Bill Text: OR HB3188 | 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. [HB3188 Detail]
Download: Oregon-2013-HB3188-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 812
House Bill 3188
Sponsored by Representative HOLVEY
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
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.
Takes effect only if constitutional amendment proposed by House
Joint Resolution 30 (2013) is approved by people at next regular
general election. Takes effect on effective date of
constitutional amendment proposed by House Joint Resolution 30
(2013).
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, 314.430, 731.840, 801.040, 802.110 and 803.585;
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 81 and 83 to 96 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 81 and 83 to 96 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 81 and 83 to 96 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;
(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; or
(G) Credit for a trade-in of property.
(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) 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
(C) 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) 'Nonresident' means an individual who is not a resident of
this state.
(10) '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.
(11) 'Purchase price' has the same meaning as 'sales price. '
(12) 'Rental' has the same meaning as 'lease. '
(13) 'Resident' and 'resident of this state' have the meaning
given those terms in ORS 316.027.
(14) 'Retail sale' or 'sale at retail' means a sale or lease
for any purpose other than for resale, sublease or subrent.
(15) 'Sales price' means the total amount of gross receipts
derived from the sale or lease of tangible personal property or
services.
(16) '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.
(17) '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.
(18)(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.
(19)(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.
(20)(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 15, 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 or
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 50 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 15, 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 for storage, use or other consumption
in this state, 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, 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 (10)(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 (10)(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 89 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) A trolley.
(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 such 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 (10)(b) of this 2013
Act. + }
SECTION 42. { + (1) Notwithstanding sections 72 and 73 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 74 (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 74 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 73 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 71 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 94 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) Gross receipts from the sale of tangible personal property
to, or the storage, use or consumption of tangible personal
property by, an Indian tribe or Indian enterprise within an
Indian reservation are exempt from the sales tax and the use
tax. + }
SECTION 46. { + (1) Gross receipts from the sales, furnishing
or service, and the storage, use or other consumption, in this
state of water are exempt from the sales tax and the use tax.
(2) As used in this section, 'water' does not include ice. + }
SECTION 47. { + (1) Gross receipts from the sale, and the
storage, use or other consumption, in this state of food and food
ingredients are exempt from the sales tax and the use tax.
(2) The exemption under this section does 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. { + (1) Gross receipts from the sale, and the
storage, use or other consumption, in this state of clothing,
clothing accessories and equipment, protective equipment and
sport or recreational equipment are exempt from the sales tax and
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 49. { + (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 50. { + Gross receipts from the sale, or the storage,
use or other consumption, in this state of machinery and
equipment used in manufacturing are exempt from the sales tax and
the use tax. + }
SECTION 51. { + (1) Gross receipts from the sale, or the
storage, use or other consumption, in this state of drugs,
durable medical equipment for home use, mobility enhancing
equipment and prosthetic devices are exempt from the sales tax
and the use tax.
(2) As used in this section:
(a) 'Drug':
(A) Means a compound, substance or preparation, and any
component of a compound, substance or preparation, that is:
(i) Recognized in the United States Pharmacopoeia, the
Homeopathic Pharmacopoeia of the United States or the National
Formulary, or any supplement to them;
(ii) Intended for use in the diagnosis, cure, mitigation,
treatment or prevention of disease; or
(iii) Intended to affect the structure or any function of the
body.
(B) Does not mean alcoholic beverages as defined in section 49
of this 2013 Act, dietary supplements or food and food
ingredients as defined in section 47 of this 2013 Act.
(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) '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 52. { + Gross receipts from the sale of goods and
services related to the provision of utilities in this state are
exempt from the sales tax and the use tax. + }
SECTION 53. { + Gross receipts from the sale, and the storage,
use or other consumption, in this state of the following items
are exempt from the sales tax and the use tax:
(1) Animals, feed, seed, plants, fertilizer and pesticides
that, or the products of which, are ordinarily used or for use in
commercial, agricultural, horticultural or silvicultural
activities.
(2) Equipment, machinery and implements for use in conducting a
farming activity. + }
SECTION 54. { + (1) Gross receipts from the sale, and the
storage, use or other consumption, in this state of tobacco are
exempt from the sales tax and 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 55. { + (1) Gross receipts from the sale or
distribution and the storage, use or other consumption in this
state of motor vehicle fuel, fuel or aircraft fuel are exempt
from the sales tax and the use tax if the sale, 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).
(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 94 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 established under section 94 of this 2013 Act to the State
Highway Fund. + }
SECTION 56. { + (1) Gross receipts from the sale, furnishing
or service, and the storage, use or other consumption, in this
state of the following items are exempt from the sales tax and
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) Organic products grown expressly for fuel purposes.
(e) Waste by-products from agricultural or forest products
operations, municipal refuse or manufacturing that are delivered
in bulk and are used in an industrial facility as a fuel source
in lieu of the use of either oil, natural gas or coal.
(f) 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 57. { + (1) Gross receipts from the sale, lease or
rental, and the storage, use or other consumption, in this state
of a manufactured structure or a floating home are exempt from
the sales tax and 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 58. { + (1) Gross receipts from the sale of any
tangible personal property 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 59. { + (1) If a cargo container is purchased for use
outside this state and is delivered by an in-state manufacturer
to the purchaser within 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, and the
storage, use or other consumption, of the cargo container within
this state are exempt from the sales tax and 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 60. { + (1) Gross receipts from sales of tangible
personal property 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 sales of tangible personal property,
other than aircraft fuel and petroleum products, 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, as amended and in effect on December
31, 2013. + }
SECTION 61. { + (1) Gross receipts from sales of tangible
personal property 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 62. { + (1) Gross receipts from occasional sales of
tangible personal property 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 63. { + Gross receipts from sales of tangible personal
property purchased for use outside the United States are exempt
from the sales 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 64. { + (1) Gross receipts from the sale in this state
of tangible personal property 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 65. { + Rentals payable under a lease of tangible
personal property 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 66. { + (1) Gross receipts from the sale of tangible
personal property 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 67. { + (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 68. { + (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 the threshold amount of $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 69. { + (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 70. { + (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 71. { + (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 72. { + (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 73 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 73. { + (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 74. { + (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 75. { + (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 76. { + Notwithstanding sections 73 and 74 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 77. { + (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 78. { + 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 79. { + (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 80. { + 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 81. { + (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 82. 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 83. { + (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 93 of this 2013
Act, the amounts necessary to make refunds pursuant to this
section. + }
SECTION 84. { + (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 85. { + (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 86. { + 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 87. { + (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 95 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 88. { + (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 89. { + (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 90
(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 90 (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 90. { + (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 89 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 89 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 89 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 89 and 95 of this 2013 Act,
relating to penalties for the violation of section 89 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 89 of this 2013 Act. + }
SECTION 91. { + 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 92. { + 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 93 and 94 of this 2013 Act. + }
SECTION 93. { + (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 94 of
this 2013 Act. + }
SECTION 94. { + (1) 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.
(2) Moneys in the Sales and Use Tax Fund shall be distributed
as follows:
(a) Seventy-five percent of the annual revenue credited to the
fund must be expended to fund education in this state through the
post-secondary level.
(b) Twenty-five percent of the annual revenue credited to the
fund must be expended to provide:
(A) Progressive property tax relief for senior citizens based
on the value of the taxable property of the senior citizens as
assessed for property tax purposes; and
(B) Income tax relief for individuals with taxable income below
annual maximum amounts established by law for separate and joint
returns.
(3) Notwithstanding subsection (2) of this section, moneys
described in Article IX, section 3a, of the Oregon Constitution,
shall be transferred to the State Highway Fund. + }
{ +
PENALTIES + }
SECTION 95. { + (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 77 (1)(c) or (2) of this 2013
Act is guilty of a Class C felony.
(3) A person who violates section 89 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 96. { + 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 97. 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 98. 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 99. 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 100. 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 101. 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 102. 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 103. 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 104. 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 105. 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 106. 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 55 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 107. 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 108. 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.
{ +
TECHNICAL PROVISIONS + }
SECTION 109. { + (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 110. { + (1) Sections 1 to 81, 83 to 96 and 109 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 82 and 97 to
108 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 81, 83 to 96 and 109 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 82 and 97 to 108 of this 2013 Act.
(3) Notwithstanding subsection (1) of this section, sections 1
to 81, 83 to 96 and 109 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 82 and 97 to 108 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 111. { + 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 112. { + This 2013 Act does not take effect unless the
amendment to the Oregon Constitution proposed by House Joint
Resolution 30 (2013) 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. + }
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