PUBLIC HEARING

HB 2197, 2089  

 

TAPES 82-83 A

 

HOUSE REVENUE COMMITTEE

MARCH 17, 2005   1:00 PM   STATE CAPITOL BUILDING

 

Members Present:                      Rep. Tom Butler, Chair

                                                Rep. Vicki Berger, Vice-Chair

                                                Rep. Mark Hass, Vice-Chair

                                                Rep. Brian Boquist

                                                Rep. Sal Esquivel

                                                Rep. Larry Galizio

                                                Rep. Betty Komp

                                                Rep. Chuck Riley                

 

Members Excused:                     Rep. Andy Olson

           

Witnesses Present:                      Scott West, Oregon Lodging Assn.

                                                Todd Davidson, Oregon Tourism Commission (OTC)

                                                Patty O’Sullivan, Legislative Director, Dept. of Human Services

                                                Doug Barber, Girl Scouts Assn.

                                                Dexter Johnson, Legislative Counsel

                                                Doug Schulz, Aldersgate Conference Center

                                                Jana Tindall, Oregon Parks and Recreation Dept.

                                                Gil Riddell, Association of Oregon Counties

                                                Patrick Allen, Office of Regulatory Streamlining

 

Staff Present:                          Paul Warner, Legislative Revenue Officer

                                                Mazen Malik, Economist

                                                Kristi Bowman, Committee Assistant

                                               

 

TAPE 82, SIDE A

002

Chair Butler

Calls meeting to order at 1:04 p.m.

 

 

 

OPENS PUBLIC HEARING FOR HOUSE BILL 2197

 

 

 

005

Mazen Malik

Gives overview of HB 2267 that was passed in the 2003 Regular Session. HB 2267 also concerns transient lodging taxes, but the language in that bill was not precise enough to extend the tax to vacation homes or similar transient lodgings. HB 2197 corrects the deficiencies in HB 2267 as stated in the Staff Measure Summary (Exhibit 1) and Revenue Impact Statement (Exhibit 2).

 

 

 

043

Malik

Discusses amendments 2197-1, 2197-2, and 2197-3 (Exhibits 4, 5, 6) that apply more specific language about the types of dwelling units that would be exempt from the transient tax.

 

 

 

055

Rep. Komp

Asks for clarification of youth camps and church camps being classified as non-profits.

 

 

 

058

Chair Butler

Responds that the witnesses will likely address her question.

 

067

Todd Davidson

Gives informational summary of HB 2267 (2003 Regular Session) from written testimony (Exhibit 8).  Discusses the OTC tourism advertising campaign and the revenue generated. Discusses regional distribution of advertising funds.

 

 

 

126

Rep. Riley

Asks about where inquiries about tourism come from. Asks about international advertising.

 

 

 

130

Davidson

He will provide that information, and states that the majority of inquiries come via the tourism web site. Most of the advertising focus is on states within driving distance (WA, Northern CA, and OR). Regarding overseas marketing, the commission advertises in Japan, western Europe, Mexico, and the United Kingdom.

 

 

 

157

Scott West

Testifies in support of HB 2197 because of the support received from the OTC for the hospitality industry in OR. Discusses leveraging local and state resources for tourism.

 

 

 

180

Chair Butler

Asks if West has any opinion about the three amendments to HB 2197.

 

 

 

186

West

Responds that he has no opposition to the church camp amendment (amendment 2197-1).

 

 

 

205

Chair Butler

Asks about developing Oregon’s tourism industry to be on par with the northeast region of the United States.

 

 

 

209

Davidson

HB 2267 (2003 Regular Session) has enhanced the development of tourism. He believes that within a few years, not decades, there will be significant growth in the state tourism industry.

 

 

 

228

Rep. Boquist

Asks for more specific numbers regarding the increase of people requesting tourism information from the Commission.

 

 

 

236

Davidson

Responds that about 970,000 contacted the tourism commission in 2004 and that he expects that number to exceed one million in 2005. The OTC strives for efficiency such as encouraging increased use of the web site.

 

 

 

265

Rep. Komp

On behalf of her 8th grade students, asks when a Six Flags amusement park is coming to Oregon. Asks the question to “plant the seed” with the OTC.

 

 

 

285

Patty O’Sullivan

Testifies on HB 2197, amendment 2. Wants to ensure that all state facilities that are licensed or certified by the Dept. of Human Services are considered exempt.

 

 

 

317

Doug Barber

Testifies on HB 2197. States that he is working with Rep. Berger on an amendment to include organizations like the Girl Scouts to be exempt from the lodging tax.

341

Rep. Berger

Discusses the 2197-1 amendment. Comments that the intent of the amendment is to retain legitimate use of a youth or church camp, but not to preclude them from renting their facility to another entity and be required to pay the lodging tax. Discusses the language in the 2197-1 and 2197-3 amendments.

 

 

 

397

Barber

Comments on the bill’s language in Section 3, sub paragraph 3, pertaining to the 30-day occupancy limit, which would also include camps like those of the Girl Scouts.  Expresses concern about Girl Scouts’ liability with the lodging tax when they rent their camp to another organization in order to defray operating expenses. Comments that the term “general public” needs clarification.

 

 

 

TAPE 83, SIDE A

024

Dexter Johnson

Discusses the intent of the language in the bill pertaining to renting a unit for less than 30 days and inclusion of youth and church camps. Amendment 2197-1 expands the bill’s intent to exclude youth or church camp from tax, regardless of the use of the property. Amendment 2197-3 modifies the definition in 2197-1.

 

 

 

050

Chair Butler

Discussion with Johnson about terms used in both amendments.

 

 

 

068

Rep. Berger

Asks Johnson whether all church and youth camps fit under the 30-day limit in the bill. Comments that many church and youth camps are open more than 30 days per year.

 

 

 

075

Johnson

Responds that even if a camp operates all year, as long as a member of the organization uses the facility, then the organization would be exempt.

 

 

 

085

Rep. Berger

Recommends further work on more specific language of the amendments

 

 

 

090

Rep. Riley

Comments that in his experience many church camps operate for the benefit of the local community, such as camps for disadvantaged children.

 

 

 

100

Johnson

Adds that the Dept. of Revenue has rule-making authority to define “dwelling unit” and other terms pertinent to this bill.

 

 

 

107

Rep. Esquivel

Asks if this situation runs into a landlord-tenant issues when occupancy is over a week.

 

 

 

110

Johnson

Responds that he believes that issue pertains to more than 30 days occupancy.

 

 

 

114

Chair Butler

Asks Rep. Berger to work with Legislative Counsel and other interested groups to specify the language for a future amendment.

 

 

 

CLOSES PUBLIC HEARING FOR HOUSE BILL 2197

OPENS PUBLIC HEARING FOR HOUSE BILL 2089

 

 

 

138

Malik

Gives overview of HB 2089 (Exhibit 9). The bill concerns the collection of transient tax, and allows local and state agencies to withhold payment of taxes until a $100 threshold is met.

 

 

 

CLOSES PUBLIC HEARING FOR HOUSE BILL 2089

 

 

 

RE-OPENS  PUBLIC HEARING FOR HOUSE BILL 2197

 

 

 

175

Doug Schulz

Submits written testimony (Exhibit 8). Schulz represents a non-profit camp association. Comments that the bill and amendments still do not address exemption for non-profit camps and conference centers. Discusses 30-day limitations. Comments that most non-profit camps must rent to other organizations besides their own because of the need to fund ongoing operational costs. Suggests amendment language to tie into the IRS definition of non-profit status. into the charter of the org. in which they cannot rent to the general public.

 

 

 

220

Rep. Riley

Clarifies that his camp only rents to other non-profit groups.

 

 

 

222

Schulz

Responds yes, and adds that is because they are a 501-3C organization. That IRS code prohibits renting to other for-profit groups.

 

 

 

CLOSES PUBLIC HEARING FOR HOUSE BILL 2197

 

RE-OPENS PUBLIC HEARING FOR HOUSE BILL 2089

 

241

West

Testifies in supports bill and conceptual amendment. The legislation will assist agencies with compliance.

 

 

 

247

Davidson

Testifies in support of the bill because it is about efficiency. Supports a conceptual amendment that addresses at least an annual remittance of payment.

 

 

 

282

Malik

Comments about the amendment currently being drafted. It will concern private owners as well as state agencies.

 

 

 

310

Jana Tindall

Testifies in support of bill as originally drafted. Submits written testimony (Exhibit 10). Does not support amendments because the statutes noted in the bill are under the umbrella of the OR Parks and Recreation Dept., and HB 2089 was written specifically for the Dept. Suggests adding amendment language pertaining to private owners to HB 2197 instead.

 

 

 

331

Gil Riddell

Testifies in support of bill for the same reasons as the Parks and Recreation Dept. Agrees with the one-year proposal to remit payments. Suggests consideration of a smaller threshold of payment because of the cost to agencies to process payments..

363

Patrick Allen

Testifies in support of HB 2089. His agency is a co-requestor of the original bill. Discusses that streamlining the payment process for state agencies and private owners would be helpful.

 

 

 

378

Tindall

Discusses the reason for the small dollar amounts of the threshold, and comments that payment is made within 3-6 months by her agency to coincide with the end of the camping season.

 

 

 

CLOSES PUBLIC HEARING FOR HOUSE BILL 2089

 

 

 

421

Chair Butler

Adjourns meeting at 2:00 p.m.

 

 

Tape Log Submitted by:

Reviewed by:

 

 

 

Kristi Bowman, Committee Assistant

Kim Taylor James, Committee Coordinator

 

Exhibit Summary:

  1. 1.      HB 2197, Staff Measure Summary, Malik, 1 pg., 03/17/05
  2. 2.      HB 2197, Revenue Impact Statement, Malik, 1 pg., 03/16/05
  3. 3.      HB 2197, Handout: Background on Transient Lodging Tax Receipts, Malik, 2 pp., 03/17/05
  4. 4.      HB 2197, Amendment 2197-1, Legislative Counsel, 1 pg., 03/15/05
  5. 5.      HB 2197, Amendment 2197-2, Legislative Counsel, 1 pg., 03/16/05
  6. 6.      HB 2197, Amendment 2197-3, Legislative Counsel, 1 pg., 03/17/05
  7. 7.      HB 2197, Testimony, Davidson, 5 pp., 03/17/05
  8. 8.      HB 2197, Testimony, Schulz, 1 pg., 03/17/05
  9. 9.      HB 2089, Staff Measure Summary, Malik, 1 pg., 03/17/05
  10. 10.  HB 2089, Testimony, Tindall, 1 pg., 03/17/05