WORK SESSION HB 3118, HB 3134, HB 3184

NFORMATIONAL MEETING: INVITED TESTIMONY

 

TAPE 133-134, A-B

 

HOUSE REVENUE COMMITTEE

April 18, 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†††††††††††††††††††††††††††††††††††††††††

††††††††††††††††††††††††††††††††††††††††††††††† Senator Tony Corcoran

††††††††††††††††††††††††††††††††††††††††††††††† Senator Ryan Deckert

††††††††††††††††††††††††††††††††††††††††††††††† Senator Ted Ferrioli

††††††††††††††††††††††††††††††††††††††††††††††† Senator Charlie Ringo

 

Witness Present:†††††††††††††††††††††† John Phillips, Department of Revenue

††††††††††††††††††††††††††††††††††††††††††††††† Patti Milne, Marion County Commissioner

††††††††††††††††††††††††††††††††††††††††††††††† Diane Belt, Oregon Association of County Tax Collectors

††††††††††††††††††††††††††††††††††††††††††††††† Hasina Squires, Special Districts Association of Oregon

††††††††††††††††††††††††††††††††††††††††††††††† Laurie Wimmer Whelan, Oregon Revenue Coalition

††††††††††††††††††††††††††††††††††††††††††††††† Tim Nesbitt, Oregon Revenue Coalition

††††††††††††††††††††††††††††††††††††††††††††††† Abby Solomon, SEIU Local 503, OPEU

††††††††††††††††††††††††††††††††††††††††††††††† Ellen Lowe, Human Service Coalition of Oregon Legislative Administration

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

††††††††††††††††††††††††††††††††††††††††††††††† Heidi McGowan, Stand for Children

††††††††††††††††††††††††††††††††††††††††††††††† Debra Buchanan, Department of Revenue

††††††††††††††††††††††††††††††††††††††††††††††† Rebecca Shine, State Advisory Committee Child Care Division

 

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

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

††††††††††††††††††††††††††††††††††††††††††††††† Steve Meyer, Legislative Revenue Office

††††††††††††††††††††††††††††††††††††††††††††††† Tara Lantz, Committee Assistant

 

TAPE 133, SIDE A

 

005

Chair Shetterly

Calls meeting to order at 8:46 a.m.

 

OPENS WORK SESSION ON HB 3118

 

014

Paul Warner

Explains HB 3118, which requires the Department of Revenue to put a place on their tax forms for individuals to list the school district in which they reside.

 

 

 

022

Rep. Verger

MOTION: MOVES HB 3118 TO THE HOUSE FLOOR WITH A DO PASS RECOMMENDATION AND A SUBSEQUENT REFFERAL TO THE WAYS AND MEANS COMMITTEE.

 

 

 

030

Rep. Shetterly

ORDER: ROLL CALL VOTE: MOTION PASSES: 7-0-2.

REPRESENTATIVES ANSWERING AYE: BARNHART, BERGER, FARR, HOPSON, SCOTT, VERGER, SHETTERLY. REPRESENTATIVES EXCUSED HASS, WILLIAMS.

 

CLOSES WORK SESSION ON HB 3118

 

OPENS WORK SESSION ON HB 3134

 

036

Warner

Explains the -3 amendments, which direct the Department of Revenue to account for a tax lien certificate program at the County level, giving the County the option to participate.

 

 

 

050

John Phillips

Explains the -3 amendments, which adds a section that says to the extend that the sale of tax lien certificates by any particular county affects other counties, then the Department of Revenue has the authority to adjust the formula.

 

 

 

058

Patti Milne

States that the -3 amendments do what they wanted.

 

 

 

064

Diane Belt

Expresses concern over the -2 amendments in which it states that the sale of tax lien certificates is not subject to limitations.

 

 

 

081

Hasina Squires

Testifies that it seems as if nothing has changed from the -2 amendments and expresses concern for the potential loss of ANT funding to special districts.

 

CLOSES WORK SESSION ON HB 3134

 

OPENS WORK SESSION ON HJR 18

 

RECESSES WORK SESSION ON HJR 18

 

OPENS INFORMATION MEETING

 

218

Laurie Wimmer

Whelan

Discusses the formation of the Oregon Revenue Coalition and its members. Discusses the focus of the coalition on tax expenditures. Refer to written testimony (Exhibits 2-3).

 

 

 

283

Wimmer Whelan

Explains how the coalition analyzed each tax expenditure (Exhibit 4).

 

 

 

336

Tim Nesbitt

Discusses the findings of the study.

 

 

 

368

Nesbitt

Discusses tax breaks by tax source.

 

 

 

386

Wimmer Whelan

Discusses the criterion for a good tax expenditure.

 

TAPE 134, SIDE A

 

024

Nesbitt

Discusses business tax breaks by category.

 

 

 

038

Nesbitt

Gives list of what services $1 million would buy.

 

 

 

079

Nesbitt

Discusses ORCís approach to closing the 2003-05 revenue gap.

 

 

 

113

Nesbitt

Gives examples of tax expenditures to repeal, to reduce, and to retain. Recommends a formation of a work group to look at tax expenditures in detail.

 

 

 

209

Sen. Ferrioli

Supports the concept of a work group to look at issues and points out that there are some expenditures that are connected to public policy such as land use.

 

Discussion follows.

 

 

 

274

Nesbitt

States that the biggest number in tax breaks came from the income tax side and that there are numerous property tax credits that serve a good purpose, which is why they chose to focus on income.

 

Discussion follows.

 

 

 

321

Rep. Barnhart

States that due to their organizational methods it is difficult to compare the tax expenditures to the budget and that it might be beneficial to get the opinion of the people who work with the budget in the discussion.

 

Discussion follows.

 

 

 

350

Sen. Corcoran

Asks if there has been any research done on how you could apply means testing to income tax credits and second home mortgage credits.

 

 

 

375

Warner

Responds that they have looked at phasing out credits over income levels and that there is precedence at the federal level.

 

TAPE 113, SIDE B

 

003

Rep. Hass

States that he supports a work group and that there is a bill that creates a commission to look at that.

 

 

 

013

Wimmer Whelan

Responds that it would be valuable to have people that are unbiased, but there would also be value in having people with expertise and that the situation is so desperate that they need to start working on tax expenditures immediately.

 

 

 

040

Abby Solomon

Discusses the SEIU Local 503, OPEU and why they have joined the Oregon Revenue Coalition. Urges support of proposal to reduce and eliminate tax expenditures.

 

 

 

064

Ellen Lowe

Gives example of one tax expenditure for an additional medical deduction for elderly that could be reduced. Refer to written testimony (Exhibit 5).

 

 

 

163

Patti Whitney-Wise

Testifies in support with the Oregon Revenue Coalition to find new revenue sources through tax expenditures. Refer to written testimony (Exhibit 6).

 

 

 

186

Heidi McGowan

Discusses Stand for Children and why they have joined the Oregon Revenue Coalition.

 

OPENS WORK SESSION ON HB 3184

 

278

Lizbeth Martin-Mahar

Explains the -3 amendments (Exhibit 8), which make technical corrections.

 

 

 

337

Debra Buchanan

States that the -3 amendment fixes the problem of double dipping.

 

 

 

345

Rep. Shetterly

Asks who would take advantage of this credit.

 

 

 

352

Rebecca Shine

Responds that it would be a combination of working families and affordable housing providers.

 

Discussion follows.

 

 

 

371

Rep. Williams

MOTION: MOVES HB 3184-3 AMENDMENTS DATED 4/17/03 BE ADOPTED.

 

 

 

376

Chair Shetterly

ORDER: HEARING NO OBJECTION, MOTION PASSES: 9-0-0.

 

 

 

380

Rep. Williams

MOTION: MOVES HB 3184 TO THE HOUSE FLLOR WITH A DO PASS AS AMENDED RECOMMENDATION.

 

 

 

385

Chair Shetterly

ORDER: ROLL CALL VOTE: MOTION PASSES: 9-0-0.

REPRESENTATIVES ANSWERING AYE: BARNHART, BERGER, FARR, HASS, HOPSON, SCOTT, VERGER, WILLIAMS, SHETTERLY.

Rep. Kafoury will carry the bill on the House Floor.

 

 

 

399

Warner

Discusses the school formula revenue summary for the co-Chair state school fund budget at $4,788.6 million (Exhibit 14).

 

 

 

421

Rep. Hass

Asks if the confusion over the accounting change has been included in the summary.

 

 

 

426

Warner

Responds negatively.

 

Discussion follows.

 

 

 

475

Chair Shetterly

Adjourns meeting at 10:08 am.

 

 

 

Tape Log Submitted by,

 

 

 

Tara Lantz, Committee Assistant†††††††††††††††††††††††††††††††††††

 

Exhibit Summary:

1.       HB 3134, Lizbeth Martin-Mahar, Proposed HB 3134-3 Amendments, 3pp.

2.       Laurie Wimmer Whelan, Written Testimony, 1p.

3.       Laurie Wimmer Whelan, Oregon Revenue Coalition Members, 1p.

4.       Laurie Wimmer Whelan, A Primer on Tax Breaks in Oregon, 34pp.

5.       Ellen Lowe, Additional Medical Deduction for Elderly, 4pp.

6.       Patti Whitney-Wise, Revenue Coalition Tax Expenditure Recommendations, 1p.

7.       Oregon Revenue Coalition, 5pp.

8.       HB 3184, Lizbeth Martin-Mahar, Proposed HB 3184-3 Amendments, 4pp.

9.       HB 3184, Lizbeth Martin-Mahar, Staff Measure Summary, 1p.

10.   HB 3184, Lizbeth Martin-Mahar, Revenue Impact Statement, 1p.

11.   HB 3184, Lizbeth Martin-Mahar, Previous Staff Measures Summary, 1p.

12.   HJR 18, Steve Meyer, Staff Measure Summary, 1p.

13.   HJR 18, Steve Meyer, Revenue Impact Statement, 1p.

14.   Steve Meyer, School Formula Revenue Summary for the Co-Chair State School Fund Budget, 7pp.