BILL INTRODUCTION: LC 3764

WORK SESSION: HB 2182  

 

TAPE 225-226, A

 

HOUSE REVENUE COMMITTEE

JULY 25, 2003   1:00 PM   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                                               

 

Staff Present:                            Paul Warner, Legislative Revenue Officer

                                                Mazen Malik, Legislative Revenue Office

                                                Richard Yates, Legislative Revenue Office

                                                Kathy Tooley, Committee Assistant

 

TAPE 225, SIDE A

 

004

Chair Shetterly

Calls meeting to order at 1:30 p.m.

 

BILL INTRODUCTION OF LC 3764

 

031

Chair Shetterly

MOTION: MOVES INTRODUCTION, AS COMMITTEE BILL, OF LC 3764 (Exhibit 1) RELATING TO FEES.

 

Provided letter of explanation from Legislative Counsel (Exhibit 2).

 

 

 

035

Chair Shetterly

HEARING NO OBJECTION, MOTION PASSES.

 

OPENS WORK SESSION ON HB 2182

 

038

Paul Warner

Provides description the House Revenue Plan (Exhibit 3).

 

 

 

100

Warner

Discusses the corporate minimum tax element.

 

 

 

122

Warner

Explains the property tax discount component.

 

 

 

132

Warner

Discusses the consumption tax element.

 

 

 

141

Warner

Discusses the Education Stability fund and lottery discretionary revenue components.

 

 

 

158

Warner

Discusses other funds including the Cultural Trust and the medical provider charge.

 

 

 

176

Chair Shetterly

Asks about bonds.

 

 

 

177

Warner

Responds that bonds are yet to be determined.

 

 

 

180

Warner

Provides reasoning for the higher figure. Emphasizes that the fiscal office is lowering some of estimates in the fund shift group so the bottom line number will be going down.

 

 

 

204

Warner

Describes “Components of HB 2182 and -3 Amendment” (Exhibit 4).  Describes the HB 2182-3 amendments (Exhibit 5).

 

 

 

250

Warner

Gives explanation of the medical deduction phase in as described in page 5, section 4.

 

 

 

260

Warner

Describes the federal tax subtraction elements.

 

 

 

288

Warner

Discusses the personal exemption credit elements.

 

 

 

320

Richard Yates

Explains the depreciation treatment for SUV’s.

 

 

 

370

Chair Shetterly

Asks if the revenue impact is higher than the original bill because of the additional year and the changes at the federal level.

 

 

 

375

Yates

Responds affirmatively.

 

 

 

381

Warner

Discusses the reduction in corporate income tax credits.

 

 

 

400

Warner

Discusses the corporate minimum tax elements. 

 

 

 

422

Warner

Discusses property tax discount rate reduction component.

 

TAPE 226, SIDE A

 

018

Rep. Williams

Asks about the assumption that new lottery revenues will be coming from the expansion of video gaming.

 

 

 

027

Warner

Responds that in HB 3642, 90% of the revenue flowing into the stability fund was directed to state school fund and that any revenue exceeding lottery projections will go into the state school fund.

 

 

 

035

Rep. Williams

Asks if the estimates that assume an increase in lottery revenues come from the lottery commission?

 

 

 

037

Warner

Responds that $108 million is the current estimate and that the other $23 million is a result of a higher lottery total that is not specified in statute. States that the estimate is based on a change in policy at Lottery.

 

 

 

054

Rep. Williams

Clarifies that the revenues resulting from the policy change would go to the state school fund.

 

 

 

063

Rep. Hass

Asks to what extent the amendments would reduce the temporary income tax in Multnomah County.

 

 

 

065

Warner

Responds that Multnomah County is about 22% of the total personal income liability and that their decision depends on the state school fund.

 

 

 

070

Chair Shetterly

States that the offset is not identified specifically in the measure and it is up to the county commissioners.

 

 

 

084

Warner

Points out that these are all estimates and they would need to see the final product before they make their decision.

 

 

 

080

Rep. Scott

Asks if section 22-28 apply to an LC.

 

 

 

092

Warner

Responds that he doesn’t know, but will check.

 

CLOSES WORK SESSION ON HB 2182

 

100

Chair Shetterly

Meeting adjourned at 2:10 p.m.

 

 

 

 

 

Tape Log Submitted by,

 

 

 

Kathy Tooley, Committee Assistant

 

Exhibit Summary:

1.       Chair Shetterly, LC 3764, 14pp.

2.       Ted Reutlinger, Letter from Legislative Counsel, 1p.

3.       Paul Warner, House Revenue Plan, 1p.

4.       Paul Warner, Major Components of HB 2182 and -3 Amendment, 3pp.

5.       Paul Warner, Proposed HB 2182-3 Amendments, 23pp.