71st OREGON LEGISLATIVE ASSEMBLY--2001 Regular Session
 
NOTE:  Matter within  { +  braces and plus signs + } in an
amended section is new. Matter within  { -  braces and minus
signs - } is existing law to be omitted. New sections are within
 { +  braces and plus signs + } .
 
LC 1909
 
                         House Bill 2279
 
Ordered printed by the Speaker pursuant to House Rule 12.00A (5).
  Presession filed (at the request of Representative Bill Witt)
 
 
                             SUMMARY
 
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.
 
  Requires local government taxes imposed on or measured by
income to be imposed on or measured by taxable income as
determined for state personal income tax purposes or Oregon
taxable income as determined for state corporate excise or income
tax purposes.
  Applies to tax reporting periods beginning on or after January
1, 2002.
 
                        A BILL FOR AN ACT
Relating to taxation; creating new provisions; and amending ORS
  305.620.
Be It Enacted by the People of the State of Oregon:
  SECTION 1.  { + Section 2 of this 2001 Act is added to and made
a part of ORS 305.620 to 305.640. + }
  SECTION 2.  { + (1) A political subdivision of this state that
imposes a tax on or measured by income shall impose the tax on or
measured by taxable income as determined under ORS chapter 316
or, in the case of a corporation or entity taxable as a
corporation, on Oregon taxable income as determined under ORS
chapter 317 or 318, as allocated or apportioned to the political
subdivision in the manner required for allocation and
apportionment of income under ORS 314.280, 314.295 and 314.605 to
314.675.
  (2) For purposes of ORS 314.280 and 314.605 to 314.675, unless
the context requires otherwise, 'political subdivision ' shall be
substituted for 'state' in determining allocation and
apportionment under this section.
  (3) For purposes of this section, a political subdivision that
imposes a license fee on or measured by taxable income, adjusted
net income or other measure of income shall be considered to be
imposing a tax on or measured by income.
  (4) Nothing in this section requires a political subdivision to
expand the scope of the political subdivision's tax on or
measured by income to persons not currently subject to the
tax. + }
  SECTION 3. ORS 305.620 is amended to read:
  305.620. (1) Any state agency or department may enter into
agreements with any political subdivision of this state for the
collection, enforcement, administration and distribution of local
taxes of the political subdivision imposed upon or measured by
  { - gross or net - }  { +  taxable or Oregon taxable + }
income, wages or net earnings from self-employment or local
general sales and use taxes.
  (2) The department or agency shall prescribe the rules by which
the agreements entered into under subsection (1) of this section
are administered.
  (3) The department or agency shall prescribe the rules by which
the taxes described by subsection (1) of this section are
administered, collected, enforced and distributed.
  (4) A political subdivision may appear as an intervenor at any
conference held by the Department of Revenue or conference,
hearing or proceeding held by another department or agency in
connection with a local tax administered by the department or
agency. The political subdivision may be represented by its own
counsel. The department or agency shall adopt rules governing the
procedures to be followed by the political subdivision in making
an appearance.
  (5) Costs incurred by the department or agency in the
administration, enforcement, collection and distribution of taxes
under the agreements entered into under subsection (1) of this
section shall be first deducted from the taxes collected before
distribution is made to the political subdivision which is a
party to the agreement.
  (6) The Oregon Tax Court shall have exclusive jurisdiction to
review determinations of the Department of Revenue or orders of
another department or agency relating to the collection,
enforcement, administration and distribution of local taxes under
agreements entered into under subsection (1) of this section.
  (7) A proceeding for refund or to set aside additional taxes or
taxes assessed when no return was filed may be initiated before
the state agency or department or as provided in ORS 305.514
(1)(g).
  (8) An appeal from a determination or an order may be taken by
the taxpayer or by the political subdivision whose taxes are in
issue, by filing an original and two certified copies of a
complaint with the clerk of the Oregon Tax Court at its principal
office at the state capital, Salem, Oregon, within 60 days after
the notice of the determination of the Department of Revenue or
the order of the department or agency is sent to the taxpayer or
the political subdivision. The filing of the complaint in the
Oregon Tax Court shall constitute perfection of the appeal.
Service of the taxpayer's complaint shall be accomplished by the
clerk of the tax court by filing a certified copy of the
complaint with the administrative head of the department or
agency and a certified copy with the political subdivision.
Service of the political subdivision's complaint shall be
accomplished by the clerk of the tax court by filing a certified
copy of the complaint with the administrative head of the
department or agency and mailing a certified copy of the
complaint to the taxpayer. The complaint of a taxpayer shall be
entitled in the name of the person filing as plaintiff and the
department or agency as defendant. The complaint of a political
subdivision shall be entitled in the name of the political
subdivision as plaintiff and the taxpayer and the department or
agency as defendants. A copy of the order of the department or
agency shall be attached to the original complaint. All
procedures shall be in accordance with ORS 305.405 to 305.494.
  SECTION 4.  { + Section 2 of this 2001 Act and the amendments
to ORS 305.620 by section 3 of this 2001 Act apply to tax
reporting periods beginning on or after January 1, 2002. + }
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