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 3678
(Including Amendments to Resolve Conflicts)
B-Engrossed
Senate Bill 819
Ordered by the House June 15
Including Senate Amendments dated May 15 and House Amendments
dated June 15
Sponsored by COMMITTEE ON FINANCE AND 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.
Changes method by which surplus 'kicker' refunds are calculated
for corporate income and excise taxpayers and personal income
taxpayers. Allows corporate income and excise taxpayers to carry
unused credit forward for application in succeeding tax years.
Applies to biennia ending on or after June 30, 2007.
Takes effect on 91st day following adjournment sine die.
A BILL FOR AN ACT
Relating to surplus refund methods; creating new provisions;
amending ORS 291.349; 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.
(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 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.
(c) + } The credit shall be computed { - after - } { +
before + } 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.
{ + (d) If a credit applied against tax liability as
described in paragraph (c) of this subsection reduces tax
liability to zero and an amount of the credit remains unused, the
remaining unused amount shall be carried forward and applied
against tax liability as prescribed in paragraph (c) 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.
(e) Notwithstanding paragraph (c) of this subsection, 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 (d) of this
subsection, the amount of the carryforward credit shall be
applied against tax liability prior to applying the new
credit. + }
(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 as shown on the return of the taxpayer or as
corrected by the Department of Revenue, and is determined:
(A) Before 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, but do
not bear interest. + }
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. { + If House Bill 3048 becomes law, section 1 of
this 2007 Act (amending ORS 291.349) is repealed and ORS 291.349,
as amended by section 1, chapter ___, Oregon Laws 2007 (Enrolled
House Bill 3048), 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.
(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 - } { +
before + } 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 - } { + a + } 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
{ + remaining + } 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) { + Notwithstanding paragraph (e) of this subsection, + }
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 { + as + } shown on the return { + of the
taxpayer + } or as { - adjusted - } { + corrected + } by the
Department of Revenue, and is determined:
(A) { - After - } { + Before + } 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 mailed
by the Department of Revenue to personal income taxpayers
eligible for the payment on or before December 15 following the
end of the biennium for which the payment described under this
subsection is being made.
(d) Notwithstanding paragraph (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 { + , but do not
bear interest + }.
SECTION 4. If House Bill 3048 becomes law, section 2 of this
2007 Act is amended to read:
{ + Sec. 2. + } The amendments to ORS 291.349 by section
{ - 1 - } { + 3 + } of this 2007 Act apply to calculations of
refunds for biennia ending on or after June 30, 2007.
SECTION 5. { + 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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