71st OREGON LEGISLATIVE ASSEMBLY--2001 Regular Session
 
SA to RC to A-Eng. HB 3171
 
LC 3720/HB 3171-A3
 
            SENATE AMENDMENTS TO RESOLVE CONFLICTS TO
                   A-ENGROSSED HOUSE BILL 3171
 
             By COMMITTEE ON RULES AND REDISTRICTING
 
                             May 31
 
  On page 22 of the printed A-engrossed bill, after line 29,
insert:
  '  { +  SECTION 13a. + }  { + If House Bill 3172 becomes law,
section 13 of this 2001 Act (amending ORS 315.164) is repealed
and ORS 315.164, as amended by section 2, chapter ___, Oregon
Laws 2001 (Enrolled House Bill 3172), is amended to read: + }
  ' 315.164. (1) As used in this section:
  ' (a) 'Condition of habitability' means a condition that is in
compliance with:
  ' (A) The applicable provisions of the state building code
under ORS chapter 455 and the rules adopted thereunder; or
  ' (B) If determined on or before December 31, 1995, sections 12
and 13, chapter 964, Oregon Laws 1989.
  ' (b) 'Eligible costs' includes finance costs, construction
costs, excavation costs, installation costs and permit costs and
excludes land costs.
  '  { +  (c) 'Farmworker' means any person who, for an agreed
remuneration or rate of pay, performs temporary or permanent
labor for another in the production of farm products or in the
planting, cultivating or harvesting of seasonal agricultural
crops or in the forestation or reforestation of lands, including
but not limited to the planting, transplanting, tubing,
precommercial thinning and thinning of trees and seedlings, the
clearing, piling and disposal of brush and slash and other
related activities.
  ' (d) 'Farmworker housing' means housing:
  ' (A) Limited to occupancy by farmworkers and their immediate
families; and
  ' (B) No dwelling unit of which is occupied by a relative of
the owner or operator of the farmworker housing.
  ' (e) 'Farmworker housing project' means construction,
installation or rehabilitation of farmworker housing. + }
  '  { - (c) - }  { +  (f) + } 'Rehabilitation' means to make
repairs or improvements to a building that improve its livability
and are consistent with applicable building codes.
  '  { - (d) - }  { +  (g) + } 'Relative' means a brother or
sister (whether by the whole or by half blood), spouse, ancestor
(whether by law or by blood), or lineal descendant of an
individual.
  '  { - (e) 'Seasonal farmworker' means any person who, for an
agreed remuneration or rate of pay, performs temporary labor for
another in the production of farm products or in the planting,
cultivating or harvesting of seasonal agricultural crops or in
the forestation or reforestation of lands, including but not
limited to the planting, transplanting, tubing, precommercial
thinning and thinning of trees and seedlings, the clearing,
piling and disposal of brush and slash and other related
activities. - }
 
 
  '  { - (f) 'Seasonal farmworker housing' means housing limited
to occupancy by seasonal farmworkers and their immediate families
that is occupied no more than nine months of the year. - }
  '  { - (g) 'Seasonal farmworker housing project' means
construction, installation or rehabilitation of seasonal
farmworker housing. - }
  '  { - (h) 'Year-round farmworker housing' means housing: - }
  '  { - (A) Limited to occupancy by farmworkers and their
immediate families; - }
  '  { - (B) No dwelling unit of which is occupied by a relative
of the owner or operator of the farmworker housing; and - }
  '  { - (C) Consisting, if located in an exclusive farm use
zone, of housing that is in compliance with any applicable local
zoning ordinance and that is: - }
  '  { - (i) A manufactured dwelling, as that term is defined in
ORS 446.003; or - }
  '  { - (ii) Any other dwelling unit, if the project for which
credit under this section is being claimed consists of the
rehabilitation of existing farmworker housing. - }
  '  { - (i) 'Year-round farmworker housing project' means
construction, installation or rehabilitation of farmworker
housing. - }
  ' (2) A resident individual is allowed a credit against the
taxes otherwise due under ORS chapter 316 or, if the taxpayer is
a corporation, the credit shall be allowed against taxes
otherwise due under ORS chapter 317. The amount of the credit
shall be equal to 30 percent of the eligible costs actually paid
or incurred to complete a   { - seasonal or year-round - }
farmworker housing project, to the extent the eligible costs
actually paid or incurred do not exceed the estimate of eligible
costs approved by the Housing and Community Services Department
under ORS 315.167.
  ' (3) The credit allowed under subsection (2) of this section
shall be taken in five equal installments over a period of five
consecutive tax years beginning in the tax year of the taxpayer
during which the project is completed.
  ' (4) The credit shall apply only to a   { - seasonal or a
year-round - }  farmworker housing project that is located within
this state and physically begun on or after January 1, 1990.
  ' (5)(a) A credit is not allowed under this section unless the
taxpayer claiming credit under this section:
  ' (A) Obtains a letter of credit approval from the Housing and
Community Services Department pursuant to ORS 315.167; and
  ' (B) Files with the Department of Revenue an annual
certification providing that all occupied units for which credit
is being claimed are occupied by   { - seasonal or year-round - }
farmworkers and their immediate families.
  ' (b) The certification described under this subsection shall
be made on the form and in the time and manner prescribed by the
Department of Revenue.
  ' (6) Except as provided under subsection (7) of this section,
the credit allowed in any one year may not exceed the tax
liability of the taxpayer.
  ' (7) Any tax credit otherwise allowable under this section
that is not used by the taxpayer in a particular tax year may be
carried forward and offset against the taxpayer's tax liability
for the next succeeding tax year. Any credit remaining unused in
such next succeeding tax year may be carried forward and used in
the second succeeding tax year, and likewise any credit not used
in that second succeeding tax year may be carried forward and
used in the third succeeding tax year, and any credit not used in
that third succeeding tax year may be carried forward and used in
the fourth succeeding tax year, and any credit not used in that
fourth succeeding tax year may be carried forward and used in the
fifth succeeding tax year, but may not be carried forward for any
tax year thereafter.
  ' (8)(a) The credit provided by this section is not in lieu of
any depreciation or amortization deduction for the project to
which the taxpayer otherwise may be entitled under ORS chapter
316 or 317 for such year.
  ' (b) The taxpayer's adjusted basis for determining gain or
loss   { - shall - }  { +  may + } not be further decreased by
any tax credits allowed under this section.
  ' (9)(a) If the taxpayer is a person who is not, and will not
be, the owner or operator of the   { - seasonal or year-round - }
farmworker housing, the taxpayer is entitled to the credit
allowed under this section only if, upon completion of the
 { - seasonal or year-round - }  farmworker housing project and
first occupation by farmworkers, the housing complies with all
safety or health laws, rules, regulations and standards
applicable for farmworker housing.
  ' (b) If the taxpayer is a person who is, or will be, the owner
or operator of the   { - seasonal or year-round - }  farmworker
housing at any time during the period for which the credit is
claimed, the housing must:
  ' (A) Comply with all occupational safety or health laws,
rules, regulations and standards;
  ' (B) If registration is required, be registered as a
farmworker camp with the Department of Consumer and Business
Services under ORS 658.750; and
  ' (C) Upon occupancy and if an indorsement is required, be
operated by a person who holds a valid indorsement as a
farmworker camp operator under ORS 658.730.
  ' (c) For purposes of this section, 'owner' does not include a
person whose only interest in the housing is as holder of a
security interest.
  ' (10)(a) Pursuant to the procedures for a contested case under
ORS 183.310 to 183.550, the Department of Revenue may order the
disallowance of the credit allowed under this section if it
finds, by order, that:
  ' (A) The credit was obtained by fraud or misrepresentation; or
  ' (B) In the event that an owner or operator claims or claimed
the credit:
  ' (i) The taxpayer has failed substantially to comply with the
occupational safety or health laws, rules, regulations or
standards;
  ' (ii) After occupancy and if registration is required, the
  { - seasonal or year-round - }  farmworker housing is not
registered as a farmworker camp with the Department of Consumer
and Business Services under ORS 658.750; or
  ' (iii) After occupancy and if an indorsement is required, the
 { - seasonal or year-round - }  farmworker housing is not
operated by a person who holds a valid indorsement as a
farmworker camp operator under ORS 658.730.
  ' (b) If the tax credit is disallowed pursuant to this
subsection, notwithstanding ORS 314.410 or other law, all prior
tax relief provided to the taxpayer shall be forfeited and the
Department of Revenue shall proceed to collect those taxes not
paid by the taxpayer as a result of the prior granting of the
credit.
  ' (c) If the tax credit is disallowed pursuant to this
subsection, the taxpayer shall be denied any further credit
provided under this section, in connection with the
 { - seasonal or year-round - }  farmworker housing project, as
the case may be, from and after the date that the order of
disallowance becomes final.
  ' (11) In the event that the farmworker housing is destroyed by
fire, flood, natural disaster or act of God before all of the
credit has been used, the taxpayer may nevertheless claim the
credit as if no destruction had taken place. In the event of
fire, if the fire chief of the fire protection district or unit
determines that the fire was caused by arson, as defined in ORS
164.315 and 164.325, by the taxpayer or by another at the
taxpayer's direction, then the fire chief shall notify the
Department of Revenue. Upon conviction of arson, the Department
of Revenue shall disallow the credit in accordance with
subsection (10) of this section.
  ' (12)(a) A nonresident individual shall be allowed the credit
computed in the same manner and subject to the same limitations
as the credit allowed a resident by this section.  However, the
credit shall be prorated using the proportion provided in ORS
316.117.
  ' (b) If a change in the taxable year of a taxpayer occurs as
described in ORS 314.085, or if the Department of Revenue
terminates the taxpayer's taxable year under ORS 314.440, the
credit allowed by this section shall be prorated or computed in a
manner consistent with ORS 314.085.
  ' (c) If a change in the status of a taxpayer from resident to
nonresident or from nonresident to resident occurs, the credit
allowed by this section shall be determined in a manner
consistent with ORS 316.117.
  ' (13) The Department of Revenue may adopt rules for carrying
out the provisions of this section.'.
                         ----------