PUBLIC HEARING: HB 2031, HB 3423, HB 3301, HB 3414, HB 3417

 

TAPE 110, 111 , A-B

 

HOUSE REVENUE COMMITTEE

APRIL 7, 2003†† 8:30 AM†† STATE CAPITOL BUILDING

 

Members Present:††††††††††† ††††††††††† Representative Lane Shetterly, Chair

††††††††††††††††††††††† ††††††††††† ††††††††††† Representative Wayne Scott, Vice Chair

††††††††††††††††††††††† ††††††††††† ††††††††††† Representative Joanne Verger, Vice Chair

††††††††††††††††††††††† ††††††††††† ††††††††††† Representative Vicki Berger

††††††††††††††††††††††† ††††††††††† ††††††††††† Representative Pat Farr

††††††††††††††††††††††† ††††††††††† ††††††††††† Representative Mark Hass

††††††††††††††††††††††† ††††††††††† ††††††††††† Representative Elaine Hopson

††††††††††††††††††††††† ††††††††††† ††††††††††† Representative Max Williams††††††††††† ††††††††††††††††††††††† †††††††††††

 

Members Excused:††††††††† ††††††††††† Represntative Phil Barnhart

 

Witness Present:††††††††††† ††††††††††† Bob Castagna, Oregon Catholic Conference

††††††††††††††††††††††† ††††††††††† ††††††††††† Phillip Kennedy Wont, Ecumenical Ministries of Oregon

††††††††††††††††††††††† ††††††††††† ††††††††††† John Lewis, Oregon Center for Public Policy

††††††††††††††††††††††† ††††††††††† ††††††††††† Patti Whitney-Wise, Oregon Hunger Relief Task Force

††††††††††††††††††††††† ††††††††††† ††††††††††† Sara Merten, Oregon Food Bank

††††††††††††††††††††††† ††††††††††† ††††††††††† Representative Barker, District 28

††††††††††††††††††††††† ††††††††††† ††††††††††† Brian DeLashmutt, Oregon Council of Police Associations

††††††††††††††††††††††† ††††††††††† ††††††††††† Jayne T. Williams, Association of Enrolled Agents

††††††††††††††††††††††† ††††††††††† ††††††††††† Representative Merkley, District 47

††††††††††††††††††††††† ††††††††††† ††††††††††† Michael Meyers, Former Tax Preparer

††††††††††††††††††††††† ††††††††††† ††††††††††† John Blatt, Association of Oregon Community Development Organizations

††††††††††††††††††††††† ††††††††††† ††††††††††† Ian Slingerland, Community Alliance of Tenants

††††††††††††††††††††††† ††††††††††† ††††††††††† David Nebel, Oregon Law Center

††††††††††††††††††††††† ††††††††††† ††††††††††† Jeff Tashman, Association of Oregon Redevelopment Agencies

††††††††††††††††††††††† ††††††††††† ††††††††††† Chip Lazenby, Portland Development Commission

 

Staff Present:††† ††††††††††† ††††††††††† Paul Warner, Legislative Revenue Officer

††††††††††††††††††††††† ††††††††††† ††††††††††† Lizbeth Martin-Mahar, Legislative Revenue Office

††††††††††††††††††††††† ††††††††††† ††††††††††† Mazen Malik, Legislative Revenue Office

††††††††††††††††††††††† ††††††††††† ††††††††††† Kathy Tooley, Committee Assistant

 

TAPE 1, SIDE A

 

004

Chair Shetterly

Calls meeting to order at 8:30 a.m.

 

OPENS PUBLIC HEARING ON HB 2031

 

004

Lizbeth Martin-Mahar

Provides description of HB 2031 which changes the percentage of the federal earned income tax credit that Oregonians can claim on their state income tax return. Discusses revenue impact. Exhibit 1.

 

Discussion follows.

 

 

 

072

Bob Castagna

Testifies in favor of HB 2031 and provides history of the earned income credit concept. Exhibit 2. Asks that HB 2031 be a part of revenue restructuring and not a priority bill. Discusses report on how state earned income tax credit help working families escape poverty. Exhibit 3.

 

 

 

157

Phillip Kennedy Wont

Testifies in support of HB 2031 because it would lower the tax burden of low income families. Points out that money when money is brought into people who need it the most, it goes back into the economy.

 

 

 

178

Chair Shetterly

Asks if the earned income tax credit should be increased or made refundable.

 

 

 

182

Castanga

Responds that he would move in the direction of refundability because it is so important for low income families.

 

 

 

210

John Lewis

Testifies in favor of HB 2031and states that refundability is an important issue because it would benefit people at the lowest income levels. Refer to written testimony. Exhibit 4.

 

 

 

240

Patti Whitney-Wise

Testifies in favor of HB 2031 because the lowest income people in Oregon have the highest tax burden and is an equity issue. Refer to written testimony. Exhibit 5.

 

 

 

258

Sara Merten

Offers testimony in support of HB 2031 because it is a valuable tool to lift people out of poverty and alleviate hunger and prioritizes the issue of refundability.

 

CLOSES PUBLIC HEARING ON HB 2031

 

OPENS PUBLIC HEARING ON HB 3423

 

302

Mazen Malik

Explains HB 3423 which allows the governing body of taxing districts to elect to exempt from ad valorem property tax the homestead of a surviving spouse of public safety officer who was killed in the line of duty. Exhibit 7.

 

 

 

370

Rep. Barker

Testifies in favor of HB 3423 as an optional program to help people facing the economic loss of a spouse who was killed in the line of duty. States that the Association of Oregon Counties supports the bill because it is an option and not a mandate.

 

 

 

408

Rep. Verger

Asks what happens when a police officer is killed in the line of duty.

 

 

 

410

Rep. Barker

Responds that there is normally some federal insurance but that it may take a year for it to kick in.

 

 

 

436

Rep. Verger

What is the amount of the insurance paid.

 

TAPE 111, SIDE A

 

017

Brian DeLashmutt

Testifies in favor of HB 3423 as a local option. Responds to Rep. Verger that there are several different insurance options for fallen officers including local policies through the employer, individual policies, the public safety memorial fund, and a federal program similar to the state program.

 

 

 

062

Rep. Hopson

Asks in what circumstances the counties would say no.

 

 

 

071

DeLashmutt

Responds that if substantial resources are already available to the family they might not qualify.

 

 

 

080

Chair Shetterly

Asks if DeLashmutt sees this as a case by case exemption.

 

 

 

082

DeLashmutt

Answers affirmatively.

 

Discussion follows.

 

CLOSES PUBLIC HEARING ON HB 3432

 

OPENS PUBLIC HEARING ON HB 3301

 

103

Martin-Mahar

Explains HB 3301 which allows any person who has been granted active enrollment to practice before the IRS and who is qualified to prepare tax returns in the state may represent the taxpayer before a tax court magistrate or the Department of Revenue with respect to any tax. Exhibit 9.

 

 

 

113

Jayne T. Williams

Testifies in support of HB 3301 because enrolled agents were endowed with the power of advocacy by Congress in 1884, but were overlooked when the process was brought to Oregon. Refer to brochure on enrolled agents. Exhibit 10.

 

 

 

211

Chair Shetterly

Asks how many enrolled agents there are in Oregon.

 

 

 

212

Williams

Responds that there are over 700 agents in Oregon and in immediately adjoining cities that often have licensure in Oregon.

 

CLOSES PUBLIC HEARING ON HB 3301

 

OPENED PUBLIC HEARING ON HB 3414

 

225

Rep. Merckley

Testifies in support of HB 3414 because low income families are finding an unreasonable share of their funds from tax refund anticipation loans going to fees and charges. Refers members to two articles written by Michael Meyers. Exhibits 11-12.

 

 

 

277

Mike Meyers

Testifies in favor of HB 3414 and addresses excess fees charged for loan application and interest on the loan. Discusses percentage rates on loans.†† States that this bill is an important first step in achieving equity. Refer to written testimony. Exhibit 13.

 

 

 

361

Chair Shetterly

Asks if the earned income tax credit is specifically addressed in the bill.

 

 

 

363

Rep. Merckley

Responds that itís not specifically addressed because the basic principles regarding the tax refund loan should apply to anyone applying.

 

 

 

371

Rep. Hass

Clarifies that refunds are for other factors besides the earned income tax credit.

 

Discussion follows.

 

CLOSES PUBLIC HEARING ON HB 3414

 

OPENED PUBLIC HEARING ON HB 3417

 

410

Mazen Malik

Provides description of HB 3417 which requires percentage of estimated total cost of all urban renewal projects proposed to be undertaken under urban renewal plan to be for affordable housing.Discusses issues yet to be resolved. Exhibit 15.

 

TAPE 110, SIDE B

 

051

Rep. Merkley

Testifies in favor of HB 3417 because it addresses the issue that part of improving a community through urban renewal should be ensuring that there is a reasonable amount of affordable housing.

 

 

 

062

John Blatt

Testifies in favor of HB 3417 because there has been a dramatic increase in property values in the last decade creating a loss in housing affordability. Discusses similar laws in other states. Refer to written testimony. Exhibit 16.

 

 

 

120

Blatt

Discusses HB 3417-1 amendment and possible additional amendment forthcoming.

 

 

 

136

Rep. Verger

Asks where the bill references urban renewals that are limited to business districts.

 

 

 

137

Blatt

Responds that it doesnít specifically say business districts but that it is intended to address that issue in the amendments.

 

 

 

156

Chair Shetterly

States that it is not entirely a local option because the exception is contingent on certain findings.

 

 

 

167

Blatt

Describes situation where there might be an opt-out.

 

 

 

176

Rep. Verger

Asks if the language was in the preferred bill but not the house bill. ††

 

 

 

178

Blatt

Responds that it was attempted in the original bill, but it didnít do what intended to do.

 

 

 

181

Ian Slingerland

Testifies in support of HB 3417 because there is a lack of affordable housing and urban renewal often results in the loss of affordable housing. Refer to written testimony. Exhibit 17.

 

 

 

220

David Nebel

Testifies in support of HB 3417. Discusses Northwest Pilot Project surveys. States that affordable housing allowance is at risk if the May revenue forecast comes in lower than expected.

 

 

 

256

Blatt

Discusses census data that shows that urban renewal districts saw the lowest decline in poverty.

 

 

 

292

Jeff Tashman

Testifies in opposition to HB 3417.Discusses 20% requirement. States that the bill is not necessary because urban renewal is a means of adopting comprehensive plans and is already addressed in a document that has received local review. Refer to written testimony. Exhibit 18.

 

 

 

436

Tashman

States that section reference requires amendment.Declares that urban renewal is one of the last best flexible tools for local control.

 

TAPE 111, SIDE B

 

040

Chip Lazenby

Testifies in opposition to 3417, citing loss of flexibility and leverage. Explains that plans are not developed in isolation and have citizenís advisory groups which include tenants involved in the discussion. States that 20% is too much to tie up and limits ability to put together financing.

 

CLOSES PUBLIC HEARING ON HB 3417

 

085

Rep. Hass

States that he appreciates looking at tax credits, which have to be repealed and discusses bill on the house floor that provides a tax credit for logging that wasnít brought into the process.

 

 

 

095

Chair Shetterly

Responds that he did have chance to weigh in on the tax credit bill.

 

102

Chair Shetterly

Meeting adjourned at 10:03 a.m.

 

 

 

 

 

Tape Log Submitted by,

 

 

 

Kathy Tooley, Committee Assistant Tara Lantz, Committee Assistant

 

Exhibit Summary:

1.       HB 2031, Lizbeth Martin-Mahar, Staff Measure Summary, 2pp.

2.       HB 2031, Bob Castagna, Report on Earned Income Credits, 9pp.

3.       HB 2031, Bob Castagna, How State Earned Income Tax Credits Help Working Families, 7pp.

4.       HB 2031, John Lewis, Making Ends Meet, 12pp.

5.       HB 2031, Patti Whitney-Wise, Written Testimony, 1p.

6.       HB 2031, Oregon Revenue Coalition, Written Testimony, 3pp.

7.       HB 3423, Mazen Malik, Staff Measure Summary, 1p.

8.       HB 3423, Oregon Revenue Coalition, Written Testimony, 3pp.

9.       HB 3301, Lizbeth Martin-Mahar, Staff Measure Summary, 1p.

10.   HB 3031, Jayne Williams, Enrolled Agents Brochure, 2pp.

11.   HB 3414, Representative Merkley, Newspaper Article, 1p.

12.   HB 3414, Representative Merkley, Newspaper Article, 1p.

13.   HB 3414, Michael Meyers, Written Testimony, 6pp.

14.   HB 3414, Lizbeth Martin-Mahar, Staff Measure Summary, 1p.

15.   HB 3417, Mazen Malik, Staff Measure Summary, 1p.

16.   HB 3417, John Blatt, Written Testimony, 8pp.

17.   HB 3417, Ian Slingerland, Written Testimony, 2pp.

18.   HB 3417, Jeff Tashman, Written Testimony, 2pp.