PUBLIC HEARING AND WORK SESSION

SB 268 AND 29

PUBLIC HEARING SB 267

 

TAPES 13-14, A

 

SENATE REVENUE COMMITTEE

JANUARY 26, 2005 †9:00 AM †STATE CAPITOL BUILDING

 

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

††††††††††††††††††††††††††††††††††††††††††††††† Senator Charles Starr, Vice Chair

††††††††††††††††††††††††††††††††††††††††††††††† Senator Gary George

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

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

Members Excused:†††††††††††††††† Senator Rick Metsger

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

Witnesses Present:††† ††††††††††† Henry Breithaupt, Judge, Oregon Tax Court

††††††††††††††††††††††††††††††††††††††††††††††† Jill Tanner, Presiding Magistrate, Oregon Tax Court

††††††††††††††††††††††††††††††††††††††††††††††† John Phillips, Oregon Department of Revenue

††††††††††††††††††††††††††††††††††††††††††††††† Sen. Ben Westlund, District 27

††††††††††††††††††††††††††††††††††††††††††††††† Neil R. Bryant, Attorney, Bend

 

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

††††††††††††††††††††††††††††††††††††††††††††††† Mary Ayala, Economist

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

 

 

TAPE 13, SIDE A

004

Chair Deckert

Calls meeting to order at 9:10 a.m. Opens public hearing on SB 268.

 

PUBLIC HEARING, SENATE BILL 268

016

Paul Warner

Introduces SB 268 from Joint Interim Committee on Judiciary. Bill eliminates tax court small claims procedure by repealing HB 305.514 (EXHIBIT 1).

 

032

Henry Breithaupt

Testifies in support of SB 268. See written testimony (EXHIBIT 2).

Explains reasons for eliminating Small Claims Division of the Tax Court. Gives history. Contends process is too complex.

 

089

Chair Deckert

Asks, what is the cap that qualifies a person for Small Claims Court?

 

092

Jill Tanner

Explains caps for property tax and income tax.

 

108

Breithaupt

Summarizes three-fold reasons: 1) Difference between $10 and $25 process can be confusing; and 2) Not many people use small claims process; and 3) Taxpayers who choose $10 option may not understand that there is no appeal process. Believes original reason behind small claims was an alternative to a full-blown judicial proceeding. Magistrate Division is performing that function remarkably well.

 

130

Chair Deckert

Asks what percent of those who take the $10 route are denied opportunity to appeal.

 

135

Breithaupt

Responds, fewer than 10% who go to the Magistrate Division end up

coming on to the regular division.

 

147

Tanner

Itís not too often that someone is unaware that they cannot appeal.

 

155

Breithaupt

Notes, revenue impact is very small.

 

164

Sen. Prozanski

Comments on small revenue impact.

 

175

Warner

Follows up on revenue and fiscal impacts (EXHIBITS 3-4).

 

189

Chair Deckert

Closes public hearing on SB 268.

 

WORK SESSION, SB 268

102

Sen. C. Starr

MOTION: MOVES SB 268 TO THE SENATE FLOOR WITH A DO PASS RECOMMENDATION. THERE BEING NO OBJECTION, CHAIR SO ORDERS.

 

 

VOTE: 3-0-2

MEMBERS VOTING AYE: PROZANSKI, VICE CHAIR C. STARR, CHAIR DECKERT

MEMBERS EXCUSED: GEORGE, METSGER

 

PUBLIC HEARING, SB 267

212

Mary Ayala

Introduces SB 267. Bill allows Oregon Tax Court to determine real market value of specially assessed property. Gives brief background.

 

225

Chair Deckert

Asks, what are specially assessed properties?

 

245

Breithaupt

Clarifies, SB 267 does not deal with just specially assessed values, but the determination of both real market value and specially assessed values. See written testimony (EXHIBIT 5). Farm use assessment is the best example.

 

349

Chair Deckert

Asks, what constitutes evidence?

 

353

Breithaupt

Gives example of what constitutes evidence in regard to a case involving a private residence. Responds to questions.

 

455

Breithaupt

Responds to question whether legislature put bracketed system into place.

 

 

 

TAPE 14, SIDE A

034

Tanner

Notes, by putting greater importance on pleadings, this is often nothing more than a place-saver. Court encourages settlement regardless of value.

 

046

Breithaupt

That is much less the case of the regular division. Would expect no effect by this legislation other than doing away with one round of motions.

 

070

Sen. Prozanski

Asks if there is an original bill to put into context.

 

074

Breithaupt

Will submit original bill to committee staff.

 

089

John Phillips

Testifies on behalf of Oregon Dept. of Revenue in favor of the bill.

 

099

Chair Deckert

Closes public hearing on SB 267.

 

PUBLIC HEARING, SB 29

103

Ayala

Gives overview of SB 29. Bill clarifies that a propertyís real market value, not assessed value, will be multiplied by the percent change ratio to determine that propertyís maximum assessed value. Refers to letter to Paul Warner dated Sept. 14, 2004 (EXHIBIT 8).

 

121

Chair Deckert

Questions whether this bill is needed at all.

 

127

Phillips

Notes, he can see where someone might need this clarification.

 

147

Sen. Ben Westlund

Speaks in favor of SB 29.

 

155

Chair Deckert

Asks for clarification on issue of real market versus assessed market.

 

173

Neil Bryant

Gives summary of what the correction does. It favors the taxpayer.

 

222

Sen. George

Appreciates that the bill that might benefit taxpayers.

 

237

Chair Deckert

Closes public hearing on SB 29. Opens work session on SB 29.

 

WORK SESSION SB 29

242

Sen. C. Starr

MOTION: MOVES SB 29 TO THE SENATE FLOOR WITH A DO PASS RECOMMENDATION. HEARING NO OBJECTIONS THE CHAIR SO ORDERS.

 

 

VOTE: 4-0-1

VOTING AYE: GEORGE, PROZANSKI, VICE CHAIR C. STARR, CHAIR DECKERT

MEMBERS EXCUSED: METSGER

 

246

Chair Deckert

Adjourns meeting at 9:55 a.m.

†††††††††††††††††††††††

 

Tape Log Submitted by,

 

 

 

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

 

Exhibit Summary:

1.      SB 268, Administration: Appeals 305.514, Warner, 1 pp.

2.      SB 268, Statement of Judge Henry C. Breithaupt on SB 268, Breithaupt, 2 pp.

3.      SB 268, Legislative Fiscal Office, Minimal Expenditure Impact Statement, Warner, 1 pp.

4.      SB 268, Staff Measure Summary, Warner, 1 pp.

5.      SB 267, Statement of Judge Henry C. Breithaupt on SB 267, Breithaupt, 2 pp.

6.      SB 267, Legislative Revenue Office Notice of No Revenue Impact, Ayala, 1 pp.

7.      SB 267, Staff Measure Summary, Ayala, 1 pp.

8.      SB 29, Sept. 14, 2004 letter to Paul Warner, Bryant, 1 pp.

9.      SB 29, Legislative Fiscal Office, No expenditure Impact Statement, Ayala, 1 pp.

10.  SB 29, Legislative Revenue Office Notice of No Revenue Impact, Ayala, 1 pp.

11.  SB 29, Preliminary Staff Measure Summary, Ayala, 1 pp.