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ORIENTATION MEETING |
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TAPE 28 A-B,-29
A |
FEBRUARY 3,
2003 8:30 AM STATE CAPITOL BUILDING
Members Present: Representative Lane Shetterly, Chair
Representative
Wayne Scott, Vice Chair
Representative
Joanne Verger, Vice Chair
Representative
Phil Barnhart
Representative
Vicki Berger
Representative
Pat Farr
Representative
Mark Hass
Representative
Elaine Hopson
Representative
Max Williams
Witness Present: Craig Fisher, Research Manager, Department
of Revenue
Staff Present: Paul
Warner, Legislative Revenue Officer
Dick
Yates, Legislative Revenue Office
Kathy
Tooley, Committee Assistant
TAPE 1, SIDE A
|
004 |
Chair Shetterly |
Calls meeting to order at 8:33 a.m. |
|
026 |
Craig Fisher |
Gave Committee an overview of the “Tax
Expenditure Report”, (Exhibit 1), as useful resource when considering the tax
system. The concept of tax
expenditures applies to the tax law provisions that impart special treatment
to a group of tax payers. Income
excluded from taxation, deductions, credits, or property tax exemptions are
considered tax expenditures because they have a similarity to direct spending. |
|
010 |
Fisher |
Thee Budget Accountability Act of
1995 mandates this publication, submitted by the Governor to the Legislature
along with the Governor’s recommended budget. The Department of Administrative Services and the Department of
Revenue assist the Governor with this report which includes federal or state exemptions. |
|
033 |
Fisher |
There are 15 tax programs, 350 total
tax expenditures, 200 of which are in the Income Tax Program, and 100 in the
Property Tax Program. The report also
includes information on estimated receipts and tax expenditures by program. |
|
081 |
Fisher |
Discussed income tax expenditures
and explained types of exclusions available on a federal and state level. |
|
159 |
Fisher |
Information required by Act for all
tax expenditures include: statutory authority, purpose, revenue loss
estimates, and grouped according to programs or functions. Each expenditure
is to be evaluated for effectiveness on two bases: does expenditure accomplish its purpose and is it the most fiscally
effective means for accomplishing its purpose. Also an analysis of who benefits and sunset recommendations is required
of governor. |
|
170 |
Paul Warner |
Directed the Committee to Page 7 which
lists sunsets for this session that require legislative action. |
|
188 |
Fisher |
Provided Committee examples of Tax
Expenditures by budget category and its distribution. Described credits for each program. Directed the Committee’s attention to two
indexes useful in reviewing the report, “Index of Tax Expenditures by Tax
Program”, (Table 1, Page 9, Exhibit 1), and “Index of Tax Expenditures by
Program/Function, (Index 2, Page 17, Exhibit 1). |
|
259 |
Fisher |
Described process for evaluating tax
expenditures programs. Department of
Revenue must identify changes since prior report, and provide information on
new or modified tax expenditures to agencies that have program responsibility
or subject matter expertise. |
|
302 |
Fisher |
Over 30 agencies perform evaluations,
does it accomplish its purpose and is it the most fiscally effective means of
accomplishing its purpose. Evaluations
are then reviewed by DAS and Governor’s office. |
|
330 |
Fisher |
Directed the Committee’s attention
to revenue estimate issues:
interactions between expenditures which could affect revenue impact;
interactions between credits; they are static estimates, and do not take into
account behavioral changes that could result from elimination of expenditure. Reports losses and shifts to property tax
rolls. Noted the Department of
Revenue’s estimation methodology is reviewed by Legislative Revenue Office
and the Office of Economic Analysis. |
|
378 |
Chair Shetterly |
Tax credits wouldn’t reflect current
level of estimated revenues, some of the revenue impacts of these tax
expenditures would be lower due to receiving less corporate income against
corporate credits? |
|
407 |
Fisher |
The report attempts to take the
December forecast into account. Some
of the credits can be taken forward, for example the pollution control
credits can be taken over a 10 year period.
Unused credits are another issue, taxpayers that don’t offset all
their liability in the current year can carry it forward up to 5 years. |
|
440 |
Fisher |
In summary, the report provides
detailed information about Oregon’s tax system and how the programs work. |
TAPE 29, SIDE A
|
022 |
Rep. Hass |
Should take a look at tax credits this
session, but what is the most effective way to do it, rather than going
through each credit? Vic Atiyeh had
recommended a task force look into them, there are a fair number of
evaluations which indicate a program is not achieving its purpose or goals. |
|
035 |
Chair Shetterly |
Different from Ways and Means
process of looking at every budget, every session. Most programs listed in the Tax Expenditure Report are not
voted on each session and take on a life of their own, agreed from experience
in earlier sessions that they should not go through each page. |
|
051 |
Rep. Hass |
Suggested some could be pared down
instead of repealed. |
|
061 |
Chair Shetterly |
Said the Committee may ask Warner to
work with Legislative Fiscal to identify those tax expenditures to the budget
analysts working on each of the program areas, as a way to address concerns as
budgets are being built. |
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074 083 |
Warner |
Told the Committee that the Fiscal
Office has identified the Tax Expenditure Report as a tool they are going to
use this session. End of overview on Tax Expenditure
Report. |
LOTTERY OVERVIEW
|
089 |
Dick Yates |
Presented of overview of “Oregon
State Lottery”. (Page 1, Slide Top,
Exhibit 2). |
|
121 |
Yates |
Continued presentation beginning
“Lottery Terminology”, (Page 1, Slide Bottom, Exhibit 2). |
|
172 |
Yates |
Continued presentation, beginning
“Lottery History”, (Page 2, Slide Top, Exhibit 2). |
|
202 |
Yates |
Continued presentation, beginning
“Lottery History (cont.), (Page 2, Slide Bottom, Exhibit 2). Questions and discussion
interspersed. |
|
252 |
Yates |
Continued presentation, beginning
“Traditional Lottery Games”, (Page 3, Slide Top, Exhibit 2). |
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275 |
Yates |
Continued presentation, beginning
“Traditional Game Revenue”, (Page 3, Slide Bottom, Exhibit 2). |
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285 |
Yates |
Continued presentation, beginning
“Traditional Game Revenue”, (Page 4, Slide Top, Exhibit 2). |
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312 |
Yates |
Continued presentation, “Video
Lottery Revenue”, (Page 4, Slide Bottom, Exhibit 2). |
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327 |
Yates |
Continued presentation, “Video
Lottery Revenue”, (Page 5, Slide Top, Exhibit 2). |
|
334 |
Yates |
Continued presentation, beginning
“Total Lottery Revenue”, (Page 5, Slide Bottom, Exhibit 2). |
|
340 |
Yates |
Continued “Total Lottery Revenue
(Page 6, Slide Top, Exhibit 2). |
|
347 |
Yates |
Continued presentation, beginning “Lottery
Transfers”, (Page 6, Slide Bottom, Exhibit 2). Questions and discussion
interspersed. |
|
417 |
Yates |
Continued presentation, beginning
“2001-03 Lottery”, (Page 7, Slide Top, Exhibit 2). |
TAPE 28, SIDE B
|
047 |
Yates |
Continued presentation, beginning
“Issues”, (Page 7, Slide Bottom, Exhibit 2). Question and discussion
interspersed. |
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077 |
Yates |
Continued presentation, beginning
“Line Games”, (Page 8, Slide Top, Exhibit 2). Questions and discussion
interspersed. |
|
135 |
Yates |
Continued presentation, beginning
“Video Prize Percent”, (Page 8, Slide Bottom, Exhibit 2). |
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143 |
Yates |
Continued presentation, beginning
“Annual Growth: Video”, (Page 9,
Slide Top, Exhibit 2). |
|
172 |
Yates |
Continued presentation, beginning
“Video Compensation Rates”, (Page 9, Slide Bottom, Exhibit 2). |
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210 |
Yates |
Continued presentation, beginning
“Retailer Compensation”, (Page 10, Slide Top, Exhibit 2). Question and discussion
interspersed. |
|
260 |
Yates |
Continued presentation, beginning
“Lottery Expense Percents”, (Page 10, Slide Bottom, Exhibit 2). |
|
332 |
Yates |
Continued presentation, beginning
“Sales – f(Advertising)”, (Page 11, Slide Top, Exhibit 2). |
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372 |
Yates |
Continued presentation, beginning “Lottery
Advertising”, (Page 11, Slide Bottom, Exhibit 2). Questions and discussion
interspersed. |
|
383 |
Yates |
Continued presentation, beginning
“Implications,” (Page 12, Slide Top, Exhibit 2). Questions and discussion
interspersed. |
|
443 |
Chair Shetterly |
Meeting adjourned at 9:55 a.m. |
Tape Log Submitted by,
Kathy Tooley, Committee Assistant Reviewed
by Kim Taylor James
Exhibit Summary:
1.
Fisher, Tax Expenditure Report, 383 pages.
2.
Yates, Oregon State Lottery,
Powerpoint Presentation, 12 pages.