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 2714
House Bill 3365
Sponsored by Representative JENSON
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.
Increases cigarette, malt beverage and wine taxes. Dedicates
revenue to special education funding. Provides that special
education funding provided by Act is in addition to and not in
lieu of State School Fund distributions for special education.
Applies to tax reporting periods beginning on or after January
1, 2002.
A BILL FOR AN ACT
Relating to taxation for special education funding; creating new
provisions; amending ORS 471.805, 473.050, 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 323.005 to 323.455. + }
SECTION 2. { + (1) Notwithstanding ORS 323.030 (2) and in
addition to and not in lieu of any other tax, every distributor
shall pay a tax upon distributions of cigarettes at the rate of
10 mills for the distribution of each cigarette in this state.
(2) Any cigarette with respect to which a tax has once been
imposed under ORS 323.005 to 323.455 and 323.990 may not be
subject upon a subsequent distribution to the taxes imposed by
ORS 323.005 to 323.455 and 323.990.
(3) The moneys received under this section shall be paid over
and credited to the General Fund and shall be dedicated to
funding special education, as defined in ORS 343.035.
(4) Moneys distributed pursuant to this section shall be in
addition to and not in lieu of any moneys distributed for special
education pursuant to ORS 327.008 and 327.013. + }
SECTION 3. { + Section 2 of this 2001 Act applies to cigarette
tax reporting periods beginning on or after January 1, 2002. + }
SECTION 4. { + Section 5 of this 2001 Act is added to and made
a part of ORS chapter 473. + }
SECTION 5. { + (1) In addition to the tax imposed by ORS
473.030 (1), a manufacturer or an importing distributor of malt
beverages shall be taxed at the rate of $5.20 per barrel of 31
gallons of malt beverage.
(2) In addition to the taxes imposed under ORS 473.030 (2) and
(4), a manufacturer or an importing distributor of wines
containing not more than 14 percent alcohol by volume shall be
taxed at the rate of $1.35 per gallon of wine.
(3) In addition to the taxes imposed under ORS 473.030 (2) to
(4), a manufacturer or an importing distributor of wines
containing more than 14 percent alcohol by volume and not more
than 21 percent alcohol by volume shall be taxed at the rate of
$1.55 per gallon of such wine. + }
SECTION 6. { + Section 5 of this 2001 Act applies to malt
beverage tax and wine tax reporting periods beginning on or after
January 1, 2002. + }
SECTION 7. ORS 471.805, as amended by section 64, chapter 351,
Oregon Laws 1999, is amended to read:
471.805. (1) Except as otherwise provided in ORS 471.810 (2),
all money collected by the Oregon Liquor Control Commission under
this chapter and ORS chapter 473 and privilege taxes shall be
remitted to the State Treasurer who shall credit it to a suspense
account of the commission. Whenever the commission determines
that moneys have been received by it in excess of the amount
legally due and payable to the commission or that it has received
money to which it has no legal interest, or that any license fee
or deposit is properly refundable, the commission is authorized
and directed to refund such money by check drawn upon the State
Treasurer and charged to the suspense account of the commission.
After withholding refundable license fees and such sum, not to
exceed $250,000, as it considers necessary as a revolving fund
for a working cash balance for the purpose of paying travel
expenses, advances, other miscellaneous bills and extraordinary
items which are payable in cash immediately upon presentation,
the commission shall direct the State Treasurer to { + :
(a)(A) Transfer the moneys in the suspense account derived from
the taxes imposed under section 5 of this 2001 Act to the General
Fund.
(B) Moneys transferred to the General Fund pursuant to this
paragraph are dedicated to funding special education, as defined
in ORS 343.035, and are in addition to and not in lieu of any
moneys distributed for special education pursuant to ORS 327.008
and 327.013.
(b) + } Transfer the money remaining in the suspense account to
the Oregon Liquor Control Commission Account in the General Fund.
(2) All necessary expenditures of the commission incurred in
carrying out the purposes and provisions required of the
commission by law, including the salaries of its employees,
purchases made by the commission and such sums necessary to
reimburse the $250,000 revolving fund, shall be audited and paid
from the Oregon Liquor Control Commission Account in the General
Fund, upon warrants drawn by the Oregon Department of
Administrative Services, pursuant to claims duly approved by the
commission.
(3) Money produced by the operation of this chapter and ORS
chapter 473 necessary to pay such expenditures is appropriated
from the Oregon Liquor Control Commission Account in the General
Fund for such purposes.
SECTION 8. 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 5 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 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 5 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 5 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 5 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.
----------