Bill Text: OR SB329 | 2013 | Regular Session | Engrossed

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Bill Title: Relating to state finance.

Spectrum: Committee Bill

Status: (Failed) 2013-07-08 - In committee upon adjournment. [SB329 Detail]

Download: Oregon-2013-SB329-Engrossed.html

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     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 968-1

                           A-Engrossed

                         Senate Bill 329
                  Ordered by the Senate May 23
            Including Senate Amendments dated May 23

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)

                             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.

  Modifies statutory corporate kicker provision to match
amendment to Oregon Constitution by Ballot Measure 85 (2012).
Retains excess corporate income and excise tax revenues in
General Fund for use for kindergarten through 12th grade public
education.
    { - Declares emergency, effective on passage. - }
                        A BILL FOR AN ACT
Relating to state finance; creating new provisions; and amending
  ORS 291.349 and 305.792.
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 - }  { +  retained in the General Fund and used to
provide additional funding for public education, kindergarten
through grade 12 + }.
  (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,
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.
  (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   { - amounts of
credit - }   { + amount of credits + } for purposes of subsection
 { - (3) or - }  (4) of this section.  The percentage
 { - amounts - }   { + amount + } determined shall be
 { + the + } 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 the tax year on which the credit is computed but
who are not required to file returns in the year in which the
credit could be claimed.
  SECTION 2. 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 3. { +  The amendments to ORS 291.349 and 305.792 by
sections 1 and 2 of this 2013 Act apply to biennia beginning on
or after July 1, 2013. + }
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