Bill Text: OR HB3078 | 2013 | Regular Session | Introduced

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Bill Title: Relating to state finance; prescribing an effective date.

Sponsorship: Committee Bill

Status: (Failed) 2013-07-08 - In committee upon adjournment. [HB3078 Detail]

Download: Oregon-2013-HB3078-Introduced.html

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     77th OREGON LEGISLATIVE ASSEMBLY--2013 Regular Session

NOTE:  Matter within  { +  braces and plus signs + } in an
amended section is new. Matter within  { -  braces and minus
signs - } is existing law to be omitted. New sections are within
 { +  braces and plus signs + } .

LC 1239

                         House Bill 3078

Sponsored by COMMITTEE ON REVENUE

                             SUMMARY

The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.

  Provides for increase in income and corporate excise tax rates
if high school graduation rates fall below certain percentage.
Provides for subsequent decrease in income and corporate excise
tax rates, to rates in current law, if high school graduation
rates are raised to certain percentage. Becomes operative when
Superintendent of Public Instruction announces high school
graduation rates that meet thresholds. Applies to tax years
beginning on or after January 1 following announcement.
  Directs that revenues received due to imposition of income and
excise tax rates above rates in current law are to be transferred
to School Improvement Fund.
  Takes effect on 91st day following adjournment sine die.

                        A BILL FOR AN ACT
Relating to state finance; creating new provisions; amending ORS
  316.037 and 317.061; and prescribing an effective date.
Be It Enacted by the People of the State of Oregon:
  SECTION 1. 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

____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%

____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 $125,000 { +
 but not + }

____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________

   { +
over $250,000 + }
  $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

____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________

 { +
Over $250,000                $24,610 plus 11% + }

____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________

                    { +
of the excess
                   over $250,000 + }
____________________________________________________________
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 2. ORS 317.061, as amended by section 9, chapter 745,
Oregon Laws 2009, is amended to read:
  317.061. The rate of the tax imposed by and computed under this
chapter is:
  (1) Six and six-tenths percent of the first   { - $10
million - }  { + $250,000 + } of taxable income, or fraction
thereof; and
  (2) Seven and   { - six-tenths - }   { + nine-tenths + }
percent of any amount of taxable income in excess of   { - $10
million - }  { +  $250,000 + }.
  SECTION 3.  { + The amendments to ORS 316.037 and 317.061 by
sections 1 and 2 of this 2013 Act apply to tax years beginning on
or after the January 1 immediately following the operative date
specified in section 4 of this 2013 Act. + }
  SECTION 4.  { + The amendments to ORS 316.037 and 317.061 by
sections 1 and 2 of this 2013 Act become operative on the date
that the Superintendent of Public Instruction announces a high
school graduation rate of 65 percent or lower for students
entering high school ___ years earlier. + }
  SECTION 5. ORS 316.037, as amended by section 1 of this 2013
Act, 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

____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%

____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 $125,000   { -
but not - }

____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________

   { -
over $250,000 - }
  $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

____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________

  { -
Over $250,000     $24,610 plus 11% - }

____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________

                    { -
of the excess - }
                    { -
over $250,000 - }

____________________________________________________________
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 6. ORS 317.061, as amended by section 9, chapter 745,
Oregon Laws 2009, and section 2 of this 2013 Act, is amended to
read:
  317.061. The rate of the tax imposed by and computed under this
chapter is:
  (1) Six and six-tenths percent of the first   { - $250,000 - }
 { + $10 million + } of taxable income, or fraction thereof; and
  (2) Seven and   { - nine-tenths - }   { + six-tenths + }
percent of any amount of taxable income in excess of
 { - $250,000 - }   { + $10 million + }.
  SECTION 7.  { + The amendments to ORS 316.037 and 317.061 by
sections 5 and 6 of this 2013 Act apply to tax years beginning on
or after the January 1 immediately following the operative date
specified in section 8 of this 2013 Act. + }
  SECTION 8.  { + The amendments to ORS 316.037 and 317.061 by
sections 5 and 6 of this 2013 Act become operative on the date
that the Superintendent of Public Instruction announces a high
school graduation rate of at least 90 percent for students
entering high school ___ years earlier, if, on a date following
the effective date of this 2013 Act, the Superintendent of Public
Instruction has previously announced a high school graduation
rate of 65 percent or lower. + }
  SECTION 9.  { + Section 10 of this 2013 Act is added to and
made a part of ORS chapter 316. + }
  SECTION 10.  { + (1) For tax years beginning on or after
January 1, 2015, any revenue that is received as a result of a
rate of tax above 9.9 percent imposed under this chapter and that
is in excess of the revenue that would be received under this
chapter at a rate of 9.9 percent shall be deposited into the
School Improvement Fund established in ORS 327.294.
  (2) Before the end of each biennium beginning with the biennium
ending on June 30, 2017, the Department of Revenue shall estimate
the revenue described in subsection (1) of this section.  An
amount equal to that estimate shall be transferred into the
School Improvement Fund established in ORS 327.294 on or before
June 30 of each odd-numbered year. + }
  SECTION 11.  { + Section 12 of this 2013 Act is added to and
made a part of ORS chapter 317. + }
  SECTION 12.  { + (1) For tax years beginning on or after
January 1, 2015, any revenue that is received as a result of a
rate of tax above seven and six-tenths percent imposed under this
chapter and that is in excess of the revenue that would be
received under this chapter at a rate of seven and six-tenths
percent shall be deposited into the School Improvement Fund
established in ORS 327.294.
  (2) Before the end of each biennium beginning with the biennium
ending on June 30, 2017, the Department of Revenue shall estimate
the revenue described in subsection (1) of this section.  An
amount equal to that estimate shall be transferred into the
School Improvement Fund established in ORS 327.294 on or before
June 30 of each odd-numbered year. + }
  SECTION 13.  { + Section 14 of this 2013 Act is added to and
made a part of ORS chapter 318. + }
  SECTION 14.  { + (1) For tax years beginning on or after
January 1, 2015, any revenue that is received as a result of a
rate of tax above seven and six-tenths percent imposed under this
chapter and that is in excess of the revenue that would be
received under this chapter at a rate of seven and six-tenths
percent shall be deposited into the School Improvement Fund
established in ORS 327.294.
  (2) Before the end of each biennium beginning with the biennium
ending on June 30, 2017, the Department of Revenue shall estimate
the revenue described in subsection (1) of this section.  An
amount equal to that estimate shall be transferred into the
School Improvement Fund established in ORS 327.294 on or before
June 30 of each odd-numbered year. + }
  SECTION 15.  { + This 2013 Act takes effect on the 91st day
after the date on which the 2013 regular session of the
Seventy-seventh Legislative Assembly adjourns sine die. + }
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