Bill Text: OR SB166 | 2011 | Regular Session | Introduced
Bill Title: Relating to interest on tax deficiencies or delinquencies; appropriating money; prescribing an effective date.
Sponsorship: Unknown
Status: (Failed) 2011-06-30 - In committee upon adjournment. [SB166 Detail]
Download: Oregon-2011-SB166-Introduced.html
76th OREGON LEGISLATIVE ASSEMBLY--2011 Regular Session
NOTE: Matter within { + braces and plus signs + } in an
amended section is new. Matter within { - braces and minus
signs - } is existing law to be omitted. New sections are within
{ + braces and plus signs + } .
LC 824
Senate Bill 166
Printed pursuant to Senate Interim Rule 213.28 by order of the
President of the Senate in conformance with presession filing
rules, indicating neither advocacy nor opposition on the part
of the President (at the request of Governor John A. Kitzhaber
for Department of Revenue)
SUMMARY
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.
Temporarily increases interest rates for tax deficiencies or
delinquencies. Establishes Revenue Systems Replacement Fund.
Deposits additional moneys received as interest by Department of
Revenue in fund. Appropriates moneys in fund to department for
systems replacement.
Takes effect on 91st day following adjournment sine die.
A BILL FOR AN ACT
Relating to interest on tax deficiencies or delinquencies;
creating new provisions; amending ORS 305.220; appropriating
money; and prescribing an effective date.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 305.220 is amended to read:
305.220. (1) Unless specifically provided otherwise by statute
or by rule of the Director of the Department of Revenue adopted
pursuant to subsection (3) of this section, every deficiency or
delinquency arising under any law administered by the Department
of Revenue shall bear simple interest at the rate of five-sixths
of one percent per month or fraction thereof.
(2) Unless specifically provided otherwise by statute or by
rule of the director adopted pursuant to subsection (3) of this
section, every refund arising under any law administered by the
department shall, subject to subsections (3) and (5) of this
section and ORS 305.222, bear simple interest at the rate of
five-sixths of one percent per month, or fraction thereof.
(3)(a) If the director determines that the rates of interest
for deficiencies, delinquencies and refunds established in
subsections (1) and (2) of this section are at least one
percentage point more or less than the prevailing rates of
interest established by the Internal Revenue Service for
underpayments arising under the federal tax laws to which one
percentage point has been added, the director may adopt, by rule,
adjusted interest rates. The director shall not adopt adjusted
interest rates more than once in a calendar year. Notice of
intent to adopt adjusted interest rates shall be given in the
manner provided in ORS 183.335, not less than three months before
the proposed effective date of the adjusted rates.
(b) In establishing the adjusted interest rates to be adopted
under this subsection:
(A) The director shall take into consideration the current
interest rates established by the Internal Revenue Service for
underpayments arising under the federal tax laws.
(B) To any interest amount determined by taking into
consideration the current interest rates established by the
Internal Revenue Service for underpayments under subparagraph (A)
of this paragraph, which interest amount shall be expressed at a
rate per month or fraction thereof, there shall be added
one-twelfth of one percent.
(4) { + Except as provided in subsection (7) of this
section, + } if the director adopts an adjusted interest rate for
deficiencies and delinquencies, the director shall adopt an
adjusted interest rate for refunds that is equal to the adjusted
interest rate for deficiencies and delinquencies.
(5) Any change in the rate of interest applicable to
deficiencies, delinquencies or refunds resulting from the
adoption of adjusted interest rates by the director under this
section shall apply to deficiencies, delinquencies and refunds
outstanding on the effective date of the rule, or arising on or
after that date, but only with respect to interest periods
beginning on or after that date.
(6) If the rate of interest on a deficiency, a delinquency or a
refund is governed by this section, and if a fraction of a month
is involved in making the computation of interest on the
deficiency, delinquency or refund, then for the fractional month,
the simple interest otherwise provided shall be computed on a
daily basis.
{ + (7) For interest periods beginning on or after January 1,
2012, and before January 1, 2017, the interest rate applicable to
deficiencies and delinquencies prescribed by subsection (1) of
this section and the adjusted interest rate adopted under
subsection (3) of this section shall be increased by
___ percentage point per month or fraction thereof. + }
SECTION 2. { + (1) The Revenue Systems Replacement Fund is
established in the State Treasury, separate and distinct from the
General Fund. Interest earned by the Revenue Systems Replacement
Fund shall be credited to the fund. Moneys in the fund are
continuously appropriated to the Department of Revenue for
systems replacement.
(2) All moneys received by the department as a result of the
increased interest rates prescribed by ORS 305.220 (7) shall be
deposited in the fund.
(3) Any unexpended moneys remaining in the fund on June 30,
2017, are transferred to the General Fund. + }
SECTION 3. { + Section 2 of this 2011 Act is repealed January
2, 2018. + }
SECTION 4. { + This 2011 Act takes effect on the 91st day
after the date on which the 2011 session of the Seventy-sixth
Legislative Assembly adjourns sine die. + }
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