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 2471
 
                         Senate Bill 549
 
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.
 
  Increases maximum payroll tax rate that mass transit district
may impose in payroll tax reporting periods beginning on or after
January 1, 2004. Requires district to phase in increases over 10
years. Limits amount of each incremental rate increase.
  Takes effect on 91st day following adjournment sine die.
 
                        A BILL FOR AN ACT
Relating to mass transit district payroll taxes; creating new
  provisions; amending ORS 267.260 and 267.385; and prescribing
  an effective date.
Be It Enacted by the People of the State of Oregon:
  SECTION 1. ORS 267.385 is amended to read:
  267.385. (1) To carry out the powers granted by ORS 267.010 to
267.390, a district may by ordinance impose an excise tax on
every employer equal to not more than   { - six-tenths - }  { +
seven-tenths + } of one percent of the wages paid with respect to
the employment of individuals. For the same purposes, a district
may by ordinance impose a tax on each individual equal to not
more than
  { - six-tenths - }  { +  seven-tenths + } of one percent of the
individual's net earnings from self-employment.
  (2) No employer shall make a deduction from the wages of an
employee to pay all or any portion of a tax imposed under this
section.
  (3) The provisions of ORS 305.620 are applicable to collection,
enforcement, administration and distribution of a tax imposed
under this section.
  (4) At any time an employer or individual fails to remit the
amount of taxes when due under an ordinance of the district board
imposing a tax under this section, the Department of Revenue may
enforce collection by the issuance of a distraint warrant for the
collection of the delinquent amount and all penalties, interest
and collection charges accrued thereon. Such warrant shall be
issued, docketed and proceeded upon in the same manner and have
the same force and effect as prescribed with respect to warrants
for the collection of delinquent state income taxes.
  (5) Any ordinance adopted under subsection (1) of this section
shall require an individual having net earnings from
self-employment from activity both within and without the
district taxable by the State of Oregon to allocate and apportion
such net earnings to the district in the manner required for
allocation and apportionment of income under ORS 314.280 and
314.605 to 314.675.  Such ordinance shall give the individual the
option of apportioning income based on a single factor designated
by the ordinance.
  (6) Any ordinance adopted under subsection (1) of this section
with respect to net earnings from self-employment may impose a
tax for a taxable year measured by each individual's net earnings
from self-employment for the prior taxable year, whether such
prior taxable year begins before or after November 1, 1981, or
such ordinance.
  (7) Any ordinance imposing a tax authorized by subsection (1)
of this section shall not apply to any business, trade,
occupation or profession upon which a tax is imposed under ORS
267.360.
  SECTION 2.  { + Notwithstanding ORS 267.385 (1) and subject to
ORS 267.260 (3) and (6), an increase in any tax imposed on wages
or on net earnings from self-employment that is authorized by a
mass transit district under ORS 267.385 (1) on or after January
1, 2004, must be phased in over a 10-year period. The district
shall by ordinance set forth the increments by which the increase
in tax is phased in. Subject to ORS 267.260 (3) and (6), each
increment may not increase the rate of tax by more than .02
percent. + }
  SECTION 3.  { + Section 2 of this 2003 Act is repealed January
2, 2014. + }
  SECTION 4. ORS 267.260 is amended to read:
  267.260. (1) As used in this section, 'withdrawal date ' means
the effective date of an ordinance approving withdrawal of an
affected area under ORS 267.250 to 267.263.
  (2) An ordinance approving the withdrawal of an affected area
under ORS 267.250 to 267.263 shall take effect on the first day
of January next following the date which is 30 days after the
adoption of the ordinance.
  (3) Commencing immediately upon the withdrawal date and
notwithstanding any other provision of law, the rate of each tax
imposed by the district shall automatically be increased to a
rate equal to the rate determined by dividing the rate at which
such tax was levied immediately prior to the withdrawal date by a
fraction, not more than one, which is equal to the total revenue
derived from such tax by the district for the calendar year
preceding the year in which the withdrawal ordinance is adopted
attributable to the area of the district other than the withdrawn
affected area divided by the total revenue derived from such tax
by the district for the same period.
  (4) If the tax rates required under subsection (3) of this
section do not produce tax revenues sufficient to enable the
district to make the annual or semiannual payments, when due, and
otherwise satisfy the requirements of the bonded or other
indebtedness of the district incurred prior to the withdrawal,
the district may increase the rate of each tax to a rate that
produces revenues sufficient to enable the district to make the
annual or semiannual payments, when due, and otherwise satisfy
the requirements of such indebtedness.
  (5) The district board shall determine rates in accordance with
the formula prescribed by subsection (3) of this section and
adopt   { - it - }   { + the rates + } as part of the ordinance
approving the withdrawal of the affected area. Any such
determination and adoption shall be final and conclusive unless
it is shown to be arbitrary and capricious.
   { +  (6) If a district adopts an ordinance that increases the
rate of an excise tax described in ORS 267.385, the increase
shall be adjusted as prescribed in subsection (3) of this section
to take into account the withdrawal of an affected area that
occurred or occurs at any time after the date the district first
imposed any taxes pursuant to ORS 267.385. + }
 
  SECTION 5.  { + The amendments to ORS 267.260 and 267.385 by
sections 1 and 4 of this 2003 Act apply to payroll and
self-employment tax reporting periods beginning on or after
January 1, 2004. + }
  SECTION 6.  { + This 2003 Act takes effect on the 91st day
after the date on which the regular session of the Seventy-second
Legislative Assembly adjourns sine die. + }
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