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 3253
House Bill 3500
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.
Phases in reductions in personal income tax rates and
elimination of taxation of net capital gains. Increases earned
income tax credit and makes credit refundable.
Updates connection date to federal estate tax law and
eliminates Oregon inheritance tax on estates of decedents who die
after certain date.
Increases taxes on malt beverages and cider.
Establishes general sales and use tax. Directs Department of
Revenue to enter into multistate agreement to streamline
administration of sales and use taxes. Dedicates sales tax
revenues to kindergarten through grade 12 public education.
Takes effect on 91st day following adjournment sine die.
A BILL FOR AN ACT
Relating to taxation; creating new provisions; amending ORS
118.010, 305.130, 305.140, 305.265, 305.270, 305.280, 305.565,
305.850, 305.895, 315.262, 315.266, 316.037, 316.045, 316.502,
471.805, 471.810, 473.030, 473.035, 473.047, 473.050, 576.765,
731.840, 801.040, 802.110 and 803.585; repealing ORS 316.045;
appropriating money; 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:
{ +
SHORT TITLE + }
SECTION 1. { + This 2003 Act may be cited as the Oregon
Economic Revitalization, Tax Stability and Restructuring Act. + }
{ +
PERSONAL INCOME TAX REDUCTIONS + }
SECTION 2. ORS 316.037 is amended to read:
316.037. (1)(a) A tax is imposed for each taxable year on the
entire taxable income of every resident of this state. The amount
of the tax shall be determined in accordance with the following
table:
_________________________________________________________________
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
If taxable income The tax is:
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
Not over $2,000 { -
5% - }
{ +
2% + }
of
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
taxable
income
Over $2,000 but not
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
over $5,000 { -
$100 plus 7% - }
{ +
$40 plus 4% + }
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
of the excess
over $2,000
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
Over $5,000 { -
$310 plus 9% - }
{ +
$160 plus 6% + }
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
of the excess
over $5,000
_________________________________________________________________
____________________________________________________________
END OF POSSIBLE IRREGULAR TABULAR TEXT
____________________________________________________________
(b) For tax years beginning in each calendar year, the
Department of Revenue shall adopt a table which shall apply in
lieu of the table contained in paragraph (a) of this subsection,
as follows:
(A) The minimum and maximum dollar amounts for each rate
bracket for which a tax is imposed shall be increased by the
cost-of-living adjustment for the calendar year.
(B) The rate applicable to any rate bracket as adjusted under
subparagraph (A) of this paragraph shall not be changed.
(C) The amounts setting forth the tax, to the extent necessary
to reflect the adjustments in the rate brackets, shall be
adjusted.
(c) For purposes of paragraph (b) of this subsection, the
cost-of-living adjustment for any calendar year is the percentage
(if any) by which the monthly averaged U.S. City Average Consumer
Price Index for the 12 consecutive months ending August 31 of the
prior calendar year exceeds the monthly averaged index for the
second quarter of the calendar year 1992.
(d) As used in this subsection, 'U.S. City Average Consumer
Price Index' means the U.S. City Average Consumer Price Index for
All Urban Consumers (All Items) as published by the Bureau of
Labor Statistics of the United States Department of Labor.
(e) If any increase determined under paragraph (b) of this
subsection is not a multiple of $50, the increase shall be
rounded to the next lowest multiple of $50.
(2) A tax is imposed for each taxable year upon the entire
taxable income of every part-year resident of this state. The
amount of the tax shall be computed under subsection (1) of this
section as if the part-year resident were a full-year resident
and shall be multiplied by the ratio provided under ORS 316.117
to determine the tax on income derived from sources within this
state.
(3) A tax is imposed for each taxable year on the taxable
income of every full-year nonresident that is derived from
sources within this state. The amount of the tax shall be
determined in accordance with the table set forth in subsection
(1) of this section.
{ + (4) Notwithstanding subsections (1) to (3) of this
section, net capital gain that is included in taxable income for
Oregon tax purposes shall be taxed at the rate of four
percent. + }
SECTION 3. ORS 316.045 is amended to read:
316.045. (1) As used in this section:
(a) 'Farming' means:
(A) Raising, harvesting and selling crops;
(B) Feeding, breeding, managing or selling livestock, poultry,
fur-bearing animals or honeybees or the produce thereof;
(C) Dairying and selling dairy products;
(D) Stabling or training equines, including but not limited to
providing riding lessons, training clinics and schooling shows;
(E) Propagating, cultivating, maintaining or harvesting aquatic
species and bird and animal species to the extent allowed by the
rules adopted by the State Fish and Wildlife Commission;
(F) On-site constructing and maintaining equipment and
facilities used for the activities described in this subsection;
(G) Preparing, storing or disposing of, by marketing or
otherwise, the products or by-products raised for human or animal
use on land employed in activities described in this subsection;
or
(H) Any other agricultural or horticultural activity or animal
husbandry, or any combination of these activities, except that
'farming' does not include growing and harvesting trees of a
marketable species other than growing and harvesting cultured
Christmas trees or certain hardwood timber described in ORS
321.267 (1)(e) or 321.415 (5).
(b) 'Section 1231 gain' has the meaning given that term in
section 1231 of the Internal Revenue Code.
(2) Notwithstanding ORS 316.037, taxable income that consists
of net long-term capital gain shall be subject to tax under this
chapter at a rate of { - five - } { + four + } percent if all
of the following conditions apply:
(a) The gain is:
(A) Derived from the sale or exchange of capital assets
consisting of ownership interests in a corporation, partnership
or other entity in which, prior to the sale or exchange, the
taxpayer owned at least a 10 percent ownership interest; or
(B) Section 1231 gain.
(b) The property that was sold or exchanged consisted of:
(A) Ownership interests in a corporation, partnership or other
entity that is engaged in the trade or business of farming; or
(B) Property that is predominantly used in the trade or
business of farming.
(c) The sale or exchange is to a person who is not related to
the taxpayer under section 267 of the Internal Revenue Code.
(d) The sale or exchange constitutes a substantially complete
termination of all of the taxpayer's ownership interests in a
trade or business that is engaged in farming or a substantially
complete termination of all of the taxpayer's ownership interests
in property that is employed in the trade or business of farming.
Ownership of a farm dwelling or farm homesite does not constitute
ownership of property employed in the trade or business of
farming.
(3) If the taxpayer has net long-term capital gain derived in
part from the sale or exchange of property described in
subsection (2)(b) of this section and in part from the sale or
exchange of all other property, the net long-term capital gain
that is subject to tax under this section shall be determined as
follows:
(a) Compute the net long-term capital gain derived from all
property described in subsection (2)(b) of this section that was
sold or exchanged during the tax year.
(b) Compute the net capital gain or loss from the sale or
exchange of all other property during the tax year.
(c) If the amount determined under paragraph (b) of this
subsection is a net capital gain, the gain that is subject to tax
under subsection (2) of this section shall be the amount
determined under paragraph (a) of this subsection.
(d) If the amount determined under paragraph (b) of this
subsection is a net capital loss, the gain that is subject to tax
under subsection (2) of this section shall be the amount
determined under paragraph (a) of this subsection minus the
amount determined under paragraph (b) of this subsection.
SECTION 4. ORS 315.262, as amended by section 1, chapter 867,
Oregon Laws 2001, is amended to read:
315.262. (1) As used in this section:
(a) 'Child care' means care provided to a qualifying child of
the taxpayer for the purpose of allowing the taxpayer to be
gainfully employed, to seek employment or to attend school on a
full-time or part-time basis, except that the term does not
include care provided by:
(A) The child's parent or guardian, unless the care is provided
by the parent in a licensed or registered child care facility; or
(B) A child of the taxpayer who has not yet attained 19 years
of age at the close of the tax year.
(b) 'Child care expenses' means the costs associated with
providing child care to a qualifying child of a qualified
taxpayer.
(c) 'Earned income' has the meaning given that term in section
32 of the Internal Revenue Code.
(d) 'Qualified taxpayer' means a taxpayer:
(A) With at least $6,000 of earned income for the tax year;
(B) With federal adjusted gross income for the tax year that
does not exceed 250 percent of the federal poverty level; and
(C) Who does not have more than the maximum amount of
disqualified income under section 32(i) of the Internal Revenue
Code that is allowed to a taxpayer entitled to the earned income
tax credit for federal tax purposes.
(e) 'Qualifying child' means a child of the taxpayer who is
under 13 years of age, or who is a disabled child, as that term
is defined in ORS 316.099.
(2) A qualified taxpayer shall be allowed a credit against the
taxes otherwise due under ORS chapter 316 equal to the applicable
percentage of the qualified taxpayer's child care expenses
(rounded to the nearest $50).
(3) The applicable percentage to be used in calculating the
amount of the credit provided in this section shall be determined
in accordance with the following table:
_________________________________________________________________
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
Applicable Federal Adjusted
Percentage Gross Income as Percent
of Federal Poverty Level
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
40 200 or less
36 Greater than 200 and less than
or equal to 210
32 Greater than 210 and less than
or equal to 220
24 Greater than 220 and less than
or equal to 230
16 Greater than 230 and less than
or equal to 240
8 Greater than 240 and less than
or equal to 250
0 Greater than 250 percent
of federal poverty level
____________________________________________________________
END OF POSSIBLE IRREGULAR TABULAR TEXT
____________________________________________________________
_________________________________________________________________
(4) The credit shall be claimed on such form and containing
such information as may be prescribed by the Department of
Revenue.
(5) In the case of a credit allowed under this section:
(a) A nonresident shall be allowed the credit under this
section in the proportion provided in ORS 316.117.
(b) If a change in the status of a taxpayer from resident to
nonresident or from nonresident to resident occurs, the credit
allowed by this section shall be determined in a manner
consistent with ORS 316.117.
(c) If a change in the taxable year of a taxpayer occurs as
described in ORS 314.085, or if the Department of Revenue
terminates the taxpayer's taxable year under ORS 314.440, the
credit allowed under this section shall be prorated or computed
in a manner consistent with ORS 314.085.
(d) In the case of a qualified taxpayer who is married, a
credit shall be allowed under this section only if:
(A) The taxpayer files a joint return;
(B) The taxpayer files a separate return and is legally
separated or subject to a separate maintenance agreement; or
(C) The taxpayer files a separate return and the taxpayer and
the taxpayer's spouse reside in separate households on the last
day of the tax year with the intent of remaining in separate
households in the future.
(6) { - (a) - } If the amount allowable as a credit under
this section, when added to the sum of the amounts allowable as
payment of tax under ORS 316.187 (withholding), ORS 316.583
(estimated tax), other tax prepayment amounts and other
refundable credit amounts, exceeds the taxes imposed by ORS
chapters 314 and 316 for the tax year (reduced by any
nonrefundable credits allowable for purposes of ORS chapter 316
for the tax year), the amount of the excess shall be refunded to
the taxpayer as provided in { - this subsection - } { + ORS
316.502 + }.
{ - (b) Except that refunds attributable to the child care
tax credit shall be made from the moneys transferred under
paragraph (c) of this subsection, any refund described in
paragraph (a) of this subsection shall be paid from the
Department of Revenue suspense account established under ORS
293.445. - }
{ - (c) Moneys necessary to make refunds attributable to the
child care tax credit shall be transferred from and are
continuously appropriated from the General Fund to the Department
of Revenue suspense account established under ORS 293.445 for the
purpose of making the refunds required under this section. - }
(7)(a) The minimum amount of earned income a taxpayer must earn
in order to be a qualified taxpayer shall be adjusted for tax
years beginning in each calendar year by multiplying $6,000 by
the ratio of the monthly averaged U.S. City Average Consumer
Price Index for the 12 consecutive months ending August 31 of the
prior calendar year over the monthly averaged index for the
second quarter of the calendar year 1998.
(b) As used in this subsection, 'U.S. City Average Consumer
Price Index' means the U.S. City Average Consumer Price Index for
All Urban Consumers (All Items) as published by the Bureau of
Labor Statistics of the United States Department of Labor.
(c) If any adjustment determined under paragraph (a) of this
subsection is not a multiple of $50, the adjustment shall be
rounded to the nearest multiple of $50.
(d) Notwithstanding paragraphs (a) to (c) of this subsection,
the adjusted minimum amount of earned income a taxpayer must earn
may not exceed the amount an individual would earn if the
individual worked 1,040 hours at the minimum wage established
under ORS 653.025 and in effect on January 1 of the calendar year
in which begins the tax year of the taxpayer, rounded to the next
lower multiple of $50.
SECTION 5. ORS 315.266 is amended to read:
315.266. (1) In addition to any other credit available for
purposes of ORS chapter 316, an eligible resident individual
shall be allowed a credit against the tax otherwise due under ORS
chapter 316 for the tax year in an amount equal to { - five - }
{ + 25 + } percent of the earned income credit allowable to the
individual for the same tax year under section 32 of the Internal
Revenue Code.
(2) An eligible nonresident individual shall be allowed the
credit computed in the same manner and subject to the same
limitations as the credit allowed a resident by subsection (1) of
this section. However, the credit shall be prorated using the
proportion provided in ORS 316.117.
(3) If a change in the taxable year of a taxpayer occurs as
described in ORS 314.085, or if the Department of Revenue
terminates the taxpayer's taxable year under ORS 314.440, the
credit allowed by this section shall be prorated or computed in a
manner consistent with ORS 314.085.
(4) If a change in the status of a taxpayer from resident to
nonresident or from nonresident to resident occurs, the credit
allowed by this section shall be determined in a manner
consistent with ORS 316.117.
{ - (5) The credit allowed under this section may not exceed
the tax liability of the taxpayer and may not be carried forward
to a succeeding tax year. - }
{ + (5) If the amount allowable as a credit under this
section, when added to the sum of the amounts allowable as
payment of tax under ORS 316.187 (withholding), ORS 316.583
(estimated tax), other tax prepayment amounts and other
refundable credit amounts, exceeds the taxes imposed by ORS
chapters 314 and 316 for the tax year (reduced by any
nonrefundable credits allowable for purposes of ORS chapter 316
for the tax year), the amount of the excess shall be refunded to
the taxpayer as provided in ORS 316.502. + }
(6) The Department of Revenue may adopt rules for purposes of
this section, including but not limited to rules relating to
proof of eligibility and the furnishing of information regarding
the federal earned income credit claimed by the taxpayer for the
tax year.
(7) Refunds attributable to the earned income credit allowed
under this section { - shall - } { + may + } not bear
interest.
(8) Notwithstanding ORS 315.004, as used in this section, '
Internal Revenue Code' means the federal Internal Revenue Code as
amended and in effect on June 8, 2001.
SECTION 6. ORS 316.502 is amended to read:
316.502. (1) The net revenue from the tax imposed by this
chapter, after deducting refunds, shall be paid over to the State
Treasurer and held in the General Fund as miscellaneous receipts
available generally to meet any expense or obligation of the
State of Oregon lawfully incurred.
(2) A working balance of unreceipted revenue from the tax
imposed by this chapter may be retained for the payment of
refunds, but such working balance { - shall - } { + may + }
not at the close of any fiscal year exceed the sum of $1 million.
(3) Moneys are continuously appropriated to the Department of
Revenue to make { + :
(a) + } The refunds authorized under subsection (2) of this
section { + ; and
(b) The refunds in excess of tax liability authorized under ORS
315.262 and 315.266 + }.
SECTION 7. { + The amendments to ORS 315.262, 315.266,
316.037, 316.045 and 316.502 by sections 2 to 6 of this 2003 Act
apply to income tax years beginning on or after January 1,
2004. + }
SECTION 7a. ORS 316.037, as amended by section 2 of this 2003
Act, is amended to read:
316.037. (1)(a) A tax is imposed for each taxable year on the
entire taxable income of every resident of this state. The amount
of the tax shall be determined in accordance with the following
table:
_________________________________________________________________
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
If taxable income The tax is:
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
Not over $2,000 { +
+ }
{ -
2% - }
{ +
0% + }
of
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
taxable
income
Over $2,000 but not
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
over $5,000 { -
$40 plus 4% - }
{ +
2% + }
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
of the excess
over $2,000
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
Over $5,000 { -
$160 plus 6% - }
{ +
$60 plus 4% + }
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
of the excess
over $5,000
_________________________________________________________________
____________________________________________________________
END OF POSSIBLE IRREGULAR TABULAR TEXT
____________________________________________________________
(b) For tax years beginning in each calendar year, the
Department of Revenue shall adopt a table which shall apply in
lieu of the table contained in paragraph (a) of this subsection,
as follows:
(A) The minimum and maximum dollar amounts for each rate
bracket for which a tax is imposed shall be increased by the
cost-of-living adjustment for the calendar year.
(B) The rate applicable to any rate bracket as adjusted under
subparagraph (A) of this paragraph shall not be changed.
(C) The amounts setting forth the tax, to the extent necessary
to reflect the adjustments in the rate brackets, shall be
adjusted.
(c) For purposes of paragraph (b) of this subsection, the
cost-of-living adjustment for any calendar year is the percentage
(if any) by which the monthly averaged U.S. City Average Consumer
Price Index for the 12 consecutive months ending August 31 of the
prior calendar year exceeds the monthly averaged index for the
second quarter of the calendar year 1992.
(d) As used in this subsection, 'U.S. City Average Consumer
Price Index' means the U.S. City Average Consumer Price Index for
All Urban Consumers (All Items) as published by the Bureau of
Labor Statistics of the United States Department of Labor.
(e) If any increase determined under paragraph (b) of this
subsection is not a multiple of $50, the increase shall be
rounded to the next lowest multiple of $50.
(2) A tax is imposed for each taxable year upon the entire
taxable income of every part-year resident of this state. The
amount of the tax shall be computed under subsection (1) of this
section as if the part-year resident were a full-year resident
and shall be multiplied by the ratio provided under ORS 316.117
to determine the tax on income derived from sources within this
state.
(3) A tax is imposed for each taxable year on the taxable
income of every full-year nonresident that is derived from
sources within this state. The amount of the tax shall be
determined in accordance with the table set forth in subsection
(1) of this section.
{ - (4) Notwithstanding subsections (1) to (3) of this
section, net capital gain that is included in taxable income for
Oregon tax purposes shall be taxed at the rate of four
percent. - }
SECTION 7b. { + Any net capital gain incurred by the taxpayer
during the tax year that is includable in taxable income for
federal tax purposes is exempt from tax under this chapter. + }
SECTION 7c. { + Section 7b of this 2003 Act and the amendments
to ORS 316.037 by section 7a of this 2003 Act apply to tax years
beginning on or after January 1, 2006. + }
SECTION 7d. ORS 316.045, as amended by section 3 of this 2003
Act, is amended to read:
316.045. (1) As used in this section:
(a) 'Farming' means:
(A) Raising, harvesting and selling crops;
(B) Feeding, breeding, managing or selling livestock, poultry,
fur-bearing animals or honeybees or the produce thereof;
(C) Dairying and selling dairy products;
(D) Stabling or training equines, including but not limited to
providing riding lessons, training clinics and schooling shows;
(E) Propagating, cultivating, maintaining or harvesting aquatic
species and bird and animal species to the extent allowed by the
rules adopted by the State Fish and Wildlife Commission;
(F) On-site constructing and maintaining equipment and
facilities used for the activities described in this subsection;
(G) Preparing, storing or disposing of, by marketing or
otherwise, the products or by-products raised for human or animal
use on land employed in activities described in this subsection;
or
(H) Any other agricultural or horticultural activity or animal
husbandry, or any combination of these activities, except that
'farming' does not include growing and harvesting trees of a
marketable species other than growing and harvesting cultured
Christmas trees or certain hardwood timber described in ORS
321.267 (1)(e) or 321.415 (5).
(b) 'Section 1231 gain' has the meaning given that term in
section 1231 of the Internal Revenue Code.
(2) Notwithstanding ORS 316.037, taxable income that consists
of net long-term capital gain shall be subject to tax under this
chapter at a rate of four percent if all of the following
conditions apply:
(a) The gain is:
(A) Derived from the sale or exchange of capital assets
consisting of ownership interests in a corporation, partnership
or other entity in which, prior to the sale or exchange, the
taxpayer owned at least a 10 percent ownership interest; or
(B) Section 1231 gain.
(b) The property that was sold or exchanged consisted of:
(A) Ownership interests in a corporation, partnership or other
entity that is engaged in the trade or business of farming; or
(B) Property that is predominantly used in the trade or
business of farming.
(c) The sale or exchange is to a person who is not related to
the taxpayer under section 267 of the Internal Revenue Code.
(d) The sale or exchange constitutes a substantially complete
termination of all of the taxpayer's ownership interests in a
trade or business that is engaged in farming or a substantially
complete termination of all of the taxpayer's ownership interests
in property that is employed in the trade or business of farming.
Ownership of a farm dwelling or farm homesite does not constitute
ownership of property employed in the trade or business of
farming.
(3) If the taxpayer has net long-term capital gain derived in
part from the sale or exchange of property described in
subsection (2)(b) of this section and in part from the sale or
exchange of all other property, the net long-term capital gain
that is subject to tax under this section shall be determined as
follows:
(a) Compute the net long-term capital gain derived from all
property described in subsection (2)(b) of this section that was
sold or exchanged during the tax year.
(b) Compute the net capital gain or loss from the sale or
exchange of all other property during the tax year.
(c) If the amount determined under paragraph (b) of this
subsection is a net capital gain, the gain that is subject to tax
under subsection (2) of this section shall be the amount
determined under paragraph (a) of this subsection.
(d) If the amount determined under paragraph (b) of this
subsection is a net capital loss, the gain that is subject to tax
under subsection (2) of this section shall be the amount
determined under paragraph (a) of this subsection minus the
amount determined under paragraph (b) of this subsection. { +
(4) This section does not apply to tax years beginning on or
after January 1, 2006. + }
SECTION 7e. { + ORS 316.045 is repealed on January 2,
2008. + }
SECTION 7f. { + Nothing in the repeal of ORS 316.045 by
section 7e of this 2003 Act affects the treatment of net
long-term capital gain that meets the requirements of ORS 316.045
in a tax year beginning before January 1, 2006. + }
SECTION 7g. { + Section 7b of this 2003 Act is added to and
made a part of ORS chapter 316. + }
{ +
INHERITANCE TAX ELIMINATION + }
SECTION 8. { + Sections 9 and 10 of this 2003 Act are added to
and made a part of ORS 118.005 to 118.840. + }
SECTION 9. { + Any term used in ORS 118.005 to 118.840 has the
same meaning as when used in a comparable context in the laws of
the federal Internal Revenue Code relating to federal estate
taxes, unless a different meaning is clearly required or the term
is specifically defined in ORS 118.005 to 118.840. Any reference
in ORS 118.005 to 118.840 to the Internal Revenue Code means the
federal Internal Revenue Code as amended and in effect on
December 31, 2000, except where the Legislative Assembly has
specifically provided otherwise. + }
SECTION 10. { + Notwithstanding section 9 of this 2003 Act,
the taxes imposed under ORS 118.005 to 118.840 shall be
determined by applying a unified credit under section 2010 of the
Internal Revenue Code in which the applicable exclusion amount
does not exceed the lesser of:
(1) The amount set forth in section 2010(c) of the Internal
Revenue Code; or
(2) $1.5 million. + }
SECTION 11. { + (1) Section 9 of this 2003 Act applies to
decedents dying on or after January 1, 1998, and before January
1, 2002, and to inheritance taxes imposed on transfers of
property occurring due to decedents dying on or after January 1,
1998, and before January 1, 2002.
(2) Section 10 of this 2003 Act applies to decedents dying on
or after January 1, 1998, and to inheritance taxes imposed on
transfers of property occurring due to decedents dying on or
after January 1, 1998.
(3) Except where the Legislative Assembly has provided
otherwise, the effective and applicable dates, and the
exceptions, special rules and coordination with the Internal
Revenue Code, as amended, relative to those dates, contained in
the Taxpayer Relief Act of 1997 (P.L. 105-34) and the Internal
Revenue Service Restructuring and Reform Act of 1998 (P.L.
105-206), apply for purposes of ORS 118.005 to 118.840, to the
extent they can be made applicable, in the same manner as they
are applied under the Internal Revenue Code and related federal
law. + }
SECTION 12. Section 9 of this 2003 Act is amended to read:
{ + Sec. 9. + }Any term used in ORS 118.005 to 118.840 has
the same meaning as when used in a comparable context in the laws
of the federal Internal Revenue Code relating to federal estate
taxes, unless a different meaning is clearly required or the term
is specifically defined in ORS 118.005 to 118.840. Any reference
in ORS 118.005 to 118.840 to the Internal Revenue Code means the
federal Internal Revenue Code as amended and in effect on
December 31, { - 2000 - } { + 2002 + }, except where the
Legislative Assembly has specifically provided otherwise.
SECTION 13. ORS 118.010 is amended to read:
118.010. (1) A tax is imposed upon a transfer of property and
any interest therein, within the jurisdiction of the state,
whether belonging to the inhabitants of this state or not, which
passes to or vests in any person or persons, or any body or
bodies politic or corporate, in trust or otherwise, or by reason
whereof any person or body politic or corporate shall become
beneficially entitled, in possession or expectation, to any
property or interest therein or income thereof.
(2) The tax imposed under this section shall equal { + :
(a) In the case of decedents dying before January 1, 2002, + }
the maximum amount of the state death tax credit allowable
against the federal estate tax under section 2011 of the Internal
Revenue Code.
{ + (b) In the case of decedents dying on or after January 1,
2002, and before January 1, 2003, 1.33 times the maximum amount
of the state death tax credit allowable against the federal
estate tax under section 2011 of the Internal Revenue Code.
(c) In the case of decedents dying on or after January 1, 2003,
and before January 1, 2004, two times the maximum amount of the
state death tax credit allowable against the federal estate tax
under section 2011 of the Internal Revenue Code.
(d) In the case of decedents dying on or after January 1, 2004,
and before January 1, 2005, four times the maximum amount of the
state death tax credit allowable against the federal estate tax
under section 2011 of the Internal Revenue Code.
(3) In the case of decedents dying on or after January 1, 2005,
a tax may not be imposed under this section. + }
{ - (3) - } { + (4) + } In the case of a resident decedent
owning property outside of the jurisdiction of this state at the
time of death, the tax imposed under this section shall be the
amount determined under subsection (2) of this section multiplied
by a ratio. The numerator of the ratio shall be the sum of the
appraised value of the decedent's real property located in
Oregon, tangible personal property located in Oregon and
intangible personal property located both in and outside of
Oregon. The denominator of the ratio shall be the total appraised
value of the decedent's gross estate.
{ - (4)(a) - } { + (5)(a) + } In the case of a nonresident
decedent owning property within the jurisdiction of this state at
the time of death, the tax imposed under this section shall be
the amount determined under subsection (2) of this section
multiplied by a ratio. The numerator of the ratio shall be the
sum of the appraised value of the decedent's real property
located in Oregon, tangible personal property located in Oregon
and intangible personal property located in Oregon. The
denominator shall be the total appraised value of the decedent's
gross estate.
(b) Intangible personal property of a nonresident decedent
shall not be included in the numerator of the ratio used to
determine the tax under this subsection if a similar exemption is
made by the laws of the state or country of the decedent's
residence in favor of residents of this state.
{ - (5) - } { + (6) + } If federal estate tax credits other
than the state death tax credit result in no federal estate tax,
no tax shall be imposed under this section.
{ - (6) - } { + (7) + } Payment, in whole or in part, of
inheritance and estate taxes from funds of an estate or trust on
any benefit subject to tax under ORS 118.005 to 118.840 is not to
be considered as a further taxable benefit, when such payment is
directed by decedent's will or by a trust agreement.
SECTION 14. { + (1) Section 9 of this 2003 Act, as amended by
section 12 of this 2003 Act, and the amendments to ORS 118.010 by
section 13 of this 2003 Act, apply to decedents dying on or after
January 1, 2002, and to inheritance taxes imposed on transfers of
property occurring due to decedents dying on or after January 1,
2002.
(2) Except where the Legislative Assembly has provided
otherwise, the effective and applicable dates, and the
exceptions, special rules and coordination with the Internal
Revenue Code, as amended, relative to those dates, contained in
the Economic Growth and Tax Relief Reconciliation Act of 2001
(P.L. 107-16), apply for purposes of ORS 118.005 to 118.840, to
the extent they can be made applicable, in the same manner as
they are applied under the Internal Revenue Code and related
federal law. + }
{ +
MALT BEVERAGE AND CIDER TAXES + }
SECTION 15. 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 importing distributor of malt
beverages shall be taxed at the rate of $16.45 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.
{ - (5) - } { + (6) + } 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) - } { + (7) + } 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 16. 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 under subsection (1)
of this section, a manufacturer or importing distributor of cider
shall be taxed at the rate of $16.45 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 17. 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 18. ORS 473.050 is amended to read:
473.050. In computing any privilege tax imposed by ORS 473.030,
473.035 or 473.040:
(1) No malt beverage, cider or wine is subject to tax more than
once.
(2) No tax shall be levied, collected or imposed upon any malt
beverage, cider or wine sold to the Oregon Liquor Control
Commission or exported from the state.
(3) No tax shall be levied, collected or imposed upon any malt
beverage given away and consumed on the licensed premises of a
brewery licensee, or sold to or by a voluntary nonincorporated
organization of army, air corps or navy personnel operating a
place for the sale of goods pursuant to regulations promulgated
by the proper authority of each such service.
(4) No tax shall be levied, collected or imposed upon any malt
beverage, cider or wine determined by the commission to be unfit
for human consumption or unsalable.
(5) No tax shall be levied, collected or imposed upon the first
40,000 gallons, or 151,000 liters, of wine sold annually in
Oregon from a United States manufacturer of wines producing less
than 100,000 gallons, or 379,000 liters, annually.
{ + (6)(a) No tax shall be levied, collected or imposed upon
the first 20,000 barrels of malt beverages sold annually in
Oregon from a United States manufacturer producing less than
50,000 barrels annually.
(b) For purposes of this subsection, a barrel equals 31
gallons. + }
SECTION 19. 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 { + :
(a) Transfer moneys raised under ORS 473.030 (2) and 473.035
(2) to the General Fund, as miscellaneous receipts available for
general governmental purposes; and
(b) + } Transfer the money remaining in the suspense account to
the Oregon Liquor Control Commission Account in the General Fund.
(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 20. 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 21. 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 22. { + The amendments to ORS 471.805, 471.810,
473.030, 473.035, 473.047, 473.050 and 576.765 by sections 15 to
21 of this 2003 Act apply to malt beverage and cider tax
reporting periods beginning on or after January 1, 2004. + }
{ +
UNIFORM SALES AND USE TAX + }
{ +
ADMINISTRATION ACT + }
SECTION 23. { + Title. Sections 23 to 31 of this 2003 Act
shall be known and may be cited as the Uniform Sales and Use Tax
Administration Act. + }
SECTION 24. { + Definitions. As used in sections 23 to 31 of
this 2003 Act:
(1) 'Agreement' means the Streamlined Sales and Use Tax
Agreement.
(2) 'Certified automated system' means software certified
jointly by the states that are signatories to the agreement to
calculate the tax imposed by each jurisdiction on a transaction,
determine the amount of tax to remit to the appropriate state and
maintain a record of the transaction.
(3) 'Certified service provider' means an agent certified
jointly by the states that are signatories to the agreement to
perform all of the seller's sales tax functions.
(4) 'Person' means an individual, trust, estate, fiduciary,
partnership, limited liability company, limited liability
partnership, corporation or any other legal entity.
(5) 'Sales Tax' means the tax levied under sections 59 to 72 of
this 2003 Act.
(6) 'Seller' means any person making sales, leases or rentals
of personal property or services.
(7) 'State' means any state of the United States and the
District of Columbia.
(8) 'Use Tax' means the tax levied under sections 73 to 82 of
this 2003 Act. + }
SECTION 25. { + Findings and declarations. The Legislative
Assembly finds and declares that entering into the Streamlined
Sales and Use Tax Agreement with one or more states to simplify
and modernize sales and use tax administration will substantially
reduce the burden of tax compliance for all sellers and for all
types of commerce. + }
SECTION 26. { + Authority to enter agreement. (1) The
Department of Revenue is authorized and directed to enter into
the Streamlined Sales and Use Tax Agreement with one or more
states to simplify and modernize sales and use tax administration
in order to substantially reduce the burden of tax compliance for
all sellers and for all types of commerce. In furtherance of the
agreement, the department is authorized to act jointly with other
states that are members of the agreement to establish standards
for certification of a certified service provider and certified
automated system, and to establish performance standards for
multistate sellers.
(2) The department is further authorized to take other actions
reasonably required to implement the provisions set forth in
sections 23 to 31 of this 2003 Act. Other actions authorized by
this section include, but are not limited to, the adoption of
rules and the joint procurement, with other member states, of
goods and services in furtherance of the agreement.
(3) The department or the designee of the department is
authorized to represent this state before the other states that
are signatories to the agreement. + }
SECTION 27. { + Relationship to state law. No provision of
the Streamlined Sales and Use Tax Agreement authorized by
sections 23 to 31 of this 2003 Act in whole or part invalidates
or amends any provision of the law of this state. Adoption of the
agreement by this state does not amend or modify any law of this
state. Implementation of any condition of the agreement in this
state, whether adopted before, at the time of or after membership
of this state in the agreement, must be by the action of this
state. + }
SECTION 28. { + Agreement requirements. The Department of
Revenue may not enter into the Streamlined Sales and Use Tax
Agreement unless the agreement requires each signatory state to
abide by all of the following requirements:
(1) The agreement must set restrictions to achieve more uniform
state rates through the following:
(a) Limiting the number of state rates;
(b) Eliminating maximums on the amount of state tax that is due
on a transaction; and
(c) Eliminating thresholds on the application of state tax.
(2) The agreement must establish uniform standards for the
following:
(a) The sourcing of transactions to taxing jurisdictions;
(b) The administration of exempt sales;
(c) The allowances a seller can take for bad debts; and
(d) Sales and use tax returns and remittances.
(3) The agreement must require states to develop and adopt
uniform definitions of sales and use tax terms. The definitions
must enable a state to preserve its ability to make policy
choices not inconsistent with the uniform definitions.
(4) The agreement must provide a central, electronic
registration system that allows a seller to register to collect
and remit sales and use taxes for all signatory states.
(5) The agreement must provide that registration with the
central registration system and the collection of sales and use
taxes in the signatory states will not be used as a factor in
determining whether the seller has nexus with a state for any
tax.
(6) The agreement must provide for reduction of the burdens of
complying with local sales and use taxes through the following:
(a) Eliminating variances between the state and local tax
bases;
(b) Requiring states to administer any sales and use taxes
levied by local jurisdictions within the state so that sellers
collecting and remitting these taxes will not have to register or
file returns with, remit funds to or be subject to independent
audits from local taxing jurisdictions;
(c) Restricting the frequency of changes in the local sales and
use tax rates and setting effective dates for the application of
local jurisdictional boundary changes to local sales and use
taxes; and
(d) Providing notice of changes in local sales and use tax
rates and of changes in the boundaries of local taxing
jurisdictions.
(7) The agreement must outline any monetary allowances that are
to be provided by the states to sellers or certified service
providers.
(8) The agreement must require each state to certify compliance
with the terms of the agreement prior to joining and to maintain
compliance, under the laws of the member state, with all
provisions of the agreement while a member.
(9) The agreement must require each state to adopt a uniform
policy for certified service providers that protects the privacy
of consumers and maintains the confidentiality of tax
information.
(10) The agreement must provide for the appointment of an
advisory council of private sector representatives and an
advisory council of nonmember state representatives to consult
with in the administration of the agreement. + }
SECTION 29. { + Cooperating states. The Streamlined Sales and
Use Tax Agreement authorized by sections 23 to 31 of this 2003
Act is to be an accord among individual states in furtherance of
their governmental functions. The agreement shall provide a
mechanism among the member states to establish and maintain a
cooperative, simplified system for the application and
administration of sales and use taxes under the laws of each
member state. + }
SECTION 30. { + Effect of agreement. (1) The Streamlined
Sales and Use Tax Agreement authorized by sections 23 to 31 of
this 2003 Act binds and inures only to the benefit of this state
and the other member states. No person, other than a member
state, is an intended beneficiary of the agreement. Any benefit
to a person other than a state is established by the law of this
state and the other member states and not by the terms of the
agreement.
(2) A person may not have any cause of action or defense under
the agreement or by virtue of the approval by this state of the
agreement. A person may not challenge, in any action brought
under any provision of law, any action or inaction by any
department, agency or other instrumentality of this state, or any
political subdivision of this state, on the ground that the
action or inaction is inconsistent with the agreement.
(3) No law of this state, or the application thereof, may be
declared invalid as to any person or circumstance on the ground
that the provision or application is inconsistent with the
agreement. + }
SECTION 31. { + Seller and third-party liability. (1) A
certified service provider is the agent of a seller, with whom
the certified service provider has contracted, for the collection
and remittance of sales and use taxes pursuant to the Streamlined
Sales and Use Tax Agreement authorized by sections 23 to 31 of
this 2003 Act. As the seller's agent, the certified service
provider is liable for sales and use tax due each member state on
all sales transactions the certified service provider processes
for the seller except as set out in this section.
(2)(a) A seller that contracts with a certified service
provider is not liable to this state for sales or use tax due on
transactions processed by the certified service provider unless
the seller misrepresented the type of items the seller sells or
committed fraud. In the absence of probable cause to believe that
the seller has committed fraud or made a material
misrepresentation, the seller is not subject to audit on
transactions processed by a certified service provider. A seller
is subject to audit for transactions not processed by a certified
service provider.
(b) Member states acting jointly may perform a system check of
the seller and review the seller's procedures to determine if a
certified service provider's system is functioning properly and
the extent to which the seller's transactions are being processed
by the certified service provider.
(3) A person that provides a certified automated system is
responsible for the proper functioning of that system and is
liable to the state for underpayments of tax attributable to
errors in the functioning of the certified automated system. A
seller that uses a certified automated system remains responsible
and is liable to the state for reporting and remitting tax.
(4) A seller that has a proprietary system for determining the
amount of tax due on transactions and has signed an agreement
establishing a performance standard for that system is liable for
the failure of the system to meet the performance standard. + }
{ +
SALES AND USE TAX + }
SECTION 32. { + Construction. Unless the context requires
otherwise, the definitions in sections 33 to 58 of this 2003 Act
govern the construction of sections 32 to 157, 161 to 165, 170,
172 to 184 and 189 of this 2003 Act. + }
{ +
DEFINITIONS + }
SECTION 33. { + Business. 'Business' includes any activity
engaged in by any person or caused to be engaged in by a person
with the object of gain, benefit or advantage, either direct or
indirect. + }
SECTION 34. { + Department; director. 'Department' means the
Department of Revenue, and 'director' means the Director of the
Department of Revenue. + }
SECTION 35. { + Gross receipts. (1) 'Gross receipts' means
the total amount of the sale or lease or rental price, as the
case may be, of the retail sales of retailers, valued in money,
whether received in money or otherwise, without any deduction on
account of any of the following:
(a) The cost of the property sold, unless subsection (6) of
this section applies.
(b) The cost of the materials used, labor or service cost,
interest paid, losses or any other expense.
(c) The cost of transportation of the property, except as
otherwise excluded under this section.
(2) The total amount of the sale or lease or rental price
includes all of the following:
(a) Any services that are a part of the sale.
(b) All receipts, cash, credits and property of any kind.
(c) Any amount for which credit is allowed by the seller to the
purchaser.
(3) 'Gross receipts' does not include any of the following:
(a) Cash discounts allowed and taken on sales.
(b) The sale price of property returned by a customer, when the
full sale price is refunded either in cash or credit, but this
exclusion does not apply in any instance when the customer, in
order to obtain the refund, is required to purchase other
property at a price greater than the amount charged for the
property that is returned. For purposes of this paragraph, refund
or credit of the entire amount shall be deemed to be given when
the purchase price less rehandling and restocking costs is
refunded or credited to the customer. The amount withheld for
rehandling and restocking costs may be a percentage of the sales
price determined by the average costs of rehandling and
restocking returned merchandise during the previous accounting
cycle.
(c) The price received for labor or services used in installing
or applying the property sold.
(d) The amount of any tax, not including any manufacturers' or
importers' excise tax, imposed by the United States upon or with
respect to retail sales, whether imposed upon the retailer or the
consumer.
(e) The amount charged for finance charges, carrying charges,
service charges, time-price differential or interest on deferred
payment sales, if such charges are not used as a means of
avoiding imposition of the sales tax upon the actual sale price
of the tangible personal property.
(f) Separately stated charges for transportation from the
retailer's place of business or other point from which shipment
is made directly to the purchaser, but the exclusion shall not
exceed a reasonable charge for transportation by facilities of
the retailer or the cost to the retailer of transportation by
other than facilities of the retailer; provided, that if the
transportation is by facilities of the retailer, or the property
is sold for a delivered price, this exclusion shall be applicable
solely with respect to transportation that occurs after the sale
of the property is made to the purchaser.
(g) Discounts allowed and taken in consideration of the
transfer of a motor vehicle or other tangible personal property
by the purchaser to the seller, commonly known as 'trade-ins,'
but only if the property 'traded-in' is of like kind to that
acquired by the purchaser. 'Trade-in' does not include property
transferred by barter or exchange, but has its common meaning of
property of like kind to that acquired in a retail sale that is
applied, in part, toward the selling price.
(4) For purposes of the sales tax:
(a) If the retailer establishes to the satisfaction of the
Department of Revenue that the sales tax has been added to the
total amount of the sale price and has not been absorbed by the
retailer, the total amount of the sale price is considered to be
the amount received exclusive of the tax imposed.
(b) If a sale is made under installment or conditional sales
contract, or in the case of other forms of sale where the payment
of the principal sum is extended over a period longer than 60
days from the date of the sale, upon authorization by and in
compliance with rules of the department, the retailer may account
for only that portion of the sale amount as has actually been
received in cash during the reporting period.
(5) For purposes of the sales tax, 'gross receipts' shall not
be construed to include gross receipts from the sale of bonds or
other evidence of indebtedness or stocks, or from the sale, lease
or rental or encumbrance of real property.
(6)(a) A retailer may deduct the cost of property sold for
purposes of this section if the retailer has:
(A) Purchased property for some other purpose than resale;
(B) Reimbursed the vendor for tax which the vendor is required
to pay to this state or has paid the use tax with respect to the
property; and
(C) Resold the property prior to making any use of the property
other than retention, demonstration or display while holding the
property for sale in the regular course of business.
(b) If the deduction is taken by the retailer, no refund or
credit shall be allowed to the vendor of the retailer with
respect to the sale of the property. + }
SECTION 36. { + Gross receipts; consumer cooperatives. (1)
Notwithstanding section 35 of this 2003 Act, 'gross receipts '
from the sale of tangible personal property by consumer
cooperatives, as defined in subsection (2) of this section, shall
not include the value of initial or periodic membership fees and
the value of labor performed in lieu of, or as part of, monthly
membership fees; provided, the exclusion authorized by this
section shall not be interpreted to permit consumer cooperatives
to exclude from gross receipts the cost of the property sold.
(2) As used in this section, 'consumer cooperative' means a
corporation or group of persons composed of ultimate producers or
consumers, or both, organized for the purpose of conducting any
lawful business primarily for the mutual benefit of its
shareholders who may be natural or legal persons, and the
earnings, savings or benefits of which are used for the general
welfare of the shareholders or patrons or are distributed in the
form of cash, stock, evidences of indebtedness, goods or
services, proportionately and equitably among the persons for
which it does business upon the basis of the amount of their
transactions or participation in production, or both. However,
any such corporation may pay out of its net surplus earnings,
savings or benefits no more than five percent interest upon its
capital stock. + }
SECTION 37. { + Factory-built housing. (1) For the purposes
of the Sales and Use Tax Law, gross receipts from the sale of
factory-built housing, and the sales prices of factory-built
housing, sold or stored, used or otherwise consumed in this state
shall be 40 percent of the sales prices of the factory-built
housing to the consumer.
(2) For purposes of this section, 'factory-built housing '
includes:
(a) A residential building, dwelling unit or an individual
dwelling room or combination of rooms thereof, or building
component, assembly or system manufactured in such a manner that
all concealed parts or processes of manufacture cannot be
inspected before installation at the building site without
disassembly, damage or destruction of the part, including units
designed for use as part of an institution for resident or
patient care, that is either wholly manufactured or is in
substantial part manufactured at an off-site location to be
wholly or partially assembled on-site.
(b) Modular housing, which is a three-dimensional box or
cube-shaped structure or structures making up one or more rooms
of a residential building.
(c) Sectionalized housing, which generally consists of two
modules that form a total living unit.
(d) Modular, utility or wet cores, which are three-dimensional
habitable rooms or modules and which are generally composed of a
kitchen or a bathroom or bathrooms.
(3) For purposes of this section, 'factory-built housing ' does
not include:
(a) A manufactured structure as defined in ORS 801.333, or a
floating home as defined in ORS 830.700.
(b) Precut housing packages where more than 50 percent of the
package consists of precut lumber only.
(c) Panelized construction such as walls or components that may
become one or more rooms of a building, unless a complete housing
package is provided by the builder or manufacturer, such as by
providing wall panels, floors and a roof that will form a
complete housing structure.
(d) Porches or awnings that are not purchased as a part of the
original housing package.
(4) If a purchaser certifies in writing to a retailer that the
factory-built housing purchased will be consumed in a manner or
for a purpose entitling the retailer to exclude 60 percent of the
gross receipts or sales price from the measure of tax, and uses
the property in some other manner or for some other purpose, the
purchaser shall be liable for payment of tax measured by 60
percent of the sales price. + }
SECTION 38. { + Manufactured structures or floating homes
installed as residences subject to property tax. (1) For the
purposes of the Sales and Use Tax Law, gross receipts from the
sale of a new manufactured structure or a new floating home and
the sales price of a new manufactured structure or a new floating
home sold, leased or rented or stored, used or otherwise consumed
in this state shall be 75 percent of the sales price of the
manufactured structure or floating home to the retailer, if such
manufactured structure or floating home is sold by the retailer
to the purchaser for installation or occupancy as a residence and
is thereafter subject to property taxation. The retailer shall be
considered to be the consumer for purposes of the Sales and Use
Tax Law if the sale by the retailer would otherwise have been
subject to sales tax and if the retailer is not also the
manufacturer of the manufactured structure or floating home. If
the retailer of the manufactured structure or floating home is
the manufacturer, tax shall be measured by an amount equal to 75
percent of the sales price at which a similar manufactured
structure or floating home ready for installation or occupancy
would be sold by the manufacturer to a retailer-consumer in this
state.
(2) Notwithstanding any other provision of the Sales and Use
Tax Law, a retailer may give a resale certificate for the
purchase by the retailer of such a manufactured structure or
floating home and shall report the gross receipts or sales price
from such purchase with the return for the period during which
the manufactured structure or floating home is sold to the
purchaser for installation or occupancy as a residence.
(3) For the purpose of this section:
(a) 'Manufactured structure' has the meaning given that term in
ORS 801.333.
(b) 'Floating home' has the meaning given that term in ORS
830.700.
(4) If a purchaser certifies in writing to a retailer that the
manufactured structure or floating home purchased will be
consumed in a manner or for a purpose entitling the retailer to
exclude 25 percent of the gross receipts or sales price to the
retailer from the measure of tax, and uses the property in some
other manner or for some other purpose that would not be subject
to any other exclusion or exemption under the Sales and Use Tax
Law, the purchaser shall be liable for payment of tax measured by
the amount of the sales price to the purchaser less an amount
equal to 75 percent of the gross receipts or sales price of the
manufactured structure or floating home to the retailer. + }
SECTION 39. { + In this state. 'In this state' or 'within this
state' means within the exterior limits of the State of Oregon
and includes all territory within these limits owned by or ceded
to the United States of America. + }
SECTION 40. { + Lease. 'Lease' includes rental, hire and
license. 'Lease' does not include a use of tangible personal
property for a period of less than one day for a charge of less
than $20 when the privilege to use the property is restricted to
use thereof on the premises or at a business location of the
grantor of the privilege. + }
SECTION 41. { + Motor vehicle or vehicle. (1) 'Motor vehicle '
means a vehicle as defined in ORS 801.360.
(2) 'Vehicle' has the meaning given that term in ORS
801.590. + }
SECTION 42. { + Nonresident. (1) 'Nonresident' means an
individual who is not a resident of this state.
(2) 'Resident' means:
(a) An individual who is domiciled in this state, unless the
individual maintains no permanent place of abode in this state,
does maintain a permanent place of abode elsewhere and spends in
the aggregate not more than 30 days in the tax year in this
state; or
(b) An individual who is not domiciled in this state but
maintains a permanent place of abode in this state and spends in
the aggregate more than 200 days of the tax year in this state,
unless the individual proves to the satisfaction of the
Department of Revenue that the individual's presence in this
state is only for a temporary or transitory purpose. + }
SECTION 43. { + Occasional sale. 'Occasional sale' includes:
(1) A sale of property not held or used by a seller in the
course of activities for which the seller is required to hold a
seller's permit or permits or would be required to hold a
seller's permit or permits if the activities were conducted in
this state, but only if such sale is not one of a series of sales
sufficient in number, scope and character to constitute an
activity for which the seller is required to hold a seller's
permit or would be required to hold a seller's permit if the
activity were conducted in this state; and
(2) Any transfer of 80 percent or more of the tangible personal
property, in terms of its selling price, held or used by a person
in the course of an activity requiring the holding of a seller's
permit if, after such transfer, the real or ultimate ownership of
such property is substantially similar to that which existed
before such transfer. For the purposes of this subsection,
stockholders, bondholders, partners or other persons holding an
interest in a corporation or other entity are regarded as having
the 'real or ultimate ownership' of the property of such
corporation or other entity. + }
SECTION 44. { + Person. 'Person' includes any individual,
firm, copartnership, joint venture, association, social club,
society, fraternal organization, corporation, cooperative,
estate, trust, business trust, receiver, assignee for the benefit
of creditors, trustee, trustee in bankruptcy, syndicate, the
United States or any instrumentality of the United States, this
state, any county, city, municipal corporation, district or
political subdivision of this state or any other group or
combination acting as a unit. + }
SECTION 45. { + Place of sale or purchase. 'The place of the
sale or purchase of tangible personal property' means the place
where the property is physically located at the time the act
constituting the sale or purchase, as defined in the Sales and
Use Tax Law, takes place. + }
SECTION 46. { + Purchase; continuing purchase. (1) 'Purchase
' means and includes:
(a) Any transfer of title or possession, exchange or barter,
conditional or otherwise, in any manner or by any means
whatsoever, of tangible personal property for a
consideration. 'Transfer of possession' includes only
transactions found by the Department of Revenue to be in lieu of
a transfer of title, exchange or barter.
(b) When performed outside this state or when the customer
gives a resale certificate pursuant to sections 72, 81 (1) and 83
to 88 of this 2003 Act, the producing, fabricating, processing,
printing or imprinting of tangible personal property for a
consideration for consumers who furnish either directly or
indirectly the materials used in the producing, fabricating,
processing, printing or imprinting.
(c) A transaction whereby the possession of property is
transferred but the seller retains the title as security for the
payment of the price.
(d) A transfer for a consideration of tangible personal
property that has been produced, fabricated or printed to the
special order of the customer, or of any publication.
(e) Any lease of tangible personal property in any manner or by
any means whatsoever, for a consideration, except a lease of:
(A) Motion pictures, including television, films and tapes.
(B) Linen supplies and similar articles when an essential part
of the lease agreement is the furnishing of the recurring service
of laundering or cleaning the articles.
(C) Household furnishings with a lease of the living quarters
in which they are to be used.
(D) Tangible personal property leased in substantially the same
form as acquired by the lessor or leased in substantially the
same form as acquired by a transferor, as to which the lessor or
transferor has paid sales tax reimbursement or has paid use tax
measured by the purchase price of the property. For purposes of
this subparagraph, 'transferor' shall mean the following:
(i) A person from whom the lessor acquired the property in a
transaction described in section 43 (2) of this 2003 Act.
(ii) A decedent from whom the lessor acquired the property by
will or the laws of intestate succession.
(E) A manufactured structure as defined in ORS 801.333, or a
floating home as defined in ORS 830.700.
(2) Subsection (1)(e)(A) and (D) of this section and section 86
of this 2003 Act do not apply to rentals or leases of
videocassettes, videotapes and videodiscs for private use under
which the lessee or renter does not obtain or acquire the right
to license, broadcast, exhibit or reproduce the videocassette,
videotape or videodisc.
(3) The possession of tangible personal property by a lessee,
or by another person at the direction of the lessee, is a
continuing purchase for use in this state by the lessee with
respect to any period of time the leased property is situated in
this state, irrespective of the time or place of delivery of the
property to the lessee or such other person. + }
SECTION 47. { + Purchase price; sales price. (1) 'Purchase
price' or 'sales price' means the total amount for which tangible
personal property is sold or leased or rented, as the case may
be, valued in money, whether paid in money or otherwise, without
any deduction on account of any of the following:
(a) The cost of the property sold.
(b) The cost of materials used, labor or service cost, interest
charged, losses or any other expenses.
(c) The cost of transportation of the property, except as
otherwise excluded under this section.
(2) The total amount for which the property is sold or leased
or rented includes all of the following:
(a) Any services that are a part of the sale.
(b) Any amount for which credit is given to the purchaser by
the seller.
(3) 'Sales price' does not include any of the following:
(a) Cash discounts allowed and taken on sales.
(b) The amount charged for property returned by a customer when
that entire amount is refunded either in cash or credit, but this
exclusion does not apply in any instance when the customer, in
order to obtain the refund, is required to purchase other
property at a price greater than the amount charged for the
property that is returned. For purposes of this paragraph, refund
or credit of the entire amount shall be deemed to be given when
the purchase price less rehandling and restocking costs is
refunded or credited to the customer. The amount withheld for
rehandling and restocking costs may be a percentage of the sales
price determined by the average cost of rehandling and restocking
returned merchandise during the previous accounting cycle.
(c) The amount charged for labor or services rendered in
installing or applying the property sold.
(d) The amount of any tax, not including any manufacturers' or
importers' excise tax, imposed by the United States upon or with
respect to retail sales, whether imposed upon the retailer or the
consumer.
(e) The amount charged for finance charges, carrying charges,
service charges, time-price differential or interest on deferred
payment sales, if such charges are not used as a means of
avoiding imposition of the use tax upon the actual purchase price
of the tangible personal property.
(f) Separately stated charges for transportation from the
retailer's place of business or other point from which shipment
is made directly to the purchaser, but the exclusion shall not
exceed a reasonable charge for transportation by facilities of
the retailer or the cost to the retailer of transportation by
other than facilities of the retailer; provided, that if the
transportation is by facilities of the retailer, or the property
is sold for a delivered price, this exclusion shall be applicable
solely with respect to transportation that occurs after the
purchase of the property is made.
(g) Discounts allowed and taken in consideration of the
transfer of a motor vehicle or other tangible personal property
by the purchaser to the seller, commonly known as 'trade-ins,'
but only if the property 'traded-in' is of like kind to that
acquired by the purchaser. 'Trade-in' does not include property
transferred by barter or exchange, but has its common meaning of
property of like kind to that acquired in a retail sale that is
applied, in part, toward the selling price.
(4) For purposes of the use tax, 'purchase price' shall not be
construed to include receipts from the sale of bonds or other
evidence of indebtedness, or stocks, or from the sale, lease or
rental or encumbrance of real property. + }
SECTION 48. { + Purchase price or sales price; consumer
cooperatives. (1) Notwithstanding section 47 of this 2003 Act, '
purchase price' or 'sales price' from the sale of tangible
personal property by consumer cooperatives, as defined in
subsection (2) of this section, shall not include the value of
initial or periodic membership fees and the value of labor
performed in lieu of, or as part of, monthly membership fees;
provided, the exclusion authorized by this section shall not be
interpreted to permit consumer cooperatives to exclude from '
purchase price' or 'sales price' the cost of the property sold.
(2) As used in this section, 'consumer cooperative' means a
corporation or group of persons composed of ultimate producers or
consumers, or both, organized for the purpose of conducting any
lawful business primarily for the mutual benefit of its
shareholders who may be natural or legal persons, and the
earnings, savings or benefits of which are used for the general
welfare of the shareholders or patrons or are distributed in the
form of cash, stock, evidences of indebtedness, goods or
services, proportionately and equitably among the persons for
which it does business upon the basis of the amount of their
transactions or participation in production, or both. However,
any such corporation may pay out of its net surplus earnings,
savings or benefits, no more than five percent interest upon its
capital stock. + }
SECTION 49. { + Retail sale; sales to United States
contractors and other contractors. (1) A 'retail sale' or 'sale
at retail ' means a sale for any purpose other than resale in the
regular course of business in the form of tangible personal
property.
(2) The delivery in this state of tangible personal property by
an owner or former owner thereof or by a factor or agent of such
owner, former owner or factor, if the delivery is to a consumer
or person for redelivery to a consumer, pursuant to a retail sale
made by a retailer not engaged in business in this state, is a
retail sale in this state by the person making the delivery. The
person shall include the retail selling price of the property in
the gross receipts of the person. + }
SECTION 50. { + Retailer; sales at auction; flags. (1) '
Retailer' includes:
(a) Every seller who makes any retail sale or sales of tangible
personal property, and every person engaged in the business of
making retail sales at auction of tangible personal property
owned by the person or others.
(b) Every person engaged in the business of making sales for
storage, use or other consumption or in the business of making
sales at auction of tangible personal property owned by the
person or others for storage, use or other consumption.
(c) Any person conducting a race meet under ORS chapter 462,
with respect to horses that are claimed during such meet.
(d) Every individual, firm, copartnership, joint venture,
trust, business trust, syndicate, association or corporation
making more than two retail sales of tangible personal property
during any 12-month period, including sales made in the capacity
of assignee for the benefit of creditors, or receiver or trustee
in bankruptcy, in the person's individual, firm, copartnership,
joint venture, trust, business trust, syndicate, associate or
corporate capacity.
(2) If the Department of Revenue determines that it is
necessary for the efficient administration of the Sales and Use
Tax Law to regard any salespersons, representatives, peddlers or
canvassers as the agents of the dealers, distributors,
supervisors or employers under whom they operate or from whom
they obtain the tangible personal property sold by them,
irrespective of whether they are making sales on their own behalf
or on behalf of such dealers, distributors, supervisors or
employers, the department may so regard them and may regard the
dealers, distributors, supervisors or employers as retailers for
purposes of the Sales and Use Tax Law.
(3) Any nonprofit veterans' organization is a consumer of, and
shall not be considered a retailer within the Sales and Use Tax
Law with respect to, flags of the United States of America that
it sells, where the profits are used solely and exclusively in
furtherance of the purposes of the nonprofit organization. + }
SECTION 51. { + Sale. (1) 'Sale' means and includes:
(a) Any transfer of title or possession, exchange or barter,
conditional or otherwise, in any manner or by any means
whatsoever, of tangible personal property for a valuable
consideration. 'Transfer of possession' includes only
transactions found by the Department of Revenue to be in lieu of
transfer of title, exchange or barter.
(b) The producing, fabricating, processing, printing or
imprinting of tangible personal property for a consideration for
consumers who furnish, either directly or indirectly, the
materials used in the producing, fabricating, processing,
printing or imprinting.
(c) The furnishing and distributing of tangible personal
property for a consideration by social clubs and fraternal
organizations to their members or others.
(d) The furnishing, preparing or serving for a consideration of
food, meals or drinks.
(e) A transaction whereby the possession of property is
transferred but the seller retains the title as security for the
payment of the price.
(f) A transfer for a consideration of the title or possession
of tangible personal property that has been produced, fabricated
or printed to the special order of the customer, or of any
publication.
(g) Any lease of tangible personal property in any manner or by
any means whatsoever, for a consideration, except a lease of:
(A) Motion pictures, including television, films and tapes.
(B) Linen supplies and similar articles when an essential part
of the lease agreement is the furnishing of the recurring service
of laundering or cleaning the articles.
(C) Household furnishings with a lease of the living quarters
in which they are to be used.
(D) Tangible personal property leased in substantially the same
form as acquired by the lessor or leased in substantially the
same form as acquired by a transferor, as to which the lessor or
transferor has paid sales tax reimbursement or has paid use tax
measured by the purchase price of the property. For purposes of
this subparagraph, 'transferor' shall mean the following:
(i) A person from whom the lessor acquired the property in a
transaction described in section 43 (2) of this 2003 Act.
(ii) A decedent from whom the lessor acquired the property by
will or the laws of intestate succession.
(E) A manufactured structure as defined in ORS 801.333, or a
floating home as defined in ORS 830.700.
(h) Any sale at an auction in respect to tangible personal
property that is sold to a successful bidder at the auction upon
an agreement or understanding at the time of the sale that the
property involved either will not be delivered to the successful
bidder or that any amount that the successful bidder may pay for
the property pursuant to the sale will be returned to the
successful bidder. The tax in such case shall be computed upon
the amount of the successful bid.
(2) Subsection (1)(g)(A) and (D) of this section and section 86
of this 2003 Act do not apply to rentals or leases of
videocassettes, videotapes and videodiscs for private use under
which the lessee or renter does not obtain or acquire the right
to license, broadcast, exhibit or reproduce the videocassette,
videotape or videodisc.
(3) The granting of possession of tangible personal property by
a lessor to a lessee, or to another person at the direction of
the lessee, is a continuing sale in this state by the lessor or
grantor for the duration of the lease with respect to any period
of time the leased property is situated in this state,
irrespective of the time or place of delivery of the property to
the lessee or such other person. + }
SECTION 52. { + Sale and purchase; custom computer programs.
(1) ' Sale' and 'purchase,' for the purposes of the Sales and Use
Tax Law, do not include the design, development, writing,
translation, fabrication, lease or transfer for a consideration
of title or possession, of a custom computer program, other than
a basic operational program, either in the form of written
procedures or in the form of storage media on which, or in which,
the program is recorded, or any required documentation or manuals
designed to facilitate the use of the custom computer program so
transferred.
(2) As used in this section:
(a) 'Basic operational program' means a computer program that
is fundamental and necessary to the functioning of a computer. A
basic operational program is that part of an operating system
including supervisors, monitors, executives and control or master
programs that consist of the control program elements of that
system. For purposes of this section, 'control program' and '
basic operational program' are interchangeable. A control
program, as opposed to a processing program, controls the
operation of a computer by managing the allocation of all system
resources, including the central processing unit, main storage,
input/output devices and processing programs. A processing
program is used to develop and implement the specific
applications that the computer is to perform. Its operation is
possible only through the facilities provided by the control
program; however, it is not in itself fundamental and necessary
to the functioning of a computer. 'Basic operational program'
does not include processing programs that consist of language
translators, including but not limited to assemblers and
compilers; service programs, including but not limited to data
set utilities, sort/merge utilities and emulators; data
management systems, also known as generalized file-processing
software; and application programs, including but not limited to
payroll, inventory control and production control. 'Basic
operational program' does not include programs or parts of
programs developed for or by a user if they were developed solely
for the solution of an individual operational problem of the
user. A 'control program,' as used in this section, includes such
functions as: selection, assignment and control of input and
output devices; loading of programs, including selection of
programs from a system resident library; handling the steps
necessary to accomplish job-to-job transition; controlling the
allocation of memory; controlling concurrent operation of
multiple programs or computers; and protecting data from being
inadvertently destroyed as a result of operator program error.
(b) 'Computer' does not include tape-controlled automatic
drilling, milling or other manufacturing machinery or equipment.
(c) 'Computer program' means the complete plan for the solution
of a problem, such as the complete sequence of automatic
data-processing equipment instructions necessary to solve a
problem and includes both systems and application programs and
subdivisions, such as assemblers, compilers, routines, generators
and utility programs.
(d) 'Custom computer program' means a computer program prepared
to the special order of the customer and includes those services
represented by separately stated charges for modifications to an
existing prewritten program that are prepared to the special
order of the customer. 'Custom computer program ' does not
include a canned or prewritten computer program that is held or
existing for general or repeated sale or lease, even if the
prewritten or canned program was initially developed on a custom
basis or for in-house use. Modification to an existing prewritten
program to meet the customer's needs is custom computer
programming only to the extent of the modification.
(e) 'Storage media' includes any media on which electronic data
may be stored. + }
SECTION 53. { + Sales tax. 'Sales tax' means the tax imposed
by sections 59 to 72 of this 2003 Act. + }
SECTION 54. { + Seller. 'Seller' includes every person
engaged in the business of selling tangible personal property of
a kind the gross receipts from the retail sale of which are
required to be included in the measure of the sales tax. For the
purposes of this section, 'tangible personal property of a kind
the gross receipts from the retail sale of which are required to
be included in the measure of the sales tax' includes all
tangible personal property of a kind the gross receipts from the
retail sale of which is, or would be, required to be included in
the measure of the sales tax if sold at retail, whether or not
the tangible personal property is ever sold at retail or is
suitable for sale at retail. + }
SECTION 55. { + Storage and use. (1) 'Storage' includes any
keeping or retention in this state for any purpose except sale in
the regular course of business or subsequent use solely outside
this state of tangible personal property purchased from a
retailer.
(2) 'Use' includes the exercise of any right or power over
tangible personal property incident to the ownership of that
property, and also includes the possession of, or the exercise of
any right or power over, tangible personal property by a lessee
under a lease, except that 'use' does not include the sale of
that property in the regular course of business.
(3) 'Storage' and 'use' do not include the keeping, retaining
or exercising of any right or power over tangible personal
property for the purpose of subsequently transporting it outside
this state for use thereafter solely outside this state, or for
the purpose of being processed, fabricated or manufactured into,
attached to or incorporated into, other tangible personal
property to be transported outside this state and thereafter used
solely outside this state. + }
SECTION 56. { + Tangible personal property. 'Tangible
personal property' means personal property that may be seen,
weighed, measured, felt or touched, or that is in any other
manner perceptible to the senses. 'Tangible personal property'
includes any leased fixtures if the lessor has a right to remove
the property upon breach or termination of the lease, unless the
lessor is also the lessor of the realty. + }
SECTION 57. { + Use tax. 'Use tax' means the tax imposed by
sections 73 to 82 of this 2003 Act. + }
SECTION 58. { + Used manufactured structure or floating home.
' Used manufactured structure' or 'used floating home' means a
manufactured structure as defined in ORS 801.333 or a floating
home as defined in ORS 830.700 that was previously sold, leased
or rented to a consumer within or without this state. + }
{ +
SALES TAX + }
SECTION 59. { + Imposition of tax; rate. In addition to all
other taxes of every kind, for the privilege of selling tangible
personal property at retail, a tax is imposed upon all retailers
at the rate of five percent of the gross receipts of any retailer
from the sale of all tangible personal property sold at retail in
this state. + }
SECTION 60. { + Reimbursement. (1) The sales tax imposed by
section 59 of this 2003 Act is a tax upon the gross receipts of
retailers. Whether a retailer may add sales tax reimbursement to
the sales price of the tangible personal property sold at retail
to a purchaser depends solely upon the terms of the agreement of
sale. It shall be presumed that the parties agreed to the
addition of sales tax reimbursement to the sales price of
tangible personal property sold at retail to a purchaser if:
(a) The agreement of sale expressly provides for such addition
of sales tax reimbursement;
(b) Sales tax reimbursement is shown on the sales check or
other proof of sale; or
(c) The retailer posts in the retailer's premises in a location
visible to purchasers, or includes on a price tag or in an
advertisement or other printed material directed to purchasers, a
notice to the effect that reimbursement for sales tax will be
added to the sales price of all items or certain items, whichever
is applicable.
(2) It shall be presumed that the property, the gross receipts
from the sale of which are subject to the sales tax, is sold at a
price that includes tax reimbursement if the retailer posts in
the premises or includes on a price tag or in an advertisement,
whichever is applicable, one of the following notices:
(a) 'All prices of taxable items include sales tax
reimbursement computed to the nearest mill. '
(b) 'The price of this item includes sales tax reimbursement
computed to the nearest mill.' + }
SECTION 61. { + Collection schedule. (1) The Department of
Revenue shall prepare a sales tax collection schedule showing the
total amount that shall be collected by the retailer from a
consumer in reimbursement of the sales tax, computed on each
sales price, from one cent to and including $100, at the rate of
five percent. The schedule shall be identical to the following
table up to the amounts specified: + }
________________________________________________________________
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
{ +
Price Tax + }
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
{ +
$ .01 to .09.........$ .00
.10 to .29.......... .01
.30 to .49.......... .02
.50 to .69.......... .03
.70 to .89.......... .04
.90 to1.09.......... .05 + }
____________________________________________________________
END OF POSSIBLE IRREGULAR TABULAR TEXT
____________________________________________________________
________________________________________________________________
{ + (2) Reimbursement on sales prices in excess of those
shown in the schedules may be computed by applying the applicable
tax rate to the sales price, rounded off to the nearest cent by
eliminating any fraction less than one-half cent and increasing
any fraction of one-half cent or more to the next higher cent.
(3) The sales tax collection schedule shall be made available
for inspection and reproduction.
(4) Each retailer who collects amounts from a consumer in
reimbursement of the sales tax shall either:
(a) Use the schedule prepared by the department or the method
provided under subsection (2) of this section in computing the
amount to be collected, based upon the sales price of the item
sold if one item is sold, and if more than one item is sold in
any one transaction, upon the sum of the sales prices of the
items sold; or
(b) If authorized under rules adopted by the department,
include in the sales price of each item an amount of
reimbursement computed to the nearest one-tenth of a cent at the
applicable tax rate and post a notice in the retailer's premises
stating that each posted or advertised price includes
reimbursement so computed. When both taxable and nontaxable items
are included in the same transaction, the requirement of
paragraph (a) of this subsection regarding computation of tax
reimbursement upon the sum of the aggregate sales prices applies
only if the purchaser requests at the time of the sale that the
computation be made in this way.
(5) Each retailer may retain from the taxes otherwise due under
the Sales and Use Tax Law, out of the remittances by the retailer
under sections 146 to 148 of this 2003 Act, an amount equal to
two percent of the tax owed by such retailer for each reporting
period. Such amounts may be retained only if the remittances were
paid when due as required by sections 146 to 148 of this 2003
Act. + }
SECTION 62. { + Vending machines. (1)(a) The Department of
Revenue may authorize a seller to pay the sales tax upon sales
made through vending machines and similar devices, or under
conditions of business such as to render impracticable the
collection of the tax as a separate item, and waive collection of
the tax from the purchaser.
(b) If sales are made by receipt of a coin or coins dropped
into a receptacle that results in delivery of the merchandise in
single purchases of smaller value than the minimum sale upon
which a one cent tax may be collected from the purchaser,
according to the schedule prescribed under section 61 of this
2003 Act, and if the design of the device is such that multiple
sales of items are not possible or cannot be detected so as
practicably to assess a tax, then no tax shall be assessed or
collected on the gross receipts from such sales if adequate and
complete records are kept by the vending machine operator,
readily available for inspection by the department. If such
records are not maintained, the gross receipts for the purposes
of the sales tax are 50 percent of the gross receipts of the
vending machine through which such sales are made, determined by
the department according to the best of its information and
belief, using such records as are available.
(c) As used in this section, 'adequate and complete records'
means that the vending machine operator regularly maintains
records that would enable a department auditor to accurately
ascertain liability for sales taxes under section 59 of this 2003
Act, showing the location or locations of each machine operated
by the vending machine operator during each reporting period, the
serial number thereof, purchases and inventories of merchandise
bought for sale through all such machines and the gross receipts
derived from the operation at each location during each reporting
period.
(2) No authority under subsection (1) of this section may be
granted except upon application to the department and unless the
department finds that the conditions of the applicant's business
are such as to render impracticable the collection of the tax in
the manner otherwise provided. If required by the department, an
applicant under this section must furnish a proper bond
sufficient to secure the payment of the tax. One permit is
sufficient for all machines of one operator. A statement shall be
affixed upon each vending machine in a conspicuous space by the
operator thereof, stating the operator's name, place of business
and permit number. + }
SECTION 63. { + Excess collection. (1) When an amount
represented by a person to a purchaser as constituting
reimbursement for taxes due under section 59 of this 2003 Act is
computed upon an amount that is not taxable or is in excess of
the taxable amount and is actually paid by the purchaser to the
person, the amount so paid shall be returned by the person to the
purchaser upon notification by the Department of Revenue or by
the purchaser that such excess has been ascertained. In the event
of the person's failure or refusal to do so, the amount paid, if
knowingly or mistakenly computed by the person upon an amount
that is not taxable or is in excess of the taxable amount, shall
be remitted by that person to this state. However, those amounts
remitted to the state shall be credited by the department on any
amounts due and payable under section 59 of this 2003 Act on the
same transaction from the person by whom it was paid to this
state and the balance, if any, shall constitute an obligation due
from the person to this state.
(2) Subsection (1) of this section does not apply to an amount
computed by using a schedule designed to result in collection in
an amount as nearly equivalent as practicable to the tax
applicable to total taxable sales and to the average amount of
individual taxable sales. + }
SECTION 64. { + Worthless accounts. A person is relieved from
liability for sales tax insofar as the measure of the tax is
represented by accounts that have been found to be worthless and
charged off for income tax purposes or if the person is not
required to file income tax returns, charged off in accordance
with generally accepted accounting principles. If the person has
previously paid the tax, the person may take as a deduction the
amount found worthless and charged off. If any such accounts are
thereafter in whole or in part collected by the person, the
amount so collected shall be included in the first return filed
after such collection and the tax shall be paid with the
return. + }
{ +
SELLER PERMIT + }
SECTION 65. { + Application for permit. (1) Every person
desiring to engage in or conduct business as a seller within this
state shall file with the Department of Revenue an application
for a permit for each place of business.
(2) Every application for a permit shall be made upon a form
prescribed by the department and must set forth:
(a) The name under which the applicant transacts or intends to
transact business;
(b) The location of the place or places of business; and
(c) Any other information that the department requires.
(3) The application must be signed:
(a) By the owner, if a natural person;
(b) In the case of an association or partnership, by a member
or partner; or
(c) In the case of a corporation, by an executive officer or
some person specifically authorized by the corporation to sign
the application. The person signing the application shall certify
that the applicant will actively engage in or conduct a business
as a seller of tangible personal property.
(4) A person may not engage in business as a seller in this
state without a permit or after the person's permit has been
suspended or revoked.
(5) Each officer of a corporation that engages in business in
violation of subsection (4) of this section is guilty of
violating that subsection. + }
SECTION 66. { + Notice to applicant. At the time the
Department of Revenue provides the applicant with an application
form, the applicant shall be provided with a written notice in a
form prescribed by the department outlining the pertinent
provisions of sections 67 to 70 of this 2003 Act and the
penalties that will accrue to the applicant should the permit be
used in a manner that is prohibited by those sections. + }
SECTION 67. { + Issuance and display of permit. After
compliance with sections 65 and 165 of this 2003 Act by the
applicant, and after the notice required under section 66 of this
2003 Act is given, the Department of Revenue shall issue to each
applicant a separate permit for each place of business within
this state. A permit is not assignable and is valid only for the
person in whose name it is issued and for the transaction of
business at the place designated therein. At all times the permit
must be conspicuously displayed at the place for which it is
issued. + }
SECTION 68. { + Change of address. Upon such notification of a
change of address as may be required by the Department of
Revenue, a permit may be reissued for the new address of a
business place of a permit holder without the filing of a new
application. + }
SECTION 69. { + Inactive status. (1) A permit shall be held
only by persons actively engaging in or conducting a business as
a seller of tangible personal property. Any person not so engaged
shall forthwith surrender any permit held by the person to the
Department of Revenue for cancellation. The department may revoke
the permit of a person found to be not actively engaged in or
conducting a business as a seller of tangible personal property.
(2) Any person who knowingly issues a resale certificate while
the person is not actively engaged in or conducting a business as
a seller, for personal gain or to evade the payment of taxes,
shall be liable for the taxes that would otherwise have been due
on the transaction, plus a penalty as provided in section 152 (3)
of this 2003 Act and interest as provided in section 152 (4) of
this 2003 Act from the last day of the month following the
reporting period for which the amount or any portion thereof
should have been returned until the date of the payment. + }
SECTION 70. { + Revocation of permit; appeal. (1) If any
person fails to comply with any provision of the Sales and Use
Tax Law relating to the sales tax or any rule of the Department
of Revenue relating to the sales tax adopted under the Sales and
Use Tax Law, the department may suspend or revoke the permit or
permits held by the person. The department shall not issue a new
permit after the revocation of a permit unless it is satisfied
that the former holder of the permit will comply with the
provisions of the Sales and Use Tax Law relating to the sales tax
and the rules of the department.
(2) If the department proposes to refuse to issue a permit, or
proposes to suspend or revoke a permit, the department shall give
notice of the proposed refusal, suspension or revocation at least
30 days before the refusal, suspension or revocation will be
final. Appeal following the notice of the determination may be
taken to the Oregon Tax Court in the manner provided in ORS
305.275 within the time provided in ORS 305.280 (1). + }
SECTION 71. { + Swap meet or flea market. (1) When the
Department of Revenue determines it is necessary for the
efficient administration of the Sales and Use Tax Law, the
department may require the operator of a swap meet or flea
market, as a prerequisite to renting or leasing space on the
premises owned or controlled by such operator to a person
desiring to engage in or conduct business as a seller, to obtain
evidence that the seller is the holder of a valid seller's permit
issued pursuant to section 67 of this 2003 Act, or a written
statement from the seller that the seller is not offering for
sale any item that is taxable under the Sales and Use Tax Law.
(2) 'Swap meet or flea market,' as used in this section, means
an activity involving a series of sales sufficient in number,
scope and character to constitute a regular course of
business. + }
SECTION 72. { + Presumption of taxability; resale
certificate. For the purpose of the proper administration of the
Sales and Use Tax Law and to prevent evasion of the sales tax, it
is presumed that all gross receipts are subject to the tax until
the contrary is established. The burden of proving that a sale of
tangible personal property is not a sale at retail is upon the
person who makes the sale unless the person takes from the
purchaser a resale certificate to the effect that the property is
purchased for resale. + }
{ +
USE TAX + }
SECTION 73. { + Imposition of tax; rate. An excise tax is
imposed on the storage, use or other consumption in this state of
tangible personal property purchased from any retailer for
storage, use or other consumption in this state, at the rate of
five percent of the purchase price of the property. + }
SECTION 74. { + Liability for tax. Every person storing,
using or otherwise consuming in this state tangible personal
property purchased from a retailer is liable for the use tax. The
person's liability is not extinguished until the tax has been
paid to this state, except that a receipt from a retailer engaged
in business in this state or from a retailer who is authorized by
the Department of Revenue, under such rules as it may adopt, to
collect the tax and who, for the purposes of the use tax, is
regarded as a retailer engaged in business in this state, given
to the purchaser pursuant to section 75 of this 2003 Act, is
sufficient to relieve the purchaser from further liability for
the tax to which the receipt refers. + }
SECTION 75. { + Collection by retailer; tax as debt;
itemization of tax. (1) Except as provided in section 100 of this
2003 Act, every retailer engaged in business in this state or to
whom authorization to collect tax has been granted by the
Department of Revenue, who makes sales of tangible personal
property for storage, use or other consumption in this state, not
exempt for purposes of the Sales and Use Tax Law, at the time of
making the sales or if the storage, use or other consumption of
the tangible personal property is not then taxable, at the time
the storage, use or other consumption becomes taxable, shall
collect the tax from the purchaser and shall give to the
purchaser a receipt therefor in the manner and form prescribed by
the Department of Revenue.
(2) The tax required to be collected under subsection (1) of
this section by the retailer and any amount unreturned to the
purchaser that is not tax but was collected under representation
by the retailer that it was a tax constitutes a debt owed by the
retailer to this state.
(3) With respect to leases constituting sales of tangible
personal property, the tax shall be collected from the lessee at
the time amounts are paid by the lessee under the lease.
(4) Unless the department otherwise provides under its rules,
the use tax required to be collected by the retailer from the
purchaser under subsections (1) to (3) of this section shall be
displayed separately from the list price, the price advertised in
the premises, the marked price or other price on the sales check
or other proof of sale. + }
SECTION 76. { + Retailer engaged in business in this state. As
used for purposes of the use tax, 'retailer engaged in business
in this state' means:
(1) Any retailer maintaining, occupying or using, permanently
or temporarily, directly or indirectly, or through a subsidiary
or other agent, by whatever name called, an office, place of
distribution, sales or sample room or place, warehouse or storage
place or other place of business.
(2) Any retailer having any representative, agent, salesperson,
canvasser or solicitor operating in this state under the
authority of the retailer or its subsidiary for the purpose of
selling, delivering or taking orders for any tangible personal
property.
(3) With respect to a lease, any retailer deriving rentals from
a lease of tangible personal property situated in this state. + }
SECTION 77. { + Registration of retailers. Every retailer
selling tangible personal property for storage, use or
consumption in this state shall register with the Department of
Revenue and give:
(1) The name and address of the retailer;
(2) The location of all distribution or sales houses or offices
or other places of business of the retailer in this state; and
(3) Such other information as the department requires. + }
SECTION 78. { + Collection of tax by retailer maintaining or
not maintaining place of business in state. The Director of the
Department of Revenue may in the director's discretion, upon
application of the retailer, authorize the collection of the use
tax imposed by section 73 of this 2003 Act by any retailer who
maintains or who does not maintain a place of business within
this state and who furnishes adequate security to ensure
collection and payment of the tax. The retailer shall be issued,
without charge, a permit to collect the tax in the manner and
subject to the rules and agreements as the director shall
prescribe or require. When so authorized, it shall be the duty of
the retailer to collect the tax upon all tangible personal
property sold by the retailer for use, storage or other
consumption within this state, in the same manner and subject to
the same requirements as any other retailer. The permit may be
canceled if, at any time, the director considers the security
inadequate or that the tax can more effectively be collected from
the person using the property in this state. + }
SECTION 79. { + Excessive collections. When an amount
represented by a person to a purchaser as constituting
reimbursement for taxes due under section 73 of this 2003 Act is
computed upon an amount that is not taxable or is in excess of
the taxable amount and is actually paid by the purchaser to the
person, the amount so paid shall be returned by the person to the
purchaser upon notification by the Department of Revenue or by
the purchaser that such excess has been ascertained. In the event
of the person's failure or refusal to do so, the amount so paid,
if knowingly or mistakenly computed by the person upon an amount
that is not taxable or is in excess of the taxable amount, shall
be remitted by that person to this state. However, those amounts
remitted to this state shall be credited by the department on any
amounts due and payable under section 73 of this 2003 Act on the
same transaction from the person by whom it was paid to this
state and the balance, if any, shall constitute an obligation due
from the person to this state. + }
SECTION 80. { + Worthless accounts. A person is relieved from
liability to collect use tax insofar as the measure of the tax is
represented by accounts that have been found to be worthless and
charged off for income tax purposes or if the person is not
required to file income tax returns, charged off in accordance
with generally accepted accounting principles. If the person has
previously paid the tax, under rules prescribed by the Department
of Revenue, the person may take as a deduction the amount found
worthless and charged off. If any such accounts are thereafter in
whole or in part collected by the person, the amount so collected
shall be included in the first return filed after such collection
and the tax shall be paid with the return. + }
SECTION 81. { + Presumptions. For the purpose of the proper
administration of the Sales and Use Tax Law and to prevent
evasion of the use tax and the duty to collect the use tax, the
following presumptions are established:
(1) Tangible personal property sold by any person for delivery
in this state is sold for storage, use or other consumption in
this state unless the contrary is established. The burden of
proving the contrary is upon the person who makes the sale unless
the person takes from the purchaser a resale certificate to the
effect that the property is purchased for resale.
(2) Tangible personal property shipped or brought to this state
by the purchaser was purchased from a retailer on or after the
operative date of this section for storage, use or other
consumption in this state.
(3) Tangible personal property delivered outside this state to
a purchaser known by the retailer to be a resident of this state
was purchased from a retailer for storage, use or other
consumption in this state and stored, used or otherwise consumed
in this state. This presumption may be controverted by a
statement in writing, signed by the purchaser or the authorized
representative, and retained by the vendor, that the property was
purchased for use at a designated point or points outside this
state. This presumption may also be controverted by other
evidence satisfactory to the Department of Revenue that the
property was not purchased for storage, use or other consumption
in this state.
(4) A motor vehicle purchased outside of this state that is
brought into this state on or before the 90th day after its
purchase, was acquired for storage, use or other consumption in
this state. However, a member of the Armed Forces of the United
States on active duty who purchases a motor vehicle prior to the
effective date of discharge of the member is not subject to this
presumption. The member is not considered to have purchased the
motor vehicle for storage, use or other consumption in this state
unless at the time of purchase the member intended to use it in
this state, such intent resulting from the member's own
determination rather than from official orders received as a
member of the Armed Forces transferring the member to this
state. + }
SECTION 82. { + Credit for tax paid to another jurisdiction.
(1) A credit shall be allowed against, but shall not exceed, the
taxes imposed on any person by the Sales and Use Tax Law by
reason of the storage, use or other consumption of tangible
personal property in this state to the extent that the person has
paid a general retail sales or use tax, or reimbursement
therefor, imposed with respect to that property by any other
state or political subdivision thereof prior to the storage, use
or other consumption of that property in this state.
(2) A credit otherwise permitted under subsection (1) of this
section shall not be allowed against taxes that are measured by
periodic payments made under a lease, to the extent that the
taxes imposed by any other state or political subdivision thereof
were also measured by periodic payments made under a lease for a
period prior to the storage, use or other consumption of the
property in this state. + }
{ +
RESALE CERTIFICATES + }
SECTION 83. { + Effect of certificate. The resale certificate
referred to in sections 72 and 81 (1) of this 2003 Act relieves
the person selling the property from liability for sales tax or
the duty to collect use tax only if it is taken from a person who
is engaged in the business of selling tangible personal property
and who holds the permit provided for in sections 65 to 70 or 78
of this 2003 Act. + }
SECTION 84. { + Form of certificate. The resale certificate
must be signed by and bear the name and address of the purchaser,
indicate the number of the permit issued to the purchaser and
indicate the general character of the tangible personal property
sold by the purchaser in the regular course of business. The
resale certificate shall be substantially in such form as the
Department of Revenue prescribes. + }
SECTION 85. { + Retention, demonstration or display;
liability of purchaser. (1) If a purchaser who gives a resale
certificate or purchases property for the purpose of reselling it
makes any storage or use of the property other than retention,
demonstration or display while holding it for sale in the regular
course of business, the storage or use is taxable to the
purchaser under section 73 of this 2003 Act as of the time the
property is first so stored or used by the purchaser and, except
as provided in subsections (2) and (3) of this section, the sales
price of the property to the purchaser is the measure of the tax.
(2) If the use is limited to the loan of the property to
customers as an accommodation while awaiting delivery of property
purchased or leased from the lender or while property is being
repaired for customers by the lender, the measure of the tax is
the fair rental value of the property for the duration of each
loan so made.
(3) If the property is used frequently for purposes of
demonstration or display while holding it for sale in the regular
course of business and is used partly for other purposes, the
measure of the tax is the fair rental value of the property for
the period of such other use or uses. + }
SECTION 86. { + Leases; election to pay use tax. If a
purchaser acquires property in a transaction described in section
43 (1) of this 2003 Act and leases such property, the purchaser
may elect at the time the property is first leased, after the
operative date of this section, to pay use tax measured by the
purchase price of the property. For purposes of this section:
(1) 'Purchaser' shall include a transferee who acquires
property in a transaction that qualifies under the provisions of
section 43 (2) of this 2003 Act; and
(2) The purchase price paid by the transferee shall be the same
as that paid by the original purchaser. + }
SECTION 87. { + Resale certificate; fungible goods. If a
purchaser gives a resale certificate with respect to the purchase
of fungible goods and thereafter commingles these goods with
other fungible goods not so purchased but of such similarity that
the identity of the constituent goods in the commingled mass
cannot be determined, sales from the mass of commingled goods
shall be deemed to be sales of the goods so purchased until a
quantity of commingled goods equal to the quantity of purchased
goods so commingled has been sold. + }
SECTION 88. { + Improper use of certificate. No person shall
give, for the purpose of evading payment to the seller or other
person selling the property of the amount of the tax applicable
to the transaction, a resale certificate for property that the
person knows, at the time of purchase, is not to be resold by the
person in the regular course of business. + }
{ +
DIRECT PAYMENT PERMITS + }
SECTION 89. { + Direct payment permits. (1) The Department of
Revenue may authorize a purchaser of substantial amounts of
tangible personal property to pay the tax directly to the
department and to waive the collection of the tax by the vendor.
Purchasers to whom such authorization may be granted include but
are not limited to the following:
(a) A manufacturer, mine operator or public service corporation
that is a user, consumer, distributor or lessee to which sales,
distributions, leases or storage of tangible personal property
are made under circumstances that normally make it impossible at
the time of such sales, distributions, leases or storage to
determine the manner in which the property will be used by the
person; or
(b) Any person who stores tangible personal property in this
state for use both within and outside this state.
(2) No such authority shall be granted or exercised except upon
application to the department and the issuance by the department,
in its discretion, of a direct payment permit. If a direct
payment permit is granted, its use is subject to conditions
specified by the department, and the payment of tax on all
acquisitions pursuant to the permit shall be made directly to the
department by the permit holder within the time prescribed in the
permit. Direct payment permittees must notify each vendor from
whom purchases are made of their direct payment permit and that
the taxes are being paid directly to the department and must
maintain records that adequately and properly reflect their
liability for tax under the Sales and Use Tax Law.
(3) The department shall revoke a direct payment permit and the
authority granted to a purchaser thereunder for failure to comply
with the conditions under which such authority was granted, or
for other reasons constituting misuse of such authority.
Thereupon the purchaser shall give each supplier with whom it has
transacted business under the authority a written notice of the
revocation and shall supply the department with evidence that
such notice has been given. Notwithstanding section 176 of this
2003 Act, if the purchaser fails to notify any supplier of the
revocation, the department may give such notice. + }
{ +
ABSORPTION OF TAX BY RETAILER + }
SECTION 90. { + Unlawful advertising. Except as otherwise
provided by law or rule of the Department of Revenue, no retailer
shall advertise, hold out or state to the public or to any
customer, directly or indirectly, that the sales tax on tangible
personal property or the use tax on tangible personal property or
any part thereof:
(1) Will be assumed or absorbed by the retailer;
(2) Will not be added to the selling price of the property
sold; or
(3) If added, the tax or any part thereof will be refunded. + }
{ +
VEHICLES, VESSELS AND AIRCRAFT + }
SECTION 91. { + Definitions. (1) As used in sections 91 to
102 of this 2003 Act, unless the context requires otherwise:
(a) 'Aircraft' means any powered contrivance used or designed
for navigation of or flight in the air, except a rocket or
missile.
(b) 'Vessel' means any boat, ship, barge, craft or floating
thing designed for navigation in the water except:
(A) A seaplane;
(B) A watercraft specifically designed to operate on a
permanently fixed course, the movement of which is restricted to
or guided on such permanently fixed course by means of a
mechanical device on a fixed track or arm to which the watercraft
is attached or by which the watercraft is controlled, or by means
of a mechanical device attached to the watercraft itself;
(C) A watercraft of a type designed to be propelled solely by
oars or paddles;
(D) A watercraft of eight feet or less in length of a type
designed to be propelled by sail;
(E) A floating home, as defined in ORS 830.700; or
(F) A boathouse, as defined in ORS 830.700.
(c) 'Vehicle' means a vehicle or motor vehicle, as defined in
section 41 of this 2003 Act, for which registration or a
certificate of title is required under ORS 803.025 or 803.300, or
would be required if the vehicle were not exempted from
registration or certification requirements under ORS 801.026,
803.030 or 803.305. 'Vehicle' does not include any of the
following:
(A) A manufactured structure, as defined in ORS 801.333.
(B) A snowmobile, as defined in ORS 801.490.
(C) A school bus, as defined in ORS 801.460.
(D) An ambulance, as defined in ORS 801.115, an emergency
vehicle, as defined in ORS 801.260, or other fire apparatus or
fire engine.
(E) A bicycle, as defined in ORS 801.150.
(F) A farm tractor, as defined in ORS 801.265, or a farm
trailer, as defined in ORS 801.270, or other implements of
husbandry, as defined in ORS 801.310.
(G) Fixed load vehicles, as defined in ORS 801.285, that are
subject to ad valorem property taxation.
(H) Golf carts, as defined in ORS 801.295, and similar vehicles
described in ORS 803.030 (14).
(I) Road rollers.
(J) A trolley.
(K) Well drilling machinery.
(L) Wheelchairs.
(2) A motor or other component part of a vessel, whether or not
detachable, is considered to be a part of the vessel when sold
therewith. + }
SECTION 92. { + Persons that are retailers of vehicles,
vessels or aircraft. Every person making a retail sale of a
vehicle, vessel or aircraft is a retailer of the vehicle, vessel
or aircraft for purposes of the Sales and Use Tax Law, regardless
of whether the person is a retailer by reason of other provisions
of the Sales and Use Tax Law unless another person is the
retailer, as provided in section 93 of this 2003 Act. + }
SECTION 93. { + Sales through certified dealers or wreckers.
Every person holding a certificate as a dealer or a wrecker under
ORS chapter 822 is the retailer of a vehicle when a retail sale
of the vehicle is made through the person and the person provides
to the Department of Transportation a notice of transfer with
respect to the vehicle. That person shall hold a seller's permit
and remit tax to the Department of Revenue with respect to those
sales in the same manner as a dealer or wrecker making sales on
the dealer's or wrecker's own account. For purposes of this
section, ' sale' does not include a lease. + }
SECTION 94. { + Sales tax; exemption if seller other than
dealer or wrecker. There are exempted from the computation of the
amount of the sales tax the gross receipts from sales of vehicles
required to be registered or titled by the Department of
Transportation when the retailer is other than a person certified
as a dealer or a wrecker under ORS chapter 822. However, this
exemption does not extend to the rentals payable under a lease of
tangible personal property. + }
SECTION 95. { + Boat trailers. Notwithstanding section 94 of
this 2003 Act, the gross receipts from the sales of boat trailers
by persons in the business of selling boats or boat trailers are
not exempt from the computation of the amount of sales tax. + }
SECTION 96. { + Vessels and aircraft; sellers. There are
exempted from the computation of the amount of the sales tax the
gross receipts from the sale of a vessel or aircraft when the
retailer is other than a person required to hold a seller's
permit issued under the Sales and Use Tax Law by reason of the
number, scope and character of the sales by the person of vessels
or aircraft, as the case may be. + }
SECTION 97. { + Seller's permit requirements. If a person is
engaged in the business of selling vehicles, vessels or aircraft,
the person is not excused from the requirements of the Sales and
Use Tax Law relating to seller's permits, collection and payment
of sales tax or any other provision of the Sales and Use Tax Law
by reason of the exemptions provided in sections 94 and 96 of
this 2003 Act. + }
SECTION 98. { + Family sales. There are exempted from the
taxes imposed by the Sales and Use Tax Law the gross receipts
from the sale of, and the storage, use or other consumption in
this state of, a vehicle, vessel or aircraft, when the person
selling the property is either by blood, marriage or adoption the
parent, grandparent, child or spouse of the purchaser and the
person selling is not engaged in the business of selling the type
of property for which the exemption is claimed. + }
SECTION 99. { + Substantially same ownership after transfer.
There are exempted from the taxes imposed by the Sales and Use
Tax Law the gross receipts from the sale of, and the storage, use
or other consumption in this state of, a vehicle, vessel or
aircraft, when such property is included in any transfer of 80
percent or more of the tangible personal property, in terms of
its selling price, held or used in the course of a business
activity of the person selling the property, and when after such
transfer the real or ultimate ownership of such property is
substantially similar to that which existed before such transfer.
For the purposes of this section, stockholders, bondholders,
partners or other persons holding an interest in a corporation or
other entity are regarded as having the 'real or ultimate
ownership' of the property of such corporation or other
entity. + }
SECTION 100. { + Use tax; payment; interest and penalties.
(1) Notwithstanding section 146 or 148 of this 2003 Act, except
when the sale is by lease, the use taxes imposed with respect to
the storage, use or other consumption in this state of vehicles,
vessels and aircraft are due and payable by the purchaser at the
time the storage, use or other consumption of the property first
becomes taxable to the Department of Revenue or to the following,
whichever is applicable:
(a) In the case of a vehicle required to be titled or
registered, to the Department of Transportation before a
certificate of title or registration may be issued to the
purchaser by the Department of Transportation.
(b) In the case of a boat that is subject to certification of
title, or registration if no certificate of title is to be
issued, by the State Marine Board pursuant to ORS 830.700 to
830.870, to the Department of Revenue before it may be certified
or registered by the State Marine Board.
(c) In the case of aircraft subject to registration for the
first time to the purchaser by the Oregon Department of Aviation
pursuant to ORS 837.040 to 837.070, to the Department of Revenue
before it may be registered by the Oregon Department of Aviation.
(2) If the purchaser of a vehicle, boat or aircraft mentioned
in subsection (1) of this section does not make application for
registration or certification to the Department of
Transportation, the Oregon Department of Aviation or the State
Marine Board, whichever is applicable, within 30 days after the
date of purchase of the vehicle, boat or aircraft, the purchaser
then becomes liable for a penalty as specified in section 152 (1)
of this 2003 Act, but no interest shall accrue. However, if the
purchaser does not make application for certification or
registration or does not pay the amount of use tax due within 90
days after the date of purchase, or files a return with the
Department of Revenue that is not timely, the purchaser shall
become fully liable for the penalties and interest as provided in
section 152 of this 2003 Act, which shall be collectible by the
Department of Revenue or the Department of Transportation in the
same manner and subject to the same procedures as for other
delinquent sales and use taxes. The Department of Transportation
shall collect delinquent use tax, penalties and interest as
provided in this section and section 102 of this 2003 Act with
respect to any delinquent application for certification of title
or registration of a vehicle.
(3) Application to the Department of Transportation for
certification of title or registration of a vehicle accompanied
by payment of the use tax by the purchaser relieves the purchaser
of the obligation to file a separate return with the Department
of Revenue under section 147 of this 2003 Act. + }
SECTION 101. { + Presumption on sale to lessee. There shall
be a presumption that a transfer of a vehicle to a lessee by a
lessor was a sale for resale if the lessee transfers title and
registration to a third party within 10 days from the date the
lessee acquired title from the lessor at the expiration or
termination of a lease. The presumption may be rebutted by
evidence that the sale was not for resale prior to use. + }
SECTION 102. { + Use tax; collection by Department of
Transportation; disposition of proceeds. (1) Except when the sale
is by lease, in the collection of the use tax on motor vehicles
for which a certificate of title or registration is required, the
Department of Transportation shall act as collecting agent. The
Department of Transportation shall collect the use tax, and any
penalty or interest that may be due, at the time an applicant
applies for the registration of, or certification or transfer of
title to, the motor vehicle, unless:
(a) The applicant exhibits a retailer's receipt showing that
the retail sales tax has been collected by the retailer;
(b) The application is for the renewal of registration;
(c) The applicant presents a certificate provided by the
Department of Revenue or a retailer under section 145 of this
2003 Act; or
(d) The applicant presents satisfactory evidence showing that
the sales tax or the use tax has been paid on the vehicle in
question.
(2) Every applicant for registration or issuance or transfer of
certificate of title who is subject to payment of the use tax
shall declare the value of the vehicle for which application is
made, which shall consist of the consideration paid or contracted
to be paid therefor. No person wilfully shall misrepresent or
fail to declare such value.
(3) The moneys collected by the Department of Transportation
under this section shall be deposited promptly in the suspense
account created under ORS 802.100 (1). So much as is necessary of
the moneys so collected is appropriated continuously to the
Department of Transportation to pay the administrative expenses
of the Department of Transportation in collecting the use tax
under this section. All moneys in excess of these administrative
expenses shall be transferred monthly to the Sales Tax Fund
established under section 181 of this 2003 Act. At least once
each month the Department of Transportation shall account to the
Department of Revenue for all use tax moneys collected and
administrative expenses retained under this section. The
Department of Transportation shall turn over to the Department of
Revenue all reports, applications and other information required
by the Department of Revenue that have been obtained in the
collection and administration of the use tax on motor vehicles.
(4) An applicant who has paid a use tax under this section may
apply to the Department of Revenue for a refund within the time
and in the manner provided under ORS 305.270 if the applicant has
reason to believe the use tax was not due and owing.
(5) The provisions of this section are in addition to any other
methods prescribed in the Sales and Use Tax Law for the
collection of the use tax. + }
{ +
EXEMPTIONS + }
{ +
(General Exemptions) + }
SECTION 103. { + Exemptions must be specific. Notwithstanding
any other provision of law, no exemption may be made from the
sales tax or use tax unless such exemption is provided in the
Sales and Use Tax Law. + }
SECTION 104. { + Exempted from the taxes imposed by the Sales
and Use Tax Law. 'Exempted from the taxes imposed by the Sales
and Use Tax Law,' as used in sections 98, 99 and 105 to 145 of
this 2003 Act, means, in the case of the sales tax, exempted from
the computation of the amount of tax imposed. + }
SECTION 105. { + Constitutional exemptions; Indians. (1)
There are exempted from the taxes imposed by the Sales and Use
Tax Law those transactions that this state is prohibited from
taxing under the laws or Constitution of the United States or
under the Oregon Constitution.
(2) There are exempted from the taxes imposed by the Sales and
Use Tax Law the gross receipts from the sale, storage, use or
consumption of tangible personal property to an Indian tribe or
Indian enterprise within an Indian reservation. + }
SECTION 106. { + Water. There are exempted from the taxes
imposed by the Sales and Use Tax Law the gross receipts from the
sales, furnishing or service of and the storage, use or other
consumption in this state of water. As used in this section,
'water' does not include ice. + }
SECTION 107. { + Food products. (1) There are exempted from
the taxes imposed by the Sales and Use Tax Law the gross receipts
from the sale of and the storage, use or other consumption in
this state of food products for human consumption.
(2) As used in this section:
(a) 'Food products' includes cereals and cereal products,
margarine, meat and meat products, fish and fish products, eggs
and egg products, vegetables and vegetable products, fruit and
fruit products, spices and salt, sugar and sugar products, coffee
and coffee substitutes, tea, cocoa and cocoa products and chewing
gum.
(b) 'Food products' includes milk and milk products,
milkshakes, malted milks and any other similar types of beverages
that are composed at least in part of milk or a milk product and
that require the use of milk or a milk product in their
preparation.
(c) 'Food products' includes noncarbonated and noneffervescent
bottled water and all fruit juices, vegetable juices and other
beverages, whether liquid or frozen, but does not include
spirituous, malt or vinous liquors or carbonated beverages, ice,
mineral water or soda water.
(d) 'Food products' does not include medicines, tonics and
preparations in liquid, powdered, granular, tablet, capsule,
lozenge and pill form sold as dietary supplements or adjuncts.
(e) 'Food products' includes food stamps.
(3) None of the exemptions provided for in this section apply
if:
(a) The food products are served as meals on or off the
premises of the retailer;
(b) The food products are furnished, prepared or served for
consumption at tables, chairs or counters or from trays, glasses,
dishes or other tableware whether provided by the retailer or by
a person with whom the retailer contracts to furnish, prepare or
serve food products to others;
(c) The food products ordinarily are sold for immediate
consumption on or near a location at which parking facilities are
provided primarily for the use of patrons in consuming the
products purchased at the location, even though such products are
sold on a 'takeout' or 'to go' order and are actually packaged or
wrapped and taken from the premises of the retailer;
(d) The food products are sold for consumption within a place,
the entrance to which is subject to an admission charge, except
for national and state parks and monuments; or
(e) The food products are sold as hot prepared food products.
As used in this paragraph, 'hot prepared food products' means
those products, items or components that have been prepared for
sale in a heated condition and that are sold at any temperature
that is higher than the air temperature of the room or place
where they are sold. 'Hot prepared food products' includes a
combination of hot and cold food items or components where a
single price has been established for the combination and the
food products are sold in such combination, such as a hot meal, a
hot specialty dish or serving, a hot sandwich or a hot pizza,
including any cold components or side items. 'Hot prepared food
products' does not include, if sold for a separate price, bakery
goods or beverages (other than bouillon, consomme or soup). + }
SECTION 108. { + Alcoholic liquor taxable. Notwithstanding
ORS 471.725, 471.730 or 471.745 or any other provision of law to
the contrary, the taxes imposed by sections 59 and 73 of this
2003 Act shall apply to the gross receipts from the sale of, or
the storage, use or other consumption of alcoholic liquor as
defined in ORS 471.001. + }
SECTION 109. { + Meals in certain places. (1)(a) There are
exempted from the taxes imposed by the Sales and Use Tax Law the
gross receipts from the sale, service or furnishing of and the
storage, use or other consumption in this state of meals and food
products for human consumption furnished or served to the
students of a school by public or private schools, school
districts, student organizations or parent-teacher associations.
(b) The exemption provided by this subsection shall not apply
when the meals or food products are sold for consumption within a
place, the entrance to which is subject to an admission charge,
except national and state parks and monuments.
(2) There are exempted from the taxes imposed by the Sales and
Use Tax Law the gross receipts from the sale, service or
furnishing of, or the storage, use or other consumption in this
state of, meals and food products for human consumption furnished
or served by any charitable or religious organization at a social
or other gathering conducted by it or under its auspices, if the
purpose in furnishing or serving the meals and food products is
to obtain revenue for the functions and activities of the
organization and the revenue obtained from furnishing or serving
the meals and food products is actually used in carrying on such
functions and activities. As used in this subsection, 'charitable
or religious organization' means a charitable institution or a
religious organization that owns property that is exempt or if
the organization owned property, the property would be exempt,
from ad valorem property tax under ORS 307.130 or 307.140.
(3) There are exempted from the taxes imposed by the Sales and
Use Tax Law the gross receipts from the sale, service or
furnishing of, or the storage, use or other consumption in this
state of, meals furnished or served by an establishment that
furnishes board and room for a flat monthly rate if the
establishment serves as a principal residence exclusively for
persons 62 years of age or older, for individuals with
disabilities or for students, or any combination thereof. As used
in this subsection, 'individual with disabilities' means any
individual having a physical or mental impairment.
(4) There are exempted from the taxes imposed by the Sales and
Use Tax Law the gross receipts from the sale, service or
furnishing of, or the storage, use or other consumption in this
state of, meals furnished or served by a nonprofit organization
or governmental agency if the meals are furnished or served
exclusively for lower income or needy persons.
(5) There are exempted from the taxes imposed by the Sales and
Use Tax Law the gross receipts from the sale, service or
furnishing of, or the storage, use or other consumption in this
state of, meals furnished or served to and consumed by residents
and patients of a health care facility, as defined in ORS
442.015.
(6) There are exempted from the taxes imposed by the Sales and
Use Tax Law the gross receipts from the sale of, and the storage,
use or other consumption in this state of, hot prepared food
products, as defined in section 107 (3)(e) of this 2003 Act, sold
by caterers or other vendors to air carriers engaged in
interstate or foreign commerce for consumption by passengers on
such air carriers and the gross receipts from the sale of and the
storage, use or other consumption of hot prepared food products
sold or served to passengers by air carriers engaged in
interstate or foreign commerce for consumption by passengers on
such air carriers.
(7) There are exempted from the taxes imposed by the Sales and
Use Tax Law the gross receipts from the sale of and the storage,
use or other consumption in this state of meals and food products
for human consumption furnished to and consumed by persons
residing in a nonprofit home for the elderly, as described in ORS
307.375, or persons 62 years of age or older residing in a
condominium and who own equal share in a common kitchen facility.
However, to qualify for an exemption under this section, the
meals and food products must be served to such persons on a
regular basis.
(8) There are exempted from the taxes imposed by the Sales and
Use Tax Law the gross receipts from the sale of and the storage,
use or other consumption in this state of meals and food products
for human consumption furnished to, delivered to and consumed by
elderly persons or individuals with disabilities residing in
their homes if the meals and food products are delivered on a
regular basis by the same agency, organization or other
establishment. + }
SECTION 110. { + Sales by charitable organizations. (1) There
are exempted from the taxes imposed by the Sales and Use Tax Law
the gross receipts from the sale of and the storage, use or other
consumption in this state of tangible personal property made,
prepared, assembled or manufactured by institutions and
organizations formed and operated for charitable purposes
qualifying for the exemption provided by ORS 307.130 or 307.140,
which are engaged in the relief of poverty and distress, and make
the sales as a matter of assistance to the purchasers.
(2) There are exempt from the taxes imposed under sections 59
and 73 of this 2003 Act the gross receipts from the sale of and
the storage, use or other consumption in this state of tangible
personal property if sold by an organization or institution the
real property of which, if otherwise qualified, is exempt from ad
valorem property tax under ORS 307.130 or 307.140, or the real
property of which would be exempt from ad valorem property tax
under ORS 307.130 or 307.140 if the institution or organization
owned real property located within this state. However, no
exemption shall be allowed under this subsection if the tangible
personal property is sold from a retail store or outlet. As used
in this subsection, 'retail store or outlet' does not mean a
device or apparatus through which sales are activated by coin
deposits, but the term includes automats or business
establishments retailing diversified goods primarily through the
use of such devices or apparatus. + }
SECTION 111. { + Prescription medicines. (1) There are
exempted from the taxes imposed by the Sales and Use Tax Law the
gross receipts from the sale of or the storage, use or other
consumption in this state of medicines:
(a) Prescribed for the treatment of a human being by a person
authorized by law to prescribe the medicines, and lawfully
dispensed on prescription by a pharmacist registered or licensed
as provided by law.
(b) Furnished by a physician or osteopath licensed under ORS
chapter 677, a physician assistant authorized to furnish the
medicine under ORS chapter 677, a nurse practitioner authorized
to prescribe the medicine under ORS chapter 678, a dentist
licensed under ORS chapter 679 or a podiatrist licensed under ORS
chapter 677, to the patient of the physician, osteopath,
physician assistant, nurse practitioner, dentist or podiatrist
for treatment of the patient.
(c) Furnished by a health care facility for treatment of any
person pursuant to the order of a practitioner authorized to
prescribe or dispense medicine described in paragraph (b) of this
subsection.
(d) Sold to a practitioner authorized to prescribe or furnish
medicine described in paragraph (b) of this subsection or a
health care facility for the treatment of a human being.
(e) Sold to this state or any municipal corporation or
political subdivision of this state, for use in the treatment of
a human being, or furnished for the treatment of a human being by
a medical facility or clinic maintained by this state or any
municipal corporation or political subdivision of this state.
(2) As used in this section, unless the context requires
otherwise:
(a) 'Health care facility' means a health care facility as
defined under ORS 442.015.
(b) 'Medicine' means any substance or preparation intended for
use by external or internal application to the human body in the
diagnosis, cure, mitigation, treatment or prevention of disease
and that commonly is recognized as a substance or preparation
intended for such use, and includes but is not limited to
sutures, whether or not permanently implanted; bone screws, bone
pins, pacemakers and other articles permanently implanted in the
human body to assist the functioning of any natural organ,
artery, vein or limb and that remain or dissolve in the body;
artificial limbs and eyes for human beings or their replacement
parts; any auditory, prosthetic, ophthalmic, dental or ocular
device or appliance; articles that are in the nature of splints,
bandages, pads, compresses, supports, dressings, instruments,
apparatus, contrivances, appliances, devices or other mechanical,
electronic, optical or physical equipment or article or the
component parts and accessories thereof; and programmable drug
infusion devices to be worn or implanted in the human body.
However, 'medicine' does not include:
(A) Any articles that are in the nature of instruments,
apparatus, contrivances, appliances, devices or other mechanical,
electronic, optical or physical equipment or articles or the
component parts and accessories thereof used for the diagnosis of
human ailments.
(B) Any alcoholic beverage, the manufacture, sale, purchase,
possession or transportation of which is licensed and regulated
by ORS chapters 471 and 473.
(3) Insulin and insulin syringes furnished by a pharmacist
registered or licensed as provided by law to a person for
treatment of diabetes, as directed by a physician or other person
authorized to prescribe or dispense medicine, are considered to
be dispensed on prescription within the meaning of subsection
(1)(a) of this section.
(4) Orthotic and prosthetic devices, and replacement parts for
such devices, furnished pursuant to the written order of a
practitioner described in subsection (1)(b) of this section or by
a chiropractor licensed under ORS chapter 684, shall be deemed to
be dispensed on prescription within the meaning of subsection
(1)(a) of this section, whether or not the devices are furnished
by a registered pharmacist.
(5) Mammary prostheses, and any appliances and related supplies
necessary as the result of any surgical procedure by which an
artificial opening is created in the human body for the
elimination of natural waste, shall be deemed to be dispensed on
prescription within the meaning of subsection (1)(a) of this
section.
(6) Wheelchairs, crutches, canes, quad canes and walkers and
replacement parts for such devices, when sold to an individual
for the personal use of that individual as directed by a
practitioner authorized to prescribe or dispense medicine, shall
be considered to be medicine dispensed on prescription within the
meaning of subsection (1)(a) of this section.
(7) There shall be exempt from the taxes imposed by the Sales
and Use Tax Law the gross receipts from the sale, service or
furnishing of, or the storage, use or other consumption in this
state of:
(a) Dentures, as defined in ORS 680.500.
(b) Hearing aids, as defined in ORS 694.015.
(c) Eyeglasses, contact or other lenses, or other ophthalmic
materials, if sold or furnished by an optometrist registered or
licensed to practice optometry in this or another state or by a
physician, surgeon or a dispensing optician.
(d) Hemodialysis products, supplied to a patient on order of a
practitioner described in subsection (1)(b) of this section.
(e) X-ray films or photographs used for the purpose of
diagnosing medical or dental conditions of human beings,
excluding use of those products for purely cosmetic purposes.
(8) There are exempted from the taxes imposed by the Sales and
Use Tax Law the gross receipts from the sale, and the storage,
use or other consumption, in this state of any medical oxygen
delivery system, including but not limited to liquid oxygen
containers, high-pressure cylinders and regulators, when sold,
leased or rented to an individual for the personal use of that
individual as directed by a physician. + }
SECTION 112. { + Vehicles for individuals with disabilities.
There are exempted from the taxes imposed by the Sales and Use
Tax Law the gross receipts from the sale, and the storage, use or
other consumption, in this state of items and materials when used
to modify a vehicle for individuals with disabilities. + }
SECTION 113. { + Educational institutions; property loaned
to. (1) The loan by any retailer of any tangible personal
property to any school district for an educational program
conducted by the district is exempt from the use tax.
(2) The loan by any retailer of any motor vehicle, as defined
in section 41 of this 2003 Act, to any college or university, or
to any community college, for the exclusive use in an approved
driver education teacher preparation certification program
conducted by the college, university or community college is
exempt from the use tax.
(3) The loan by any retailer of a motor vehicle to be used
exclusively for driver training in an accredited private or
parochial secondary school in a driver education and training
program that is a regularly conducted course of study is exempt
from the use tax.
(4) If a retailer makes any other use of property except
retention, demonstration or display while holding it for sale in
the regular course of business, the use is taxable to the
retailer under section 73 of this 2003 Act as of the time the
property is first so used, and the sales price of the property to
the retailer is the measure of the tax. + }
SECTION 114. { + Ingredient rule; property used in industrial
processing. There are exempted from the taxes imposed by the
Sales and Use Tax Law the gross receipts from the sale, lease or
rental of and the storage, use or other consumption in this state
of tangible personal property that will enter into and become an
ingredient or component part of tangible personal property
manufactured, processed or fabricated for ultimate sale at retail
within or without this state. The exemption provided in this
section does not include:
(1) Unless the property becomes an ingredient or component part
of other tangible personal property, tangible personal property
used or consumed in or during any phase of such actual
manufacturing, processing or fabricating operation, even if the
use or consumption of such tangible personal property is
necessary or essential to the performance of such operation.
Chemicals, catalysts and other materials that are used during
such operation and that are used for the purpose of producing or
inducing a chemical or physical change during such operation or
for removing impurities or otherwise placing a product in a more
marketable condition are also not exempt, nor are other articles
of tangible personal property used in such a manner as to be
necessary or essential in the actual manufacturing, processing or
fabricating operation;
(2) Machinery, equipment and replacement parts and accessories
therefor;
(3) Machinery, equipment, materials and supplies used in a
manner that is merely incidental to the manufacturing, processing
or fabricating operation, including but not limited to intraplant
transportation equipment, and maintenance and janitorial
equipment and supplies;
(4) Hand tools, including but not limited to hammers, wrenches
and saws; and
(5) Tangible personal property used by a manufacturer,
processor or fabricator in any activities other than the actual
manufacturing, processing or fabricating operation, including but
not limited to office equipment and supplies, equipment and
supplies used in selling or distributing activities, in research
and development of new products or in transportation
activities. + }
SECTION 115. { + Animals; feed; seed; fertilizer; farm
machinery sold to nonresidents for use outside state. There are
exempted from the taxes imposed by the Sales and Use Tax Law the
gross receipts from sales of and the storage, use or other
consumption of:
(1) Animals, feed, seed, plants, fertilizer and pesticides
that, or the products of which, are ordinarily used or for use in
commercial, agricultural, horticultural or silvicultural
activities.
(2) Machinery and implements for use in conducting a farming
activity, if the machinery or implements are transported
immediately outside this state. The Department of Revenue may
require whatever evidence it considers necessary to substantiate
a claim for exemption under this subsection. + }
SECTION 116. { + Cigarettes. There are exempted from the
taxes imposed by the Sales and Use Tax Law the gross receipts
from the sale of, and the storage, use or other consumption in
this state of, cigarettes that have been subjected to tax
pursuant to the provisions of ORS chapter 323. + }
SECTION 117. { + Containers. There are exempted from the
taxes imposed by the Sales and Use Tax Law the gross receipts
from sales of, and the storage, use or other consumption in this
state of:
(1) Nonreturnable containers when sold without the contents to
persons who place the contents in the container and sell the
contents together with the container.
(2) Containers when sold with the contents if the sales price
of the contents is not required to be included in the measure of
the taxes imposed by the Sales and Use Tax Law.
(3) Returnable containers when sold with the contents in
connection with a retail sale of the contents or when resold for
filling. For purposes of this section, 'returnable containers '
means containers of a kind customarily returned by the buyer for
reuse. All other containers are 'nonreturnable containers.' + }
SECTION 118. { + Warranty obligations. There are exempted
from the taxes imposed by the Sales and Use Tax Law the gross
receipts from furnishing goods to the purchaser or a successor in
interest of tangible personal property to fulfill a warranty
obligation to the extent that such goods are not charged to the
purchaser or a successor in interest. + }
SECTION 119. { + Newspapers and periodicals. (1) There are
exempted from the taxes imposed by the Sales and Use Tax Law the
gross receipts from the sale of, and the storage, use or other
consumption in this state of, tangible personal property that
becomes an ingredient or component part of any newspaper or
periodical regularly issued at average intervals not exceeding
three months and any such newspaper or periodical.
(2) There are exempted from the taxes imposed by the Sales and
Use Tax Law the gross receipts from the sale of, and the storage,
use or other consumption in this state of, a photograph, whether
or not produced to special order, when the possession, but not
the title, of the photograph is transferred for the purpose of
being reproduced one time only, in a newspaper regularly issued
at the intervals set forth in subsection (1) of this section. + }
SECTION 120. { + Motor vehicle and aircraft fuel. (1) There
are exempted from the taxes imposed by the Sales and Use Tax Law
the gross receipts from the sale or distribution and the storage,
use or other consumption in this state of motor vehicle fuel,
fuel or aircraft fuel, the sale, use or other consumption of
which in this state is:
(a) Subject to tax under ORS 319.010 to 319.430 or 319.510 to
319.880, and not subject to refund; or
(b) Exempt from the tax imposed under ORS 319.510 to 319.880 by
ORS 825.484 (2).
(2) The Department of Transportation shall collect the sales
tax upon sales of motor vehicle fuel, fuel and aircraft fuel that
are subject to tax and refund under ORS chapter 319. Collection
may be accomplished by way of deduction from refunds otherwise
allowable under ORS chapter 319. For the purpose of establishing
gross receipts upon which the sales tax is computed, the
Department of Transportation shall use estimated average fuel
sales prices. At the request of a refund claimant, the Department
of Transportation may adjust the sales tax so computed upon
presentation by the claimant of information showing the exact
amount paid for the fuel upon which refund is claimed. The
Department of Transportation shall transfer the amount of the
sales tax deductions from the appropriate General Fund account
from which refunds are made under ORS chapter 319. The moneys
transferred by the Department of Transportation under this
subsection shall be deposited promptly in the suspense account
created under ORS 802.100 (1). As much as is necessary of the
moneys so collected is appropriated continuously to the
Department of Transportation to pay the administrative expenses
and refunds of the Department of Transportation in collecting the
sales tax under this subsection. All moneys in excess of these
administrative expenses and refunds shall be transferred monthly
to the State Highway Fund. At least once each month the
Department of Transportation shall account to the Department of
Revenue for all sales tax moneys collected under this subsection.
(3) In accordance with joint rules of the Department of
Revenue, the Public Utility Commission and the Department of
Transportation:
(a) Sales taxes collected on fuel exempt from the tax imposed
under ORS 319.510 to 319.880 by ORS 825.484 (2) may be offset
against taxes imposed under ORS chapter 825 in returns made under
that chapter. On the 15th day of each month, the Public Utility
Commission shall certify to the Department of Revenue and the
State Treasurer the amount so offset and the State Treasurer
shall cause that amount to be transferred from the Sales Tax Fund
to the Motor Carrier Account in the General Fund.
(b) Sales tax collected on fuel subject to tax under ORS
319.010 to 319.430 or 319.510 to 319.880, and not subject to
refund, may be offset against taxes imposed under ORS 319.010 to
319.430 or 319.510 to 319.880 in returns made under those
statutes. On the 15th day of each month, the Department of
Transportation shall certify to the Department of Revenue and the
State Treasurer the amount so offset and the State Treasurer
shall cause that amount to be transferred from the Sales Tax Fund
to the State Highway Fund. + }
SECTION 121. { + Fuel oil and natural gas, electricity,
firewood, coal, nuclear fuel and other fuel products and waste
byproducts. (1) There are exempted from the taxes imposed by the
Sales and Use Tax Law the gross receipts from the sales,
furnishing or service of and the storage, use or other
consumption in this state of:
(a) Fuel oil, natural gas, liquefied petroleum gas, electricity
or geothermal resources when delivered to consumers through
mains, lines, pipes or by tank truck or for purposes of
residential heating and of exhaust steam, waste steam, heat or
resultant energy, produced in connection with cogeneration
technology.
(b) Coal.
(c) Firewood.
(d) Organic products grown expressly for fuel purposes.
(e) Waste byproducts from agricultural or forest products
operations, municipal refuse or manufacturing that are delivered
in bulk and are used in an industrial facility as a fuel source
in lieu of the use of either oil, natural gas or coal.
(f) Nuclear fuel. For purposes of this paragraph, 'nuclear
fuel' means special nuclear material and source material used for
fueling or refueling nuclear reactors.
(2) As used in this section, 'cogeneration' means the
sequential use of energy for the production of electrical and
useful thermal energy. The sequence can be thermal use followed
by power production or the reverse, subject to the following
standards:
(a) At least five percent of the cogeneration project's total
annual energy output shall be in the form of useful thermal
energy.
(b) Where useful thermal energy follows power production, the
useful annual power output plus one-half of the useful annual
thermal energy output equals not less than 42.5 percent of any
natural gas or oil energy input. + }
SECTION 122. { + Aircraft sold in interstate or foreign
commerce. (1) There are exempted from the taxes imposed by the
Sales and Use Tax Law the gross receipts from the sale of and the
storage, use or other consumption of aircraft sold or leased or
sold to persons for the purpose of leasing to:
(a) Persons using such aircraft as common carriers of persons
or property under authority of the laws of this state, of the
United States or any foreign government;
(b) Any foreign government for use by such government outside
this state; or
(c) Persons who are not residents of this state and who will
not use such aircraft in this state otherwise than in the removal
of such aircraft from this state.
(2) There are exempted from the taxes imposed by the Sales and
Use Tax Law the gross receipts from the sale of and the storage,
use or other consumption in this state of tangible personal
property sold to an aircraft manufacturer and incorporated into
aircraft to be leased by the manufacturer under conditions set
forth in subsection (1) of this section. + }
SECTION 123. { + Watercraft. (1) There are exempted from the
taxes imposed by the Sales and Use Tax Law the gross receipts
from the sale of and the storage, use, lease, sale to persons for
the purpose of leasing or other consumption in this state of
watercraft for use in interstate or foreign commerce involving
the transportation of property or persons for hire or for use in
commercial deep sea fishing operations outside the territorial
waters of this state, by persons who are regularly engaged in
commercial deep sea fishing and any sales of tangible personal
property becoming a component part of such watercraft in the
course of constructing, repairing, cleaning, altering or
improving the same and charges made for labor and services
rendered in respect to such constructing, repairing, cleaning,
altering or improving.
(2) For purposes of this section, a person is not regularly
engaged in commercial deep sea fishing if the person has gross
receipts from commercial fishing operations of less than $5,000
for the taxable year, for income tax purposes, prior to the year
of sale, storage, use or consumption. + }
SECTION 124. { + Motor vehicle or vessel sold to nonresident.
(1) There are exempted from the taxes imposed by the Sales and
Use Tax Law the gross receipts from the sale of and the storage,
use or other consumption in this state of any motor vehicle that
is sold to a nonresident of this state for use outside of this
state, even though delivery is made within this state, if the
motor vehicle:
(a) Is to be taken from the point of delivery in this state
directly to a point outside this state under authority of a
permit issued under the authority of the Department of
Transportation; or
(b) Will be registered and licensed immediately under the laws
of the state of the purchaser's residence, will not be used in
this state more than three months and will not be required to be
registered or licensed under the laws of this state.
(2) There are exempted from the taxes imposed by the Sales and
Use Tax Law the gross receipts from the sale of and the storage,
use or other consumption in this state of any vessel that is sold
to a nonresident of this state for use outside this state, even
though delivery is made within this state, if:
(a) The vessel will not be used within this state for more than
45 days; and
(b) An appropriate exemption certificate supported by
identification ascertaining residence, as provided by the
Department of Revenue and signed by the purchaser or the
purchaser's agent establishing the fact that the purchaser is a
nonresident and that the vessel is for use outside of this state,
is filed with the Department of Revenue in accordance with any
rules of the Department of Revenue. + }
SECTION 125. { + New vehicles purchased from out-of-state
dealer. (1) There are exempted from the taxes imposed by the
Sales and Use Tax Law the gross receipts from the sale of and the
storage, use or other consumption in this state of a new truck,
new truck tractor, new semitrailer or new trailer, any of which
has an unladen weight of 6,000 pounds or more, or a new trailer
coach or new auxiliary dolly, if such vehicle:
(a) Is purchased from a dealer located outside this state for
use outside this state; and
(b) Is delivered by the manufacturer to the purchaser within
this state, and such purchaser drives or moves such vehicle from
the manufacturer's place of business in this state to any point
outside this state not later than the 30th day after delivery.
(2) In order to qualify for exemption under subsection (1) of
this section, the purchaser must furnish to the manufacturer:
(a) Written evidence of an out-of-state registration for the
vehicle;
(b) The purchaser's affidavit attesting that the purchaser is
not a resident of this state and that the purchaser purchased the
vehicle from a dealer at a specified location outside this state
for use outside this state; and
(c) The purchaser's affidavit that the vehicle has been moved
or driven to a point outside this state not later than the 30th
day after delivery of the vehicle to the purchaser. + }
SECTION 126. { + Used manufactured structure and floating
homes. There are exempted from the taxes imposed by the Sales
and Use Tax Law the gross receipts from the sale, lease or rental
of, and the storage, use or other consumption in this state of,
any used manufactured structure or any used floating home. As
used in this section, 'manufactured structure' and 'floating
home' have the meanings given those terms in section 38 of this
2003 Act. + }
SECTION 127. { + Rail freight cars. There are exempted from
the taxes imposed by the Sales and Use Tax Law the gross receipts
from the sale of and the storage, use or other consumption in
this state of rail freight cars for use in interstate or foreign
commerce, and any sales of tangible personal property becoming a
component part of such rail freight cars in the course of
constructing, repairing, cleaning, altering or improving the
same, and charges made for labor and services rendered in respect
to such constructing, repairing, cleaning, altering or
improving. + }
SECTION 128. { + Preexisting construction contracts. There
are exempted from the taxes imposed by the Sales and Use Tax Law
the gross receipts from the sale of and the storage, use or other
consumption in this state of materials, supplies and services to
contractors for use in erecting structures for others, or
building on or otherwise improving, altering or repairing real
property of others, if such structure, building, improvement,
alteration or repair is the subject of a written bid or contract
duly tendered or entered into by such contractor before the
operative date of this section. + }
{ +
(Exemptions from Sales Tax) + }
SECTION 129. { + United States Government and
instrumentalities. (1) There are exempted from the computation
of the amount of the sales tax imposed under section 59 of this
2003 Act the gross receipts from the sale of any tangible
personal property to:
(a) The United States and its unincorporated agencies and
instrumentalities;
(b) Any incorporated agency or instrumentality of the United
States wholly owned by the United States or by a corporation
wholly owned by the United States; or
(c) The American Red Cross and its chapters and branches.
(2) The exemption provided under this section does not extend
to the rentals payable under a lease of tangible personal
property. + }
SECTION 130. { + United States contractors. A sale of
tangible personal property to a contractor purchasing such
property, either as the agent of the United States or for the
contractor's own account and subsequent resale to the United
States for use in the performance of a contract with the United
States for the construction of improvements on or to real
property in this state, is a retail sale. The gross receipts from
the sale or the sales price of the property so sold shall be
included in the measure of the taxes imposed under the Sales and
Use Tax Law. + }
SECTION 131. { + Sales to common carriers. (1) There are
exempted from the computation of the amount of the sales tax
imposed under section 59 of this 2003 Act the gross receipts from
sales of tangible personal property to a common carrier, shipped
by the seller via the purchasing carrier under a bill of lading,
whether the freight is paid in advance or the shipment is made
freight charges collect, to a point outside this state and the
property is actually transported to the out-of-state destination
for use by the carrier in the conduct of its business as a common
carrier.
(2) As used in this section with respect to water
transportation, 'common carrier' means any person who engages in
the business of transporting persons or property for hire or
compensation and who offers their services indiscriminately to
the public or some portion of the public and includes any vessel
engaged for compensation in transporting persons or property in
interstate or foreign commerce.
(3)(a) There are exempted from the computation of the amount of
the sales tax imposed under section 59 of this 2003 Act the gross
receipts from sales of tangible personal property, other than
aircraft fuel and petroleum products, purchased by a foreign air
carrier and transported by the foreign air carrier to a foreign
destination for use by the air carrier in the conduct of its
business as a common carrier by air of persons or property.
(b) To qualify for this exemption, the foreign air carrier
shall timely furnish to the seller a certificate in writing that
the property shall be transported and used in the manner
described in this subsection. Such certificate shall be
substantially in the form prescribed by the Department of
Revenue. Acceptance in good faith of such a certificate shall
relieve the seller from liability for the sales tax. The foreign
air carrier shall maintain records in this state, such as a copy
of a bill of lading, an air waybill or cargo manifest,
documenting its transportation of the tangible personal property
to a foreign destination.
(4) Pursuant to subsection (3) of this section, any use of the
property by the purchasing foreign air carrier, other than that
incident to delivery of the property to the foreign air carrier
and the transportation of the property by the carrier to a
foreign destination and subsequent use in the conduct of its
business as a common carrier, or a failure of the foreign air
carrier to document its transporting the property to a foreign
destination, shall subject the carrier to liability for payment
of sales tax as if it were a retailer making a retail sale of the
property at the time of such use or failure, and the cost of the
property to it shall be deemed to be the gross receipts from such
retail sale.
(5) 'Foreign air carrier,' as used in this section, means a
foreign air carrier as defined in 49 U.S.C. 40102, as amended and
in effect on December 31, 1996.
(6) Nothing in section 35 or 47 of this 2003 Act shall affect
the exemption afforded under this section to sales of tangible
personal property to a common carrier under the circumstances set
forth in this section. + }
SECTION 132. { + Sales to water, air or rail carriers. There
are exempted from the taxes imposed by section 59 of this 2003
Act the gross receipts from sales of tangible personal property,
other than tangible personal property described in sections 105
to 145 of this 2003 Act, for use by the purchaser in connection
with the business of operating as a private or common carrier by
water, air or rail in interstate or foreign commerce. However:
(1) Any actual use of such property or services in this state
shall be subject to the tax imposed by section 73 of this 2003
Act at the time of such actual use; and
(2) Charges made by one railroad to another railroad for
maintenance and repair of jointly owned and used, or singly owned
and jointly used, railroad facilities do not constitute a
sale. + }
SECTION 133. { + Cargo containers for use in interstate or
foreign commerce. (1) If a cargo container is purchased for use
outside of this state and is delivered by an in-state
manufacturer to the purchaser within this state, and the
purchaser moves the cargo container to any point outside this
state within 30 days after the date of delivery, there are
exempted from the taxes imposed by the Sales and Use Tax Law the
gross receipts from the sale of and the storage, use or other
consumption of the cargo container within this state provided
that the purchaser furnishes both of the following to the
manufacturer:
(a) The purchaser's affidavit attesting that the purchaser
purchased such cargo container at a specified location for use
exclusively outside of this state, or exclusively in interstate
commerce.
(b) The purchaser's affidavit that the cargo container has been
moved to a point outside this state within 30 days of the date of
the delivery of the cargo container to the purchaser.
(2) As used in this section, 'cargo container' means a
receptacle that has all of the following characteristics:
(a) Is of a permanent character and accordingly strong enough
to be suitable for repeated use.
(b) Is specially designed to facilitate the carriage of goods,
by one or more modes of transport, one of which shall be by
vessels, without intermediate reloading.
(c) Is fitted with devices permitting its ready handling,
particularly its transfer from one mode of transport to another.
(d) Is designed to be easy to fill and empty.
(e) Has a displacement of 1,000 cubic feet or more. + }
SECTION 134. { + Occasional sales. (1) There are exempted
from the computation of the amount of the sales tax imposed under
section 59 of this 2003 Act the gross receipts from occasional
sales of tangible personal property as described under section 43
(1) of this 2003 Act. This exemption does not apply to the gross
receipts from the sale of, or the storage, use or other
consumption in this state of, a vehicle, vessel or aircraft as
defined in section 91 of this 2003 Act.
(2) This section does not preclude the exemptions granted under
section 99 of this 2003 Act. + }
SECTION 135. { + Export packers. There are exempted from the
computation of the amount of the sales tax imposed under section
59 of this 2003 Act the gross receipts from sales of tangible
personal property purchased for use outside the continental
limits of the United States and delivered to a forwarding agent,
export packer or other person engaged in the business of
preparing goods for export or arranging for their exportation,
and actually delivered to a port outside the continental limits
of the United States prior to making any use thereof. + }
SECTION 136. { + Out-of-state contractors. There are exempted
from the computation of the amount of the sales tax imposed under
section 59 of this 2003 Act the gross receipts from the sale in
this state of tangible personal property to a holder of a valid
seller's permit issued under section 67 of this 2003 Act if the
property is used by the purchaser outside of this state in the
performance of a contract to improve real property and, as a
result of such use, is incorporated into and becomes a part of
real property located outside this state. This exemption applies
only if the purchaser certifies in writing to the seller, in such
form as the Department of Revenue may prescribe, that the
property will be used in a manner and for a purpose specified in
this section. + }
SECTION 137. { + Rentals included in use tax or outside this
state. There are exempted from the computation of the amount of
the sales tax imposed under section 59 of this 2003 Act the
rentals payable under a lease of tangible personal property when
such rentals are required to be included in the measure of the
use tax imposed under section 73 of this 2003 Act or when such
property is situated outside this state. + }
SECTION 138. { + Interstate shipments. (1) There are exempted
from the computation of the amount of the sales tax imposed under
section 59 of this 2003 Act the gross receipts from the sale of
tangible personal property that, pursuant to the contract of
sale, is required to be shipped and is shipped to a point outside
this state by the retailer by means of:
(a) Facilities operated by the retailer; or
(b) Delivery by the retailer to a carrier, customs broker or
forwarding agent, whether hired by the purchaser or not, for
shipment to such out-of-state point.
(2) For purposes of this section:
(a) 'Carrier' means a person or firm engaged in the business of
transporting for compensation tangible personal property owned by
other persons, and includes both common and contract carriers.
(b) 'Forwarding agent' means a person or firm engaged in the
business of preparing property for shipment or arranging for its
shipment. + }
{ +
(Exemptions from Use Tax) + }
SECTION 139. { + Items on which sales tax imposed. (1)
Subject to subsection (2) of this section, the storage, use or
other consumption in this state of tangible personal property,
the gross receipts from the sale of which are required to be
included in the measure of the sales tax imposed under section 59
of this 2003 Act, is exempted from the use tax imposed under
section 73 of this 2003 Act. However, this exemption does not
extend to the possession of, or the exercise of, any right or
power over tangible personal property by a lessee under a lease.
(2) No credit or refund of any amount of use tax paid may be
allowed on the ground that the storage, use or other consumption
of the property was exempted under subsection (1) of this
section, unless the person who paid the amount reimburses the
vendor for the amount of the sales tax imposed upon the vendor
with respect to the sale of the property and paid by the vendor
to this state. + }
SECTION 140. { + Occasional sales. (1) The storage, use or
other consumption in this state of tangible personal property,
the transfer of which by the seller is an occasional sale under
section 43 (1) of this 2003 Act, is exempted from the use tax
imposed under section 73 of this 2003 Act if:
(a) The sales price of the particular item of tangible personal
property involved in the occasional sale does not exceed $500 and
the purchase is for personal use or consumption and not for use
or consumption in carrying on a trade, occupation, business or
profession; or
(b) The transfer is an occasional sale under section 43 (2) of
this 2003 Act.
(2) This exemption does not apply to the gross receipts from
the sale of, or the storage, use or other consumption in this
state of, a vehicle, vessel or aircraft as defined in section 91
of this 2003 Act. + }
SECTION 141. { + Property of nonresident temporarily in
state. (1) The storage, use or other consumption in this state
of tangible personal property brought into this state by a
nonresident thereof for the nonresident's use or enjoyment while
temporarily within this state is exempted from the use tax
imposed under section 73 of this 2003 Act unless such tangible
personal property is used in conducting a nontransitory business
activity within this state.
(2) The use in this state by a nonresident of this state of a
motor vehicle that is registered or licensed under the laws of
the state of the nonresident's residence, and that is not
required to be registered or titled under the laws of this state,
is exempted from the use tax. + }
SECTION 142. { + New resident's purchases while nonresident.
The storage, use or other consumption in this state of tangible
personal property by a bona fide resident of this state is
exempted from the use tax imposed under section 73 of this 2003
Act if such tangible personal property was acquired by such a
person in another state while a bona fide resident thereof and
primarily for use outside this state and if such use was actual
and substantial. If such tangible personal property was acquired
by such person less than three months prior to the time the
person entered this state, it is presumed that the tangible
personal property was acquired for use in this state and that its
use outside this state was not actual and substantial. + }
SECTION 143. { + Contractors and subcontractors. If a
contractor, subcontractor or builder uses tangible personal
property in the performance of the contract or to fulfill
contract or subcontract obligations entered into on or after the
operative date of this section, whether the title to such
property is in the name of the contractor, subcontractor,
contractee, subcontractee or any other person, or whether the
titleholder of such property would be subject to pay the taxes
imposed by the Sales and Use Tax Law, such contractor,
subcontractor or builder shall pay the use tax imposed under
section 73 of this 2003 Act, measured by the purchase price or
fair market value for such property, whichever is greater, unless
the property has been previously subjected to a sales or use tax
in this state and the tax due thereon has been paid. + }
{ +
(Exemption Certificates) + }
SECTION 144. { + Liability of purchaser. If a purchaser
certifies in writing to a seller that the property purchased will
be used in a manner or for a purpose entitling the seller to
regard the gross receipts from the sale as exempted under the
Sales and Use Tax Law from the computation of the amount of the
sales tax, and uses the property in some other manner or for some
other purpose, the purchaser is liable for payment of sales tax
as if the purchaser were a retailer making a retail sale of the
property at the time of such use, and the cost of the property to
the purchaser is considered to be the gross receipts from the
retail sale. For purposes of this section, 'use' has the meaning
given that term in section 55 (2) of this 2003 Act without the
exclusion provided in section 55 (3) of this 2003 Act. + }
SECTION 145. { + Vehicles; exemption certificates. The
Department of Revenue may provide for exemption certificates and
other tax clearance certificates to be issued by it or by
retailers selling vehicles as defined in section 91 of this 2003
Act. Such certificates shall be used to allow a completion of
registration of a vehicle by the Department of Transportation.
The certificates may indicate that the Department of Revenue
finds that no use tax is due under section 73 of this 2003 Act or
is likely to become due with respect to the storage, use or other
consumption of the vehicle, or that the tax has been paid or is
to be paid in a manner not requiring the withholding of a
registration or transfer of registration. The certificates shall
be in such form as the Department of Revenue may prescribe and
shall be executed, issued and accepted for clearance of
registration on such conditions as the Department of Revenue may
prescribe. No person shall issue, alter, forge or use any such
certificate in a manner contrary to the requirements of the
Department of Revenue. + }
{ +
RETURNS AND PAYMENTS + }
SECTION 146. { + Due date. The taxes imposed by the Sales and
Use Tax Law are due and payable to the Department of Revenue as
follows:
(1) If the taxes may reasonably be expected to be $500 or less
for the entire calendar year, the taxes are due and payable to
the department not later than the January 31 following the end of
the calendar year.
(2) If the taxes may reasonably be expected to be more than
$500, but $5,000 or less for the entire calendar year, the taxes
are due and payable to the department semiannually not later than
the last day of the calendar month next following June 30 and
December 31.
(3) Except as provided in section 148 of this 2003 Act, if the
taxes may reasonably be expected to exceed $5,000 for the entire
calendar year, the taxes are due and payable quarterly not later
than the 15th day of the calendar month next following the
calendar quarter. + }
SECTION 147. { + Filing return. Not later than the last day
of the calendar month next following the taxable period for a
retailer described section 146 (1) or (2) of this 2003 Act, or
the 15th day of the calendar month next following the taxable
quarter for a retailer described in section 146 (3) of this 2003
Act, a return for the preceding taxable period shall be filed
with the Department of Revenue in such form as the department may
prescribe. For purposes of the sales tax, a return shall be filed
by every seller. For the purposes of the use tax, a return shall
be filed by every retailer engaged in business in this state, by
every person to whom a permit is issued under section 78 of this
2003 Act and by every person purchasing tangible personal
property, the storage, use or other consumption of which is
subject to the use tax, who has not paid the use tax due to a
retailer required to collect the tax. Returns must be signed by
the person required to file the return or by a duly authorized
agent. + }
SECTION 148. { + Estimated tax. (1) Any person subject to
section 146 (3) of this 2003 Act, in accordance with rules
adopted by the Department of Revenue, shall remit to the
department for the first and second months of the calendar
quarter an estimate of the tax to be due for that month on or
before the seventh day of the calendar month next succeeding the
end of the month for which the tax accrued. The remaining tax due
and payable for the calendar quarter shall be due and payable to
the department as provided in section 146 (3) of this 2003 Act.
The amount remitted for each of the first two calendar months of
the calendar quarter shall be at least 90 percent of the tax
actually collected or owing during the month less credits allowed
under section 82 of this 2003 Act and the discount allowed under
section 61 (5) of this 2003 Act.
(2) The department may adopt rules that enable the retailer or
the department to credit against the estimated sales or use tax
liability the amount the retailer or the department determines to
be an overpayment of estimated tax for any period.
(3) Payment of the estimated tax under this section shall be
considered payment on account of the sales or use tax imposed by
section 59 or 73 of this 2003 Act.
(4) If a retailer makes an underpayment of estimated tax
imposed under this section, interest shall accrue on the amount
underpaid at the rate established under ORS 305.220, for the
period that the estimated tax remains unpaid. The penalty
provisions contained in section 152 of this 2003 Act for
underpayment of tax shall not apply to underpayments of estimated
tax imposed under this section. + }
SECTION 149. { + Contents of return. (1) For purposes of the
sales tax on tangible personal property, the return shall show
the gross receipts of the seller during the reporting period.
(2) For purposes of the use tax, the return shall show the
total sales price of the property sold or purchased, the storage,
use or consumption of which became subject to the use tax during
the reporting period.
(3) The return also shall show the amount of the taxes for the
period covered by the return and such other information as the
Department of Revenue considers necessary for the proper
administration of the Sales and Use Tax Law. + }
SECTION 150. { + Lessor and lessee. Section 149 of this 2003
Act shall not be applicable with respect to a lease of tangible
personal property. However, the lessor shall report the rentals
paid by the lessee during the preceding reporting period and the
lessee shall report the rentals payable in the preceding
reporting period upon which tax has not been paid to the lessor
required to collect the tax. The return shall also show the
amount of the taxes for the period covered by the return and such
other information as the Department of Revenue deems necessary
for the proper administration of the Sales and Use Tax Law. + }
SECTION 151. { + Extension of time. The Department of Revenue
for good cause may extend for no more than one month the time for
making any return under the Sales and Use Tax Law. The extension
may be granted at any time if a written request therefor is filed
with the department within or prior to the period for which the
extension may be granted. When the time for filing a return is
extended at the request of a taxpayer, interest on the unpaid tax
at the rate established under ORS 305.220, for each month or
fraction of a month from the time the return was originally
required to be filed until the time of payment, shall be added
and paid. + }
SECTION 152. { + Delinquencies; penalties. (1) If there is a
failure to file a return required under the Sales and Use Tax Law
at the time prescribed therefor, or a failure to pay a tax at the
time the tax becomes due, and no extension is granted under
section 151 of this 2003 Act, or if the time granted as an
extension has expired and there is a failure to file a return or
pay a tax, there shall be added to the amount of tax required to
be shown on the return a delinquency penalty of five percent of
the amount of the tax.
(2) If the failure to file a return continues for a period in
excess of three months after the due date:
(a) There shall be added to the amount of tax required to be
shown on the return a failure to file penalty of 20 percent of
the amount of such tax; and
(b) Thereafter, the Department of Revenue may send a notice and
demand to the person to file a return within 30 days of the
mailing of the notice. If, after such notice and demand, no
return is filed within 30 days, the department may determine the
tax according to the best of its information and belief, assess
the tax with appropriate penalty and interest, plus an additional
penalty of 25 percent of the tax deficiency determined by the
department, and give written notice of the determination and
assessment to the person required to make the filing.
(3) A penalty equal to 100 percent of any deficiency determined
by the department shall be assessed and collected if:
(a) There is a failure to file a return with intent to evade
the tax; or
(b) A return was falsely prepared and filed with intent to
evade the tax.
(4) Interest shall be collected on the unpaid tax at the rate
established under ORS 305.220, for each month or fraction of a
month, computed from the time the tax became due, during which
the tax remains unpaid.
(5) Each penalty imposed under this section is in addition to
any other penalty imposed under this section. However, the total
amount of penalty imposed under this section with respect to any
deficiency shall not exceed 100 percent of the deficiency. + }
SECTION 153. { + Proceeding to compel return. (1) If a person
fails to file a report or return within 60 days of the time
prescribed by any tax law administered by the Department of
Revenue, the department may petition the Oregon Tax Court for an
order requiring the person to show cause why the person is not
required to file the report or return.
(2) Within 10 days after the filing of the petition, the tax
court shall enter an order directing the person to appear and
show cause why no report or return is required to be filed. The
petition and order shall be served upon the person in the manner
provided by law. Not later than 20 days after service, the person
shall:
(a) File the requested report or return with the department;
(b) Request from the tax court an order granting reasonable
time within which to file the requested report or return with the
department; or
(c) File with the tax court an answer to the petition showing
cause why such report or return is not required to be filed.
(3) If an answer is filed, the tax court shall set the matter
for hearing within 20 days from the filing of the answer, and
shall determine the matter in an expeditious manner, consistent
with the rights of the parties.
(4) An appeal may be taken to the Supreme Court as provided in
ORS 305.445 from an order of the tax court made and entered after
a hearing and determination under subsection (3) of this section.
(5) Costs shall be awarded to the prevailing party. + }
SECTION 154. { + Penalty; discount; temporary provisions.
Notwithstanding sections 61 (5) and 152 of this 2003 Act, no
penalty for late filing of a return or late payment of tax due
shall be assessed and the right of a retailer to retain a
percentage of sales tax due shall not be denied during the
six-month period beginning on the operative date of this
section. + }
SECTION 155. { + Duty to file proper returns. (1) No retailer
or other person shall:
(a) Fail to furnish any return required to be made pursuant to
the Sales and Use Tax Law;
(b) Fail to furnish a supplemental return or other data
required by the Department of Revenue; or
(c) Render a false or fraudulent return, report or claim for
refund.
(2) No person who is required to make, render, sign or verify
any return under the Sales and Use Tax Law shall make a false or
fraudulent return or fail to furnish a return with intent to
defeat or evade the determination of an amount due required by
law. + }
{ +
DETERMINATIONS + }
SECTION 156. { + Audits; deficiencies; assessments; refunds;
appeals. The provisions of ORS chapters 305 and 314 as to the
audits and examinations of returns, periods of limitations,
determinations of deficiencies, assessments, liens,
delinquencies, claims for refund, conferences and appeals to the
Oregon Tax Court, and the procedures relating thereto, shall
apply to the determinations of taxes, penalties and interest
under the Sales and Use Tax Law, except where the context
requires otherwise. + }
{ +
(Deficiencies) + }
SECTION 157. { + Deficiency determination. If, under the
Sales and Use Tax Law, the Department of Revenue is not satisfied
with the return of the tax or the amount of tax required to be
paid to this state by any person, it may compute and determine
the amount required to be paid upon the basis of the facts
contained in the return or upon the basis of any information
within its possession or that may come into its possession. One
or more deficiency determinations may be made of the amount due
for one or more periods. Notices of deficiency shall be given
within the time for giving notices of deficiencies under the
various circumstances described under ORS 314.410. Notices of
deficiency shall be given and interest on deficiencies shall be
computed as provided in ORS 305.265. Subject to ORS 314.421 and
314.423, liens for taxes or deficiencies shall arise at the time
of assessment, shall continue until the taxes, interest and
penalties are fully satisfied and may be recorded and collected
in the manner provided for the collection of delinquent income
taxes. + }
SECTION 158. ORS 305.265 is amended to read:
305.265. (1) Except as provided in ORS 305.305, the provisions
of this section apply to all reports or returns of tax or tax
liability { + , + } including claims under ORS 310.630 to 310.706
{ + and the Sales and Use Tax Law, + } filed with the
Department of Revenue under the revenue and tax laws administered
by it, except those filed under ORS chapter 320.
(2) As soon as practicable after a report or return is filed,
the department shall examine or audit it, if required by law or
the department deems such examination or audit practicable. If
the department discovers from an examination or an audit of a
report or return or otherwise that a deficiency exists, it shall
compute the tax and give notice to the person filing the return
of the deficiency and of the department's intention to assess the
deficiency, plus interest and any appropriate penalty. Except as
provided in subsection (3) of this section, the notice shall:
(a) State the reason for each adjustment;
(b) Give a reference to the statute, regulation or department
ruling upon which the adjustment is based; and
(c) Be certified by the department that the adjustments are
made in good faith and not for the purpose of extending the
period of assessment.
(3) When the notice of deficiency described in subsection (2)
of this section results from the correction of a mathematical or
clerical error and states what would have been the correct tax
but for the mathematical or clerical error, such notice need
state only the reason for each adjustment to the report or
return.
(4) With respect to any tax return filed under ORS chapter 314,
316, 317 or 318, deficiencies shall include but not be limited to
the assertion of additional tax arising from:
(a) The failure to report properly items or amounts of income
subject to or which are the measure of the tax;
(b) The deduction of items or amounts not permitted by law;
(c) Mathematical errors in the return or the amount of tax
shown due in the records of the department; or
(d) Improper credits or offsets against the tax claimed in the
return.
(5)(a) The notice of deficiency shall be accompanied by a
statement explaining the person's right to make written
objections, the person's right to request a conference and the
procedure for requesting a conference. The statement, and an
accompanying form, shall also explain that conference
determinations are routinely transmitted via regular mail and
that a person desiring to have conference determinations
transmitted by certified mail may do so by indicating on the form
the person's preference for certified mail and by returning the
form with the person's written objections as described in
paragraph (b) of this subsection.
(b) Within 30 days from the date of the notice of deficiency,
the person given notice shall pay the deficiency with interest
computed to the date of payment and any penalty proposed. Or
within that time the person shall advise the department in
writing of objections to the deficiency, and may request a
conference with the department, which shall be held prior to the
expiration of the one-year period set forth in subsection (7) of
this section.
(6) If a request for a conference is made, the department shall
notify the person of a time and place for conference and appoint
a conference officer to meet with the person for an informal
discussion of the matter. After the conference, the conference
officer shall send the determination of the issues to the person.
The determination letter shall be sent by regular mail, or by
certified mail if the person given notice has indicated a
preference for transmission of the determination by certified
mail. The department shall assess any deficiency in the manner
set forth in subsection (7) of this section. If no conference is
requested and written objections are received, the department
shall make a determination of the issues considering such
objections, and shall assess any deficiency in the manner
provided in subsection (7) of this section. The failure to
request or have a conference shall not affect the rights of
appeal otherwise provided by law.
(7) If neither payment nor written objection to the deficiency
is received by the department within 30 days after the notice of
deficiency has been mailed, the department shall assess the
deficiency, plus interest and penalties, if any, and shall send
the person a notice of assessment, stating the amount so
assessed, and interest and penalties. The notice of assessment
shall be mailed within one year from the date of the notice of
deficiency unless an extension of time is agreed upon as
described in subsection (8) of this section. The notice shall
advise the person of the rights of appeal.
(8) If, prior to the expiration of any period of time
prescribed in subsection (7) of this section for giving of notice
of assessment, the department and the person consent in writing
to the deficiency being assessed after the expiration of such
prescribed period, such deficiency may be assessed at any time
prior to the expiration of the period agreed upon. The period so
agreed upon may be extended by subsequent agreements in writing
made before the expiration of the period agreed upon.
(9) The failure to hold a requested conference within the
one-year period prescribed in subsection (5) of this section
shall not invalidate any assessment of deficiency made within the
one-year period pursuant to subsection (7) of this section or
within any extension of time made pursuant to subsection (8) of
this section, but shall invalidate any assessment of interest or
penalties attributable to the deficiency. After an assessment has
been made, the department and the person assessed may still hold
a conference within 90 days from the date of assessment. If a
conference is held, the 90-day period under ORS 305.280 (2) shall
run from the date of the conference officer's written
determination of the issues.
(10)(a) In the case of a failure to file a report or return on
the date prescribed therefor (determined with regard to any
extension for filing), the department shall determine the tax
according to the best of its information and belief, assess the
tax plus appropriate penalty and interest, and give written
notice of the failure to file the report or return and of the
determination and assessment to the person required to make the
filing. The amount of tax shall be reduced by the amount of any
part of the tax which is paid on or before the date prescribed
for payment of the tax and by the amount of any credit against
the tax which may be lawfully claimed upon the return.
(b) Notwithstanding subsection (14) of this section and ORS
305.280, and only to the extent allowed by rules adopted by the
department, the department may accept the filing of a report or
return submitted by a person who has been assessed a tax under
paragraph (a) of this subsection.
(c) The department may reject a report or return:
(A) That is not verified as required by ORS 305.810;
(B) That the department determines is not true and correct as
to every material matter as required by ORS 305.815; or
(C) If the department may impose a penalty under ORS 316.992
(1) with respect to the report or return.
(d) If the department rejects a report or return of a person
assessed a tax under paragraph (a) of this subsection, the
department shall issue a notice of rejection to the person. The
person may appeal the rejection to the magistrate division of the
Oregon Tax Court only if:
(A) The report or return was filed within 90 days of the date
the department's assessment under paragraph (a) of this
subsection was issued; and
(B) The appeal is filed within 90 days of the date shown on the
notice of rejection.
(e) If the person assessed under paragraph (a) of this
subsection submits a report or return to the department and
appeals the assessment to the tax court, the department may
request a stay of action from the court pending review of the
report or return. If the department:
(A) Accepts the filing of the report or return, the appeal
shall be dismissed as moot.
(B) Rejects the report or return, the stay of action on the
appeal shall be lifted.
(f) If the department accepts the filing of a report or return,
the department may reduce the assessment issued under paragraph
(a) of this subsection. A report or return filed under this
subsection that is accepted by the department, whether or not the
assessment has been reduced, shall be considered a report or
return described in subsection (1) of this section and shall be
subject to the provisions of this section, including but not
limited to examination and adjustment pursuant to subsection (2)
of this section.
(g) The department may refund payments made with respect to a
report or return filed and accepted pursuant to this subsection.
If the report or return is filed within three years of the due
date for filing the report or return, excluding extensions, the
refund shall be made as provided by ORS 305.270 and 314.415. If
the report or return is not filed within three years of the due
date for filing the report or return, excluding extensions, the
refund shall be limited to payments received within the two-year
period ending on the date the report or return is received by the
department and payments received after the date the report or
return is received by the department. Interest shall be paid at
the rate established under ORS 305.220 for each month or fraction
of a month from the date the report or return is received by the
department to the time the refund is made.
(11) Mailing of notice to the person at the person's last-known
address shall constitute the giving of notice as prescribed in
this section.
(12) If a return is filed with the department accompanied by
payment of less than the amount of tax shown on or from the
information on the return as due, the difference between the tax
and the amount submitted is considered as assessed on the due
date of the report or return (determined with regard to any
extension of time granted for the filing of the return) or the
date the report or return is filed, whichever is later. For
purposes of this subsection, the amount of tax shown on or from
the information on the return as due shall be reduced by the
amount of any part of the tax that is paid on or before the due
date prescribed for payment of the tax, and by any credits
against the tax that are claimed on the return. If the amount
required to be shown as tax on a return is less than the amount
shown as tax on the return, this subsection shall be applied by
substituting the lesser amount.
(13) Every deficiency shall bear interest at the rate
established under ORS 305.220 for each month or fraction of a
month computed from the due date of the return to date of
payment. If the return was falsely prepared and filed with
intent to evade the tax, a penalty equal to 100 percent of the
deficiency shall be assessed and collected. All payments received
shall be credited first to penalty, then to interest accrued, and
then to tax due.
(14) If the deficiency is paid in full before a notice of
assessment is issued, the department is not required to send a
notice of assessment, and the tax shall be considered as assessed
as of the date which is 30 days from the date of the notice of
deficiency or the date the deficiency is paid, whichever is the
later. A partial payment of the deficiency shall constitute only
a credit to the account of the person assessed. Assessments and
billings of taxes shall be final after the expiration of the
appeal period specified in ORS 305.280, except to the extent that
an appeal is allowed under ORS 305.280 (3) following payment of
the tax.
(15) Appeal may be taken to the tax court from any notice of
assessment. The provisions of this chapter with respect to
appeals to the tax court apply to any deficiency, penalty or
interest assessed.
SECTION 159. ORS 305.280 is amended to read:
305.280. (1) Except as otherwise provided in this section, an
appeal under ORS 305.275 (1) or (2) shall be filed within 90 days
after the act, omission, order or determination becomes actually
known to the person, but in no event later than one year after
the act or omission has occurred, or the order or determination
has been made. An appeal under ORS 308.505 to 308.665 shall be
filed within the time prescribed under ORS 308.595. An appeal
from a supervisory order or other order or determination of the
Department of Revenue shall be filed within 90 days after the
date a copy of the order or determination or notice of the order
or determination has been served upon the appealing party by mail
as provided in ORS 306.805.
(2) An appeal under ORS 323.416 or from any notice of
assessment or refund denial issued by the Department of Revenue
with respect to a tax imposed under ORS chapter 118, 308, 308A,
310, 314, 316, 317, 318 { - , - } { + or + } 321 { + or the
Sales and Use Tax Law + } or this chapter, or collected pursuant
to ORS 305.620, shall be filed within 90 days after the date of
the notice. An appeal from a proposed adjustment under ORS
305.270 shall be filed within 90 days after the date the notice
of adjustment is final.
(3) Notwithstanding subsection (2) of this section, an appeal
from a notice of assessment of taxes imposed under ORS chapter
314, 316, 317 or 318 may be filed within two years after the date
the amount of tax, as shown on the notice and including
appropriate penalties and interest, is paid.
(4) Except as provided in subsection (2) of this section or as
specifically provided in ORS chapter 321, an appeal to the tax
court under ORS chapter 321 or from an order of a county board of
property tax appeals shall be filed within 30 days after the date
of the notice of the determination made by the department or date
of mailing of the order, date of publication of notice of the
order or date of mailing of the notice of the order to the
taxpayer, whichever is applicable.
(5) If the tax court denies an appeal made pursuant to this
section on the grounds that it does not meet the requirements of
this section or ORS 305.275 or 305.560, the tax court shall issue
a written decision rejecting the petition and shall set forth in
the decision the reasons the tax court considered the appeal to
be defective.
{ +
(Refunds) + }
SECTION 160. ORS 305.270 is amended to read:
305.270. (1) If the amount of the tax shown as due on a report
or return originally filed with the Department of Revenue with
respect to a tax imposed under ORS chapter 118, 308, 308A, 310,
314, 316, 317, 318 or 321 { + or the Sales and Use Tax Law + },
or collected pursuant to ORS 305.620, or as corrected by the
department, is less than the amount theretofore paid, or if a
person files a claim for refund of any tax paid to the department
under such laws within the period specified in subsection (2) of
this section, any excess tax paid shall be refunded by the
department with interest as provided in this section and ORS
314.415.
(2) The claim shall be made on a form prescribed by the
department, except that an amended report or return showing a
refund due and filed within the time allowed by this subsection
for the filing of a claim for refund, shall constitute a claim
for refund. The claim shall be filed within the period specified
in ORS 314.415 (1)(b) for taxes imposed under ORS chapters 310,
314, 316, 317 and 318 { + and the Sales and Use Tax Law + }, or
collected pursuant to ORS 305.620 (except where any applicable
ordinance specifies another period), within the period specified
in ORS 118.100 (2) for taxes imposed under ORS chapter 118 and
within two years of the payment of any tax under ORS chapter 308,
308A or 321.
(3) Upon receipt of a claim for refund, or original report or
return claiming a refund, the department shall either refund the
amount requested or send to the claimant a notice of any proposed
adjustment to the refund claim, stating the basis upon which the
adjustment is made. A proposed adjustment may either increase or
decrease the amount of the refund claim or result in the finding
of a deficiency. If the proposed adjustment results in a
determination by the department that some amount is refundable,
the department may send the claimant the adjusted amount with the
notice.
(4)(a) The notice of proposed adjustment shall be accompanied
by a statement explaining the claimant's right to make written
objections to the refund adjustment, the claimant's right to
request a conference and the procedure for requesting a
conference. The statement, and an accompanying form, shall also
explain that conference determinations are routinely transmitted
via regular mail and that a claimant desiring to have conference
determinations transmitted by certified mail may do so by
indicating on the form the claimant's preference for certified
mail and by returning the form with the claimant's written
objections as described in paragraph (b) of this subsection.
(b) The claimant may, within 30 days of the date of the notice
of proposed adjustment, advise the department in writing of
objections to the refund adjustment and may request a conference
with the department, which shall be held within one year of the
date of the notice. The department shall notify the claimant of a
time and place for the conference, and appoint a conference
officer to meet with the claimant for an informal discussion of
the claim. After the conference, the conference officer shall
send a determination of the matter to the claimant. The
determination letter shall be sent by regular mail, or by
certified mail if the claimant has indicated a preference for
transmission of the determination by certified mail. The
department shall issue either a notice of refund denial or
payment of any amount found to be refundable, together with any
applicable interest provided by this section. If the conference
officer determines that a deficiency exists, the department shall
issue a notice of assessment.
(5) If no conference is requested, and the adjustments have not
resulted in the finding of a deficiency, the following shall
apply:
(a) If written objections have been made by the claimant, the
department shall consider the objections, determine any issues
raised and send the claimant a notice of refund denial or payment
of any amount found to be refundable, together with any interest
provided by this section.
(b) If no written objections are made, the notice of any
proposed adjustment shall be final after the period for
requesting a conference or filing written objections has expired.
(6) If no conference is requested, and the notice of proposed
adjustment has asserted a deficiency, the department shall
consider any objections made by the person denied the refund,
make a determination of any issues raised, pay any refunds found
due, with applicable interest, or assess any deficiency and mail
a notice thereof within one year from the date of the notice of
deficiency, unless an extension of time is agreed upon as
described in subsection (7) of this section.
(7) If, prior to the expiration of any period of time
prescribed in subsection (6) of this section for giving of notice
of assessment, the department and the person consent in writing
to the deficiency being assessed after the expiration of such
prescribed period, such deficiency may be assessed at any time
prior to the expiration of the period agreed upon. The period so
agreed upon may be extended by subsequent agreements in writing
made before the expiration of the period agreed upon.
(8) If the department refunds the amount requested as provided
in subsection (3) of this section, without examination or audit
of the refund claim, the department shall give notice of this to
the claimant at the time of making the refund. Thereafter, the
department shall have one year in which to examine or audit the
refund claim, and send the notice of proposed adjustment provided
for in subsection (3) of this section, in addition to any time
permitted in ORS 314.410 or 314.415.
(9) The failure to hold a requested conference within the
one-year period prescribed in subsection (4) of this section
shall not invalidate any assessment of deficiency made within the
one-year period pursuant to subsection (8) of this section or
within any extension of time made pursuant to subsection (7) of
this section, but shall invalidate any assessment of interest or
penalties attributable to the deficiency. After an assessment has
been made, the department and the person assessed may still hold
a conference within 90 days from the date of assessment. If a
conference is held, the 90-day period under ORS 305.280 (2) shall
run from the date of the conference officer's written
determination of the issues.
(10) The claimant may appeal any notice of proposed adjustment,
refund denial or notice of assessment in the manner provided in
ORS 305.404 to 305.560. The failure to file written objections or
to request or have a conference shall not affect the rights of
appeal so provided. All notices and determinations shall set
forth rights of appeal.
{ +
COLLECTION OF TAX + }
SECTION 161. { + Tax as debt. All taxes, interest and
penalties due and unpaid under the Sales and Use Tax Law shall
become, from the time liability is incurred, a personal debt, due
the State of Oregon, from the person or persons liable for the
taxes, interest and penalties. + }
SECTION 162. { + Jeopardy determination. If the Department of
Revenue believes that any determination or collection of any
sales or use tax or any amount of sales or use tax required to be
collected and paid to the state will be jeopardized by delay, it
shall make a determination of the tax or amount of tax required
to be collected, noting that fact upon the determination. The
amount determined is immediately due and payable, and the
department shall assess the tax, notify the person and proceed to
collect the tax in the same manner and using the same procedures
as for the collection of income taxes under ORS 314.440. + }
SECTION 163. { + Warrant for collection. (1) If any tax
imposed under the Sales and Use Tax Law or any portion of the tax
is not paid within the time provided by law and no provision is
made to secure the payment of the tax by bond, deposit or
otherwise, pursuant to rules adopted by the Department of
Revenue, the department may issue a warrant under its official
seal directed to the sheriff of any county of this state
commanding the sheriff to levy upon and sell the real and
personal property of the taxpayer found within the county, for
the payment of the amount of the tax, with the added penalties,
interest and the sheriff's cost of executing the warrant, and to
return the warrant to the department and pay to it the money
collected from the sale, within 60 days after the date of receipt
of the warrant.
(2) The sheriff shall, within five days after the receipt of
the warrant, record with the clerk of the county a copy of the
warrant, and the clerk shall immediately enter in the County
Clerk Lien Record the name of the taxpayer mentioned in the
warrant, the amount of the tax or portion of the tax and
penalties for which the warrant is issued and the date the copy
is recorded. The amount of the warrant so recorded shall become a
lien upon the title to and interest in real property of the
taxpayer against whom it is issued in the same manner as a
judgment duly docketed. The sheriff immediately shall proceed
upon the warrant in all respects, with like effect and in the
same manner prescribed by law in respect to executions issued
against property upon judgment of a court of record, and shall be
entitled to the same fees for services in executing the warrant,
to be added to and collected as a part of the warrant liability.
(3) In the discretion of the department, a warrant of like
terms, force and effect may be issued and directed to any agent
authorized to collect the taxes imposed by the Sales and Use Tax
Law. In the execution of the warrant, the agent shall have all
the powers conferred by law upon sheriffs, but is entitled to no
fee or compensation in excess of actual expenses paid in the
performance of such duty.
(4) If a warrant is returned not satisfied in full, the
department shall have the same remedies to enforce the claim for
taxes against the taxpayer as if the people of this state had
recovered judgment against the taxpayer for the amount of the
tax. + }
SECTION 164. { + Indian reservations; refund agreements. (1)
The Director of the Department of Revenue is authorized to enter
into a sales and use tax refund agreement with the governing body
of any Indian reservation in Oregon. The agreement may provide
for a mutually agreed upon amount as a refund to the governing
body of any sales or use tax collected under the Sales and Use
Tax Law in connection with the sale, use, storage or consumption
of tangible personal property on the Indian reservation. This
provision is in addition to other laws allowing tax refunds.
(2) There is annually appropriated to the director from the
suspense account established under section 180 of this 2003 Act,
the amounts necessary to make the refunds provided by subsection
(1) of this section. + }
SECTION 165. { + Security. (1) If the Department of Revenue
considers such action necessary to ensure compliance with the
Sales and Use Tax Law, it may require any person subject to the
Sales and Use Tax Law to place with the department such security
as the department may determine.
(2) The amount of the security shall be fixed by the department
but, except as provided in subsection (3) of this section, may
not be greater than twice the estimated tax liability of a person
for the reporting period under the Sales and Use Tax Law,
determined in such manner as the department considers proper.
(3) In the case of a person that, pursuant to section 70 of
this 2003 Act, has been given notice of proposed revocation or
suspension of permit, the amount of the security may not be
greater than twice the tax liability of the person for the
reporting period under the Sales and Use Tax Law, determined in
such manner as the department considers proper, or $10,000,
whichever is greater.
(4) The limitations provided in this section apply regardless
of the type of security placed with the department. The required
amount of the security may be increased or decreased by the
department subject to the limitations provided in this
section. + }
SECTION 166. ORS 305.130 is amended to read:
305.130. (1) The Department of Revenue may be made a party in
any action in any court of this state or of the United States
having jurisdiction of the subject matter to quiet title to, to
remove a cloud from the title to, or for the foreclosure of a
mortgage or other lien upon, any real property or personal
property, or both, upon which the State of Oregon has or claims
to have a lien under ORS 311.673, 311.679, 311.771, 314.430
{ - , - } { + or + } 321.570 or the Tobacco Products Tax Act
(ORS 323.500 to 323.640) { + or the Sales and Use Tax Law + },
and the judgment in such action shall be conclusive and binding
upon the State of Oregon and such department.
(2) The complaint in such action shall set forth with
particularity the nature of any such lien had or claimed by the
State of Oregon. The summons in such action, together with a copy
of the complaint therein, shall be served on such department in
the manner prescribed by ORCP 7 D(3)(d), and such summons shall
require such department to appear and answer the complaint within
60 days from the date of such service.
SECTION 167. ORS 305.140 is amended to read:
305.140. (1) Any person having an interest in or lien upon any
real property may request the Department of Revenue in writing to
release such real property from a cloud on the title of or lien
on such property existing, created or continued under any one or
more of the following:
(a) A warrant provided for in ORS 314.430, 321.570 or 323.610
{ + or section 163 of this 2003 Act + }; or
(b) The provisions of ORS 311.673, 311.679, 311.689, 311.711 or
311.771.
(2) If, upon a request under subsection (1) of this section,
the department finds that a sale of such real property would not
result in satisfaction in whole or in part of the taxes due, it
shall execute a release of such cloud or lien upon such property,
and such release shall be conclusive evidence of the removal and
extinguishment of such cloud or lien in respect of such real
property.
(3) In addition to the release of cloud or lien provided for in
subsection (1) of this section, the department may execute
releases on part or all of any real property in the following
cases, which releases shall be conclusive evidence of the removal
and extinguishment of such cloud or lien:
(a) If the department finds that liability for the amount
assessed, together with all interest thereon and penalties and
costs in respect thereof, has been satisfied;
(b) If the department finds that the fair market value of that
part of the property remaining subject to the cloud or lien is at
least double the amount of the liability remaining unsatisfied in
respect of such tax and the amount of all prior liens upon the
property;
(c) If there is supplied to the department either an
irrevocable letter of credit issued by an insured institution as
defined in ORS 706.008 or a bond, in such form and with such
surety as the department considers sufficient, conditioned upon
the payment of the amount of the warrant, together with all
interest in respect thereof, within 60 days after the issuance of
the release; or
(d) If there is paid to the department in partial satisfaction
of the amount of the warrant provided for in ORS 314.430, 321.570
or 323.610 { + or section 163 of this 2003 Act + } or the amount
of any lien under ORS 311.673, 311.679, 311.689, 311.711 or
311.771, an amount not less than the value, as determined by the
department, of the lien of the State of Oregon upon the part of
the property so to be released. In determining such value the
department shall give consideration to the fair market value of
the part of the property so to be released and to such liens
thereon as have priority to the lien of the State of Oregon.
SECTION 168. ORS 305.850 is amended to read:
305.850. (1) Notwithstanding any provision to the contrary in
ORS 9.320 and 305.610, the Director of the Department of Revenue
may engage the services of a collection agency to collect any
taxes, interest and penalties resulting from an assessment of
taxes or additional taxes imposed by ORS chapters 118, 310, 314,
316, 317, 318, 320 { - , - } { + and + } 321, ORS 323.005 to
323.482 and the Tobacco Products Tax Act (ORS 323.500 to 323.640)
{ + and the Sales and Use Tax Law + } and any other tax laws
administered by the Department of Revenue. The director may
engage the services of a collection agency by entering into an
agreement to pay reasonable charges on a contingent fee or other
basis.
(2) The director shall cause to be collected, in the same
manner as provided in subsection (1) of this section,
assessments, taxes and penalties due under ORS chapter 656. All
amounts collected pursuant to this subsection shall be credited
as provided in ORS 293.250.
(3) The director may assign to the collection agency, for
collection purposes only, any of the taxes, penalties, interest
and moneys due the state.
(4) The collection agency may bring such action or take such
proceedings, including but not limited to attachment and
garnishment proceedings, as may be necessary.
SECTION 169. ORS 305.895 is amended to read:
305.895. (1) Except as provided in ORS 314.440 or other
jeopardy assessment procedure, the Department of Revenue shall
take no action against a taxpayer's real or personal property
before issuing a warrant for the collection of the tax as
provided in ORS 314.430, 320.080, 321.570 and 324.190 { + and
section 163 of this 2003 Act + }.
(2) Prior to issuing a warrant for collection of any tax
collected by the department, the department shall send the
taxpayer a written notice and demand for payment. The notice
shall:
(a) Be sent by mail, addressed to the taxpayer at the
taxpayer's last-known address.
(b) Inform the taxpayer that if the tax or any portion of the
tax is not paid within 30 days after the date of the notice and
demand for payment, a warrant may be issued and recorded as
provided in ORS 314.430, 320.080, 321.570 and 324.190 { + and
section 163 of this 2003 Act + }.
(c) Describe in clear nontechnical terms the legal authority
for the warrant.
(d) Contain the name, office mailing address and office
telephone number of the person issuing the warrant and advise the
taxpayer that questions or complaints concerning the warrant,
other than liability for the underlying tax, may be directed to
that person.
(e) Include alternatives available to the taxpayer which would
prevent issuance of the warrant.
SECTION 170. { + State's remedies cumulative. The remedies of
the state provided for in the Sales and Use Tax Law are
cumulative, and no action taken by the Department of Revenue or
the Attorney General constitutes an election by the state to
pursue any remedy to the exclusion of any other remedy for which
provision is made in the Sales and Use Tax Law. + }
{ +
COURT APPEALS + }
SECTION 171. ORS 305.565 is amended to read:
305.565. (1) Except as provided in subsection (2) of this
section, proceedings for the collection of any taxes, interest or
penalties resulting from an assessment of additional taxes
imposed by ORS chapter 118, 310, 314, 316, 317, 318 { - , - }
{ + or + } 321 { + or the Sales and Use Tax Law + } or this
chapter shall be stayed by the taking or pendency of any appeal
to the tax court.
(2) Notwithstanding subsection (1) of this section, the
Department of Revenue may proceed to collect any taxes, interest
or penalties described in subsection (1) of this section if the
department determines that collection will be jeopardized if
collection is delayed or that the taxpayer has taken a frivolous
position in the appeal. For purposes of this subsection:
(a) Collection of taxes, interest or penalties will be
jeopardized if the taxpayer designs quickly to depart from the
state or to remove the taxpayer's property from the state, or to
do any other act tending to prejudice or to render wholly or
partially ineffectual proceedings to collect the tax.
(b) A taxpayer's position in an appeal is frivolous if that
position is of the kind described in ORS 316.992 (5).
(3) No proceeding for the apportionment, levy or collection of
taxes on any property shall be stayed by the taking or pendency
of any appeal to the tax court, or from an order of the county
board of property tax appeals or the Oregon Tax Court, unless the
assessor or tax collector either as a party to the suit or an
intervenor, requests a stay and it appears to the satisfaction of
the court that a substantial public interest requires the
issuance of a stay.
(4) The tax court may, as a condition of a stay, require the
posting of a bond sufficient to guarantee payment of the tax.
Payment of taxes while appeal is pending shall not operate as a
waiver of the appeal or of a right to refund of taxes found to be
excessively charged or assessed.
{ +
ADMINISTRATION + }
SECTION 172. { + Department to administer and enforce Sales
and Use Tax Law; rules. The Department of Revenue shall
administer and enforce the provisions of the Sales and Use Tax
Law. The department shall adopt and enforce rules relating to the
administration and enforcement of the Sales and Use Tax Law. + }
SECTION 173. { + Records required. Every seller, every
retailer, every person described under sections 65 and 67 of this
2003 Act and every person storing, using or otherwise consuming
in this state tangible personal property purchased from a
retailer shall keep such records, receipts, invoices and other
pertinent papers in such form as the Department of Revenue may
require. + }
SECTION 174. { + Examination of records. (1) The Department
of Revenue or any person authorized in writing by it may examine,
during reasonable business hours, the books, papers, records and
equipment of any person selling tangible personal property and
any person liable for the use tax and may investigate the
character of the business of the person in order to verify the
accuracy of any return made, or, if no return is made by the
person, to ascertain and determine the amount required to be
paid. The department may require the attendance of any such
person and any other person having knowledge of the premises, and
may take testimony and require proof material for the
information, with power to administer oaths to such persons. The
department may, by order or subpoena, to be served with the same
force and effect and in the same manner that a subpoena is served
in a civil action in the circuit court, require the production,
at any time and place it may designate, of any books, papers,
accounts or other information necessary to carry out the Sales
and Use Tax Law.
(2) If any person fails to comply with any subpoena or order of
the department or to produce or permit the examination or
inspection of any books, papers, records or equipment pertinent
to any investigation or inquiry under this section, or to testify
to any matter regarding which the person may be lawfully
interrogated, the department may apply to the Oregon Tax Court,
or to the circuit court for the county in which the person
resides, for an order to the person to attend and testify or
otherwise comply with the demand or request of the department.
The application to the court shall be by ex parte motion, upon
which the court shall make an order requiring the person against
whom it is directed to comply with the request or demand of the
department within 10 days after service of the order (or such
further time as the court may grant) or to justify the failure
within that time. The order shall be served upon the person to
whom it is directed in the manner required by this state for
service of process, the service of which shall be required to
confer jurisdiction upon the court. Failure to obey any order
issued by the court under this section is contempt of court. The
remedy provided by this section is in addition to other remedies,
civil or criminal, existing under the tax laws or other laws of
this state. + }
SECTION 175. { + Reports required. (1) In the administration
of the use tax, the Department of Revenue may require the filing
of reports by any person or class of persons having in their
possession or custody information relating to sales of tangible
personal property, the storage, use or other consumption of which
may be subject to the tax imposed under section 73 of this 2003
Act.
(2) The reports shall be filed when the department requires and
must set forth:
(a) The names and addresses of purchasers of the tangible
personal property;
(b) The sales price of the property;
(c) The date of sale; and
(d) Such other information as the department requires. + }
SECTION 176. { + Divulging particulars of returns prohibited.
Except as otherwise specifically provided by law, it shall be
unlawful for the Department of Revenue or any officer or employee
of the department or other person having administrative duty
under the Sales and Use Tax Law to divulge or make known in any
manner the amount of gross receipts or purchase price or any
particulars set forth or disclosed in any report, return, claim
or other document required in the administration of the Sales and
Use Tax Law. It shall be unlawful for any person or entity to
whom information is disclosed or given by the department pursuant
to section 177 (2) of this 2003 Act or any other provision of
state law to divulge or use such information for any purpose
other than that specified in the provisions of law authorizing
the use or disclosure. No subpoena or judicial order shall be
issued compelling the Department of Revenue, the Department of
Transportation, the State Marine Board, the Oregon Department of
Aviation or any of their officers or employees, or any person who
has acquired information pursuant to section 177 (2) of this 2003
Act or any other provision of state law to divulge or make known
the amount of gross receipts or purchase price or any particulars
set forth or disclosed in any report, return, claim or other
document required in the administration of the Sales and Use Tax
Law except where the taxpayer's liability for sales or use tax is
to be adjudicated by the court from which such process issues. As
used in this section, 'officer,' 'employee' or 'person ' includes
an authorized representative of the officer, employee or person,
or any former officer, employee or person, or an authorized
representative of such former officer, employee or person. + }
SECTION 177. { + Persons to whom information may be
furnished. (1) The Department of Revenue, the Department of
Transportation, the State Marine Board and the Oregon Department
of Aviation may:
(a) Furnish any taxpayer or authorized representative of the
taxpayer, upon request of the taxpayer or representative, with a
copy of the taxpayer's sales or use tax return filed for any
reporting period, with a copy of any report filed by the taxpayer
in connection with the return or with a copy of a sales tax
refund claim filed under ORS 305.270.
(b) Publish lists of taxpayers who are entitled to unclaimed
tax refunds.
(c) Publish statistics so classified as to prevent the
identification of gross receipts or purchase price or any
particulars contained in any report or return.
(d) Publish lists of retailers or sellers to whom permits have
been issued or whose permits have been suspended or revoked under
the Sales and Use Tax Law.
(2) The Department of Revenue, the Department of
Transportation, the State Marine Board and the Oregon Department
of Aviation also may disclose and give access to information
described in section 176 of this 2003 Act to:
(a) The Governor 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 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 and shall be
confined to whether the individual:
(i) Has filed returns with respect to the taxes imposed by the
Sales and Use Tax Law for those of the not more than three
immediately preceding years for which the individual was required
to file an Oregon sales or use 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 Sales and Use Tax
Law and the nature of the penalty.
(iv) Has been or is under investigation for possible criminal
offenses under the Sales and Use Tax Law.
(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. 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, the
Department of Transportation, the State Marine Board or the
Oregon Department of Aviation.
(b) The United States 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 that meets
the requirements of section 176 of this 2003 Act and this section
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 United
States 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 that meets the requirements of section 176
of this 2003 Act and this section 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 of Revenue, the
Department of Transportation, the State Marine Board or the
Oregon Department of Aviation deems disclosure or access
necessary for the performance of the duties of advising or
representing the Department of Revenue, the Department of
Transportation, the State Marine Board or the Oregon Department
of Aviation pursuant to ORS 180.010 to 180.240 and the tax laws
of this state.
(f) Employees of the State of Oregon, to the extent the
Department of Revenue, the Department of Transportation, the
State Marine Board or the Oregon Department of Aviation deems
disclosure or access necessary for such employees to perform
their duties under contracts or agreements between the Department
of Revenue, the Department of Transportation, the State Marine
Board or the Oregon Department of Aviation and any other
department, division, agency or subdivision of the State of
Oregon, in the administration of the tax laws.
(g) Other persons, partnerships, corporations and other legal
entities, and their employees, to the extent the Department of
Revenue, the Department of Transportation, the State Marine Board
or the Oregon Department of Aviation deems disclosure or access
necessary for the performance of such others' duties under
contracts or agreements between the Department of Revenue, the
Department of Transportation, the State Marine Board or the
Oregon Department of Aviation and such legal entities, in the
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 of Revenue, the Department of Transportation, the
State Marine Board or the Oregon Department of Aviation any
materials that would reveal the identity of any taxpayer or any
other person.
(i) The Secretary of State as Auditor of Public Accounts under
section 2, Article VI of the Oregon Constitution.
(3) Each officer or employee of the Department of Revenue, the
Department of Transportation, the State Marine Board or the
Oregon Department of Aviation and each person described or
referred to in subsection (2)(a) or (e) to (i) 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 sections 176 and 182 of this 2003 Act,
relating to penalties for the violation of section 176 of this
2003 Act, and shall as a condition of employment or performance
of duties execute a certificate, in a form prescribed by the
Department of Revenue, 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 section 176 of this 2003 Act. + }
SECTION 178. { + Publication of statistics. The Department of
Revenue shall prepare and publish statistics, reasonably
available, with respect to the operation of the Sales and Use Tax
Law, including amounts collected, classification of taxpayers and
other facts considered by the department to be pertinent and
valuable. + }
{ +
DISPOSITION OF PROCEEDS + }
SECTION 179. { + Payments to Department of Revenue. All fees,
taxes, interest and penalties imposed and all amounts of tax
required to be paid to this state under the Sales and Use Tax
Law, except those collected by the Department of Transportation,
shall be paid to the Department of Revenue, and upon receipt by
the Department of Revenue shall be turned over to the State
Treasurer, to be disposed of as provided in sections 180 and 181
of this 2003 Act. + }
SECTION 180. { + Suspense account. All moneys received by the
Department of Revenue under the Sales and Use Tax Law shall be
deposited in the State Treasury and credited to a suspense
account established under ORS 293.445. Refunds, including refunds
of erroneous overpayments or refunds of other moneys received
under the Sales and Use Tax Law in which the department has no
legal interest, shall be paid out of the suspense account. After
payments of refunds, the balance shall be deposited in the Sales
Tax Fund established under section 181 of this 2003 Act. + }
SECTION 181. { + Sales Tax Fund. (1) The Sales Tax Fund is
established in the State Treasury, separate and distinct from the
General Fund. Interest earned by the Sales Tax Fund shall be
credited to the fund.
(2) Moneys in the Sales Tax Fund are dedicated to funding
kindergarten through grade 12 public education in this state. + }
{ +
PENALTIES + }
SECTION 182. { + Penalties; failure to file proper returns.
(1) If a person or an officer or employee of a corporation or a
member or employee of a partnership violates section 155 (1)(a)
or (b) of this 2003 Act, the Department of Revenue shall assess
against the person a civil penalty of not more than $1,000. The
penalty shall be recovered as provided in subsection (5) of this
section.
(2) A person or an officer or employee of a corporation or a
member or employee of a partnership who violates section 155
(1)(c) or (2) of this 2003 Act is liable to a penalty of not more
than $1,000, to be recovered in the manner provided in subsection
(5) of this section, and is also guilty of a Class C felony.
(3) Violation of section 176 of this 2003 Act is a Class C
felony. If the offender is an officer or employee of this state,
the offender shall be dismissed from office and shall be
incapable of holding any public office in this state for a period
of five years thereafter.
(4) If any person violates any provision of the Sales and Use
Tax Law other than sections 155 and 176 of this 2003 Act, the
department shall assess against the person a civil penalty of not
more than $1,000, to be recovered as provided in subsection (5)
of this section.
(5) Any person against whom a penalty is assessed under this
section may appeal to the Oregon Tax Court as provided in ORS
305.275. If the penalty is not paid within 10 days after the
order of the department becomes final, the department may record
the order and collect the amount assessed in the same manner as
income tax deficiencies are recorded and collected under ORS
314.430. + }
SECTION 183. { + Penalties additional to all other penalties.
The penalties provided in section 182 of this 2003 Act are in
addition to all other penalties provided under the Sales and Use
Tax Law. + }
{ +
MISCELLANEOUS PROVISIONS + }
SECTION 184. { + Sales and use tax in addition to other
taxes; local sales tax prohibited. (1) Unless otherwise
specifically provided by law, the taxes imposed under the Sales
and Use Tax Law are in addition to and not in lieu of any other
taxes or excises imposed by the State of Oregon or any county,
city, district or other municipal corporation or political
subdivision of this state.
(2) No general retail sales and use tax upon the sale of or the
storage, use or consumption of tangible personal property shall
be imposed by any county, city, district or other municipal
corporation or political subdivision of this state. + }
SECTION 185. ORS 803.585 is amended to read:
803.585. (1) Except as otherwise provided in this section, ORS
801.041, 801.042 or 820.500, the registration fees under the
vehicle code are in lieu of all other taxes and licenses, except
{ + taxes imposed under the Sales and Use Tax Law or + }
municipal license fees under regulatory ordinances, to which such
vehicles or the owners thereof may be subject. Fixed load
vehicles are not exempt from ad valorem taxation by this section.
(2) Travel trailers subject to registration and titling under
the vehicle code are not subject to ad valorem taxation except as
provided in ORS 308.880.
SECTION 186. ORS 802.110 is amended to read:
802.110. Any procedures the Department of Transportation
establishes for financial administration of those functions of
the department dealing with driver and motor vehicle services and
for the disposition and payment of moneys it receives from the
provision of driver and motor vehicle services shall comply with
all of the following:
(1) The department shall deposit all moneys it receives related
to driver and motor vehicle services in the Department of
Transportation Driver and Motor Vehicle Suspense Account for
approved expenses and disbursals before payment of general
administrative expenses of the department related to the
provision of driver and motor vehicle services. Notwithstanding
this subsection, the department may return a bank check or money
order when received in incorrect or incomplete form or when not
accompanied by the proper application { + , unless the check or
money order is presented in partial or complete payment of use
tax, as defined in section 57 of this 2003 Act. Any bank check or
money order received by the department that is in any part
presented for payment of sales or use tax liability pursuant to
section 100, 102 or 120 of this 2003 Act shall be retained by the
department. A receipt shall be given for the retained check or
money order + }.
(2) The department shall pay the following approved expenses
and disbursals from the Department of Transportation Driver and
Motor Vehicle Suspense Account before payment of the general
administrative expenses of the department related to driver and
motor vehicle services:
(a) Refunds authorized by any statute administered by the
department when such refunds are approved by the department.
(b) Amounts transferred to the State Treasurer under ORS
319.410 (2) for the purpose of carrying out the state aviation
laws, amounts transferred to the Boating Safety, Law Enforcement
and Facility Account by ORS 319.415, amounts transferred to the
State Aviation Account by ORS 319.417 and amounts transferred to
the Department of Transportation Operating Fund by ORS 184.643.
(c) After deduction of expenses of collection, transfer and
administration, the department shall pay moneys collected from
the Student Driver Training Fund eligibility fee under ORS
807.040, 807.150 and 807.370 to the State Treasurer for deposit
in the Student Driver Training Fund. The moneys deposited in the
Student Driver Training Fund under this paragraph are
continuously appropriated to the department for the following
purposes:
(A) To the extent of not more than 10 percent of the amount
transferred into the Student Driver Training Fund in any
biennium, to pay the expenses of administering ORS 336.795,
336.800, 336.805, 336.810 (2) and 336.815.
(B) The remaining moneys, for reimbursing school districts as
provided under ORS 336.805.
(d) After deduction of expenses of collection, transfer and
administration, the department shall pay moneys collected for the
Motorcycle Safety Subaccount under ORS 807.170 to the State
Treasurer for deposit in the Motorcycle Safety Subaccount of the
Transportation Safety Account. Moneys paid to the State Treasurer
under this paragraph shall be used for the purpose of ORS
802.320.
(e) After deduction of expenses for the administration of the
issuance of customized registration plates under ORS 805.240, the
department shall place moneys received from the sale of
customized registration plates in the Environmental Quality
Information Account. The moneys placed in the account are
continuously appropriated to the department and shall be used for
the payment of expenses heretofore and hereafter incurred in
administering programs established under ORS 366.157.
(f) After deduction of expenses of collection, transfer and
administration, the department shall pay moneys from any
registration fees established by the governing bodies of counties
or a district, as defined in ORS 801.237, under ORS 801.041 or
801.042 to the appropriate counties or districts. The department
shall make the payments on at least a monthly basis unless
another basis is established by the intergovernmental agreements
required by ORS 801.041 and 801.042 between the department and
the governing bodies of a county or a district.
(g) After deducting the expenses of the department in
collecting and transferring the moneys, the department shall make
disbursals and payments of moneys collected for or dedicated to
any other purpose or fund except the State Highway Fund,
including but not limited to, payments to the Department of
Transportation Operating Fund established by ORS 184.642 (1) and
(2).
{ + (h) After deducting the expenses of the department in
collecting the use tax, as defined in section 57 of this 2003
Act, the department shall transfer the use tax moneys collected
under section 102 of this 2003 Act to the Sales Tax Fund. + }
(3) The department shall refund from the Department of
Transportation Driver and Motor Vehicle Suspense Account any
excess or erroneous payment to a person who made the payment or
to the person's legal representative when the department
determines that money has been received by it in excess of the
amount legally due and payable or that it has received money in
which it has no legal interest. Refunds payable under this
subsection are continuously appropriated for such purposes in the
manner for payment of refunds under this section. If the
department determines that a refund is due, the department may
refund the amount of excess or erroneous payment without a claim
being filed. Except as provided in ORS 319.290, 319.375, 319.820
and 319.831, any claim for a refund from the department must be
filed within 12 months after the date payment is received by the
department.
(4) After payment of those expenses and disbursals approved for
payment before general administrative expenses related to the
provision of driver and motor vehicle services, the department
shall pay from the Department of Transportation Driver and Motor
Vehicle Services Administrative Account its general
administrative expenses incurred in the administration of any law
related to driver and motor vehicle services that the department
is charged with administering and any other expenses the
department is permitted by law to pay from moneys held by the
department before transfer of the moneys to the State Highway
Fund. The following limitations apply to payments of
administrative expenses under this subsection:
(a) The department shall make payment of the expenses of
administering the issuance of winter recreation parking permits
under ORS 811.595 from those moneys received from issuing the
permits or from moneys received under ORS 153.630 from violation
of the requirement to have the permit.
(b) The department shall pay its expenses for administering the
registration and titling of snowmobiles under ORS 821.060 and
821.100 from the fees collected from administering those
sections. The department shall also pay its expenses for the
administration of the snowmobile driver permit program under ORS
821.160 from the moneys otherwise described in this paragraph.
(c) The department shall pay its expenses for determining the
amount of money to be withheld under ORS 802.120 from the fees
collected for administering the registration and titling of
snowmobiles. The amount used to pay expenses under this paragraph
shall be such sum as necessary but shall not exceed $10,000
during each biennium.
(d) The department shall retain not more than $15,000 in any
biennium for the expenses of collecting and transferring moneys
to the Student Driver Training Fund under this section and for
the administration of ORS 336.810 (3).
(e) The department shall pay its expenses for collecting title,
registration, exemption and trip permit fees for manufactured
structures and for the performance of its duties required under
ORS 820.500 to 820.580 from the fees collected for such purposes.
Except as provided in ORS 366.512, moneys from the described fees
that remain after payment of the department's expenses shall be
transferred to the State Highway Fund to be used for the same
purpose as any tax or excise levied on the ownership, operation
or use of a motor vehicle.
(5) Except as otherwise provided in this subsection, the
department shall transfer to the State Highway Fund the moneys
not used for payment of the general administrative expenses or
for approved expenses and disbursals before payment of general
administrative expenses. The following apply to this subsection:
(a) If the Director of Transportation certifies the amount of
principal or interest of highway bonds due on any particular
date, the department may make available for the payment of such
interest or principal any sums that may be necessary to the
extent of moneys on hand available for the State Highway Fund
regardless of the dates otherwise specified under this section.
(b) Notwithstanding paragraph (a) of this subsection the
department shall not make available for purposes described in
paragraph (a) of this subsection any moneys described in ORS
367.605 when there are not sufficient amounts of such moneys in
the State Highway Fund for purposes of bonds issued under ORS
367.615.
(6) Notwithstanding any other provision of this section, the
following moneys shall be transferred to the State Highway Fund
at the times described:
(a) Moneys received under ORS 802.120 and not used for the
payment of administrative expenses of the department shall be
transferred before July 31 of each year.
(b) Moneys received from the registration of snowmobiles that
is not to be used for payment of administrative expenses of the
department shall be transferred within 30 days after the end of
the quarter.
(c) Moneys received from the issuance of winter recreation
parking permits or under ORS 153.630 from violation of the
requirement to have a winter recreation parking permit and that
is not used for payment of administrative expenses of the
department shall be transferred within 30 days after the end of
the quarter.
(7) The following moneys transferred to the State Highway Fund
under this section may be used only for the purposes described as
follows:
(a) Moneys collected from the issuance of winter recreation
parking permits or under ORS 153.630 for violation of the
requirement to have a winter recreation parking permit, and the
interest on such moneys, shall be used to enforce the requirement
for winter recreation parking permits and to remove snow from
winter recreation parking locations designated under ORS 810.170.
Any remaining moneys shall, upon approval by the Winter
Recreation Advisory Committee:
(A) Be used to maintain parking locations developed with moneys
obtained under ORS 810.170 and snowmobile facilities that are
parking lots developed with moneys as provided under this
section;
(B) Be used to develop additional winter recreation parking
locations under ORS 810.170; or
(C) Be carried over to be used in subsequent years for the
purposes and in the manner described in this paragraph.
(b) Moneys received from the registration of snowmobiles or
under ORS 802.120 shall be used for the development and
maintenance of snowmobile facilities, including the acquisition
of land therefor by any means other than the exercise of eminent
domain. Moneys received under ORS 802.120 may also be used for
the enforcement of ORS 811.590, 821.100 to 821.120, 821.140,
821.150, 821.190, 821.210 and 821.240 to 821.290.
(8) The department shall maintain the Revolving Account for
Emergency Cash Advances separate from other moneys described in
this section. From the account, the department may pay for the
taking up of dishonored remittances returned by banks or the
State Treasurer and for emergency cash advances to be
subsequently reimbursed. The account shall be used only as a
revolving fund. The department shall at all times be accountable
for the amount of the account, either in cash or unreimbursed
items and advances. The moneys in the account are continuously
appropriated for the purposes of this subsection. The amount of
the account under this subsection shall not exceed $40,000 from
moneys received by the department in the performance of its
driver and motor vehicle services functions and moneys otherwise
appropriated for purposes of this subsection. The account under
this subsection shall be kept on deposit with the State
Treasurer. The State Treasurer is authorized to honor and pay all
properly signed and indorsed checks or warrants drawn against the
account.
SECTION 187. ORS 801.040 is amended to read:
801.040. This section describes circumstances where special
provisions are made concerning the authority of cities, counties
or other political subdivisions in relation to some portion of
the vehicle code. This section is not the only section of the
vehicle code that applies to such authority and shall not be
interpreted to affect the vehicle code except as specifically
provided in this section. The following limits are partial or
complete as described:
(1) No county, municipal or other local body with authority to
adopt and administer local police regulations under the
Constitution and laws of this state shall enact or enforce any
rule or regulation in conflict with the provisions of the vehicle
code described in this subsection except as specifically
authorized in the vehicle code. This subsection applies to the
provisions of the vehicle code relating to abandoned vehicles,
vehicle equipment, regulation of vehicle size, weight and load,
the manner of operation of vehicles and use of roads by persons,
animals and vehicles.
(2) Except as provided in ORS 822.230 and this subsection, no
city, county or other political subdivisions shall regulate or
require or issue any registration, licenses, permits or surety
bonds or charge any fee for the regulatory or surety registration
of any person required to obtain a certificate from the
Department of Transportation under ORS 822.205. This subsection
does not:
(a) Limit any authority of a city or county to license and
collect a general and nondiscriminatory license fee levied upon
all businesses or to levy a tax based upon business conducted by
any person within the city or county.
(b) Limit the authority of any city or county to impose any
requirements or conditions as part of any contract to perform
towing or recovering services for the city or county.
(c) Limit the authority of any city or county to impose
requirements and conditions that govern the towing of a vehicle
by a towing business under ORS 98.812 so long as those
requirements and conditions are consistent with the provisions of
ORS 822.230.
(3) No city, county or other political subdivision of this
state, nor any state agency, may adopt a regulation or ordinance
that imposes a special fee for the use of public lands or waters
by snowmobiles or Class I all-terrain vehicles, or for the use of
any access thereto that is owned by or under the jurisdiction of
either the United States, this state or any such city, county or
other political subdivision. The registration fees provided by
ORS 821.320 are in lieu of any personal property { - or
excise - } tax { + or any registration or license fee + }
imposed on snowmobiles by this state or any political
subdivision. No city, county or other municipality, and no state
agency shall impose any other registration or license fee on any
snowmobile in this state. This subsection does not prohibit any
city, county or other political subdivision, or any state agency
from regulating the operation of snowmobiles or Class I
all-terrain vehicles on public lands, waters and other properties
under its jurisdiction and on streets or highways within its
boundaries by adopting regulations or ordinances of its governing
body if such regulations are not inconsistent with ORS 821.150 to
821.292.
(4) The provisions of ORS 819.100, 819.120, 819.150, 819.160
and 819.210 to 819.260 relating to removal of vehicles that are
abandoned establish minimum requirements subject to the
following:
(a) Notwithstanding paragraph (b) of this subsection, a county
or incorporated city may supersede such provisions by ordinance
or charter provision.
(b) Any road authority described under ORS 810.010 may adopt
rules or procedures that do not conflict with such provisions to
provide for additional protection for the owner or person with an
interest in a vehicle subject to such provisions or that more
quickly accomplish the procedures established under such
provisions.
(5) Any incorporated city may by ordinance require that the
driver of a vehicle involved in an accident file with a
designated city department a copy of any report required to be
filed under ORS 811.725. All such reports shall be for the
confidential use of the city department but subject to the same
requirements for release of such reports as provided for the
release of such reports by the department under ORS 802.220 and
802.240.
(6) Except as otherwise specifically provided in this section,
in accordance with the provisions of ORS 801.041, the governing
body of a county may establish by ordinance registration fees for
vehicles registered at a residence or business address within the
county.
(7) Except as otherwise specifically provided in this section,
in accordance with the provisions of ORS 801.042, the governing
body of a district may establish by ordinance registration fees
for vehicles registered at a residence or business address within
the district.
SECTION 188. ORS 731.840 is amended to read:
731.840. (1) The retaliatory tax imposed upon a foreign or
alien insurer under ORS 731.854 and 731.859, or the corporate
excise tax imposed upon a foreign or alien insurer under ORS
chapter 317, is in lieu of all other state taxes upon premiums,
taxes upon income, franchise or other taxes measured by income
that might otherwise be imposed upon the foreign or alien insurer
except the fire insurance premiums tax imposed under ORS 731.820
and the tax imposed upon wet marine and transportation insurers
under ORS 731.824 and 731.828. However, all real and personal
property, if any, of the insurer shall be listed, assessed and
taxed the same as real and personal property of like character of
noninsurers. Nothing in this subsection shall be construed to
preclude the imposition of the assessments imposed under ORS
656.612 upon a foreign or alien insurer.
(2) Subsection (1) of this section applies to a reciprocal
insurer and its attorney in its capacity as such.
(3) Subsection (1) of this section applies to foreign or alien
title insurers and to foreign or alien wet marine and
transportation insurers issuing policies and subject to taxes
referred to in ORS 731.824 and 731.828.
(4) The State of Oregon hereby preempts the field of regulating
or of imposing excise, privilege, franchise, income, license,
permit, registration, and similar taxes, licenses and fees upon
insurers and their agents and other representatives as such, and:
(a) No county, city, district, or other political subdivision
or agency in this state shall so regulate, or shall levy upon
insurers, or upon their agents and representatives as such, any
such tax, license or fee; except that whenever a county, city,
district or other political subdivision levies or imposes
generally on a nondiscriminatory basis throughout the
jurisdiction of the taxing authority a payroll, excise or income
tax, as otherwise provided by law, such tax may be levied or
imposed upon domestic insurers; and
(b) No county, city, district, political subdivision or agency
in this state shall require of any insurer, agent or
representative, duly authorized or licensed as such under the
Insurance Code, any additional authorization, license, or permit
of any kind for conducting therein transactions otherwise lawful
under the authority or license granted under this code.
{ + (5) Every foreign, alien or domestic insurer or health or
legal care service contractor not subject to the tax upon its
premiums as required by ORS 731.808 to 731.828 or who issues
policies the premiums from which are not subject to the gross
premiums tax and every foreign, alien or domestic insurer or
health or legal care service contractor subject to the gross
premiums tax shall not be subject to the taxes imposed by
sections 59 and 73 of this 2003 Act with respect to its sales or
purchases of insurance. However, this subsection shall not exempt
an insurer or health or legal care service contractor from the
taxes imposed by section 59 or 73 of this 2003 Act upon its
retail sales or purchases of tangible personal property. + }
{ +
SHORT TITLE + }
SECTION 189. { + Short title. Sections 32 to 157, 161 to 165,
170, 172 to 184 and 189 of this 2003 Act shall be known and may
be cited as the Sales and Use Tax Law. + }
{ +
APPLICATION; OPERATIVE DATE; CAPTIONS + }
{ +
REPEAL; EFFECTIVE DATE + }
SECTION 190. { + Application. (1) The sales tax imposed by
section 59 of this 2003 Act applies only to sales on or after the
operative date of this section.
(2) The sales tax does not apply to sales on or after the
operative date of this section under contracts, leases or rental
agreements that were made before the operative date of this
section. However, under a contract, lease or rental agreement
that was made before the operative date of this section, the
sales tax does apply to sales made after the date of any
extension or renewal of the contract, lease or rental agreement
occurring after the operative date of this section.
(3) The use tax imposed by section 73 of this 2003 Act applies
only to tangible personal property purchased on or after the
operative date of this section.
(4) The use tax does not apply to storage, consumption or use
on or after the operative date of this section under contracts,
leases or rental agreements that were made before the operative
date of this section. However, under a contract, lease or rental
agreement entered into before the operative date of this section,
the use tax does apply to storage, consumption and use made after
the date of any extension or renewal of the contract, lease or
rental agreement occurring after the operative date of this
section. A lessee, upon extension or renewal, shall have the
right to make the election under section 86 of this 2003 Act. + }
SECTION 191. { + Captions. The unit and section captions used
in this 2003 Act are provided only for the convenience of the
reader in locating provisions of this 2003 Act and do not become
part of the statutory law of this state or express any
legislative intent in the enactment of this 2003 Act. + }
SECTION 192. { + Operative date. (1) Sections 32 to 157, 161
to 165, 170, 172 to 184, 189 and 190 of this 2003 Act and the
amendments to statutes by sections 158 to 160, 166 to 169, 171
and 185 to 188 of this 2003 Act become operative on January 1,
2004.
(2) Notwithstanding subsection (1) of this section, sections 32
to 157, 161 to 165, 170, 172 to 184, 189 and 190 of this 2003 Act
and the amendments to statutes by sections 158 to 160, 166 to
169, 171 and 185 to 188 of this 2003 Act do not become operative
if this state has not entered into the Streamlined Sales and Use
Tax Agreement described in sections 23 to 31 of this 2003 Act by
January 1, 2004. + }
SECTION 193. { + Section 1 of this 2003 Act is repealed on
December 31, 2003. + }
SECTION 194. { + 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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