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WORK
SESSION, HB 3134, HB 2298-A HB 3160 PUBLIC
HEARING HB 2747-A HB 2166 |
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TAPE 126, 127
A-B; 128 A |
APRIL 16,
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: Patti Milne, Marion County
Commissioner
James
Balkema, Private Investor
John
Phillips, Oregon Department of Revenue (DOR)
Diane
Belt, Oregon Association of County Tax Collectors
Bob
Vroman, Clackamas County Department of Assessment and Taxation
Gary
Bartholomew, Oregon Association of County Tax Collectors,
Multnomah County employee
Representative
Tom Butler, District 60
Representative
Greg Smith, District 57
Representative
Derrick Kitts, District 30
Senator
Charlie Ringo, District 17
Representative
Jackie Dingfelder, District 45
Matt
Blevins, Oregon Environmental Council
David
Williams, Oregon School Employees Association,
Oregon Revenue Coalition
Lynn
Partin, Oregon Housing and Community Services Department
Baltazar
Ortiz, Founder of a non-profit housing corporation
John
McCulley, Tree Fruit Growers,
Professional Administrative Services, Inc.
Don
Schellenberg, Oregon Farm Bureau
Peter
Hainley, Community And Shelter Assistance Corp.
Staff Present: Paul
Warner, Legislative Revenue Officer
Mazen
Malik, Legislative Revenue Office
Lizbeth
Martin-Mahar, Legislative Revenue Office
Richard
Yates, Legislative Revenue Office
Kathy
Tooley, Committee Assistant
TAPE 1, SIDE A
|
027 |
Chair Shetterly |
Calls meeting to order at 8:40 a.m.
Will not hear HB 2184 at this time. |
OPENED WORK SESSION ON HB 3134
|
036 |
Paul Warner |
Described -2 amendments to HB 3134 (Exhibit 1). Discussed change in
the foreclosure process. Area of concern regarding proceeds in the amendment,
question as to impacts on statewide County Assessments Functions Funding
Account (CAFFA). There will be an
additional amendment, as yet undrafted, which reqiures DOR to take this
program into account when allocating CAFFA distribution. |
|
066 |
Commissioner Patti Milne |
Spoke in support of HB 3134.
At issue is 16% interest counties charge on late taxes. |
|
045 |
|
Questions and discussion regarding distribution formula and lien sale
program. |
|
190 |
Milne |
Discussion of legal process for delinquent property owners whereby
the county takes possession with no flexibility to extend time for
payment. HB 3134 proposes to allow a
private investor pursue the foreclosure process, with possible additional
flexibility in extending time for payment. |
|
229 |
James Balkema |
Discussed benefits to the county by sale of liens to an investor
(Exhibit 2). |
|
326 330 |
John Phillips Phillips |
Provided testimony regarding CAFFA fund, “HB 3134 Sale of Tax Lien
Certificates” (Exhibit 3). Discussed -2 amendments and DOR review process, need for additional
research. |
|
389 |
Chair Shetterly |
Want to make sure DOR had reviewed and that the bill was technically
workable. |
|
398 |
Diane Belt |
Spoke in opposition to HB 3134. Bill is modeled on Arizona process
and discussed differences and conversations with Arizona treasurers (Exhibit
4). |
|
476 |
|
Questions and discussion regarding participating and
non-participating county in DOR grant. |
TAPE 127, SIDE A
|
027 |
Bob Vroman |
Spoke in opposition to HB 3134, citing potential revenue loss,
(Exhibit 5). This new process will require additional
programming costs and staff. Believes
current system provides incentives for timely payment. |
|
110 |
Gary Bartholomew |
Concerns regarding HB 3134, does not see support from counties,
questions why process is being brought forward. Feels the bill does not include enough statutes to cover the
subject adequately. |
|
155 |
Chair Shetterly |
Would like to see amendments, sensitive to Assessmenet and Taxation
distribution and CAFFA. Issues regarding
workload, programming and process are county concern. Concern for statewide CAFFA
fund distribution. |
|
180 |
Chair Shetterly |
Closed Work Session on HB 3134 |
OPENED WORK SESSION ON HB 2298-A
|
187 |
Mazen Malik |
Provided description and background of HB 2298-A. |
|
212 |
Rep. Tom Butler |
Spoke in support of 2298-A, as an attempt to get jobs. |
|
259 |
Greg Smith |
Spoke in support of 2298-A, provides an opportunity to encourage
companies from out of state to help rural, economically distressed
communities with family wage jobs.
Discussed ports issue. |
|
355 |
Chair Shetterly |
For the record, representatives of Office of Economic and Community
Development Department (OECDD) are present and nodded affirmatively that the
bill works. |
|
360 |
Rep. Butler |
HB 2298-A is cost and revenue neutral, and would bring jobs to rural Oregon. |
|
377 |
Rep. Scott |
MOTION: MOVED HB 2298-A TO
THE HOUSE FLOOR WITH A DO PASS RECOMMENDATION |
|
384 |
Rep. Barnhart |
Will vote for it but bill appears to provide a number of difficult hoops
for a small out of state business to jump through. |
|
411 |
Chair Shetterly |
The bill will require marketing by OECDD. Cited the bill as narrow and targeted, rural communities want
it and OECDD feels they can make it work. |
|
432 434 |
Chair Shetterly |
ROLL CALL: MOTION PASSED 9-0-0 REPRESENTATIVES VOTING AYE:
Barnhart, Berger, Farr, Hass, Hopson, Scott, Verger, Williams, Chair
Shetterly. Rep. Butler will carry the
bill. Closed the Work Session on HB 2298-A. |
OPENED WORK SESSION ON HB 3160
TAPE 126, SIDE B
|
016 |
Lizbeth Martin-Mahar |
Provided description and background of HB 3160, (Exhibit 8). Bill
does not provide specific definition of wood product industry which will
depend on OECDD rule. Provided
revenue impact (Exhibit 9). |
|
057 |
Rep Derrick Kitts |
Spoke in support of HB 3160, his district does not have mills that
would be affected by bill. Described
intent behind the bill is to stimulate the economy, provide diversity and provide
stimulus to wood products industries.
Will have amendment with cap at $2 million. |
|
097 |
Chair Shetterly |
The House passed a property tax exemption for logging equipment;
would the bill apply to this same equipment, so they would receive an income
tax credit and a property tax exemption? |
|
099 |
Martin-Mahar |
It will depend on how you define wood products; some of the logging
equipment may not apply. |
|
101 |
Chair Shetterly |
Do you have a definition for wood products? |
|
105 |
Rep. Kitts |
It is included in the amendment, will follow up with Legislative
Counsel, geared toward production of timber to wood for mills in light of
President Bush’s Healthy Forest Initiative. |
|
118 |
Chair Shetterly |
For the record, Oregon Revenue Coalition has provided written
testimony (Exhibit 10). |
|
121 |
Rep. Verger |
It might help to have wood products industry speak on the difference
in logging equipment and the process. |
|
134 |
Chair Shetterly |
Closed Work Session HB 3160. |
OPENED PUBLIC HEARING ON HB 2747
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143 |
Richard Yates |
Provided description and background of HB 2747 (Exhibit 11); described
-3 amendment (Exhibit 12). Provided
Revenue Impact (Exhibit 13). |
|
176 |
Sen. Charlie Ringo |
Spoke in support of HB 2747. This
bill is intended to close a tax loophole in purchase of large SUV’s.
Discussed impacts to environment, and increased reliance on foreign oil. |
|
205 |
Sen. Ringo |
Discussed Detroit News article, (Exhibit 14), provided examples of
business professionals that have taken advantage of incentive to buy SUVs. |
|
227 |
Sen. Ringo |
Described -2 and -3 amendments, which allow incentives to purchase an
SUV, but reduces the amount. The
differences are explained in “Monster SUV Tax Loophole – Two Options”,
(Exhibit 15). Believes Don Schellenberg of the Farm Bureau approves because
farm vehicles have been excluded. |
|
288 |
Chair Shetterly |
Noted bill came out of House Transportation Committee with a do pass
recommendation. |
|
279 |
Rep. Farr |
There is a farm exemption on this, how does it affect a lumber yard owner
who owns a SUV and uses it make deliveries? |
|
303 |
Sen. Ringo |
If someone has a need for a large vehicle, they could buy one with
four wheels in the back and this would not apply, or purchase one just under
6000 pounds, it would then depreciate on normal schedule, not accelerated. |
|
294 |
Rep. Barnhart |
Question regarding federal tax law. This deduction replaces normal business deduction for these
vehicles, or would the normal business deduction still apply even with this proposed
bill. |
|
320 |
Sen. Ringo |
Cannot impact the federal return, but would add back on the state
level and would lessen the financial incentive. Provided Press Release on HB 2747-A (Exhibit 16) |
|
331 |
Rep. Barnhart |
Questions and discussion regarding business depreciation write-offs. |
|
405 |
Rep. Jackie Dingfelder |
Spoke in support of HB 2747-A, (Exhibit 17). Deduction history as intended
for agriculture sector to deduct the cost of farm vehicles and has grown to $25,000
includes SUV’s; Congress may raise deduction to $75,000. Discussed New York
proposed legislation (Exhibit 18). The exemption should be maintained for
agriculture, rather than incentive for SUV owners. Should save Oregon $1 million for next 2003-05 biennium, also
favorable for the environment. |
|
466 |
Rep. Verger |
Spoke in support of the HB 2747-A. |
|
480 |
Chair Shetterly |
If Congress increases to $75,000, it would not affect Oregon under
the disconnect bill? |
|
482 |
Yates |
Answered affirmatively. |
|
487 |
Sen. Ringo |
Clarifies the bill does more than disconnect, because it adds it
back. |
|
497 513 |
Debra Buchanan |
Clarified reconnect bill amended in this committee provides that
depreciation would continue to float. Discussed Federal Code 179 provisions. |
TAPE 127, SIDE B
|
050 |
Matt Blevins |
Spoke in support of the HB 2747-A as it affects air pollution. |
|
065 |
David Williams |
Spoke in support, HB 2747A, fits criteria do no further harm to the state. |
|
077 |
Chair Shetterly |
Revised opening of Work Session to Public Hearing and closed Public
Hearing on 2747-A |
OPENED PUBLIC HEARING ON HB 2166
|
084 |
Chair Shetterly |
Noted bill came from Business, Labor and Consumer Affairs with do
pass recommendation. |
|
041 |
Martin-Mahar |
Provided description and background on HB 2166-A (Exhibit 19) and
described HB 2166-A -3 amendment (Exhibit 20). Provided revenue impact (Exhibit 21). |
|
180 |
Chair Shetterly |
Assume you have seen the –A3 amendment? (Lynn Partin, Balthazar
Ortiz, John McCulley nodded agreement). The –A3s are not in the bill before the Committee? |
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185 186 |
Lynn Partin Partin |
Answered affirmatively. Spoke in favor of HB 2166 (Exhibit 22). This bill maximizes value of
credits for farm worker housing. Discussed
change in definition of taxpayer. Described and clarified -3 amendments as it
defines contributor, owner, operator, investor, and developer. |
|
300 |
Balthazar Ortiz |
Spoke in support of HB 2166. Tax
credit helps build affordable on-farm housing. |
|
350 |
John McCulley |
Spoke in support of HB 2166, (Exhibit 23) as it provides incentive to
improve housing for farm workers.
Grace period important because of variability of income receipt from
harvest. |
|
315 |
Rep. Verger |
Questions and discussion regarding transfer of tax credit. |
|
439 |
Partin |
Described situation where third party/institution would buy the tax
credit. |
|
459 |
Rep. Verger |
Why would credit have doubled since 2001? |
|
461 |
Partin |
The 2001 Legislature more than doubled the credit from $3.3 to $7
million. Discussed 1999 Legislature’s
Farm Worker Interim Task Force that came up with 18 unanimous recommendations
for which the Legislature has implemented a number of recommendations. |
|
502 |
Don Schellenberg |
Spoke in support of HB 2166, as it provides support for agriculture. |
TAPE 128, SIDE A
|
050 |
Peter Hainley |
Spoke in support of HB 2166, (Exhibit 24) member of task force and
supports credit transfer. |
|
074 |
Rep. Verger |
What was the size of the task force? |
|
075 |
Hainley |
Believes it was about 11 included Kevin Mannix, Co-Chair Susan Castillo,
Sen. Ted Ferrioli, representatives for farm workers, affordable housing,
religious, grower, local planning and others. |
|
084 |
Chair Shetterly |
Close public hearing HB 2166. |
|
098 |
Chair Shetterly |
Meeting adjourned at 10:34 a.m. |
Tape Log Submitted by,
Kathy Tooley, Committee
Assistant Reviewed by Kim Taylor James
Exhibit Summary:
1.
Warner,
“HB 3134 -2 Amendment”, 3 pages
2.
Balkema,
“Pinal County Treasurer Tax Bill”, 10 pages
3.
Phillips,
“HB 3134 Sale of Tax Lien Certificates”, 6 pages
4.
Belt,
“Testimony HB 3134”, 2 pages
5.
Vroman,
“Testimony HB 3134”, 1 page
6.
Malik,
“Staff Measure Summary HB 2298-A”, 1 page
7.
Malik,
“Revenue Impact HB 2298-A”, 1 page
8.
Martin-Mahar,
“Staff Measure Summaries HB 3160”, 2 pages
9.
Martin-Mahar,
“Revenue Impact HB 3160”, 1 page
10.
Oregon
Revenue Coalition “Testimony HB 3160”, 3 pages
11.
Yates,
“Staff Measure Summaries HB 2747-A”, 2 pages
12.
Yates,
“HB 2747-A3 Amendment”, 3 pages
13.
Yates,
“Revenue Impact HB 2747-A”, 1 page
14.
Ringo,
The Detroit News article: “SUV, Truck
Owners get a big Tax Break”, 2 pages
15.
Ringo,
“Monster SUV Tax Loophole – Two Options”, 1 page
16.
Ringo,
“Press Release HB 2747-A”, 6 pages
17.
Dingfelder,
“Testimony HB 2747-A”, 1 page
18.
Dingfelder,
Times-Union article: “Pataki Aims to
End SUV Tax Break”, 1 page
19.
Martin-Mahar,
“Staff Measure Summaries HB 2747-A”, 2 pages
20.
Martin-Mahar,
“HB 2166-A3 amendment”, 7 pages
21.
Martin-Mahar,
“Revenue Impact HB 2166-A3”, 1 page
22.
Partin,
“Testimony HB 2166”, 1 page
23.
McCulley,
“Testimony HB 2166”, 1 page
24.
Hainley,
“Testimony HB 2166”, 1 page
25.
Oregon
Revenue Coalition, “Written Testimony HB 2166”, 3 pages