PUBLIC HEARING

HB 2682, 2683, 2865

BILL INTRODUCTION

 

TAPES 95-96 A

 

HOUSE REVENUE COMMITTEE

MARCH 31, 2005   1:00 PM   STATE CAPITOL BUILDING

 

Members Present:                      Tom Butler, Chair

                                                Rep. Vicki Berger, Chair

                                                Rep. Mark Hass, Vice-Chair

                                                Rep. Brian Boquist

                                                Rep. Sal Esquivel

                                                Rep. Larry Galizio

                                                Rep. Betty Komp

                                                Rep. Andy Olson

                                                Rep. Chuck Riley

 

                       

Witnesses Present:                      John Phillips, Dept. of Revenue

                                                H.A. (Mack)  MacDonald, Disabled American Veterans, Post 6

                                                Harley Ray, American Legion

                                                Michelle Deister, League of Oregon Cities

 

 

Staff Present:                          Paul Warner, Legislative Revenue Officer

                                                Mary Ayala, Economist

                                                Lizbeth Martin-Mahar, Economist

                                                Kristi Bowman, Committee Assistant

                                               

 

TAPE 95, SIDE A

002

Chair Butler

Calls meeting to order at 1:30 p.m.

 

 

 

OPENS WORK SESSION FOR BILL INTRODUCTION

 

 

 

014

Paul Warner

Gives overview of Legislative Concept (LC) 3455 (Exhibits 1 and 2). This LC modifies the existing the pollution control credit. Gives overview of LC 3490 (Exhibit 3) and LC 3510 (Exhibit 4). LC 3490 and 3510 concern tangible and intangible property pertaining to energy marketing.

 

 

 

027

Rep. Boquist

MOTION: MOVES LC 3490, 3510, AND 3455 BE INTRODUCED AS HOUSE REVENUE COMMITTEE BILLS.

 

 

 

034

Chair Butler

ORDER: THERE BEING NO OBJECTION, THE CHAIR SO ORDERS. MOTION PASSES 9-0-0. ANSWERING AYE: BERGER, HASS, BOQUIST, ESQUIVEL, GALIZIO, KOMP, OLSON, RILEY, BUTLER.

 

 

 

CLOSES WORK SESSION FOR BILL INTRODUCTION

 

 

 

OPENS PUBLIC HEARING FOR HOUSE BILL 2682.

 

 

 

040

Lizbeth Martin-Mahar

Gives overview of HB 2682 (Exhibit 5). It allows the Dept. of Revenue (DOR)  to waive penalties for late filing or failure to file a tax return if the taxpayer is a disabled veteran. Refers to the Revenue Impact Statement (Exhibit 6).

 

 

 

072

Chair Butler

Asks if there is any other similar statutory requirement that mandates certain groups [for penalty waivers].

 

 

 

074

Martin-Mahar

Responds that there is nothing in current law that specifies certain groups. Under current law the DOR has discretion to waive the late filing fees for some individuals who submit a petition.

 

 

 

084

Rep. Esquivel

Asks for the definition of “disabled veteran.”

 

 

 

090

Martin-Mahar

Responds that a disabled veteran is defined as a person entitled to disability compensation from the Dept. of Veteran Affairs, or a person who has received a Purple Heart. The  definition is in ORS 408.225

 

 

 

110

Rep. Boquist

Comments that the Oregon Paralyzed Veterans of America have corresponded with him about this bill. Suggests that another public hearing be scheduled for this bill in order for them to testify.

 

 

 

CLOSES PUBLIC HEARING FOR HOUSE BILL 2682

 

 

 

OPENS PUBLIC HEARING FOR HOUSE BILL 2683

 

 

 

136

Mary Ayala

Gives overview and revenue impact of HB 2683  (Exhibits 7 and 8). The bill modifies the definition of disabled persons for the purposes of the homestead property tax deferral.

 

 

 

190

John Phillips

Gives informational testimony on HB 2683 and submits a handout titled: HB 2683 Disabled Veteran Deferral Program (Exhibit 9).

 

 

 

220

Chair Butler

Asks if the property tax deferral funds would be returned to the Revenue Dept. after the sale of the home.

 

 

 

224

Phillips

Responds yes. Adds that “it is his understanding that the deferral payments out of the Revolving Deferral Account to pay for added participants would deplete the fund, and payments in the future would be deposited to repay that debt.”

 

 

 

234

Chair Butler

Comments that with interest accrued on the repayment monies, the fund would eventually become self-sustaining.

 

 

 

229

Phillips

Discusses variables of the Deferral Revolving Account (see page 2 of Exhibit 9). Comments that the DOR lien would be in effect for a longer period of time if disabled people are brought into the program. Adds that 10 bills including HB 2683 are pending in the 2005 session that pertain to property tax deferral (see page 3 of Exhibit 9).

 

 

 

330

Chair Butler

Discusses the revenue implications between a disabled person deferral and a senior citizen deferral.

 

CLOSES PUBLIC HEARING FOR HOUSE BILL 2683

 

 

 

OPENS PUBLIC HEARING FOR HOUSE BILL 2865

 

 

 

341

Ayala

Gives overview for HB 2865 (Exhibits 10). This bill increases the current homestead and personal property tax exemption amounts for a qualified war veteran with a disability of 40% or more. There are currently 38,000 veterans in this program, and they received an exemption averaging $12,600 per applicant. Refers to the Revenue Impact Statement (Exhibit 11).

 

 

 

384

H.A. (Mack) MacDonald

Testifies against HB 2865. Comments that the Disabled American Veterans (DAV) Post 6 members recommend that certain sections of the bill be changed or deleted. MacDonald cites specific sections of the bill for consideration.

 

 

 

TAPE 96, SIDE A

032

Chair Butler

Asks about the DAV’s position on HB 2682 and HB 2683.

 

 

 

034

MacDonald

Responds that the bills were acceptable to the DAV members, and they recommend a “do pass.”

 

 

 

046

Harley Ray

Testifies against HB 2865. Comments that this bill will help returning veterans who will be 100% disabled.

 

 

 

065

Chair Butler

Asks MacDonald to follow-up with Rep. Donna Nelson on the House Veteran Committee regarding pending legislation affecting veterans.

 

 

 

079

Michelle Deister

Asks committee members to look at the various bills pertaining to property taxes for veterans in a way that doesn’t adversely impact them.

 

 

 

095

Chair Butler

Asks Ayala about calculations used on the revenue impact.

 

 

 

096

Ayala

Responds that the amounts stated represent the full amount of taxes.

 

 

 

CLOSES PUBLIC HEARING FOR HOUSE BILL 2865

 

113

Paul Warner

Discusses committee business.

 

 

 

129

Chair Butler

Discusses committee business.

 

 

 

149

Chair Butler

Adjourns meeting at 2:11 p.m.

 

 

 

Tape Log Submitted by:

Reviewed by:

 

 

 

Kristi Bowman, Committee Assistant

Kim Taylor James, Committee Coordinator

 

Exhibit Summary:

  1. 1.      LC 3455, Legislative Counsel, 33 pp., 3/31/05
  2. 2.      LC 3455, Letter, Waugh, 1 pg., 03/31/05
  3. 3.      LC 3510, Legislative Counsel, 2 pp., 03/23/05
  4. 4.      LC 3490, Legislative Counsel, 4 pp., 03/21/05
  5. 5.      HB 2682, Staff Measure Summary, Martin-Mahar, 1 pg., 03/31/05
  6. 6.      HB 2682, Revenue Impact Statement, Martin-Mahar, 1 pg., 03/31/05
  7. 7.      HB 2683, Staff Measure Summary, Ayala, 1 pg., 03/30/05
  8. 8.      HB 2683, Revenue Impact Statement, Ayala, 1 pg., 03/30/05
  9. 9.      HB 2683, Handout: HB 2683, Disabled Veteran Deferral Program, Phillips, 6 pp., 03/31/05
  10. 10.  HB 2865, Staff Measure Summary, Ayala, 1 pg., 03/30/05
  11. 11.  HB 2865, Revenue Impact Statement, Ayala, 1 pg., 03/30/05