Bill Text: OR SB307 | 2013 | Regular Session | Enrolled
Bill Title: Relating to state finance; and prescribing an effective date.
Sponsorship: Committee Bill
Status: (Passed) 2013-06-21 - Effective date, October 7, 2013. [SB307 Detail]
Download: Oregon-2013-SB307-Enrolled.html
77th OREGON LEGISLATIVE ASSEMBLY--2013 Regular Session
Enrolled
Senate Bill 307
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 Senate Interim Committee on
Finance and Revenue)
CHAPTER ................
AN ACT
Relating to state finance; creating new provisions; amending ORS
314.606; repealing ORS 305.655; and prescribing an effective
date.
Be It Enacted by the People of the State of Oregon:
SECTION 1. { + Section 2 of this 2013 Act is added to and made
a part of ORS chapter 305. + }
SECTION 2. { + The Multistate Tax Compact is hereby enacted
into law and entered into on behalf of this state with all other
jurisdictions legally joining therein in a form substantially as
follows: + }
________________________________________________________________
{ +
ARTICLE I + }
{ +
PURPOSES + }
{ + The purposes of this compact are to:
1. Facilitate proper determination of state and local tax
liability of multistate taxpayers, including the equitable
apportionment of tax bases and settlement of apportionment
disputes.
2. Promote uniformity or compatibility in significant
components of tax systems.
3. Facilitate taxpayer convenience and compliance in the filing
of tax returns and in other phases of tax administration.
4. Avoid duplicative taxation. + }
{ +
ARTICLE II + }
{ +
DEFINITIONS + }
{ + As used in this compact:
1. 'State' means a state of the United States, the District of
Columbia, the Commonwealth of Puerto Rico, or any territory or
possession of the United States.
Enrolled Senate Bill 307 (SB 307-A) Page 1
2. 'Subdivision' means any governmental unit or special
district of a state.
3. 'Taxpayer' means any corporation, partnership, firm,
association, governmental unit or agency or person acting as a
business entity in more than one state.
4. 'Income tax' means a tax imposed on or measured by net
income including any tax imposed on or measured by an amount
arrived at by deducting expenses from gross income, one or more
forms of which expenses are not specifically and directly related
to particular transactions.
5. 'Capital stock tax' means a tax measured in any way by the
capital of a corporation considered in its entirety.
6. 'Gross receipts tax' means a tax, other than a sales tax,
which is imposed on or measured by the gross volume of business,
in terms of gross receipts or in other terms, and in the
determination of which no deduction is allowed which would
constitute the tax an income tax.
7. 'Sales tax' means a tax imposed with respect to the transfer
for a consideration of ownership, possession or custody of
tangible personal property or the rendering of services measured
by the price of the tangible personal property transferred or
services rendered and which is required by state or local law to
be separately stated from the sales price by the seller, or which
is customarily separately stated from the sales price, but does
not include a tax imposed exclusively on the sale of a
specifically identified commodity or article or class of
commodities or articles.
8. 'Use tax' means a nonrecurring tax, other than a sales tax,
which (a) is imposed on or with respect to the exercise or
enjoyment of any right or power over tangible personal property
incident to the ownership, possession or custody of that property
or the leasing of that property from another including any
consumption, keeping, retention, or other use of tangible
personal property and (b) is complementary to a sales tax.
9. 'Tax' means an income tax, capital stock tax, gross receipts
tax, sales tax, use tax, and any other tax which has a multistate
impact, except that the provisions of Article V of this compact
shall apply only to the taxes specifically designated
therein. + }
{ +
ARTICLE III + }
{ +
ELEMENTS OF INCOME TAX LAWS (Intentionally omitted) + }
{ +
ARTICLE IV + }
{ +
DIVISION OF INCOME (Intentionally omitted) + }
{ +
ARTICLE V + }
{ +
ELEMENTS OF SALES AND + }
{ +
USE TAX LAWS + }
Enrolled Senate Bill 307 (SB 307-A) Page 2
{ + 1. Tax credit. Each purchaser liable for a use tax on
tangible personal property shall be entitled to full credit for
the combined amount or amounts of legally imposed sales or use
taxes paid by him with respect to the same property to another
state and any subdivision thereof. The credit shall be applied
first against the amount of any use tax due the state, and any
unused portion of the credit shall then be applied against the
amount of any use tax due a subdivision.
2. Exemption certificates, vendors may rely. Whenever a vendor
receives and accepts in good faith from a purchaser a resale or
other exemption certificate or other written evidence of
exemption authorized by the appropriate state or subdivision
taxing authority, the vendor shall be relieved of liability for a
sales or use tax with respect to the transaction. + }
{ +
ARTICLE VI + }
{ +
THE COMMISSION + }
{ + 1. Organization and management. (a) The Multistate Tax
Commission is hereby established. It shall be composed of one '
member' from each party state who shall be the head of the state
agency charged with the administration of the types of taxes to
which this compact applies. If there is more than one such agency
the state shall provide by law for the selection of the
commission member from the heads of the relevant agencies. State
law may provide that a member of the commission be represented by
an alternate but only if there is on file with the commission
written notification of the designation and identity of the
alternate. The Attorney General of each party state or his
designee, or other counsel if the laws of the party state
specifically provide, shall be entitled to attend the meetings of
the commission, but shall not vote. Such Attorneys General,
designees or other counsel shall receive all notices of meetings
required under paragraph 1 (e) of this Article.
(b) Each party state shall provide by law for the selection of
representatives from its subdivisions affected by this compact to
consult with the commission member from that state.
(c) Each member shall be entitled to one vote. The commission
shall not act unless a majority of the members are present, and
no action shall be binding unless approved by a majority of the
total number of members.
(d) The commission shall adopt an official seal to be used as
it may provide.
(e) The commission shall hold an annual meeting and such other
regular meetings as its bylaws may provide and such special
meetings as its Executive Committee may determine. The commission
bylaws shall specify the dates of the annual and any other
regular meetings, and shall provide for the giving of notice of
annual, regular and special meetings. Notices of special meetings
shall include the reasons therefor and an agenda of the items to
be considered.
(f) The commission shall elect annually, from among its
members, a Chairman, a Vice Chairman and a Treasurer. The
commission shall appoint an Executive Director who shall serve at
its pleasure, and it shall fix his duties and compensation. The
Executive Director shall be secretary of the commission. The
commission shall make provision for the bonding of such of its
officers and employees as it may deem appropriate.
Enrolled Senate Bill 307 (SB 307-A) Page 3
(g) Irrespective of the civil service, personnel or other merit
system laws of any party state, the Executive Director shall
appoint or discharge such personnel as may be necessary for the
performance of the functions of the commission and shall fix
their duties and compensation. The commission bylaws shall
provide for personnel policies and programs.
(h) The commission may borrow, accept or contract for the
services of personnel from any state, the United States or any
other governmental entity.
(i) The commission may accept for any of its purposes and
functions any and all donations and grants of money, equipment,
supplies, materials and services, conditional or otherwise, from
any governmental entity, and may utilize and dispose of the same.
(j) The commission may establish one or more offices for the
transacting of its business.
(k) The commission shall adopt bylaws for the conduct of its
business. The commission shall publish its bylaws in convenient
form, and shall file a copy of the bylaws and any amendments
thereto with the appropriate agency or officer in each of the
party states.
(L) The commission annually shall make to the Governor and
legislature of each party state a report covering its activities
for the preceding year. Any donation or grant accepted by the
commission or services borrowed shall be reported in the annual
report of the commission, and shall include the nature, amount
and conditions, if any, of the donation, gift, grant or services
borrowed and the identity of the donor or lender. The commission
may make additional reports as it may deem desirable.
2. Committees. (a) To assist in the conduct of its business
when the full commission is not meeting, the commission shall
have an Executive Committee of seven members, including the
Chairman, Vice Chairman, Treasurer and four other members elected
annually by the commission. The Executive Committee, subject to
the provisions of this compact and consistent with the policies
of the commission, shall function as provided in the bylaws of
the commission.
(b) The commission may establish advisory and technical
committees, membership on which may include private persons and
public officials, in furthering any of its activities. Such
committees may consider any matter of concern to the commission,
including problems of special interest to any party state and
problems dealing with particular types of taxes.
(c) The commission may establish such additional committees as
its bylaws may provide.
3. Powers. In addition to powers conferred elsewhere in this
compact, the commission shall have power to:
(a) Study state and local tax systems and particular types of
state and local taxes.
(b) Develop and recommend proposals for an increase in
uniformity or compatibility of state and local tax laws with a
view toward encouraging the simplification and improvement of
state and local tax law and administration.
(c) Compile and publish information as in its judgment would
assist the party states in implementation of the compact and
taxpayers in complying with state and local tax laws.
(d) Do all things necessary and incidental to the
administration of its functions pursuant to this compact.
4. Finance. (a) The commission shall submit to the Governor or
designated officer or officers of each party state a budget of
its estimated expenditures for such period as may be required by
Enrolled Senate Bill 307 (SB 307-A) Page 4
the laws of that state for presentation to the legislature
thereof.
(b) Each of the commission's budgets of estimated expenditures
shall contain specific recommendations of the amounts to be
appropriated by each of the party states. The total amount of
appropriations requested under any such budget shall be
apportioned among the party states as follows: one-tenth in equal
shares; and the remainder in proportion to the amount of revenue
collected by each party state and its subdivisions from income
taxes, capital stock taxes, gross receipts taxes, sales and use
taxes. In determining such amounts, the commission shall employ
such available public sources of information as, in its judgment,
present the most equitable and accurate comparisons among the
party states. Each of the commission's budgets of estimated
expenditures and requests for appropriations shall indicate the
sources used in obtaining information employed in applying the
formula contained in this paragraph.
(c) The commission shall not pledge the credit of any party
state. The commission may meet any of its obligations in whole or
in part with funds available to it under paragraph 1 (i) of this
Article: provided that the commission takes specific action
setting aside such funds prior to incurring any obligation to be
met in whole or in part in such manner. Except where the
commission makes use of funds available to it under paragraph 1
(i), the commission shall not incur any obligation prior to the
allotment of funds by the party states adequate to meet the same.
(d) The commission shall keep accurate accounts of all receipts
and disbursements. The receipts and disbursements of the
commission shall be subject to the audit and accounting
procedures established under its bylaws. All receipts and
disbursements of funds handled by the commission shall be audited
yearly by a certified or licensed public accountant and the
report of the audit shall be included in and become part of the
annual report of the commission.
(e) The accounts of the commission shall be open at any
reasonable time for inspection by duly constituted officers of
the party states and by any persons authorized by the commission.
(f) Nothing contained in this Article shall be construed to
prevent commission compliance with laws relating to audit or
inspection of accounts by or on behalf of any government
contributing to the support of the commission. + }
{ +
ARTICLE VII + }
{ +
UNIFORM REGULATIONS AND + }
{ +
FORMS + }
{ + 1. Whenever any two or more party states, or subdivisions
of party states, have uniform or similar provisions of law
relating to an income tax, capital stock tax, gross receipts tax,
sales or use tax, the commission may adopt uniform regulations
for any phase of the administration of such law, including
assertion of jurisdiction to tax, or prescribing uniform tax
forms.
2. Prior to the adoption of any regulation, the commission
shall:
(a) As provided in its bylaws, hold at least one public hearing
on due notice to all affected party states and subdivisions
Enrolled Senate Bill 307 (SB 307-A) Page 5
thereof and to all taxpayers and other persons who have made
timely request of the commission for advance notice of its
regulation-making proceedings.
(b) Afford all affected party states and subdivisions and
interested persons an opportunity to submit relevant written data
and views, which shall be considered fully by the commission.
3. The commission shall submit any regulations adopted by it to
the appropriate officials of all party states and subdivisions to
which they might apply. Each such state and subdivision shall
consider any such regulation for adoption in accordance with its
own laws and procedures. + }
{ +
ARTICLE VIII + }
{ +
INTERSTATE AUDITS + }
{ + 1. This Article shall be in force only in those party
states that specifically provide therefor by statute.
2. Any party state or subdivision thereof desiring to make or
participate in an audit of any accounts, books, papers, records
or other documents may request the commission to perform the
audit on its behalf. In responding to the request, the commission
shall have access to and may examine, at any reasonable time,
such accounts, books, papers, records, and other documents and
any relevant property or stock of merchandise. The commission may
enter into agreements with party states or their subdivisions for
assistance in performance of the audit. The commission shall make
charges, to be paid by the state or local government or
governments for which it performs the service, for any audits
performed by it in order to reimburse itself for the actual costs
incurred in making the audit.
3. The commission may require the attendance of any person
within the state where it is conducting an audit or part thereof
at a time and place fixed by it within such state for the purpose
of giving testimony with respect to any account, book, paper,
document, other record, property or stock of merchandise being
examined in connection with the audit. If the person is not
within the jurisdiction, he may be required to attend for such
purpose at any time and place fixed by the commission within the
state of which he is a resident: provided that such state has
adopted this Article.
4. The commission may apply to any court having power to issue
compulsory process for orders in aid of its powers and
responsibilities pursuant to this Article and any and all such
courts shall have jurisdiction to issue such orders. Failure of
any person to obey any such order shall be punishable as contempt
of the issuing court. If the party or subject matter on account
of which the commission seeks an order is within the jurisdiction
of the court to which application is made, such application may
be to a court in the state or subdivision on behalf of which the
audit is being made or a court in the state in which the object
of the order being sought is situated. The provisions of this
paragraph apply only to courts in a state that has adopted this
Article.
5. The commission may decline to perform any audit requested if
it finds that its available personnel or other resources are
insufficient for the purpose or that, in the terms requested, the
audit is impracticable of satisfactory performance. If the
commission, on the basis of its experience, has reason to believe
Enrolled Senate Bill 307 (SB 307-A) Page 6
that an audit of a particular taxpayer, either at a particular
time or on a particular schedule, would be of interest to a
number of party states or their subdivisions, it may offer to
make the audit or audits, the offer to be contingent on
sufficient participation therein as determined by the commission.
6. Information obtained by any audit pursuant to this Article
shall be confidential and available only for tax purposes to
party states, their subdivisions or the United States.
Availability of information shall be in accordance with the laws
of the states or subdivisions on whose account the commission
performs the audit, and only through the appropriate agencies or
officers of such states or subdivisions. Nothing in this Article
shall be construed to require any taxpayer to keep records for
any period not otherwise required by law.
7. Other arrangements made or authorized pursuant to law for
cooperative audit by or on behalf of the party states or any of
their subdivisions are not superseded or invalidated by this
Article.
8. In no event shall the commission make any charge against a
taxpayer for an audit.
9. As used in this Article, 'tax,' in addition to the meaning
ascribed to it in Article II, means any tax or license fee
imposed in whole or in part for revenue purposes. + }
{ +
ARTICLE IX + }
{ +
ARBITRATION + }
{ + 1. Whenever the commission finds a need for settling
disputes concerning apportionment and allocations by arbitration,
it may adopt a regulation placing this Article in effect,
notwithstanding the provisions of Article VII.
2. The commission shall select and maintain an arbitration
panel composed of officers and employees of state and local
governments and private persons who shall be knowledgeable and
experienced in matters of tax law and administration.
3. Whenever the laws of the party state or subdivision thereof
are substantially identical with the relevant provisions of ORS
314.605 to 314.675, the taxpayer, by written notice to the
commission and to each party state or subdivision thereof that
would be affected, may secure arbitration of an apportionment or
allocation, if he is dissatisfied with the final administrative
determination of the tax agency of the state or subdivision with
respect thereto on the ground that it would subject him to double
or multiple taxation by two or more party states or subdivisions
thereof. Each party state and subdivision thereof hereby consents
to the arbitration as provided herein, and agrees to be bound
thereby.
4. The arbitration board shall be composed of one person
selected by the taxpayer, one by the agency or agencies involved,
and one member of the commission's arbitration panel. If the
agencies involved are unable to agree on the person to be
selected by them, such person shall be selected by lot from the
total membership of the arbitration panel. The two persons
selected for the board in the manner provided by the foregoing
provisions of this paragraph shall jointly select the third
member of the board. If they are unable to agree on the
selection, the third member shall be selected by lot from among
the total membership of the arbitration panel. No member of a
Enrolled Senate Bill 307 (SB 307-A) Page 7
board selected by lot shall be qualified to serve if he is an
officer or employee or is otherwise affiliated with any party to
the arbitration proceeding. Residence within the jurisdiction of
a party to the arbitration proceeding shall not constitute
affiliation within the meaning of this paragraph.
5. The board may sit in any state or subdivision party to the
proceeding, in the state of the taxpayer's incorporation,
residence or domicile, in any state where the taxpayer does
business, or in any place that it finds most appropriate for
gaining access to evidence relevant to the matter before it.
6. The board shall give due notice of the times and places of
its hearings. The parties shall be entitled to be heard, to
present evidence, and to examine and cross-examine witnesses. The
board shall act by majority vote.
7. The board shall have power to administer oaths, take
testimony, subpoena and require the attendance of witnesses and
the production of accounts, books, papers, records, and other
documents, and issue commissions to take testimony. Subpoenas may
be signed by any member of the board. In case of failure to obey
a subpoena, and upon application by the board, any judge of a
court of competent jurisdiction of the state in which the board
is sitting or in which the person to whom the subpoena is
directed may be found may make an order requiring compliance with
the subpoena, and the court may punish failure to obey the order
as a contempt. The provisions of this paragraph apply only in
states that have adopted this Article.
8. Unless the parties otherwise agree the expenses and other
costs of the arbitration shall be assessed and allocated among
the parties by the board in such manner as it may determine. The
commission shall fix a schedule of compensation for members of
arbitration boards and of other allowable expenses and costs. No
officer or employee of a state or local government who serves as
a member of a board shall be entitled to compensation therefor
unless he is required on account of his service to forego the
regular compensation attaching to his public employment, but any
such board member shall be entitled to expenses.
9. The board shall determine the disputed apportionment or
allocation and any matters necessary thereto. The determinations
of the board shall be final for purposes of making the
apportionment or allocation, but for no other purpose.
10. The board shall file with the commission and with each tax
agency represented in the proceeding: the determination of the
board; the board's written statement of its reasons therefor; the
record of the board's proceedings; and any other documents
required by the arbitration rules of the commission to be filed.
11. The commission shall publish the determinations of boards
together with the statements of the reasons therefor.
12. The commission shall adopt and publish rules of procedure
and practice and shall file a copy of such rules and of any
amendment thereto with the appropriate agency or officer in each
of the party states.
13. Nothing contained herein shall prevent at any time a
written compromise of any matter or matters in dispute, if
otherwise lawful, by the parties to the arbitration
proceeding. + }
{ +
ARTICLE X + }
{ +
ENTRY INTO FORCE AND + }
Enrolled Senate Bill 307 (SB 307-A) Page 8
{ +
WITHDRAWAL + }
{ + 1. This compact shall enter into force when enacted into
law by any seven states. Thereafter, this compact shall become
effective as to any other state upon its enactment thereof. The
commission shall arrange for notification of all party states
whenever there is a new enactment of the compact.
2. Any party state may withdraw from this compact by enacting a
statute repealing the same. No withdrawal shall affect any
liability already incurred by or chargeable to a party state
prior to the time of such withdrawal.
3. No proceeding commenced before an arbitration board prior to
the withdrawal of a state and to which the withdrawing state or
any subdivision thereof is a party shall be discontinued or
terminated by the withdrawal, nor shall the board thereby lose
jurisdiction over any of the parties to the proceeding necessary
to make a binding determination therein. + }
{ +
ARTICLE XI + }
{ +
EFFECT ON OTHER LAWS AND + }
{ +
JURISDICTION + }
{ + Nothing in this compact shall be construed to:
(a) Affect the power of any state or subdivision thereof to fix
rates of taxation.
(b) Apply to any tax or fixed fee imposed for the registration
of a motor vehicle or any tax on motor fuel, other than a sales
tax: provided that the definition of 'tax' in Article VIII 9 may
apply for the purposes of that Article and the commission's
powers of study and recommendation pursuant to Article VI 3 may
apply.
(c) Withdraw or limit the jurisdiction of any state or local
court or administrative officer or body with respect to any
person, corporation or other entity or subject matter, except to
the extent that such jurisdiction is expressly conferred by or
pursuant to this compact upon another agency or body.
(d) Supersede or limit the jurisdiction of any court of the
United States. + }
{ +
ARTICLE XII + }
{ +
CONSTRUCTION AND SEVERABILITY + }
{ + This compact shall be liberally construed so as to
effectuate the purposes thereof. The provisions of this compact
shall be severable and if any phrase, clause, sentence or
provision of this compact is declared to be contrary to the
constitution of any state or of the United States or the
applicability thereof to any government, agency, person or
circumstance is held invalid, the validity of the remainder of
this compact and the applicability thereof to any government,
agency, person or circumstance shall not be affected thereby. If
this compact shall be held contrary to the constitution of any
state participating therein, the compact shall remain in full
force and effect as to the remaining party states and in full
Enrolled Senate Bill 307 (SB 307-A) Page 9
force and effect as to the state affected as to all severable
matters. + }
________________________________________________________________
SECTION 3. ORS 314.606 is amended to read:
314.606. In any case in which the provisions of ORS 314.605 to
314.675 are inconsistent with the provisions of { - ORS
305.655 - } { + section 2 of this 2013 Act + }, the provisions
of ORS 314.605 to 314.675 shall control.
SECTION 4. { + ORS 305.655 is repealed. + }
SECTION 5. { + Section 2 of this 2013 Act becomes operative on
the day following the effective date of this 2013 Act. + }
SECTION 6. { + This 2013 Act takes effect on the 91st day
after the date on which the 2013 regular session of the
Seventy-seventh Legislative Assembly adjourns sine die. + }
----------
Passed by Senate May 9, 2013
.............................................................
Robert Taylor, Secretary of Senate
.............................................................
Peter Courtney, President of Senate
Passed by House June 3, 2013
.............................................................
Tina Kotek, Speaker of House
Enrolled Senate Bill 307 (SB 307-A) Page 10
Received by Governor:
......M.,............., 2013
Approved:
......M.,............., 2013
.............................................................
John Kitzhaber, Governor
Filed in Office of Secretary of State:
......M.,............., 2013
.............................................................
Kate Brown, Secretary of State
Enrolled Senate Bill 307 (SB 307-A) Page 11
