WORK SESSION HB 2652  

 

TAPE 189 A

 

HOUSE REVENUE COMMITTEE

JUNE 16, 2003   9:30 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 Mark Hass

                                                Representative Elaine Hopson

                                                Representative Max Williams                                               

 

Members Excused:                      Representative Pat Farr

 

Witness Present:                        John Ledger, Associated Oregon Industries, (AOI)

 

Staff Present:                            Paul Warner, Legislative Revenue Officer

                                                Lizbeth Martin-Mahar, Legislative Revenue Office

                                                Kathy Tooley, Committee Assistant

 

TAPE 189 SIDE A

 

004

Chair Shetterly

Calls meeting to order at 9:35 a.m.

 

HB 2652

 

006

Lizbeth Martin-Mahar

Described -12 (Exhibit 1), and -13 amendments, (Exhibit 2).  Provided Staff Measure Summary, (Exhibit 3).

 

010

Martin-Mahar

The -12 amendments which incorporate the conceptual amendment from the previous meeting, eliminates double-dipping between the pollution control tax credit and the business energy tax credit; retains current law.

 

024

Martin-Mahar

The -13 amendments restrict double-dipping between the pollution control and business energy tax credits.  A choice must be made between the two credits; also a choice must be made between the pollution control credit and the truck engine tax credit in the transportation bill.  The Department of Environmental Quality (DEQ) does not think there are many instances in which a truck engine would qualify for both credits.

 

037

Martin-Mahar

Discussed revenue impact (Exhibit 4).

 

040

 

Question and discussion regarding the increase in the business energy tax credit.

 

043

 

Question and discussion regarding alternative energy devices, and increases in the residential tax.

 

040

John Ledger

Discussed tax credits for chippers, which amount to 1-2% of total credits.  DEQ developed the program to encourage use of chippers due to pollution issues. This was done by rule and can be changed by rule.

 

087

Rep. Berger

Discussed pollution control tax credit spreadsheet she had requested from DEQ, and fact sheet developed by her staff on “’01-’03 PCTC Issued Certificates”, (Exhibit 5).

 

105

Chair Shetterly

For the record, 1% of the total amount of value of the credits for a chipper,  1% for trucks and vehicles and 5% for vending machines.

 

108

 

Questions, discussion and acknowledgement of mathematical error regarding total tax liability vs. chippers.  Discussed the percentage noted was the same as Ledger had testified.

 

126

Chair Shetterly

MOTION:  MOVED ADOPTION OF THE –12 AMENDMENTS INTO HB 2652.

 

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

 

131

Chair Shetterly

MOTION:  MOVED ADOPTION OF THE –13 AMENDMENTS INTO HB 2652.

 

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

 

135

Chair Shetterly

MOTION:  MOVED HB 2652, AS AMENDED, TO THE HOUSE FLOOR WITH A DO PASS RECOMMENDATION

 

138

Rep. Hass

Supported the bill last session as part of a compromise, would like to honor and uphold. Questioned strategy of giving a major tax credit to Enron, which paid the minimum Oregon tax of $10, when new jobs are not being added, and are instead being eliminated.  Cited need to build an Oregon economy that is held together in a thoughtful manner.

 

171

Rep. Barnhart

Discussed the history of the tax credit as well understood. Concurred with Rep. Hass comments.  Said the value and need for this credit has passed. Agreed with need to uphold the compromise and phase out the tax credit.

 

199

Rep. Williams

Recognized comments made by Reps. Hass and Barnhart.  Haven’t addressed the issue of the substantial burden for companies to do business in Oregon, maintain employment and increase revenues. This has been a proven program that has allowed for a cooperative response for companies and he will support the bill.

 

227

Rep. Berger

The credit has been a useful tool, that has dealt with the pollution problem; also useful in dealing with new technology in preventing pollution.  Would support keeping it.

 

245

Chair Shetterly

Enron does not necessarily indict the pollution control tax credit; there are lots of business tax payers using it fairly and appropriately. Acknowledged the evolution of the bill that carried pollution control forward last time.  The revenue impact of this bill comes from the elements in the Governor’s amendments.  The Governor suggested that might be a little rich, but did not propose amendments to reduce the level of energy tax credit. 

 

262

Rep. Hass

The “Tax Expenditure Report”* notes that this tax credit has not been effective and may not be achieving its purpose.

 

*NOTE:  “2003-2005 Tax Expenditure Report” was received as a Committee Exhibit on February 3, 2003.

 

281

 

ROLL CALL:  MOTION PASSED 6-2-1

REPRESENTATIVES VOTING AYE:  Berger, Farr, Hopson, Scott, Verger, Williams, Chair Shetterly. VOTING NO:  Barnhart, Hass.

 

Rep. Chair Shetterly will carry the bill.

 

291

Chair Shetterly

Closed the Work Session on HB 2652.

 

 

293

Chair Shetterly

Meeting adjourned at 10:05 a.m.

 

 

Tape Log Submitted by,

 

 

 

Kathy Tooley, Committee Assistant

 

Exhibit Summary:

1.       Martin-Mahar, “HB 2652-12 Amendments”, 41 pages

2.       Martin-Mahar, “HB 2652-13 Amendments”, 1 page

3.       Martin-Mahar, “Staff Measure Summary HB 2652”, 2 pages

4.       Martin-Mahar, “Revenue Impact Statement HB 2652”, 1 page

5.       Berger, “’01-’03 PCTC Issued Certificates”, 1 page