SENATE SPECIAL SESSION COMMITTEE ON REVENUE

 

 

June 19, 2002 Hearing Room A

6:00 p.m.         Tapes 17

 

MEMBERS PRESENT:            Sen. Ted Ferrioli, Chair

Sen. Joan Dukes

Sen. Bill Fisher

Sen. John Minnis

Sen. Cliff Trow

 

 

STAFF PRESENT:                  Paul Warner, Administrator

Patsy Wood, Administrative Support

 

 

MEASURE/ISSUES HEARD:            HB 4050A  Work Session

                                                HB 4054A  Work Session

 

These minutes are in compliance with Senate and House Rules.  Only text enclosed in quotation marks reports a speaker’s exact words.  For complete contents, please refer to the tapes.

 

TAPE/#

Speaker

Comments

TAPE 17, A

002

Chair Ferrioli

Calls the meeting to order at 6:36 p.m. and opens a work session on HB 4050A which extends period during which 9-1-1 emergency communications tax is imposed on telephone service subscribers.

WORK SESSION  HB 4050A

 

Sen. Dukes

Asks how this is back in committee when the bill had been previously passed out of committee.

 

Chair Ferrioli

Responds that the bill was put back in committee from the Senate floor.

 

Dick Yates

Legislative Revenue Economist.  Explains the A2 amends which delete “2007” on page 1, line 13, and insert “2008” (EXHIBIT A).

 

Sen. Minnis

Moves the A2 amendments.

 

Sen. Trow

Points out this is a substantive change to the bill.

 

Chair Ferrioli

A2 amendments adopted with Sen. Fisher a “no”.

 

Sen. Minnis

Moves HB 4050A to the floor DO PASS AS AMENDED.

 

Chair Ferrioli

No objection.  Sen. Minnis will carry.

 

Chair Ferrioli

Closes the work session on HB 4050A and recesses the committee at 6:40 p.m. until 7:30 p.m.

 

Chair Ferrioli

Reconvenes the committee at 7:41 p.m. and opens a work session on HB 4054A appropriating money by raising cigarette taxes.

HB 4054A WORK SESSION

 

Dick Yates

Introduces the A2 amendments to HB 4054A (EXHIBIT B).  Explains the amendments section by section. 

 

Sen. Dukes

Asks if tax is retroactive to July 1, 2002.

 

Yates.

The bill takes effect 30 days after the election, but sections of the bill are retroactive to …

 

Sen. Minnis

Moves the A2 amendments.

 

Sen. Dukes

Asks if this is going to conference committee to move the bill along

 

Chair Ferrioli

 

 

Sen. Fisher

Section 5, Subsection 3

 

Yates

Says the tax is 27.5 mils per cigarette

 

Sen. Fisher

So there is a different stamp for different pack sizes

 

Yates

Yes.

 

Sen. Fisher

 

 

Chair Ferrioli

 

 

Sen. Fisher

 

 

Yates

Bill changes the payment made to purchase cigarette stamps and will involve processing in Jan 2003.  Department says it is minimal and will absorb that cost.

 

Chair Ferrioli

Section 11 – who is actual taxpayer

 

Mark Gardner

Philip Morris.  Urges committee to maintain…___ is the ultimate payer of the tax.  Important accountability…says Section 11 and 12 delete an important consumer protection which is a disclosure of the amount of tax as part of the purchase price.

 

Sen. Trow

What is the origin of amendment

 

Yates

DOJ made comments to counsel.

 

Gardner

Says this disclosure has not been deleted when the tax has been raised.

 

Sen. Dukes

Asks when applies

 

Yates

From July 2002 on

 

Dexter Johnson

Legislature counsel.  Says DOJ was concerned about language in lines 16 thru 18 on page ___ relating to ORS ____.  Says the tax has to be retroactive on the distributor b/c you cannot retroactively tax consumers.

 

Chair Ferrioli

 

 

Sen. Minnis

 

 

Johnson

Earliest bill could go into effect is October 18.

 

Minnis

Asks why there is language

 

Johnson

Says there is not … ORS 323.030

 

Sen. Minnis

Says the inconsistent language makes him uncomfortable to move this.

 

Sen. Fisher

Asks about the retroactivity of distributor paying taxes from July 1 to October 18, but cannot charge the consumer.

 

Johnson

Says there is a period of uncertainty where distributor does not know the tax imposed.  Distributors tell Revenue the number of packs distributed and the tax will be retroactively imposed on those.

 

Chair Ferrioli

 

 

Johnson

Describes retroactive taxes

 

Chair Ferrioli

Asks for case law

 

Johnson

Relates 1993 Atlantic Richfield court case where a tax was retroactively imposed.

 

Chair Ferrioli

…asks who is responsible for the tax and how much/.

 

Johnson

Says distributor is responsible, but price is unknown until voters vote.

 

Sen. Fisher

Feels this overcharges individuals

TAPE 18, A

 

Sen. Trow

 

 

Johnson

Doesn’t believe so . . . lines 24 thru 26

 

Sen. Trow

So if it came out, it wouldn’t change the bill.

 

Johnson

No.

 

Sen. Trow

Asks if not essential, why fight over it.

 

Sen. Minnis

Calls for the motion.  Says this bill needs to get into a conference committee to fix the flaws.

 

Chair Ferrioli

Passes A2 amendments 4-1 Fisher no.

 

Sen. Trow

Moves 4054A as amended DO PASS.

 

Sen. Fisher

Voices objections to this legislation

 

Sen. Minnis

Courtesy vote in committee, vote no on floor

 

Chair Ferrioli

Has problems with this bill also.  DOJ could have made this a stand alone bill (sections 11 & 12).  Tax is hard on rural communities where tobacco use is high.

 

Chair Ferrioli

Moves to floor DO PASS AS AMENDED.  4-1 Fisher no.  Sen. Trow will carry.

 

Chair Ferrioli

Closes the work session and recesses the meeting at 8:15 p.m.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Submitted By,                        Reviewed By,

 

 

 

Patsy Wood,                        PAUL WARNER,

Administrative Support                        Administrator

 

EXHIBIT SUMMARY

 

A -