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 307
House Bill 2553
Sponsored by Representative BUTLER
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 that tax rates imposed on malt beverages and cider be
equivalent to tax rates imposed on motor vehicle fuel.
Distributes certain tax revenues to counties for alcohol and drug
abuse prevention, early intervention and treatment services,
tobacco cessation programs and other public and mental health
programs.
Applies to alcoholic beverage tax reporting periods beginning
on or after July 1, 2002.
A BILL FOR AN ACT
Relating to taxation of alcoholic beverages; creating new
provisions; amending ORS 471.810, 473.050, 473.060, 473.090,
473.100 and 473.170; and providing for revenue raising that
requires approval by a three-fifths majority.
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 chapter 473. + }
SECTION 2. { + (1) Notwithstanding ORS 473.030 or 473.035:
(a) If the rate of tax for the purpose of engaging in business
as a manufacturer or as an importing distributor of malt
beverages under ORS 473.030 (1), when imposed on each barrel of
31 gallons of malt beverage, is less than the combined license,
use and other state tax imposed on each gallon of motor vehicle
fuel in this state multiplied by 31, in addition to the tax
imposed by ORS 473.030 (1), a manufacturer or an importing
distributor of malt beverages shall be taxed at a rate per barrel
of 31 gallons of malt beverage equal to the difference between
the rate per barrel of 31 gallons under ORS 473.030 (1) and the
combined license, use and other state tax imposed on a gallon of
motor vehicle fuel multiplied by 31.
(b) If the rate of tax for the purpose of engaging in business
as a manufacturer or as an importing distributor of cider under
ORS 473.035 (1), when imposed on each barrel of 31 gallons of
cider, is less than the combined license, use and other state tax
imposed on each gallon of motor vehicle fuel in this state
multiplied by 31, in addition to the tax imposed by ORS 473.035
(1), a manufacturer or an importing distributor of cider shall be
taxed at a rate per barrel of 31 gallons of cider equal to the
difference between the rate per barrel of 31 gallons under ORS
473.035 (1) and the combined license, use and other state tax
imposed on a gallon of motor vehicle fuel multiplied by 31.
(2) The rates of tax imposed by this section upon malt
beverages and cider apply proportionately to quantities in
containers of less capacity than those quantities specified in
this section.
(3) The taxes imposed by this section shall be measured by the
volume of malt beverage or cider produced, purchased or received
by any manufacturer. If the malt beverage or cider remains unsold
and in the possession of the producer at the plant where it was
produced, no tax imposed or levied by this section is required to
be paid until the malt beverage or cider has become sufficiently
aged for marketing at retail, but this subsection may not be
construed so as to alter or affect any provision of this chapter
relating to tax liens or the filing of statements. + }
SECTION 3. { + Section 2 of this 2001 Act applies to malt
beverage and cider tax reporting periods beginning on or after
July 1, 2002. + }
SECTION 4. { + For purposes of section 2 of this 2001 Act, the
Department of Transportation shall notify the Oregon Liquor
Control Commission of any change in the license, use or other
state tax imposed on motor vehicle fuel in this state. + }
SECTION 5. ORS 471.810 is amended to read:
471.810. (1) At the end of each month, the Oregon Liquor
Control Commission shall certify the amount of money available
for distribution in the Oregon Liquor Control Commission Account,
and after withholding such money as it may deem necessary to pay
its outstanding obligations shall within 35 days of the month for
which a distribution is made direct the State Treasurer to pay
the amounts due, upon warrants drawn by the Oregon Department of
Administrative Services, as follows:
(a) Fifty-six percent, or the amount remaining after the
distribution under subsection (3) of this section, credited to
the General Fund available for general governmental purposes
wherein it shall be considered as revenue during the quarter
immediately preceding receipt;
(b) Twenty percent to the cities of { - the - }
{ + this + } state in such shares as the population of each city
bears to the { + total + } population of the cities of
{ - the - } { + this + } state, as determined by the State
Board of Higher Education last preceding such apportionment,
under ORS 190.510 to 190.610;
(c) Ten percent to { + the + } counties { + of this state + }
in such shares as { - their respective populations bear - }
{ + the population of each county bears + } to the total
population of the state, as estimated from time to time by the
State Board of Higher Education; and
(d) Fourteen percent to the cities of the state to be
distributed as provided in ORS 221.770 and this section.
(2) The commission shall direct the Oregon Department of
Administrative Services to transfer 50 percent of the revenues
from the taxes imposed by ORS 473.030, 473.035 and 473.040 to the
Mental Health Alcoholism and Drug Services Account in the General
Fund to be paid monthly as provided in ORS 430.380.
(3) Notwithstanding subsection (1) of this section, no city or
county shall receive for any fiscal year an amount less than the
amount distributed to the city or county in accordance with ORS
471.350 (1965 Replacement Part), 471.810, 473.190 and 473.210
(1965 Replacement Part) during the 1966-1967 fiscal year unless
the city or county had a decline in population as shown by its
census. If the population declined, the per capita distribution
to the city or county shall be not less than the total per capita
distribution during the 1966-1967 fiscal year. Any additional
funds required to maintain the level of distribution under this
subsection shall be paid from funds credited under subsection
(1)(a) of this section.
{ + (4) If a tax is imposed under section 2 of this 2001 Act,
the amount raised by the tax imposed under section 2 of this 2001
Act shall be paid by the State Treasurer, upon warrants drawn by
the Oregon Department of Administrative Services, to the counties
of this state in such shares as the population of each county
bears to the total population of this state. + }
SECTION 6. { + Malt beverage and cider tax revenues
distributed to counties under ORS 471.810 (4) are dedicated to
alcohol and drug abuse prevention and to early intervention and
treatment services, tobacco cessation programs and other public
and mental health programs administered by the counties. + }
SECTION 7. ORS 473.050 is amended to read:
473.050. In computing any privilege tax imposed by ORS 473.030,
473.035 or 473.040 { + or section 2 of this 2001 Act + }:
(1) No malt beverage, cider or wine is subject to tax more than
once.
(2) No tax shall be levied, collected or imposed upon any malt
beverage, cider or wine sold to the Oregon Liquor Control
Commission or exported from the state.
(3) No tax shall be levied, collected or imposed upon any malt
beverage given away and consumed on the licensed premises of a
brewery licensee, or sold to or by a voluntary nonincorporated
organization of army, air corps or navy personnel operating a
place for the sale of goods pursuant to regulations promulgated
by the proper authority of each such service.
(4) No tax shall be levied, collected or imposed upon any malt
beverage, cider or wine determined by the commission to be unfit
for human consumption or unsalable.
(5) No tax shall be levied, collected or imposed upon the first
40,000 gallons, or 151,000 liters, of wine sold annually in
Oregon from a United States manufacturer of wines producing less
than 100,000 gallons, or 379,000 liters, annually.
SECTION 8. ORS 473.060 is amended to read:
473.060. (1) The privilege taxes imposed by ORS 473.030,
473.035 and 473.040 { + and section 2 of this 2001 Act + } shall
be paid to the Oregon Liquor Control Commission. The taxes
covering the periods for which statements are required to be
rendered by ORS 473.070 shall be paid before the time for filing
such statements expires or, as concerns wines, on or before the
20th day of the month after such wines have been withdrawn from
federal bond. If not so paid, a penalty of 10 percent and
interest at the rate of one percent a month or fraction of a
month shall be added and collected. The commission may refund any
tax payment imposed upon or paid in error by any licensee, and
may waive the collection or refund the payment of any tax imposed
and collected on wine, cider or malt beverages subsequently
exported from this state, sold to a federal instrumentality or to
the commission, or determined by the commission to be unfit for
human consumption or unsalable.
(2) The commission may waive any interest or penalty assessed
to a manufacturer subject to the tax imposed under ORS 473.030,
473.035 or 473.040 { + or section 2 of this 2001 Act + } if the
commission, in its discretion, determines that the manufacturer
has made a good faith attempt to comply with the requirements of
this chapter.
(3) Except in the case of fraud, the commission may not assess
any interest or penalty on any tax due under ORS 473.030, 473.035
or 473.040 { + or section 2 of this 2001 Act + } following the
expiration of 36 months from the date on which was filed the
statement required under ORS 473.070 reporting the quantity of
wine, cider or malt beverages upon which the tax is due.
(4) A manufacturer may appeal a tax imposed under ORS 473.030,
473.035 or 473.040 { + or section 2 of this 2001 Act + } in the
manner of a contested case under ORS 183.310 to 183.550.
SECTION 9. ORS 473.090 is amended to read:
473.090. The privilege tax required to be paid by ORS 473.030,
473.035 and 473.040 { + and section 2 of this 2001 Act + }
constitutes a lien upon, and has the effect of an execution duly
levied against, any and all property of the manufacturer,
attaching at the time the beverages subject to the tax were
produced, purchased or received, as the case may be, and
remaining until the tax is paid or the property sold in payment
thereof. The lien created by this section is paramount to all
private liens or encumbrances.
SECTION 10. ORS 473.100 is amended to read:
473.100. (1) Whenever any manufacturer is delinquent in the
payment of the privilege tax provided for in ORS 473.030, 473.035
and 473.040 { + and section 2 of this 2001 Act + }, the Oregon
Liquor Control Commission or its duly authorized representative
shall seize any property subject to the tax and sell, at public
auction, property so seized, or a sufficient portion thereof to
pay the privilege tax due, together with any penalties imposed
under ORS 473.060 for such delinquency and all costs incurred on
account of the seizure and sale.
(2) Written notice of the intended sale and the time and place
thereof, shall be given to such delinquent manufacturer and to
all persons appearing of record to have an interest in the
property, at least 10 days before the date set for the sale. The
notice shall be enclosed in an envelope addressed to the
manufacturer at the last-known residence or place of business of
the manufacturer in this state, if any; and in the case of any
person appearing of record to have an interest in such property,
addressed to such person at the last-known place of residence of
the person, if any. The envelope shall be deposited in the United
States mail, postage prepaid. In addition, notice shall be
published for at least 10 days before the date set for such sale,
in a newspaper of general circulation published in the county in
which the property seized is to be sold. If there is no newspaper
of general circulation in such county, the notice shall be posted
in three public places in such county for the 10-day period. The
notice shall contain a description of the property to be sold, a
statement of the amount of the privilege taxes, penalties and
costs, the name of the manufacturer and the further statement
that, unless the privilege taxes, penalties and costs are paid on
or before the time fixed in the notice for the sale, the
property, or so much thereof as may be necessary, will be sold in
accordance with law and the notice.
SECTION 11. ORS 473.170 is amended to read:
473.170. (1) No manufacturer shall:
(a) Fail to pay the privilege tax prescribed in ORS 473.030,
473.035 and 473.040 { + and section 2 of this 2001 Act + } when
it is due; or
(b) Falsify the statement required by ORS 473.070.
(2) No person shall:
(a) Refuse to permit the Oregon Liquor Control Commission or
any of its representatives to make an inspection of the books and
records authorized by ORS 473.140 to 473.160;
(b) Fail to keep books of account prescribed by the commission
or required by this chapter;
(c) Fail to preserve the books for two years for inspection of
the commission; or
(d) Alter, cancel or obliterate entries in the books of account
for the purpose of falsifying any record required by this chapter
to be made, maintained or preserved.
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