PUBLIC HEARING AND WORK SESSION: SB 225, SB 228

 

PUBLIC HEARING: SB 229

 

WORK SESSION: SB 232

 

TAPES 34-35, A-B

 

SENATE REVENUE COMMITTEE

FEBRUARY 18, 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††††††† †††††††††††

 

Witnesses Present:††††††††††† ††††††††††† David Longanecker, Western Interstate Commission for Higher Education

††††††††††††††††††††††† ††††††††††† ††††††††††† John Phillips, Department of Revenue

††††††††††††††††††††††† ††††††††††† ††††††††††† Doug Ebner, Marion County Assessor

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

††††††††††††††††††††††† ††††††††††† ††††††††††† Dexter Johnson, Legislative Counsel

 

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

††††††††††††††††††††††† ††††††††††† ††††††††††† Mazen Malik, Legislative Revenue Office

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

 

TAPE 34, SIDE A

 

004

Chair Deckert

Calls meeting to order at 1:08pm.

 

OPENS PUBLIC HEARING ON SB 225

 

017

Mazen Malik

Explains Section 1 of SB 225 which changes the value of payments on exempt port properties to Real Market Value (RMV). Exhibits 1-2.

 

 

 

029

Malik

Explains Sections 2 and 3 of SB 225 which freezes annual growth in Maximum Assessed Value (MAV) for farm and open space land.

 

 

 

044

Malik

Explains Section 4 of SB 225 which sets an effective date.

 

 

 

046

Malik

Explains Sections 5 and 6 of SB 225 which establishes Assessed Value (AV) and Maximum Assessed Value (MAV) for partially exempt and specially assessed land.

 

 

 

053

Malik

Explains Sections 7 and 8 of SB 225 which sets an effective date.

 

 

 

061

Malik

Explains Sections 9 and 10 of SB 225 which takes out unnecessary requirement.

 

 

 

066

Malik

Discusses revenue impact of SB 225. Exhibit 3.

 

 

 

082

John Philips

Testifies in support of SB 225 because it fixes unanticipated problems created from Measure 50. Exhibit 5. Begins by discussing section 1.

 

 

 

127

Phillips

Discusses sections 2, 3, and 4.

 

 

 

150

Phillips

Discusses sections 5, 6, 7, and 8.

 

 

 

209

Phillips

Discusses sections 9 and 10.

 

 

 

233

Sen. Hannon

Asks why sections 2 and 3 werenít dealt with in 1997.

 

 

 

240

Phillips

States that he believes people didnít understand this adjustment would need to be made. Explains why it is necessary now.

 

 

 

287

Sen. Hannon

Asks if there is typically a quicker rise in property evaluation on special assessed property rather than residential.

 

 

 

294

Phillips

Answers that special assessed properties are so varied he canít answer that.

 

 

 

312

Sen. Hannon

Asks how it would affect the look back period after a special exemption was no longer in effect.

 

 

 

330

Phillips

Responds that once a property is disqualified taxes are determined by what the taxes would have been.

 

 

 

365

Doug Ebner

Responds that they compute each year individually.

 

Discussion follows.

 

CLOSES PUBLIC HEARING ON SB 225

 

OPENS WORK SESSION ON SB 225

 

415

Sen. Corcoran

MOTION: MOVES SB 225 TO THE SENATE FLOOR WITH A DO PASS RECOMMENDATION.

 

 

 

421

Sen. Hannon

States that he will vote it out of committee but reserves the right to vote no after he checks it out with his own county assessor.

 

 

 

442

Sen. Deckert

ORDER:

ROLL CALL VOTE: MOTION PASSES: 4-0-2.

SENATORS VOTING AYE: CORCORAN, HANNON, STARR, DECKERT.

SENATORS EXCUSED: RINGO, FERRIOLI.

Sen. Corcoran will carry the bill on the Senate Floor.

 

CLOSES WORK SESSION ON SB 225

 

OPENS PUBLIC HEARING ON SB 228

 

TAPE 35, SIDE A

 

013

Malik

Explains SB 228 which permits disclosure of property valuation to lessor, lessee, or other person in possession of property. Exhibit 6. States that there is no revenue or fiscal impact. Exhibits 7-8.

 

 

 

029

Phillips

Testifies in support of SB 228 because it allows the Department of Revenue to accurately value property and prevents double assessments. Exhibit 9.

 

 

 

069

Sen. Deckert

Asks what the Department of Revenue does without these changes.

 

 

 

071

Phillips

Responds that they currently call the entity that reported the information and try to make sure everything is accurate and possibly ask for written authorization.

 

 

 

088

Buchanan

Testifies in support of SB 228 because it allows flexibility to work with taxpayers and their designees. Exhibit 9.

 

 

 

104

Sen. Hannon

Asks about language of the bill on lines 22-26.

 

 

 

119

Phillips

Responds that that is the language that allows them to disclose between parties.

 

 

 

127

Sen. Hannon

Asks if somebody could find out additional information beyond the value of the property.

 

 

 

133

Phillips

Responds that he doesnít believe any conversations would involve anything else.

 

 

 

136

Sen. Hannon

Points Phillips to a section that includes reporting to child support enforcement services.

 

Discussion follows.

 

 

 

168

Dexter Johnson

States that the substance of the language isnít being changed but clarified.

 

 

 

182

Sen. Hannon

Asks whether information other than value of property can be obtained.

 

 

 

194

Johnson

Responds negatively.

 

Discussion follows.

 

CLOSES PUBLIC HEARING ON SB 228

 

OPENS WORK SESSION ON SB 228

 

244

Sen. Starr

MOTION: MOVES SB 228 TO THE SENATE FLOOR WITH A DO PASS RECOMMENDATION.

 

 

 

249

Sen. Deckert

ORDER: HEARING NO OBJECTION, MOTION PASSES: 5-0-1. SENATOR EXCUSED: CORCORAN.

Sen. Deckert will carry the bill on the Senate Floor.

 

OPENS PUBLIC HEARING ON SB 229

 

248

Malik

Explains SB 229 which changes the due date for additional taxes owed as a result of court decision. Exhibit 10. Discusses revenue impact. Exhibit 11.

 

 

 

301

Phillips

Testifies in support of SB 229 because it fixes the unintended consequence of SB 125 (1999 Regular Legislative Session) of extending due dates to tax appeal cases. Exhibit 13.

 

 

 

369

Sen. Deckert

Asks if there are any cases right now pending litigation that this would affect.

 

 

 

380

Phillips

Responds that there could be and that Sen. Deckert has a good point that the language should maybe only include appeals after the effective date of the bill.

 

 

 

419

Sen. Deckert

Suggests making changes to the bill to exclude tax appeals currently in process.

 

 

 

423

Phillips

Agrees that the changes should be made.

 

CLOSES PUBLIC HEARING ON SB 229

 

OPENS WORK SESSION ON SB 232

 

TAPE 34, SIDE B

 

003

Sen. Hannon

Discusses why he initially objected SB 232 and why he now supports it without amendments. Refers members to memo from the Association of Counties in support of SB 232. Exhibit 14.

 

 

 

017

Sen. Hannon

MOTION: MOVES SB 232 TO THE SENATE FLOOR WITH A DO PASS RECOMMENDATION.

 

 

 

023

Sen. Deckert

ORDER: HEARING NO OBJECTION, MOTION PASSES: 5-0-1. SENATOR EXCUSED: CORCORAN.

 

 

 

040

David Longanecker

Gives brief outline of presentation: Western Interstate Commission for Higher Education (WICHE) and Oregon. Exhibit 15.

 

 

 

051

Longanecker

Gives brief history of WICHE.

 

 

 

059

Longanecker

Discusses mission of WICHE.

 

 

 

074

Longanecker

Discusses regional priorities of WICHE

 

 

 

078

Longanecker

Discusses student Exchange Programs.

 

 

 

107

Longanecker

Discusses other WICHE programs.

 

 

 

121

Longanecker

Discusses Oregonís higher education situation.

 

 

 

145

Longanecker

Discusses the growing demand for higher education in Oregon.

 

 

 

234

Longanecker

Discusses Oregonís increasingly higher need students.

 

Questions and answers interspersed.

 

 

 

314

Longanecker

Discusses Oregonís limited financial aid system.

 

 

 

378

Longanecker

Discusses Oregoní higher education future.

 

 

 

433

Sen. Deckert

Adjourns meeting at 2:41pm.

 

 

 

Tape Log Submitted by,

 

 

 

Tara Lantz, Committee Assistant Reviewed by Kim Taylor James

 

Exhibit Summary:

1.      SB 225, Mazen Malik, Staff Measure Summary, 1p.

2.      SB 225, Mazen Malik, Main Points, 1p.

3.      SB 225, Mazen Malik, Revenue Impact Statement, 1p.

4.      SB 225, Mazen Malik, Fiscal Impact Statement, 1p.

5.      SB 225, John Phillips, Written Testimony, 8pp.

6.      SB 228, Mazen Malik, Staff Measures Summary, 1p.

7.      SB 228, Mazen Malik, Revenue Impact Statement, 1p.

8.      SB 228, Mazen Malik, Fiscal Impact Statement, 1p.

9.      SB 228, John Phillips and Debra Buchanan, Written Testimony, 3pp.

10.  SB 229, Mazen Malik, Staff Measure Summary, 1p.

11.  SB 229, Mazen Malik, Revenue Impact Statement, 1p.

12.  SB 229, Mazen Malik, Fiscal Impact Statement, 1p.

13.  SB 229, John Phillips, Written Testimony, 2pp.

14.  SB 232, Gil Riddell, Written Testimony, 1p.

15.  David Longanecker, WICHE and Oregon Presentation, 8pp.

16.  David Longanecker, WICHEís Role in the Dynamic West, 2pp.