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PUBLIC HEARING HB 2186, PUBLIC
HEARING AND WORK SESSION HB 2339 |
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TAPES 42 A-B,
43 A |
February
13, 2003, 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
Witnesses Present: Phil Donovan, Portland Housing
Authority
Paul
Parker, Portland Housing Authority
Debra
Buchanan, Department of Revenue
Robert
Douglas, Oregon Society of Certified Public Accountants
Kim
Spaulding, OSCPA
Robert
Carus, OSCPA
Bruce
Krohn, OSCPA
Staff Present: Mazen
Malik, Legislative Revenue Office
Lizbeth
Martin-Mahar, Legislative Revenue Office
Kathy
Tooley, Committee Assistant
TAPE 42, SIDE A
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007 |
Chair Shetterly |
Calls meeting to order at 8:36 a.m. |
OPENED PUBLIC HEARING HB 2339
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012 |
Mazen |
Provided background and history of HB
2339, Staff Measure Summary, (Exhibit 1), and discussed exemption statute,
(Exhibit 2). |
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030 |
Phil Donovan |
Testified in favor of HB 2339. Provided background on conflicts between ORS
456.225 and ORS 307.112 and the need for referencing between the two
statutes. |
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064 |
Chair Shetterly |
Clarifies, ORS 456.225 exempts
housing authorities from annual application for property tax exemption. ORS 307.112 requires annual application
for property tax exemption. Is that what the issue is? |
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078 |
Donovan |
That’s correct. Housing authorities across Oregon did not
know this existed. |
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083 |
Paul Parker |
Testified in favor of HB 2339,
citing specific Portland Housing Authority’s experience being assessed with a
$64,394 tax bill, (Exhibit 3). Without this bill, the authority would not be able to provide
affordable housing. |
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110 |
Chair Shetterly |
The alternative would be to amend
ORS 456.225 to expressly require housing authorities to file every year, which
would require more work on behalf of the authority and the tax assessor’s
office. |
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109 |
Rep. Farr |
Cited experience with Eugene housing
authority, the not-for-profits would claim that the housing authority board
had unfair advantage in providing the service. Does this address that? |
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129 |
Parker |
If the State of Oregon wants to
provide affordable housing to people, who could otherwise not afford it, the
state could extend this to non-profits, not take it away from the housing
authority. |
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133 |
Rep. Verger |
Haven’t these referenced ORS’s been
in statute for quite awhile, why would you get a bill all of a sudden, since
they are not related? What prompted
the assessor to change? |
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139 |
Parker |
We paid it because we didn’t file
with the county assessor. |
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151 |
Chair Shetterly |
Cited situation where someone
reviewing the ORS picked up on possible tax liability. |
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171 |
Mazen |
Further described ORS 307.112 deals
with property that is leased or leased to be purchased. |
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175 |
Chair Shetterly |
Closed Public Hearing on HB 2339. |
OPENED WORK SESSION ON HB 2339
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179 |
Rep. Farr |
MOTION: MOVED HB 2339 TO THE
HOUSE FLOOR WITH A DO PASS RECOMMENDATION. |
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191 |
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ROLL CALL: MOTION PASSED 9-0-0 REPRESENTATIVES VOTING AYE:
Barnhart, Berger, Farr, Hass, Hopson, Scott, Verger, Williams, Chair
Shetterly. Rep. Farr will carry the bill. |
OPENED PUBLIC HEARING HB 2186
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212 |
Chair Shetterly |
Explains HB 2186 as a biennial
reconnect bill, which provides an opportunity to look at tax law changes that
have occurred in the last two years. |
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212 230 |
Lizbeth Martin-Mahar Martin-Mahar |
Provided background and history of HB
2186, Staff Measure Summary, (Exhibit 4). HB 2186 does not have a revenue
impact, but the rolling reconnect does. Describes recent federal legislation
and its impact on Oregon’s income taxes, “Oregon Income Tax Reconnect Recent
History”, (Exhibit 5). Questions and discussion regarding Oregon
general fund revenue impacts. |
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295 |
Martin-Mahar |
Results of these impacts are
translated into economic baseline forecasts. |
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Debra Buchanan |
Provided an analysis of HB 2186, “House
Revenue Committee HB 2186 Summary”, (Exhibit 6). ·
Updates references to Internal
Revenue Code to December 31, 2002. ·
Conforms net operating loss
carryback period for tax year 2001 to the 5-year period allowed under federal
law. ·
For withholding purposes, conforms
treatment of distributions from state and local government deferred
compensation plans to the federal treatment. ·
Clarifies type of compensation
exempt from Oregon tax from nonresidents working on waterways of two states. ·
Provides clarifying and housekeeping
changes to statutes. |
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388 |
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Questions and discussion
interspersed regarding disconnect/reconnect issues? |
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441 |
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Questions and discussion interspersed
regarding nonresident working on the waterways of two states. |
TAPE 43, SIDE A
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045 |
Rob Douglas |
Began biennial panel presentation describing
changes in federal tax law and its affects on Oregon Tax Code, “Analysis of
Changes resulting from the:” (Exhibit 7).
Introduced panel Kim Spaulding, Robert Carus, and Bruce Krohn, all
with OSPCA, referred to hereafter as “Panel”. |
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064 |
Kim Spaulding |
Discussed OSPCA analysis of 7 acts
passed since last biennium. With
three recommendations, starting with Recommendation C: ·
A:
Describes federal changes that fall under Oregon’s automatic
reconnect, requires no action to tie to federal law. (Tab A, Exhibit 7). ·
B:
Does not apply to Oregon. (Tab B, Exhibit 7). ·
C:
Federal tax law changes that require amendment of Oregon statutes to
tie to federal law. (Tab C, Exhibit 7). |
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088 106 |
Panel Panel |
Discussed section entitled
“Recommendation C” to which Oregon does not directly tie to federal law, (Pages
30-33, Exhibit 7) ·
Economic Growth and Tax Relief
Reconciliation Act of 2001 ·
Victims of Terrorism Tax Relief Act
of 2001 ·
Job Creation and Worker Assistance
Act of 2002 |
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210 |
Chair Shetterly |
Do you have proposed amendments to
HB 2186 as relates to Recommendation C? |
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Spaulding |
Amendments will be to wording in SB
221. |
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Panel |
Discusses section entitled
“Recommendation A”, which are automatically reconnected by Oregon statutes
and require no legislative action. (Page 1-16, Exhibit 7). ·
FSC Repeal and Extraterritorial
Income Exclusion Act of 2000. (HB 2182 would repeal this benefit). ·
Community Renewal Tax Relief Act of
2000. ·
Installment Tax Correction Act of
2000. ·
Economic Growth and Tax Relief
Reconciliation Act of 2001. |
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356 |
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Questions and discussion regarding
carryover and stepped-up basis at death within the estate tax, gift and
generation-skipping provisions. |
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400 |
Panel |
Continued discussion: ·
Economic Growth and Tax Relief
Reconciliation Act of 2001 continued. |
TAPE 42, SIDE B
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Panel |
Continued discussion: ·
Victims of Terrorism Tax Relief Act
of 2001. ·
Job Creation and Worker Assistance
Act of 2002. |
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175 |
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Questions and discussion regarding
deductions for classroom materials and foster care exclusions. |
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192 |
Rep. Hopson |
Regarding Section A, these do not
require legislative action? |
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202 |
Spaulding |
The panel believes Section A
Recommendations fall within the definition of taxable income which Oregon
currently ties to. |
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213 |
Chair Shetterly |
Clarifies that the publication is not
a recommendation, but a status report on changes in federal law that come
under the rolling reconnect? |
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217 |
Spaulding |
Answered affirmatively. |
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220 |
Rep. Barnhart |
It is the position of the Society to
connect, whenever possible, because it makes tax return preparation more
consistent? |
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225 |
Spaulding |
Defers to Marianne Brams, OSCPA. |
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220 |
Chair Shetterly |
These are simply observations on policy,
and not pertinent to this bill. |
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224 230 |
Marianne Brams |
Current Chair of the Board of Oregon
Society of CPAs. Spoke to issue of
difficulties in compliance and administration of tax laws, and the role of
OSCPA as advisory. Questions and discussion
interspersed. |
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322 |
Hass |
What is the distinction between automatically
reconnecting and the option to reconnect? |
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333 |
Chair Shetterly |
When it gets to deductions, credits,
depreciation and exemptions, it reconnects at taxable income definition. |
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Bram |
Answered affirmatively. |
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364 |
Chair Shetterly |
Meeting adjourned at 9:54 a.m. |
Tape Log Submitted by,
Kathy Tooley, Committee Assistant Reviewed
by Kim Taylor James
Exhibit Summary:
1.
Malik, Staff Measure Summary HB 2399,
1 page
2.
Malik, “Reference HB 2339”, ORS
456.225, 1 page
3.
Parker, “Testimony HB 2339”, 1 page
4.
Martin-Mahar, “Staff Measure Summary
HB 2186, 1 page
5.
Martin-Mahar, “Oregon Income Tax
Reconnect Recent History”, 1 page
6.
Buchanan, “HB 2186 Summary”, 4 pages
7.
Spaulding, Krohn, Carus, Brams, “An
Analysis of Changes Resulting From The:”, 33 pages