PUBLIC HEARING SB 223-A, SB 229-A, SB 228

 

TAPE 146, 147, A

 

HOUSE REVENUE COMMITTEE

APRIL 29, 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:                        John Phillips, Department of Revenue (DOR)

                                                Debra Buchanan, DOR

                                                Dave Boyer, Multnomah County

                                                Walter Barkon, Benton County Resident

                                                            Member:  Kids!

                                                Cyrel Gabel, Corvallis School Board

                                                Kathy Rodeman, Corvallis School District

 

Staff Present:                            Paul Warner, Legislative Revenue Officer

                                                Mazen Malik, Legislative Revenue Office

                                                Kathy Tooley, Committee Assistant

 

TAPE 146, SIDE A

 

004

Chair Shetterly

Calls meeting to order at  8:35 a.m.

 

OPENED PUBLIC HEARING ON SB 223-A

 

010

Mazen Malik

Provided description and background of SB 228, (Exhibit 1); has minimal fiscal impact.

 

033

John Phillips

Bill places intergovernmental agencies that levy taxes under local budget law (Exhibit 2).

 

055

 

Questions and discussion regarding current intergovernmental agencies that can levy taxes.

 

068

Rep. Barnhart

If they have a small levy that covers one area of the budget, does this law apply to the whole budget?

 

074

Phillips

Answered affirmatively, for only the year the intergovernmental agency levies a tax.

 

077

Chair Shetterly

Closed the Public Hearing on SB 223-A.

 

 

OPENED WORK SESSION ON SB 223-A

 

079

 

 

084

Rep. Scott

MOTION:  MOVED SB 223-A TO THE HOUSE FLOOR WITH A DO PASS RECOMMENDATION

 

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 ON SB 229-A

 

095

Malik

Provided description and background of SB 229-A, (Exhibit 3); discussed positive revenue impact (Exhibit 4).

 

140

Phillips

Provided description of SB 229-A, discussed history and described scenarios in which taxes on additional taxes on a property from appeal.

 

192

Rep Verger

Have you jumped back too far giving the person until the 16th of the next month?

 

198

Phillips

The proposal is to take it to what is prior to the bill in 1999.  It is on the table if it is something you are interested in changing.  For the person who appeals discussed 16% penalty that is accrued during appeal.

 

203

Rep. Verger

Prior to 1999 this was not a big problem?  There was a taxpayer with a problem in 1999 and a bill came from that.

 

208

Chair

Yes, The problem in 1999 was not related to appeals, but to omitted property that caught the person by surprise.

 

212

Phillips

Questions and discussion relating to unique tax liability situation.

 

231

Chair

Closed Public Hearing on SB 229-A.

 

 

OPENED WORK SESSION ON SB 229-A

 

232

 

 

235

Rep. Verger

MOTION:  MOVED SB 229-A TO THE HOUSE FLOOR WITH A DO PASS RECOMMENDATION

 

ROLL CALL:  MOTION PASSED 9-0-0

REPRESENTATIVES VOTING AYE:  Barnhart, Berger, Farr, Hass, Hopson, Scott, Verger, Williams, Chair Shetterly.

 

Rep. Verger will carry the bill.

 

243

Chair Shetterly

Closed Work Session on SB 229-A.

 

 

PUBLIC HEARING SB 228

 

249

Malik

Provided description and background of SB 228 (Exhibit 6).  Discussed -1, (Exhibit 7); -2, (Exhibit 8); and -3 amendments.

 

284

Debra Buchanan

Provided description of the bill and amendments.  The -1 amendment corrects a inadvertent problem from 1999 legislation which reestricted DOR from disclosing information to a certified public accountant or an attorney.  Worked with Rep. Verger on the -2 amendment takes care of language regarding implied consent.

 

327

Rep. Verger

Had been concerned with the implication and the amendment satisfies that concern.

 

329

Chair Shetterly

Do not need -1 if use the -2.  And Rep. Verger likes the -2?

 

342

Rep. Verger

Answered affirmatively.

 

351

Debra Buchanan

Provided overview of -3 amendments.

 

370

Chair Shetterly

Is there a fiscal impact?

 

373

Buchanan

If there is, it would be minimal.

 

376

Rep. Berger

Would this open the door in any municipality that is contemplating an income tax?

 

377

Buchanan

It would to the extent they are contemplating a tax on or measured by income and then pursuant to a written agreement protecting the confidentiality of the information.  Multnomah and Benton Counties have expressed an interest in pursuing an income tax.

 

385

Rep. Berger

Or any other county or city in the state?

 

390

Buchanan

Answered affirmatively.

 

392

Rep. Barnhart

The purpose of this disclosure would be what?

 

398

Buchanan

Described scenario where county requests tape of returns filed for comparison purposes, probably a compliance effort after the fact.  Anticipate it would be as needed to administer the tax.

 

416

Chair Shetterly

Are you satisfied with municipal corporations, does that work for counties?

 

418

Buchanan

John Phillips described definition of a municipal corporation does include cities and counties.

 

440

Dave Boyer

Spoke in support of SB 228, (Exhibit 10), provided background and discussion regarding upcoming vote on personal income tax in Multnomah County. -3 will help on the initial collection and follow-up enforcement.

 

 

TAPE 147, SIDE A

 

035

Walter Barkan

Spoke in support of SB 228, (Exhibit 11), as it provides new tax revenue for schools in Benton County. Access to state tax return is vital for effective enforcement. Current law prohibits sharing tax information with county governments.  Ensuring confidentiality addressed by -3 amendment.

 

055

Cyrel Gable

Spoke in support of SB 228, (Exhibit 12).  Corvallis is looking at a county personal income tax to raise money for schools.  -3 Amendment would assist county in tax collections.

 

075

Kathy Rodeman

Spoke in support of SB 228, (Exhibit 13), reiterated testimony of panel as it helps resolve funding issue for schools.

 

082

Chair Shetterly

Closed Public Hearing on SB 228

 

 

OPENED WORK SESSION ON SB 228.

 

090

Rep. Verger

MOTION:  MOVED ADOPTION OF THE –2 AMENDMENTS INTO SB 228.

 

ORDER:  HEARING NO OBJECTION, THE CHAIR SO ORDERS. (ALL MEMBERS PRESENT).

 

092

Rep. Verger

MOTION:  MOVED ADOPTION OF THE –3 AMENDMENTS INTO SB 228.

 

ORDER:  HEARING NO OBJECTION, THE CHAIR SO ORDERS. (ALL MEMBERS PRESENT).

 

095

 

 

100

Rep. Verger

MOTION:  MOVED SB 228 AS AMENDED TO THE HOUSE FLOOR WITH A DO PASS RECOMMENDATION.

 

ROLL CALL:  MOTION PASSED 9-0-0

REPRESENTATIVES VOTING AYE:  Barnhart, Berger, Farr, Hass, Hopson, Scott, Verger, Williams, Chair Shetterly.

 

Rep. Barnhart will carry the bill.

 

106

Chair Shetterly

Closed Work Session on SB 228.

 

 

108

Chair Shetterly

Meeting adjourned at 9:13 a.m.

 

 

Tape Log Submitted by,

 

 

 

Kathy Tooley, Committee Assistant

 

Exhibit Summary:

1.       Malik, “Staff Measure Summaries SB 223-A”, 2 pages

2.       Phillips, “SB 223-A Local Budgeting and Intergovernmental Agencies”, 1 page

3.       Malik, “Staff Measure Summary SB 229-A”, 1 page

4.       Malik, “Revenue Impact Statement SB 229-A”, 1 page

5.       Phillips, “SB 229 Due Date for Additional Taxes After Appeal”, 2 pages

6.       Malik, “Staff Measure Summary SB 228”, 1 page

7.       Malik, “SB 228 -1 Amendment”, 1 page

8.       Malik, “SB 228 -2 Amendment”, 1 page

9.       Malik, “SB 228 -3 Amendment”, 1 page

10.   Boyer, “Testimony SB 228”, 1 page

11.   Barkan, “Testimony SB 228”, 1 page

12.   Gable, “Testimony SB 228”, 1 page

13.   Rodeman, “Testimony SB 228”, 1 page