PUBLIC HEARING: HB 2671 A, HB 2298 A, HB 3072 A

 

WORK SESSION: HB 2625

 

TAPES 114-115, A-B

 

SENATE REVENUE COMMITTEE

May 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

 

Witnesses Present:††††††††††† ††††††††††† Senator Rick Metsger, District 26

††††††††††††††††††††††† ††††††††††† ††††††††††† Gary Bower, Northwest Natural

††††††††††††††††††††††† ††††††††††† ††††††††††† Roy Hemmingway, Public Utility Commission

††††††††††††††††††††††† ††††††††††† ††††††††††† Gary Conklin, Industrial Customers of NW Utilites

††††††††††††††††††††††† ††††††††††† ††††††††††† Jeff Bissonnette, Citizensí Utility Board of Oregon

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

††††††††††††††††††††††† ††††††††††† ††††††††††† Rob Douglas, Columbia River Steamship Operators

††††††††††††††††††††††† ††††††††††† ††††††††††† Keith Leavitt, Port of Portland

††††††††††††††††††††††† ††††††††††† ††††††††††† Representative Tom Butler, District 60

††††††††††††††††††††††† ††††††††††††††††††††††† ††††††††††† †††††††††††

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

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

††††††††††††††††††††††† ††††††††††† ††††††††††† Lizbeth Martin-Mahar, Legislative Revenue Office

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

 

TAPE 114, SIDE A

 

004

Chair Deckert

Calls meeting to order at 1:08pm.

 

OPENS PUBLIC HEARING ON HB 2671 A

 

018

Sen. Metsger

Explains the proposed ĖA2 amendments which requires that public utilities file a non-consolidated income tax statement and discusses the reasoning behind it. Exhibit 1.

 

 

 

082

Sen. Ferrioli

States that he estimates that the bill only applies to three utilities in the state and that they do a thorough analysis of how they will fit into a more global network. Asks how potential purchasers would look at the disintegration of this tax structure.

 

 

 

099

Sen. Metsger

Responds that it is impossible to know whether it would have a positive or negative impact and asks if the state wants to encourage out of state ownership.

 

 

 

108

Sen. Ferrioli

Responds that it is irrelevant to the tax treatment of this issue.

 

Discussion follows.

 

 

 

124

Sen. Metsger

States that the issue is that taxpayers are paying taxes that are figure into the rates and then the utility companies arenít paying taxes themselves.

 

 

 

132

Sen. Ferrioli

Expresses concern with making a change in the tax treatment when they are actively marketing themselves.

 

 

 

164

Sen. Deckert

Asks if he spoke to the sponsors about the amendment.

 

 

 

167

Sen. Metsger

Responds positively.

 

 

 

178

Gary Bower

Testifies that the bill would affect his company but he doesnít know if it would be positive or negative.

 

 

 

186

Roy Hemingway

Testifies that he cannot take a position on the bill.Discusses problems with utility taxes and other possible solutions.

 

Questions and answers interspersed.

 

 

 

316

Gary Conklin

States that he is not able to take a position at this time, but expresses concern that it would raise the rates.

 

 

 

362

Jeff Bissonnette

States that he hasnít been able to look at the amendment yet but points out that this amendment doesnít harm rate payers.

 

 

 

395

Debra Buchanan

Expresses concern that the amendment isnít getting at the intention.

 

Questions and answers interspersed.

 

TAPE 115, SIDE A

 

CLOSES PUBLIC HEARING ON HB 2671 A

 

OPENS PUBLIC HEARING ON HB 2625

 

028

Mazen Malik

Explains HB 2625 which reactivates property tax exemption for cargo containers and establishes sunset at the year 2010. Exhibit 9. Discusses revenue impact. Exhibit 10.

 

 

 

058

Rob Douglas

Testifies in support of HB 2625 because it would continue the property tax exemption that has never been taxed and is not taxed in neighboring states.

 

Discussion follows.

 

 

 

074

Sen. Ringo

Asks if they are taxed anywhere in the Country.

 

 

 

075

Douglas

Responds negatively.

 

 

 

080

Keith Leavitt

Testifies in support of HB 2625 because it would allow Oregon to remain competitive.

 

 

 

089

Sen. Starr

Asks why they need a sunset at all.

 

 

 

092

Douglas

Responds that he doesnít believe there needs to be one.

 

 

 

100

Malik

Responds that exemptions given in the state that affect counties have to have a sunset date.

 

 

 

108

Sen. Ferrioli

States that this is a good piece of legislation and should be passed.

 

CLOSES PUBLIC HEARING ON HB 2625

 

OPENS WORK SESSION ON HB 2625

 

115

Sen. Ferrioli

MOTION: MOVES HB 2625 TO THE SENATE FLOOR WITH A DO PASS RECOMMENDATION.

 

 

 

118

Sen. Deckert

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

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

 

CLOSES WORK SESSION ON HB 2625

 

OPENS PUBLIC HEARING ON HB 2298 A

 

130

Malik

Explains HB 2298 A which modifies requirements business firms need to meet in order to qualify for small city business development income tax exemption. Exhibit 11. Discusses revenue impact. Exhibit 12.

 

 

 

183

Sen. Deckert

Asks if small businesses have taken advantage of this program.

 

 

 

194

Rep. Butler

Responds that nobody has taken advantage of the exemption and that this bill fixes the program to allow communities to qualify. Explains why the program is important and what HB 2298 does to change it.

 

Questions and answers interspersed.

 

 

 

338

Sen. Deckert

Asks if he thinks there are too many incentive programs.

 

 

 

343

Rep. Butler

Responds that they are getting closer to having enough and that this bill would provide jobs for rural communities.

 

 

 

391

Sen. Starr

Asks whatís in it for rural towns in Washington county.

 

TAPE 114, SIDE B

 

006

Rep. Butler

Recognizes that there are small communities in high population communities, but points out that they are within commuting range of large cities that have lower unemployment rates.

 

CLOSES PUBLIC HEARING ON HB 2298 A

 

OPENS PUBLIC HEARING ON HB 3072 A

 

039

Paul Warner

Explains HB 3072 A which authorizes state agencies, boards and commissions that issue occupational or professional licenses to require licensees to attest to and maintain tax compliance as a condition of issuance or renewal of said license. Exhibit 14.

 

 

 

054

Rep. Butler

Explains the goal of the bill to make certain that people licensed by the state of Oregon are paying their income taxes and bring in revenue. Discusses instances where this would be beneficial.

 

 

 

118

Sen. Hannon

States that the bill has nothing to do with what licenses are for and disagrees with using the licensure organizations as tax collecting agencies.

 

 

 

141

Rep. Butler

Responds that this bill is about making sure that people comply with the Oregon tax code and bringing in more revenue to the state.

 

Discussion follows.

 

 

 

169

Sen. Ferrioli

Expresses concern that the bill would be retroactive and hurt people that have made a minor mistake in the past.

 

 

 

177

Rep. Butler

Responds that a person would only be flagged if they had been charged with a felony of falsely and willingly not paying taxes.

 

Discussion follows.

 

 

 

233

Sen. Deckert

Adjourns meeting at 2:19 pm.

 

 

 

Tape Log Submitted by,

 

 

 

Tara Lantz, Committee Assistant

 

Exhibit Summary:

  1. HB 2671 A, Sen. Metsger, Proposed HB 2671-A2 Amendments, 1p.
  2. HB 2671 A, Mazen Malik, Staff Measure Summary, 1p.
  3. HB 2671 A, Mazen Malik, Revenue Impact Statement, 1p.
  4. HB 2671 A, Art Fish, Long-Term Rural Tax Incentives, 1p.
  5. HB 2671 A, Art Fish, Long-Term Rural Enterprise Zone Tax Incentives, 2pp.
  6. HB 2671 A2, Lizbeth Martin-Mahar, Staff Measure Summary, 1p.
  7. HB 2671 A2, Lizbeth Martin-Mahar, Revenue Impact Statement, 1p.
  8. HB 2671 A2, Lizbeth Martin-Mahar, A Lawmakerís Guide to Corporate Income Tax Apportionment, 4pp.
  9. HB 2625, Mazen Malik, Staff Measure Summary, 1p.
  10. HB 2625, Mazen Malik, Revenue Impact Statement, 1p.
  11. HB 2298 A, Mazen Malik, Staff Measure Summary, 1p.
  12. HB 2298 A, Mazen Malik, Revenue Impact Statement, 1p.
  13. HB 2298 A, Art Fish, Written Testimony, 5pp.
  14. HB 3072 A, Paul Warner, Staff Measure Summary from House Committee on General Government, 1p.