PUBLIC HEARING & WORK SESSION,

SB 269, SB 270

PUBLIC HEARING, SB 267

 

TAPES 26-27 A

 

SENATE REVENUE COMMITTEE

FEBRUARY 7, 2005 8:30 AM STATE CAPITOL BUILDING

 

Members Present:                  Senator Ryan Deckert, Chair

                                                Senator Charles Starr, Vice Chair

                                                Senator Gary George

                                                Senator Rick Metsger

                                                Senator Floyd Prozanski

                                                                       

Witnesses Present:                Judge Henry C. Breithaupt, Oregon Tax Court

                                                Judge Jill Tanner, Presiding Magistrate         

                                                Ginny Lang, Qwest

                                                John Phillips, Oregon Department of Revenue

 

Staff Present:                          Paul Warner, Legislative Revenue Officer

                                                Mary Ayala, Economist

                                                Barbara Guardino, Committee Assistant

 

 

TAPE 26, SIDE A

006

Chair Deckert

Calls meeting to order at 8:34 a.m.

 

PUBLIC HEARING, SB 270

023

Paul Warner

Staff Measure Summary (EXHIBIT 1). Grants Tax Court authority to establish rules for selecting person to represent taxpayers before a Tax Court magistrate.

 

029

Henry Breithaupt

Testifies in favor of SB 270. See written testimony, Statement of Judge Henry C. Breithaupt (EXHIBIT 2). Magistrate Division, created 7 years ago, permits a wide group of people to represent taxpayers. In some instances there is too much flexibility. This creates problems. Proposal broadens representation without requiring additional costs.

 

083

Vice Chair C. Starr

Asks for questions or discussion on bill. Hearing, none, closes public hearing, opens work session.

 

WORK SESSION, SB 270

096

Sen. Metsger

MOTION: MOVES SB 270 TO THE SENATE FLOOR WITH A DO PASS RECOMMENDATION.

 

100

Vice Chair C. Starr

ASKS FOR ANY OBJECTIONS TO MOTION. THERE BEING NO OBJECTIONS THE CHAIR SO ORDERS.

VOTE: 4-0-1

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

MEMBERS EXCUSED: GEORGE

 

 

 

PUBLIC HEARING, SB 269

112

Warner

Staff Measure Summary (EXHIBIT 3). Eliminates statutory requirement for taxpayers appealing to the Tax Court to file certified copy of complaints and petitions.

 

111

Breithaupt

Testifies in favor of SB 269. See written testimony (EXHIBIT 4). Housekeeping bill is designed to have statutes conform to what most often occurs. Individuals who testify before Magistrate Division are confused as to whether they need a certified copy of their complaint.

 

158

Sen. Prozanski

Expresses support for the measure.

 

162

Vice Chair C. Starr

Closes public hearing, opens work session.

 

WORK SESSION, SB 269

164

Sen. Metsger

MOTION: MOVES SB 269 TO THE SENATE FLOOR WITH A DO PASS RECOMMENDATION.

 

168

Vice Chair C. Starr

ASKS FOR ANY OBJECTIONS TO MOTION. THERE BEING NO OBJECTIONS THE CHAIR SO ORDERS.

VOTE: 5-0-0

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

 

PUBLIC HEARING, SB 267

174

Mary Ayala

Staff Measure Summary (EXHIBIT 5). Allows Tax Court to determine real market value or correct valuation of property that is subject to special assessment based on evidence before the court.

 

185

Breithaupt

Testifies in support of SB 267. See written testimony (EXHIBIT 6) with attachments. This bill returns the court to its position prior to 1995.

 

209

Chair Deckert

Asks Breithaupt to refresh committee on the questions members had when bill last came up.

 

217

Breithaupt

Responds, discussion was what occurs in the courtroom. As a trial proceeds, appraisers might submit evidence that is different from evidence submitted by taxpayer. Question: is the court limited or can it find a different value? Believes an oversight allowed for this statute to be repealed, and wants to correct it.

 

280

Jill Tanner

Comments, there is a provision in the income tax side of the code that allows the court to determine the correct assessment. This reinforces idea that this was an oversight and should be removed.

 

298

Ginny Lang

Testifies in support of an amendment to SB 267. See written testimony (EXHIBIT 7). See Proposed Amendment to Senate Bill 267 (EXHIBIT 8).

 

345

Sen. Metsger

Asks, why should record be capped?

 

368

Lang

Responds.

 

391

Chair Deckert

Asks for clarification to what the amendment would do.

 

405

Lang

Responds, issue is whether the party filing for an appeal should be overridden by the court based solely on evidence. Qwest would be glad to have a conversation with the Department of Revenue on this amendment. Qwest just went through a situation concerning this issue.

 

426

Sen. Prozanski

Wonders why the committee should accept this amendment.

 

TAPE 27, SIDE A

035

John Phillips

Sees Qwest’s point, but does not understand the purpose of the amendment. Passage would not harm the Department of Revenue, but it would only allow efficiency to work in one direction. Goal is for property to be valued at 100% of its real market value.

 

055

Breithaupt

Observes, the way the bill is drafted, he as a judge would not have the ability to grant that motion. Suggests alternate wording.

 

081

Phillips

Concurs, that would be a problem for DOR.

 

085

Sen. Prozanski

Observes, this would be an extra step. Judge should have authority without going through extra step.

 

110

Breithaupt

Agrees, this is a one-way amendment.

 

130

Vice Chair C. Starr

Comments, this amendment would restrict the process beyond what presently exists.

 

143

Breithaupt

Agrees with vice chair’s comments.

 

154

Vice Chair C. Starr

Asks for committee’s input on whether to move ahead with SB 267.

 

160

Chair Deckert

Recommends holding bill to revisit later.

 

175

Vice Chair C. Starr

Closes public hearing on SB 267.

 

179

Chair Deckert

Reviews activities planned for the remaining of the week.

 

209

Vice Chair C. Starr

Adjourns meeting at 9:45 a.m.

           

 

Tape Log Submitted by,

 

 

 

Barbara Guardino, Committee Assistant                              

 

Exhibit Summary:

1.      SB 270, Staff Measure Summary, Warner, 1 pp.

2.      SB 270, Statement of Judge Henry C. Breithaupt before the Senate Revenue Committee, Breithaupt, 1 pp.

3.      SB 269, Staff Measure Summary, Warner, 1 pp.

4.      SB 269, Statement of Judge Henry C. Breithaupt before the Senate Revenue Committee, Breithaupt, 1 pp.

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

6.      SB 267, Additional Information Requested by Senate Judiciary Committee on January 26, 2005, Breithaupt, 20 pp.

7.      SB 267, Statement of Qwest Corporation in Support of Amendment to Senate Bill 267, Lang, 2 pp.

8.      SB 267, Proposed Amendment to Senate Bill 267, Lang, 1 pp.