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WORK SESSION: HB 2705 |
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PUBLIC
HEARING: HB 3397, HB 3398, HB 3134 |
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TAPE 108-109,
A-B |
April 4,
2003 9:00 AM STATE CAPITOL BUILDING
Members Present: Representative Lane Shetterly, Chair
Representative
Wayne Scott, Vice Chair
Representative
Joanne Verger, Vice Chair
Representative
Mark Hass
Representative
Elaine Hopson
Representative
Max Williams
Members Excused: Representative Phil Barnhart
Representative
Vicki Berger
Representative
Pat Farr
Witness Present: Patti Milne, Marion County
Commissioner
James
Balkema, Marion County
Toni
Balkema, Marion County
John
Phillips, Department of Revenue
Diane
Belt, Oregon Association of County Tax Collectors
John
Blatt, Association of Oregon Community Development Organizations
Representative
Kelly Wirth, District 16
Jason
Williams, Oregon Taxpayers Association
Joe
Schweinhart, Associated Oregon Industries
Senator
Gary George, District 12
Marcia
Kelley, Women’s Rights Coalition
Tom
Potiowsky, Office of Economic Analysis
Staff Present: Paul
Warner, Legislative Revenue Office
Lizbeth
Martin-Mahar, Legislative Revenue Office
Tara
Lantz, Committee Assistant
TAPE 108, SIDE A
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004 |
Chair Shetterly |
Calls meeting to order at 9:12am. |
OPENS PUBLIC HEARING ON HB
3134
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015 |
Paul Warner |
Explains HB 3134 which grants
counties the right to sell tax lien certificates on properties to investors.
Exhibit 1. |
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028 |
Patti Milne |
Testifies in support of HB 3134
because it maximizes what it owed to county tax districts in a time when
local budgets are shrinking. Refer to written testimony. Exhibit 2. |
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086 |
James Balkema |
Testifies in support of HB 3134
because it would bring in money to counties and increase tourism. Discusses
his experiences investing a similar program in Arizona. Refer to written
testimony. Exhibit 3. |
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163 |
J. Balkema |
Walks through how the program would
work for one property. |
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185 |
Rep. Shetterly |
Asks what the statutory rate for
lien delinquency is in Oregon. |
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186 |
J. Balkema |
Responds 16 percent. Discussion follows. |
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224 |
Toni Balkema |
Discusses the process of the lien
certificate program. Discussion follows. |
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251 |
Rep. Shetterly |
Asks who is responsible for taxes
that aren’t paid in the future. |
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253 |
J. Balkema |
Responds that the investor could sub-tax
to keep an investor from buying the certificate. |
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278 |
Rep. Hass |
Asks how this program would improve
the situation for delinquent taxpayers. |
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280 |
T. Balkema |
Responds that it would not make
their situation any better but would also not make it worse. |
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302 |
Rep. Shetterly |
States that the process would not
change except that the investor would take the debt off the hands of the
state. Discussion follows. |
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318 |
Milne |
Clarifies that it relieves the
county from uncollected debts. Discussion follows. |
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356 |
J. Balkema |
Points out that if the bill passed a
lot of delinquent taxpayers would pay the owed debts to keep investors from
coming in and foreclosing on property. |
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375 |
J. Balkema |
Discusses figures on delinquent
property taxes in Marion County. Discussion follows. |
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404 |
Rep. Verger |
Asks about bankrupt properties. |
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405 |
J. Balkema |
Responds that bankrupt properties
are not allowed to be sold until the bankruptcy goes through and that even
after that they are seldom sold. Discussion follows. |
TAPE 109, SIDE A
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010 |
Milne |
Points out that this program could
turn around the health of the general fund for Marion County. |
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John Phillips |
Explains HB 3134 and gives figures
on delinquent taxes for all counties in Oregon. Discusses issues of concern
for the Department of Revenue. Refer to written testimony. Exhibit 4. |
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203 |
Diane Belt |
Testifies against HB 3134 because it
could decrease funding for assessment and taxation and would create more
administrative duties for county offices. Refer to written testimony. Exhibit
5. |
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255 |
Rep. Shetterly |
Asks why it would work better for
small districts. |
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257 |
Belt |
Responds that it would benefit the
districts where the taxes were owed. Discusses the administrative costs that
would be placed on the counties. |
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286 |
Rep. Shetterly |
Asks if it would be acceptable to
have it on a county by county basis. |
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289 |
Belt |
Responds that it would create an
inconsistency in the statewide process of foreclosing if one or a few
counties offered tax lien certificates. |
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315 |
Rep. Verger |
Asks how this bill would be taking
advantage of a person who refuses to pay their taxes. |
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335 |
Belt |
Responds that many of the people she
talks to don’t refuse to pay their taxes, but are unable to pay them. Discussion follows. |
TAPE 108, SIDE B
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002 |
John Blatt |
Testifies that this bill would not
have much of an affect on non-profit organizations. Offers personal support
for HB 3135 because he feels it makes sense from a financial standpoint.
Recommends selling the interest on the income and not the asset. |
CLOSES PUBLIC HEARING ON HB
3135
OPENS PUBLIC HEARING ON HB
3397
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102 |
Paul Warner |
Explains HB 3397 which modifies
statute allocating surplus kicker refund to individual income taxpayers,
limiting the amount of surplus refund for taxpayers with prior year liability
above $80,000 and increasing the percentage of refund for those with less
than $80,000. Exhibit 6. |
OPENS PUBLIC HEARING ON HB
3398
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Rep. Wirth |
Introduces HB 3397 and HB 3398.
Gives history of the kicker refund and discusses the intent of the bills. Refer
to written testimony. Exhibit 9. |
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286 |
Rep. Verger |
Asks if the bills would be allowed
by the constitution. |
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290 |
Warner |
Responds affirmatively. |
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305 |
Jason Williams |
Testifies in opposition to HB 3397
because he disagrees with redistributing wealth. |
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362 |
Rep. Hass |
Asks if Williams is opposed to HB
3398. |
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367 |
Williams |
Responds that they haven’t had enough
time to look at it but that if it does not redistribute wealth in an unfair
manner they would probably not have problem with it. |
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389 |
Rep. Shetterly |
Points out that in general the
income tax system penalizes income earning. |
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394 |
Joe Schweinhart |
Testifies that people who get more
money back from the kicker refund pay more taxes and should not be penalized.
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TAPE 109, SIDE B
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005 |
Sen. George |
Testifies against SB 3397 because
the state shouldn’t penalize people who pay higher taxes and it would
decrease credibility from the public which voted for the kicker refund. |
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Marcia Kelley |
Testifies that there are substantial
tax breaks for people who are high income earners and that wealth should be
distributed to help people who are out of work and poor. |
CLOSES PUBLIC HEARING ON HB 3397
and HB 3398
OPENS WORK SESSION ON HB
2705
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065 |
Warner |
Discusses changes made in the
proposed amendments. |
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130 |
Tom Potiowsky |
States that the office of economic
analysis is moving ahead and forming an advisory revenue forecast board. |
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165 |
Rep. Verger |
States that she will not be voting
for the bill because she does not support an advisory board. |
CLOSES WORK SESSION ON HB
2705
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180 |
Rep. Shetterly |
Adjourns meeting at 10:47am. |
Tape Log Submitted by,
Tara Lantz, Committee Assistant
Exhibit Summary:
1. HB 3134, Paul Warner, Staff
Measure Summary, 1p.
2. HB 3134, Patti Milne,
Written Testimony, 2pp.
3. HB 3134, James Balkema,
Written Testimony, 12pp.
4. HB 3134, John Phillips,
Written Testimony, 6pp.
5. HB 3134, Diane Belt,
Written Testimony, 4pp.
6. HB 3397, Paul Warner, Staff
Measure Summary, 1p.
7. HB 3397, Paul Warner,
Kicker Rebates by Liability Class, 1p.
8. HB 3398, Paul Warner, Staff
Measure Summary, 1p.
9. HB 3397, Rep. Wirth,
Written Testimony, 5pp.
10. HB 2705, Paul Warner, Proposed HB 2705-1 Amendments, 3pp.
11. HB 2705, Paul Warner, Proposed HB 2705-2 Amendments, 6pp.