Chapter 680
AN ACT
HB 3048
Relating to surplus refunds; creating new provisions; amending ORS
291.349; and prescribing an effective date.
Be It Enacted by the People of
the State of
SECTION 1. ORS 291.349 is amended to read:
291.349. (1) As soon as
practicable after adjournment sine die of the regular session of the
Legislative Assembly, the Oregon Department of Administrative Services shall
report to the Emergency Board the estimate as of July 1 of the first year of
the biennium of General Fund and State Lottery Fund revenues that will be
received by the state during that biennium. The Oregon Department of
Administrative Services shall base its estimate on the last forecast given to
the Legislative Assembly before adjournment sine die of the regular session on
which the printed, adopted budget prepared in the Oregon Department of
Administrative Services is based, adjusted only insofar as necessary to reflect
changes in laws adopted at that session. The report shall contain the estimated
revenues from corporate income and excise taxes separately from the estimated
revenues from other General Fund sources. The Oregon Department of
Administrative Services may revise the estimate if necessary following
adjournment sine die of any special or emergency session of the Legislative
Assembly but any revision does not affect the basis of the computation
described in subsection (3) or (4) of this section.
(2) As soon as
practicable after the end of the biennium, the Oregon Department of Administrative
Services shall report to the Emergency Board, or the Legislative Assembly if it
is in session, the amount of General Fund revenues collected as of the last
June 30 of the preceding biennium. The report shall contain the collections
from corporate income and excise taxes separately from collections from other
sources.
(3) If the revenues
received from the corporate income and excise taxes during the biennium exceed
the amounts estimated to be received from such taxes for the biennium, as
estimated after adjournment sine die of the regular session, by two percent or
more, the total amount of that excess shall be credited to corporate income and
excise taxpayers in a percentage amount of prior year corporate excise
and income tax liability as determined under subsection (5) of this section.
However, no credit shall be allowed against tax liability imposed by ORS
317.090.
(4) If the revenues
received from General Fund revenue sources, exclusive of those described in
subsection (3) of this section, during the biennium exceed the amounts
estimated to be received from such sources for the biennium, as estimated after
adjournment sine die of the regular session, by two percent or more, there
shall be refunded from personal income tax revenues an amount equal to the
total amount of that excess, reduced by the cost certified by the Department of
Revenue under ORS 291.351 as being allocable to payments described under this
subsection. The excess amount to be refunded shall be paid to personal income
taxpayers in a percentage amount of prior year personal income tax liability as
determined under subsection (6) of this section.
(5)(a) If there
is an excess to be credited under subsection (3) of this section, on or before
October 1, following the end of each biennium, the Oregon Department of
Administrative Services shall determine and certify to the Department of
Revenue the percentage amount of credit for purposes of subsection (3) of this
section. The percentage amount determined shall be a percentage amount to the
nearest one-tenth of a percent that will distribute the excess to be credited
to corporate excise and income taxpayers [for
taxable years beginning in the calendar year during which the excess is
determined].
(b) The percentage
amount shall equal the amount distributed under subsection (3) of this section
divided by the estimated total corporate income and excise tax liability for
all corporate income and excise taxpayers for tax years beginning in the
calendar year immediately preceding the calendar year in which the excess is
determined.
(c) The amount of the
surplus credit is determined by multiplying the percentage amount determined
under paragraph (b) of this subsection by the total amount of a corporate
income or excise taxpayer’s tax liability for the tax year beginning in the
calendar year immediately preceding the calendar year in which the excess is
determined in order to calculate the amount to be credited to the taxpayer.
(d) The credit shall be
determined based on the tax liability as shown on the return of the taxpayer or
as corrected by the Department of Revenue.
(e) The credit shall be computed after the
allowance of any other credit or offset against tax liability allowed or
allowable under any provision of law of this state, and before the application
of estimated tax payments, withholding or other advance tax payments.
(f) If the credit is
applied against tax liability as described in paragraph (e) of this subsection
and reduces the tax liability to zero and an amount of the credit remains
unused, the unused amount shall be carried forward and applied against tax
liability as prescribed in paragraph (e) of this subsection in the succeeding
tax year. Following application of the credit against tax liability in a
succeeding tax year, any amount continuing to remain unused shall be carried
forward and applied against tax liability in a succeeding tax year until all
remaining amounts of unused credit are offset against tax liability.
(g) If an excess is
credited under subsection (3) of this section for a tax year and an unused
credit amount from a prior tax year is carried forward to the tax year as
prescribed under paragraph (f) of this subsection, the amount of the
carryforward credit shall be applied against tax liability prior to applying
the new credit.
(h) The Department of
Revenue may prescribe by rule the manner of calculating and claiming a credit
if the filing status of a corporation changes between the tax year described in
paragraph (b) of this subsection and the succeeding tax year.
(i) Notwithstanding any
other provision of law, if the tax liability of the taxpayer for the tax year
described in paragraph (b) of this subsection is adjusted by the Department of
Revenue or the taxpayer, the allowable credit under this subsection for a
succeeding tax year may also be adjusted to reflect the adjustment to tax
liability.
(6)(a) If there is an
excess to be refunded under subsection (4) of this section, on or before
September 15, following the end of each biennium, the Oregon Department of
Administrative Services shall determine and certify to the Department of
Revenue the percentage amount of refund payment for purposes of subsection (4)
of this section. The percentage amount so determined shall be a percentage
amount to the nearest one-hundredth of a percent that will distribute the
excess to be refunded to personal income taxpayers under subsection (4) of this
section. The percentage amount shall equal the amount distributed under
subsection (4) of this section divided by the estimated
total personal income tax liability for all personal income taxpayers for tax
years beginning in the calendar year immediately preceding the calendar year in
which the excess is determined.
(b) The Department of
Revenue shall multiply the percentage amount determined under paragraph (a) of
this subsection by the total amount of a personal income taxpayer’s tax
liability for the tax year beginning in the calendar year immediately preceding
the calendar year in which the excess is determined in order to calculate the
amount of the refund to be made to the taxpayer. For purposes of this
paragraph, the taxpayer’s tax liability is the amount shown on the return or as
adjusted by the Department of Revenue, and is determined:
(A) After the allowance
of any other credit or offset against tax liability allowed or allowable on the
return for the tax year; and
(B) Before the
application of estimated tax payments, withholding or other advance tax
payments.
[(c) The refund described under this subsection shall be subject to the
rules allowing setoff of refunds or sums due debtors of this state under ORS
293.250.]
[(d)] (c) The refund described under
this subsection shall be mailed by the Department of Revenue to personal income
taxpayers eligible for the payment on or before December [1] 15 following the end of the biennium for which the
payment described under this subsection is being made.
[(e)] (d) Notwithstanding paragraph
[(d)] (c) of this subsection,
the Department of Revenue shall mail the refund at the earliest date of
practicable convenience in the case of a return:
(A) For a tax year
beginning in the calendar year immediately preceding the calendar year in which
the excess is determined for which refund is being made; and
(B) That
is first filed on or after August 15 after the end of the biennium.
(7) No refund shall be
made to a taxpayer if, after making the calculation described under subsection
(6) of this section, the amount calculated is less than $1.
(8) For purposes of
ORS chapters 305 and 314 to 318, refunds issued under subsection (6) of this
section are refunds of an overpayment of tax imposed under ORS chapter 316.
SECTION 2. The amendments to ORS 291.349 by section 1
of this 2007 Act apply to calculations of refunds for biennia ending on or
after June 30, 2007.
SECTION 3. This 2007 Act takes effect on the 91st day
after the date on which the regular session of the Seventy-fourth Legislative
Assembly adjourns sine die.
Approved by the Governor June 27, 2007
Filed in the office of Secretary of State June 27, 2007
Effective date September 27, 2007
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