74th OREGON LEGISLATIVE ASSEMBLY--2007 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 1358
House Bill 2347
Ordered printed by the Speaker pursuant to House Rule 12.00A (5).
Presession filed (at the request of House Interim Committee on
Judiciary)
SUMMARY
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.
Increases tax on wines, malt beverages and cider. Dedicates tax
moneys to funding alcohol and drug abuse treatment and prevention
and mental health treatment.
Applies to tax reporting periods beginning on or after January
1, 2008.
A BILL FOR AN ACT
Relating to mental health funding; creating new provisions;
amending ORS 221.770, 471.805, 471.810, 473.030, 473.035 and
473.047; and providing for revenue raising that requires
approval by a three-fifths majority.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 473.030 is amended to read:
473.030. (1) A tax is imposed upon the privilege of engaging in
business as a manufacturer or as an importing distributor of malt
beverages at the rate of $2.60 per barrel of 31 gallons on all
such beverages.
{ + (2) In addition to the tax imposed by subsection (1) of
this section, a manufacturer or an importing distributor of malt
beverages shall be taxed at the rate of $___ per barrel of 31
gallons. + }
{ - (2) - } { + (3) + } A tax is imposed upon the privilege
of engaging in business as a manufacturer or as an importing
distributor of wines at the rate of 65 cents per gallon on all
such beverages.
{ - (3) - } { + (4) + } In addition to the tax imposed by
subsection { - (2) - } { + (3) + } of this section, a
manufacturer or an importing distributor of wines containing more
than 14 percent alcohol by volume shall be taxed at the rate of
10 cents per gallon.
{ - (4) - } { + (5) + } In addition to the taxes imposed by
subsections
{ - (2) and (3) - } { + (3) and (4) + } of this section, a
manufacturer or an importing distributor of wines shall be taxed
at the rate of two cents per gallon. Notwithstanding any other
provision of law, all moneys collected by the Oregon Liquor
Control Commission pursuant to this subsection shall be paid into
the account established by the Oregon Wine Board under ORS
182.470.
{ + (6) In addition to the taxes imposed by subsections (3)
to (5) of this section, a manufacturer or an importing
distributor of wines shall be taxed at the rate of $___ per
gallon. + }
{ - (5) - } { + (7) + } The rates of tax imposed by this
section upon malt beverages apply proportionately to quantities
in containers of less capacity than those quantities specified in
this section.
{ - (6) - } { + (8) + } The taxes imposed by this section
shall be measured by the volume of wine or malt beverages
produced, purchased or received by any manufacturer. If the wine
or malt beverage remains unsold and in the possession of the
producer at the plant where it was produced, no tax imposed or
levied by this section is required to be paid until the wine or
malt beverage has become sufficiently aged for marketing at
retail, but this subsection shall not be construed so as to alter
or affect any provision of this chapter relating to tax liens or
the filing of statements.
SECTION 2. ORS 473.035 is amended to read:
473.035. (1) A tax is imposed upon the privilege of engaging in
business as a manufacturer or as an importing distributor of
cider at the rate of $2.60 per barrel of 31 gallons on all such
beverages.
{ + (2) In addition to the tax imposed by subsection (1) of
this section, a manufacturer or an importing distributor of cider
shall be taxed at the rate of $___ per barrel of 31 gallons. + }
{ - (2) - } { + (3) + } Notwithstanding { - subsection
(1) - } { + subsections (1) and (2) + } of this section or any
other provision of law, the taxation of the manufacturing or
distribution of cider shall be at a rate that is not less than
the rate imposed for the privilege of manufacturing or
distributing malt beverages under ORS 473.030 (1) { + and
(2) + }.
{ - (3) - } { + (4) + } The rate of tax imposed by this
section shall apply proportionately to quantities in containers
of less capacity than those quantities specified in this section.
{ - (4) - } { + (5) + } The tax imposed by this section
shall be measured by the volume of cider produced, purchased or
received by any manufacturer. If the cider remains unsold and in
the possession of the producer at the plant where it was
produced, no tax imposed or levied by this section is required to
be paid until the cider has become sufficiently aged for
marketing at retail, but this subsection shall not be construed
so as to alter or affect any provision of this chapter relating
to tax liens or the filing of statements.
SECTION 3. ORS 473.047 is amended to read:
473.047. (1) As used in this section, 'qualified marketing
activity' means marketing activity:
(a) That promotes the sale of wine or wine products;
(b) That does not promote specific brands of wine or wine
products or exclusively promote the products of any particular
winery; and
(c) That has been approved by the Oregon Wine 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 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 board shall by rule further define, consistent with the
definition in subsection (1) of this section, the marketing
activities that constitute qualified marketing activity.
SECTION 4. ORS 471.805 is amended to read:
471.805. (1) Except as otherwise provided in ORS 471.810 (2),
all { - money - } { + moneys + } 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 - } { + moneys + } 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 - } { + the moneys + } by check drawn
upon the State Treasurer and charged to the suspense account of
the commission. After withholding refundable license fees and
such sum, not to exceed $250,000, as it considers necessary as a
revolving fund for a working cash balance for the purpose of
paying travel expenses, advances, other miscellaneous bills and
extraordinary items which are payable in cash immediately upon
presentation, the commission shall direct the State Treasurer to
transfer the { - money - } { + moneys + } remaining in the
suspense account { - to - } { + as follows:
(a) To the Mental Health and Substance Abuse Treatment Fund
established under section 8 of this 2007 Act, the amount equal to
the moneys collected under ORS 473.030 (2) and (6) and 473.035
(2); and
(b) To + } the Oregon Liquor Control Commission Account in the
General Fund { + , the amount remaining in the suspense account
following the transfer of funds under paragraph (a) of this
subsection + }. Moneys in the Oregon Liquor Control Commission
Account are continuously appropriated to the commission to be
distributed and used as required or allowed by law.
(2) All necessary expenditures of the commission incurred in
carrying out the purposes 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.
SECTION 5. ORS 471.810 is amended to read:
471.810. (1) At the end of each month, the Oregon Liquor
Control Commission shall certify the amount of moneys available
for distribution in the Oregon Liquor Control Commission Account,
and after withholding such moneys as it may deem necessary to pay
its outstanding obligations shall within 35 days of the month for
which a distribution is made direct the State Treasurer to pay
the amounts due, upon warrants drawn by the Oregon Department of
Administrative Services, as follows:
(a) Fifty-six percent, or the amount remaining after the
distribution under subsection (4) of this section, credited to
the General Fund available for general governmental purposes
wherein it shall be considered as revenue during the quarter
immediately preceding receipt;
(b) Twenty percent to the cities of the state in such shares as
the population of each city bears to the population of the cities
of the state, as determined by the State Board of Higher
Education last preceding such apportionment, under ORS 190.510 to
190.610;
(c) Ten percent to counties in such shares as their respective
populations bear to the total population of the state, as
estimated from time to time by the State Board of Higher
Education; and
(d) Fourteen percent to the cities of the state to be
distributed as provided in ORS 221.770 and this section.
(2) The commission shall direct the Oregon Department of
Administrative Services to transfer 50 percent of the
revenues { + in the Oregon Liquor Control Commission Account + }
from the taxes imposed by ORS 473.030, 473.035 and 473.040 to the
Mental Health Alcoholism and Drug Services Account in the General
Fund to be paid monthly as provided in ORS 430.380.
(3) If the amount of revenues received { + in the Oregon
Liquor Control Commission Account + } from the taxes imposed by
ORS 473.030 for the preceding month were reduced as a result of
credits claimed under ORS 473.047, the commission shall compute
the difference between the amounts paid or transferred as
described in subsections (1)(b), (c) and (d) and (2) of this
section and the amounts that would have been paid or transferred
under subsections (1)(b), (c) and (d) and (2) of this section if
no credits had been claimed. The commission shall direct the
Oregon Department of Administrative Services to pay or transfer
amounts equal to the differences computed for subsections (1)(b),
(c) and (d) and (2) of this section from the General Fund to the
recipients or accounts described in subsections (1)(b), (c) and
(d) and (2) of this section.
(4) Notwithstanding subsection (1) of this section, no city or
county shall receive for any fiscal year an amount less than the
amount distributed to the city or county in accordance with ORS
471.350 (1965 Replacement Part), 471.810, 473.190 and 473.210
(1965 Replacement Part) during the 1966-1967 fiscal year unless
the city or county had a decline in population as shown by its
census. If the population declined, the per capita distribution
to the city or county shall be not less than the total per capita
distribution during the 1966-1967 fiscal year. Any additional
funds required to maintain the level of distribution under this
subsection shall be paid from funds credited under subsection
(1)(a) of this section.
SECTION 6. ORS 221.770 is amended to read:
221.770. (1) A share of certain revenues of this state shall be
apportioned among and distributed to the cities of this state for
general purposes as provided in this section. A city shall not be
included in apportionments or receive distributions under this
section for a fiscal year commencing on July 1 unless the city:
(a) Elects to receive distributions under this section for the
fiscal year by enactment of an ordinance or resolution expressing
that election and filing a copy of that ordinance or resolution
with the Oregon Department of Administrative Services not later
than July 31 of the fiscal year;
(b) Holds at least one public hearing, after adequate public
notice, at which citizens have the opportunity to provide written
and oral comment to the authority responsible for approving the
proposed budget of the city for the fiscal year on the possible
uses of the distributions, including offset against property tax
levies by the city for the fiscal year, and certifies its
compliance with this paragraph to the Oregon Department of
Administrative Services not later than July 31 of the fiscal
year;
(c) Holds at least one public hearing, after adequate public
notice, at which citizens have the opportunity to provide written
and oral comment to, and ask questions of, the authority
responsible for adopting the budget of the city for the fiscal
year on the proposed use of the distributions in relation to the
entire budget of the city for the fiscal year, including possible
offset of the distributions against property tax levies by the
city for the fiscal year, and certifies its compliance with this
paragraph to the Oregon Department of Administrative Services not
later than July 31 of the fiscal year; and
(d) Levied a property tax for the year preceding the year in
which revenue sharing is due under ORS 471.810 and this section.
(2) Not later than 35 days after the last day of each calendar
quarter ending March 31, June 30, September 30 and December 31,
the Oregon Liquor Control Commission shall determine the amount
of the net revenue under ORS 471.805 { + (1)(b) + }, received
during the preceding calendar quarter and shall certify that
amount to the Oregon Department of Administrative Services.
(3) In addition to amounts otherwise apportioned to cities
under ORS 471.810, not later than 20 days after the date the
Oregon Department of Administrative Services receives a
certification under subsection (2) of this section, the
department shall apportion among the cities of this state in the
manner provided in subsection (4) of this section an amount equal
to 14 percent of the amount so certified, and shall pay to each
city the amount so apportioned to the city. Payments shall be
made from the Oregon Liquor Control Commission Account.
(4) The amount apportioned to each city under subsection (3) of
this section shall be a percentage of the total amount to be
apportioned among the cities determined by dividing the adjusted
population of the city by the sum of the adjusted populations of
all cities. The adjusted population of a city shall be determined
by multiplying the city's population by the sum of:
(a) The city's local consolidated property taxes per capita
divided by the average consolidated property taxes per capita for
all cities in the state; and
(b) The amount of state income per capita divided by the amount
of city income per capita.
(5) The amount apportioned to each city shall be further
limited to an amount no greater than the amount of all property
taxes levied by the city during the year previous to the year in
which distributions are made.
(6) For purposes of the formula set forth in subsection (4) of
this section, 'city population' is the population of a city as
last determined under ORS 190.510 to 190.590.
(7)(a) For purposes of the formula set forth in subsection (4)
of this section, 'local consolidated property taxes' has the
meaning given in subsection (8) of this section, for a city
divided by the population of the city as last determined under
ORS 190.510 to 190.590.
(b) The Oregon Department of Administrative Services shall
determine the amounts of property taxes for each city during the
fiscal year closing on June 30 preceding the fiscal year
commencing on July 1 for which calendar quarter apportionments
are made, and that determination shall be used for each calendar
quarter apportionment for that fiscal year commencing on July 1.
(8) For purposes of subsection (7) of this section '
consolidated property taxes' are the total of all compulsory
contributions in the form of ad valorem taxes on property located
within a city levied during a one-year period by the city, a
county, any school district and any special governmental district
for public purposes and in amounts as compiled by the Department
of Revenue on the basis of application of consolidated tax rates
to assessor code area valuations.
(9) For purposes of the formula set forth in subsection (4) of
this section, 'income per capita' is the estimated average annual
money income of residents of this state and of residents of each
city of this state, respectively, based upon the latest
information available from the most recent federal decennial
census.
(10) A city receiving a distribution under this section may
return all or any part of the distribution to the Oregon
Department of Administrative Services, which shall deposit the
returned distribution or part thereof in the General Fund to be
available for payment of the general expenses of the state.
SECTION 7. { + The amendments to ORS 221.770, 471.805,
471.810, 473.030, 473.035 and 473.047 by sections 1 to 6 of this
2007 Act apply to tax reporting periods beginning on or after
January 1, 2008. + }
SECTION 8. { + (1) The Mental Health and Substance Abuse
Treatment Fund is established in the State Treasury, separate and
distinct from the General Fund. Interest earned by the Mental
Health and Substance Abuse Treatment Fund shall be credited to
the Mental Health and Substance Abuse Treatment Fund.
(2) Moneys in the Mental Health and Substance Abuse Treatment
Fund are dedicated to funding alcohol and drug abuse treatment
and prevention and mental health treatment. + }
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