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 1234
Senate Bill 336
Printed pursuant to Senate Interim Rule 213.28 by order of the
President of the Senate in conformance with presession filing
rules, indicating neither advocacy nor opposition on the part
of the President (at the request of Governor John A. Kitzhaber,
M.D., for Department of Revenue)
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.
Increases reserve amount in Multistate Tax Commission Revolving
Account. Authorizes Department of Revenue to participate with
federal government in reciprocal offset program to facilitate
collection of outstanding tax debt. Authorizes Department of
Revenue to adopt rules that exempt taxpayers from required
payment of corporation estimated tax and combined withholding tax
by electronic funds transfer when taxpayers are disadvantaged by
such requirements.
Takes effect on 91st day following adjournment sine die.
A BILL FOR AN ACT
Relating to tax administration; creating new provisions; amending
ORS 305.685, 314.518, 314.840 and 316.198; and prescribing an
effective date.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 305.685 is amended to read:
305.685. (1) There is created in the General Fund of the State
Treasury the Multistate Tax Commission Revolving Account.
Notwithstanding any other law, all moneys received by the
Department of Revenue as a result of audits performed by the
Multistate Tax Commission shall be deposited in the Multistate
Tax Commission Revolving Account and are continuously
appropriated. As of June 30 of each year, all moneys in excess of
{ - $100,000 - } { + $150,000 + } in this account shall be
forwarded to the State Treasurer for deposit as miscellaneous
revenues of the General Fund of the State of Oregon.
(2) The Department of Revenue may transfer $5,000 from the
funds appropriated in section 1 of chapter 187, Oregon Laws 1975,
to the Multistate Tax Commission Revolving Account. Such funds
are continuously appropriated for reimbursement to the Multistate
Tax Commission for out-of-state corporation audits made for the
State of Oregon.
SECTION 2. { + Section 3 of this 2001 Act is added to and made
a part of ORS chapter 305. + }
SECTION 3. { + (1) The Director of the Department of Revenue
may enter into an intergovernmental agreement with the United
States Financial Management Service and the Internal Revenue
Service for the purpose of engaging in the reciprocal offset of
federal tax refunds in payment of liquidated state tax
obligations and the offset of state tax refunds in payment of
liquidated federal tax obligations.
(2) The director may pay a fee charged by the federal
government for the processing of an offset request. The fee may
be deducted from amounts remitted to the state by the federal
government pursuant to an intergovernmental agreement.
(3) The Department of Revenue may by rule establish a fee to be
charged to the federal government for the provision of state
offset services.
(4) All moneys received by the department in payment of charges
made pursuant to subsection (3) of this section shall be
deposited in a department miscellaneous receipts account
established under ORS 279.833. + }
SECTION 4. ORS 314.840 is amended to read:
314.840. (1) The Department of Revenue may:
(a) Furnish any taxpayer or representative authorized to
represent the taxpayer under ORS 305.230, upon request of the
taxpayer or representative, with a copy of the taxpayer's income
tax return filed with the department for any year, or with a copy
of any report filed by the taxpayer in connection with the
return, or with any other information the department considers
necessary.
(b) Publish lists of taxpayers who are entitled to unclaimed
tax refunds.
(c) Publish statistics so classified as to prevent the
identification of income or any particulars contained in any
report or return.
(d) Disclose a taxpayer's name, address, telephone number,
refund amount, amount due, social security number, employer
identification number or other taxpayer identification number to
the extent necessary in connection with collection activities or
the processing and mailing of correspondence or of forms for any
report, return or claim required in the administration of ORS
310.630 to 310.706, any local tax under ORS 305.620, or any law
imposing a tax upon or measured by net income.
(2) The department also may disclose and give access to
information described in ORS 314.835 to:
(a) The Governor of the State of Oregon or the authorized
representative of the Governor:
(A) With respect to an individual who is designated as being
under consideration for appointment or reappointment to an office
or for employment in the office of the Governor. The information
disclosed shall be confined to whether the individual:
(i) Has filed returns with respect to the taxes imposed by ORS
chapter 316 for those of not more than the three immediately
preceding years for which the individual was required to file an
Oregon individual income tax return.
(ii) Has failed to pay any tax within 30 days from the date of
mailing of a deficiency notice or otherwise respond to a
deficiency notice within 30 days of its mailing.
(iii) Has been assessed any penalty under the Oregon personal
income tax laws and the nature of the penalty.
(iv) Has been or is under investigation for possible criminal
offenses under the Oregon personal income tax laws. Information
disclosed pursuant to this paragraph shall be used only for the
purpose of making the appointment, reappointment or decision to
employ or not to employ the individual in the office of the
Governor.
(B) For use by an officer or employee of the Oregon Department
of Administrative Services duly authorized or employed to prepare
revenue estimates, or a person contracting with the Oregon
Department of Administrative Services to prepare revenue
estimates, in the preparation of revenue estimates required for
the Governor's budget under ORS 291.201 to 291.226, or required
for submission to the Emergency Board, or if the Legislative
Assembly is in session, to the Joint Committee on Ways and Means,
and to the Legislative Revenue Officer under ORS 291.342, 291.348
and 291.445. The information disclosed or to which access is
given under this subparagraph shall be confined to the identity
of a corporate taxpayer, the amount of the corporate tax
liability of the corporate taxpayer and the amount of the
payments made by the corporation to the Department of Revenue
under the corporate excise and income tax laws of this state. Any
officer, employee or person furnished or granted access to
information under this subparagraph shall not remove the
information from the premises of the Department of Revenue.
(b) The Commissioner of Internal Revenue or authorized
representative, for tax purposes only.
(c) The proper officer of any state or the District of
Columbia, or their authorized representatives, for tax purposes
only, if such state or district has a provision of law which
meets the requirements of any applicable provision of the
Internal Revenue Code as to confidentiality.
(d) The Multistate Tax Commission or its authorized
representatives, for tax purposes only. However, the Multistate
Tax Commission may make such information available to the
Commissioner of Internal Revenue or the proper officer of any
state or the District of Columbia, or their authorized
representatives, for tax purposes only, if the state or district
has a provision of law which meets the requirements of any
applicable provision of the Internal Revenue Code as to
confidentiality.
(e) The Attorney General, assistants and employees in the
Department of Justice, or other legal representative of the State
of Oregon, to the extent the department deems disclosure or
access necessary for the performance of the duties of advising or
representing the department pursuant to ORS 180.010 to 180.240
and the tax laws of this state.
(f) Employees of the State of Oregon, other than of the
Department of Revenue or Department of Justice, to the extent the
department deems disclosure or access necessary for such
employees to perform their duties under contracts or agreements
between the department and any other department, agency or
subdivision of the State of Oregon, in the department's
administration of the tax laws.
(g) Other persons, partnerships, corporations and other legal
entities, and their employees, to the extent the department deems
disclosure or access necessary for the performance of such
others' duties under contracts or agreements between the
department and such legal entities, in the department's
administration of the tax laws.
(h) The Legislative Revenue Officer or authorized
representatives upon compliance with ORS 173.850. Such officer or
representative shall not remove from the premises of the
department any materials that would reveal the identity of any
taxpayer or any other person.
(i) The Department of Consumer and Business Services, to the
extent the department requires such information to determine
whether it is appropriate to adjust those workers' compensation
benefits the amount of which is based pursuant to ORS chapter 656
on the amount of wages or earned income received by an
individual.
(j) Any agency of the State of Oregon, or any person, or any
officer or employee of such agency or person to whom disclosure
or access is given by state law and not otherwise referred to in
this section, including but not limited to the Secretary of State
as Auditor of Public Accounts under section 2, Article VI of the
Oregon Constitution; the Adult and Family Services Division of
the Department of Human Services pursuant to ORS 314.860 and
418.135; the Division of Child Support of the Department of
Justice and district attorney regarding cases for which they are
providing support enforcement services under ORS 25.080; the
State Board of Tax Service Examiners, pursuant to ORS 673.710;
and the Oregon Board of Accountancy, pursuant to ORS 673.415.
(k) The Director of the Department of Consumer and Business
Services to determine that a person complies with ORS chapter 656
and the Director of the Employment Department to determine that a
person complies with ORS chapter 657, the following employer
information:
(A) Identification numbers.
(B) Names and addresses.
(C) Inception date as employer.
(D) Nature of business.
(E) Entity changes.
(F) Date of last payroll.
(L) The Assistant Director for Mental Health and Developmental
Disability Services to determine that a person has the ability to
pay for care that includes services provided by the state
institutions as described in ORS 179.321 or the Mental Health and
Developmental Disability Services Division or to collect any
unpaid cost of care as provided by ORS chapter 179.
(m) Employees of the Employment Department to the extent the
Department of Revenue deems disclosure or access to information
on a combined tax report filed under ORS 316.168 is necessary to
performance of their duties in administering the tax imposed by
ORS chapter 657.
(n) The State Fire Marshal to assist the State Fire Marshal in
carrying out duties, functions and powers under ORS 453.307 to
453.414, the employer or agent name, address, telephone number
and standard industrial classification, if available.
(o) Employees of the Division of State Lands for the purposes
of identifying, locating and publishing lists of taxpayers
entitled to unclaimed refunds as required by the provisions of
chapter 694, Oregon Laws 1993. The information shall be limited
to the taxpayer's name, address and the refund amount.
(p) In addition to the disclosure allowed under ORS 305.225,
state or local law enforcement agencies to assist in the
investigation or prosecution of the following criminal
activities:
(A) Mail theft of a check, in which case the information that
may be disclosed shall be limited to the stolen document, the
name, address and taxpayer identification number of the payee,
the amount of the check and the date printed on the check.
(B) The counterfeiting, forging or altering of a check
submitted by a taxpayer to the Department of Revenue or issued by
the Department of Revenue to a taxpayer, in which case the
information that may be disclosed shall be limited to the
counterfeit, forged or altered document, the name, address and
taxpayer identification number of the payee, the amount of the
check, the date printed on the check and the altered name and
address.
(q) The United States Postal Inspection Service or a federal
law enforcement agency, including but not limited to the United
States Department of Justice, to assist in the investigation of
the following criminal activities:
(A) Mail theft of a check, in which case the information that
may be disclosed shall be limited to the stolen document, the
name, address and taxpayer identification number of the payee,
the amount of the check and the date printed on the check.
(B) The counterfeiting, forging or altering of a check
submitted by a taxpayer to the Department of Revenue or issued by
the Department of Revenue to a taxpayer, in which case the
information that may be disclosed shall be limited to the
counterfeit, forged or altered document, the name, address and
taxpayer identification number of the payee, the amount of the
check, the date printed on the check and the altered name and
address.
{ + (r) The United States Financial Management Service, for
purposes of facilitating the reciprocal offsets described in
section 3 of this 2001 Act. + }
(3)(a) Each officer or employee of the department and each
person described or referred to in subsection (2)(a), (e) to (k)
or (m) to (p) of this section to whom disclosure or access to the
tax information is given under subsection (2) of this section or
any other provision of state law, prior to beginning employment
or the performance of duties involving such disclosure or access,
shall be advised in writing of the provisions of ORS 314.835 and
314.991, relating to penalties for the violation of ORS 314.835,
and shall as a condition of employment or performance of duties
execute a certificate for the department, in a form prescribed by
the department, stating in substance that the person has read
these provisions of law, that the person has had them explained
and that the person is aware of the penalties for the violation
of ORS 314.835.
(b) The disclosure authorized in subsection (2)(q) of this
section shall be made only after a written agreement has been
entered into between the Department of Revenue and the person
described in subsection (2)(q) of this section to whom disclosure
or access to the tax information is given, providing that:
(A) Any information described in ORS 314.835 that is received
by the person pursuant to subsection (2)(q) of this section is
confidential information that may not be disclosed, except to the
extent necessary to investigate or prosecute the criminal
activities described in subsection (2)(q) of this section;
(B) The information shall be protected as confidential under
applicable federal and state laws; and
(C) The United States Postal Inspection Service or the federal
law enforcement agency shall give notice to the Department of
Revenue of any request received under the federal Freedom of
Information Act, 5 U.S.C. 552, or other federal law relating to
the disclosure of information.
(4) The Department of Revenue may recover the costs of
furnishing the information described in subsection (2)(k), (L)
and (n) to (p) of this section from the respective agencies.
SECTION 5. ORS 314.518 is amended to read:
314.518. (1) A corporation required to make a payment of
estimated tax under ORS 314.505 to 314.525 shall make the payment
by means of electronic funds transfer if:
{ - (a) For payment periods beginning on or after July 1,
1999, and before July 1, 2000, the corporation's annual total
amount of estimated tax liability exceeds $1 million. - }
{ - (b) For payment periods beginning on or after July 1,
2000, and before July 1, 2001, the corporation's annual total
amount of estimated tax liability exceeds $200,000. - }
{ - (c) - } { + (a) + } For payment periods beginning on or
after July 1, 2001, and before { - July - } { + January + }
1, 2002, the corporation's annual total amount of estimated tax
liability exceeds $50,000.
{ - (d) - } { + (b) + } { - For the payment period
beginning July - } { + For payment periods beginning on or
after January + } 1, 2002, the corporation is required to make
federal estimated tax payments electronically.
{ + (2) The Department of Revenue may adopt rules that
provide exemptions from the requirement that estimated tax be
paid by electronic funds transfer when the taxpayer is
disadvantaged by required payment by electronic funds
transfer. + }
{ - (2) - } { + (3) + } The Department of Revenue may
accept electronically filed payments voluntarily submitted by a
corporation that is not required to pay by means of electronic
funds transfer.
{ - (3) - } { + (4) + } As used in this section,
'electronic funds transfer' has the meaning given that term in
ORS 293.525.
SECTION 6. ORS 316.198 is amended to read:
316.198. (1) An employer required to make a combined quarterly
tax and assessment payment under ORS 316.168 shall make the
payment by means of electronic funds transfer if { - : - }
{ - (a) For reporting periods beginning on or after July 1,
1998, and before July 1, 1999, the employer's annual total amount
of combined quarterly tax and assessment payments exceeds $1
million. - }
{ - (b) For reporting periods beginning on or after July 1,
1999, and before July 1, 2000, the employer's annual total amount
of combined quarterly tax and assessment payments exceeds
$200,000. - }
{ - (c) For reporting periods beginning on or after July 1,
2000, and before July 1, 2001, the employer's annual total amount
of combined quarterly tax and assessment payments exceeds
$50,000. - }
{ - (d) For reporting periods beginning on or after July 1,
2001, - } the employer is required to make federal payroll tax
payments electronically.
{ + (2) The Department of Revenue may adopt rules that
provide exemptions from the requirement that combined quarterly
tax and assessment payments be paid by electronic funds transfer
when the taxpayer is disadvantaged by required payment by
electronic funds transfer. + }
{ - (2) - } { + (3) + } The Department of Revenue may
accept electronically filed payments voluntarily submitted by an
employer who is not required to pay by means of electronic funds
transfer.
{ - (3) - } { + (4) + } As used in this section, the term
'electronic funds transfer' has the meaning given that term in
ORS 293.525.
SECTION 7. { + 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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