ORIENTATION MEETING

 

TAPES 22-23, A-B

 

SENATE REVENUE COMMITTEE

FEBRUARY 6, 2003   1:00 PM   STATE CAPITOL BUILDING

 

Members Present:                        Senator Ryan Deckert, Chair

                                                Senator Ted Ferrioli, Vice Chair

                                                Senator Tony Corcoran

                                                Senator Lenn Hannon

                                                Senator Charlie Ringo

                                                Senator Bruce Starr

 

Witness Present:                        Debra Buchanan, Department of Revenue

 

Staff Present:                            Paul Warner, Legislative Revenue Office

                                                Lizbeth Martin-Mahar, Legislative Revenue Office

                                                Tara Lantz, Committee Assistant

 

TAPE 22, SIDE A

 

003

Chair Deckert

Calls meeting to order at 1:10 pm.

 

 

 

007

Lizbeth Martin-Mahar

Briefly outlines presentation: Oregon Income Taxes. Exhibit 1, slide 1.

 

 

 

022

Martin-Mahar

Compares business income tax returns by business type in 1990 and 2000. Exhibit 1, slide 2.

 

 

 

057

Martin-Mahar

Compares number of returns by income and business type in 1990 and 2000. Exhibit 1, slide 3.

 

 

 

094

Martin-Mahar

Compares business income by business type in 1990 and 2000. Exhibit 1, slide 4.

 

 

 

128

Martin-Mahar

Discusses business income statements. Exhibit 1, slides 5-6.

 

 

 

198

Sen. Ringo

Asks about a minimum tax.

 

Discussion follows.

 

 

 

216

Martin-Mahar

Discusses the range of state corporate income tax rates in 2002. Exhibit 1, slide 7.

 

 

 

252

Sen. Hannon

Asks for further details in state comparisons.

 

Extensive discussion follows.

 

TAPE 23, SIDE A

 

047

Martin-Mahar

Discusses corporate tax credits used. Exhibit 1, slide 8.

 

Questions and answers interspersed.

 

 

 

099

Martin-Mahar

Discusses the corporate excise tax. Exhibit 1, slide 9.

 

 

 

118

Martin-Mahar

Discusses Multi-State C-Corporations percent of total returns and net income from 1990-2000. Exhibit 1, slide 10.

 

 

 

135

Martin-Mahar

Discusses the breakdown of C-Corporate returns by income. Exhibit 1, slide 11.

 

 

 

149

Martin-Mahar

Discusses the breakdown of C-Corporate net income by income. Exhibit 1, slide 12.

 

Questions and answers follow.

 

 

 

171

Martin-Mahar

Discusses tax returns and net tax in 2000. Exhibit 1, slide 13.

 

 

 

193

Martin-Mahar

Discusses the corporate income and excise tax payments index of 12 month totals. Exhibit 1, slide 14.

 

 

 

254

Martin-Mahar

Discusses industry sectors with a decline greater than $1 million in corporate payments between July 2001 and November 2002. Exhibit 1, slide 15.

 

 

 

285

Martin-Mahar

Discusses corporate excise tax and multi-state apportionment. Exhibit 1, slide 16.

 

 

 

318

Martin-Mahar

Discusses state apportionment formulas in 2002. Exhibit 1, slides 17-18.

 

 

 

384

Martin-Mahar

Gives simple example of apportioning business income of a multi-state corporation. Exhibit 1, slide19.

 

TAPE 22, SIDE B

 

027

Martin-Mahar

Gives simple example of apportioning business income using double-weighted sales. Exhibit 1, slide 20.

 

 

 

057

Martin-Mahar

Gives simple example of apportioning business income using super-weighted scales. Exhibit 1, slide 21.

 

 

 

095

Martin-Mahar

Gives simple example of the sales throwback rule. Exhibit 1, slide 22.

 

 

 

162

Debra Buchanan

Briefly outlines presentation: Administrative Issues in the Corporate Tax System. Exhibit 2, slide 1.

 

 

 

172

Debra Buchanan

Discusses jurisdictions to taxing and the concept of “nexus” and gives example. Exhibit 2, slides 2 -4.

 

 

 

184

Debra Buchanan

Discusses due process clause and commerce clause and gives example of both. Exhibit 2, slides 5-8.

 

Questions and answers follow.

 

 

 

234

Debra Buchanan

Discusses P.L. 86-272. Exhibit 2, slide 9.

 

Questions and answers follow.

 

 

 

280

Debra Buchanan

Discusses what is not protected activity. Exhibit 2, slide 10.

 

 

 

293

Debra Buchanan

Gives examples of what is and is not protected and discusses throwback rule. Exhibit 2, slides 11-12.

 

 

 

319

Debra Buchanan

Discusses unitary versus separate reporting and gives examples of both. Exhibit 2, slides 13-15.

 

 

 

345

Debra Buchanan

Discusses advantages and disadvantages of unitary and separate reporting. Exhibit 2, slides 16-17.

 

 

 

395

Sen. Deckert

Administrative Business.

 

 

 

422

Sen. Ferrioli

Asks about the Comprehensive Annual Financial Report and asks for the Legislative Revenue Office to give presentation on it.

 

Discussion follows.

 

 

 

510

Sen. Deckert

Adjourns meeting at 2:32 pm.

 

 

 

Tape Log Submitted by,

 

 

 

Tara Lantz, Committee Assistant Reviewed by Kim Taylor James

 

Exhibit Summary:

1.      Lizbeth Martin-Mahar, Corporate Income Taxes, 11pp.

2.      Debra Buchanan, Administrative Issues in the Corporate Tax System, 9pp.