { + (1) The Department of Revenue shall
administer and enforce the Sales and Use Tax Law and may adopt
rules to achieve these purposes.
(2) Notwithstanding any provision of law to the contrary, the
Sales and Use Tax Law must be administered in a manner consistent
with mandatory provisions of the Streamlined Sales and Use Tax
Agreement. + }
SECTION 134. { + Every seller, every person required to
register under section 19 of this 2013 Act and every person
storing, using or otherwise consuming in this state tangible
personal property purchased from a seller shall keep records,
receipts, invoices and other pertinent papers in a form that the
Department of Revenue may require, consistent with the
Streamlined Sales and Use Tax Agreement. + }
SECTION 135. { + (1) The Department of Revenue or a person
authorized in writing by the department may examine, during
reasonable business hours, the books, papers, records and
equipment of any person selling tangible personal property and
any person liable for the use tax. The department may investigate
the character of the business of the person in order to verify
the accuracy of any return made, or, if no return is made by the
person, to ascertain and determine the amount required to be
paid.
(2) The department may require the attendance of a person
described in subsection (1) of this section and any other person
having knowledge of the person's premises, and may take testimony
and require proof material for the information, with power to
administer oaths to such persons.
(3) The department may, by order or subpoena, to be served with
the same force and effect and in the same manner that a subpoena
is served in a civil action in the circuit court, require the
production, at any time and place it designates, of any books,
papers, accounts or other information necessary to administer and
enforce the Sales and Use Tax Law.
(4)(a) If a person fails to comply with a subpoena or order of
the department or to produce or permit the examination or
inspection of any books, papers, records or equipment pertinent
to any investigation or inquiry under this section, or to testify
to any matter regarding which the person may be lawfully
interrogated, the department may apply to the Oregon Tax Court,
or to the circuit court for the county in which the person
resides, for an order to require the person to attend and testify
or otherwise comply with the demand or request of the department.
(b) The application to the court under this subsection shall be
by ex parte motion, upon which the court shall make an order
requiring the person against whom it is directed to comply with
the request or demand of the department within 10 days after
service of the order, or such further time as the court may
grant, or to justify the failure within that time.
(c) An order made pursuant to this subsection shall be served
upon the person to whom it is directed in the manner required by
this state for service of process, the service of which shall be
required to confer jurisdiction upon the court.
(5) The remedy provided by section 143 of this 2013 Act for
failure to obey an order issued by the court under this section
is in addition to other remedies, civil or criminal, existing
under the tax laws or other laws of this state. + }
SECTION 136. { + (1) In the administration of the use tax, the
Department of Revenue may require the filing of reports by any
person or class of persons having in their possession or custody
information relating to sales of tangible personal property, the
storage, use or other consumption of which may be subject to the
use tax.
(2) The reports shall be filed when the department requires and
must set forth:
(a) The names and addresses of purchasers of the tangible
personal property;
(b) The sales price of the property;
(c) The date of sale; and
(d) Such other information as the department requires.
(3) The department may require reports under this section only
if the reports may be required under the Streamlined Sales and
Use Tax Agreement. + }
SECTION 137. { + (1) Except as otherwise specifically provided
by law, it is unlawful for the Department of Revenue or any
officer or employee of the department or other person having
administrative duty under the Sales and Use Tax Law to divulge or
make known in any manner the amount of gross receipts or purchase
price or any particulars set forth or disclosed in any report,
return, claim or other document required in the administration of
the Sales and Use Tax Law.
(2) It is unlawful for any person or entity to whom information
is disclosed or given by the department pursuant to section 138
(2) of this 2013 Act or any other provision of state law to
divulge or use such information for any purpose other than that
specified in the provisions of law authorizing the use or
disclosure.
(3) A subpoena or judicial order may not be issued compelling
the Department of Revenue, the Department of Transportation, the
State Marine Board, the Oregon Department of Aviation or any of
their officers or employees, or any person who has acquired
information pursuant to section 138 (2) of this 2013 Act or any
other provision of state law, to divulge or make known the amount
of gross receipts or purchase price or any particulars set forth
or disclosed in any report, return, claim or other document
required in the administration of the Sales and Use Tax Law
except where the taxpayer's liability for sales or use tax is to
be adjudicated by the court from which such process issues.
(4) As used in this section, 'officer,' 'employee' or ' person'
includes an authorized representative of the officer, employee or
person, or any former officer, employee or person, or an
authorized representative of the former officer, employee or
person. + }
SECTION 138. { + (1) The Department of Revenue, the Department
of Transportation, the State Marine Board and the Oregon
Department of Aviation may:
(a) Furnish any taxpayer or authorized representative of the
taxpayer, upon request of the taxpayer or representative, with a
copy of the taxpayer's sales tax or use tax return filed for any
reporting period, with a copy of any report filed by the taxpayer
in connection with the return or with a copy of a sales tax or
use tax refund claim filed under ORS 305.270.
(b) Publish lists of taxpayers who are entitled to unclaimed
tax refunds.
(c) Publish statistics so classified as to prevent the
identification of gross receipts or purchase price or any
particulars contained in any report or return.
(d) Publish lists of sellers to whom permits have been issued
or whose permits have been suspended or revoked under the Sales
and Use Tax Law.
(2) The Department of Revenue, the Department of
Transportation, the State Marine Board and the Oregon Department
of Aviation may disclose and give access to information described
in section 137 of this 2013 Act to:
(a) The Governor or the authorized representative of the
Governor:
(A) With respect to an individual who is designated as being
under consideration for appointment or reappointment to an office
or for employment in the office of the Governor, only for the
purpose of making the appointment, reappointment or decision to
employ the individual in the office of the Governor. The
information disclosed shall be confined to whether the individual
has:
(i) Filed returns with respect to the taxes imposed by the
Sales and Use Tax Law for those of the not more than three
immediately preceding years for which the individual was required
to file an Oregon sales tax or use tax return.
(ii) Failed to pay any tax within 30 days from the date of
mailing of a deficiency notice or otherwise respond to a
deficiency notice within 30 days of its mailing.
(iii) Been assessed any penalty under the Sales and Use Tax Law
and what the nature of the penalty is.
(iv) Been or is under investigation for possible criminal
offenses under the Sales and Use Tax Law.
(B) For use by an officer or employee of the Oregon Department
of Administrative Services authorized to prepare revenue
estimates, or a person contracting with the Oregon Department of
Administrative Services to prepare revenue estimates, in the
preparation of revenue estimates required for the Governor's
budget under ORS 291.201 to 291.226, or required for submission
to the Emergency Board or, if the Legislative Assembly is in
session, to the Joint Committee on Ways and Means and to the
Legislative Revenue Officer under ORS 291.342. Any officer,
employee or person furnished or granted access to information
under this subparagraph shall not remove the information from the
premises of the Department of Revenue, the Department of
Transportation, the State Marine Board or the Oregon Department
of Aviation.
(b) The United States Commissioner of Internal Revenue or
authorized representative, for tax purposes only.
(c) The proper officer of any state or the District of
Columbia, or their authorized representatives, for tax purposes
only, if the state or district has a provision of law that
substantially conforms to the requirements of section 137 of this
2013 Act and this section as to confidentiality.
(d)(A) The Multistate Tax Commission or its authorized
representatives, for tax purposes only.
(B) Notwithstanding subparagraph (A) of this paragraph, the
Multistate Tax Commission may make the information available to
the United States Commissioner of Internal Revenue or the proper
officer of any state or the District of Columbia, or their
authorized representatives, for tax purposes only, if the state
or district has a provision of law that substantially conforms to
the requirements of section 137 of this 2013 Act and this section
as to confidentiality.
(e) The Attorney General, assistants and employees in the
Department of Justice or other legal representative of the State
of Oregon, to the extent the Department of Revenue, the
Department of Transportation, the State Marine Board or the
Oregon Department of Aviation deems disclosure or access
necessary for the performance of the duties of advising or
representing the Department of Revenue, the Department of
Transportation, the State Marine Board or the Oregon Department
of Aviation pursuant to ORS 180.010 to 180.240 and the tax laws
of this state.
(f) Employees of the State of Oregon, to the extent the
Department of Revenue, the Department of Transportation, the
State Marine Board or the Oregon Department of Aviation deems
disclosure or access necessary for the employees to perform their
duties under contracts or agreements between the Department of
Revenue, the Department of Transportation, the State Marine Board
or the Oregon Department of Aviation and any other department,
division, agency or subdivision of the State of Oregon, in the
administration of the tax laws.
(g) Other persons, and their employees, to the extent the
Department of Revenue, the Department of Transportation, the
State Marine Board or the Oregon Department of Aviation deems
disclosure or access necessary for the performance of the
persons' duties under agreements between the Department of
Revenue, the Department of Transportation, the State Marine Board
or the Oregon Department of Aviation and such persons, in the
administration of the tax laws.
(h) The Legislative Revenue Officer or authorized
representatives upon compliance with ORS 173.850. The officer or
representative shall not remove from the premises of the
Department of Revenue, the Department of Transportation, the
State Marine Board or the Oregon Department of Aviation any
materials that would reveal the identity of any taxpayer or other
person.
(i) The Secretary of State as Auditor of Public Accounts under
Article VI, section 2, of the Oregon Constitution.
(3) Each officer or employee of the Department of Revenue, the
Department of Transportation, the State Marine Board or the
Oregon Department of Aviation and each person described or
referred to in subsection (2)(a) and (e) to (i) of this section
to whom disclosure or access to the tax information is given
under subsection (2) of this section or any other provision of
state law, prior to beginning employment or the performance of
duties involving the disclosure or access, shall be advised in
writing of the provisions of sections 137 and 143 of this 2013
Act, relating to penalties for the violation of section 137 of
this 2013 Act, and shall as a condition of employment or
performance of duties execute a certificate, in a form prescribed
by the Department of Revenue, stating in substance that the
person has read these provisions of law, that the person has had
them explained and that the person is aware of the penalties for
the violation of section 137 of this 2013 Act. + }
SECTION 139. { + The Department of Revenue shall prepare and
make available to the public statistics, in a manner determined
by the department, with respect to the operation of the Sales and
Use Tax Law, including amounts collected, classification of
taxpayers and other facts considered by the department to be of
public interest. + }
{ +
DISPOSITION OF PROCEEDS + }
SECTION 140. { + All fees, taxes, interest and penalties
imposed and all amounts of tax required to be paid to this state
under the Sales and Use Tax Law, except those collected by the
Department of Transportation, shall be paid to the Department of
Revenue, and upon receipt by the Department of Revenue shall be
paid over to the State Treasurer to be disposed of as provided in
sections 141 and 142 of this 2013 Act. + }
SECTION 141. { + (1) All moneys received by the Department of
Revenue under the Sales and Use Tax Law shall be deposited in the
State Treasury and credited to a suspense account established
under ORS 293.445.
(2) Refunds, including refunds of overpayments or of other
moneys received under the Sales and Use Tax Law in which the
department has no legal interest, shall be paid out of the
suspense account.
(3) After the payment of refunds pursuant to subsection (2) of
this section, the balance in the suspense fund shall be deposited
in the Sales and Use Tax Fund established under section 142 of
this 2013 Act. + }
{ + (4) Notwithstanding subsection (1) of this section, any
moneys described in Article IX, section 3a, of the Oregon
Constitution, that are received by the Department of Revenue
shall be transferred to the State Highway Fund. + }
SECTION 142. { + The Sales and Use Tax Fund is established in
the State Treasury, separate and distinct from the General Fund.
Interest earned by the Sales and Use Tax Fund shall be credited
to the fund. + }
{ +
PENALTIES + }
SECTION 143. { + (1) If a person violates any provision of the
Sales and Use Tax Law, the Department of Revenue may assess a
civil penalty of not more than $1,000 against the person.
(2) A person who violates section 125 (1)(c) or (2) of this
2013 Act is guilty of a Class C felony.
(3) A person who violates section 137 of this 2013 Act is
guilty of a Class C felony. If the person is an officer or
employee of this state, the person shall be dismissed from office
and shall be incapable of holding any public office in this state
for a period of five years after dismissal.
(4) A person may appeal a civil penalty assessed under this
section to the Oregon Tax Court as provided in ORS 305.275. If
the penalty is not paid within 10 days after the order of the
department becomes final, the department may record the order and
collect the amount assessed in the same manner as income tax
deficiencies are recorded and collected under ORS 314.430.
(5) The penalties provided in this section are in addition to
all other penalties assessable under the Sales and Use Tax
Law. + }
{ +
MISCELLANEOUS + }
SECTION 144. { + Unless otherwise specifically provided by
law, the taxes imposed under the Sales and Use Tax Law are in
addition to and not in lieu of any other taxes or excises imposed
by the State of Oregon or any county, city, district or other
municipal corporation or political subdivision of this state. + }
{ +
CONFORMING CHANGES + }
SECTION 145. ORS 305.130 is amended to read:
305.130. (1) The Department of Revenue may be made a party in
any action in any court of this state or of the United States
having jurisdiction of the subject matter to quiet title to, to
remove a cloud from the title to, or for the foreclosure of a
mortgage or other lien upon, any real property or personal
property, or both, upon which the State of Oregon has or claims
to have a lien under ORS 311.673, 311.679, 311.771, 314.430 or
321.570 or ORS chapter 323 { + or the Sales and Use Tax Law + },
and the judgment in { - such - } { + the + } action shall be
conclusive and binding upon the State of Oregon and
{ - such - } { + the + } department.
(2) The complaint in { - such - } { + the + } action shall
set forth with particularity the nature of { - any such - }
{ + the + } lien had or claimed by the State of Oregon. The
summons in { - such - } { + the + } action, together with a
copy of the complaint { - therein - } , shall be served on
{ - such - } { + the + } department in the manner prescribed by
ORCP 7 D(3)(h), and
{ - such - } { + the + } summons shall require { - such - }
{ + the + } department to appear and answer the complaint within
60 days from the date of { - such - } service.
SECTION 146. ORS 305.265 is amended to read:
305.265. (1) Except as provided in ORS 305.305, the provisions
of this section apply to all reports or returns of tax or tax
liability including claims under ORS 310.630 to 310.706 { + and
the Sales and Use Tax Law, + } filed with the Department of
Revenue under the revenue and tax laws administered by it, except
those filed under ORS 320.005 to 320.150.
(2) As soon as practicable after a report or return is filed,
the department shall examine or audit it, if required by law or
the department deems such examination or audit practicable. If
the department discovers from an examination or an audit of a
report or return or otherwise that a deficiency exists, it shall
compute the tax and give notice to the person filing the return
of the deficiency and of the department's intention to assess the
deficiency, plus interest and any appropriate penalty. Except as
provided in subsection (3) of this section, the notice shall:
(a) State the reason for each adjustment;
(b) Give a reference to the statute, regulation or department
ruling upon which the adjustment is based; and
(c) Be certified by the department that the adjustments are
made in good faith and not for the purpose of extending the
period of assessment.
(3) When the notice of deficiency described in subsection (2)
of this section results from the correction of a mathematical or
clerical error and states what would have been the correct tax
but for the mathematical or clerical error, such notice need
state only the reason for each adjustment to the report or
return.
(4) With respect to any tax return filed under ORS chapter 314,
316, 317 or 318, deficiencies shall include but not be limited to
the assertion of additional tax arising from:
(a) The failure to report properly items or amounts of income
subject to or which are the measure of the tax;
(b) The deduction of items or amounts not permitted by law;
(c) Mathematical errors in the return or the amount of tax
shown due in the records of the department; or
(d) Improper credits or offsets against the tax claimed in the
return.
(5)(a) The notice of deficiency shall be accompanied by a
statement explaining the person's right to make written
objections, the person's right to request a conference and the
procedure for requesting a conference. The statement, and an
accompanying form, shall also explain that conference
determinations are routinely transmitted via regular mail and
that a person desiring to have conference determinations
transmitted by certified mail may do so by indicating on the form
the person's preference for certified mail and by returning the
form with the person's written objections as described in
paragraph (b) of this subsection.
(b) Within 30 days from the date of the notice of deficiency,
the person given notice shall pay the deficiency with interest
computed to the date of payment and any penalty proposed. Or
within that time the person shall advise the department in
writing of objections to the deficiency, and may request a
conference with the department, which shall be held prior to the
expiration of the one-year period set forth in subsection (7) of
this section.
(6) If a request for a conference is made, the department shall
notify the person of a time and place for conference and appoint
a conference officer to meet with the person for an informal
discussion of the matter. After the conference, the conference
officer shall send the determination of the issues to the person.
The determination letter shall be sent by regular mail, or by
certified mail if the person given notice has indicated a
preference for transmission of the determination by certified
mail. The department shall assess any deficiency in the manner
set forth in subsection (7) of this section. If no conference is
requested and written objections are received, the department
shall make a determination of the issues considering such
objections, and shall assess any deficiency in the manner
provided in subsection (7) of this section. The failure to
request or have a conference shall not affect the rights of
appeal otherwise provided by law.
(7) If neither payment nor written objection to the deficiency
is received by the department within 30 days after the notice of
deficiency has been mailed, the department shall assess the
deficiency, plus interest and penalties, if any, and shall send
the person a notice of assessment, stating the amount so
assessed, and interest and penalties. The notice of assessment
shall be mailed within one year from the date of the notice of
deficiency unless an extension of time is agreed upon as
described in subsection (8) of this section. The notice shall
advise the person of the rights of appeal.
(8) If, prior to the expiration of any period of time
prescribed in subsection (7) of this section for giving of notice
of assessment, the department and the person consent in writing
to the deficiency being assessed after the expiration of such
prescribed period, such deficiency may be assessed at any time
prior to the expiration of the period agreed upon. The period so
agreed upon may be extended by subsequent agreements in writing
made before the expiration of the period agreed upon.
(9) The failure to hold a requested conference within the
one-year period prescribed in subsection (5) of this section
shall not invalidate any assessment of deficiency made within the
one-year period pursuant to subsection (7) of this section or
within any extension of time made pursuant to subsection (8) of
this section, but shall invalidate any assessment of interest or
penalties attributable to the deficiency. After an assessment has
been made, the department and the person assessed may still hold
a conference within 90 days from the date of assessment. If a
conference is held, the 90-day period under ORS 305.280 (2) shall
run from the date of the conference officer's written
determination of the issues.
(10)(a) In the case of a failure to file a report or return on
the date prescribed therefor (determined with regard to any
extension for filing), the department shall determine the tax
according to the best of its information and belief, assess the
tax plus appropriate penalty and interest, and give written
notice of the failure to file the report or return and of the
determination and assessment to the person required to make the
filing. The amount of tax shall be reduced by the amount of any
part of the tax which is paid on or before the date prescribed
for payment of the tax and by the amount of any credit against
the tax which may be lawfully claimed upon the return.
(b) Notwithstanding subsection (14) of this section and ORS
305.280, and only to the extent allowed by rules adopted by the
department, the department may accept the filing of a report or
return submitted by a person who has been assessed a tax under
paragraph (a) of this subsection.
(c) The department may reject a report or return:
(A) That is not verified as required by ORS 305.810;
(B) That the department determines is not true and correct as
to every material matter as required by ORS 305.815; or
(C) If the department may impose a penalty under ORS 316.992
(1) with respect to the report or return.
(d) If the department rejects a report or return of a person
assessed a tax under paragraph (a) of this subsection, the
department shall issue a notice of rejection to the person. The
person may appeal the rejection to the magistrate division of the
Oregon Tax Court only if:
(A) The report or return was filed within 90 days of the date
the department's assessment under paragraph (a) of this
subsection was issued; and
(B) The appeal is filed within 90 days of the date shown on the
notice of rejection.
(e) If the person assessed under paragraph (a) of this
subsection submits a report or return to the department and
appeals the assessment to the tax court, the department may
request a stay of action from the court pending review of the
report or return. If the department:
(A) Accepts the filing of the report or return, the appeal
shall be dismissed as moot.
(B) Rejects the report or return, the stay of action on the
appeal shall be lifted.
(f) If the department accepts the filing of a report or return,
the department may reduce the assessment issued under paragraph
(a) of this subsection. A report or return filed under this
subsection that is accepted by the department, whether or not the
assessment has been reduced, shall be considered a report or
return described in subsection (1) of this section and shall be
subject to the provisions of this section, including but not
limited to examination and adjustment pursuant to subsection (2)
of this section.
(g) The department may refund payments made with respect to a
report or return filed and accepted pursuant to this subsection.
If the report or return is filed within three years of the due
date for filing the report or return, excluding extensions, the
refund shall be made as provided by ORS 305.270 and 314.415. If
the report or return is not filed within three years of the due
date for filing the report or return, excluding extensions, the
refund shall be limited to payments received within the two-year
period ending on the date the report or return is received by the
department and payments received after the date the report or
return is received by the department. Interest shall be paid at
the rate established under ORS 305.220 for each month or fraction
of a month from the date the report or return is received by the
department to the time the refund is made.
(11) Mailing of notice to the person at the person's last-known
address shall constitute the giving of notice as prescribed in
this section.
(12) If a return is filed with the department accompanied by
payment of less than the amount of tax shown on or from the
information on the return as due, the difference between the tax
and the amount submitted is considered as assessed on the due
date of the report or return (determined with regard to any
extension of time granted for the filing of the return) or the
date the report or return is filed, whichever is later. For
purposes of this subsection, the amount of tax shown on or from
the information on the return as due shall be reduced by the
amount of any part of the tax that is paid on or before the due
date prescribed for payment of the tax, and by any credits
against the tax that are claimed on the return. If the amount
required to be shown as tax on a return is less than the amount
shown as tax on the return, this subsection shall be applied by
substituting the lesser amount.
(13) Every deficiency shall bear interest at the rate
established under ORS 305.220 for each month or fraction of a
month computed from the due date of the return to date of
payment. If the return was falsely prepared and filed with
intent to evade the tax, a penalty equal to 100 percent of the
deficiency shall be assessed and collected. All payments received
shall be credited first to penalty, then to interest accrued, and
then to tax due.
(14) If the deficiency is paid in full before a notice of
assessment is issued, the department is not required to send a
notice of assessment, and the tax shall be considered as assessed
as of the date which is 30 days from the date of the notice of
deficiency or the date the deficiency is paid, whichever is the
later. A partial payment of the deficiency shall constitute only
a credit to the account of the person assessed. Assessments and
billings of taxes shall be final after the expiration of the
appeal period specified in ORS 305.280, except to the extent that
an appeal is allowed under ORS 305.280 (3) following payment of
the tax.
(15) Appeal may be taken to the tax court from any notice of
assessment. The provisions of this chapter with respect to
appeals to the tax court apply to any deficiency, penalty or
interest assessed.
SECTION 147. ORS 305.270 is amended to read:
305.270. (1) If the amount of the tax shown as due on a report
or return originally filed with the Department of Revenue with
respect to a tax imposed under ORS chapter 118, 308, 308A, 310,
314, 316, 317, 318 or 321 { + or the Sales and Use Tax Law + },
or collected pursuant to ORS 305.620, or as corrected by the
department, is less than the amount theretofore paid, or if a
person files a claim for refund of any tax paid to the department
under such laws within the period specified in subsection (2) of
this section, any excess tax paid shall be refunded by the
department with interest as provided in this section and ORS
314.415.
(2) The claim shall be made on a form prescribed by the
department, except that an amended report or return showing a
refund due and filed within the time allowed by this subsection
for the filing of a claim for refund, shall constitute a claim
for refund. The claim shall be filed within the period specified
in ORS 314.415 (2) for taxes imposed under ORS chapters 310, 314,
316, 317 { - and - } { + or + } 318 { + or the Sales and Use
Tax Law + }, or collected pursuant to ORS 305.620 { + , + }
{ - ( - } except where any applicable ordinance specifies
another period { - ) - } , within the period specified in ORS
118.100 (2) for taxes imposed under ORS chapter 118 and within
two years of the payment of any tax under ORS chapter 308, 308A
or 321.
(3) Upon receipt of a claim for refund, or original report or
return claiming a refund, the department shall either refund the
amount requested or send to the claimant a notice of any proposed
adjustment to the refund claim, stating the basis upon which the
adjustment is made. A proposed adjustment may either increase or
decrease the amount of the refund claim or result in the finding
of a deficiency. If the proposed adjustment results in a
determination by the department that some amount is refundable,
the department may send the claimant the adjusted amount with the
notice.
(4)(a) The notice of proposed adjustment shall be accompanied
by a statement explaining the claimant's right to make written
objections to the refund adjustment, the claimant's right to
request a conference and the procedure for requesting a
conference. The statement, and an accompanying form, shall also
explain that conference determinations are routinely transmitted
via regular mail and that a claimant desiring to have conference
determinations transmitted by certified mail may do so by
indicating on the form the claimant's preference for certified
mail and by returning the form with the claimant's written
objections as described in paragraph (b) of this subsection.
(b) The claimant may, within 30 days of the date of the notice
of proposed adjustment, advise the department in writing of
objections to the refund adjustment and may request a conference
with the department, which shall be held within one year of the
date of the notice. The department shall notify the claimant of a
time and place for the conference, and appoint a conference
officer to meet with the claimant for an informal discussion of
the claim. After the conference, the conference officer shall
send a determination of the matter to the claimant. The
determination letter shall be sent by regular mail, or by
certified mail if the claimant has indicated a preference for
transmission of the determination by certified mail. The
department shall issue either a notice of refund denial or
payment of any amount found to be refundable, together with any
applicable interest provided by this section. If the conference
officer determines that a deficiency exists, the department shall
issue a notice of assessment.
(5) If no conference is requested, and the adjustments have not
resulted in the finding of a deficiency, the following shall
apply:
(a) If written objections have been made by the claimant, the
department shall consider the objections, determine any issues
raised and send the claimant a notice of refund denial or payment
of any amount found to be refundable, together with any interest
provided by this section.
(b) If no written objections are made, the notice of any
proposed adjustment shall be final after the period for
requesting a conference or filing written objections has expired.
(6) If no conference is requested, and the notice of proposed
adjustment has asserted a deficiency, the department shall
consider any objections made by the person denied the refund,
make a determination of any issues raised, pay any refunds found
due, with applicable interest, or assess any deficiency and mail
a notice { - thereof - } { + setting forth the department's
determination, including a refund or deficiency, + } within one
year from the date of the notice of { + proposed adjustment
assessing the + } deficiency, unless an extension of time is
agreed upon as described in subsection (7) of this section.
(7) If, prior to the expiration of any period of time
prescribed in subsection (6) of this section for giving of notice
of assessment, the department and the person consent in writing
to the deficiency being assessed after the expiration of
{ - such - } { + the + } prescribed period, { - such - }
{ + the + } deficiency may be assessed at any time prior to the
expiration of the period agreed upon. The period
{ - so - } agreed upon may be extended by subsequent
agreements in writing made before the expiration of the period
agreed upon.
(8) If the department refunds the amount requested as provided
in subsection (3) of this section, without examination or audit
of the refund claim, the department shall give notice of this
{ + determination + } to the claimant at the time of making the
refund. Thereafter, the department shall have one year in which
to examine or audit the refund claim, and send the notice of
proposed adjustment provided for in subsection (3) of this
section, in addition to any time permitted in ORS 314.410 or
314.415.
(9) The failure to hold a requested conference within the
one-year period prescribed in subsection (4) of this section
shall not invalidate any assessment of deficiency made within the
one-year period pursuant to subsection (8) of this section or
within any extension of time made pursuant to subsection (7) of
this section, but shall invalidate any assessment of interest or
penalties attributable to the deficiency. After an assessment has
been made, the department and the person assessed may still hold
a conference within 90 days from the date of assessment. If a
conference is held, the 90-day period under ORS 305.280 (2) shall
run from the date of the conference officer's written
determination of the issues.
(10) The claimant may appeal any notice of proposed adjustment,
refund denial or notice of assessment in the manner provided in
ORS 305.404 to 305.560. The failure to file written objections or
to request or have a conference shall not affect the { +
claimant's + } rights of appeal { - so provided - } { + under
this subsection + }. All notices and determinations shall set
forth rights of appeal.
SECTION 148. ORS 305.280 is amended to read:
305.280. (1) Except as otherwise provided in this section, an
appeal under ORS 305.275 (1) or (2) shall be filed within 90 days
after the act, omission, order or determination becomes actually
known to the person, but in no event later than one year after
the act or omission has occurred, or the order or determination
has been made. An appeal under ORS 308.505 to 308.665 shall be
filed within 90 days after the date the order is issued under ORS
308.584 (3). An appeal from a supervisory order or other order or
determination of the Department of Revenue shall be filed within
90 days after the date a copy of the order or determination or
notice of the order or determination has been served upon the
appealing party by mail as provided in ORS 306.805.
(2) An appeal under ORS 323.416 or 323.623 or from any notice
of assessment or refund denial issued by the Department of
Revenue with respect to a tax imposed under ORS chapter 118, 308,
308A, 310, 314, 316, 317, 318, 321 or this chapter { + or the
Sales and Use Tax Law + }, or collected pursuant to ORS 305.620,
shall be filed within 90 days after the date of the notice. An
appeal from a proposed adjustment under ORS 305.270 shall be
filed within 90 days after the date the notice of adjustment is
final.
(3) Notwithstanding subsection (2) of this section, an appeal
from a notice of assessment of taxes imposed under ORS chapter
314, 316, 317 or 318 may be filed within two years after the date
the amount of tax, as shown on the notice and including
appropriate penalties and interest, is paid.
(4) Except as provided in subsection (2) of this section or as
specifically provided in ORS chapter 321, an appeal to the tax
court under ORS chapter 321 or from an order of a county board of
property tax appeals shall be filed within 30 days after the date
of the notice of the determination made by the department or date
of mailing of the order, date of publication of notice of the
order, date the order is personally delivered to the taxpayer or
date of mailing of the notice of the order to the taxpayer,
whichever is applicable.
(5) If the tax court denies an appeal made pursuant to this
section on the grounds that it does not meet the requirements of
this section or ORS 305.275 or 305.560, the tax court shall issue
a written decision rejecting the petition and shall set forth in
the decision the reasons the tax court considered the appeal to
be defective.
SECTION 149. ORS 305.565 is amended to read:
305.565. (1) Except as provided in subsection (2) of this
section, proceedings for the collection of any taxes, interest or
penalties resulting from an assessment of additional taxes
imposed by ORS chapter 118, 310, 314, 316, 317, 318, 321 or this
chapter { + or the Sales and Use Tax Law + } shall be stayed by
the taking or pendency of any appeal to the tax court.
(2) Notwithstanding subsection (1) of this section, the
Department of Revenue may proceed to collect any taxes, interest
or penalties described in subsection (1) of this section if the
department determines that collection will be jeopardized if
collection is delayed or that the taxpayer has taken a frivolous
position in the appeal. For purposes of this subsection:
(a) Collection of taxes, interest or penalties will be
jeopardized if the taxpayer designs quickly to depart from the
state or to remove the taxpayer's property from the state, or to
do any other act tending to prejudice or to render wholly or
partially ineffectual proceedings to collect the tax.
(b) A taxpayer's position in an appeal is frivolous if that
position is of the kind described in ORS 316.992 (5).
(3) No proceeding for the apportionment, levy or collection of
taxes on any property shall be stayed by the taking or pendency
of any appeal to the tax court, or from an order of the county
board of property tax appeals or the Oregon Tax Court, unless the
assessor or tax collector either as a party to the suit or an
intervenor, requests a stay and it appears to the satisfaction of
the court that a substantial public interest requires the
issuance of a stay.
(4) The tax court may, as a condition of a stay, require the
posting of a bond sufficient to guarantee payment of the tax.
Payment of taxes while appeal is pending shall not operate as a
waiver of the appeal or of a right to refund of taxes found to be
excessively charged or assessed.
SECTION 150. ORS 305.850 is amended to read:
305.850. (1) Notwithstanding any provision to the contrary in
ORS 9.320 and 305.610, the Director of the Department of Revenue
may engage the services of a collection agency to collect any
taxes, interest and penalties resulting from an assessment of
taxes or additional taxes imposed by ORS chapter 118, 310, 314,
316, 317, 318, 321 or 323 or ORS 320.005 to 320.150 { + or the
Sales and Use Tax Law + } and any other tax laws administered by
the Department of Revenue. The director may engage the services
of a collection agency by entering into an agreement to pay
reasonable charges on a contingent fee or other basis.
(2) The director shall cause to be collected, in the same
manner as provided in subsection (1) of this section,
assessments, taxes and penalties due under ORS chapter 656. All
amounts collected pursuant to this subsection shall be credited
as provided in ORS 293.250.
(3) The director may assign to the collection agency, for
collection purposes only, any of the taxes, penalties, interest
and moneys due the state.
(4) The collection agency may bring such action or take such
proceedings, including but not limited to attachment and
garnishment proceedings, as may be necessary.
SECTION 151. ORS 305.895 is amended to read:
305.895. (1) Except as provided in ORS 314.440 or other
jeopardy assessment procedure, the Department of Revenue shall
take no action against a taxpayer's or transferee's real or
personal property before issuing a warrant for the collection of
tax or an amount payable by a transferee under ORS 311.695 as
provided in ORS 314.430, 320.080, 321.570, 323.390, 323.610 and
324.190.
(2) At least 30 days before issuing a warrant for collection of
any tax collected by the department or any amount payable under
ORS 311.695, the department shall send the taxpayer or transferee
a written notice and demand for payment. The notice shall:
(a) Be sent by mail, addressed to the taxpayer or transferee at
the taxpayer's or transferee's last-known address.
(b) Inform the taxpayer or transferee that, even if the
taxpayer or transferee is compliant with an installment agreement
between the taxpayer or transferee and the department and is in
communication with the department, if the tax or any portion of
the tax or the amount payable under ORS 311.695 is not paid
within 30 days after the date of the notice and demand for
payment, a warrant may be issued and recorded as provided in ORS
314.430, 320.080, 321.570, 323.390, 323.610 and 324.190.
(c) Describe in clear nontechnical terms the legal authority
for the warrant.
(d) Contain the name, office mailing address and office
telephone number of the person issuing the warrant and advise the
taxpayer or transferee that questions or complaints concerning
the warrant, other than liability for the underlying tax or
amount payable under ORS 311.695, may be directed to that person.
(e) Include alternatives available to the taxpayer or
transferee that would prevent issuance of the warrant.
(f) Inform the taxpayer or transferee of possible consequences
to the taxpayer or transferee of noncompliance, and of issuance
of a warrant, including garnishment of wages or bank accounts and
seizure and sale of real or personal property.
{ + (3) As used in this section, 'taxpayer' includes any
person required under the Sales and Use Tax Law to remit taxes to
the Department of Revenue. + }
SECTION 152. ORS 731.840 is amended to read:
731.840. (1) The retaliatory tax imposed upon a foreign or
alien insurer under ORS 731.854 and 731.859, or the corporate
excise tax imposed upon a foreign or alien insurer under ORS
chapter 317, is in lieu of all other state taxes upon premiums,
taxes upon income, franchise or other taxes measured by income
that might otherwise be imposed upon the foreign or alien insurer
except the fire insurance premiums tax imposed under ORS 731.820,
the tax imposed upon wet marine and transportation insurers under
ORS 731.824 and 731.828, and the assessment imposed under ORS
743.961. However, all real and personal property, if any, of the
insurer shall be listed, assessed and taxed the same as real and
personal property of like character of noninsurers. Nothing in
this subsection shall be construed to preclude the imposition of
the assessments imposed under ORS 656.612 upon a foreign or alien
insurer.
(2) Subsection (1) of this section applies to a reciprocal
insurer and its attorney in its capacity as such.
(3) Subsection (1) of this section applies to foreign or alien
title insurers and to foreign or alien wet marine and
transportation insurers issuing policies and subject to taxes
referred to in ORS 731.824 and 731.828.
(4) The State of Oregon hereby preempts the field of regulating
or of imposing excise, privilege, franchise, income, license,
permit, registration, and similar taxes, licenses and fees upon
insurers and their insurance producers and other representatives
as such, and:
(a) No county, city, district, or other political subdivision
or agency in this state shall so regulate, or shall levy upon
insurers, or upon their insurance producers and representatives
as such, any such tax, license or fee; except that whenever a
county, city, district or other political subdivision levies or
imposes generally on a nondiscriminatory basis throughout the
jurisdiction of the taxing authority a payroll, excise or income
tax, as otherwise provided by law, such tax may be levied or
imposed upon domestic insurers; and
(b) No county, city, district, political subdivision or agency
in this state shall require of any insurer, insurance producer or
representative, duly authorized or licensed as such under the
Insurance Code, any additional authorization, license, or permit
of any kind for conducting therein transactions otherwise lawful
under the authority or license granted under this code.
{ + (5)(a) The gross amount of premiums, as defined in ORS
731.808, received by a foreign, alien or domestic insurer or
health or legal care service contractor is not subject to the
taxes imposed under the Sales and Use Tax Law.
(b) Notwithstanding paragraph (a) of this subsection, an
insurer or health or legal care service contractor is not exempt
from liability for taxes imposed under the Sales and Use Tax Law
with respect to retail sales or purchases of tangible personal
property by the insurer or health or legal care service
contractor. + }
SECTION 153. ORS 801.040 is amended to read:
801.040. This section describes circumstances where special
provisions are made concerning the authority of cities, counties
or other political subdivisions in relation to some portion of
the vehicle code. This section is not the only section of the
vehicle code that applies to such authority and shall not be
interpreted to affect the vehicle code except as specifically
provided in this section. The following limits are partial or
complete as described:
(1) No county, municipal or other local body with authority to
adopt and administer local police regulations under the
Constitution and laws of this state shall enact or enforce any
rule or regulation in conflict with the provisions of the vehicle
code described in this subsection except as specifically
authorized in the vehicle code. This subsection applies to the
provisions of the vehicle code relating to abandoned vehicles,
vehicle equipment, regulation of vehicle size, weight and load,
the manner of operation of vehicles and use of roads by persons,
animals and vehicles.
(2) Except as provided in ORS 822.230 and this subsection, no
city, county or other political subdivisions shall regulate or
require or issue any registration, licenses, permits or surety
bonds or charge any fee for the regulatory or surety registration
of any person required to obtain a certificate from the
Department of Transportation under ORS 822.205. This subsection
does not:
(a) Limit any authority of a city or county to license and
collect a general and nondiscriminatory license fee levied upon
all businesses or to levy a tax based upon business conducted by
any person within the city or county.
(b) Limit the authority of any city or county to impose any
requirements or conditions as part of any contract to perform
towing or recovering services for the city or county.
(c) Limit the authority of any city or county to impose
requirements and conditions that govern the towing of a vehicle
by a towing business under ORS 98.812 so long as those
requirements and conditions are consistent with the provisions of
ORS 822.230.
(3) No city, county or other political subdivision of this
state, nor any state agency, may adopt a regulation or ordinance
that imposes a special fee for the use of public lands or waters
by snowmobiles or Class I all-terrain vehicles, or for the use of
any access thereto that is owned by or under the jurisdiction of
either the United States, this state or any such city, county or
other political subdivision. The registration fees provided by
ORS 821.320 are in lieu of any personal property { - or
excise - } tax imposed on snowmobiles by this state or any
political subdivision. No city, county or other municipality,
and no state agency shall impose any other registration or
license fee on any snowmobile in this state. This subsection does
not prohibit any city, county or other political subdivision, or
any state agency from regulating the operation of snowmobiles or
Class I all-terrain vehicles on public lands, waters and other
properties under its jurisdiction and on streets or highways
within its boundaries by adopting regulations or ordinances of
its governing body if such regulations are not inconsistent with
ORS 821.150 to 821.292.
(4) The provisions of ORS 819.110 to 819.215 relating to towing
of vehicles that are abandoned establish minimum requirements
subject to the following:
(a) Notwithstanding paragraph (b) of this subsection, a county
or incorporated city may supersede such provisions by ordinance
or charter provision.
(b) Any road authority described under ORS 810.010 may adopt
rules or procedures that do not conflict with such provisions to
provide for additional protection for the owner or person with an
interest in a vehicle subject to such provisions or that more
quickly accomplish the procedures established under such
provisions.
(5) Any incorporated city may by ordinance require that the
driver of a vehicle involved in an accident file with a
designated city department a copy of any report required to be
filed under ORS 811.725. All such reports shall be for the
confidential use of the city department but subject to the same
requirements for release of such reports as provided for the
release of such reports by the department under ORS 802.220 and
802.240.
(6) Except as otherwise specifically provided in this section,
in accordance with the provisions of ORS 801.041, the governing
body of a county may establish by ordinance registration fees for
vehicles registered at a residence or business address within the
county.
(7) Except as otherwise specifically provided in this section,
in accordance with the provisions of ORS 801.042, the governing
body of a district may establish by ordinance registration fees
for vehicles registered at a residence or business address within
the district.
SECTION 154. ORS 802.110 is amended to read:
802.110. Any procedures the Department of Transportation
establishes for financial administration of those functions of
the department dealing with driver and motor vehicle services and
for the disposition and payment of moneys it receives from the
provision of driver and motor vehicle services shall comply with
all of the following:
(1) The department shall deposit all moneys it receives related
to driver and motor vehicle services in the Department of
Transportation Driver and Motor Vehicle Suspense Account for
approved expenses and disbursals before payment of general
administrative expenses of the department related to the
provision of driver and motor vehicle services. Notwithstanding
this subsection, the department may return a bank check or money
order when received in incorrect or incomplete form or when not
accompanied by the proper application { + , unless the check or
money order is presented in partial or complete payment of the
use tax imposed under section 22 of this 2013 Act. Any bank check
or money order received by the department that is in any part
presented for payment of sales tax or use tax liability pursuant
to section 42, 44 or 60 of this 2013 Act shall be retained by the
department. A receipt shall be given for the retained check or
money order + }.
(2) The department shall pay the following approved expenses
and disbursals from the Department of Transportation Driver and
Motor Vehicle Suspense Account before payment of the general
administrative expenses of the department related to driver and
motor vehicle services:
(a) Refunds authorized by any statute administered by the
department when such refunds are approved by the department.
(b) Amounts transferred to the State Treasurer under ORS
319.410 (2) for the purpose of carrying out the state aviation
laws, amounts transferred to the Boating Safety, Law Enforcement
and Facility Account by ORS 319.415, amounts transferred to the
State Aviation Account by ORS 319.417 and amounts transferred to
the Department of Transportation Operating Fund by ORS 184.643.
(c) After deduction of expenses of collection, transfer and
administration, the department shall pay moneys collected from
the Student Driver Training Fund eligibility fee under ORS
807.040, 807.150 and 807.370 to the State Treasurer for deposit
in the Student Driver Training Fund. The moneys deposited in the
Student Driver Training Fund under this paragraph are
continuously appropriated to the department for the following
purposes:
(A) To the extent of not more than 10 percent of the amount
transferred into the Student Driver Training Fund in any
biennium, to pay the expenses of administering ORS 336.795,
336.800, 336.805, 336.810 (2) and 336.815.
(B) The remaining moneys, for reimbursing school districts and
commercial driver training schools as provided under ORS 336.805.
(d) After deduction of expenses of collection, transfer and
administration, the department shall pay moneys collected for the
Motorcycle Safety Subaccount under ORS 807.170 to the State
Treasurer for deposit in the Motorcycle Safety Subaccount of the
Transportation Safety Account. Moneys paid to the State Treasurer
under this paragraph shall be used for the purpose of ORS
802.320.
(e) After deduction of expenses for the administration of the
issuance of customized registration plates under ORS 805.240, the
department shall place moneys received from the sale of
customized registration plates in the Passenger Rail
Transportation Account. The moneys placed in the account are
continuously appropriated to the department and shall be used for
the payment of expenses incurred in administering passenger rail
programs.
(f) After deduction of expenses of collection, transfer and
administration, the department shall pay moneys from any
registration fees established by the governing bodies of counties
or a district, as defined in ORS 801.237, under ORS 801.041 or
801.042 to the appropriate counties or districts. The department
shall make the payments on at least a monthly basis unless
another basis is established by the intergovernmental agreements
required by ORS 801.041 and 801.042 between the department and
the governing bodies of a county or a district.
(g) After deducting the expenses of the department in
collecting and transferring the moneys, the department shall make
disbursals and payments of moneys collected for or dedicated to
any other purpose or fund except the State Highway Fund,
including but not limited to, payments to the Department of
Transportation Operating Fund established by ORS 184.642 (1) and
(2).
{ + (h) After deducting the actual expenses of the department
in collecting the use tax imposed under section 22 of this 2013
Act, the department shall transfer the use tax moneys collected
under section 44 of this 2013 Act to the State Highway Fund. + }
(3) The department shall refund from the Department of
Transportation Driver and Motor Vehicle Suspense Account any
excess or erroneous payment to a person who made the payment or
to the person's legal representative when the department
determines that money has been received by it in excess of the
amount legally due and payable or that it has received money in
which it has no legal interest. Refunds payable under this
subsection are continuously appropriated for such purposes in the
manner for payment of refunds under this section. If the
department determines that a refund is due, the department may
refund the amount of excess or erroneous payment without a claim
being filed. Except as provided in ORS 319.290, 319.375, 319.820
and 319.831, any claim for a refund from the department must be
filed within 12 months after the date payment is received by the
department.
(4) After payment of those expenses and disbursals approved for
payment before general administrative expenses related to the
provision of driver and motor vehicle services, the department
shall pay from the Department of Transportation Driver and Motor
Vehicle Services Administrative Account its general
administrative expenses incurred in the administration of any law
related to driver and motor vehicle services that the department
is charged with administering and any other expenses the
department is permitted by law to pay from moneys held by the
department before transfer of the moneys to the State Highway
Fund. The following limitations apply to payments of
administrative expenses under this subsection:
(a) The department shall make payment of the expenses of
administering the issuance of winter recreation parking permits
under ORS 811.595 from those moneys received from issuing the
permits.
(b) The department shall pay its expenses for administering the
registration and titling of snowmobiles under ORS 821.060 and
821.100 from the fees collected from administering those
sections. The department shall also pay its expenses for the
administration of the snowmobile driver permit program under ORS
821.160 from the moneys otherwise described in this paragraph.
(c) The department shall pay its expenses for determining the
amount of money to be withheld under ORS 802.120 from the fees
collected for administering the registration and titling of
snowmobiles. The amount used to pay expenses under this paragraph
shall be such sum as necessary but shall not exceed $10,000
during each biennium.
(d) The department shall retain not more than $15,000 in any
biennium for the expenses of collecting and transferring moneys
to the Student Driver Training Fund under this section and for
the administration of ORS 336.810 (3).
(5) Except as otherwise provided in this subsection, the
department shall transfer to the State Highway Fund the moneys
not used for payment of the general administrative expenses or
for approved expenses and disbursals before payment of general
administrative expenses. The following apply to this subsection:
(a) If the Director of Transportation certifies the amount of
principal or interest of highway bonds due on any particular
date, the department may make available for the payment of such
interest or principal any sums that may be necessary to the
extent of moneys on hand available for the State Highway Fund
regardless of the dates otherwise specified under this section.
(b) Notwithstanding paragraph (a) of this subsection the
department shall not make available for purposes described in
paragraph (a) of this subsection any moneys described in ORS
367.605 when there are not sufficient amounts of such moneys in
the State Highway Fund for purposes of bonds issued under ORS
367.615.
(6) Notwithstanding any other provision of this section, the
following moneys shall be transferred to the State Highway Fund
at the times described:
(a) Moneys received under ORS 802.120 and not used for the
payment of administrative expenses of the department shall be
transferred before July 31 of each year.
(b) Moneys received from the registration of snowmobiles that
is not to be used for payment of administrative expenses of the
department shall be transferred within 30 days after the end of
the quarter.
(c) Moneys received from the issuance of winter recreation
parking permits that is not used for payment of administrative
expenses of the department shall be transferred within 30 days
after the end of the quarter.
(7) The following moneys transferred to the State Highway Fund
under this section may be used only for the purposes described as
follows:
(a) Moneys collected from the issuance of winter recreation
parking permits, and the interest on such moneys, shall be used
to enforce the requirement for winter recreation parking permits
and to remove snow from winter recreation parking locations
designated under ORS 810.170. Any remaining moneys shall, upon
approval by the Winter Recreation Advisory Committee:
(A) Be used to maintain parking locations developed with moneys
obtained under ORS 810.170 and snowmobile facilities that are
parking lots developed with moneys as provided under this
section;
(B) Be used to develop additional winter recreation parking
locations under ORS 810.170; or
(C) Be carried over to be used in subsequent years for the
purposes and in the manner described in this paragraph.
(b) Moneys received from the registration of snowmobiles or
under ORS 802.120 may be used for development and maintenance of
multiuse trails within urban growth boundaries described in ORS
367.017 or for the development and maintenance of snowmobile
facilities, including the acquisition of land therefor by any
means other than the exercise of eminent domain. Moneys received
under ORS 802.120 may also be used for the enforcement of ORS
811.590, 821.100 to 821.120, 821.140, 821.150, 821.190, 821.210
and 821.240 to 821.290.
(8) The department shall maintain the Revolving Account for
Emergency Cash Advances separate from other moneys described in
this section. From the account, the department may pay for the
taking up of dishonored remittances returned by banks or the
State Treasurer and for emergency cash advances to be
subsequently reimbursed. The account shall be used only as a
revolving fund. The department shall at all times be accountable
for the amount of the account, either in cash or unreimbursed
items and advances. The moneys in the account are continuously
appropriated for the purposes of this subsection. The amount of
the account under this subsection shall not exceed $40,000 from
moneys received by the department in the performance of its
driver and motor vehicle services functions and moneys otherwise
appropriated for purposes of this subsection. The account under
this subsection shall be kept on deposit with the State
Treasurer. The State Treasurer is authorized to honor and pay all
properly signed and indorsed checks or warrants drawn against the
account.
SECTION 155. ORS 803.585 is amended to read:
803.585. (1) Except as otherwise provided in this section or
ORS 801.041 or 801.042, the registration fees under the vehicle
code are in lieu of all other taxes and licenses, except
{ + taxes imposed under the Sales and Use Tax Law or + }
municipal license fees under regulatory ordinances, to which such
vehicles or the owners thereof may be subject. Fixed load
vehicles are not exempt from ad valorem taxation by this section.
(2) Travel trailers subject to registration and titling under
the vehicle code are not subject to ad valorem taxation, but may
be reclassified as manufactured structures and made subject to
taxation as provided in ORS 308.880.
SECTION 156. ORS 305.380 is amended to read:
305.380. As used in ORS 305.385:
(1) 'Agency' means any department, board, commission, division
or authority of the State of Oregon, or any political subdivision
of this state which imposes a local tax administered by the
Department of Revenue under ORS 305.620.
(2) 'License' means any written authority required by law or
ordinance as a prerequisite to the conduct of a business, trade
or profession.
(3) 'Provider' means any person who contracts to supply goods,
services or real estate space to an agency.
(4) 'Tax' means a state tax imposed by ORS 320.005 to 320.150
and 403.200 to 403.250 and ORS chapters 118, 314, 316, 317, 318,
321 and 323 and { + the Sales and Use Tax Law, + } the elderly
rental assistance program under ORS 310.630 to 310.706 and local
taxes administered by the Department of Revenue under ORS
305.620.
{ +
INCOME TAX REDUCTION + }
SECTION 157. ORS 316.037 is amended to read:
316.037. (1)(a) A tax is imposed for each taxable year on the
entire taxable income of every resident of this state. The amount
of the tax shall be determined in accordance with the following
table:
_________________________________________________________________
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
If taxable income is:The tax is:
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
{ -
Not over $2,000 5% of - }
{ +
Not over $2,000 2% of + }
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
taxable
income
Over $2,000 but not
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
{ -
over $5,000$100 plus 7% - }
{ +
over $11,800$ 40 plus 4% + }
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
of the excess
over $2,000
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
{ -
Over $5,000 but not - }
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
{ -
over $125,000$310 plus 9% - }
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
{ -
of the excess - }
{ -
over $5,000 - }
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
{ +
Over $11,800 $432 plus 6% + }
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
{ +
of the excess
over $11,800 + }
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
{ -
Over $125,000 $11,110 plus 9.9% - }
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
{ -
of the excess - }
{ -
over $125,000 - }
____________________________________________________________
END OF POSSIBLE IRREGULAR TABULAR TEXT
____________________________________________________________
_________________________________________________________________
(b) For tax years beginning in each calendar year, the
Department of Revenue shall adopt a table that shall apply in
lieu of the table contained in paragraph (a) of this subsection,
as follows:
(A) Except as provided in subparagraph (D) of this paragraph,
the minimum and maximum dollar amounts for each bracket for which
a tax is imposed shall be increased by the cost-of-living
adjustment for the calendar year.
(B) The rate applicable to any rate bracket as adjusted under
subparagraph (A) of this paragraph shall not be changed.
(C) The amounts setting forth the tax, to the extent necessary
to reflect the adjustments in the rate brackets, shall be
adjusted.
{ - (D) The rate brackets applicable to taxable income in
excess of $125,000 may not be adjusted. - }
(c) For purposes of paragraph (b) of this subsection, the
cost-of-living adjustment for any calendar year is the percentage
(if any) by which the monthly averaged U.S. City Average Consumer
Price Index for the 12 consecutive months ending August 31 of the
prior calendar year exceeds the monthly averaged index for the
second quarter of the calendar year 1992.
(d) As used in this subsection, 'U.S. City Average Consumer
Price Index' means the U.S. City Average Consumer Price Index for
All Urban Consumers (All Items) as published by the Bureau of
Labor Statistics of the United States Department of Labor.
(e) If any increase determined under paragraph (b) of this
subsection is not a multiple of $50, the increase shall be
rounded to the next lower multiple of $50.
(2) A tax is imposed for each taxable year upon the entire
taxable income of every part-year resident of this state. The
amount of the tax shall be computed under subsection (1) of this
section as if the part-year resident were a full-year resident
and shall be multiplied by the ratio provided under ORS 316.117
to determine the tax on income derived from sources within this
state.
(3) A tax is imposed for each taxable year on the taxable
income of every full-year nonresident that is derived from
sources within this state. The amount of the tax shall be
determined in accordance with the table set forth in subsection
(1) of this section.
SECTION 158. { + Section 159 of this 2013 Act is added to and
made a part of ORS chapter 316. + }
SECTION 159. { + There shall be subtracted from federal
taxable income an amount equal to 50 percent of any amount that
is treated as net capital gain for federal tax purposes for the
tax year and that is includable in taxable income in this state
for the tax year. + }
SECTION 160. { + Section 159 of this 2013 Act and the
amendments to ORS 316.037 by section 157 of this 2013 Act apply
to tax years beginning on or after January 1, 2016. + }
SECTION 161. ORS 315.266 is amended to read:
315.266. (1) In addition to any other credit available for
purposes of ORS chapter 316, an eligible resident individual
shall be allowed a credit against the tax otherwise due under ORS
chapter 316 for the tax year in an amount equal to { - six - }
{ + 25 + } percent of the earned income credit allowable to the
individual for the same tax year under section 32 of the Internal
Revenue Code.
(2) An eligible nonresident individual shall be allowed the
credit computed in the same manner and subject to the same
limitations as the credit allowed a resident by subsection (1) of
this section. However, the credit shall be prorated using the
proportion provided in ORS 316.117.
(3) If a change in the taxable year of a taxpayer occurs as
described in ORS 314.085, or if the Department of Revenue
terminates the taxpayer's taxable year under ORS 314.440, the
credit allowed by this section shall be prorated or computed in a
manner consistent with ORS 314.085.
(4) If a change in the status of a taxpayer from resident to
nonresident or from nonresident to resident occurs, the credit
allowed by this section shall be determined in a manner
consistent with ORS 316.117.
(5) If the amount allowable as a credit under this section,
when added to the sum of the amounts allowable as payment of tax
under ORS 316.187 or 316.583, other tax prepayment amounts and
other refundable credit amounts, exceeds the taxes imposed by ORS
chapters 314 and 316 for the tax year after application of any
nonrefundable credits allowable for purposes of ORS chapter 316
for the tax year, the amount of the excess shall be refunded to
the taxpayer as provided in ORS 316.502.
(6) The Department of Revenue may adopt rules for purposes of
this section, including but not limited to rules relating to
proof of eligibility and the furnishing of information regarding
the federal earned income credit claimed by the taxpayer for the
tax year.
(7) Refunds attributable to the earned income credit allowed
under this section shall not bear interest.
SECTION 162. { + The amendments to ORS 315.266 by section 161
of this 2013 Act apply to tax years beginning on or after January
1, 2015, and before January 1, 2021. + }
SECTION 163. { + ORS 315.266 applies to tax years beginning
before January 1, 2021. + }
SECTION 164. { + Sections 5 and 6, chapter 880, Oregon Laws
2007, are repealed. + }
SECTION 165. { + Section 166 of this 2013 Act is added to and
made a part of ORS chapter 315. + }
SECTION 166. { + (1) A credit against taxes that are otherwise
due under ORS chapter 316 (or, if the taxpayer is a corporation,
under ORS chapter 317 or 318) is allowed to a taxpayer that
during the tax year makes an investment in a capital asset that
is used in the taxpayer's business and is placed in service
during the tax year. The credit under this section may not be
allowed for investment in replacement property. The amount of the
credit allowed under this section shall equal 10 percent of the
amount invested and may not exceed $1 million for the tax year.
(2) Prior to claiming the credit allowed under this section, a
taxpayer is required to receive written certification of
eligibility for the credit from the Director of the Oregon
Business Development Department.
(3) If the amount allowable as a credit under this section,
when added to the sum of the amounts allowable as payment of
estimated tax under ORS 314.505 or 316.583, payment of
withholding under ORS 316.187, other tax prepayment amounts and
other refundable credit amounts, exceeds the taxes imposed by ORS
chapter 314 and ORS chapter 316, 317 or 318 for the tax year
(reduced by any nonrefundable credits allowable for purposes of
ORS chapter 316, 317 or 318 for the tax year), the amount of the
excess shall be refunded to the taxpayer as provided in ORS
314.415 or 316.502.
(4) A nonresident shall be allowed the credit under this
section. The credit shall be computed in the same manner and be
subject to the same limitations as the credit granted to a
resident. However, the credit shall be prorated using the
proportion provided in ORS 316.117.
(5) If a change in the taxable year of the taxpayer occurs as
described in ORS 314.085, or if the Department of Revenue
terminates the taxpayer's taxable year under ORS 314.440, the
credit allowed by this section shall be prorated or computed in a
manner consistent with ORS 314.085.
(6) If a change in the status of a taxpayer from resident to
nonresident or from nonresident to resident occurs, the credit
allowed by this section shall be determined in a manner
consistent with ORS 316.117.
(7) The Oregon Business Development Department, after
consultation with the Department of Revenue, shall adopt rules to
implement this section, including policies and procedures for
certifying taxpayers as eligible for the credit allowed under
this section as provided in subsection (2) of this section. + }
SECTION 167. { + Section 166 of this 2013 Act applies to
investments made in tax years beginning on or after January 1,
2016. + }
SECTION 168. { + (1) The total amount that is certified by the
Oregon Business Development Department for a tax credit allowed
under section 166 of this 2013 Act in any tax year may not exceed
$1 million for any taxpayer.
(2) The department shall determine the dollar amount certified
for any taxpayer and the priority between applications for
certification based upon the criteria established by the
department by rule. + }
SECTION 169. { + The total amount of potential tax credits for
all taxpayers certified under section 166 of this 2013 Act may
not, at the time of certification under section 166 of this 2013
Act, exceed $50 million for any tax year. + }
SECTION 170. ORS 314.752 is amended to read:
314.752. (1) Except as provided in ORS 314.740 (5)(b), the tax
credits allowed or allowable to a C corporation for purposes of
ORS chapter 317 or 318 shall not be allowed to an S corporation.
The business tax credits allowed or allowable for purposes of ORS
chapter 316 shall be allowed or are allowable to the shareholders
of the S corporation.
(2) In determining the tax imposed under ORS chapter 316, as
provided under ORS 314.734, on income of the shareholder of an S
corporation, there shall be taken into account the shareholder's
pro rata share of business tax credit (or item thereof) that
would be allowed to the corporation (but for subsection (1) of
this section) or recapture or recovery thereof. The credit (or
item thereof), recapture or recovery shall be passed through to
shareholders in pro rata shares as determined in the manner
prescribed under section 1377(a) of the Internal Revenue Code.
(3) The character of any item included in a shareholder's pro
rata share under subsection (2) of this section shall be
determined as if such item were realized directly from the source
from which realized by the corporation, or incurred in the same
manner as incurred by the corporation.
(4) If the shareholder is a nonresident and there is a
requirement applicable for the business tax credit that in the
case of a nonresident the credit be allowed in the proportion
provided in ORS 316.117, then that provision shall apply to the
nonresident shareholder.
(5) As used in this section, 'business tax credit' means a tax
credit granted to personal income taxpayers to encourage certain
investment, to create employment, economic opportunity or
incentive or for charitable, educational, scientific, literary or
public purposes that is listed under this subsection as a
business tax credit or is designated as a business tax credit by
law or by the Department of Revenue by rule and includes but is
not limited to the following credits: ORS 285C.309 (tribal taxes
on reservation enterprise zones and reservation partnership
zones), ORS 315.104 (forestation and reforestation), ORS 315.138
(fish screening, by-pass devices, fishways), ORS 315.141 (biomass
production for biofuel), ORS 315.156 (crop gleaning), ORS 315.164
and 315.169 (farmworker housing), ORS 315.204 (dependent care
assistance), ORS 315.208 (dependent care facilities), ORS 315.213
(contributions for child care), ORS 315.304 (pollution control
facility), ORS 315.326 (renewable energy development
contributions), ORS 315.331 (energy conservation projects), ORS
315.336 (transportation projects), ORS 315.341 (renewable energy
resource equipment manufacturing facilities), ORS 315.354 and
469B.151 (energy conservation facilities), ORS 315.507
(electronic commerce), ORS 315.533 (low income community jobs
initiative) and ORS 317.115 (fueling stations necessary to
operate an alternative fuel vehicle) { + and section 166 of this
2013 Act (investment in business) + }.
SECTION 171. ORS 318.031 is amended to read:
318.031. It being the intention of the Legislative Assembly
that this chapter and ORS chapter 317 shall be administered as
uniformly as possible (allowance being made for the difference in
imposition of the taxes), ORS 305.140 and 305.150, ORS chapter
314 and the following sections are incorporated into and made a
part of this chapter: ORS 285C.309, 315.104, 315.141, 315.156,
315.204, 315.208, 315.213, 315.304, 315.326, 315.331, 315.336,
315.507 and 315.533 { + and section 166 of this 2013 Act
+ }(all only to the extent applicable to a corporation) and ORS
chapter 317.
{ +
PROPERTY TAX EXEMPTION + }
SECTION 172. { + Section 173 of this 2013 Act is added to and
made a part of ORS chapter 307. + }
SECTION 173. { + (1)(a) Notwithstanding any other provision of
law, the first $50,000 of assessed value of a homestead as
defined in ORS 311.666 is exempt from all ad valorem property
taxation.
(b) The exemption under this section is in addition to any
other partial exemption or special assessment applicable to a
taxpayer's homestead.
(2)(a) Before allowing an exemption under this section for the
current property tax year, the assessor of the county in which
residential property is located may, pursuant to rules adopted by
the Department of Revenue, require the taxpayer for the property
to provide information necessary to substantiate that the
property is the taxpayer's homestead.
(b) Failure to provide the information requested under
paragraph (a) of this subsection within 30 days after the request
is sent shall result in the property being taxed as property that
is not a homestead for purposes of this section until such time
as the taxpayer provides information to the assessor
substantiating that the property is the taxpayer's homestead.
(c) A taxpayer aggrieved by the taxation of property without
the exemption allowable under this section may appeal to the tax
court in the manner provided under ORS 305.280 and 305.560. + }
SECTION 174. { + Sections 175 and 176 of this 2013 Act are
added to and made a part of ORS chapter 311. + }
SECTION 175. { + (1) Whenever the county assessor discovers,
receives credible information or has reason to believe that
property located in the county that was allowed an exemption
under section 173 of this 2013 Act was not the taxpayer's
homestead for any property tax years not exceeding five years
prior to the last certified roll, the assessor shall give notice
as provided in subsection (2) of this section. If the tax
collector discovers, receives credible information or has reason
to believe that property allowed an exemption under section 173
of this 2013 Act was not the taxpayer's homestead, the tax
collector shall immediately bring this to the attention of the
assessor by written notice.
(2)(a) In the circumstances described in subsection (1) of this
section, the assessor shall give notice to the taxpayer for the
property that the property:
(A) Is not eligible for the exemption under section 173 of this
2013 Act; and
(B) Shall be assessed for the value of the exemption for the
number of prior property tax years determined under subsection
(1) of this section, plus interest under section 176 (3) of this
2013 Act, if any.
(b) The notice required under this subsection shall:
(A) Be in writing;
(B) Be mailed to the address of the property; and
(C) Require the taxpayer to appear at a specified time, not
less than 20 days after mailing the notice, and to show cause, if
any, why the property should be taxed as the taxpayer's
homestead.
(3)(a) If the taxpayer notified pursuant to subsection (2) of
this section does not appear or fails to show cause why the
property should be taxed as the taxpayer's homestead, the
assessor shall proceed to correct the assessment or tax rolls on
which the property was listed as the taxpayer's homestead.
(b) The assessor shall extend on the tax rolls the difference
in the amount of property taxes that should have been imposed on
the property and the amount of property taxes actually imposed on
the property for each year the property was taxed as the
taxpayer's homestead.
(c) To carry out the correction of the tax rolls, the assessor
shall send a written statement to the tax collector instructing
the tax collector to make the necessary changes on the tax rolls.
The statement shall contain all information needed by the tax
collector to make the changes in the tax rolls and shall be dated
and signed by the assessor or the deputy of the assessor. As
soon as practicable after receipt of the statement, the tax
collector shall then correct the tax rolls.
(4) Immediately after the assessor corrects the assessment or
tax rolls, the assessor shall file in the office of the assessor
a statement of the facts or evidence on which the assessor based
the correction and notify the taxpayer by written notice, sent by
first class mail to the taxpayer's last-known address, of:
(a) The date and amount of the correction, including interest
under section 176 (3) of this 2013 Act, if any;
(b) An explanation of the collection procedures applicable to
the correction; and
(c) An explanation of the taxpayer's right to appeal under
subsection (6) of this section and the procedures for making the
appeal.
(5) To enable the assessor to comply with this section, the
assessor is invested with all the powers of the county clerk
under the law in force during the years for which correction may
be made under this section and thereafter.
(6) A taxpayer aggrieved by an assessment made under this
section may appeal to the tax court in the manner provided under
ORS 305.280 and 305.560.
(7) Taxes imposed under this section shall be deemed imposed in
the property tax years for which the property was improperly
taxed as the taxpayer's homestead. A correction of the tax roll
in the year in which it is discovered that the property was
improperly taxed as the taxpayer's homestead shall not be
considered in making the determination of the amount of tax
imposed in calculating the tax limitations under Article XI,
section 11b, of the Oregon Constitution, in that year. + }
SECTION 176. { + (1) Additional taxes imposed under section
175 of this 2013 Act shall be added to the tax extended against
the property on the general property tax roll for the tax year
following the current tax year, to be collected and distributed
in the same manner as other ad valorem property taxes imposed on
the property.
(2) Notwithstanding ORS 311.226, for purposes of collection and
enforcement, the additional taxes added to the roll under this
section shall be considered delinquent as of the date the other
taxes for the year in which the additional taxes are added to the
roll become delinquent.
(3) When it appears to the satisfaction of the assessor that
the taxation of the property as the taxpayer's homestead was due
to a willful attempt by the taxpayer to evade the payment of
taxes on the property, the assessor shall advise the tax
collector and interest at the rate provided in ORS 311.505 (2)
shall be added to the amounts charged, computed from the dates
that payment of the charges were properly due and continuing to
run until payment of the charges.
(4) Additional taxes arising under section 175 of this 2013 Act
may be paid to the tax collector prior to the completion of the
next general property tax roll, pursuant to ORS 311.370.
(5) For purposes of this section, 'additional taxes ' includes
increases in taxes that have already been extended on the
roll. + }
SECTION 177. ORS 311.250 is amended to read:
311.250. (1) Except as to real property assessed to 'unknown
owners' pursuant to ORS 308.240 (2), on or before October 25 in
each year, the tax collector shall deliver or mail to each person
(as defined in ORS 311.605) shown on the tax roll as an owner of
real or personal property, or to an agent or representative
authorized in writing pursuant to ORS 308.215 by such person, a
written statement of property taxes payable on the following
November 15.
(2) The failure of a taxpayer to receive the statement
described in this section shall not invalidate any assessment,
levy, tax, or proceeding to collect tax.
(3) The tax collector shall not be liable for failure to
deliver or mail the tax statements by October 25 as provided in
subsection (1) of this section if such failure was caused by not
receiving the tax roll from the assessor by the time provided by
law or by reason of any other circumstance beyond the control of
the tax collector. In such case the tax collector shall deliver
or mail the statements as soon as possible.
(4) Where, for any reason the taxes due on any property on the
assessment roll in any year cannot be ascertained from the tax
roll by November 5 of that year, within 15 days thereafter the
owner or other person liable for or desiring to pay the taxes on
such property may tender to the tax collector, and the tax
collector may collect, a payment of all or part of the taxes
estimated by the tax collector to be due on such property.
Immediately after the taxes are actually extended on the tax
roll, the tax collector shall credit the amount paid as provided
by law, allowing the discount under ORS 311.505 and not charging
interest for the amount of taxes satisfied by such payment. Where
there has been an underpayment, additional taxes shall be
collected, and where there has been an overpayment, refund shall
be made as otherwise provided by law.
(5) The tax statement described in this section shall be
designed by the Department of Revenue and shall contain such
information as the department shall prescribe by rule including:
(a) The real market value of the property for which the tax
statement is being prepared (or the property's specially assessed
value if the property is subject to special assessment) for the
current and prior tax year;
(b) The property's assessed value for the current and prior tax
year; { - and - }
(c) The total amount of taxes due on the property { + ; and
(d) Notice that if the amount of taxes due on the property
reflects an exemption for a homestead under section 173 of this
2013 Act and the property is not the taxpayer's owner occupied
principal dwelling, the taxpayer must notify the county assessor
within 30 days after the date on the statement + }.
SECTION 178. { + Sections 172 to 176 of this 2013 Act and the
amendments to ORS 311.250 by section 177 of this 2013 Act apply
to property tax years beginning on or after July 1, 2016. + }
{ +
TECHNICAL PROVISIONS + }
SECTION 179. { + (1) The sales tax imposed under section 11 of
this 2013 Act applies to sales occurring on or after the
operative date of this section.
(2)(a) The sales tax does not apply to sales occurring on or
after the operative date of this section under contracts, leases
or rental agreements that were entered into before the operative
date of this section.
(b) Notwithstanding paragraph (a) of this subsection, the sales
tax applies to sales occurring on or after the date of an
extension or renewal of a contract, lease or rental agreement
described in paragraph (a) of this subsection if the extension or
renewal is entered into on or after the operative date of this
section.
(3) The use tax imposed under section 22 of this 2013 Act
applies to purchases of tangible personal property for storage,
consumption or use occurring on or after the operative date of
this section.
(4)(a) The use tax does not apply to purchases of tangible
personal property for storage, consumption or use that occur on
or after the operative date of this section under contracts,
leases or rental agreements that were entered into before the
operative date of this section.
(b) Notwithstanding paragraph (a) of this subsection, the use
tax applies to purchases occurring on or after the date of an
extension or renewal of a contract, lease or rental agreement
described in paragraph (a) of this subsection if the extension or
renewal is entered into on or after the operative date of this
section.
(5) A lessee, upon extension or renewal of the contract, lease
or rental agreement, shall have the right to make the election
under section 31 of this 2013 Act. + }
SECTION 180. { + (1) Sections 1 to 129, 131 to 144 and 179 of
this 2013 Act and the amendments to ORS 305.130, 305.265,
305.270, 305.280, 305.380, 305.565, 305.850, 305.895, 314.430,
731.840, 801.040, 802.110 and 803.585 by sections 130 and 145 to
156 of this 2013 Act become operative on January 1, 2016.
(2) The Department of Revenue and the Department of
Transportation may take any action before the operative date
specified in subsection (1) of this section that is necessary to
enable the departments to exercise, on and after the operative
date specified in subsection (1) of this section, all the duties,
functions and powers conferred on the departments by sections 1
to 129, 131 to 144 and 179 of this 2013 Act and the amendments to
ORS 305.130, 305.265, 305.270, 305.280, 305.380, 305.565,
305.850, 305.895, 314.430, 731.840, 801.040, 802.110 and 803.585
by sections 130 and 145 to 156 of this 2013 Act.
(3) Notwithstanding subsection (1) of this section, sections 1
to 129, 131 to 144 and 179 of this 2013 Act and the amendments to
ORS 305.130, 305.265, 305.270, 305.280, 305.380, 305.565,
305.850, 305.895, 314.430, 731.840, 801.040, 802.110 and 803.585
by sections 130 and 145 to 156 of this 2013 Act do not become
operative if the State of Oregon has not entered into the
Streamlined Sales and Use Tax Agreement, as defined in section 2
of this 2013 Act, before January 1, 2016. + }
SECTION 181. { + The unit captions used in this 2013 Act are
provided only for the convenience of the reader and do not become
part of the statutory law of this state or express any
legislative intent in the enactment of this 2013 Act. + }
SECTION 182. { + This 2013 Act does not take effect unless the
amendment to the Oregon Constitution proposed by ___ Joint
Resolution ___ (2013) (LC 2864-1) is approved by the people at
the next regular general election held throughout this state.
This 2013 Act takes effect on the effective date of that
constitutional amendment. + }
----------
