72nd OREGON LEGISLATIVE ASSEMBLY--2003 Regular Session
Enrolled
House Bill 2043
Ordered printed by the Speaker pursuant to House Rule 12.00A (5).
Presession filed (at the request of House Interim Committee on
Transportation for Oregon Environmental Council)
CHAPTER ................
AN ACT
Relating to tax credits for motor vehicle insurers; and
prescribing an effective date.
Be It Enacted by the People of the State of Oregon:
SECTION 1. { + Sections 2 and 3 of this 2003 Act are added to
and made a part of ORS chapter 317. + }
SECTION 2. { + (1) As used in this section:
(a) 'Mile-based rating plan' means a rating plan for which a
unit of exposure is one mile traveled by the insured motor
vehicle.
(b) 'Time-based rating plan' means a rating plan for which a
unit of exposure is one minute or one hour traveled by the
insured motor vehicle.
(c) 'Unit of exposure' means a unit that measures the loss
exposure assumed by an insurer, the total of such units of which
is multiplied by the policy rate, or rates, to produce the policy
premium.
(2) A corporation shall be allowed a credit against the taxes
that are otherwise due under this chapter or ORS chapter 318 for
providing motor vehicle insurance policies in this state that are
at least 70 percent based on a mile-based rating plan or a
time-based rating plan.
(3) The amount of the credit shall equal $100 for each vehicle
insured under a policy described in subsection (2) of this
section that is issued in this state during the tax year.
(4) The credit may not exceed $300 for each policy described in
subsection (2) of this section that is issued by the taxpayer.
(5) The total amount of credit allowed under this section in a
tax year may not exceed the tax liability of the taxpayer and may
not be carried forward to another tax year.
(6) In order for credit to be claimed for a policy under this
section, the taxpayer must obtain a verified statement from the
policyholder stating that the policy for which a credit is
claimed covers all vehicles used at the household of the
policyholder and owned, leased or regularly operated by the
policyholder or by an individual who is legally related to the
policyholder or who otherwise regularly shares vehicles with the
policyholder.
(7) The credit may not be claimed with respect to a policy for
which a credit was allowed in a previous tax year. + }
Enrolled House Bill 2043 (HB 2043-A) Page 1
SECTION 3. { + Notwithstanding section 2 of this 2003 Act, if
a credit claimed under section 2 of this 2003 Act, when added to
all previous credits allowed under section 2 of this 2003 Act by
all taxpayers for all tax years, exceeds $1 million, the credit
shall be disallowed. + }
SECTION 4. { + Sections 2 and 3 of this 2003 Act apply to tax
years beginning on or after January 1, 2005, and before January
1, 2010. + }
SECTION 5. { + Notwithstanding section 2 (3) of this 2003 Act,
for tax years beginning on or after January 1, 2005, and before
January 1, 2006, a credit may be allowed under section 2 of this
2003 Act for motor vehicle insurance policies issued in this
state on or after January 1, 2004, that are otherwise eligible
for a credit under section 2 of this 2003 Act. + }
SECTION 6. { + This 2003 Act takes effect on the 91st day
after the date on which the regular session of the Seventy-second
Legislative Assembly adjourns sine die. + }
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Passed by House April 23, 2003
...........................................................
Chief Clerk of House
...........................................................
Speaker of House
Passed by Senate June 19, 2003
...........................................................
President of Senate
Enrolled House Bill 2043 (HB 2043-A) Page 2
Received by Governor:
......M.,............., 2003
Approved:
......M.,............., 2003
...........................................................
Governor
Filed in Office of Secretary of State:
......M.,............., 2003
...........................................................
Secretary of State
Enrolled House Bill 2043 (HB 2043-A) Page 3