72nd OREGON LEGISLATIVE ASSEMBLY--2003 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 146
 
                         House Bill 2703
 
Sponsored by COMMITTEE ON 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.
 
  Imposes surtax on income or corporate excise tax liability.
Limits application of surtax to taxpayers with incomes exceeding
threshold level.
  Applies to tax years beginning on or after January 1, 2003, and
before January 1, 2004.
  Takes effect on 91st day following adjournment sine die.
 
                        A BILL FOR AN ACT
Relating to taxation; prescribing an effective date; and
  providing for revenue raising that requires approval by a
  three-fifths majority.
Be It Enacted by the People of the State of Oregon:
  SECTION 1.  { + Section 2 of this 2003 Act is added to and made
a part of ORS chapter 316. + }
  SECTION 2.  { + (1) As used in this section, 'personal income
tax liability' means the total amount of tax imposed under this
chapter for the tax year after application of any credits
allowable for the tax year but before application of this
section.
  (2)(a) In addition to and not in lieu of any other tax, a
surtax is imposed on the personal income tax liability of a
taxpayer as otherwise determined under this chapter. The surtax
is equal to six percent of the personal income tax liability of
the taxpayer for the tax year.
  (b) This section does not apply to a taxpayer that has federal
adjusted gross income for the tax year of less than $75,000.
  (3) The surtax imposed under this section is not subject to
withholding under ORS 316.162 to 316.212. Notwithstanding ORS
316.557 to 316.589, estimated tax payments are not required for
the surtax imposed under this section.
  (4) Except as otherwise provided in this section, the surtax
imposed under this section must be reported and collected at the
same time and in the same manner as personal income taxes imposed
under this chapter are reported and collected. The provisions of
ORS chapters 305 and 314 that apply to audits and examinations of
returns, periods of limitation, determinations of and notices of
deficiencies, assessments, liens, delinquencies, penalties,
interest, claims for refunds, conferences, appeals to the Oregon
Tax Court, stays of collection pending appeal and the
confidentiality of returns also apply to the surtax imposed under
this section.
  (5) Revenue from the surtax imposed under this section shall be
distributed as prescribed in ORS 316.502. + }
  SECTION 3.  { + Section 2 of this 2003 Act applies to tax years
beginning on or after January 1, 2003, and before January 1,
2004. + }
  SECTION 4.  { + Section 5 of this 2003 Act is added to and made
a part of ORS chapter 317. + }
  SECTION 5.  { + (1) As used in this section, 'excise tax
liability' means the total amount of tax imposed under this
chapter for the tax year after application of any credits
allowable for the tax year but before application of this
section.
  (2)(a) In addition to and not in lieu of any other tax, a
surtax is imposed on the excise tax liability of a taxpayer as
otherwise determined under this chapter. The surtax is equal to
six percent of the excise tax liability of the taxpayer for the
tax year.
  (b) This section does not apply to a taxpayer that has taxable
income for the tax year of less than $75,000.
  (3) Notwithstanding ORS 314.505 to 314.525, estimated tax
payments are not required for the surtax imposed under this
section.
  (4) Except as otherwise provided in this section, the surtax
imposed under this section must be reported and collected at the
same time and in the same manner as excise taxes imposed under
this chapter are reported and collected. The provisions of ORS
chapters 305 and 314 that apply to audits and examinations of
returns, periods of limitation, determinations of and notices of
deficiencies, assessments, liens, delinquencies, penalties,
interest, claims for refunds, conferences, appeals to the Oregon
Tax Court, stays of collection pending appeal and the
confidentiality of returns also apply to the surtax imposed under
this section.
  (5) Revenue from the surtax imposed under this section shall be
distributed as prescribed in ORS 317.850. + }
  SECTION 6.  { + Section 5 of this 2003 Act applies to tax years
beginning on or after January 1, 2003, and before January 1,
2004. + }
  SECTION 7.  { + Section 8 of this 2003 Act is added to and made
a part of ORS chapter 318. + }
  SECTION 8.  { + (1) As used in this section, 'corporate income
tax liability' means the total amount of tax imposed under this
chapter for the tax year after application of any credits
allowable for the tax year but before application of this
section.
  (2)(a) In addition to and not in lieu of any other tax, a
surtax is imposed on the corporate income tax liability of a
taxpayer as otherwise determined under this chapter. The surtax
is equal to six percent of the corporate income tax liability of
the taxpayer for the tax year.
  (b) This section does not apply to a taxpayer that has taxable
income for the tax year of less than $75,000.
  (3) Notwithstanding ORS 314.505 to 314.525, estimated tax
payments are not required for the surtax imposed under this
section.
  (4) Except as otherwise provided in this section, the surtax
imposed under this section must be reported and collected at the
same time and in the same manner as corporate income taxes
imposed under this chapter are reported and collected. The
provisions of ORS chapters 305 and 314 that apply to audits and
examinations of returns, periods of limitation, determinations of
and notices of deficiencies, assessments, liens, delinquencies,
penalties, interest, claims for refunds, conferences, appeals to
the Oregon Tax Court, stays of collection pending appeal and the
confidentiality of returns also apply to the surtax imposed under
this section.
  (5) Revenue from the surtax imposed under this section shall be
distributed as prescribed in ORS 318.070. + }
  SECTION 9.  { + Section 8 of this 2003 Act applies to tax years
beginning on or after January 1, 2003, and before January 1,
2004. + }
  SECTION 10.  { + 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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