ORIENTATION MEETING

BILL INTRODUCTION LC 931

 

TAPE 5-6, A-B

TAPE 7 A

 

HOUSE REVENUE COMMITTEE

JANUARY 20, 2003   8:30 PM   STATE CAPITOL BUILDING

 

Members Present:                        Representative Lane Shetterly, Chair

                                                Representative Joanne Verger, Vice Chair

                                                Representative Phil Barnhart

                                                Representative Vicki Berger

                                                Representative Pat Farr

                                                Representative Mark Hass

                                                Representative Elaine Hopson

                                                Representative Max Williams

 

Members Excused:                      Representative Wayne Scott, Vice Chair

 

Witnesses                                 Debra Buchanon, Agency Legislative Coordinator, Department of Revenue

 

Staff Present:                            Paul Warner, Legislative Revenue Officer

                                                Lizbeth Mahar, Legislative Revenue Office

                                                Kathy Tooley, Committee Assistant

 

 

 

TAPE 5, SIDE A

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Chair Lane Shetterly

Calls meeting to order at 8:30 a.m.  Meeting to orient committee on tax system and bill introduction.

 

 

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Lizbeth Martin-Mahar

 

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Presented slide show on “Oregon Income Tax” (Page 1, Slide 1, Exhibit 1).

 

Continued with presentation, beginning with “Oregon Income and Property Taxes”,.(Page 1, Slide 2, Exhibit 1).

 

Continued with presentation, beginning with “General Fund Revenues”, (Page 1, Slide 3, Exhibit 1).

 

Continued with presentation, beginning with “Oregon Income Taxes Personal Income Tax (Page 2, Slide 4, Exhibit 1).

 

Continued with presentation, beginning with “Oregon Personal Income Tax” (Page 2, Slide 5, Exhibit 1).

 

Discussion interspersed.

 

Continued with presentation, beginning with “Top Five or Subtractions – Tax Year 2000:  Total Full-Year Subtractions = $5.1 million” (Page 2, Slide 6, Exhibit 1).

 

Discussion interspersed.

 

Continued with presentation, beginning with “Top Five Federal Itemized Deductions – Tax Year 2000, Total Full Year Deductions=$9.1 billion” (Page 3, Slide 7, Exhibit 1).

 

Discussion interspersed.

 

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Martin-Mahar

 

 

 

Martin-Mahar

 

 

Martin-Mahar

 

 

 

Continued with presentation, beginning with “Number of Standardized and Itemized Full-Year Returns (thousands) and Percent of Returns Tax Year 1990-2000”, (Page 3, Slide 8, Exhibit 1).

 

Continued with presentation “Oregon Personal Income Tax” (Page 3, Slide 9, Exhibit 1).

 

Continued with presentation, beginning “2002 Personal Income Tax Rate”, (Page 4, Slide 10, Exhibit 1).

 

Discussion interspersed.

 

 

TAPE 6, SIDE A

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Martin-Mahar

Continued with presentation, beginning “Top Five OR Credits, Tax Year 2000, Total Full-Year Credits = $423 million”, (Page 4, Slide 11, Exhibit 1).

 

Discussion interspersed.

 

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Martin-Mahar

 

 

Martin-Mahar

Continued with presentation, beginning “Income Tax Credits”, (Page 4, Slide 12, Exhibit 1).

 

Continued with presentation, beginning “Income Tax Rate and Credit Rate by Income”, (Page 5, Slide 13, Exhibit 1).

 

Questions and discussion interspersed.

 

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Martin-Mahar

Continued with presentation, beginning “Distribution of Tax Returns” (Page 5, Slide 14, Exhibit 1).

 

Question and discussion interspersed.

 

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Martin-Mahar

Continued with presentation, beginning “Components of AGI 1990 $35 billion”, (Page 5, Slide 15, Exhibit 1).

 

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Martin-Mahar

Continued with presentation, beginning “Components of AGI 2000: $66 billion” (Page 6, Slide 16, Exhibit 1).

 

Question and discussion interspersed.

 

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Martin-Mahar

Continued with presentation, beginning “Change in Major Components of AGI Tax Year 2000 and 2001”.  (Page 6, Slide 17, Exhibit 1).

 

Questions and discussion interspersed.

 

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Martin-Mahar

Continued with presentation, beginning “Distribution of AGI Components, 1990 AGI $35 billion”, (Page 6, Slide 18, Exhibit 1).

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Martin-Mahar

Continued with presentation, beginning “Distribution of AGI Components, 2000 AGI $66 billion”, (Page 7, Slide 19, Exhibit 1).

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Martin-Mahar

Continued with presentation, beginning “Average AGI, 2000 AGI: $43,615, 1990 Average AGI $26,610”, (Page 7, Slide 20, Exhibit 1).

 

Questions and discussion interspersed.

 

TAPE 5, SIDE B

 

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Martin-Mahar

Continued with presentation, beginning “Average AGI by County – 2000”, (Page 7, Slide 21, Exhibit 1).

 

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Martin-Mahar

 

 

 

 

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Continued with presentation, beginning “Average Tax by County – 2000”, (Page 8, Slide 22, Exhibit 1).

 

Question and discussion interspersed.

 

Continued with presentation, beginning “Average Tax by County – 1990”, (Page 8, Slide 23, Exhibit 1).

 

Continued with presentation, beginning “Number of Tax Returns:  Tax Withheld, Estimated Payments and Refunds – 2000”, (Page 8, Slide 24, Exhibit 1).

 

Continued with presentation, beginning “Tax Withheld, Estimated Payments & Refunds – 2000”, (Page 9, Slide 25, Exhibit 1).

 

Continued with presentation, beginning “Breakdown by Industry and Month of Tax Withholdings Index - 1998-2002”, (Page 9, Slide 26, Exhibit 1).

 

Question and discussion interspersed.

 

Continued with presentation, beginning “Industry Sectors With a Decline in Withholdings Between July 2001 and Nov. 2002”. (Page 10, Slide 28, Exhibit 1).

 

Questions and discussion interspersed.

 

 

TAPE 6, SIDE B

 

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Martin-Mahar

 

 

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Martin-Mahar

Continued with presentation, beginning “Part Year and Nonresident Taxpayers”, (Page 10, Slide 29, Exhibit 1).

 

Continued with presentation as to how taxes are calculated for part-Year residents and nonresidents, beginning “Part Year and Nonresident Taxpayers”, (Page 10-11, Slides 30-32, Exhibit 1).

 

Continued with presentation, beginning with “Check off Donations”, (Page 11, Slide 33, Exhibit 1).

 

Questions and discussion interspersed.

 

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Chair Shetterly

 

 

 

Debra Buchanon

 

Max Williams

 

The Chair recognized and inquired of Debra Buchanon from the Department of Revenue, if a list of check-off donations was printed on the tax form or in the instruction book for 2000?

 

Affirmed that check-off donations for 2000 were all on the tax form.

 

Inquired how many check-off donations are going to be on the current form?

 

 

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Debra Buchanon

Stated that the charities on the slide (Page 11, Slide 33, Exhibit 1) are on the form and there is a line to select charities from those listed in the instruction book.

 

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Martin-Mahar

Continued with presentation, beginning “Surplus Kicker and Potential Changes in Federal and State Income Tax Laws”, (Page 12, Slide 34, Exhibit 1).

 

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Martin-Mahar

 

 

Martin-Mahar

Continued with presentation, beginning “2% Kicker”, (Page 12, Slide 35, Exhibit 1).

 

Continued with presentation, beginning “History of Surplus Kicker Refunds (1979/81 – 2001/03)”, (Page 12, Exhibit 1).

 

Question and discussion interspersed.

 

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Martin-Mahar

 

Continued with presentation, beginning “Measure 28”, (Page 13, Slide 37, Exhibit 1).

 

Question and discussion interspersed.

 

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Martin-Mahar

 

 

Martin-Mahar

Continued with presentation, beginning “Bush’s Proposed Economic Recovery Plan”, (Page 13, Slide 38, Exhibit 1).

 

Continued with presentation, beginning “Dividend Income and Number of Returns”, (Page 13, Slide 39, Exhibit 1), referring back to Slide 38.

 

Question and discussion interspersed.

 

TAPE 7, SIDE A

 

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Shetterly

Bill introduction of Draft LC 931, the tax revisor’s bill from Legislative Counsel, working with the Department of Revenue and Legislative Revenue Office.  This revisor’s bill is technical only.

 

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Williams

MOTION:  MOVES INTRODUCTION OF LC 931.

 

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Shetterly

ORDER:  THERE BEING NO OBJECTION SO ORDERS. 7-0-2 (Rep. Scott, Rep. Farr were not in the room. Chair Shetterly clarifies the bill is entered as a Committee Bill, but does not indicate support or opposition by the Committee, but enters it into the process.

 

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Chair Shetterly

Meeting adjourned at 10:35 a.m.

 

 

Tape Log Submitted by,

 

 

 

Kathy Tooley, Committee Assistant Reviewed by Kim Taylor James

 

Exhibit Summary:

1.       Personal Income Taxes – 2003 Legislative Orientation, Exhibit 1, 13 pages

2.       Chair Shetterly, LC 931 Draft, 67 pages.