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 3174
House Bill 3099
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.
Imposes tax on purchase price of luxury items. Directs
Department of Revenue to deposit moneys in accounts for
kindergarten through grade 12 education, community colleges and
state institutions of higher education.
Establishes Higher Education Support Fund.
Applies to retail sales of luxury items made on or after
January 1, 2004.
A BILL FOR AN ACT
Relating to tax on luxury items; appropriating money; 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. { + As used in sections 1 to 5 of this 2003 Act:
(1) 'Luxury item' includes, but is not limited to:
(a) Automobiles and trucks with a purchase price of $20,000 or
more.
(b) Personal watercraft.
(c) Airplanes.
(d) Gliders.
(e) Kit planes.
(f) Hang gliders.
(g) Skydiving parachutes.
(h) Sightseeing and other recreational flights.
(i) Fur coats or garments.
(j) Cosmetic surgery that is not for reconstructive purposes.
(k) Electronics with a purchase price of $1,000 or more per
item.
(L) Apparel with a purchase price of $100 or more per item.
(m) Snowmobiles.
(n) All-terrain vehicles.
(o) Sports equipment with a purchase price of $25 or more per
item.
(p) Tickets to movies.
(q) Tickets to ballet performances.
(r) Tickets to theater performances.
(s) Submarines.
(t) Real estate other than the primary residence.
(u) Individual meals with a purchase price of $15 or more.
(2) 'Purchase price' means the total amount for which an item
is sold by a retailer.
(3) 'Retailer' means a person regularly engaged in the business
of selling luxury items to consumers in this state. + }
SECTION 2. { + (1) A tax of ___ percent of the purchase price
of a luxury item is imposed on a consumer who purchases a luxury
item from a retailer.
(2) A retailer shall collect the tax imposed under this section
from the consumer at the time the retailer sells the luxury item
to the consumer.
(3) The tax liability imposed on the consumer by this section
is considered paid at the time the consumer pays to the retailer
the purchase price and tax of the luxury item.
(4) The retailer shall hold in trust for the State of Oregon
all moneys collected under this section until the retailer remits
those moneys to the Department of Revenue under section 3 of this
2003 Act. + }
SECTION 3. { + (1) On or before the last day of the month
following the end of each calendar quarter, a retailer
responsible for collecting moneys from the tax imposed by section
2 of this 2003 Act shall file a return with the Department of
Revenue on a form prescribed by the department by rule.
(2) At the time the retailer files a return under subsection
(1) of this section, the retailer shall remit moneys collected
and held in trust for the State of Oregon under section 2 of this
2003 Act.
(3) If a retailer fails to remit any amount held in trust for
the State of Oregon, the department may enforce collection by the
issuance of a distraint warrant for the collection of the
delinquent amount and all penalties, interest and collection
charges. The warrant shall be issued, docketed and proceeded upon
in the same manner and shall have the same force and effect that
is prescribed for warrants issued to collect delinquent income
taxes.
(4) If the amount paid by a retailer exceeds the amount of tax
payable, the department shall refund the amount of the excess
with interest at the rate established under ORS 305.220 for each
month or fraction of a month from the date of payment of the
excess until the date of the refund. A refund may not be made to
a retailer who fails to claim the refund within two years after
the due date for the filing of the return with respect to which
the claim for the refund relates.
(5) The exclusive remedy for a retailer in a dispute involving
tax liability imposed by section 2 of this 2003 Act is to file a
claim with the department. + }
SECTION 4. { + All moneys received by the Department of
Revenue under section 3 of this 2003 Act, less any collection
charges, shall be held in a suspense account established under
ORS 293.445. After payment of refunds, the balance of moneys
received shall be paid as follows:
(1) Fifty percent into the State School Fund established under
ORS 327.008;
(2) Twenty-five percent into the Community College Support Fund
established under ORS 341.620; and
(3) Twenty-five percent into the Higher Education Support Fund
established under section 7 of this 2003 Act. + }
SECTION 5. { + (1) Every retailer responsible for collecting
moneys from the tax imposed by section 2 of this 2003 Act shall
keep records, render statements, make returns and comply with
rules adopted by the Department of Revenue for the purpose of
implementing sections 1 to 5 of this 2003 Act.
(2) Unless the context requires otherwise, the provisions of
ORS chapters 305, 314 and 316 as to the audit and examination of
reports and returns, determinations of deficiencies, assessments,
claims for refunds, penalties, interest, jeopardy assessments,
warrants, confidentiality and disclosure of information,
conferences and appeals to the Oregon Tax Court, and all related
procedures, apply to the tax imposed under section 2 of this 2003
Act the same as if the tax were a tax imposed upon or measured by
net income. + }
SECTION 6. { + Sections 1 to 5 of this 2003 Act apply to
retail sales of luxury items made on or after January 1,
2004. + }
SECTION 7. { + (1) The Higher Education Support Fund is
established in the State Treasury, separate and distinct from the
General Fund. Interest earned on the Higher Education Support
Fund shall be credited to the fund.
(2) All moneys in the Higher Education Support Fund are
continuously appropriated to the State Board of Higher Education
for purposes authorized by law. + }
----------