PUBLIC HEARING: SB 864

 

PUBLIC HEARING AND WORK SESSION: HB 2622, HB 2023 A

 

TAPES 65-66, A

 

SENATE REVENUE COMMITTEE

March 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:††††††††††† ††††††††††† Senator Roger Beyer, District 9

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

††††††††††††††††††††††† ††††††††††† ††††††††††† Patrick Allen, Oregon Economic and Community Development Department

††††††††††††††††††††††† ††††††††††† ††††††††††† Art Fish, Oregon Economic and Community Development Department

††††††††††††††††††††††† ††††††††††† ††††††††††† Tom Linhares, Columbia County Assessor

††††††††††††††††††††††† ††††††††††† ††††††††††† J.L. Wilson, National Federation of Independent Business

 

Staff Present:††† ††††††††††† ††††††††††† Lizbeth Martin-Mahar, Legislative Revenue Office

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

††††††††††††††††††††††† ††††††††††† ††††††††††† Steve Meyer, Legislative Revenue Office

††††††††††††††††††††††† ††††††††††† ††††††††††† Paul Warner, Legislative Revenue Office

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

 

TAPE 65, SIDE A

 

003

Chair Deckert

Calls meeting to order at 1:05pm.

 

OPENS PUBLIC HEARING ON SB 864

 

011

Paul Warner

Explains SB 864 which creates a task force on state agency debt collection. Exhibit 1.

 

 

 

019

Sen. Beyer

Discusses his intentions in drafting SB 864 and states that he is not sure it is needed at this time.

 

 

 

050

Sen. Deckert

Asks the Department of Revenue to testify.

 

 

 

059

Debra Buchanan

States that the Department will get some reports to the committee and would be willing to have someone speak to the committee on the unpaid debts owed to the Department.

 

 

 

065

Sen. Deckert

Asks why it is so difficult to get delinquent taxpayers to pay taxes.

 

 

 

069

Buchanan

Responds that there is a broad spectrum of why people donít file and that the Department of Revenue has to take time and effort to find these people.

 

 

 

082

Sen. Hannon

Asks if a private collector would have access to information that is confidential in the Department of Revenue Office.

 

 

 

090

Buchanan

Responds that she is not certain but that the Department does follow strict confidentiality rules by law.

 

 

 

096

Sen. Hannon

Asks if there are any federal laws that protect confidentiality of information that would not be accessible to private collectors.

 

 

 

098

Buchanan

Responds that there are federal laws protecting certain information but she is not certain about any exceptions at the state level regarding private collectors.

 

 

 

103

Sen. Beyer

Discusses report done by the Department of Revenue regarding the amount of money owed to the state that has not been collected.

 

 

 

123

Sen. Hannon

Asks about the track record of the Department of Revenue from the funds given to collect unpaid cigarette taxes.

 

 

 

137

Buchanan

Responds that she can get the committee that information.

 

 

 

143

Sen. Hannon

Asks if there is data that compares the rate of collections from the Department versus private collectors.

 

 

 

151

Buchanan

Responds affirmatively and states that she will get the report to the committee.

 

 

 

153

Sen. Hannon

Asks if using private collectors would create a revolving door of people walking in off the street saying they are from an agency and need information creating a need for more personnel in the Department of Revenue.

 

 

 

174

Buchanan

Responds that it may be likely but right now they just hand over the debt to the private agency and then donít have any further contact.

 

 

 

192

Sen. Beyer

Discusses his frustrations with continually giving the Department of Revenue and not seeing any results.

 

 

 

216

Sen. Deckert

Asks if the Department can track the collections after what occurred in the sixth special session for the next twelve weeks.

 

 

 

223

Buchanan

Responds that they do track the collections and discusses the packages and cuts in funding that they have received.

 

 

 

237

Sen. Ferrioli

Expresses concern over ending the session with only creating a task force instead of authorizing private collection agencies to collect unpaid taxes.

 

 

 

295

Sen. Deckert

Responds that this bill could be a vehicle to do that.

 

 

 

299

Warner

Discusses report done by the Department of Revenue.

 

 

 

315

Sen. Hannon

Asks if they could increase the number of uncollected debts if they put tax deductions or credits on hold for the next couple of years.

 

 

 

319

Warner

Responds affirmatively.

 

CLOSES PUBLIC HEARING ON SB 864

 

327

Sen. Deckert

Refers members and public to SB 550-2 proposed amendments. Exhibit 2.

 

OPENS PUBLIC HEARING ON HB 2622

 

348

Patrick Allen

Testifies in support of HB 2622 and gives estimates for the income tax revenues created by the jobs associated with e-commerce enterprise zone investments. Exhibit 6.

 

 

 

410

Sen. Deckert

Discusses the existing e-commerce enterprise zones and asks why the other zones have not taken off like Medford and Roseburg.

 

 

 

428

Allen

Responds that Medford and Roseburg took early interest and got businesses involved early. Discusses different factors for each zoneís success.

 

TAPE 66, SIDE A

 

008

Art Fish

States that it has been less than a year since they made these designations and that the question should be why did Medford and Roseburg have such a boom. Discusses factors for different zones.

 

 

 

033

Sen. Hannon

Discusses Medfordís success and how they had businesses waiting in the wings.

 

Discussion follows.

 

CLOSES PUBLIC HEARING ON HB 2622

 

OPENS WORK SESSION ON HB 2622

 

048

Sen. Hannon

MOTION: MOVES HB 2622 TO THE SENATE FLOOR WITH A DO PASS RECOMMENDATION.

 

 

 

051

Sen. Deckert

ORDER: HEARING NO OBJECTION, MOTION PASSES: 4-0-2. SENATORS EXCUSED: CORCORAN, RINGO.

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

 

OPENS PUBLIC HEARING ON HB 2023 A

 

063

Mazen Malik

Explains HB 2023 A which alters the time-base of the indexing for inflation used as a threshold to cancel personal property. Discusses revenue impact. Exhibit 7.

 

 

 

112

Tom Linhares

Discusses the background of HB 2023 A and testifies in support because it allows the assessors to know what the cancellation threshold is in January, which makes it easier for them to process returns.

 

 

 

142

J.L. Wilson

Testifies in support of HB 2023 A because it modifies the bill they asked for last session. Discusses the amendment developed in the house. Gives example of a small business that would benefit from HB 2023 A. Exhibit 8.

 

 

 

162

Sen. Hannon

Asks if HB 2023 A would prevent a person from appealing a mistake made by the assessor.

 

 

 

197

Linhares

Responds that an assessor can correct a mistake on his own without having to go the board of appeals.

 

CLOSES PUBLIC HEARING ON HB 2023 A

 

OPENS WORK SESSION ON HB 2023 A

 

209

Sen. Ferrioli

MOTION: MOVES HB 2023 A TO THE SENATE FLOOR WITH A DO PASS RECOMMENDATION.

 

 

 

219

Sen. Deckert

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

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

 

 

 

220

Sen. Deckert

Adjourns meeting at 1:49pm.

 

 

 

 

Tape Log Submitted by,

 

 

 

Tara Lantz, Committee Assistant Reviewed by Kim Taylor James

 

Exhibit Summary:

1.      SB 864, Paul Warner, Staff Measure Summary, 1p.

2.      SB 550, Steve Meyer, Proposed LC-2 Amendments, 22pp.

3.      HB 2622, Lizbeth Martin-Mahar, Revenue Impact Statement, 1p.

4.      HB 2622, Lizbeth Martin-Mahar, Fiscal Impact Statement, 1p.

5.      HB 2622, Lizbeth Martin-Mahar, Staff Measure Summary, 1p.

6.      HB 2622, Patrick Allen, Written Testimony, 1p.

7.      HB 2023 A, Mazen Malik, Revenue Impact Statement, 1p.

8.      HB 2023 A, J.L. Wilson, Written Testimony, 1p.