INFORMATIONAL MEETING

 

TAPES 5 A-B, 6 A

 

SENATE REVENUE COMMITTEE

JANUARY 19, 2005 9:00 AM STATE CAPITOL BUILDING

 

Members Present:††††††††††††††††† Senator Ryan Deckert, Chair

††††††††††††††††††††††††††††††††††† ††††††††††† Senator Rick Metsger

††††††††††††††††††††††††††††††††††††††††††††††† Senator Floyd Prozanski

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

Members Excused:†††††††††††††††† Senator Gary George

††††††††††††††††††††††††††††††††††††††††††††††† Senator Bruce Starr, Vice Chair

 

Visiting Member:†††††††††††††††††††† Senator Charles Starr

 

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

††††††††††††††††††††††††††††††††††††††††††††††† Mazen Malik, Economist

††††††††††††††††††††††††††††††††††††††††††††††† Barbara Guardino, Committee Assistant

 

 

TAPE 5, SIDE A

004

Chair Deckert

Calls meeting to order at 9:07 a.m. Introduces LRO economist Mazen Malik and Committee Assistant Barbara Guardino.

 

INFORMATIONAL MEETING

038

Mazen Malik

Begins slide presentation, Excise Taxes 2005 Orientation, page 1 (EXHIBIT 1).

 

058

Malik

Discusses Tobacco Revenues, page 2. Cigarette Tax Rate.

 

106

Malik

Discusses State Excise Tax Rates, page 3.

 

120

Malik

Discusses 2003-04 Revenue pie chart, page 4.

 

130

Malik

Discusses Distribution Proportions, Percents.

 

160

Chair Deckert

Asks, does Health Department or DHS administer the tobacco use reduction account?

 

165

Malik

Responds, DHS does this. Will find out how this is done.

 

177

Malik

Discusses Cigarette Tax Revenue Forecast, page 5.

 

202

Malik

Discusses Taxed Distributions, Cigarettes Packs in Hundreds of Millions.

 

240

Malik

Discusses Price Per Pack in Cents, page 6.

 

254

Malik

Discusses Other Tobacco Products.

 

270

Malik

Discusses Tax on Cigars, page 7.

 

277

Malik

Discusses 2003-04 Revenue, pie chart separating general fund, health plan, and compliance task force.

 

317

Sen. Metsger

Asks what impact change of cigar taxation in 1999 has made on collection of taxes. Comments concerning people buying cigars over Internet taking away state taxes.

 

336

Malik

Responds, evidence does not seem to suggest a drop in revenue numbers. However, most telling difference is in tobacco enforcement.

360

Paul Warner

Comments, with Measure 20 there was a jump in cigarette prices but not in other tobacco.

 

370

Sen. Metsger

Comments that one argument was that Internet purchases would take away Oregon business.

 

390

Malik

Comments on black markets.

 

404

Chair Deckert

Notes, there may be a bill on this issue.

 

429

Malik

Resumes slide presentation. Total Tobacco Revenue, page 8.

 

440

Malik

Discusses Master Settlement Agreement; 47 States; Cigarette Manufactures.

 

470

Malik

Discusses Estimated Payments, page 9.

 

TAPE 6, SIDE A

039

Malik

Continues discussion on Estimated Payments.

 

059

Malik

Discusses Payments, Millions of Dollars, page 9.

 

106

Malik

Discusses Alcoholic Beverages Ė history on taxes on beer and cider, wine, distilled spirits, page 10.

 

132

Malik

Discusses State Rates (Excise) as of 1/1/04, page 11.

 

154

Malik

Discusses 2003-04 Beer Tax, pie chart, page 12.

 

164

Malik

Continues discussion on Beer Tax Revenue, Millions of Dollars.

 

169

Chair Deckert

Asks for future comparisons of Oregon and top producer states.

 

198

Malik

Discusses Wine Tax Rates, page 13, distinguishes between alcohol rates in table wine and dessert wine.

 

208

Malik

Discusses State Wine Tax Rates, Dollars per Gallon, Oregonís position in relation to other states. Fields questions from audience.

 

234

Malik

Resumes discussion, State Wine & Sales Tax Rates, page 14.

 

247

Malik

Discusses Wine Tax Revenue (History), page 15, regarding consumption of table wine and dessert wine.

283

Malik

Resumes discussion, OLCC Liquor Markup, page 15.

 

298

Malik

Discusses OLCC Sales, page 16, compares gallons per capita from 1978-2003.

 

338

Malik

Explains 2003-04 OLCC Revenue pie chart.

 

357

Malik

Discusses Distribution Formula, page 17, including discussion of Privilege Tax and OLCC Net Revenue. Total tax distribution is $119.2 million distributed, as shown in pie chart.

 

396

Malik

Discusses OLCC Distributions (Historically) Millions of Dollars; 9-1-1- Emergency Access Tax. Page 18.

 

405

Malik

Discusses 9-1-1- Revenue, Millions of Dollars, page 19.

 

425

Chair Deckert

Comments, it would be worth looking into how the 9-1-1 fund has grown, and whether that money is available for other purposes. Requests breakdown of fund and who benefits. Follow-up questions.

 

436

Warner

Will work on obtaining this information.

 

 

 

TAPE 5, SIDE B

041

Malik

Resumes discussion on page 19, Fuel Taxes. Page 19.

 

060

Sen. Prozanski

Asks for clarification in regard to how the rebate process works for an individual who is using fuel for other than a motor vehicle or aircraft.

 

065

Malik

Responds, that is correct.

 

075

Malik

Resumes discussion on fuel taxes; includes gasoline and diesel fuel.

 

095

Malik

Directs membersí attention to Motor Vehicle Fuel Tax Rate, page 20. Compares cents per gallon, fuel and real dollars.

 

133

Malik

Discusses Fuel Tax Revenue in millions of dollars.

 

162

Malik

Begins discussion on Weight-Mile Taxes, page 21. These taxes are evaluated based on weight of a vehicle on pavement.

 

195

Sen. Prozanski

Comments, there are rigs now have higher weights than shown in the chart. Asks, do they have a special tax rate?

 

205

Malik

Replies, yes.

 

207

Malik

Continues discussion on Weight-Mile Tax Rates chart, adjustments for 2003 law changes.

 

218

Sen. Prozanski

Comments, some trucks have more wheels and are using wider tires. Has this situation ever been discussed?

224

Malik

Responds, the figures in the chart are based on engineering studies.

 

234

Malik

Discusses In Lieu Taxes, page 22. Flat Fees, Road Use Assessment Fee.

 

255

Malik

Discusses Weight-Mile Tax Revenue chart, millions of dollars.

 

265

Malik

Turns discussion to Transient Lodging Tax, page 23. Discusses HB 2267 of 2003 legislative session.

 

307

Malik

Continues discussion of Transient Lodging Tax, Revenue Estimates in millions.

 

325

Malik

Discusses Transient Lodging Tax, Average Rate 8.0%, page 24. Local Tax Receipts. Wraps up slide presentation.

 

348

Sen. Metsger

Summarizes, this is a profile of a typical Oregonian.

 

372

Chair Deckert

Asks questions concerning car rental relating to July 18 presentation. How does Oregonís car rental industry compare to its border states? Follow-up questions.

 

432

Malik

Responds, he will find these numbers and get back to the committee.

 

462

Chair Deckert

Adjourns meeting at 10:29 a.m.

 

 

Tape Log Submitted by,

 

 

 

Barbara Guardino, Committee Assistant†††††††††††††††††††††††††††††† Reviewed by Kim Taylor James

 

 

Exhibit Summary:

1.      Excise Taxes 2005 Orientation, Malik, 24 pp.