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 3391
 
                           A-Engrossed
 
                         House Bill 3942
                   Ordered by the House May 4
             Including House Amendments dated May 4
 
Sponsored by Representative SHETTERLY; Representatives BATES,
  BECK, BROWN, CARLSON, HASS, KAFOURY, LEE, WILLIAMS, WITT,
  Senator L BEYER
 
 
                             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.
 
    { - Reduces personal income tax rates. Establishes reduced
tax rate on capital gains. Increases personal exemption credit.
Makes earned income credit refundable. Eliminates corporate
excise and income taxes. - }
    { - Establishes business activity tax. Computes tax base so
as to approximate gross receipts from business activity in Oregon
less purchases. - }
    { - Applies income tax changes and business activity tax to
tax years beginning on or after January 1, 2002. - }
   { +  Creates State Tax Reform Task Force.
  Declares emergency, effective on passage. + }
 
                        A BILL FOR AN ACT
Relating to finance; appropriating money; and declaring an
  emergency.
Be It Enacted by the People of the State of Oregon:
  SECTION 1.  { + (1) There is created the State Tax Reform Task
Force. The task force shall study state tax reform and develop
recommendations for tax reform proposals that are consistent with
the following goals:
  (a) Revenue neutrality;
  (b) Reducing state reliance on the personal income tax; and
  (c) Increasing the stability of the revenue and tax systems of
this state.
  (2) The task force shall be comprised of not more than 15
members, appointed by the Speaker of the House of Representatives
and the President of the Senate, of which no more than four may
be members of the Legislative Assembly. The Speaker and the
President shall strive to include on the task force
representatives of personal income taxpayers, small businesses,
large corporations, regulated industries, export businesses,
organized labor and the Department of Revenue.
  (3) In studying state tax reform the task force shall consider
a business activity tax and other new revenue sources.
 
 
  (4)(a) The task force shall report on an ongoing and periodic
basis to the interim committees of the Seventy-first Legislative
Assembly having jurisdiction over revenue matters.
  (b) The task force shall prepare a final written report of the
findings and recommendations of the task force and shall present
the report to the committees of the Seventy-second Legislative
Assembly having jurisdiction over revenue matters.
  (5) The Legislative Revenue Officer shall provide the staff and
administrative support necessary for the performance of the
functions of the task force.
  (6) Members of the Legislative Assembly serving on the task
force shall be entitled to an allowance as authorized by ORS
171.072. Other members of the task force are entitled to
compensation and expenses under ORS 292.495. Claims for expenses
incurred in performing the functions of the task force shall be
paid out of funds appropriated for that purpose.
  (7) All agencies, departments and officers of the state are
directed to assist the task force created under this section in
the performance of its functions and to furnish such information
and advice as the members of the task force consider necessary to
perform their functions.
  (8) The task force created under this section may accept
contributions of funds and assistance from any source, public or
private. All such funds are to aid in financing the functions of
the task force and shall be deposited in the General Fund to the
credit of separate accounts for the task force and shall be
disbursed for the purpose for which contributed in the same
manner as funds appropriated for the task force.
  (9) Official action by the task force created under this
section shall require the approval of a majority of the members
of the task force. All legislation recommended by official action
of the task force must indicate that it is introduced at the
request of the task force. Such legislation shall be prepared in
time for presession filing pursuant to ORS 171.130, for
presentation to the regular session of the Seventy-second
Legislative Assembly. + }
  SECTION 2.  { + In addition to and not in lieu of any other
appropriation, there is appropriated to the Legislative Revenue
Officer, for the biennium beginning July 1, 2001, out of the
General Fund, the amount of $___ for the purpose of the expenses
of the State Tax Reform Task Force created under section 1 of
this 2001 Act. + }
  SECTION 3.  { + This 2001 Act being necessary for the immediate
preservation of the public peace, health and safety, an emergency
is declared to exist, and this 2001 Act takes effect on its
passage. + }
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