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
 
                         House Bill 3961
 
Sponsored by Representatives DOYLE, SIMMONS; Representatives
  KROPF, 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 as
introduced.
 
  Establishes wine privilege tax credit for manufacturer of wine
for cost of qualified marketing activity that promotes Oregon or
Oregon 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:
  (a) 'Manufacturer of wine' means a manufacturer of wine that
annually produces more than 100,000 gallons, or 379,000 liters,
of wine.
  (b) 'Qualified marketing activity' means marketing activity
that promotes Oregon or Oregon products and that is approved by
the Wine Advisory Board, Economic and Community Development
Department or State Department of Agriculture. The Wine Advisory
Board, Economic and Community Development Department and State
Department of Agriculture shall collaborate to define by rule the
marketing activities that constitute qualified marketing
activity.
  (2) A credit against the privilege tax otherwise due under ORS
473.030 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 on the first 40,000 gallons, or 151,000 liters, of
wine sold annually in Oregon; and
  (b) Twenty-five percent of the cost of qualified marketing
activity to the extent that the cost of the activity exceeds the
amount of taxes the manufacturer of wine owed under ORS 473.030
on the first 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 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,
Economic and Community Development Department or State Department
of Agriculture 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. + }
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