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 1510-1
A-Engrossed
Senate Bill 48
Ordered by the Senate February 26
Including Senate Amendments dated February 26
Printed pursuant to Senate Interim Rule 213.28 by order of the
President of the Senate in conformance with presession filing
rules, indicating neither advocacy nor opposition on the part
of the President (at the request of Senate Interim Commission
on Educational Excellence)
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.
{ - Implements repeal of corporate surplus 'kicker' refund
proposed in Senate Joint Resolution 3 (2007), and transfers
corporate income and excise tax revenues that exceed estimate of
corporate income and excise taxes to school capital matching
subaccount of education stability fund. - }
{ + Establishes Rainy Day Savings Account. Requires that if
revenues from corporate income and excise taxes exceed two
percent of estimate for biennium, total amount of excess be
transferred to account.
Requires that after ending balance for biennium is determined,
amount equal to one percent of General Fund appropriations for
biennium be transferred from ending balance to account. Requires
that if ending balance does not equal or exceed one percent of
General Fund appropriations, entire ending balance be transferred
to account.
Establishes Education Capital Construction Account. Specifies
that moneys in account may be used only for capital construction
projects for public education. Requires that if moneys in Rainy
Day Savings Account equal 10 percent of General Fund revenues
collected during prior biennium, moneys that otherwise would have
been transferred to Rainy Day Savings Account be transferred to
Education Capital Construction Account.
Provides that Legislative Assembly may appropriate moneys from
Rainy Day Savings Account only under specified conditions. + }
Does not take effect unless voters approve Senate Joint
Resolution 3 (2007) { + at special election + }. Takes effect on
{ - effective date of constitutional amendments proposed in - }
{ + 91st day following adjournment of Seventy-fourth Legislative
Assembly if voters approve + } resolution.
A BILL FOR AN ACT
Relating to corporate tax revenues in excess of estimates;
creating new provisions; amending ORS 291.349 and 305.792; and
prescribing an effective date.
Be It Enacted by the People of the State of Oregon:
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
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 - }
{ + transferred to the Rainy Day Savings Account established in
section 5 of this 2007 Act + }.
(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) If there is an excess to be { - credited - } { +
transferred + } 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. 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 - } { + State Treasurer the amount to be
transferred under subsection (3) of this section, and the State
Treasurer shall transfer the amount certified + }.
(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.
(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) 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 following the
end of the biennium for which the payment described under this
subsection is being made.
(e) Notwithstanding paragraph (d) 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.
SECTION 2. { + The amendments to ORS 291.349 by section 1 of
this 2007 Act apply to biennia beginning on or after July 1,
2005. + }
SECTION 3. ORS 305.792 is amended to read:
305.792. (1) The Department of Revenue shall cause a checkoff
box to be printed on the personal income { - and corporate
income or excise - } tax returns for the appropriate tax year,
by which a taxpayer may indicate that a surplus refund payment
{ - or credit - } that the taxpayer may otherwise be entitled to
under ORS 291.349 shall instead be used for funding education.
(2)(a) A personal income taxpayer may elect to donate a surplus
refund payment to be made under ORS 291.349 to public elementary
and secondary school education. The taxpayer may make the
election by checking the appropriate checkoff box on the
taxpayer's return indicating the taxpayer's intention to donate
the surplus refund payment to public elementary and secondary
education.
(b) Once made, the election is irrevocable for any surplus
refund payments received until a subsequent return is filed for a
later tax year, and on which the checkoff box is not checked.
{ - (3)(a) A corporate excise or income taxpayer may elect to
not claim a surplus refund credit that the taxpayer would
otherwise be entitled to pursuant to ORS 291.349, in order to
achieve a corresponding transfer of such moneys from the General
Fund to the State School Fund for the support of public
elementary and secondary school education. The taxpayer may make
the election by checking the appropriate checkoff box on the
taxpayer's return and by not using the surplus refund credit
percentage to reduce the taxpayer's tax liability. - }
{ - (b) A taxpayer that checks the appropriate checkoff box
indicating that the credit will not be claimed but that
nevertheless claims the credit in determining the taxpayer's tax
liability shall be considered to have not made the election under
this subsection. - }
{ - (c) The election to not claim a credit under this
subsection may not be revoked by filing an amended return. - }
{ - (4) - } { + (3) + } After the determination that
surplus refund payments are to be made under ORS 291.349 (4) and
(6), the department shall determine the total amount of such
payments for which an election to donate to public elementary and
secondary education has been made and shall certify this amount
to the State Treasurer. Following the department's certification
to the State Treasurer, an election to donate that biennium's
surplus refund payments under subsection (2) of this section is
irrevocable.
{ - (5) Following the determination to credit corporate
income and excise taxes pursuant to ORS 291.349 (3) and (5), the
department shall annually certify the total amount of allowable
credits that have not been claimed pursuant to an election made
under subsection (3) of this section. The certification shall be
made on or before December 31 of each year, until the tax year
for which the credit would otherwise be claimed becomes a closed
tax year. - }
SECTION 4. { + The amendments to ORS 305.792 by section 3 of
this 2007 Act apply to tax years beginning on or after January 1,
2007. + }
SECTION 5. { + The Rainy Day Savings Account is established as
an account in the General Fund. The account shall consist of:
(1) Moneys transferred to the account under ORS 291.349 (3);
(2) Moneys transferred to the account under section 6 of this
2007 Act; and
(3) Any other moneys transferred to the account by law. + }
SECTION 6. { + (1) As used in this section:
(a) 'Ending balance' means the difference between the amount of
General Fund revenues collected during a biennium and the amount
of General Fund appropriations for the biennium.
(b) 'General Fund appropriations' means the amount of moneys
appropriated from the General Fund for a biennium in the
legislatively approved budget for the biennium, minus the amount
of any General Fund appropriation balances for that biennium that
revert to the General Fund under ORS 293.190.
(c) 'Legislatively approved budget' has the meaning given that
term in ORS 291.002.
(2) As soon as possible after the ending balance for a biennium
is determined, an amount equal to one percent of the amount of
General Fund appropriations for that biennium shall be
transferred from the ending balance to the Rainy Day Savings
Account. If the ending balance does not equal or exceed one
percent of the amount of General Fund appropriations, the entire
ending balance shall be transferred to the Rainy Day Savings
Account. + }
SECTION 7. { + Notwithstanding ORS 291.349 (3) and section 6
of this 2007 Act, if the moneys in the Rainy Day Savings Account
equal 10 percent of the amount of General Fund revenues collected
during the prior biennium, moneys that would otherwise be
transferred to the Rainy Day Savings Account shall be transferred
to the Education Capital Construction Account established in
section 8 of this 2007 Act. + }
SECTION 8. { + The Education Capital Construction Account is
established as an account in the General Fund. The account shall
consist of moneys transferred to the account under section 7 of
this 2007 Act. Moneys in the account may be used only for capital
construction projects for public education. + }
SECTION 9. { + (1) The Legislative Assembly may appropriate
moneys from the Rainy Day Savings Account only if:
(a) The Legislative Assembly finds one of the following:
(A) That the last quarterly economic and revenue forecast for a
biennium indicates that moneys available to the General Fund for
the next biennium will be at least three percent less than
appropriations from the General Fund for the current biennium;
(B) That there has been a decline for two or more consecutive
quarters in the last 12 months in seasonally adjusted nonfarm
payroll employment; or
(C) That a quarterly economic and revenue forecast projects
that revenues in the General Fund in the current biennium will be
at least two percent below what the revenues were projected to be
in the revenue forecast on which the legislatively adopted
budget, as defined in ORS 291.002, for the current biennium was
based; or
(b) The appropriation is approved by three-fifths of the
members serving in each house of the Legislative Assembly and the
Governor declares an emergency.
(2) The Legislative Assembly may not appropriate more than
two-thirds of the amount of the Rainy Day Savings Account for any
one biennium. + }
SECTION 10. { + (1) This 2007 Act does not take effect unless
the amendment to the Oregon Constitution proposed by Senate Joint
Resolution 3 (2007) is approved by the people at a special
election held throughout this state as provided in chapter ___,
Oregon Laws 2007 (Enrolled Senate Bill 549).
(2) If the amendment to the Oregon Constitution proposed by
Senate Joint Resolution 3 (2007) is approved by the people at a
special election held throughout this state as provided in
chapter ___, Oregon Laws 2007 (Enrolled Senate Bill 549), 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. + }
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