Bill Text: OR SB232 | 2013 | Regular Session | Introduced
Bill Title: Relating to state finance; prescribing an effective date.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Failed) 2013-07-08 - In committee upon adjournment. [SB232 Detail]
Download: Oregon-2013-SB232-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 2563
Senate Bill 232
Sponsored by Senator HASS, Representative READ (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.
Implements Senate Joint Resolution 7 2565). Limits amount of
excess personal income tax revenues returned to personal income
taxpayers to $500 per taxpayer. Transfers any remainder of excess
to Oregon Fund. Transfers corporate kicker to Oregon Fund.
Changes statutory references to Oregon Rainy Day Fund to Oregon
Fund. Repeals obsolete statutory provisions relating to Oregon
Rainy Day Fund.
Takes effect only if Senate Joint Resolution 7 (2013) is
approved by people at next regular general election. Takes effect
on effective date of constitutional amendment proposed in Senate
Joint Resolution 7 (2013).
A BILL FOR AN ACT
Relating to state finance; creating new provisions; amending ORS
291.349, 293.146, 305.792, 317.853 and 318.074; repealing ORS
293.144 and 293.148; and prescribing an effective date.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 291.349, as amended by section 22, chapter 107,
Oregon Laws 2012, is amended to read:
291.349. (1) As soon as practicable after adjournment sine die
of the odd-numbered year regular session of the Legislative
Assembly, the Oregon Department of Administrative Services shall
report to the Legislative Revenue Officer and the Legislative
Fiscal Officer 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 odd-numbered year 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 a special session or an
even-numbered year regular 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
Legislative Revenue Officer and the Legislative Fiscal Officer,
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 odd-numbered year 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 - } { + transferred to the Oregon Fund
established by Article IX, section 15, of the Oregon
Constitution, or the school capital matching fund created under
Article XI-P, section 4, of the Oregon Constitution, as provided
in Article IX, section 15 (5), of the Oregon Constitution + }.
(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 odd-numbered year regular session, by
two percent or more, there shall be credited to personal income
taxpayers an amount { - equal to the total amount of that
excess - } { + of the excess not to exceed $500 per individual
taxpayer + }, reduced by the cost certified by the Department of
Revenue under ORS 291.351 as being allocable to credits described
under this subsection. The excess amount to be credited 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. { + Any remaining amount of the
excess shall be transferred to the Oregon Fund established by
Article IX, section 15, of the Oregon Constitution, or the school
capital matching fund created under Article XI-P, section 4, of
the Oregon Constitution, as provided in Article IX, section 15
(5), of the Oregon Constitution. + }
{ - (5)(a) - } { + (5) Subject to the $500 limit in
subsection (4) of this section:
(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 { - amounts - }
{ + amount + } of credit for purposes of subsection { - (3)
or - } (4) of this section. The percentage { - amounts - }
{ + amount + } determined shall be { + a + } percentage
{ - amounts - } { + amount + } 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) - } { + (b) + } 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) - } { + (c) + } The amount of the surplus credit
under subsection (4) of this section is determined by multiplying
the percentage amount determined under paragraph { - (d) - }
{ + (b) + } 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.
{ - (f) - } { + (d) + } 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.
{ - (g) - } { + (e) + } 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.
{ - (h) For corporate income and excise taxpayers, if a
credit applied against tax liability as described in paragraph
(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 (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. - }
{ - (i) - } { + (f) + } For personal income taxpayers, if a
credit applied against tax liability as described in paragraph
{ - (g) - } { + (e) + } of this subsection reduces tax
liability to zero and an amount of the credit remains unused, the
remaining unused amount shall be refunded to the taxpayer. For
purposes of ORS chapters 305, 314, 315 and 316, refunds issued
under this paragraph are refunds of an overpayment of tax imposed
under ORS chapter 316.
{ - (j) Notwithstanding paragraph (g) of this subsection, if
an excess is credited under subsection (3) 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 (h)
of this subsection, the amount of the carryforward credit shall
be applied against tax liability prior to applying the new
credit. - }
{ - (k) - } { + (g) + } The Department of Revenue may
prescribe by rule the manner of calculating and claiming a credit
if the filing status of a taxpayer changes between the tax year
for which a credit may be claimed and the succeeding tax year.
(6) A refund may not be made under this section to a taxpayer
if the amount of the refund is less than $1.
(7) Not later than October 15 following the end of the
biennium, the Department of Revenue shall provide information and
guidance to taxpayers relating to the calculation of the credit.
The department may make the information and guidance available
electronically or otherwise.
(8) The Department of Revenue may adopt rules specifying the
manner for issuing refunds under this section to taxpayers who
filed returns { - in - } { + for + } the tax year on which
the credit is computed but who are not required to file returns
{ - in - } { + for + } the year in which the credit could be
claimed.
SECTION 2. ORS 293.146 is amended to read:
293.146. (1) As used in this section:
(a) 'Ending balance' means the difference between the amount of
General Fund revenues collected during a biennium and the amount
of General Fund appropriations for the biennium.
(b) 'General Fund appropriations' means the amount of moneys
appropriated from the General Fund for a biennium in the
legislatively approved budget for the biennium, minus the amount
of any General Fund appropriation balances for that biennium that
revert to the General Fund under ORS 293.190.
(c) 'Legislatively approved budget' has the meaning given that
term in ORS 291.002.
(2) Except as provided in { - ORS 293.148 - } { + Article
IX, section 15 (5), of the Oregon Constitution + }, as soon as
possible after the ending balance for a biennium is determined,
an amount equal to one percent of the amount of General Fund
appropriations for that biennium shall be transferred to the
{ - Oregon Rainy Day Fund established by ORS 293.144 - } { +
Oregon Fund established by Article IX, section 15, of the Oregon
Constitution + }. If the ending balance does not equal or exceed
one percent of the amount of General Fund appropriations, an
amount equal to the ending balance shall be transferred to the
{ - Oregon Rainy Day Fund - } { + Oregon Fund + }.
SECTION 3. ORS 305.792 is amended to read:
305.792. (1) The Department of Revenue shall provide a means by
which personal income { - and corporate income or excise - }
tax return filers may indicate that a surplus refund credit to
which the taxpayer may otherwise be entitled to under ORS 291.349
shall instead be used for funding education.
(2)(a) A personal income { - or corporate excise or
income - } taxpayer may elect not to 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 in the form and manner
prescribed by the department by rule.
(b) A taxpayer that indicates that the credit will not be
claimed but that nevertheless claims the credit in determining
the taxpayer's tax liability shall be considered to not have made
the election under this subsection.
(c) The election not to claim a credit under this subsection
may not be revoked by filing an amended return.
(3) Following the determination to credit personal income
{ - or corporate income and excise - } taxes pursuant to ORS
291.349, 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 (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 4. ORS 317.853 is amended to read:
317.853. (1) { + Except as provided in Article IX, section 15
(5), of the Oregon Constitution, + }for tax years beginning on
or after January 1, 2013, any revenue that is received as a
result of a rate of tax above six and six-tenths percent imposed
under this chapter and that is in excess of the revenue that
would be received under this chapter at a rate of six and
six-tenths percent shall be deposited into the { - Oregon Rainy
Day Fund established by ORS 293.144 - } { + Oregon Fund
established by Article IX, section 15, of the Oregon
Constitution + }.
(2) Before the end of each biennium, beginning with the
biennium ending on June 30, 2015, the Department of Revenue shall
estimate the revenue described in subsection (1) of this section
that is received during the biennium. { + Except as provided in
Article IX, section 15 (5), of the Oregon Constitution, + }an
amount equal to that estimate shall be transferred into the
{ - Oregon Rainy Day Fund established by ORS 293.144 - }
{ + Oregon Fund established by Article IX, section 15, of the
Oregon Constitution, + }on or before June 30 of each
odd-numbered year.
SECTION 5. ORS 318.074 is amended to read:
318.074. (1) { + Except as provided in Article IX, section 15
(5), of the Oregon Constitution, + }for tax years beginning on
or after January 1, 2013, any revenue that is received as a
result of a rate of tax above six and six-tenths percent imposed
under this chapter and that is in excess of the revenue that
would be received under this chapter at a rate of six and
six-tenths percent shall be deposited into the { - Oregon Rainy
Day Fund established by ORS 293.144 - } { + Oregon Fund
established by Article IX, section 15, of the Oregon
Constitution + }.
(2) Before the end of each biennium, beginning with the
biennium ending on June 30, 2015, the Department of Revenue shall
estimate the revenue described in subsection (1) of this section
that is received during the biennium. { + Except as provided in
Article IX, section 15 (5), of the Oregon Constitution, + }an
amount equal to that estimate shall be transferred into the
{ - Oregon Rainy Day Fund established by ORS 293.144 - }
{ + Oregon Fund established by Article IX, section 15, of the
Oregon Constitution, + }on or before June 30 of each
odd-numbered year.
SECTION 6. { + Pursuant to Article IX, section 15 (3), of the
Oregon Constitution, once each month, the Oregon Department of
Administrative Services shall calculate the amount of General
Fund interest that is attributable to moneys in the Oregon Fund,
exclusive of any subaccount in the Oregon Fund. Except as
provided in Article IX, section 15 (5), of the Oregon
Constitution, the amount calculated under this section shall be
transferred to the Oregon Fund. + }
SECTION 7. { + Section 6 of this 2013 Act, the amendments to
ORS 291.349, 293.146, 305.792, 317.853 and 318.074 by sections 1
to 5 of this 2013 Act and the repeal of ORS 293.144 and 293.148
by section 8 of this 2013 Act apply to biennia beginning on or
after July 1, 2013. + }
SECTION 8. { + ORS 293.144 and 293.148 are repealed. + }
SECTION 9. { + The Oregon Fund established by Article IX,
section 15, of the Oregon Constitution, is intended to be a
continuation of the Oregon Rainy Day Fund established by ORS
293.144. Moneys contained on the effective date of this 2013 Act
in the Oregon Rainy Day Fund established by ORS 293.144 are
considered to be moneys in the Oregon Fund established by Article
IX, section 15, of the Oregon Constitution. + }
SECTION 10. { + This 2013 Act does not become effective unless
the amendment to the Oregon Constitution proposed by Senate Joint
Resolution 7 (2013) is approved by the people at the regular
general election held in November 2014. This 2013 Act takes
effect on the effective date of that amendment. + }
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