Bill Text: OR SB1027 | 2010 | 1st Special Session | Introduced
Bill Title: Relating to surplus refund methods.
Spectrum: Slight Partisan Bill (Democrat 3-1)
Status: (Failed) 2010-02-25 - In committee upon adjournment. [SB1027 Detail]
Download: Oregon-2010-SB1027-Introduced.html
75th OREGON LEGISLATIVE ASSEMBLY--2010 Special 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 101 Senate Bill 1027 Sponsored by Senators BURDICK, MORSE; Senators BONAMICI, HASS (Presession filed.) 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. Changes method by which surplus 'kicker' refunds are made to personal income taxpayers. Applies to biennia beginning on or after July 1, 2011. A BILL FOR AN ACT Relating to surplus refund methods; creating new provisions; amending ORS 291.349 and 305.792; and repealing ORS 291.351 and 291.353. Be It Enacted by the People of the State of Oregon: SECTION 1. ORS 291.349 is amended to read: 291.349. (1) As soon as practicable after adjournment sine die of the regular session of the Legislative Assembly, the Oregon Department of Administrative Services shall report to the Emergency Board the estimate as of July 1 of the first year of the biennium of General Fund and State Lottery Fund revenues that will be received by the state during that biennium. The Oregon Department of Administrative Services shall base its estimate on the last forecast given to the Legislative Assembly before adjournment sine die of the regular session on which the printed, adopted budget prepared in the Oregon Department of Administrative Services is based, adjusted only insofar as necessary to reflect changes in laws adopted at that session. The report shall contain the estimated revenues from corporate income and excise taxes separately from the estimated revenues from other General Fund sources. The Oregon Department of Administrative Services may revise the estimate if necessary following adjournment sine die of any special or emergency session of the Legislative Assembly but any revision does not affect the basis of the computation described in subsection (3) or (4) of this section. (2) As soon as practicable after the end of the biennium, the Oregon Department of Administrative Services shall report to the Emergency Board, or the Legislative Assembly if it is in session, the amount of General Fund revenues collected as of the last June 30 of the preceding biennium. The report shall contain the collections from corporate income and excise taxes separately from collections from other sources. (3) If the revenues received from the corporate income and excise taxes during the biennium exceed the amounts estimated to be received from such taxes for the biennium, as estimated after adjournment sine die of the regular session, by two percent or more, the total amount of that excess shall be credited to corporate income and excise taxpayers in a percentage amount of prior year corporate excise and income tax liability as determined under subsection (5) of this section. However, no credit shall be allowed against tax liability imposed by ORS 317.090. (4) If the revenues received from General Fund revenue sources, exclusive of those described in subsection (3) of this section, during the biennium exceed the amounts estimated to be received from such sources for the biennium, as estimated after adjournment sine die of the regular session, by two percent or more, { - there shall be refunded from personal income tax revenues an amount equal to the total amount of that excess, reduced by the cost certified by the Department of Revenue under ORS 291.351 as being allocable to payments described under this subsection. The excess amount to be refunded shall be paid to personal income taxpayers in a percentage amount of prior year personal income tax liability as determined under subsection (6) of this section. - } { + the total amount of that excess shall be credited to personal income taxpayers in a percentage amount of prior year personal income tax liability as determined under subsection (5) of this section. + } (5)(a) If there is an excess to be credited under subsection (3) { + or (4) + } of this section, { + or both, + } on or before October 1, following the end of each biennium, the Oregon Department of Administrative Services shall determine and certify to the Department of Revenue the percentage { - amount - } { + amounts + } of credit for purposes of subsection (3) { + or (4) + } of this section. The percentage { - amount - } { + amounts + } determined shall be { - a - } percentage { - amount - } { + amounts + } to the nearest one-tenth of a percent that will distribute the excess to be credited { + either + } to corporate excise and income taxpayers { + or to personal income taxpayers + }. (b) The percentage amount { + applicable to subsection (3) of this section + } shall equal the amount distributed under subsection (3) of this section divided by the estimated total corporate income and excise tax liability for all corporate income and excise taxpayers for tax years beginning in the calendar year immediately preceding the calendar year in which the excess is determined. (c) The amount of the surplus credit { + under subsection (3) of this section + } is determined by multiplying the percentage amount determined under paragraph (b) of this subsection by the total amount of a corporate income or excise taxpayer's tax liability for the tax year beginning in the calendar year immediately preceding the calendar year in which the excess is determined in order to calculate the amount to be credited to the taxpayer. { + (d) The percentage amount applicable to subsection (4) of this section shall equal the amount distributed under subsection (4) of this section divided by the estimated total personal income tax liability for all personal income taxpayers for tax years beginning in the calendar year immediately preceding the calendar year in which the excess is determined. (e) The amount of the surplus credit under subsection (4) of this section is determined by multiplying the percentage amount determined under paragraph (d) of this subsection by the total amount of a personal income taxpayer's tax liability for the tax year beginning in the calendar year immediately preceding the calendar year in which the excess is determined in order to calculate the amount to be credited to the taxpayer. + } { - (d) - } { + (f) + } The credit shall be determined based on the tax liability as shown on the return of the taxpayer or as corrected by the Department of Revenue. { - (e) - } { + (g) + } The credit shall be computed after the allowance of a credit provided under ORS 316.082, 316.131 or 316.292, but before the allowance of any other credit or offset against tax liability allowed or allowable under any provision of law of this state, and before the application of estimated tax payments, withholding or other advance tax payments. { - (f) - } { + (h) + } If a credit applied against tax liability as described in paragraph { - (e) - } { + (g) + } of this subsection reduces tax liability to zero and an amount of the credit remains unused, the remaining unused amount shall be carried forward and applied against tax liability as prescribed in paragraph { - (e) - } { + (g) + } of this subsection in the succeeding tax year. Following application of the credit against tax liability in a succeeding tax year, any amount continuing to remain unused shall be carried forward and applied against tax liability in a succeeding tax year until all remaining amounts of unused credit are offset against tax liability. { - (g) - } { + (i) + } Notwithstanding paragraph { - (e) - } { + (g) + } of this subsection, if an excess is credited under subsection (3) { + or (4) + } of this section for a tax year and an unused credit amount from a prior tax year is carried forward to the tax year as prescribed under paragraph { - (f) - } { + (h) + } of this subsection, the amount of the carryforward credit shall be applied against tax liability prior to applying the new credit. { - (h) - } { + (j) + } The Department of Revenue may prescribe by rule the manner of calculating and claiming a credit if the filing status of a corporation changes between the tax year described in paragraph (b) of this subsection and the succeeding tax year. { - (6)(a) If there is an excess to be refunded under subsection (4) of this section, on or before September 15, following the end of each biennium, the Oregon Department of Administrative Services shall determine and certify to the Department of Revenue the percentage amount of refund payment for purposes of subsection (4) of this section. The percentage amount so determined shall be a percentage amount to the nearest one-hundredth of a percent that will distribute the excess to be refunded to personal income taxpayers under subsection (4) of this section. The percentage amount shall equal the amount distributed under subsection (4) of this section divided by the estimated total personal income tax liability for all personal income taxpayers for tax years beginning in the calendar year immediately preceding the calendar year in which the excess is determined. - } { - (b) The Department of Revenue shall multiply the percentage amount determined under paragraph (a) of this subsection by the total amount of a personal income taxpayer's tax liability for the tax year beginning in the calendar year immediately preceding the calendar year in which the excess is determined in order to calculate the amount of the refund to be made to the taxpayer. For purposes of this paragraph, the taxpayer's tax liability is the amount as shown on the return of the taxpayer or as corrected by the Department of Revenue, and is determined: - } { - (A) After the allowance of a credit provided under ORS 316.082, 316.131 or 316.292; - } { - (B) Before the allowance of any other credit or offset against tax liability allowed or allowable on the return for the tax year; and - } { - (C) Before the application of estimated tax payments, withholding or other advance tax payments. - } { - (c) The refund described under this subsection shall be mailed by the Department of Revenue to personal income taxpayers eligible for the payment on or before December 15 following the end of the biennium for which the payment described under this subsection is being made. - } { - (d) Notwithstanding paragraph (c) of this subsection, the Department of Revenue shall mail the refund at the earliest date of practicable convenience in the case of a return: - } { - (A) For a tax year beginning in the calendar year immediately preceding the calendar year in which the excess is determined for which refund is being made; and - } { - (B) That is first filed on or after August 15 after the end of the biennium. - } { - (7) No refund shall be made to a taxpayer if, after making the calculation described under subsection (6) of this section, the amount calculated is less than $1. - } { - (8) For purposes of ORS chapters 305 and 314 to 318, refunds issued under subsection (6) of this section are refunds of an overpayment of tax imposed under ORS chapter 316, but do not bear interest. - } SECTION 2. { + ORS 291.351 and 291.353 are repealed. + } SECTION 3. { + Amounts in the Surplus Kicker Cost Account on the effective date of this 2010 Act shall be transferred to the General Fund. + } SECTION 4. ORS 305.792 is amended to read: 305.792. (1) The Department of Revenue shall cause a checkoff box to be printed on the personal income and corporate income or excise tax returns for the appropriate tax year, by which a taxpayer may indicate that a surplus refund { - payment or - } credit that the taxpayer may otherwise be entitled to under ORS 291.349 shall instead be used for funding education. { - (2)(a) A personal income taxpayer may elect to donate a surplus refund payment to be made under ORS 291.349 to public elementary and secondary school education. The taxpayer may make the election by checking the appropriate checkoff box on the taxpayer's return indicating the taxpayer's intention to donate the surplus refund payment to public elementary and secondary education. - } { - (b) Once made, the election is irrevocable for any surplus refund payments received until a subsequent return is filed for a later tax year, and on which the checkoff box is not checked. - } { - (3)(a) - } { + (2)(a) + } A { + personal income or + } corporate excise or income taxpayer may elect to not claim a surplus refund credit that the taxpayer would otherwise be entitled to pursuant to ORS 291.349, in order to achieve a corresponding transfer of such moneys from the General Fund to the State School Fund for the support of public elementary and secondary school education. The taxpayer may make the election by checking the appropriate checkoff box on the taxpayer's return and by not using the surplus refund credit percentage to reduce the taxpayer's tax liability. (b) A taxpayer that checks the appropriate checkoff box indicating that the credit will not be claimed but that nevertheless claims the credit in determining the taxpayer's tax liability shall be considered to have not made the election under this subsection. (c) The election to not claim a credit under this subsection may not be revoked by filing an amended return. { - (4) After the determination that surplus refund payments are to be made under ORS 291.349 (4) and (6), the department shall determine the total amount of such payments for which an election to donate to public elementary and secondary education has been made and shall certify this amount to the State Treasurer. Following the department's certification to the State Treasurer, an election to donate that biennium's surplus refund payments under subsection (2) of this section is irrevocable. - } { - (5) - } { + (3) + } Following the determination to credit { + personal income or + } corporate income and excise taxes pursuant to ORS 291.349 { - (3) and (5) - } , the department shall annually certify { + to the State Treasurer + } the total amount of allowable credits that have not been claimed pursuant to an election made under subsection { - (3) - } { + (2) + } of this section. The certification shall be made on or before December 31 of each year, until the tax year for which the credit would otherwise be claimed becomes a closed tax year. SECTION 5. { + For purposes of determining the amount to be certified to the State Treasurer under ORS 305.792, surplus refund payment elections made under ORS 305.792 (2009 or earlier edition) shall be considered surplus refund credit elections. + } SECTION 6. { + The amendments to ORS 291.349 and 305.792 by sections 1 and 4 of this 2010 Act apply to biennia beginning on or after July 1, 2011. + } ----------