WORK SESSION: HB 3057

TAPE 1 A

 

CONFERENCE COMMITTEE ON HB 3057

_______________________________________________________________________________

 

JULY 4, 2001 – 4:00 P.M. - HEARING ROOM A - STATE CAPITOL BUILDING

_______________________________________________________________________________

 

Members Present:                     Representative Lane Shetterly, Chair

                                                Representative Chris Beck

                                                Representative Bill Witt

                                                Senator Jason Atkinson

                                                Senator Lee Beyer

                                                Senator Steve Harper

 

Staff:                                        Paul Warner, Legislative Revenue Officer

                                                Lizbeth Martin-Mahar, Legislative Revenue Office

                                                                Carol Phillips, Committee Assistant

 

Invited Testimony:                     John Phillips, Department of Revenue

 

TAPE 1, SIDE A

005

Chair Shetterly

Meeting called to order at 4:03 p.m.

 

 

 

006

Lizbeth Martin-Mahar

Gave overview of HB 3057.  (Exhibit 1.)  Stated that the original bill as approved by the House:

·        Allows land within boundaries of cities or urban growth areas to be designated as riparian land;

·        Provides a partial property tax exemption if cities and counties adopt ordinances permitting the designation;

·        Applies to tax years beginning July 1, 2002.

 

 

 

012

Martin-Mahar

Added that the Senate Rules Committee deleted the original bill and added a conflict amendment between HB 2272 and SB 67.  This was necessary to retain income tax bracket indexing changes in HB 2272 if SB 67 becomes law.

 

 

 

019

Martin-Mahar

Discussed what the (-A3) amendments would do for the bill.

·        Keeps the conflict amendment passed by the Senate.

·        Adds original provisions in HB 3057, and further adds two clarifying provisions.

·        Includes contents of HB 3405.

 

 

 

042

Rep. Beck

MOTION:

MOVES THE (-A3) AMENDMENTS TO HB 3057-A BE ADOPTED.

 

 

 

049

Chair Shetterly

ORDER:

HEARING NO OBJECTION, THE (-A3) AMENDMENTS TO HB 3057 ARE ADOPTED.

 

 

 

050

Rep. Witt

Discussed the (-A6) amendments.  The (-A6)s incorporate provisions that were passed in HB 2278, but were not discussed in Senate Revenue.  The (-A6)s address the issue of personal property tax returns and reduce the current statutory penalty from 100% of the tax due to 50% of the tax if a filer is 120 days late in filing.

 

 

 

060

Chair Shetterly

Stated that from testimony offered during discussion in the House Revenue Committee, this provision was agreed to by county tax collectors and assessors.

 

 

 

070

Martin-Mahar

Affirmed that this bill had been heard in the Senate Revenue Committee.  When heard on the House side the Association of Oregon Counties had agreed to provisions of the bill.  By the time the bill reached Senate Revenue, county tax collectors had expressed some concerns regarding lack of consistency, so the bill did not move out of committee.

Questions and answers interspersed.

 

 

 

084

Rep. Witt

Added that the bill was initially introduced at a 25% rate and lowered the penalty from 25% to 10% for returns filed 30 to 120 days late.  Over 120 days late the penalty was reduced from 100% to 25%.  After conversations with Associated Oregon Counties and securing their agreement not to oppose the bill, it was amended lowering the penalty from 100% to 50%.  This was not opposed in House Revenue.  New opposition appeared when the bill reached Senate Revenue.  The 100% penalty imposed on late filers is extremely onerous.  A penalty of that size encourages non-compliance to file at all.

 

 

 

108

Various

General discussion regarding differences in House and Senate rules and procedures.

 

 

 

142

Rep. Witt

As was presented in a previous hearing on this bill, said that the revenue impact is uncertain.  Using 1999 county survey information and assuming an annual growth of 3% in personal property tax accounts, it is estimated that $1.6 million per year will be reduced from property taxes statewide from the penalty tax rate changes.  Pointed out that Associated Oregon Counties did not have a problem with provisions in this bill.

Discussion, and questions and answers followed.

 

 

 

182

Sen. L. Beyer

In answer to a question regarding how this bill was received in Senate Revenue, pointed out that the strongest objection came from Sen. Minnis, whose issue was tax evaders and not owners of small business who simply forgot to deal with the matter.  Sen. Minnis had stated, from his perspective as a police officer, that if someone was intentionally trying to violate the law, then they should pay 100% penalty.

 

 

 

209

John Phillips (invited by Chair to testify)

Provided information from discussion of this bill in the Senate Revenue Committee.  Testimony indicated that taxpayers will often not file a personal property tax return.  In that event assessors will assume value, mail a tax statement, the taxpayer will pay it, and the same thing will happen year after year.  In many cases the tax is actually less than what the taxpayer would pay if filing their own personal property tax return in a timely manner.

 

 

 

218

Paul Warner

Stated that Sen. Beyer characterized the situation in Senate Revenue correctly regarding Sen. Minnis’ concern about the deterrence effect.  Sen. Minnis was concerned about reducing the penalty thereby reducing a deterrence factor for those people evading filing or intentionally paying late.

 

 

 

225

Sen. L. Beyer

Suggested that members of this conference committee consult with Sen. Ferrioli before proceeding with action on this bill.

 

 

 

229

Chair Shetterly

Recessed meeting from 4:20 p.m. to 4:25 p.m.

 

 

 

231

Rep. Witt

MOTION:

MOVES THE (-A6) AMENDMENTS TO HB 3057 BE ADOPTED.

 

 

 

233

Chair Shetterly

ORDER:

HEARING NO OBJECTION, THE CHAIR SO ORDERED.

 

 

 

234

Chair Shetterly

MOTION:

MOVES THE HOUSE CONCUR IN THE SENATE AMEND-MENTS DATED JUNE 25, AND THE BILL BE AMENDED BY THE (-A3) AND (-A6) AMENDMENTS AND BE REPASSED.

 

 

 

238

Chair Shetterly

ORDER:

ROLL CALL VOTE: MOTION PASSES: 5 – 0 – 1

SENATORS VOTING AYE: ATKINSON, HARPER

SENATOR EXCUSED: L. BEYER

REPRESENTATIVES VOTING AYE: BECK, WITT, SHETTERLY

Sen. L. Beyer will carry the bill on the Senate Floor.

Rep. Beck will carry the bill on the House Floor.

 

 

 

248

Chair Shetterly

Adjourned meeting at 4:26 p.m.

 

Submitted by,                                                               Reviewed by,

 

 

 

Carol Phillips                                                                Kim Taylor James

Committee Assistant                                                     Revenue Office Manager

 

Exhibit Summary:

1.      HB 3057, Martin-Mahar, Amendment Summary, 1 pp.

2.      HB 3057-A, Rep. Beck, (-A3) amendments (DJ/ps) 7/2/01, 7 pp.

3.      HB 3057-A, Rep. Witt, (-A5) amendments (DJ/ps) 7/4/01, 4 pp.

4.      HB 3057-A, Rep. Witt, (-A6) amendments (DJ/ps) 7/4/01, 2 pp.

5.      HB 3057-A, Martin-Mahar, Revenue Impact Statement, 1 pp.

6.      HB 3057-A, Martin-Mahar, Staff Measure Summary, 1 pp.

7.      HB 3057, Martin-Mahar, Staff Measure Summary, 1 pp.

8.      HB 3057, Martin-Mahar, Revenue Impact Statement, 1 pp.

9.      HB 3057, Martin-Mahar, Fiscal Impact Statement, 1 pp.