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 4191
 
                           A-Engrossed
 
                         House Bill 3961
                   Ordered by the House May 10
             Including House Amendments dated May 10
 
Sponsored by Representatives DOYLE, SIMMONS; Representatives
  KROPF, LEE, WESTLUND, Senators HANNON, MESSERLE (at the request
  of Oregon Winegrowers Association)
 
 
                             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.
 
  Establishes wine privilege tax credit for manufacturer of wine
for cost of qualified marketing activity that promotes
  { - Oregon or Oregon - }   { + the sale of wine or wine + }
products.
 
                        A BILL FOR AN ACT
Relating to taxation.
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) As used in this section, 'qualified
marketing activity' means marketing activity that promotes the
sale of wine or wine products and that is approved by the Wine
Advisory Board.  The Wine Advisory Board shall further define by
rule the marketing activities that constitute qualified marketing
activity.
  (2) A credit against the privilege tax otherwise due under ORS
473.030 (2) is allowed to a manufacturer of wine for the
manufacturer's qualified marketing activity expenditures made in
the calendar year prior to the year for which the credit is
claimed.
  (3) The credit allowed under this section shall be the sum of
the following:
  (a) One hundred percent of the cost of qualified marketing
activity to the extent that the cost of the activity does not
exceed the amount of taxes the manufacturer of wine owed under
ORS 473.030 (2) on the first 40,000 gallons, or 151,000 liters,
of wine sold annually in Oregon; and
  (b) Twenty-five percent of the tax owed under ORS 473.030 (2)
for qualified marketing activity on wine sales above 40,000
gallons, or 151,000 liters, of wine sold annually in Oregon.
  (4) The credit allowed under this section may not exceed the
tax liability of the manufacturer of wine under ORS 473.030 (2)
for the calendar year following the year in which qualified
marketing activity occurred.
 
  (5) A manufacturer of wine that wishes to claim the credit
allowed under this section shall submit with the manufacturer's
tax return form a certificate issued by the Wine Advisory Board
verifying that the marketing activity was a qualified marketing
activity. The credit shall be claimed on the form and include the
information required by the Oregon Liquor Control Commission by
rule.
  (6) The credit shall be claimed against the taxes reported on
the return filed under ORS 473.060 for each month in the calendar
year following the year in which the qualified marketing activity
occurred, until the credit is completely used or the year ends,
whichever occurs first. + }
  SECTION 3.  { + Section 2 of this 2001 Act applies to qualified
marketing activity occurring on or after January 1, 2002. + }
                         ----------