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
B-Engrossed
House Bill 3961
Ordered by the House July 4
Including House Amendments dated May 10 and July 4
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 { + or
importing distributor + } of wine for cost of qualified marketing
activity that promotes the sale of wine or wine products.
{ + Requires Oregon Liquor Control Commission to direct
Oregon Department of Administrative Services to pay specified
amounts from General Fund to cities, counties and Mental Health
Alcoholism and Drug Services Account in General Fund if
commission determines that revenues from tax on wine and malt
liquor have been reduced as result of credit permitted by
Act. + }
A BILL FOR AN ACT
Relating to taxation; creating new provisions; and amending ORS
471.810.
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:
(a) That promotes the sale of wine or wine products;
(b) That does not promote specific brands of wine or wine
products or exclusively promote the products of any particular
winery; and
(c) That has been approved by the Wine Advisory Board.
(2) A credit against the privilege tax otherwise due under ORS
473.030 (2) is allowed to a manufacturer or importing distributor
of wine for the qualified marketing activity expenditures made by
the manufacturer or importing distributor in the calendar year
prior to the year for which the credit is claimed.
(3) The credit allowed under this section shall be 28 percent
of 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 or importing
distributor 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 or importing distributor of
wine under ORS 473.030 (2) for the calendar year following the
year in which qualified marketing activity occurred.
(5) A manufacturer or importing distributor of wine that wishes
to claim the credit allowed under this section shall submit with
the manufacturer's or importing distributor'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.
(7) The Wine Advisory Board shall by rule further define,
consistent with the definition in subsection (1) of this section,
the marketing activities that constitute qualified marketing
activity. + }
SECTION 3. { + Section 2 of this 2001 Act applies to qualified
marketing activity occurring on or after January 1, 2002. + }
SECTION 4. ORS 471.810 is amended to read:
471.810. (1) At the end of each month, the Oregon Liquor
Control Commission shall certify the amount of { - money - }
{ + moneys + } available for distribution in the Oregon Liquor
Control Commission Account, and after withholding such
{ - money - } { + moneys + } as it may deem necessary to pay
its outstanding obligations shall within 35 days of the month for
which a distribution is made direct the State Treasurer to pay
the amounts due, upon warrants drawn by the Oregon Department of
Administrative Services, as follows:
(a) Fifty-six percent, or the amount remaining after the
distribution under subsection { - (3) - } { + (4) + } of this
section, credited to the General Fund available for general
governmental purposes wherein it shall be considered as revenue
during the quarter immediately preceding receipt;
(b) Twenty percent to the cities of the state in such shares as
the population of each city bears to the population of the cities
of the state, as determined by the State Board of Higher
Education last preceding such apportionment, under ORS 190.510 to
190.610;
(c) Ten percent to counties in such shares as their respective
populations bear to the total population of the state, as
estimated from time to time by the State Board of Higher
Education; and
(d) Fourteen percent to the cities of the state to be
distributed as provided in ORS 221.770 and this section.
(2) The commission shall direct the Oregon Department of
Administrative Services to transfer 50 percent of the revenues
from the taxes imposed by ORS 473.030, 473.035 and 473.040 to the
Mental Health Alcoholism and Drug Services Account in the General
Fund to be paid monthly as provided in ORS 430.380.
{ + (3) If the amount of revenues received from the taxes
imposed by ORS 473.030 for the preceding month were reduced as a
result of credits claimed under section 2 of this 2001 Act, the
commission shall compute the difference between the amounts paid
or transferred as described in subsections (1)(b), (c) and (d)
and (2) of this section and the amounts that would have been paid
or transferred under subsections (1)(b), (c) and (d) and (2) of
this section if no credits had been claimed. The commission shall
direct the Oregon Department of Administrative Services to pay or
transfer amounts equal to the differences computed for
subsections (1)(b), (c) and (d) and (2) of this section from the
General Fund to the recipients or accounts described in
subsections (1)(b), (c) and (d) and (2) of this section. + }
{ - (3) - } { + (4) + } Notwithstanding subsection (1) of
this section, no city or county shall receive for any fiscal year
an amount less than the amount distributed to the city or county
in accordance with ORS 471.350 (1965 Replacement Part), 471.810,
473.190 and 473.210 (1965 Replacement Part) during the 1966-1967
fiscal year unless the city or county had a decline in population
as shown by its census. If the population declined, the per
capita distribution to the city or county shall be not less than
the total per capita distribution during the 1966-1967 fiscal
year. Any additional funds required to maintain the level of
distribution under this subsection shall be paid from funds
credited under subsection (1)(a) of this section.
----------