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 2823
House Bill 3034
Sponsored by Representative MARCH
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 tax on wines, malt beverages and cider. Dedicates tax
moneys to funding alcohol and drug abuse treatment and prevention
and mental health treatment.
Applies to tax reporting periods beginning on or after January
1, 2005.
Refers Act to people for their approval or rejection at next
regular general election.
A BILL FOR AN ACT
Relating to taxation; creating new provisions; amending ORS
471.805, 471.810, 473.030, 473.035, 473.047 and 576.765;
providing for revenue raising that requires approval by a
three-fifths majority; and providing that this Act shall be
referred to the people for their approval or rejection.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 473.030 is amended to read:
473.030. (1) A tax is imposed upon the privilege of engaging in
business as a manufacturer or as an importing distributor of malt
beverages at the rate of $2.60 per barrel of 31 gallons on all
such beverages.
{ + (2) In addition to the tax imposed by subsection (1) of
this section, a manufacturer or an importing distributor of malt
beverages shall be taxed at the rate of $___ per barrel of 31
gallons. + }
{ - (2) - } { + (3) + } A tax is imposed upon the privilege
of engaging in business as a manufacturer or as an importing
distributor of wines at the rate of 65 cents per gallon on all
such beverages.
{ - (3) - } { + (4) + } In addition to the tax imposed by
subsection { - (2) - } { + (3) + } of this section, a
manufacturer or an importing distributor of wines containing more
than 14 percent alcohol by volume shall be taxed at the rate of
10 cents per gallon.
{ - (4) - } { + (5) + } In addition to the taxes imposed by
subsections
{ - (2) and (3) - } { + (3) and (4) + } of this section, a
manufacturer or an importing distributor of wines shall be taxed
at the rate of two cents per gallon. Notwithstanding any other
provision of law, all moneys collected by the Oregon Liquor
Control Commission pursuant to this subsection shall be paid into
the Wine Advisory Board Account established under ORS 576.765.
{ + (6) In addition to the taxes imposed by subsections (3)
to (5) of this section, a manufacturer or an importing
distributor of wines shall be taxed at the rate of $ ___ per
gallon. + }
{ - (5) - } { + (7) + } The rates of tax imposed by this
section upon malt beverages apply proportionately to quantities
in containers of less capacity than those quantities specified in
this section.
{ - (6) - } { + (8) + } The taxes imposed by this section
shall be measured by the volume of wine or malt beverages
produced, purchased or received by any manufacturer. If the wine
or malt beverage remains unsold and in the possession of the
producer at the plant where it was produced, no tax imposed or
levied by this section is required to be paid until the wine or
malt beverage has become sufficiently aged for marketing at
retail, but this subsection shall not be construed so as to alter
or affect any provision of this chapter relating to tax liens or
the filing of statements.
SECTION 2. ORS 473.035 is amended to read:
473.035. (1) A tax is imposed upon the privilege of engaging in
business as a manufacturer or as an importing distributor of
cider at the rate of $2.60 per barrel of 31 gallons on all such
beverages.
{ + (2) In addition to the tax imposed by subsection (1) of
this section, a manufacturer or an importing distributor of cider
shall be taxed at the rate of $___ per barrel of 31 gallons. + }
{ - (2) - } { + (3) + } Notwithstanding { - subsection
(1) - } { + subsections (1) and (2) + } of this section or any
other provision of law, the taxation of the manufacturing or
distribution of cider shall be at a rate that is not less than
the rate imposed for the privilege of manufacturing or
distributing malt beverages under ORS 473.030 (1) { + and
(2) + }.
{ - (3) - } { + (4) + } The rate of tax imposed by this
section shall apply proportionately to quantities in containers
of less capacity than those quantities specified in this section.
{ - (4) - } { + (5) + } The tax imposed by this section
shall be measured by the volume of cider produced, purchased or
received by any manufacturer. If the cider remains unsold and in
the possession of the producer at the plant where it was
produced, no tax imposed or levied by this section is required to
be paid until the cider has become sufficiently aged for
marketing at retail, but this subsection shall not be construed
so as to alter or affect any provision of this chapter relating
to tax liens or the filing of statements.
SECTION 3. ORS 473.047 is amended to read:
473.047. (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) - } { + (3) + } 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) - } { +
(3) + } 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) - } { + (3) + } 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) - } { + (3) + } 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 4. ORS 471.805 is amended to read:
471.805. (1) Except as otherwise provided in ORS 471.810 (2),
all money collected by the Oregon Liquor Control Commission under
this chapter and ORS chapter 473 and privilege taxes shall be
remitted to the State Treasurer who shall credit it to a suspense
account of the commission. Whenever the commission determines
that moneys have been received by it in excess of the amount
legally due and payable to the commission or that it has received
money to which it has no legal interest, or that any license fee
or deposit is properly refundable, the commission is authorized
and directed to refund such money by check drawn upon the State
Treasurer and charged to the suspense account of the commission.
After withholding refundable license fees and such sum, not to
exceed $250,000, as it considers necessary as a revolving fund
for a working cash balance for the purpose of paying travel
expenses, advances, other miscellaneous bills and extraordinary
items which are payable in cash immediately upon presentation,
the commission shall direct the State Treasurer to transfer the
money remaining in the suspense account { - to - } { + as
follows:
(a) To the Mental Health and Substance Abuse Treatment Fund
established under section 8 of this 2003 Act, the amount equal to
the moneys collected under ORS 473.030 (2) and (6) and 473.035
(2); and
(b) To + } the Oregon Liquor Control Commission Account in the
General Fund { + , the amount remaining in the suspense account
following the transfer of funds under paragraph (a) of this
subsection + }.
(2) All necessary expenditures of the commission incurred in
carrying out the purposes and provisions required of the
commission by law, including the salaries of its employees,
purchases made by the commission and such sums necessary to
reimburse the $250,000 revolving fund, shall be audited and paid
from the Oregon Liquor Control Commission Account in the General
Fund, upon warrants drawn by the Oregon Department of
Administrative Services, pursuant to claims duly approved by the
commission.
(3) Money produced by the operation of this chapter and ORS
chapter 473 necessary to pay such expenditures is appropriated
from the Oregon Liquor Control Commission Account in the General
Fund for such purposes.
SECTION 5. 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 moneys available
for distribution in the Oregon Liquor Control Commission Account,
and after withholding such 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 (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
{ + in the Oregon Liquor Control Commission Account + } 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 ORS 473.047, 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.
(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.
SECTION 6. ORS 576.765 is amended to read:
576.765. (1) There is established in the General Fund of the
State Treasury a Wine Advisory Board Account. Funds collected
pursuant to ORS 473.030 { - (4) - } { + (5) + } and 473.045
shall be credited to such account and shall be continuously
appropriated exclusively for the expenses of the Wine Advisory
Board. In any fiscal year the board shall budget, from funds
other than fees collected by the Wine Advisory Board, at least
one-third of its funds toward research and development and at
least one-third toward promotion and marketing including
administrative costs associated with either category.
(2) All funds collected pursuant to ORS 473.030 { - (4) - }
{ + (5) + } shall be credited to the account and are
appropriated continuously to the Wine Advisory Board for the
payment of expenses of any duty, function or power imposed by law
upon the board.
SECTION 7. { + The amendments to ORS 471.805, 471.810,
473.030, 473.035, 473.047 and 576.765 by sections 1 to 6 of this
2003 Act apply to tax reporting periods beginning on or after
January 1, 2005. + }
SECTION 8. { + (1) The Mental Health and Substance Abuse
Treatment Fund is established in the State Treasury, separate and
distinct from the General Fund. Interest earned by the Mental
Health and Substance Abuse Treatment Fund shall be credited to
the Mental Health and Substance Abuse Treatment Fund.
(2) Moneys in the Mental Health and Substance Abuse Treatment
Fund are dedicated to funding alcohol and drug abuse treatment
and prevention and mental health treatment. + }
SECTION 9. { + This 2003 Act shall be submitted to the people
for their approval or rejection at the next regular general
election held throughout this state. + }
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