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 2494
 
                           B-Engrossed
 
                         House Bill 3871
                   Ordered by the House May 30
       Including House Amendments dated May 14 and May 30
 
Sponsored by Representatives STARR, RINGO; Representatives BECK,
  DEVLIN, DINGFELDER, HASS, KROPF, MERKLEY, NELSON, ROSENBAUM,
  WIRTH, ZAUNER, Senator CASTILLO
 
 
                             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.
 
  Allows credit against corporate excise or income tax for
corporation that provides motor vehicle insurance issued under
mile-based or time-based rating plan.
  Applies to tax years beginning on or after January 1, 2002, and
before January 1, 2007. Limits total amount of   { - credit
allowed - }   { + credits that may be claimed + } for all
taxpayers for all tax years to $1 million.
  Takes effect on 91st day following adjournment sine die.
 
                        A BILL FOR AN ACT
Relating to tax credits for motor vehicle insurers; and
  prescribing an effective date.
Be It Enacted by the People of the State of Oregon:
  SECTION 1.  { + Sections 2 and 3 of this 2001 Act are added to
and made a part of ORS chapter 317. + }
  SECTION 2.  { + (1) As used in this section:
  (a) 'Mile-based rating plan' means a rating plan for which a
unit of exposure is one mile traveled by the insured motor
vehicle.
  (b) 'Time-based rating plan' means a rating plan for which a
unit of exposure is one minute or one hour traveled by the
insured motor vehicle.
  (c) 'Unit of exposure' means a unit that measures the loss
exposure assumed by an insurer, the total of such units of which
is multiplied by the policy rate, or rates, to produce the policy
premium.
  (2) A corporation shall be allowed a credit against the taxes
that are otherwise due under this chapter or ORS chapter 318 for
providing motor vehicle insurance policies in this state that are
at least 70 percent based on a mile-based rating plan or a
time-based rating plan.
  (3) The amount of the credit shall equal $100 for each vehicle
insured under a policy described in subsection (2) of this
section.
  (4) The credit may not exceed $300 for each policy described in
subsection (2) of this section that is issued by the taxpayer.
  (5) The total amount of credit allowed under this section in a
tax year may not exceed the tax liability of the taxpayer and may
not be carried forward to another tax year.
  (6) In order for credit to be claimed for a policy under this
section, the taxpayer must obtain a verified statement from the
policyholder stating that the policy for which a credit is
claimed covers all vehicles used at the household of the
policyholder and owned, leased or regularly operated by the
policyholder or by an individual who is legally related to the
policyholder or who otherwise regularly shares vehicles with the
policyholder.
  (7) The credit may not be claimed with respect to a policy for
which a credit was allowed in a previous tax year. + }
  SECTION 3.  { + Notwithstanding section 2 of this 2001 Act, if
a credit claimed under section 2 of this 2001 Act, when added to
all previous credits claimed under section 2 of this 2001 Act by
all taxpayers for all tax years, exceeds $1 million, the credit
shall be disallowed. + }
  SECTION 4.  { + Sections 2 and 3 of this 2001 Act apply to tax
years beginning on or after January 1, 2002, and before January
1, 2007. + }
  SECTION 5.  { + This 2001 Act takes effect on the 91st day
after the date on which the regular session of the Seventy-first
Legislative Assembly adjourns sine die. + }
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