WORK SESSION: HB 2281 B-ENG.

TAPE 1 A

 

CONFERENCE COMMITTEE ON HB 2281

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JUNE 15, 2001 10:00 A.M. - HEARING ROOM A - STATE CAPITOL BUILDING

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Members Present: Representative Lane Shetterly, Chair

Representative Deborah Kafoury

Representative Max Williams

Senator Ted Ferrioli

Senator Lee Beyer (10:09 arrived)

Senator Charles Starr

 

Staff: Paul Warner, Legislative Revenue Officer

Joan Green, Committee Assistant

 

TAPE 1, SIDE A

005

Chair Shetterly

Meeting called to order at 10:00 a.m. and noted that the meeting was for informational purposes only of the revenue impacts for other options being considered.

 

OPENED WORK SESSION ON HB 2281 B-ENG.

 

017

Paul Warner

Reviewed the Senate amendments, which would provide telecommunication and utilities taxpayers the option of staying with the current double weighted sales factor or moving to the 100% sales factor when available.

 

033

Chair Shetterly

Requested information on the difference in definitions in the Senate amendments.

 

037

Warner

Explained where the definitions for the Senate amendments came from. Reported on conversations with taxpayers in the telecommunication industry that thought there might be alternative language that they are more comfortable with.

 

Continued with review of measure and discussed the sales only apportionment formula for the corporate income tax based on 1998 tax returns, (Page 2, Exhibit 1).

 

079

Warner

Reviewed the sales factor apportionment options, (Page 1, Exhibit 2).

 

094

Sen. Ferrioli

Noted the question of efficiency in the last two options presented, the reduction does not become effective in producing the best effects until at least 80% is reached, (Page 1, Exhibit 2).

 

 

 

Questions and discussion regarding at what point a single sales factor becomes effective.

 

 

LRO Staff

Distributed written material from Oregon Center for Public Policy, Chuck Sheketoff. (Exhibit 2)

 

134

Chair Shetterly

Meeting adjourned at 10:18 a.m.

 

Submitted by, Reviewed by,

 

 

 

Joan Green Kim Taylor James

Committee Assistant Revenue Office Manager

 

Exhibit Summary:

1.      HB 2281, Spreadsheet of examples and effects, Warner, 2 pages

2.      HB 2281, Testimony, Sheketoff, 6 pages