75th OREGON LEGISLATIVE ASSEMBLY--2009 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 3443
House Bill 3269
Sponsored by Representatives BERGER, BRUUN, ESQUIVEL, JENSON,
Senators BURDICK, MORSE
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.
Reduces personal income tax rates, including rates imposed on
capital gains. Increases state earned income tax credit and makes
earned income tax credit refundable permanently.
Increases threshold level of estates of decedents that are not
subject to Oregon inheritance tax.
Establishes principal residence property tax exemption for
homesteads of seniors or persons with household income below
threshold level. Increases elderly rental assistance program.
Enacts uniform sales and use tax administration provisions.
Directs Department of Revenue to enter into Streamlined Sales and
Use Tax Agreement. Imposes sales tax on sales of tangible
personal property or services. Imposes use tax on use of tangible
personal property purchased outside this state.
Provides that sales and use tax provisions become operative on
January 1, 2010, and apply to transactions occurring on or after
January 1, 2010, but do not become operative if Streamlined Sales
and Use Tax Agreement is not executed prior to January 1, 2010.
Takes effect on 91st day following adjournment sine die.
A BILL FOR AN ACT
Relating to taxation; creating new provisions; amending ORS
305.130, 305.140, 305.265, 305.270, 305.280, 305.565, 305.850,
305.895, 310.635, 310.692, 315.266, 316.037, 316.045, 731.840,
801.040, 802.110 and 803.585; prescribing an effective date;
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 316.037 is amended to read:
316.037. (1)(a) A tax is imposed for each taxable year on the
entire taxable income of every resident of this state. The amount
of the tax shall be determined in accordance with the following
table:
_________________________________________________________________
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
If taxable income The tax is:
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
Not over $2,000 { -
5% - }
{ +
2% + }
of
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
taxable
income
Over $2,000 but not
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
over $5,000 { -
$100 plus 7% - }
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
{ +
$40 plus 4% + }
of the excess
over $2,000
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
Over $5,000 { -
$310 plus 9% - }
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
{ +
$160 plus 6% + }
of the excess
over $5,000
_________________________________________________________________
____________________________________________________________
END OF POSSIBLE IRREGULAR TABULAR TEXT
____________________________________________________________
(b) For tax years beginning in each calendar year, the
Department of Revenue shall adopt a table that shall apply in
lieu of the table contained in paragraph (a) of this subsection,
as follows:
(A) The minimum and maximum dollar amounts for each rate
bracket for which a tax is imposed shall be increased by the
cost-of-living adjustment for the calendar year.
(B) The rate applicable to any rate bracket as adjusted under
subparagraph (A) of this paragraph shall not be changed.
(C) The amounts setting forth the tax, to the extent necessary
to reflect the adjustments in the rate brackets, shall be
adjusted.
(c) For purposes of paragraph (b) of this subsection, the
cost-of-living adjustment for any calendar year is the percentage
(if any) by which the monthly averaged U.S. City Average Consumer
Price Index for the 12 consecutive months ending August 31 of the
prior calendar year exceeds the monthly averaged index for the
second quarter of the calendar year 1992.
(d) As used in this subsection, 'U.S. City Average Consumer
Price Index' means the U.S. City Average Consumer Price Index for
All Urban Consumers (All Items) as published by the Bureau of
Labor Statistics of the United States Department of Labor.
(e) If any increase determined under paragraph (b) of this
subsection is not a multiple of $50, the increase shall be
rounded to the next lower multiple of $50.
(2) A tax is imposed for each taxable year upon the entire
taxable income of every part-year resident of this state. The
amount of the tax shall be computed under subsection (1) of this
section as if the part-year resident were a full-year resident
and shall be multiplied by the ratio provided under ORS 316.117
to determine the tax on income derived from sources within this
state.
(3) A tax is imposed for each taxable year on the taxable
income of every full-year nonresident that is derived from
sources within this state. The amount of the tax shall be
determined in accordance with the table set forth in subsection
(1) of this section.
{ + (4) Notwithstanding subsections (1) to (3) of this
section, net capital gain that is included in taxable income for
Oregon tax purposes shall be taxed at the rate of four
percent. + }
SECTION 2. ORS 316.045 is amended to read:
316.045. (1) As used in this section:
(a) 'Farming' means:
(A) Raising, harvesting and selling crops;
(B) Feeding, breeding, managing or selling livestock, poultry,
fur-bearing animals or honeybees or the produce thereof;
(C) Dairying and selling dairy products;
(D) Stabling or training equines, including but not limited to
providing riding lessons, training clinics and schooling shows;
(E) Propagating, cultivating, maintaining or harvesting aquatic
species and bird and animal species to the extent allowed by the
rules adopted by the State Fish and Wildlife Commission;
(F) On-site constructing and maintaining equipment and
facilities used for the activities described in this subsection;
(G) Preparing, storing or disposing of, by marketing or
otherwise, the products or by-products raised for human or animal
use on land employed in activities described in this subsection;
or
(H) Any other agricultural or horticultural activity or animal
husbandry, or any combination of these activities, except that
'farming' does not include growing and harvesting trees of a
marketable species other than growing and harvesting cultured
Christmas trees or certain hardwood timber described in ORS
321.267 (3) or 321.824 (3).
(b) 'Section 1231 gain' has the meaning given that term in
section 1231 of the Internal Revenue Code.
(2) Notwithstanding ORS 316.037, taxable income that consists
of net long-term capital gain shall be subject to tax under this
chapter at a rate of { - five - } { + four + } percent if all
of the following conditions apply:
(a) The gain is:
(A) Derived from the sale or exchange of capital assets
consisting of ownership interests in a corporation, partnership
or other entity in which, prior to the sale or exchange, the
taxpayer owned at least a 10 percent ownership interest; or
(B) Section 1231 gain.
(b) The property that was sold or exchanged consisted of:
(A) Ownership interests in a corporation, partnership or other
entity that is engaged in the trade or business of farming; or
(B) Property that is predominantly used in the trade or
business of farming.
(c) The sale or exchange is to a person who is not related to
the taxpayer under section 267 of the Internal Revenue Code.
(d) The sale or exchange constitutes a substantially complete
termination of all of the taxpayer's ownership interests in a
trade or business that is engaged in farming or a substantially
complete termination of all of the taxpayer's ownership interests
in property that is employed in the trade or business of farming.
Ownership of a farm dwelling or farm homesite does not constitute
ownership of property employed in the trade or business of
farming.
(3) If the taxpayer has net long-term capital gain derived in
part from the sale or exchange of property described in
subsection (2)(b) of this section and in part from the sale or
exchange of all other property, the net long-term capital gain
that is subject to tax under this section shall be determined as
follows:
(a) Compute the net long-term capital gain derived from all
property described in subsection (2)(b) of this section that was
sold or exchanged during the tax year.
(b) Compute the net capital gain or loss from the sale or
exchange of all other property during the tax year.
(c) If the amount determined under paragraph (b) of this
subsection is a net capital gain, the gain that is subject to tax
under subsection (2) of this section shall be the amount
determined under paragraph (a) of this subsection.
(d) If the amount determined under paragraph (b) of this
subsection is a net capital loss, the gain that is subject to tax
under subsection (2) of this section shall be the amount
determined under paragraph (a) of this subsection minus the
amount determined under paragraph (b) of this subsection.
SECTION 3. ORS 315.266 is amended to read:
315.266. (1) In addition to any other credit available for
purposes of ORS chapter 316, an eligible resident individual
shall be allowed a credit against the tax otherwise due under ORS
chapter 316 for the tax year in an amount equal to { - six - }
{ + 25 + } percent of the earned income credit allowable to the
individual for the same tax year under section 32 of the Internal
Revenue Code.
(2) An eligible nonresident individual shall be allowed the
credit computed in the same manner and subject to the same
limitations as the credit allowed a resident by subsection (1) of
this section. However, the credit shall be prorated using the
proportion provided in ORS 316.117.
(3) If a change in the { - taxable - } { + tax + } year of
a taxpayer occurs as described in ORS 314.085, or if the
Department of Revenue terminates the taxpayer's { - taxable - }
{ + tax + } year under ORS 314.440, the credit allowed by this
section shall be prorated or computed in a manner consistent with
ORS 314.085.
(4) If a change in the status of a taxpayer from resident to
nonresident or from nonresident to resident occurs, the credit
allowed by this section shall be determined in a manner
consistent with ORS 316.117.
(5) If the amount allowable as a credit under this section,
when added to the sum of the amounts allowable as payment of tax
under ORS 316.187 or 316.583, other tax prepayment amounts and
other refundable credit amounts, exceeds the taxes imposed by ORS
chapters 314 and 316 for the tax year after application of any
nonrefundable credits allowable for purposes of ORS chapter 316
for the tax year, the amount of the excess shall be refunded to
the taxpayer as provided in ORS 316.502.
(6) The Department of Revenue may adopt rules for purposes of
this section, including but not limited to rules relating to
proof of eligibility and the furnishing of information regarding
the federal earned income credit claimed by the taxpayer for the
tax year.
(7) Refunds attributable to the earned income credit allowed
under this section { - shall - } { + may + } not bear
interest.
{ + NOTE: + } Sections 4 to 7 were deleted. Subsequent
sections were not renumbered.
SECTION 8. { + The amendments to ORS 315.266, 316.037 and
316.045 by sections 1 to 3 of this 2009 Act apply to tax years
beginning on or after January 1, 2009. + }
{ +
INHERITANCE TAX EXEMPTIONS + }
SECTION 9. { + Section 10 of this 2009 Act is added to and
made a part of ORS 118.005 to 118.840. + }
SECTION 10. { + Notwithstanding any other provision of ORS
118.005 to 118.840:
(1) In the case of decedents dying on or after January 1, 2009,
and before January 1, 2010, a return under ORS 118.005 to 118.840
is not required and no tax is due under ORS 118.005 to 118.840 if
the taxable estate of the decedent is $1.5 million or less.
(2) In the case of decedents dying on or after January 1, 2010,
and before January 1, 2013, a return under ORS 118.005 to 118.840
is not required and no tax is due under ORS 118.005 to 118.840 if
the taxable estate of the decedent is $2 million or less.
(3) In the case of decedents dying on or after January 1, 2013,
and before January 1, 2014, a return under ORS 118.005 to 118.840
is not required and no tax is due under ORS 118.005 to 118.840 if
the taxable estate of the decedent is $3.5 million or less. + }
{ +
PRINCIPAL RESIDENCE PROPERTY TAX EXEMPTION + }
SECTION 11. { + As used in sections 11 to 21 of this 2009 Act:
(1) 'Assessed value' means the value of property as determined
under ORS 308.146.
(2) 'Dwelling unit':
(a) Means a structure or part of a structure providing
complete, independent living facilities for one or more persons,
including permanent provisions for sleeping, eating, cooking and
sanitation and the land underneath the structure, and may be
further defined by rule by the Department of Revenue.
(b) Includes, if the residence is located in a multiunit
building, the portion of the building actually used as the
principal place of abode and a percentage of the true cash value
of the common elements and of the true cash value of the tax lot
upon which the multiunit building is built, as determined by the
county assessor. The percentage of the value of the common
elements and tax lot that is added to the value of the residence
unit shall be computed by dividing the value of the residence
unit by the total value of the building exclusive of the common
elements, if any.
(c) Includes, if the residence is a part of a group of
associated single family units on one tax lot, the single unit
and the portion of the common tax lot allocated to it on the
basis of the relative value of each unit.
(3) 'Family' has the meaning given that term in section
267(c)(4) of the Internal Revenue Code.
(4) 'Household' means the taxpayer and the taxpayer's family
occupying the principal residence during all or any part of the
calendar year immediately preceding the calendar year in which an
application described under section 13 of this 2009 Act is filed.
(5) 'Household income' has the meaning given that term in ORS
310.630, and includes the income of the taxpayer's household.
(6) 'Income' has the meaning given that term in ORS 310.630.
(7) 'Occupy':
(a) Means to live or dwell in or on the property.
(b) Includes temporary absences of limited duration. If a
taxpayer is temporarily absent from the principal residence, or
if the taxpayer is absent from the principal residence due to
illness, the taxpayer shall nevertheless be considered an
occupant of the property. A taxpayer who has entered a long term
care facility for the purpose of receiving long term care may not
be considered an occupant of the property. 'Temporarily absent'
and ' long term care' may be further defined by the department.
(8) 'Own' means:
(a) To hold of record, either alone or with another or others,
a fee simple estate, a life estate or the right to possession
under a trust instrument or a contract of sale.
(b) If the property is a manufactured dwelling or floating
home, to be the registered owner, either alone or with another or
others.
(9) 'Principal residence':
(a) Means real or personal property, subject to property
taxation and located in Oregon, that is owned and occupied by a
taxpayer as a dwelling unit. Unless inconsistent with sections 11
to 21 of this 2009 Act, the determination of whether or not a
dwelling unit is a principal residence shall be made under
principles similar to those used to determine if a dwelling unit
is a principal residence under section 121 of the Internal
Revenue Code.
(b) Does not include that portion of a dwelling unit that is
rented to another person.
(10) 'Property tax imposed':
(a) Means property tax within the meaning of section 11b,
Article XI, Oregon Constitution, and:
(A) In the case of one or more tax lots constituting a single
dwelling unit, the entire property tax imposed.
(B) In the case of one or more tax lots constituting two or
more dwelling units, the entire property tax imposed divided by
the number of dwelling units.
(C) In the case of an apartment or unit owned or leased by a
cooperative housing corporation, the tenant-stockholder's
proportionate share of the property tax imposed.
(b) Does not include:
(A) Property tax imposed on land that is specially assessed
under ORS 308A.050 to 308A.128, 308A.300 to 308A.330, 321.257 to
321.390, 321.700 to 321.754 or 321.805 to 321.855 or, if so
determined by the department by rule, property tax imposed on any
other land that is not valued at real market value but is
specially valued for ad valorem property tax purposes.
(B) Property tax imposed on land area in excess of one acre, or
the minimum land area by zoning, whichever is greater, or if
there is no specific minimum land area upon which a residence may
be constructed provided in the zoning ordinance, property tax
imposed against land area in excess of one acre.
(11) 'Senior citizen' means any person who is at least 65 years
of age on or before July 1 of the year for which application is
made for a principal residence property tax exemption under
sections 11 to 21 of this 2009 Act.
(12) 'Taxpayer' means a person whose homestead is the subject
of property tax levied by this state or a political subdivision
of this state.
(13) 'Tenant-stockholder' and 'cooperative housing corporation'
have the meanings given those terms under section 216 of the
Internal Revenue Code.
(14) 'U.S. City Average Consumer Price Index' means the U.S.
City Average Consumer Price Index for All Urban Consumers (All
Items) as published by the Bureau of Labor Statistics of the
United States Department of Labor. + }
SECTION 12. { + (1) Upon the taxpayer's compliance with
sections 11 to 21 of this 2009 Act, and subject to sections 11 to
21 of this 2009 Act, the Department of Revenue shall pay a
portion of the property tax imposed on the principal residence of
a taxpayer who:
(a) Is a senior citizen; or
(b) Has household income that does not exceed $_____ for the
calendar year preceding the year for which the application
described under section 13 of this 2009 Act is filed.
(2) The amount paid shall be the lesser of:
(a) The property tax imposed on the property; or
(b) The property tax attributable to $25,000 in assessed value
of the principal residence.
(3) Payment shall be made by the department from the suspense
account referred to in ORS 310.692, as prescribed under section
14 of this 2009 Act.
(4) The department shall make only one payment under this
section for any principal residence for any tax year.
(5) Notwithstanding subsection (2)(b) of this section, for each
tax year beginning on or after July 1, 2011, the maximum amount
of assessed value for which the department will pay attributed
property tax shall increase by three percent. + }
SECTION 13. { + (1) A taxpayer may apply for a principal
residence property tax exemption by filing an application with
the Department of Revenue on or before July 1 of the calendar
year within which begins the tax year to which the application
relates.
(2) The application shall be on such form as the department
shall prescribe, and shall contain the following:
(a) The name of the applicant as it appears on the applicant's
Social Security card.
(b) The Social Security number of the applicant.
(c) The date of birth of the applicant.
(d) One of the following:
(A) The tax lot number or numbers or other identification for
the applicant's principal residence.
(B) The name and appropriate address for a cooperative housing
corporation and a statement from the appropriate officer of the
corporation or the applicant that contains the tax information
needed to determine the amount of the payment the department
shall make under section 12 of this 2009 Act.
(3) If the basis of the application is the household income of
the taxpayer, the application shall contain the following
additional information:
(a) The names and Social Security numbers of all family members
of the taxpayer residing at the taxpayer's principal residence.
(b) The total household income of the taxpayer and the
taxpayer's family residing at the taxpayer's principal residence.
(4) If the principal residence is a dwelling unit owned or
leased by a cooperative housing corporation, and the statement
required under subsection (2)(d)(B) of this section cannot be
obtained, upon request of the department or the applicant and
upon payment by the applicant of the fee described under
subsection (6) of this section, the county assessor shall
determine the amount of property tax imposed, and shall inform
the department of the amount so determined. No appeal shall be
taken from a determination made under this subsection.
(5) The department may require such other information as the
department determines is necessary to process applications under
this section.
(6) The department may require that an applicant under this
section file with the department a statement from the appropriate
county assessor stating for the principal residence referred to
in subsection (1) of this section the amount of property tax
imposed on the principal residence and the year for which the
property tax was imposed. At the request of the applicant, and
upon payment of a uniform fee to defray the expense as determined
by the county governing body, the county assessor shall assist
the applicant in identifying the principal residence of the
taxpayer. + }
SECTION 14. { + (1) An application for a principal residence
property tax exemption filed under section 13 of this 2009 Act
shall be approved or disapproved by the Department of Revenue on
or before August 1 of the tax year to which the application
relates.
(2) Upon approval of the application, the department shall
forward the following information to the county assessor of the
county within which the principal residence of the taxpayer is
located:
(a) The name and Social Security number of the taxpayer.
(b) The tax lot number or other identification of the property.
(3)(a) Upon receipt of the information described under
subsection (2) of this section, the county assessor shall
identify the property on the assessment and tax roll.
(b) For the property so identified, the county assessor shall
compute the amount that is to be paid by the department under
section 12 of this 2009 Act and shall certify the amount to the
department.
(c) The county assessor shall reduce the total amount of taxes
otherwise billed for the property by the amount to be paid by the
department under section 12 of this 2009 Act.
(d) In addition to the other items required under ORS 311.250
to appear on the tax statement for the property, the tax
statement shall contain the total amount of the current taxes due
that are paid or to be paid by the department under section 12 of
this 2009 Act.
(4) Upon receipt of the certification under subsection (3) of
this section, the department shall notify the county assessor of
the amount paid and shall pay to the county treasurer of the
county from which the certification was issued the amount so
certified. The amount so paid shall be deposited by the county
treasurer to the unsegregated tax collections account established
under ORS 311.385 and shall be distributed to the taxing units of
the county in the same manner as the other property tax
collections are distributed under ORS 311.390. Payment under this
subsection shall be made by the department from the suspense
account referred to in ORS 310.692.
(5) The department shall pay the total amount certified to the
county treasurer without the discount allowed under ORS 311.505
in three approximately equal installments in November, February
and May.
(6) The payments received by the county treasurer from the
department shall be distributed to the taxing units of the county
using the schedule of percentages determined under ORS 311.390
then in effect. + }
SECTION 15. { + (1) An application filed under section 13 of
this 2009 Act shall be disapproved by the Department of Revenue
if the department has reason to believe that the household income
information or other information contained in the application is
inaccurate. Appeal of the disapproval may be made to the Director
of the Department of Revenue in the manner provided under ORS
305.275, and shall be made within 90 days after the notice of
disapproval is mailed.
(2) If an application contains information that is determined
to be false and provided with intent to evade taxation, the
department shall disapprove the application and direct the county
assessor of the county within which the property is located to
add to the property taxes imposed on the property for the tax
year an amount equal to 120 percent of the amount of the taxes so
imposed on the property for the tax year.
(3) If the sole issue on appeal under subsection (1) of this
section is the failure to timely file the application described
under section 13 of this 2009 Act, the appeal must be made within
the time and in the manner provided under ORS 307.475. No further
appeal shall be made from an order on an appeal under this
subsection.
(4) If an appeal results in a refund, the refund shall be made
in the manner provided under section 18 of this 2009 Act. + }
SECTION 16. { + (1) A cooperative housing corporation is
entitled to the principal residence property tax exemption
granted under sections 11 to 21 of this 2009 Act for those
dwelling units and common elements owned, being purchased or
leased by the corporation and occupied by one or more eligible
taxpayers if an application for the exemption is filed as
provided in subsection (2) of this section. Except as otherwise
provided in this section, and unless the context requires
otherwise, sections 11 to 21 of this 2009 Act shall govern the
exemption granted by this section.
(2)(a) Each corporation shall annually aid each resident who
could qualify for the property tax exemption under sections 11 to
21 of this 2009 Act, if the dwelling unit occupied by the
resident were owned by the resident as a principal residence, by
preparing applications for the exemption on behalf of the
corporation.
(b) The corporation shall determine the amount of assessed
value for each resident of a multiunit building who could have
qualified for exemption under sections 11 to 21 of this 2009 Act
if the dwelling unit of the resident were owned by the resident
as a principal residence. The application shall be signed by the
resident, or the resident's authorized representative, and filed
with the Department of Revenue in the same manner as other
applications are filed under sections 11 to 21 of this 2009 Act.
(c) The department shall process each application filed under
this subsection in the same manner as other applications for
exemption under section 13 of this 2009 Act are processed, except
for the requirement of owning or purchasing a principal
residence.
(3)(a) Not later than January 15 of each year, a corporation
that has received a property tax reduction for a dwelling unit
and the unit's share of the common elements shall credit to the
account of the resident an amount equal to the excess of the
resident's share of property taxes that would have been assessed
against the corporation for the tax year if the reduction for the
dwelling unit and the unit's share of the common elements had not
been granted over the resident's share of property taxes actually
paid by the corporation.
(b) Prior to March 1 of each year, the corporation shall
satisfy the department that the crediting has taken place. If the
crediting has not taken place, the department shall notify the
county assessor and no property tax reduction under sections 11
to 21 of this 2009 Act shall be granted for property of the
corporation for the next tax year, beginning July 1. + }
SECTION 17. { + (1) If taxes are required to be prepaid as
provided under ORS 311.370 or a similar law, the amount of taxes
that are required to be prepaid for the principal residence shall
be computed and paid without regard to sections 11 to 21 of this
2009 Act as provided under subsection (2) of this section.
(2) Following extension of the taxes under ORS 311.370 (1)(b),
or a similar provision, and at the time for making the
adjustments under ORS 311.370 (4), or a similar provision, the
tax collector shall notify the county treasurer of the amount the
state is obligated to pay under section 12 of this 2009 Act and
the identity of the taxpayer who made the prepayment. Thereafter,
the payment shall be made by the county treasurer to the taxpayer
and the state shall reimburse the county treasurer in the manner
provided in section 14 (4) of this 2009 Act. + }
SECTION 18. { + (1) If, for any reason, the Department of
Revenue makes a payment under sections 11 to 21 of this 2009 Act
and that payment should not have been made, subject to ORS
311.235 the amount of the payment shall be added to the
assessment and tax roll as an error correction under ORS 311.205
and shall be due and payable, with or without interest, as
provided in ORS 311.206.
(2) If a correction as described in subsection (1) of this
section does not become a lien under ORS 311.235, the amount of
the correction is a debt due and owing from the person who
received payment or the benefit of the payment and may be
collected under any of the provisions of the law relating to the
collection of personal property taxes.
(3) Any payment made by the department under sections 11 to 21
of this 2009 Act, and any amount added to the assessment and tax
roll under subsection (1) of this section shall be processed
under the rules adopted by the department.
(4) If any correction results in a refund to any person, the
refund shall be made by the appropriate officer from the
unsegregated tax collections account established under ORS
311.385. If any correction results in an additional amount due
from any person to the county, the funds, when collected, shall
be deposited in the unsegregated tax collections account
established under ORS 311.385.
(5) For each county there is established a special adjustment
account. The account shall reflect all roll corrections in
connection with sections 11 to 21 of this 2009 Act. Any net
balance due, as reflected by the account as of June 30 of each
year, shall be certified to the county assessor for inclusion in
the next certification under section 14 of this 2009 Act.
Interest paid or collected on account of any adjustment in
payment under sections 11 to 21 of this 2009 Act may not be
included in the adjustment account. The net balance as of June 30
shall be a net increase or decrease in the funds available in the
suspense account referred to in ORS 310.692.
(6) Interest may not accrue to or be paid by the state or the
county on any balance in the special adjustment account
established in subsection (5) of this section or the suspense
account referred to in ORS 310.692 on account of sections 11 to
21 of this 2009 Act. + }
SECTION 19. { + (1) On or before December 15 of each year, the
Department of Revenue shall send a notice to each taxpayer who
has claimed a principal residence property tax exemption for the
current tax year. The notice shall:
(a) Inform the taxpayer that the property has or has not
qualified for the principal residence property tax exemption for
the current tax year.
(b) Inform the taxpayer that the taxpayer must file an
application for the exemption under section 13 of this 2009 Act
on or before July 1 of the next year in order for the property to
receive the principal residence property tax exemption for the
next tax year.
(c) Contain any other information that the department considers
necessary to facilitate administration of the principal residence
property tax exemption.
(2) The department shall give the notice required under
subsection (1) of this section by an unsealed postcard or other
form of mail sent to the residence address of the taxpayer as
shown in the application for the exemption or as otherwise
determined by the department to be the correct address of the
taxpayer. + }
SECTION 20. { + For property tax years beginning on or after
July 1, 2009, the Department of Revenue shall recompute the
maximum amount of household income a taxpayer may receive in a
preceding calendar year in order to be eligible for the principal
residence property tax exemption. The computation shall be as
follows:
(1) Divide the U.S. City Average Consumer Price Index for the
average of the first six months of the previous calendar year by
the U.S. City Average Consumer Price Index for the average of the
first six months of 2009 to calculate an indexing ratio for the
current taxable year.
(2) Multiply the maximum household income provided in section
12 of this 2009 Act by the current taxable year indexing ratio,
computed as provided in subsection (1) of this section. + }
SECTION 21. { + (1) The county assessor and the Department of
Revenue shall cooperate in carrying out the purposes of sections
11 to 21 of this 2009 Act, including but not limited to
developing procedures to ensure compliance with the household
income standards for eligibility for the principal residence
property tax exemption under section 12 of this 2009 Act.
(2) The department may make rules, including the defining of
terms, to carry out the purposes of sections 11 to 21 of this
2009 Act. + }
SECTION 22. { + Sections 11 to 21 of this 2009 Act apply to
property tax years beginning on or after July 1, 2010. + }
{ +
ELDERLY RENTAL ASSISTANCE + }
SECTION 23. ORS 310.635 is amended to read:
310.635. (1) A taxpayer who is eligible for elderly rental
assistance shall be granted the rental assistance
{ - either - } in the amount determined under subsection (2) of
this section { - or by using the schedule for renters set forth
in subsection (3) of this section, whichever is greater - } . A
taxpayer is eligible for elderly rental assistance under this
section if:
(a) The taxpayer is 58 years of age or older before the close
of the calendar year immediately preceding the year in which the
rental assistance is claimed;
(b) The household income of the taxpayer is less than $10,000;
(c) The gross rent of the taxpayer is in excess of { - 20 - }
{ + five + } percent of household income; and
(d) The taxpayer files a claim with the Department of Revenue
as required by ORS 310.657.
(2) { + (a) If the gross rent of the taxpayer is in excess of
20 percent of household income, + } a taxpayer eligible for
elderly rental assistance under this section shall be paid by the
Department of Revenue an amount equal to the positive difference
between the taxpayer's gross rent, not to exceed $2,100, and 20
percent of household income.
{ + (b) If the gross rent of the taxpayer is in excess of 10
percent of household income, a taxpayer eligible for elderly
rental assistance under this section shall be paid by the
Department of Revenue an amount equal to the positive difference
between the taxpayer's gross rent, not to exceed $___, and 10
percent of household income.
(c) If the gross rent of the taxpayer is in excess of five
percent of household income, a taxpayer eligible for elderly
rental assistance under this section shall be paid by the
Department of Revenue an amount equal to the positive difference
between the taxpayer's gross rent, not to exceed $___, and five
percent of household income. + }
{ - (3) The schedule for renters referred to in subsection
(1) of this section is: - }
? _____________________________________________________________ ?
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
{ -
Maximum
Refundable
Rent
Household Constituting
Income Property Tax - }
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
{ -
$ 0 - 499 $ 250
500 - 999 245
1,000 1,499 238
1,500 1,999 228
2,000 2,499 217
2,500 2,999 205
3,000 3,499 192
3,500 3,999 179
4,000 4,499 165
4,500 4,999 151
5,000 5,499 136
5,500 5,999 121
6,000 6,499 106
6,500 6,999 91
7,000 7,499 77
7,500 7,999 63
8,000 8,499 50
8,500 8,999 38
9,000 9,499 27
9,500 9,999 18 - }
? _____________________________________________________________ ?
____________________________________________________________
END OF POSSIBLE IRREGULAR TABULAR TEXT
____________________________________________________________
{ - (4) - } { + (3) + } The elderly rental assistance
payments required by subsection (2) of this section shall be made
by the Department of Revenue during the month of October.
{ - (5) - } { + (4) + } The elderly rental assistance
granted under this section applies to gross rent paid in the
calendar year for which the claim is filed.
{ - (6) - } { + (5) + } The Department of Revenue may not
grant elderly rental assistance under this section:
(a) To a person who is, as of December 31 of the year for which
elderly rental assistance is claimed, a tenant-stockholder of a
cooperative housing corporation or a resident of a nonprofit home
for the elderly owned or being purchased by a corporation
described in ORS 307.375.
(b) For less than $1, after offsets for all amounts owed to the
state.
(c) For any period during which the taxpayer's needs were
included in a payment made by the Department of Human Services
pursuant to ORS 412.155. However, if it is determined that the
taxpayer's needs were included in a payment made by the
Department of Human Services under ORS 412.155 and the taxpayer
is eligible for the period for elderly rental assistance in an
amount greater than the payment, the Department of Revenue shall
grant elderly rental assistance in the amount of the difference.
{ - (7) - } { + (6) + } Elderly rental assistance allowed
pursuant to this section is not subject to garnishment under ORS
18.600 to 18.850, except by a government entity.
SECTION 24. { + The amendments to ORS 310.635 by section 23 of
this 2009 Act apply to elderly rental assistance payments for
which claims are filed on or after January 1, 2010. + }
{ +
ELDERLY RENTAL ASSISTANCE AND + }
{ +
PRINCIPAL RESIDENCE EXEMPTION FUNDING + }
SECTION 25. ORS 310.692 is amended to read:
310.692. (1) Amounts necessary to make the payments authorized
by ORS 307.244 and 310.635 { + and section 14 of this 2009
Act + } shall be transferred to a suspense account established
under ORS 293.445 from the appropriation made by the Legislative
Assembly to fund the elderly rental assistance program { + and
principal residence exemption programs + }. Moneys in the
suspense account are continuously appropriated to the Department
of Revenue to carry out the purposes of the elderly rental
assistance
{ - program - } { + and principal residence exemption
programs + }.
(2) If any portion of the tax liability for which the refund
payments described in subsection (1) of this section are
authorized are offset against the refund, the Department of
Revenue shall transfer from the suspense account referred to in
subsection (1) of this section to the General Fund an amount
equal to the income tax liability.
(3) Of the total amount transferred to the suspense account
referred to in subsection (1) of this section for the biennium,
the department shall allocate a portion to each fiscal year. The
allocation shall be the department's best estimate of the most
efficient use of the moneys in the suspense account so as to
minimize any reductions in the payments required under ORS
307.244 and 310.635 { + and section 14 of this 2009 Act + } for
each fiscal year.
(4) On or before November 1 of each fiscal year of each
biennium, the Department of Revenue shall determine the amount of
money needed to make the payments under ORS 307.244 and 310.635
{ + and section 14 of this 2009 Act + } for that fiscal year.
If the sum of the obligations is greater than the amounts
credited to the suspense account referred to in subsection (1) of
this section and allocated to that fiscal year for those
obligations under subsection (3) of this section, the payments
required under ORS 307.244 and 310.635 { + and section 14 of
this 2009 Act + } shall be proportionally reduced so that the
state does not accrue a debt in excess of the amount credited. A
claim for payment may not accrue to a taxpayer under ORS 310.635
or to a county under ORS 307.244 { + or section 14 of this 2009
Act + } in excess of the amount determined under this subsection.
(5) If the amount allocated to the first fiscal year of a
biennium under subsection (3) of this section exceeds the amount
of actual payments made under ORS 307.244 or 310.635, the excess
amount shall be available for payments under ORS 307.244 or
310.635 in the second fiscal year of the biennium.
SECTION 26. { + The amendments to ORS 310.692 by section 25 of
this 2009 Act apply to fiscal years beginning on or after July 1,
2010. + }
{ +
UNIFORM SALES AND USE TAX + }
{ +
ADMINISTRATION ACT + }
SECTION 27. { + Title. Sections 27 to 35 of this 2009 Act
shall be known and may be cited as the Uniform Sales and Use Tax
Administration Act. + }
SECTION 28. { + Definitions. As used in sections 27 to 35 of
this 2009 Act:
(1) 'Streamlined Sales and Use Tax Agreement' means the
Streamlined Sales and Use Tax Agreement adopted by the
Streamlined Sales Tax Project on November 12, 2002, as amended
and in effect on the effective date of this 2009 Act.
(2) 'Certified automated system' means software certified
jointly by the states that are signatories to the agreement to
calculate the tax imposed by each jurisdiction on a transaction,
determine the amount of tax to remit to the appropriate state and
maintain a record of the transaction.
(3) 'Certified service provider' means an agent certified
jointly by the states that are signatories to the agreement to
perform all of the seller's sales tax functions.
(4) 'Person' means an individual, trust, estate, fiduciary,
partnership, limited liability company, limited liability
partnership, corporation or any other legal entity.
(5) 'Sales tax' means the tax levied under sections 60 to 68 of
this 2009 Act.
(6) 'Seller' means any person making sales, leases or rentals
of personal property or services.
(7) 'State' means any state of the United States and the
District of Columbia.
(8) 'Use tax' means the tax levied under sections 69 to 77 of
this 2009 Act. + }
SECTION 29. { + Findings and declarations. The Legislative
Assembly finds and declares that entering into the Streamlined
Sales and Use Tax Agreement with one or more states to simplify
and modernize sales and use tax administration will substantially
reduce the burden of tax compliance for all sellers and for all
types of commerce. + }
SECTION 30. { + Authority to enter agreement. (1) The
Department of Revenue is authorized and directed to enter into
the Streamlined Sales and Use Tax Agreement with one or more
states to simplify and modernize sales and use tax administration
in order to substantially reduce the burden of tax compliance for
all sellers and for all types of commerce. In furtherance of the
agreement, the department is authorized to act jointly with other
states that are members of the agreement to establish standards
for certification of a certified service provider and certified
automated system, and to establish performance standards for
multistate sellers.
(2) The department is further authorized to take other actions
reasonably required to implement the provisions set forth in
sections 27 to 35 of this 2009 Act. Other actions authorized by
this section include, but are not limited to, the adoption of
rules and the joint procurement, with other member states, of
goods and services in furtherance of the agreement.
(3) The department or the designee of the department is
authorized to represent this state before the other states that
are signatories to the agreement. + }
SECTION 31. { + Relationship to state law. No provision of
the Streamlined Sales and Use Tax Agreement authorized by
sections 27 to 35 of this 2009 Act in whole or part invalidates
or amends any provision of the law of this state. Adoption of the
agreement by this state does not amend or modify any law of this
state. Implementation of any condition of the agreement in this
state, whether adopted before, at the time of or after membership
of this state in the agreement, must be by the action of this
state. + }
SECTION 32. { + Agreement requirements. The Department of
Revenue may not enter into the Streamlined Sales and Use Tax
Agreement unless the agreement requires each signatory state to
abide by all of the following requirements:
(1) The agreement must set restrictions to achieve more state
uniform sales and use tax rates through the following:
(a) Limiting the number of state rates;
(b) Eliminating maximums on the amount of state tax that is due
on a transaction; and
(c) Eliminating thresholds on the application of state tax.
(2) The agreement must establish uniform standards for the
following:
(a) The sourcing of transactions to taxing jurisdictions;
(b) The administration of exempt sales;
(c) The allowances a seller can take for bad debts; and
(d) Sales and use tax returns and remittances.
(3) The agreement must require states to develop and adopt
uniform definitions of sales and use tax terms. The definitions
must enable a state to preserve its ability to make policy
choices not inconsistent with the uniform definitions.
(4) The agreement must provide a central, electronic
registration system that allows a seller to register to collect
and remit sales and use taxes for all signatory states.
(5) The agreement must provide that registration with the
central registration system and the collection of sales and use
taxes in the signatory states will not be used as a factor in
determining whether the seller has nexus with a state for any
tax.
(6) The agreement must provide for reduction of the burdens of
complying with local sales and use taxes through the following:
(a) Eliminating variances between the state and local tax
bases;
(b) Requiring states to administer any sales and use taxes
levied by local jurisdictions within the state so that sellers
collecting and remitting these taxes will not have to register or
file returns with, remit funds to or be subject to independent
audits from local taxing jurisdictions;
(c) Restricting the frequency of changes in the local sales and
use tax rates and setting effective dates for the application of
local jurisdictional boundary changes to local sales and use
taxes; and
(d) Providing notice of changes in local sales and use tax
rates and of changes in the boundaries of local taxing
jurisdictions.
(7) The agreement must outline any monetary allowances that are
to be provided by the states to sellers or certified service
providers.
(8) The agreement must require each state to certify compliance
with the terms of the agreement prior to joining and to maintain
compliance, under the laws of the member state, with all
provisions of the agreement while a member.
(9) The agreement must require each state to adopt a uniform
policy for certified service providers that protects the privacy
of consumers and maintains the confidentiality of tax
information.
(10) The agreement must provide for the appointment of an
advisory council of private sector representatives and an
advisory council of nonmember state representatives to consult
with in the administration of the agreement. + }
SECTION 33. { + Cooperating states. The Streamlined Sales and
Use Tax Agreement authorized by sections 27 to 35 of this 2009
Act is to be an accord among individual states in furtherance of
their governmental functions. The agreement shall provide a
mechanism among the member states to establish and maintain a
cooperative, simplified system for the application and
administration of sales and use taxes under the laws of each
member state. + }
SECTION 34. { + Effect of agreement. (1) The Streamlined
Sales and Use Tax Agreement authorized by sections 27 to 35 of
this 2009 Act binds and inures only to the benefit of this state
and the other member states. No person, other than a member
state, is an intended beneficiary of the agreement. Any benefit
to a person other than a state is established by the law of this
state and the other member states and not by the terms of the
agreement.
(2) A person may not have any cause of action or defense under
the agreement or by virtue of the approval by this state of the
agreement. A person may not challenge, in any action brought
under any provision of law, any action or inaction by any
department, agency or other instrumentality of this state, or any
political subdivision of this state, on the ground that the
action or inaction is inconsistent with the agreement.
(3) No law of this state, or the application thereof, may be
declared invalid as to any person or circumstance on the ground
that the provision or application is inconsistent with the
agreement. + }
SECTION 35. { + Seller and third-party liability. (1) A
certified service provider is the agent of a seller, with whom
the certified service provider has contracted, for the collection
and remittance of sales and use taxes pursuant to the Streamlined
Sales and Use Tax Agreement authorized by sections 27 to 35 of
this 2009 Act. As the seller's agent, the certified service
provider is liable for sales and use tax due each member state on
all sales transactions the certified service provider processes
for the seller except as set out in this section.
(2)(a) A seller that contracts with a certified service
provider is not liable to this state for sales or use tax due on
transactions processed by the certified service provider unless
the seller misrepresented the type of items the seller sells or
committed fraud. In the absence of probable cause to believe that
the seller has committed fraud or made a material
misrepresentation, the seller is not subject to audit on
transactions processed by a certified service provider. A seller
is subject to audit for transactions not processed by a certified
service provider.
(b) Member states acting jointly may perform a system check of
the seller and review the seller's procedures to determine if a
certified service provider's system is functioning properly and
the extent to which the seller's transactions are being processed
by the certified service provider.
(3) A person that provides a certified automated system is
responsible for the proper functioning of that system and is
liable to the state for underpayments of tax attributable to
errors in the functioning of the certified automated system. A
seller that uses a certified automated system remains responsible
and is liable to the state for reporting and remitting tax.
(4) A seller that has a proprietary system for determining the
amount of tax due on transactions and has signed an agreement
establishing a performance standard for that system is liable for
the failure of the system to meet the performance standard. + }
{ +
SALES AND USE TAX + }
SECTION 36. { + Construction. Unless the context requires
otherwise, the definitions in sections 37 to 57 of this 2009 Act
govern the construction of sections 36 to 151 of this 2009
Act. + }
{ +
(Definitions) + }
SECTION 37. { + Business. 'Business' includes any activity
engaged in by any person or caused to be engaged in by a person
with the object of gain, benefit or advantage, either direct or
indirect. + }
SECTION 38. { + Delivery charge. 'Delivery charge' means a
charge by the seller of personal property or services for
preparation and delivery to a location designated by the
purchaser of personal property or services. + }
SECTION 39. { + Department; director. 'Department' means the
Department of Revenue, and 'director' means the Director of the
Department of Revenue. + }
SECTION 40. { + Floating home. 'Floating home' has the
meaning given that term in ORS 830.700. + }
SECTION 41. { + Gross receipts. (1) 'Gross receipts' means
the total amount of consideration, including cash, credit,
property and services, for which personal property or services
are sold, leased or rented, without any deduction for the
following:
(a) The seller's cost of the property that is being sold;
(b) The cost of materials, labor, interest, losses,
transportation to the seller, taxes imposed on the seller or
other expense of the seller;
(c) Charges by the seller for any services necessary to
complete the sale, other than delivery and installation charges;
(d) Delivery charges;
(e) Installation charges;
(f) The value of exempt personal property given to the
purchaser, if taxable and exempt personal property have been sold
by the seller as a single product; or
(g) Credit for a trade-in of property.
(2) 'Gross receipts' means the consideration described in
subsection (1) of this section that is valued in money, whether
the consideration is received in money or otherwise.
(3) 'Gross receipts' does not include:
(a) Discounts, including cash, term or coupons that are not
reimbursed by a third party, that are allowed by a seller and
taken by a purchaser on a sale;
(b) Interest, financing or carrying charges from credit
extended on the sale of personal property or services, if the
amount is separately stated on the invoice; or
(c) Taxes that are legally imposed directly on the purchaser
and that are separately stated on the invoice, bill of sale or
similar document given to the purchaser. + }
SECTION 42. { + In this state. 'In this state' or 'within this
state' means within the exterior limits of the State of Oregon
and includes all territory within these limits owned by or ceded
to the United States of America. + }
SECTION 43. { + Internal Revenue Code. + } { + 'Internal
Revenue Code ' means the federal Internal Revenue Code, as
amended and in effect on December 31, 2008. + }
SECTION 44. { + Lease. (1) 'Lease' means a transfer of
possession or control of tangible personal property for a fixed
or indeterminate term for consideration, or a future option to
purchase or extend the possession or control of tangible personal
property.
(2) 'Lease' does not include:
(a) A transfer of possession or control of property under a
security agreement or deferred payment plan that requires the
transfer of title upon completion of the required payments;
(b) A transfer of possession or control of property under an
agreement that requires the transfer of title upon completion of
required payments and payment of an option price that does not
exceed the greater of $100 or one percent of the total of
required payments;
(c) The provision of tangible personal property and an operator
of the tangible personal property for a fixed or indeterminate
period of time, if the operator is required for the equipment to
perform as designed. For purposes of this paragraph, an operator
must do more than maintain, inspect or set up the tangible
personal property;
(d) An agreement covering the rental of a motor vehicle, if the
rental agreement contains a terminal rental adjustment clause as
defined in section 7701(h)(3) of the Internal Revenue Code; or
(e) A rental agreement that was executed prior to the date the
Department of Revenue enters into the Streamlined Sales and Use
Tax Agreement. + }
SECTION 45. { + Manufactured structure. 'Manufactured
structure' has the meaning given that term in ORS 801.333. + }
SECTION 46. { + Motor vehicle or vehicle. (1) 'Motor vehicle '
has the meaning given that term in ORS 801.360.
(2) 'Vehicle' has the meaning given that term in ORS
801.590. + }
SECTION 47. { + Nonresident; resident. (1) 'Nonresident' means
an individual who is not a resident of this state.
(2) 'Resident' means:
(a) An individual who is domiciled in this state, unless the
individual maintains no permanent place of abode in this state,
does maintain a permanent place of abode elsewhere and spends in
the aggregate not more than 30 days of the tax year in this
state; or
(b) An individual who is not domiciled in this state but
maintains a permanent place of abode in this state and spends in
the aggregate more than 200 days of the tax year in this state,
unless the individual proves to the satisfaction of the
Department of Revenue that the individual's presence in this
state is only for a temporary or transitory purpose. + }
SECTION 48. { + Occasional sale. 'Occasional sale' includes:
(1) A sale of property not held or used by a seller in the
course of activities for which the seller is required to hold a
seller's permit or permits or would be required to hold a
seller's permit or permits if the activities were conducted in
this state, but only if such sale is not one of a series of sales
sufficient in number, scope and character to constitute an
activity for which the seller is required to hold a seller's
permit or would be required to hold a seller's permit if the
activity were conducted in this state; and
(2) Any transfer of 80 percent or more of the tangible personal
property, in terms of its selling price, held or used by a person
in the course of an activity requiring the holding of a seller's
permit if, after such transfer, the real or ultimate ownership of
such property is substantially similar to that which existed
before such transfer. For the purposes of this subsection,
stockholders, bondholders, partners or other persons holding an
interest in a corporation or other entity are regarded as having
the 'real or ultimate ownership' of the property of such
corporation or other entity. + }
SECTION 49. { + Purchase price; sales price. 'Purchase price
' or 'sales price' means the total amount of gross receipts
derived from the sale or lease of tangible personal property or
services. + }
SECTION 50. { + Retail sale. 'Retail sale' or 'sale at
retail' means a sale or lease for any purpose other than for
resale, sublease or subrent. + }
SECTION 51. { + Sales tax. 'Sales tax' means the tax levied
under sections 60 to 68 of this 2009 Act. + }
SECTION 52. { + Seller. 'Seller' means a person who makes,
leases or rents personal property or services. + }
SECTION 53. { + Services. + } { + ' Services' means all
activities engaged in for the benefit of other persons for a fee,
retainer, commission or other monetary charge, if the activities
predominantly involve the performance of a service as
distinguished from selling property. + }
SECTION 54. { + Storage and use. (1) 'Storage' includes any
keeping or retention in this state for any purpose except sale in
the regular course of business or subsequent use solely outside
this state of tangible personal property purchased from a
retailer.
(2) 'Use' includes the exercise of any right or power over
tangible personal property incident to the ownership of that
property, and also includes the possession of, or the exercise of
any right or power over, tangible personal property by a lessee
under a lease, except that 'use' does not include the sale of
that property in the regular course of business.
(3) 'Storage' and 'use' do not include the keeping, retaining
or exercising of any right or power over tangible personal
property for the purpose of subsequently transporting it outside
this state for use thereafter solely outside this state, or for
the purpose of being processed, fabricated or manufactured into,
attached to or incorporated into, other tangible personal
property to be transported outside this state and thereafter used
solely outside this state. + }
SECTION 55. { + Streamlined Sales and Use Tax Agreement. '
Streamlined Sales and Use Tax Agreement' has the meaning given
that term in section 28 of this 2009 Act. + }
SECTION 56. { + Tangible personal property. 'Tangible
personal property' means personal property that can be seen,
weighed, measured, felt or touched, that is in any other manner
perceptible to the senses or that is electricity, water, gas,
steam or prewritten computer software. + }
SECTION 57. { + Use tax. 'Use tax' means the tax levied under
sections 69 to 77 of this 2009 Act. + }
{ +
(Sourcing Rules and Definitional Rules) + }
SECTION 58. { + The Department of Revenue shall adopt rules
for sourcing the retail sale of products or services. The rules
shall conform to the sourcing provisions of the Streamlined Sales
and Use Tax Agreement. + }
SECTION 59. { + The Department of Revenue may adopt rules
defining terms for purposes of imposing and administering the
sales or use tax, including rules defining categories of products
or services. The rules shall conform to definitions set forth in
the Streamlined Sales and Use Tax Agreement. + }
{ +
(Sales Tax) + }
SECTION 60. { + Imposition of tax; rate. In addition to all
other taxes of every kind, for the privilege of selling tangible
personal property or services at retail, a tax is imposed upon
all retailers at the rate of five percent of the gross receipts
of any retailer from the sale of all tangible personal property
sold at retail in this state. + }
SECTION 61. { + Reimbursement. (1) The sales tax imposed by
section 60 of this 2009 Act is a tax upon the gross receipts of
retailers. Whether a retailer may add sales tax reimbursement to
the sales price of the tangible personal property or services
sold at retail to a purchaser depends solely upon the terms of
the agreement of sale. It shall be presumed that the parties
agreed to the addition of sales tax reimbursement to the sales
price of tangible personal property sold at retail to a purchaser
if:
(a) The agreement of sale expressly provides for such addition
of sales tax reimbursement;
(b) Sales tax reimbursement is shown on the sales check or
other proof of sale; or
(c) The retailer posts in the retailer's premises in a location
visible to purchasers, or includes on a price tag or in an
advertisement or other printed material directed to purchasers, a
notice to the effect that reimbursement for sales tax will be
added to the sales price of all items or certain items, whichever
is applicable.
(2) It shall be presumed that the property or services, the
gross receipts from the sale of which are subject to the sales
tax, are sold at a price that includes tax reimbursement if the
retailer posts in the premises or includes on a price tag or in
an advertisement, whichever is applicable, one of the following
notices:
(a) 'All prices of taxable items include sales tax
reimbursement computed to the nearest mill. '
(b) 'The price of this item includes sales tax reimbursement
computed to the nearest mill.' + }
SECTION 62. { + Collection schedule. (1) The Department of
Revenue shall prepare a sales tax collection schedule showing the
total amount that shall be collected by the retailer from a
consumer in reimbursement of the sales tax, computed on each
sales price, from one cent to and including $100, at the rate of
five percent. The schedule shall be identical to the following
table up to the amounts specified: + }
________________________________________________________________
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
{ +
Price Tax + }
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
{ +
$ .01 to .09.........$ .00
.10 to .29.......... .01
.30 to .49.......... .02
.50 to .69.......... .03
.70 to .89.......... .04
.90 to1.09.......... .05 + }
____________________________________________________________
END OF POSSIBLE IRREGULAR TABULAR TEXT
____________________________________________________________
________________________________________________________________
{ + (2) Reimbursement on sales prices in excess of those
shown in the schedules may be computed by applying the applicable
tax rate to the sales price, rounded off to the nearest cent by
eliminating any fraction less than one-half cent and increasing
any fraction of one-half cent or more to the next higher cent.
(3) The sales tax collection schedule shall be made available
for inspection and reproduction.
(4) Each retailer who collects amounts from a consumer in
reimbursement of the sales tax shall either:
(a) Use the schedule prepared by the department or the method
provided under subsection (2) of this section in computing the
amount to be collected, based upon the sales price of the item
sold if one item is sold, and if more than one item is sold in
any one transaction, upon the sum of the sales prices of the
items sold; or
(b) If authorized under rules adopted by the department,
include in the sales price of each item an amount of
reimbursement computed to the nearest one-tenth of a cent at the
applicable tax rate and post a notice in the retailer's premises
stating that each posted or advertised price includes
reimbursement so computed. When both taxable and nontaxable items
are included in the same transaction, the requirement of
paragraph (a) of this subsection regarding computation of tax
reimbursement upon the sum of the aggregate sales prices applies
only if the purchaser requests at the time of the sale that the
computation be made in this way.
(5) Each retailer may retain from the taxes otherwise due under
the Sales and Use Tax Law, out of the remittances by the retailer
under sections 126 and 127 of this 2009 Act, an amount equal to
1.5 percent of the tax owed by such retailer for each reporting
period. Such amounts may be retained only if the remittances were
paid when due as required by sections 126 and 127 of this 2009
Act. + }
SECTION 63. { + Vending machines. (1)(a) The Department of
Revenue may authorize a seller to pay the sales tax upon sales
made through vending machines and similar devices, or under
conditions of business such as to render impracticable the
collection of the tax as a separate item, and waive collection of
the tax from the purchaser.
(b) If sales are made by receipt of a coin or coins dropped
into a receptacle that results in delivery of the merchandise in
single purchases of smaller value than the minimum sale upon
which a one cent tax may be collected from the purchaser,
according to the schedule prescribed under section 62 of this
2009 Act, and if the design of the device is such that multiple
sales of items are not possible or cannot be detected so as
practicably to assess a tax, then no tax shall be assessed or
collected on the gross receipts from such sales if adequate and
complete records are kept by the vending machine operator,
readily available for inspection by the department. If such
records are not maintained, the gross receipts for the purposes
of the sales tax are 50 percent of the gross receipts of the
vending machine through which such sales are made, determined by
the department according to the best of its information and
belief, using such records as are available.
(c) As used in this section, 'adequate and complete records'
means that the vending machine operator regularly maintains
records that would enable a department auditor to accurately
ascertain liability for sales taxes under section 60 of this 2009
Act, showing the location or locations of each machine operated
by the vending machine operator during each reporting period, the
serial number thereof, purchases and inventories of merchandise
bought for sale through all such machines and the gross receipts
derived from the operation at each location during each reporting
period.
(2) No authority under subsection (1) of this section may be
granted except upon application to the department and unless the
department finds that the conditions of the applicant's business
are such as to render impracticable the collection of the tax in
the manner otherwise provided. If required by the department, an
applicant under this section must furnish a proper bond
sufficient to secure the payment of the tax. One permit is
sufficient for all machines of one operator. A statement shall be
affixed upon each vending machine in a conspicuous space by the
operator thereof, stating the operator's name, place of business
and permit number. + }
SECTION 64. { + Excess collection. (1) When an amount
represented by a person to a purchaser as constituting
reimbursement for taxes due under section 60 of this 2009 Act is
computed upon an amount that is not taxable or is in excess of
the taxable amount and is actually paid by the purchaser to the
person, the amount so paid shall be returned by the person to the
purchaser upon notification by the Department of Revenue or by
the purchaser that such excess has been ascertained. In the event
of the person's failure or refusal to do so, the amount paid, if
knowingly or mistakenly computed by the person upon an amount
that is not taxable or is in excess of the taxable amount, shall
be remitted by that person to this state. However, those amounts
remitted to this state shall be credited by the department on any
amounts due and payable under section 60 of this 2009 Act on the
same transaction from the person by whom it was paid to this
state and the balance, if any, shall constitute an obligation due
from the person to this state.
(2) Subsection (1) of this section does not apply to an amount
computed by using a schedule designed to result in collection in
an amount as nearly equivalent as practicable to the tax
applicable to total taxable sales and to the average amount of
individual taxable sales. + }
SECTION 65. { + Worthless accounts. (1) A person is relieved
from liability for sales tax or use tax insofar as the measure of
the tax is represented by accounts that, for federal income tax
purposes, constitute deductible bad debt under section 166 of the
Internal Revenue Code, except that the amount of bad debt for
which liability is relieved under this section shall be reduced
by:
(a) Interest or other financing charges;
(b) Sales or use taxes charged on the sale of the property or
services from which the bad debt is derived;
(c) Uncollectible amounts on property that remains in the
possession of the seller until the full purchase price is paid;
(d) Expenses incurred in attempting to collect any debt; or
(e) The value of repossessed property.
(2) Any deduction allowed under this section for bad debt may
not include interest.
(3) Bad debt may be deducted only on the sales or use tax
return for the period during which the bad debt is written off as
uncollectible in the books and records of the taxpayer and is
eligible for deduction for federal tax purposes, or would be
eligible for deduction if the sales or use taxpayer were required
to file a federal income tax return.
(4) If bad debt that is deducted under subsection (1) of this
section is subsequently collected, the amount collected shall be
added to the sales tax liability of the taxpayer for the
reporting period in which the amount is collected.
(5) If the amount of bad debt that may be deducted exceeds the
sales or use tax liability of the taxpayer, the excess may be
refunded to the taxpayer.
(6) The Department of Revenue shall adopt rules for the
allocation of bad debt between Oregon and other states in cases
in which the amount of bad debt for federal income tax purposes
is attributable to debt from both within and outside of
Oregon. + }
{ +
(Seller Registration) + }
SECTION 66. { + (1) The Department of Revenue shall design and
implement an online sales tax registration system that complies
with the Streamlined Sales and Use Tax Agreement.
(2) A person may not be required to pay a fee in order to
register for sales tax purposes.
(3) The department may adopt any rules necessary to implement
the registration system or facilitate registration or the
operation of the registration system. + }
SECTION 67. { + (1) Each person seeking to conduct business in
this state as a seller shall register with the Department of
Revenue through the online registration system described in
section 66 of this 2009 Act.
(2) A person acting as an agent of a seller may register on
behalf of the seller.
(3) A person may not conduct business as a seller in this state
without registering under this section.
(4) Each officer of a corporation that conducts business in
violation of subsection (3) of this section is guilty of
violating that subsection. + }
{ +
(Presumptions) + }
SECTION 68. { + For the purpose of the proper administration
of the Sales and Use Tax Law and to prevent evasion of the sales
tax, all gross receipts are presumed subject to the tax until the
contrary is established. The burden of proving that a sale of
tangible personal property or services is not a sale at retail is
upon the person who makes the sale. + }
{ +
(Use Tax) + }
SECTION 69. { + Imposition of tax; rate. An excise tax is
imposed on the storage, use or other consumption in this state of
tangible personal property purchased from any retailer for
storage, use or other consumption in this state, at the rate of
five percent of the purchase price of the property. + }
SECTION 70. { + Liability for tax. Every person storing,
using or otherwise consuming in this state tangible personal
property purchased from a retailer is liable for the use tax. The
person's liability is not extinguished until the tax has been
paid to this state, except that a receipt from a retailer engaged
in business in this state or from a retailer who is authorized by
the Department of Revenue, under such rules as it may adopt, to
collect the tax and who, for the purposes of the use tax, is
regarded as a retailer engaged in business in this state, given
to the purchaser pursuant to section 71 of this 2009 Act, is
sufficient to relieve the purchaser from further liability for
the tax to which the receipt refers. + }
SECTION 71. { + Collection by retailer; tax as debt;
itemization of tax. (1) Except as provided in section 95 of this
2009 Act, every retailer engaged in business in this state, every
retailer required to collect the use tax and every retailer to
whom authorization to collect tax has been granted by the
Department of Revenue, who makes sales of tangible personal
property for storage, use or other consumption in this state, not
exempt for purposes of the Sales and Use Tax Law, at the time of
making the sales or if the storage, use or other consumption of
the tangible personal property is not then taxable, at the time
the storage, use or other consumption becomes taxable, shall
collect the tax from the purchaser and shall give to the
purchaser a receipt therefor in the manner and form prescribed by
the department.
(2) The tax required to be collected under subsection (1) of
this section by the retailer and any amount unreturned to the
purchaser that is not tax but was collected under representation
by the retailer that it was a tax constitutes a debt owed by the
retailer to this state.
(3) With respect to leases constituting sales of tangible
personal property, the tax shall be collected from the lessee at
the time amounts are paid by the lessee under the lease.
(4) Unless the department otherwise provides under its rules,
the use tax required to be collected by the retailer from the
purchaser under subsections (1) to (3) of this section shall be
displayed separately from the list price, the price advertised in
the premises, the marked price or other price on the sales check
or other proof of sale. + }
SECTION 72. { + Retailer engaged in business in this state.
For purposes of sections 69 to 77 of this 2009 Act, 'retailer
engaged in business in this state' means:
(1) Any retailer maintaining, occupying or using, permanently
or temporarily, directly or indirectly, or through a subsidiary
or other agent, by whatever name, an office, place of
distribution, sales or sample room or place, warehouse or storage
place or other place of business.
(2) Any retailer having any representative, agent, salesperson,
canvasser or solicitor operating in this state under the
authority of the retailer or its subsidiary for the purpose of
selling, delivering or taking orders for any tangible personal
property.
(3) With respect to a lease, any retailer deriving rentals from
a lease of tangible personal property situated in this state. + }
SECTION 73. { + Registration of retailers. Every retailer
selling tangible personal property for storage, use or
consumption in this state shall register with the Department of
Revenue in the manner prescribed in section 67 of this 2009
Act. + }
SECTION 74. { + Collection of tax by retailer maintaining or
not maintaining place of business in state. The Director of the
Department of Revenue may, in the director's discretion, upon
application of the retailer, authorize the collection of the use
tax imposed by section 69 of this 2009 Act by any retailer who
maintains or who does not maintain a place of business within
this state and who furnishes adequate security to ensure
collection and payment of the tax. The retailer shall be issued,
without charge, a permit to collect the tax in the manner and
subject to the rules and agreements as the director shall
prescribe or require. When so authorized, it shall be the duty of
the retailer to collect the tax upon all tangible personal
property sold by the retailer for use, storage or other
consumption within this state, in the same manner and subject to
the same requirements as any other retailer. The permit may be
canceled if, at any time, the director considers the security
inadequate or that the tax can more effectively be collected from
the person using the property in this state. + }
SECTION 75. { + Excessive collections. When an amount
represented by a person to a purchaser as constituting
reimbursement for taxes due under section 69 of this 2009 Act is
computed upon an amount that is not taxable or is in excess of
the taxable amount and is actually paid by the purchaser to the
person, the amount so paid shall be returned by the person to the
purchaser upon notification by the Department of Revenue or by
the purchaser that such excess has been ascertained. In the event
of the person's failure or refusal to do so, the amount so paid,
if knowingly or mistakenly computed by the person upon an amount
that is not taxable or is in excess of the taxable amount, shall
be remitted by that person to this state. However, those amounts
remitted to this state shall be credited by the department on any
amounts due and payable under section 69 of this 2009 Act on the
same transaction from the person by whom it was paid to this
state and the balance, if any, shall constitute an obligation due
from the person to this state. + }
SECTION 76. { + Presumptions. For the purpose of the proper
administration of the Sales and Use Tax Law and to prevent
evasion of the use tax and the duty to collect the use tax, the
following presumptions are established:
(1) Tangible personal property sold by any person for delivery
in this state is sold for storage, use or other consumption in
this state unless the contrary is established. The burden of
proving the contrary is upon the person who makes the sale unless
the person takes from the purchaser a resale certificate to the
effect that the property is purchased for resale.
(2) Tangible personal property shipped or brought to this state
by the purchaser was purchased from a retailer on or after the
operative date of this section for storage, use or other
consumption in this state.
(3) Tangible personal property delivered outside this state to
a purchaser known by the retailer to be a resident of this state
was purchased from a retailer for storage, use or other
consumption in this state and stored, used or otherwise consumed
in this state. This presumption may be controverted by a
statement in writing, signed by the purchaser or the authorized
representative, and retained by the vendor, that the property was
purchased for use at a designated point or points outside this
state. This presumption may also be controverted by other
evidence satisfactory to the Department of Revenue that the
property was not purchased for storage, use or other consumption
in this state.
(4) A motor vehicle purchased outside of this state that is
brought into this state on or before the 90th day after its
purchase, was acquired for storage, use or other consumption in
this state. However, a member of the Armed Forces of the United
States on active duty who purchases a motor vehicle prior to the
effective date of discharge of the member is not subject to this
presumption. The member is not considered to have purchased the
motor vehicle for storage, use or other consumption in this state
unless at the time of purchase the member intended to use it in
this state, such intent resulting from the member's own
determination rather than from official orders received as a
member of the Armed Forces transferring the member to this
state. + }
SECTION 77. { + Credit for tax paid to another jurisdiction.
(1) A credit shall be allowed against, but may not exceed, the
taxes imposed on any person by the Sales and Use Tax Law by
reason of the storage, use or other consumption of tangible
personal property in this state to the extent that the person has
paid a general retail sales or use tax, or reimbursement
therefor, imposed with respect to that property by any other
state or political subdivision thereof prior to the storage, use
or other consumption of that property in this state.
(2) A credit otherwise permitted under subsection (1) of this
section may not be allowed against taxes that are measured by
periodic payments made under a lease, to the extent that the
taxes imposed by any other state or political subdivision thereof
were also measured by periodic payments made under a lease for a
period prior to the storage, use or other consumption of the
property in this state. + }
{ +
(Resale Certificates) + }
SECTION 78. { + Effect of certificate. The resale certificate
referred to in section 76 of this 2009 Act relieves the person
selling the property from liability for sales tax or the duty to
collect use tax only if it is taken from a person who is engaged
in the business of selling tangible personal property or services
and who is registered under section 67 or 73 of this 2009
Act. + }
SECTION 79. { + Form of certificate. A resale certificate
must be signed by and bear the name and address of the purchaser,
indicate the number of the permit issued to the purchaser and
indicate the general character of the tangible personal property
sold by the purchaser in the regular course of business. The
resale certificate shall be substantially in such form as the
Department of Revenue prescribes. + }
SECTION 80. { + Retention, demonstration or display;
liability of purchaser. (1) If a purchaser who gives a resale
certificate or purchases property for the purpose of reselling it
makes any storage or use of the property other than retention,
demonstration or display while holding it for sale in the regular
course of business, the storage or use is taxable to the
purchaser under section 69 of this 2009 Act as of the time the
property is first so stored or used by the purchaser and, except
as provided in subsections (2) and (3) of this section, the sales
price of the property to the purchaser is the measure of the tax.
(2) If the use is limited to the loan of the property to
customers as an accommodation while awaiting delivery of property
purchased or leased from the lender or while property is being
repaired for customers by the lender, the measure of the tax is
the fair rental value of the property for the duration of each
loan so made.
(3) If the property is used frequently for purposes of
demonstration or display while holding it for sale in the regular
course of business and is used partly for other purposes, the
measure of the tax is the fair rental value of the property for
the period of such other use or uses. + }
SECTION 81. { + Leases; election to pay use tax. If a
purchaser acquires property in a transaction described in section
48 (2) of this 2009 Act and leases such property, the purchaser
may elect at the time the property is first leased, after the
operative date of this section, to pay use tax measured by the
purchase price of the property. For purposes of this section:
(1) 'Purchaser' shall include a transferee who acquires
property in a transaction that qualifies under the provisions of
section 48 (2) of this 2009 Act; and
(2) The purchase price paid by the transferee shall be the same
as that paid by the original purchaser. + }
SECTION 82. { + Resale certificate; fungible goods. If a
purchaser gives a resale certificate with respect to the purchase
of fungible goods and thereafter commingles these goods with
other fungible goods not so purchased but of such similarity that
the identity of the constituent goods in the commingled mass
cannot be determined, sales from the mass of commingled goods
shall be deemed to be sales of the goods so purchased until a
quantity of commingled goods equal to the quantity of purchased
goods so commingled has been sold. + }
SECTION 83. { + Improper use of certificate. No person shall
give, for the purpose of evading payment to the seller or other
person selling the property of the amount of the tax applicable
to the transaction, a resale certificate for property that the
person knows, at the time of purchase, is not to be resold by the
person in the regular course of business. + }
{ +
(Direct Payment Permits) + }
SECTION 84. { + Direct payment permits. (1) The Department of
Revenue may authorize a purchaser of substantial amounts of
tangible personal property or services to pay the sales or use
tax directly to the department and to waive the collection of the
tax by the seller.
(2) The department shall design and implement a direct pay
permit program that complies with the requirements of the
Streamlined Sales and Use Tax Agreement.
(3) In order to directly pay sales or use tax under subsection
(1) of this section, a purchaser shall obtain a direct pay permit
from the department in the time and manner prescribed by the
department by rule.
(4)(a) The department may revoke a direct pay permit and the
authority granted to a purchaser under a direct pay permit for
failure to comply with the conditions under which the authority
was granted or for other reasons constituting the misuse of the
authority.
(b) Upon revocation of the direct pay permit, a purchaser shall
give written notice of the revocation to each seller with whom
the purchaser has transacted business using a direct pay permit,
and shall supply the department with evidence that the notice has
been given. Notwithstanding section 143 of this 2009 Act, if the
purchaser fails to notify a seller of the revocation, the
department may give notice of the revocation to the seller.
(c) Notwithstanding paragraphs (a) and (b) of this subsection,
a direct pay permit may be revoked only to the extent the
revocation is allowable under the Streamlined Sales and Use Tax
Agreement. + }
{ +
(Absorption of Tax by Retailer) + }
SECTION 85. { + Unlawful advertising. Except as otherwise
provided by law or rule of the Department of Revenue, no retailer
shall advertise, hold out or state to the public or to any
customer, directly or indirectly, that the sales tax or use tax
on tangible personal property or services or any part thereof:
(1) Will be assumed or absorbed by the retailer;
(2) Will not be added to the selling price of the property
sold; or
(3) If added, will be refunded in whole or in part. + }
{ +
(Vehicles, Vessels and Aircraft) + }
SECTION 86. { + Definitions. (1) As used in sections 86 to 97
of this 2009 Act, unless the context requires otherwise:
(a) 'Aircraft' means any powered contrivance used or designed
for navigation of or flight in the air, except a rocket or
missile.
(b) 'Vessel' means any boat, ship, barge, craft or floating
object designed for navigation in the water except:
(A) A seaplane;
(B) A watercraft specifically designed to operate on a
permanently fixed course, the movement of which is restricted to
or guided on such permanently fixed course by means of a
mechanical device on a fixed track or arm to which the watercraft
is attached or by which the watercraft is controlled, or by means
of a mechanical device attached to the watercraft itself;
(C) A watercraft of a type designed to be propelled solely by
oars or paddles;
(D) A watercraft of eight feet or less in length of a type
designed to be propelled by sail;
(E) A floating home; or
(F) A boathouse, as defined in ORS 830.700.
(c) 'Vehicle' means a vehicle or motor vehicle for which
registration or a certificate of title is required under ORS
803.025 or 803.300, or would be required if the vehicle were not
exempted from registration or certification requirements under
ORS 801.026. 'Vehicle' does not include any of the following:
(A) A manufactured structure.
(B) A snowmobile, as defined in ORS 801.490.
(C) A school bus, as defined in ORS 801.460.
(D) An ambulance, as defined in ORS 801.115, an emergency
vehicle, as defined in ORS 801.260, or other fire apparatus or
fire engine.
(E) A bicycle, as defined in ORS 801.150.
(F) A farm tractor, as defined in ORS 801.265, or a farm
trailer, as defined in ORS 801.270, or other implements of
husbandry, as defined in ORS 801.310.
(G) Fixed load vehicles, as defined in ORS 801.285, that are
subject to ad valorem property taxation.
(H) Golf carts, as defined in ORS 801.295, and similar vehicles
described in ORS 803.030 (13).
(I) Road rollers.
(J) A trolley.
(K) Well drilling machinery.
(L) Wheelchairs.
(2) A motor or other component part of a vessel, whether or not
detachable, is considered to be a part of the vessel when sold
with the vessel. + }
SECTION 87. { + Persons that are retailers of vehicles,
vessels or aircraft. Every person making a retail sale of a
vehicle, vessel or aircraft is a retailer of the vehicle, vessel
or aircraft for purposes of the Sales and Use Tax Law, regardless
of whether the person is a retailer by reason of other provisions
of the Sales and Use Tax Law unless another person is the
retailer, as provided in section 88 of this 2009 Act. + }
SECTION 88. { + Sales through certified dealers or
dismantlers. Every person holding a certificate as a dealer or a
dismantler under ORS chapter 822 is the retailer of a vehicle
when a retail sale of the vehicle is made through the person and
the person provides to the Department of Transportation a notice
of transfer with respect to the vehicle. That person shall hold a
seller's permit and remit tax to the Department of Revenue with
respect to those sales in the same manner as a dealer or
dismantler making sales on the dealer's or dismantler's own
account. For purposes of this section, 'sale' does not include a
lease. + }
SECTION 89. { + Sales tax; exemption if seller other than
dealer or dismantler. There are exempted from the computation of
the amount of the sales tax the gross receipts from sales of
vehicles required to be registered or titled by the Department of
Transportation when the retailer is other than a person certified
as a dealer or a dismantler under ORS chapter 822. However, this
exemption does not extend to the rentals payable under a lease of
tangible personal property. + }
SECTION 90. { + Boat trailers. Notwithstanding section 89 of
this 2009 Act, the gross receipts from the sales of boat trailers
by persons in the business of selling boats or boat trailers are
not exempt from the computation of the amount of sales tax. + }
SECTION 91. { + Vessels and aircraft; sellers. There are
exempted from the computation of the amount of the sales tax the
gross receipts from the sale of a vessel or aircraft when the
retailer is other than a person required to hold a seller's
permit issued under the Sales and Use Tax Law by reason of the
number, scope and character of the sales by the person of vessels
or aircraft, as the case may be. + }
SECTION 92. { + Seller's permit requirements. If a person is
engaged in the business of selling vehicles, vessels or aircraft,
the person is not excused from the requirements of the Sales and
Use Tax Law relating to seller's permits, collection and payment
of sales tax or any other provision of the Sales and Use Tax Law
by reason of the exemptions provided in sections 89 and 91 of
this 2009 Act. + }
SECTION 93. { + Family sales. There are exempted from the
taxes imposed by the Sales and Use Tax Law the gross receipts
from the sale of, and the storage, use or other consumption in
this state of, a vehicle, vessel or aircraft, when the person
selling the property is either by blood, marriage or adoption the
parent, grandparent, child or spouse of the purchaser and the
person selling is not engaged in the business of selling the type
of property for which the exemption is claimed. + }
SECTION 94. { + Substantially same ownership after transfer.
There are exempted from the taxes imposed by the Sales and Use
Tax Law the gross receipts from the sale of, and the storage, use
or other consumption in this state of, a vehicle, vessel or
aircraft, when such property is included in any transfer of 80
percent or more of the tangible personal property, in terms of
its selling price, held or used in the course of a business
activity of the person selling the property, and when after such
transfer the real or ultimate ownership of such property is
substantially similar to that which existed before such transfer.
For the purposes of this section, stockholders, bondholders,
partners or other persons holding an interest in a corporation or
other entity are regarded as having the 'real or ultimate
ownership' of the property of such corporation or other
entity. + }
SECTION 95. { + Use tax; payment; interest and penalties. (1)
Notwithstanding section 126 or 127 of this 2009 Act, except when
the sale is by lease, the use taxes imposed with respect to the
storage, use or other consumption in this state of vehicles,
vessels and aircraft are due and payable by the purchaser at the
time the storage, use or other consumption of the property first
becomes taxable to the Department of Revenue or to the following,
whichever is applicable:
(a) In the case of a vehicle required to be titled or
registered, to the Department of Transportation before a
certificate of title or registration may be issued to the
purchaser by the Department of Transportation.
(b) In the case of a boat that is subject to certification of
title, or registration if no certificate of title is to be
issued, by the State Marine Board pursuant to ORS 830.700 to
830.870, to the Department of Revenue before it may be certified
or registered by the State Marine Board.
(c) In the case of aircraft subject to registration for the
first time to the purchaser by the Oregon Department of Aviation
pursuant to ORS 837.040 to 837.070, to the Department of Revenue
before it may be registered by the Oregon Department of Aviation.
(2) If the purchaser of a vehicle, boat or aircraft mentioned
in subsection (1) of this section does not make application for
registration or certification to the Department of
Transportation, the Oregon Department of Aviation or the State
Marine Board, whichever is applicable, within 30 days after the
date of purchase of the vehicle, boat or aircraft, the purchaser
then becomes liable for a penalty as specified in section 128 (1)
of this 2009 Act, but no interest shall accrue. However, if the
purchaser does not make application for certification or
registration or does not pay the amount of use tax due within 90
days after the date of purchase, or files a return with the
Department of Revenue that is not timely, the purchaser shall
become fully liable for the penalties and interest as provided in
section 128 of this 2009 Act, which shall be collectible by the
Department of Revenue or the Department of Transportation in the
same manner and subject to the same procedures as for other
delinquent sales and use taxes. The Department of Transportation
shall collect delinquent use tax, penalties and interest as
provided in this section and section 97 of this 2009 Act with
respect to any delinquent application for certification of title
or registration of a vehicle.
(3) Application to the Department of Transportation for
certification of title or registration of a vehicle accompanied
by payment of the use tax by the purchaser relieves the purchaser
of the obligation to file a separate return with the Department
of Revenue under section 127 of this 2009 Act. + }
SECTION 96. { + Presumption on sale to lessee. There shall be
a presumption that a transfer of a vehicle to a lessee by a
lessor was a sale for resale if the lessee transfers title and
registration to a third party within 10 days from the date the
lessee acquired title from the lessor at the expiration or
termination of a lease. The presumption may be rebutted by
evidence that the sale was not for resale prior to use. + }
SECTION 97. { + Use tax; collection by Department of
Transportation; disposition of proceeds. (1) Except when the sale
is by lease, in the collection of the use tax on motor vehicles
for which a certificate of title or registration is required, the
Department of Transportation shall act as collecting agent. The
Department of Transportation shall collect the use tax, and any
penalty or interest that may be due, at the time an applicant
applies for the registration of, or certification or transfer of
title to, the motor vehicle, unless:
(a) The applicant exhibits a retailer's receipt showing that
the retail sales tax has been collected by the retailer;
(b) The application is for the renewal of registration;
(c) The applicant presents an exemption certificate provided by
the Department of Revenue under section 125 of this 2009 Act; or
(d) The applicant presents satisfactory evidence showing that
the sales tax or the use tax has been paid on the vehicle in
question.
(2) Every applicant for registration or issuance or transfer of
certificate of title who is subject to payment of the use tax
shall declare the value of the vehicle for which application is
made, which shall consist of the consideration paid or contracted
to be paid therefor. No person wilfully shall misrepresent or
fail to declare such value.
(3) The moneys collected by the Department of Transportation
under this section shall be deposited promptly in the Department
of Transportation Driver and Motor Vehicle Suspense Account
established under ORS 802.100 (1). As much as is necessary of the
moneys so collected is appropriated continuously to the
Department of Transportation to pay the administrative expenses
of the Department of Transportation in collecting the use tax
under this section. All moneys in excess of these administrative
expenses shall be transferred monthly to the Sales Tax Fund
established under section 148 of this 2009 Act. At least once
each month the Department of Transportation shall account to the
Department of Revenue for all use tax moneys collected and
administrative expenses retained under this section. The
Department of Transportation shall turn over to the Department of
Revenue all reports, applications and other information required
by the Department of Revenue that have been obtained in the
collection and administration of the use tax on motor vehicles.
(4) An applicant who has paid a use tax under this section may
apply to the Department of Revenue for a refund within the time
and in the manner provided under ORS 305.270 if the applicant has
reason to believe the use tax was not due and owing.
(5) The provisions of this section are in addition to any other
methods prescribed in the Sales and Use Tax Law for the
collection of the use tax. + }
{ +
(Exemptions Generally) + }
SECTION 98. { + Exemptions must be specific. Notwithstanding
any other provision of law, no exemption may be made from the
sales tax or use tax unless such exemption is provided in the
Sales and Use Tax Law. + }
SECTION 99. { + Definition of 'exempted from the taxes
imposed by the Sales and Use Tax Law.' 'Exempted from the taxes
imposed by the Sales and Use Tax Law,' as used in sections 93, 94
and 100 to 113 of this 2009 Act, means, in the case of the sales
tax, exempted from the computation of the amount of tax
imposed. + }
SECTION 100. { + Constitutional exemptions; Indians. (1)
There are exempted from the taxes imposed by the Sales and Use
Tax Law those transactions that this state is prohibited from
taxing under the laws or Constitution of the United States or
under the Oregon Constitution, including but not limited to gross
receipts derived from contracts in existence prior to the
effective date of this 2009 Act.
(2) There are exempted from the taxes imposed by the Sales and
Use Tax Law the gross receipts from the sale, storage, use or
consumption of tangible personal property to an Indian tribe or
Indian enterprise within an Indian reservation. + }
SECTION 101. { + Water. There are exempted from the taxes
imposed by the Sales and Use Tax Law the gross receipts from the
sales, furnishing or service of and the storage, use or other
consumption in this state of water. As used in this section,
'water' does not include ice. + }
SECTION 102. { + Food products. (1) There are exempted from
the taxes imposed by the Sales and Use Tax Law the gross receipts
from the sale of and the storage, use or other consumption in
this state of food and food ingredients.
(2) The exemption under this section does not apply to prepared
food. + }
SECTION 103. { + Alcoholic beverages taxable. Notwithstanding
ORS 471.725, 471.730 or 471.745 or any other provision of law to
the contrary, the taxes imposed by sections 60 and 69 of this
2009 Act apply to the gross receipts from the sale of, or the
storage, use or other consumption of alcoholic beverages. + }
SECTION 104. { + Manufacturing machinery and equipment. There
are exempted from the taxes imposed by the Sales and Use Tax Law
the gross receipts from the sale or use of machinery and
equipment used in manufacturing. + }
SECTION 105. { + Drugs and medical devices. There are
exempted from the taxes imposed by the Sales and Use Tax Law the
gross receipts from the sale of or the storage, use or other
consumption in this state of drugs, durable medical equipment for
home use, mobility enhancing equipment and prosthetic
devices. + }
SECTION 106. { + Animals; feed; seed; fertilizer; farm
machinery and equipment. There are exempted from the taxes
imposed by the Sales and Use Tax Law the gross receipts from
sales of and the storage, use or other consumption of:
(1) Animals, feed, seed, plants, fertilizer and pesticides
that, or the products of which, are ordinarily used or for use in
commercial, agricultural, horticultural or silvicultural
activities.
(2) Equipment, machinery and implements for use in conducting a
farming activity. + }
SECTION 107. { + Tobacco. There are exempted from the taxes
imposed by the Sales and Use Tax Law the gross receipts from the
sale of, and the storage, use or other consumption in this state
of, tobacco. + }
SECTION 108. { + Motor vehicle and aircraft fuel. (1) There
are exempted from the taxes imposed by the Sales and Use Tax Law
the gross receipts from the sale or distribution and the storage,
use or other consumption in this state of motor vehicle fuel,
fuel or aircraft fuel, the sale, use or other consumption of
which in this state is:
(a) Subject to tax under ORS 319.010 to 319.430 or 319.510 to
319.880, and not subject to refund; or
(b) Exempt from the tax imposed under ORS 319.510 to 319.880 by
ORS 825.484 (2).
(2) The Department of Transportation shall collect the sales
tax upon sales of motor vehicle fuel, fuel and aircraft fuel that
are subject to tax and refund under ORS chapter 319. Collection
may be accomplished by way of deduction from refunds otherwise
allowable under ORS chapter 319. For the purpose of establishing
gross receipts upon which the sales tax is computed, the
Department of Transportation shall use estimated average fuel
sales prices. At the request of a refund claimant, the Department
of Transportation may adjust the sales tax so computed upon
presentation by the claimant of information showing the exact
amount paid for the fuel upon which refund is claimed. The
Department of Transportation shall transfer the amount of the
sales tax deductions from the appropriate General Fund account
from which refunds are made under ORS chapter 319. The moneys
transferred by the Department of Transportation under this
subsection shall be deposited promptly in the Department of
Transportation Driver and Motor Vehicle Suspense Account
established under ORS 802.100 (1). As much as is necessary of the
moneys so collected is appropriated continuously to the
Department of Transportation to pay the administrative expenses
and refunds of the Department of Transportation in collecting the
sales tax under this subsection. All moneys in excess of these
administrative expenses and refunds shall be transferred monthly
to the State Highway Fund. At least once each month the
Department of Transportation shall account to the Department of
Revenue for all sales tax moneys collected under this subsection.
(3) In accordance with joint rules of the Department of
Revenue, the Public Utility Commission and the Department of
Transportation:
(a) Sales tax collected on fuel exempt from the tax imposed
under ORS 319.510 to 319.880 by ORS 825.484 (2) may be offset
against taxes imposed under ORS chapter 825 in returns made under
that chapter. On the 15th day of each month, the Public Utility
Commission shall certify to the Department of Revenue and the
State Treasurer the amount so offset and the State Treasurer
shall cause that amount to be transferred from the Sales Tax Fund
established under section 148 of this 2009 Act to the Motor
Carrier Account in the General Fund.
(b) Sales tax collected on fuel subject to the tax imposed
under ORS 319.010 to 319.430 or 319.510 to 319.880, and not
subject to refund, may be offset against taxes imposed under ORS
319.010 to 319.430 or 319.510 to 319.880 in returns made under
those statutes. On the 15th day of each month, the Department of
Transportation shall certify to the Department of Revenue and the
State Treasurer the amount so offset and the State Treasurer
shall cause that amount to be transferred from the Sales Tax Fund
established under section 148 of this 2009 Act to the State
Highway Fund. + }
SECTION 109. { + Fuel oil and natural gas, electricity,
firewood, coal, nuclear fuel and other fuel products and waste
by-products. (1) There are exempted from the taxes imposed by the
Sales and Use Tax Law the gross receipts from the sales,
furnishing or service of and the storage, use or other
consumption in this state of:
(a) Fuel oil, natural gas, liquefied petroleum gas, electricity
or geothermal resources when delivered to consumers through
mains, lines, pipes or by tank truck or for purposes of
residential heating and of exhaust steam, waste steam, heat or
resultant energy, produced in connection with cogeneration
technology.
(b) Coal.
(c) Firewood.
(d) Organic products grown expressly for fuel purposes.
(e) Waste by-products from agricultural or forest products
operations, municipal refuse or manufacturing that are delivered
in bulk and are used in an industrial facility as a fuel source
in lieu of the use of either oil, natural gas or coal.
(f) Nuclear fuel. For purposes of this paragraph, 'nuclear
fuel' means special nuclear material and source material used for
fueling or refueling nuclear reactors.
(2) As used in this section, 'cogeneration' means the
sequential use of energy for the production of electrical and
useful thermal energy. The sequence can be thermal use followed
by power production or the reverse, subject to the following
standards:
(a) At least five percent of the cogeneration project's total
annual energy output shall be in the form of useful thermal
energy.
(b) Where useful thermal energy follows power production, the
useful annual power output plus one-half of the useful annual
thermal energy output equals not less than 42.5 percent of any
natural gas or oil energy input. + }
SECTION 110. { + Manufactured structures and floating homes.
There are exempted from the taxes imposed by the Sales and Use
Tax Law the gross receipts from the sale, lease or rental of, and
the storage, use or other consumption in this state of, any
manufactured structure or any floating home. + }
SECTION 111. { + United States Government and
instrumentalities. (1) There are exempted from the taxes imposed
by the Sales and Use Tax Law the gross receipts from the sale of
any tangible personal property to:
(a) The United States and its unincorporated agencies and
instrumentalities;
(b) Any incorporated agency or instrumentality of the United
States wholly owned by the United States or by a corporation
wholly owned by the United States; or
(c) The American Red Cross and its chapters and branches.
(2) The exemption provided under this section does not extend
to the rentals payable under a lease of tangible personal
property. + }
SECTION 112. { + United States contractors. A sale of
tangible personal property to a contractor purchasing such
property, either as the agent of the United States or for the
contractor's own account and subsequent resale to the United
States for use in the performance of a contract with the United
States for the construction of improvements on or to real
property in this state, is a retail sale. The gross receipts from
the sale or the sales price of the property so sold shall be
included in the measure of the taxes imposed under the Sales and
Use Tax Law. + }
SECTION 113. { + Cargo containers for use in interstate or
foreign commerce. (1) If a cargo container is purchased for use
outside of this state and is delivered by an in-state
manufacturer to the purchaser within this state, and the
purchaser moves the cargo container to any point outside this
state within 30 days after the date of delivery, there are
exempted from the taxes imposed by the Sales and Use Tax Law the
gross receipts from the sale of and the storage, use or other
consumption of the cargo container within this state provided
that the purchaser furnishes both of the following to the
manufacturer:
(a) The purchaser's affidavit attesting that the purchaser
purchased the cargo container at a specified location for use
exclusively outside of this state, or exclusively in interstate
commerce.
(b) The purchaser's affidavit that the cargo container has been
moved to a point outside this state within 30 days of the date of
the delivery of the cargo container to the purchaser.
(2) As used in this section, 'cargo container' means a
receptacle that:
(a) Is of a permanent character and accordingly strong enough
to be suitable for repeated use;
(b) Is specially designed to facilitate the carriage of goods,
by one or more modes of transport, one of which shall be by
vessel, without intermediate reloading;
(c) Is fitted with devices permitting its ready handling,
particularly its transfer from one mode of transport to another;
(d) Is designed to be easy to fill and empty; and
(e) Has a displacement of 1,000 cubic feet or more. + }
{ +
(Exemptions from Sales Tax) + }
SECTION 114. { + Sales to common carriers. (1) There are
exempted from the computation of the amount of the sales tax
imposed under section 60 of this 2009 Act the gross receipts from
sales of tangible personal property to a common carrier, shipped
by the seller via the purchasing carrier under a bill of lading,
whether the freight is paid in advance or the shipment is made
freight charges collect, to a point outside this state and the
property is actually transported to the out-of-state destination
for use by the carrier in the conduct of its business as a common
carrier.
(2) As used in this section with respect to water
transportation, 'common carrier' means any person that engages in
the business of transporting persons or property for hire or
compensation and that offers such services indiscriminately to
the public or some portion of the public and includes any vessel
engaged for compensation in transporting persons or property in
interstate or foreign commerce.
(3)(a) There are exempted from the computation of the amount of
the sales tax imposed under section 60 of this 2009 Act the gross
receipts from sales of tangible personal property, other than
aircraft fuel and petroleum products, purchased by a foreign air
carrier and transported by the foreign air carrier to a foreign
destination for use by the air carrier in the conduct of its
business as a common carrier by air of persons or property.
(b) To qualify for this exemption, the foreign air carrier
shall timely furnish to the seller a certificate in writing that
the property shall be transported and used in the manner
described in this subsection. Such certificate shall be
substantially in the form prescribed by the Department of
Revenue. Acceptance in good faith of such a certificate shall
relieve the seller from liability for the sales tax. The foreign
air carrier shall maintain records in this state, such as a copy
of a bill of lading, an air waybill or cargo manifest,
documenting its transportation of the tangible personal property
to a foreign destination.
(4) Pursuant to subsection (3) of this section, any use of the
property by the purchasing foreign air carrier, other than that
incident to delivery of the property to the foreign air carrier
and the transportation of the property by the carrier to a
foreign destination and subsequent use in the conduct of its
business as a common carrier, or a failure of the foreign air
carrier to document its transporting the property to a foreign
destination, shall subject the carrier to liability for payment
of sales tax as if it were a retailer making a retail sale of the
property at the time of such use or failure, and the cost of the
property to it shall be deemed to be the gross receipts from such
retail sale.
(5) 'Foreign air carrier,' as used in this section, means a
foreign air carrier as defined in 49 U.S.C. 40102, as amended and
in effect on December 31, 2008.
(6) Nothing in section 41 or 49 of this 2009 Act shall affect
the exemption afforded under this section to sales of tangible
personal property to a common carrier under the circumstances set
forth in this section. + }
SECTION 115. { + Sales to water, air or rail carriers. There
are exempted from the taxes imposed by section 60 of this 2009
Act the gross receipts from sales of tangible personal property,
other than tangible personal property described in sections 111
to 125 of this 2009 Act, for use by the purchaser in connection
with the business of operating as a private or common carrier by
water, air or rail in interstate or foreign commerce. However:
(1) Any actual use of such property or services in this state
shall be subject to the tax imposed by section 69 of this 2009
Act at the time of such actual use; and
(2) Charges made by one railroad to another railroad for
maintenance and repair of jointly owned and used, or singly owned
and jointly used, railroad facilities do not constitute a
sale. + }
SECTION 116. { + Occasional sales. (1) There are exempted
from the computation of the amount of the sales tax imposed under
section 60 of this 2009 Act the gross receipts from occasional
sales of tangible personal property as described under section 48
(1) of this 2009 Act. This exemption does not apply to the gross
receipts from the sale of, or the storage, use or other
consumption in this state of, a vehicle, vessel or aircraft as
defined in section 86 of this 2009 Act.
(2) This section does not preclude the exemptions granted under
section 94 of this 2009 Act. + }
SECTION 117. { + Export packers. There are exempted from the
computation of the amount of the sales tax imposed under section
60 of this 2009 Act the gross receipts from sales of tangible
personal property purchased for use outside the continental
limits of the United States and delivered to a forwarding agent,
export packer or other person engaged in the business of
preparing goods for export or arranging for their exportation,
and actually delivered to a port outside the continental limits
of the United States prior to making any use thereof. + }
SECTION 118. { + Out-of-state contractors. There are exempted
from the computation of the amount of the sales tax imposed under
section 60 of this 2009 Act the gross receipts from the sale in
this state of tangible personal property to a seller registered
under section 67 of this 2009 Act if the property is used by the
purchaser outside of this state in the performance of a contract
to improve real property and, as a result of such use, is
incorporated into and becomes a part of real property located
outside this state. This exemption applies only if the purchaser
certifies in writing to the seller, in such form as the
Department of Revenue may prescribe, that the property will be
used in a manner and for a purpose specified in this section. + }
SECTION 119. { + Rentals included in use tax or outside this
state. There are exempted from the computation of the amount of
the sales tax imposed under section 60 of this 2009 Act the
rentals payable under a lease of tangible personal property when
such rentals are required to be included in the measure of the
use tax imposed under section 69 of this 2009 Act or when such
property is situated outside this state. + }
SECTION 120. { + Interstate shipments. (1) There are exempted
from the computation of the amount of the sales tax imposed under
section 60 of this 2009 Act the gross receipts from the sale of
tangible personal property that, pursuant to the contract of
sale, is required to be shipped and is shipped to a point outside
this state by the retailer by means of:
(a) Facilities operated by the retailer; or
(b) Delivery by the retailer to a carrier, customs broker or
forwarding agent, whether hired by the purchaser or not, for
shipment to the point outside this state.
(2) For purposes of this section:
(a) 'Carrier' means a person or firm engaged in the business of
transporting for compensation tangible personal property owned by
other persons, and includes both common and contract carriers.
(b) 'Forwarding agent' means a person or firm engaged in the
business of preparing property for shipment or arranging for its
shipment. + }
{ +
(Exemptions from Use Tax) + }
SECTION 121. { + Items on which sales tax imposed. (1)
Subject to subsection (2) of this section, the storage, use or
other consumption in this state of tangible personal property,
the gross receipts from the sale of which are required to be
included in the measure of the sales tax imposed under section 60
of this 2009 Act, is exempted from the use tax imposed under
section 69 of this 2009 Act. However, this exemption does not
extend to the possession of, or the exercise of, any right or
power over tangible personal property by a lessee under a lease.
(2) No credit or refund of any amount of use tax paid may be
allowed on the ground that the storage, use or other consumption
of the property was exempted under subsection (1) of this
section, unless the person who paid the amount reimburses the
vendor for the amount of the sales tax imposed upon the vendor
with respect to the sale of the property and paid by the vendor
to this state. + }
SECTION 122. { + Occasional sales. (1) The storage, use or
other consumption in this state of tangible personal property is
exempted from the use tax imposed under section 69 of this 2009
Act if:
(a) The sales price of the particular item of tangible personal
property involved in the occasional sale does not exceed $500 and
the purchase is for personal use or consumption and not for use
or consumption in carrying on a trade, occupation, business or
profession; or
(b) The transfer is an occasional sale under section 48 of this
2009 Act.
(2) This exemption does not apply to the gross receipts from
the sale of, or the storage, use or other consumption in this
state of, a vehicle, vessel or aircraft as defined in section 86
of this 2009 Act. + }
SECTION 123. { + Property of nonresident temporarily in
state. (1) The storage, use or other consumption in this state
of tangible personal property brought into this state by a
nonresident for the nonresident's use or enjoyment while
temporarily within this state is exempted from the use tax
imposed under section 69 of this 2009 Act unless the tangible
personal property is used in conducting a nontransitory business
activity within this state.
(2) The use in this state, by a nonresident, of a motor vehicle
that is registered or licensed under the laws of the state of the
nonresident's residence, and that is not required to be
registered or titled under the laws of this state, is exempted
from the use tax. + }
SECTION 124. { + New resident's purchases while nonresident.
The storage, use or other consumption in this state of tangible
personal property by a bona fide resident of this state is
exempted from the use tax imposed under section 69 of this 2009
Act if the tangible personal property was acquired by the person
in another state while a bona fide resident thereof primarily for
use outside this state and if the use was actual and substantial.
If the tangible personal property was acquired by the person less
than three months prior to the time the person entered this
state, it is presumed that the tangible personal property was
acquired for use in this state and that its use outside this
state was not actual and substantial. + }
{ +
(Exemption Procedures) + }
SECTION 125. { + Rules; forms. + } { + (1) The Department
of Revenue shall adopt rules establishing procedures for claiming
exemption from sales or use taxes, and may prescribe forms,
exemption certificates or other documentation requirements
pertaining to exemptions.
(2) Procedures, forms, certificates and other requirements
prescribed under subsection (1) of this section shall comply with
the Streamlined Sales and Use Tax Agreement. + }
{ +
(Returns and Payments) + }
SECTION 126. { + Due date. The taxes imposed by the Sales and
Use Tax Law are due and payable to the Department of Revenue as
follows:
(1) If the taxes may reasonably be expected to be $500 or less
for the entire calendar year, the taxes are due and payable to
the department not later than the January 31 following the end of
the calendar year.
(2) If the taxes may reasonably be expected to be more than
$500, but $5,000 or less for the entire calendar year, the taxes
are due and payable to the department semiannually not later than
the last day of the calendar month next following June 30 and
December 31.
(3) Except for estimated taxes that may be required to be paid
under section 127 of this 2009 Act, if the taxes imposed by the
Sales and Use Tax Law may reasonably be expected to exceed $5,000
for the entire calendar year, the taxes are due and payable
quarterly not later than the 15th day of the calendar month next
following the calendar quarter. + }
SECTION 127. { + Remittance of funds and filing returns. (1)
The Department of Revenue shall prescribe methods for the
remittance of sales and use taxes, including but not limited to
the remittance of estimated taxes. The department shall design
sales or use tax return forms and prescribe procedures for the
filing of sales or use tax returns.
(2) Methods of remittance and return forms and procedures shall
be in compliance with the Streamlined Sales and Use Tax
Agreement. + }
SECTION 128. { + Delinquencies; penalties. (1) If a person
fails to file a return required under the Sales and Use Tax Law
at the time prescribed for filing, or fails to pay a tax at the
time the tax becomes due, there shall be added to the amount of
tax required to be shown on the return a delinquency penalty of
five percent of the amount of the tax.
(2) If the failure to file a return continues for a period in
excess of three months after the due date:
(a) There shall be added to the amount of tax required to be
shown on the return a failure to file penalty of 20 percent of
the amount of the tax; and
(b) The Department of Revenue may send a notice to the person
demanding that the person file a return within 30 days of the
mailing of the notice. If, after the notice and demand, no return
is filed within 30 days, the department may determine the tax
according to the best of its information and belief, assess the
tax with appropriate penalty and interest, plus an additional
penalty of 25 percent of the tax deficiency determined by the
department, and give written notice of the determination and
assessment to the person required to make the filing.
(3) A penalty equal to 100 percent of any deficiency determined
by the department shall be assessed and collected if:
(a) There is a failure to file a return with intent to evade
the tax; or
(b) A return was falsely prepared and filed with intent to
evade the tax.
(4) Interest shall be collected on the unpaid tax at the rate
established under ORS 305.220, for each month or fraction of a
month, computed from the time the tax became due, during which
the tax remains unpaid.
(5) Each penalty imposed under this section is in addition to
any other penalty imposed under this section. However, the total
amount of penalty imposed under this section with respect to any
deficiency may not exceed 100 percent of the deficiency. + }
SECTION 129. { + Proceeding to compel return. (1) If a person
fails to file a report or return required under the Sales and Use
Tax Law within 60 days of the time prescribed by any tax law
administered by the Department of Revenue, the department may
petition the Oregon Tax Court for an order requiring the person
to show cause why the person is not required to file the report
or return.
(2) Within 10 days after the filing of the petition, the tax
court shall enter an order directing the person to appear and
show cause why no report or return is required to be filed. The
petition and order shall be served upon the person in the manner
provided by law. Not later than 20 days after service, the person
shall:
(a) File the requested report or return with the department;
(b) Request from the tax court an order granting reasonable
time within which to file the requested report or return with the
department; or
(c) File with the tax court an answer to the petition showing
cause why the report or return is not required to be filed.
(3) If an answer is filed, the tax court shall set the matter
for hearing within 20 days after the filing of the answer, and
shall determine the matter in an expeditious manner, consistent
with the rights of the parties.
(4) An appeal may be taken to the Supreme Court as provided in
ORS 305.445 from an order of the tax court made and entered after
a hearing and determination under subsection (3) of this section.
(5) Costs shall be awarded to the prevailing party. + }
SECTION 130. { + Penalty; discount; temporary provisions.
Notwithstanding sections 62 (5) and 128 of this 2009 Act, no
penalty for late filing of a return or late payment of tax due
shall be assessed and the right of a retailer to retain a
percentage of sales tax due may not be denied during the
six-month period beginning on the operative date of this
section. + }
SECTION 131. { + Duty to file proper returns. (1) A retailer
or other person may not:
(a) Fail to furnish any return required to be made pursuant to
the Sales and Use Tax Law;
(b) Fail to furnish a supplemental return or other data
required by the Department of Revenue; or
(c) Render a false or fraudulent return, report or claim for
refund.
(2) A person who is required to make, render, sign or verify
any return under the Sales and Use Tax Law may not make a false
or fraudulent return or fail to furnish a return with intent to
defeat or evade the determination of an amount due required by
law. + }
{ +
(Determinations) + }
SECTION 132. { + Audits; deficiencies; assessments; refunds;
appeals. The provisions of ORS chapters 305 and 314 relating to
the audits and examinations of returns, periods of limitations,
determinations of deficiencies, assessments, liens,
delinquencies, claims for refund, conferences and appeals to the
Oregon Tax Court, and the procedures relating thereto, shall
apply to the determinations of taxes, penalties and interest
under the Sales and Use Tax Law, except where the context
requires otherwise. + }
{ +
(Deficiencies) + }
SECTION 133. { + Deficiency determination. If, under the
Sales and Use Tax Law, the Department of Revenue is not satisfied
with the return of the tax or the amount of tax required to be
paid to this state by any person, it may compute and determine
the amount required to be paid upon the basis of the facts
contained in the return or upon the basis of any information
within its possession or that may come into its possession. One
or more deficiency determinations may be made of the amount due
for one or more periods. Notices of deficiency shall be given
within the time for giving notices of deficiencies under the
various circumstances described under ORS 314.410. Notices of
deficiency shall be given and interest on deficiencies shall be
computed as provided in ORS 305.265. Subject to ORS 314.421 and
314.423, liens for taxes or deficiencies shall arise at the time
of assessment, shall continue until the taxes, interest and
penalties are fully satisfied and may be recorded and collected
in the manner provided for the collection of delinquent income
taxes. + }
{ +
(Collection of Tax) + }
SECTION 134. { + Tax as debt. All taxes, interest and
penalties due and unpaid under the Sales and Use Tax Law shall
become, from the time liability is incurred, a personal debt, due
the State of Oregon, from the person or persons liable for the
taxes, interest and penalties. + }
SECTION 135. { + Jeopardy determination. If the Department of
Revenue believes that any determination or collection of any
sales or use tax or any amount of sales or use tax required to be
collected and paid to the state will be jeopardized by delay, it
shall make a determination of the tax or amount of tax required
to be collected, noting that fact upon the determination. The
amount determined is immediately due and payable, and the
department shall assess the tax, notify the person and proceed to
collect the tax in the same manner and using the same procedures
as for the collection of income taxes under ORS 314.440. + }
SECTION 136. { + Warrant for collection. (1) If any tax
imposed under the Sales and Use Tax Law or any portion of the tax
is not paid within the time provided by law and no provision is
made to secure the payment of the tax by bond, deposit or
otherwise, pursuant to rules adopted by the Department of
Revenue, the department may issue a warrant under its official
seal directed to the sheriff of any county of this state
commanding the sheriff to levy upon and sell the real and
personal property of the taxpayer found within the county, for
the payment of the amount of the tax, with the added penalties,
interest and the sheriff's cost of executing the warrant, and to
return the warrant to the department and pay to it the money
collected from the sale, within 60 days after the date of receipt
of the warrant.
(2) The sheriff shall, within five days after the receipt of
the warrant, record with the clerk of the county a copy of the
warrant, and the clerk shall immediately enter in the County
Clerk Lien Record the name of the taxpayer mentioned in the
warrant, the amount of the tax or portion of the tax and
penalties for which the warrant is issued and the date the copy
is recorded. The amount of the warrant so recorded shall become a
lien upon the title to and interest in real property of the
taxpayer against whom it is issued in the same manner as a
judgment duly docketed. The sheriff immediately shall proceed
upon the warrant in all respects, with like effect and in the
same manner prescribed by law in respect to executions issued
against property upon judgment of a court of record, and shall be
entitled to the same fees for services in executing the warrant,
to be added to and collected as a part of the warrant liability.
(3) In the discretion of the department, a warrant of like
terms, force and effect may be issued and directed to any agent
authorized to collect the taxes imposed by the Sales and Use Tax
Law. In the execution of the warrant, the agent shall have all
the powers conferred by law upon sheriffs, but is entitled to no
fee or compensation in excess of actual expenses paid in the
performance of such duty.
(4) If a warrant is returned not satisfied in full, the
department shall have the same remedies to enforce the claim for
taxes against the taxpayer as if the people of this state had
recovered judgment against the taxpayer for the amount of the
tax. + }
SECTION 137. { + Indian reservations; refund agreements. (1)
The Director of the Department of Revenue is authorized to enter
into a sales and use tax refund agreement with the governing body
of any Indian reservation in Oregon. The agreement may provide
for a mutually agreed upon amount as a refund to the governing
body of any sales or use tax collected under the Sales and Use
Tax Law in connection with the sale, use, storage or consumption
of tangible personal property on the Indian reservation. This
provision is in addition to other laws allowing tax refunds.
(2) There is annually appropriated to the director, from the
suspense account established under section 147 of this 2009 Act,
the amounts necessary to make the refunds provided by subsection
(1) of this section. + }
SECTION 138. { + Security. (1) If the Department of Revenue
considers such action necessary to ensure compliance with the
Sales and Use Tax Law, it may require any person subject to the
Sales and Use Tax Law to place with the department such security
as the department may determine.
(2) The amount of the security shall be fixed by the department
but may not be greater than twice the estimated tax liability of
a person for the reporting period under the Sales and Use Tax
Law, determined in such manner as the department considers
proper.
(3) The limitations provided in this section apply regardless
of the type of security placed with the department. The required
amount of the security may be increased or decreased by the
department subject to the limitations provided in this
section. + }
{ +
(Administration) + }
SECTION 139. { + Department to administer and enforce Sales
and Use Tax Law; rules. The Department of Revenue shall
administer and enforce the Sales and Use Tax Law. The department
shall adopt and enforce rules relating to the administration and
enforcement of the Sales and Use Tax Law. Notwithstanding any
provision of law to the contrary, the Sales and Use Tax Law shall
be administered in a way that is consistent with the Streamlined
Sales and Use Tax Agreement. + }
SECTION 140. { + Records required. Every seller, every
retailer, every person described under section 67 of this 2009
Act and every person storing, using or otherwise consuming in
this state tangible personal property purchased from a retailer
shall keep records, receipts, invoices and other pertinent papers
in a form that the Department of Revenue may require, consistent
with the Streamlined Sales and Use Tax Agreement. + }
SECTION 141. { + Examination of records. (1) The Department
of Revenue or any person authorized in writing by the department
may examine, during reasonable business hours, the books, papers,
records and equipment of any person selling tangible personal
property and any person liable for the use tax and may
investigate the character of the business of the person in order
to verify the accuracy of any return made, or, if no return is
made by the person, to ascertain and determine the amount
required to be paid. The department may require the attendance
of any such person and any other person having knowledge of the
premises, and may take testimony and require proof material for
the information, with power to administer oaths to such persons.
The department may, by order or subpoena, to be served with the
same force and effect and in the same manner that a subpoena is
served in a civil action in the circuit court, require the
production, at any time and place it may designate, of any books,
papers, accounts or other information necessary to carry out the
Sales and Use Tax Law.
(2) If any person fails to comply with any subpoena or order of
the department or to produce or permit the examination or
inspection of any books, papers, records or equipment pertinent
to any investigation or inquiry under this section, or to testify
to any matter regarding which the person may be lawfully
interrogated, the department may apply to the Oregon Tax Court,
or to the circuit court for the county in which the person
resides, for an order to the person to attend and testify or
otherwise comply with the demand or request of the department.
The application to the court shall be by ex parte motion, upon
which the court shall make an order requiring the person against
whom it is directed to comply with the request or demand of the
department within 10 days after service of the order (or such
further time as the court may grant) or to justify the failure
within that time. The order shall be served upon the person to
whom it is directed in the manner required by this state for
service of process, the service of which shall be required to
confer jurisdiction upon the court. Failure to obey any order
issued by the court under this section is contempt of court. The
remedy provided by this section is in addition to other remedies,
civil or criminal, existing under the tax laws or other laws of
this state. + }
SECTION 142. { + Reports required. (1) In the administration
of the use tax, the Department of Revenue may require the filing
of reports by any person or class of persons having in their
possession or custody information relating to sales of tangible
personal property, the storage, use or other consumption of which
may be subject to the tax imposed under section 69 of this 2009
Act.
(2) The reports shall be filed when the department requires and
must set forth:
(a) The names and addresses of purchasers of the tangible
personal property;
(b) The sales price of the property;
(c) The date of sale; and
(d) Such other information as the department requires.
(3) The department may require reports under this section only
if the reports are permitted to be required under the Streamlined
Sales and Use Tax Agreement. + }
SECTION 143. { + Divulging particulars of returns prohibited.
Except as otherwise specifically provided by law, it is unlawful
for the Department of Revenue or any officer or employee of the
department or other person having administrative duty under the
Sales and Use Tax Law to divulge or make known in any manner the
amount of gross receipts or purchase price or any particulars set
forth or disclosed in any report, return, claim or other document
required in the administration of the Sales and Use Tax Law. It
is unlawful for any person or entity to whom information is
disclosed or given by the department pursuant to section 144 (2)
of this 2009 Act or any other provision of state law to divulge
or use such information for any purpose other than that specified
in the provisions of law authorizing the use or disclosure. A
subpoena or judicial order may not be issued compelling the
Department of Revenue, the Department of Transportation, the
State Marine Board, the Oregon Department of Aviation or any of
their officers or employees, or any person who has acquired
information pursuant to section 144 (2) of this 2009 Act or any
other provision of state law to divulge or make known the amount
of gross receipts or purchase price or any particulars set forth
or disclosed in any report, return, claim or other document
required in the administration of the Sales and Use Tax Law
except where the taxpayer's liability for sales or use tax is to
be adjudicated by the court from which such process issues. As
used in this section, ' officer,' 'employee' or 'person' includes
an authorized representative of the officer, employee or person,
or any former officer, employee or person, or an authorized
representative of the former officer, employee or person. + }
SECTION 144. { + Persons to whom information may be
furnished. (1) The Department of Revenue, the Department of
Transportation, the State Marine Board and the Oregon Department
of Aviation may:
(a) Furnish any taxpayer or authorized representative of the
taxpayer, upon request of the taxpayer or representative, with a
copy of the taxpayer's sales or use tax return filed for any
reporting period, with a copy of any report filed by the taxpayer
in connection with the return or with a copy of a sales tax
refund claim filed under ORS 305.270.
(b) Publish lists of taxpayers who are entitled to unclaimed
tax refunds.
(c) Publish statistics so classified as to prevent the
identification of gross receipts or purchase price or any
particulars contained in any report or return.
(d) Publish lists of retailers or sellers to whom permits have
been issued or whose permits have been suspended or revoked under
the Sales and Use Tax Law.
(2) The Department of Revenue, the Department of
Transportation, the State Marine Board and the Oregon Department
of Aviation also may disclose and give access to information
described in section 143 of this 2009 Act to:
(a) The Governor or the authorized representative of the
Governor:
(A) With respect to an individual who is designated as being
under consideration for appointment or reappointment to an office
or for employment in the office of the Governor. The information
disclosed shall be used only for the purpose of making the
appointment, reappointment or decision to employ or not to employ
the individual in the office of the Governor and shall be
confined to whether the individual:
(i) Has filed returns with respect to the taxes imposed by the
Sales and Use Tax Law for those of the not more than three
immediately preceding years for which the individual was required
to file an Oregon sales or use tax return.
(ii) Has failed to pay any tax within 30 days from the date of
mailing of a deficiency notice or otherwise respond to a
deficiency notice within 30 days of its mailing.
(iii) Has been assessed any penalty under the Sales and Use Tax
Law and the nature of the penalty.
(iv) Has been or is under investigation for possible criminal
offenses under the Sales and Use Tax Law.
(B) For use by an officer or employee of the Oregon Department
of Administrative Services duly authorized or employed to prepare
revenue estimates, or a person contracting with the Oregon
Department of Administrative Services to prepare revenue
estimates, in the preparation of revenue estimates required for
the Governor's budget under ORS 291.201 to 291.226, or required
for submission to the Emergency Board or, if the Legislative
Assembly is in session, to the Joint Committee on Ways and Means
and to the Legislative Revenue Officer under ORS 291.342. Any
officer, employee or person furnished or granted access to
information under this subparagraph may not remove the
information from the premises of the Department of Revenue, the
Department of Transportation, the State Marine Board or the
Oregon Department of Aviation.
(b) The United States Commissioner of Internal Revenue or
authorized representative, for tax purposes only.
(c) The proper officer of any state or the District of
Columbia, or their authorized representatives, for tax purposes
only, if the state or district has a provision of law that meets
the requirements of this section and section 143 of this 2009 Act
as to confidentiality.
(d) The Multistate Tax Commission or its authorized
representatives, for tax purposes only. However, the Multistate
Tax Commission may make the information available to the United
States Commissioner of Internal Revenue or the proper officer of
any state or the District of Columbia, or their authorized
representatives, for tax purposes only, if the state or district
has a provision of law that meets the requirements of this
section and section 143 of this 2009 Act as to confidentiality.
(e) The Attorney General, assistants and employees in the
Department of Justice or other legal representative of the State
of Oregon, to the extent the Department of Revenue, the
Department of Transportation, the State Marine Board or the
Oregon Department of Aviation deems disclosure or access
necessary for the performance of the duties of advising or
representing the Department of Revenue, the Department of
Transportation, the State Marine Board or the Oregon Department
of Aviation pursuant to ORS 180.010 to 180.240 and the tax laws
of this state.
(f) Employees of the State of Oregon, to the extent the
Department of Revenue, the Department of Transportation, the
State Marine Board or the Oregon Department of Aviation deems
disclosure or access necessary for the employees to perform their
duties under contracts or agreements between the Department of
Revenue, the Department of Transportation, the State Marine Board
or the Oregon Department of Aviation and any other department,
division, agency or subdivision of the State of Oregon, in the
administration of the tax laws.
(g) Other persons, partnerships, corporations and other legal
entities, and their employees, to the extent the Department of
Revenue, the Department of Transportation, the State Marine Board
or the Oregon Department of Aviation deems disclosure or access
necessary for the performance of the others' duties under
contracts or agreements between the Department of Revenue, the
Department of Transportation, the State Marine Board or the
Oregon Department of Aviation and such legal entities, in the
administration of the tax laws.
(h) The Legislative Revenue Officer or authorized
representatives upon compliance with ORS 173.850. The officer or
representative may not remove from the premises of the Department
of Revenue, the Department of Transportation, the State Marine
Board or the Oregon Department of Aviation any materials that
would reveal the identity of any taxpayer or any other person.
(i) The Secretary of State as Auditor of Public Accounts under
section 2, Article VI of the Oregon Constitution.
(3) Each officer or employee of the Department of Revenue, the
Department of Transportation, the State Marine Board or the
Oregon Department of Aviation and each person described or
referred to in subsection (2)(a) or (e) to (i) of this section to
whom disclosure or access to the tax information is given under
subsection (2) of this section or any other provision of state
law, prior to beginning employment or the performance of duties
involving the disclosure or access, shall be advised in writing
of the provisions of sections 143 and 149 of this 2009 Act,
relating to penalties for the violation of section 143 of this
2009 Act, and shall as a condition of employment or performance
of duties execute a certificate, in a form prescribed by the
Department of Revenue, stating in substance that the person has
read these provisions of law, that the person has had them
explained and that the person is aware of the penalties for the
violation of section 143 of this 2009 Act. + }
SECTION 145. { + Publication of statistics. The Department of
Revenue shall prepare and publish statistics, reasonably
available, with respect to the operation of the Sales and Use Tax
Law, including amounts collected, classification of taxpayers and
other facts considered by the department to be pertinent and
valuable. + }
{ +
(Disposition of Proceeds) + }
SECTION 146. { + Payments to Department of Revenue. All fees,
taxes, interest and penalties imposed and all amounts of tax
required to be paid to this state under the Sales and Use Tax
Law, except those collected by the Department of Transportation,
shall be paid to the Department of Revenue, and upon receipt by
the Department of Revenue shall be turned over to the State
Treasurer, to be disposed of as provided in sections 147 and 148
of this 2009 Act. + }
SECTION 147. { + Suspense account. All moneys received by the
Department of Revenue under the Sales and Use Tax Law shall be
deposited in the State Treasury and credited to a suspense
account established under ORS 293.445. Refunds, including refunds
of erroneous overpayments or refunds of other moneys received
under the Sales and Use Tax Law in which the department has no
legal interest, shall be paid out of the suspense account. After
payments of refunds, the balance shall be deposited in the Sales
Tax Fund established under section 148 of this 2009 Act. + }
SECTION 148. { + Sales Tax Fund. (1) The Sales Tax Fund is
established in the State Treasury, separate and distinct from the
General Fund. Interest earned by the Sales Tax Fund shall be
credited to the fund.
(2) Moneys in the Sales Tax Fund are dedicated to funding:
(a) Kindergarten through grade 12 public education in this
state; and
(b) The Oregon Health Plan and other health care needs in this
state. Moneys may be appropriated under the dedication made in
this paragraph only for purposes for which federal financial
participation is available.
(3) Notwithstanding subsection (2) of this section, moneys
described in section 3a, Article IX of the Oregon Constitution,
shall be transferred to the State Highway Fund. + }
{ +
(Penalties) + }
SECTION 149. { + Penalties; failure to file proper returns.
(1) If a person or an officer or employee of a corporation or a
member or employee of a partnership violates section 131 (1)(a)
or (b) of this 2009 Act, the Department of Revenue shall assess
against the person a civil penalty of not more than $1,000. The
penalty shall be recovered as provided in subsection (5) of this
section.
(2) A person or an officer or employee of a corporation or a
member or employee of a partnership who violates section 131
(1)(c) or (2) of this 2009 Act is liable to a penalty of not more
than $1,000, to be recovered in the manner provided in subsection
(5) of this section, and is also guilty of a Class C felony.
(3) Violation of section 143 of this 2009 Act is a Class C
felony. If the offender is an officer or employee of this state,
the offender shall be dismissed from office and shall be
incapable of holding any public office in this state for a period
of five years thereafter.
(4) If any person violates any provision of the Sales and Use
Tax Law other than sections 131 and 143 of this 2009 Act, the
department shall assess against the person a civil penalty of not
more than $1,000, to be recovered as provided in subsection (5)
of this section.
(5) Any person against whom a penalty is assessed under this
section may appeal to the Oregon Tax Court as provided in ORS
305.275. If the penalty is not paid within 10 days after the
order of the department becomes final, the department may record
the order and collect the amount assessed in the same manner as
income tax deficiencies are recorded and collected under ORS
314.430. + }
SECTION 150. { + Penalties additional to all other penalties.
The penalties provided in section 149 of this 2009 Act are in
addition to all other penalties provided under the Sales and Use
Tax Law. + }
{ +
MISCELLANEOUS PROVISIONS + }
SECTION 151. { + Sales and use tax in addition to other
taxes; local sales tax prohibited. (1) Unless otherwise
specifically provided by law, the taxes imposed under the Sales
and Use Tax Law are in addition to and not in lieu of any other
taxes or excises imposed by the State of Oregon or any county,
city, district or other municipal corporation or political
subdivision of this state.
(2) No general retail sales and use tax upon the sale of or the
storage, use or consumption of tangible personal property shall
be imposed by any county, city, district or other municipal
corporation or political subdivision of this state. + }
{ +
(Conforming Changes) + }
SECTION 152. ORS 305.130 is amended to read:
305.130. (1) The Department of Revenue may be made a party in
any action in any court of this state or of the United States
having jurisdiction of the subject matter to quiet title to, to
remove a cloud from the title to, or for the foreclosure of a
mortgage or other lien upon, any real property or personal
property, or both, upon which the State of Oregon has or claims
to have a lien under ORS 311.673, 311.679, 311.771, 314.430 or
321.570 or ORS chapter 323 { + or the Sales and Use Tax Law + },
and the judgment in such action shall be conclusive and binding
upon the State of Oregon and such department.
(2) The complaint in such action shall set forth with
particularity the nature of any such lien had or claimed by the
State of Oregon. The summons in such action, together with a copy
of the complaint therein, shall be served on such department in
the manner prescribed by ORCP 7 D(3)(d), and such summons shall
require such department to appear and answer the complaint within
60 days from the date of such service.
SECTION 153. ORS 305.140 is amended to read:
305.140. (1) Any person having an interest in or lien upon any
real property may request the Department of Revenue in writing to
release such real property from a cloud on the title of or lien
on such property existing, created or continued under any one or
more of the following:
(a) A warrant provided for in ORS 314.430, 321.570 or 323.610
{ + or section 136 of this 2009 Act + }; or
(b) The provisions of ORS 311.673, 311.679, 311.689, 311.711 or
311.771.
(2) If, upon a request under subsection (1) of this section,
the department finds that a sale of such real property would not
result in satisfaction in whole or in part of the taxes due, it
shall execute a release of such cloud or lien upon such property,
and such release shall be conclusive evidence of the removal and
extinguishment of such cloud or lien in respect of such real
property.
(3) In addition to the release of cloud or lien provided for in
subsection (1) of this section, the department may execute
releases on part or all of any real property in the following
cases, which releases shall be conclusive evidence of the removal
and extinguishment of such cloud or lien:
(a) If the department finds that liability for the amount
assessed, together with all interest thereon and penalties and
costs in respect thereof, has been satisfied;
(b) If the department finds that the fair market value of that
part of the property remaining subject to the cloud or lien is at
least double the amount of the liability remaining unsatisfied in
respect of such tax and the amount of all prior liens upon the
property;
(c) If there is supplied to the department either an
irrevocable letter of credit issued by an insured institution as
defined in ORS 706.008 or a bond, in such form and with such
surety as the department considers sufficient, conditioned upon
the payment of the amount of the warrant, together with all
interest in respect thereof, within 60 days after the issuance of
the release; or
(d) If there is paid to the department in partial satisfaction
of the amount of the warrant provided for in ORS 314.430, 321.570
or 323.610 { + or section 136 of this 2009 Act + } or the amount
of any lien under ORS 311.673, 311.679, 311.689, 311.711 or
311.771, an amount not less than the value, as determined by the
department, of the lien of the State of Oregon upon the part of
the property so to be released. In determining such value the
department shall give consideration to the fair market value of
the part of the property so to be released and to such liens
thereon as have priority to the lien of the State of Oregon.
SECTION 154. ORS 305.265 is amended to read:
305.265. (1) Except as provided in ORS 305.305, the provisions
of this section apply to all reports or returns of tax or tax
liability including claims under ORS 310.630 to 310.706 { + and
the Sales and Use Tax Law, + } filed with the Department of
Revenue under the revenue and tax laws administered by it, except
those filed under ORS 320.005 to 320.150.
(2) As soon as practicable after a report or return is filed,
the department shall examine or audit it, if required by law or
the department deems such examination or audit practicable. If
the department discovers from an examination or an audit of a
report or return or otherwise that a deficiency exists, it shall
compute the tax and give notice to the person filing the return
of the deficiency and of the department's intention to assess the
deficiency, plus interest and any appropriate penalty. Except as
provided in subsection (3) of this section, the notice shall:
(a) State the reason for each adjustment;
(b) Give a reference to the statute, regulation or department
ruling upon which the adjustment is based; and
(c) Be certified by the department that the adjustments are
made in good faith and not for the purpose of extending the
period of assessment.
(3) When the notice of deficiency described in subsection (2)
of this section results from the correction of a mathematical or
clerical error and states what would have been the correct tax
but for the mathematical or clerical error, such notice need
state only the reason for each adjustment to the report or
return.
(4) With respect to any tax return filed under ORS chapter 314,
316, 317 or 318, deficiencies shall include but not be limited to
the assertion of additional tax arising from:
(a) The failure to report properly items or amounts of income
subject to or which are the measure of the tax;
(b) The deduction of items or amounts not permitted by law;
(c) Mathematical errors in the return or the amount of tax
shown due in the records of the department; or
(d) Improper credits or offsets against the tax claimed in the
return.
(5)(a) The notice of deficiency shall be accompanied by a
statement explaining the person's right to make written
objections, the person's right to request a conference and the
procedure for requesting a conference. The statement, and an
accompanying form, shall also explain that conference
determinations are routinely transmitted via regular mail and
that a person desiring to have conference determinations
transmitted by certified mail may do so by indicating on the form
the person's preference for certified mail and by returning the
form with the person's written objections as described in
paragraph (b) of this subsection.
(b) Within 30 days from the date of the notice of deficiency,
the person given notice shall pay the deficiency with interest
computed to the date of payment and any penalty proposed. Or
within that time the person shall advise the department in
writing of objections to the deficiency, and may request a
conference with the department, which shall be held prior to the
expiration of the one-year period set forth in subsection (7) of
this section.
(6) If a request for a conference is made, the department shall
notify the person of a time and place for conference and appoint
a conference officer to meet with the person for an informal
discussion of the matter. After the conference, the conference
officer shall send the determination of the issues to the person.
The determination letter shall be sent by regular mail, or by
certified mail if the person given notice has indicated a
preference for transmission of the determination by certified
mail. The department shall assess any deficiency in the manner
set forth in subsection (7) of this section. If no conference is
requested and written objections are received, the department
shall make a determination of the issues considering such
objections, and shall assess any deficiency in the manner
provided in subsection (7) of this section. The failure to
request or have a conference shall not affect the rights of
appeal otherwise provided by law.
(7) If neither payment nor written objection to the deficiency
is received by the department within 30 days after the notice of
deficiency has been mailed, the department shall assess the
deficiency, plus interest and penalties, if any, and shall send
the person a notice of assessment, stating the amount so
assessed, and interest and penalties. The notice of assessment
shall be mailed within one year from the date of the notice of
deficiency unless an extension of time is agreed upon as
described in subsection (8) of this section. The notice shall
advise the person of the rights of appeal.
(8) If, prior to the expiration of any period of time
prescribed in subsection (7) of this section for giving of notice
of assessment, the department and the person consent in writing
to the deficiency being assessed after the expiration of such
prescribed period, such deficiency may be assessed at any time
prior to the expiration of the period agreed upon. The period so
agreed upon may be extended by subsequent agreements in writing
made before the expiration of the period agreed upon.
(9) The failure to hold a requested conference within the
one-year period prescribed in subsection (5) of this section
shall not invalidate any assessment of deficiency made within the
one-year period pursuant to subsection (7) of this section or
within any extension of time made pursuant to subsection (8) of
this section, but shall invalidate any assessment of interest or
penalties attributable to the deficiency. After an assessment has
been made, the department and the person assessed may still hold
a conference within 90 days from the date of assessment. If a
conference is held, the 90-day period under ORS 305.280 (2) shall
run from the date of the conference officer's written
determination of the issues.
(10)(a) In the case of a failure to file a report or return on
the date prescribed therefor (determined with regard to any
extension for filing), the department shall determine the tax
according to the best of its information and belief, assess the
tax plus appropriate penalty and interest, and give written
notice of the failure to file the report or return and of the
determination and assessment to the person required to make the
filing. The amount of tax shall be reduced by the amount of any
part of the tax which is paid on or before the date prescribed
for payment of the tax and by the amount of any credit against
the tax which may be lawfully claimed upon the return.
(b) Notwithstanding subsection (14) of this section and ORS
305.280, and only to the extent allowed by rules adopted by the
department, the department may accept the filing of a report or
return submitted by a person who has been assessed a tax under
paragraph (a) of this subsection.
(c) The department may reject a report or return:
(A) That is not verified as required by ORS 305.810;
(B) That the department determines is not true and correct as
to every material matter as required by ORS 305.815; or
(C) If the department may impose a penalty under ORS 316.992
(1) with respect to the report or return.
(d) If the department rejects a report or return of a person
assessed a tax under paragraph (a) of this subsection, the
department shall issue a notice of rejection to the person. The
person may appeal the rejection to the magistrate division of the
Oregon Tax Court only if:
(A) The report or return was filed within 90 days of the date
the department's assessment under paragraph (a) of this
subsection was issued; and
(B) The appeal is filed within 90 days of the date shown on the
notice of rejection.
(e) If the person assessed under paragraph (a) of this
subsection submits a report or return to the department and
appeals the assessment to the tax court, the department may
request a stay of action from the court pending review of the
report or return. If the department:
(A) Accepts the filing of the report or return, the appeal
shall be dismissed as moot.
(B) Rejects the report or return, the stay of action on the
appeal shall be lifted.
(f) If the department accepts the filing of a report or return,
the department may reduce the assessment issued under paragraph
(a) of this subsection. A report or return filed under this
subsection that is accepted by the department, whether or not the
assessment has been reduced, shall be considered a report or
return described in subsection (1) of this section and shall be
subject to the provisions of this section, including but not
limited to examination and adjustment pursuant to subsection (2)
of this section.
(g) The department may refund payments made with respect to a
report or return filed and accepted pursuant to this subsection.
If the report or return is filed within three years of the due
date for filing the report or return, excluding extensions, the
refund shall be made as provided by ORS 305.270 and 314.415. If
the report or return is not filed within three years of the due
date for filing the report or return, excluding extensions, the
refund shall be limited to payments received within the two-year
period ending on the date the report or return is received by the
department and payments received after the date the report or
return is received by the department. Interest shall be paid at
the rate established under ORS 305.220 for each month or fraction
of a month from the date the report or return is received by the
department to the time the refund is made.
(11) Mailing of notice to the person at the person's last-known
address shall constitute the giving of notice as prescribed in
this section.
(12) If a return is filed with the department accompanied by
payment of less than the amount of tax shown on or from the
information on the return as due, the difference between the tax
and the amount submitted is considered as assessed on the due
date of the report or return (determined with regard to any
extension of time granted for the filing of the return) or the
date the report or return is filed, whichever is later. For
purposes of this subsection, the amount of tax shown on or from
the information on the return as due shall be reduced by the
amount of any part of the tax that is paid on or before the due
date prescribed for payment of the tax, and by any credits
against the tax that are claimed on the return. If the amount
required to be shown as tax on a return is less than the amount
shown as tax on the return, this subsection shall be applied by
substituting the lesser amount.
(13) Every deficiency shall bear interest at the rate
established under ORS 305.220 for each month or fraction of a
month computed from the due date of the return to date of
payment. If the return was falsely prepared and filed with
intent to evade the tax, a penalty equal to 100 percent of the
deficiency shall be assessed and collected. All payments received
shall be credited first to penalty, then to interest accrued, and
then to tax due.
(14) If the deficiency is paid in full before a notice of
assessment is issued, the department is not required to send a
notice of assessment, and the tax shall be considered as assessed
as of the date which is 30 days from the date of the notice of
deficiency or the date the deficiency is paid, whichever is the
later. A partial payment of the deficiency shall constitute only
a credit to the account of the person assessed. Assessments and
billings of taxes shall be final after the expiration of the
appeal period specified in ORS 305.280, except to the extent that
an appeal is allowed under ORS 305.280 (3) following payment of
the tax.
(15) Appeal may be taken to the tax court from any notice of
assessment. The provisions of this chapter with respect to
appeals to the tax court apply to any deficiency, penalty or
interest assessed.
SECTION 155. ORS 305.270 is amended to read:
305.270. (1) If the amount of the tax shown as due on a report
or return originally filed with the Department of Revenue with
respect to a tax imposed under ORS chapter 118, 308, 308A, 310,
314, 316, 317, 318 or 321 { + or the Sales and Use Tax Law + },
or collected pursuant to ORS 305.620, or as corrected by the
department, is less than the amount theretofore paid, or if a
person files a claim for refund of any tax paid to the department
under such laws within the period specified in subsection (2) of
this section, any excess tax paid shall be refunded by the
department with interest as provided in this section and ORS
314.415.
(2) The claim shall be made on a form prescribed by the
department, except that an amended report or return showing a
refund due and filed within the time allowed by this subsection
for the filing of a claim for refund, shall constitute a claim
for refund. The claim shall be filed within the period specified
in ORS 314.415 (2) for taxes imposed under ORS chapters 310, 314,
316, 317 { - and - } { + or + } 318 { + or the Sales and Use
Tax Law + }, or collected pursuant to ORS 305.620 (except where
any applicable ordinance specifies another period), within the
period specified in ORS 118.100 (2) for taxes imposed under ORS
chapter 118 and within two years of the payment of any tax under
ORS chapter 308, 308A or 321.
(3) Upon receipt of a claim for refund, or original report or
return claiming a refund, the department shall either refund the
amount requested or send to the claimant a notice of any proposed
adjustment to the refund claim, stating the basis upon which the
adjustment is made. A proposed adjustment may either increase or
decrease the amount of the refund claim or result in the finding
of a deficiency. If the proposed adjustment results in a
determination by the department that some amount is refundable,
the department may send the claimant the adjusted amount with the
notice.
(4)(a) The notice of proposed adjustment shall be accompanied
by a statement explaining the claimant's right to make written
objections to the refund adjustment, the claimant's right to
request a conference and the procedure for requesting a
conference. The statement, and an accompanying form, shall also
explain that conference determinations are routinely transmitted
via regular mail and that a claimant desiring to have conference
determinations transmitted by certified mail may do so by
indicating on the form the claimant's preference for certified
mail and by returning the form with the claimant's written
objections as described in paragraph (b) of this subsection.
(b) The claimant may, within 30 days of the date of the notice
of proposed adjustment, advise the department in writing of
objections to the refund adjustment and may request a conference
with the department, which shall be held within one year of the
date of the notice. The department shall notify the claimant of a
time and place for the conference, and appoint a conference
officer to meet with the claimant for an informal discussion of
the claim. After the conference, the conference officer shall
send a determination of the matter to the claimant. The
determination letter shall be sent by regular mail, or by
certified mail if the claimant has indicated a preference for
transmission of the determination by certified mail. The
department shall issue either a notice of refund denial or
payment of any amount found to be refundable, together with any
applicable interest provided by this section. If the conference
officer determines that a deficiency exists, the department shall
issue a notice of assessment.
(5) If no conference is requested, and the adjustments have not
resulted in the finding of a deficiency, the following shall
apply:
(a) If written objections have been made by the claimant, the
department shall consider the objections, determine any issues
raised and send the claimant a notice of refund denial or payment
of any amount found to be refundable, together with any interest
provided by this section.
(b) If no written objections are made, the notice of any
proposed adjustment shall be final after the period for
requesting a conference or filing written objections has expired.
(6) If no conference is requested, and the notice of proposed
adjustment has asserted a deficiency, the department shall
consider any objections made by the person denied the refund,
make a determination of any issues raised, pay any refunds found
due, with applicable interest, or assess any deficiency and mail
a notice thereof within one year from the date of the notice of
deficiency, unless an extension of time is agreed upon as
described in subsection (7) of this section.
(7) If, prior to the expiration of any period of time
prescribed in subsection (6) of this section for giving of notice
of assessment, the department and the person consent in writing
to the deficiency being assessed after the expiration of such
prescribed period, such deficiency may be assessed at any time
prior to the expiration of the period agreed upon. The period so
agreed upon may be extended by subsequent agreements in writing
made before the expiration of the period agreed upon.
(8) If the department refunds the amount requested as provided
in subsection (3) of this section, without examination or audit
of the refund claim, the department shall give notice of this to
the claimant at the time of making the refund. Thereafter, the
department shall have one year in which to examine or audit the
refund claim, and send the notice of proposed adjustment provided
for in subsection (3) of this section, in addition to any time
permitted in ORS 314.410 or 314.415.
(9) The failure to hold a requested conference within the
one-year period prescribed in subsection (4) of this section
shall not invalidate any assessment of deficiency made within the
one-year period pursuant to subsection (8) of this section or
within any extension of time made pursuant to subsection (7) of
this section, but shall invalidate any assessment of interest or
penalties attributable to the deficiency. After an assessment has
been made, the department and the person assessed may still hold
a conference within 90 days from the date of assessment. If a
conference is held, the 90-day period under ORS 305.280 (2) shall
run from the date of the conference officer's written
determination of the issues.
(10) The claimant may appeal any notice of proposed adjustment,
refund denial or notice of assessment in the manner provided in
ORS 305.404 to 305.560. The failure to file written objections or
to request or have a conference shall not affect the rights of
appeal so provided. All notices and determinations shall set
forth rights of appeal.
SECTION 156. ORS 305.280 is amended to read:
305.280. (1) Except as otherwise provided in this section, an
appeal under ORS 305.275 (1) or (2) shall be filed within 90 days
after the act, omission, order or determination becomes actually
known to the person, but in no event later than one year after
the act or omission has occurred, or the order or determination
has been made. An appeal under ORS 308.505 to 308.665 shall be
filed within 90 days after the date the order is issued under ORS
308.584 (3). An appeal from a supervisory order or other order or
determination of the Department of Revenue shall be filed within
90 days after the date a copy of the order or determination or
notice of the order or determination has been served upon the
appealing party by mail as provided in ORS 306.805.
(2) An appeal under ORS 323.416 or 323.623 or from any notice
of assessment or refund denial issued by the Department of
Revenue with respect to a tax imposed under ORS chapter 118, 308,
308A, 310, 314, 316, 317, 318, 321 or this chapter { + or the
Sales and Use Tax Law + }, or collected pursuant to ORS 305.620,
shall be filed within 90 days after the date of the notice. An
appeal from a proposed adjustment under ORS 305.270 shall be
filed within 90 days after the date the notice of adjustment is
final.
(3) Notwithstanding subsection (2) of this section, an appeal
from a notice of assessment of taxes imposed under ORS chapter
314, 316, 317 or 318 may be filed within two years after the date
the amount of tax, as shown on the notice and including
appropriate penalties and interest, is paid.
(4) Except as provided in subsection (2) of this section or as
specifically provided in ORS chapter 321, an appeal to the tax
court under ORS chapter 321 or from an order of a county board of
property tax appeals shall be filed within 30 days after the date
of the notice of the determination made by the department or date
of mailing of the order, date of publication of notice of the
order or date of mailing of the notice of the order to the
taxpayer, whichever is applicable.
(5) If the tax court denies an appeal made pursuant to this
section on the grounds that it does not meet the requirements of
this section or ORS 305.275 or 305.560, the tax court shall issue
a written decision rejecting the petition and shall set forth in
the decision the reasons the tax court considered the appeal to
be defective.
SECTION 157. ORS 305.565 is amended to read:
305.565. (1) Except as provided in subsection (2) of this
section, proceedings for the collection of any taxes, interest or
penalties resulting from an assessment of additional taxes
imposed by ORS chapter 118, 310, 314, 316, 317, 318, 321 or this
chapter { + or the Sales and Use Tax Law + } shall be stayed by
the taking or pendency of any appeal to the tax court.
(2) Notwithstanding subsection (1) of this section, the
Department of Revenue may proceed to collect any taxes, interest
or penalties described in subsection (1) of this section if the
department determines that collection will be jeopardized if
collection is delayed or that the taxpayer has taken a frivolous
position in the appeal. For purposes of this subsection:
(a) Collection of taxes, interest or penalties will be
jeopardized if the taxpayer designs quickly to depart from the
state or to remove the taxpayer's property from the state, or to
do any other act tending to prejudice or to render wholly or
partially ineffectual proceedings to collect the tax.
(b) A taxpayer's position in an appeal is frivolous if that
position is of the kind described in ORS 316.992 (5).
(3) No proceeding for the apportionment, levy or collection of
taxes on any property shall be stayed by the taking or pendency
of any appeal to the tax court, or from an order of the county
board of property tax appeals or the Oregon Tax Court, unless the
assessor or tax collector either as a party to the suit or an
intervenor, requests a stay and it appears to the satisfaction of
the court that a substantial public interest requires the
issuance of a stay.
(4) The tax court may, as a condition of a stay, require the
posting of a bond sufficient to guarantee payment of the tax.
Payment of taxes while appeal is pending shall not operate as a
waiver of the appeal or of a right to refund of taxes found to be
excessively charged or assessed.
SECTION 158. ORS 305.850 is amended to read:
305.850. (1) Notwithstanding any provision to the contrary in
ORS 9.320 and 305.610, the Director of the Department of Revenue
may engage the services of a collection agency to collect any
taxes, interest and penalties resulting from an assessment of
taxes or additional taxes imposed by ORS chapter 118, 310, 314,
316, 317, 318, 321 or 323 or ORS 320.005 to 320.150 { + or the
Sales and Use Tax Law + } and any other tax laws administered by
the Department of Revenue. The director may engage the services
of a collection agency by entering into an agreement to pay
reasonable charges on a contingent fee or other basis.
(2) The director shall cause to be collected, in the same
manner as provided in subsection (1) of this section,
assessments, taxes and penalties due under ORS chapter 656. All
amounts collected pursuant to this subsection shall be credited
as provided in ORS 293.250.
(3) The director may assign to the collection agency, for
collection purposes only, any of the taxes, penalties, interest
and moneys due the state.
(4) The collection agency may bring such action or take such
proceedings, including but not limited to attachment and
garnishment proceedings, as may be necessary.
SECTION 159. ORS 305.895 is amended to read:
305.895. (1) Except as provided in ORS 314.440 or other
jeopardy assessment procedure, the Department of Revenue shall
take no action against a taxpayer's real or personal property
before issuing a warrant for the collection of the tax as
provided in ORS 314.430, 320.080, 321.570 and 324.190 { + and
section 136 of this 2009 Act + }.
(2) Prior to issuing a warrant for collection of any tax
collected by the department, the department shall send the
taxpayer a written notice and demand for payment. The notice
shall:
(a) Be sent by mail, addressed to the taxpayer at the
taxpayer's last-known address.
(b) Inform the taxpayer that if the tax or any portion of the
tax is not paid within 30 days after the date of the notice and
demand for payment, a warrant may be issued and recorded as
provided in ORS 314.430, 320.080, 321.570 and 324.190 { + and
section 136 of this 2009 Act + }.
(c) Describe in clear nontechnical terms the legal authority
for the warrant.
(d) Contain the name, office mailing address and office
telephone number of the person issuing the warrant and advise the
taxpayer that questions or complaints concerning the warrant,
other than liability for the underlying tax, may be directed to
that person.
(e) Include alternatives available to the taxpayer which would
prevent issuance of the warrant.
SECTION 160. ORS 731.840 is amended to read:
731.840. (1) The retaliatory tax imposed upon a foreign or
alien insurer under ORS 731.854 and 731.859, or the corporate
excise tax imposed upon a foreign or alien insurer under ORS
chapter 317, is in lieu of all other state taxes upon premiums,
taxes upon income, franchise or other taxes measured by income
that might otherwise be imposed upon the foreign or alien insurer
except the fire insurance premiums tax imposed under ORS 731.820
and the tax imposed upon wet marine and transportation insurers
under ORS 731.824 and 731.828. However, all real and personal
property, if any, of the insurer shall be listed, assessed and
taxed the same as real and personal property of like character of
noninsurers. Nothing in this subsection shall be construed to
preclude the imposition of the assessments imposed under ORS
656.612 upon a foreign or alien insurer.
(2) Subsection (1) of this section applies to a reciprocal
insurer and its attorney in its capacity as such.
(3) Subsection (1) of this section applies to foreign or alien
title insurers and to foreign or alien wet marine and
transportation insurers issuing policies and subject to taxes
referred to in ORS 731.824 and 731.828.
(4) The State of Oregon hereby preempts the field of regulating
or of imposing excise, privilege, franchise, income, license,
permit, registration, and similar taxes, licenses and fees upon
insurers and their insurance producers and other representatives
as such, and:
(a) No county, city, district, or other political subdivision
or agency in this state shall so regulate, or shall levy upon
insurers, or upon their insurance producers and representatives
as such, any such tax, license or fee; except that whenever a
county, city, district or other political subdivision levies or
imposes generally on a nondiscriminatory basis throughout the
jurisdiction of the taxing authority a payroll, excise or income
tax, as otherwise provided by law, such tax may be levied or
imposed upon domestic insurers; and
(b) No county, city, district, political subdivision or agency
in this state shall require of any insurer, insurance producer or
representative, duly authorized or licensed as such under the
Insurance Code, any additional authorization, license, or permit
of any kind for conducting therein transactions otherwise lawful
under the authority or license granted under this code.
{ + (5) Every foreign, alien or domestic insurer or health or
legal care service contractor not subject to the tax upon its
premiums as required by ORS 731.808 to 731.828 or who issues
policies the premiums from which are not subject to the gross
premiums tax and every foreign, alien or domestic insurer or
health or legal care service contractor subject to the gross
premiums tax is not subject to the taxes imposed by sections 60
and 69 of this 2009 Act with respect to its sales or purchases of
insurance. However, this subsection does not exempt an insurer or
health or legal care service contractor from the taxes imposed by
section 60 or 69 of this 2009 Act upon its retail sales or
purchases of tangible personal property. + }
SECTION 161. ORS 801.040 is amended to read:
801.040. This section describes circumstances where special
provisions are made concerning the authority of cities, counties
or other political subdivisions in relation to some portion of
the vehicle code. This section is not the only section of the
vehicle code that applies to such authority and shall not be
interpreted to affect the vehicle code except as specifically
provided in this section. The following limits are partial or
complete as described:
(1) No county, municipal or other local body with authority to
adopt and administer local police regulations under the
Constitution and laws of this state shall enact or enforce any
rule or regulation in conflict with the provisions of the vehicle
code described in this subsection except as specifically
authorized in the vehicle code. This subsection applies to the
provisions of the vehicle code relating to abandoned vehicles,
vehicle equipment, regulation of vehicle size, weight and load,
the manner of operation of vehicles and use of roads by persons,
animals and vehicles.
(2) Except as provided in ORS 822.230 and this subsection, no
city, county or other political subdivisions shall regulate or
require or issue any registration, licenses, permits or surety
bonds or charge any fee for the regulatory or surety registration
of any person required to obtain a certificate from the
Department of Transportation under ORS 822.205. This subsection
does not:
(a) Limit any authority of a city or county to license and
collect a general and nondiscriminatory license fee levied upon
all businesses or to levy a tax based upon business conducted by
any person within the city or county.
(b) Limit the authority of any city or county to impose any
requirements or conditions as part of any contract to perform
towing or recovering services for the city or county.
(c) Limit the authority of any city or county to impose
requirements and conditions that govern the towing of a vehicle
by a towing business under ORS 98.812 so long as those
requirements and conditions are consistent with the provisions of
ORS 822.230.
(3) No city, county or other political subdivision of this
state, nor any state agency, may adopt a regulation or ordinance
that imposes a special fee for the use of public lands or waters
by snowmobiles or Class I all-terrain vehicles, or for the use of
any access thereto that is owned by or under the jurisdiction of
either the United States, this state or any such city, county or
other political subdivision. The registration fees provided by
ORS 821.320 are in lieu of any personal property { - or
excise - } tax imposed on snowmobiles by this state or any
political subdivision. No city, county or other municipality,
and no state agency shall impose any other registration or
license fee on any snowmobile in this state. This subsection does
not prohibit any city, county or other political subdivision, or
any state agency from regulating the operation of snowmobiles or
Class I all-terrain vehicles on public lands, waters and other
properties under its jurisdiction and on streets or highways
within its boundaries by adopting regulations or ordinances of
its governing body if such regulations are not inconsistent with
ORS 821.150 to 821.292.
(4) The provisions of ORS 819.100, 819.120, 819.150, 819.160,
819.210 to 819.260 and 819.480 relating to removal of vehicles
that are abandoned establish minimum requirements subject to the
following:
(a) Notwithstanding paragraph (b) of this subsection, a county
or incorporated city may supersede such provisions by ordinance
or charter provision.
(b) Any road authority described under ORS 810.010 may adopt
rules or procedures that do not conflict with such provisions to
provide for additional protection for the owner or person with an
interest in a vehicle subject to such provisions or that more
quickly accomplish the procedures established under such
provisions.
(5) Any incorporated city may by ordinance require that the
driver of a vehicle involved in an accident file with a
designated city department a copy of any report required to be
filed under ORS 811.725. All such reports shall be for the
confidential use of the city department but subject to the same
requirements for release of such reports as provided for the
release of such reports by the department under ORS 802.220 and
802.240.
(6) Except as otherwise specifically provided in this section,
in accordance with the provisions of ORS 801.041, the governing
body of a county may establish by ordinance registration fees for
vehicles registered at a residence or business address within the
county.
(7) Except as otherwise specifically provided in this section,
in accordance with the provisions of ORS 801.042, the governing
body of a district may establish by ordinance registration fees
for vehicles registered at a residence or business address within
the district.
SECTION 162. ORS 802.110 is amended to read:
802.110. Any procedures the Department of Transportation
establishes for financial administration of those functions of
the department dealing with driver and motor vehicle services and
for the disposition and payment of moneys it receives from the
provision of driver and motor vehicle services shall comply with
all of the following:
(1) The department shall deposit all moneys it receives related
to driver and motor vehicle services in the Department of
Transportation Driver and Motor Vehicle Suspense Account for
approved expenses and disbursals before payment of general
administrative expenses of the department related to the
provision of driver and motor vehicle services. Notwithstanding
this subsection, the department may return a bank check or money
order when received in incorrect or incomplete form or when not
accompanied by the proper application { + , unless the check or
money order is presented in partial or complete payment of the
use tax, as defined in section 57 of this 2009 Act. Any bank
check or money order received by the department that is in any
part presented for payment of sales or use tax liability pursuant
to section 95, 97 or 108 of this 2009 Act shall be retained by
the department. A receipt shall be given for the retained check
or money order + }.
(2) The department shall pay the following approved expenses
and disbursals from the Department of Transportation Driver and
Motor Vehicle Suspense Account before payment of the general
administrative expenses of the department related to driver and
motor vehicle services:
(a) Refunds authorized by any statute administered by the
department when such refunds are approved by the department.
(b) Amounts transferred to the State Treasurer under ORS
319.410 (2) for the purpose of carrying out the state aviation
laws, amounts transferred to the Boating Safety, Law Enforcement
and Facility Account by ORS 319.415, amounts transferred to the
State Aviation Account by ORS 319.417 and amounts transferred to
the Department of Transportation Operating Fund by ORS 184.643.
(c) After deduction of expenses of collection, transfer and
administration, the department shall pay moneys collected from
the Student Driver Training Fund eligibility fee under ORS
807.040, 807.150 and 807.370 to the State Treasurer for deposit
in the Student Driver Training Fund. The moneys deposited in the
Student Driver Training Fund under this paragraph are
continuously appropriated to the department for the following
purposes:
(A) To the extent of not more than 10 percent of the amount
transferred into the Student Driver Training Fund in any
biennium, to pay the expenses of administering ORS 336.795,
336.800, 336.805, 336.810 (2) and 336.815.
(B) The remaining moneys, for reimbursing school districts as
provided under ORS 336.805.
(d) After deduction of expenses of collection, transfer and
administration, the department shall pay moneys collected for the
Motorcycle Safety Subaccount under ORS 807.170 to the State
Treasurer for deposit in the Motorcycle Safety Subaccount of the
Transportation Safety Account. Moneys paid to the State Treasurer
under this paragraph shall be used for the purpose of ORS
802.320.
(e) After deduction of expenses for the administration of the
issuance of customized registration plates under ORS 805.240, the
department shall place moneys received from the sale of
customized registration plates in the Passenger Rail
Transportation Account. The moneys placed in the account are
continuously appropriated to the department and shall be used for
the payment of expenses incurred in administering passenger rail
programs.
(f) After deduction of expenses of collection, transfer and
administration, the department shall pay moneys from any
registration fees established by the governing bodies of counties
or a district, as defined in ORS 801.237, under ORS 801.041 or
801.042 to the appropriate counties or districts. The department
shall make the payments on at least a monthly basis unless
another basis is established by the intergovernmental agreements
required by ORS 801.041 and 801.042 between the department and
the governing bodies of a county or a district.
(g) After deducting the expenses of the department in
collecting and transferring the moneys, the department shall make
disbursals and payments of moneys collected for or dedicated to
any other purpose or fund except the State Highway Fund,
including but not limited to, payments to the Department of
Transportation Operating Fund established by ORS 184.642 (1) and
(2).
{ + (h) After deducting the expenses of the department in
collecting the use tax, as defined in section 57 of this 2009
Act, the department shall transfer the use tax moneys collected
under section 97 of this 2009 Act to the State Highway Fund. + }
(3) The department shall refund from the Department of
Transportation Driver and Motor Vehicle Suspense Account any
excess or erroneous payment to a person who made the payment or
to the person's legal representative when the department
determines that money has been received by it in excess of the
amount legally due and payable or that it has received money in
which it has no legal interest. Refunds payable under this
subsection are continuously appropriated for such purposes in the
manner for payment of refunds under this section. If the
department determines that a refund is due, the department may
refund the amount of excess or erroneous payment without a claim
being filed. Except as provided in ORS 319.290, 319.375, 319.820
and 319.831, any claim for a refund from the department must be
filed within 12 months after the date payment is received by the
department.
(4) After payment of those expenses and disbursals approved for
payment before general administrative expenses related to the
provision of driver and motor vehicle services, the department
shall pay from the Department of Transportation Driver and Motor
Vehicle Services Administrative Account its general
administrative expenses incurred in the administration of any law
related to driver and motor vehicle services that the department
is charged with administering and any other expenses the
department is permitted by law to pay from moneys held by the
department before transfer of the moneys to the State Highway
Fund. The following limitations apply to payments of
administrative expenses under this subsection:
(a) The department shall make payment of the expenses of
administering the issuance of winter recreation parking permits
under ORS 811.595 from those moneys received from issuing the
permits or from moneys received under ORS 153.630 from violation
of the requirement to have the permit.
(b) The department shall pay its expenses for administering the
registration and titling of snowmobiles under ORS 821.060 and
821.100 from the fees collected from administering those
sections. The department shall also pay its expenses for the
administration of the snowmobile driver permit program under ORS
821.160 from the moneys otherwise described in this paragraph.
(c) The department shall pay its expenses for determining the
amount of money to be withheld under ORS 802.120 from the fees
collected for administering the registration and titling of
snowmobiles. The amount used to pay expenses under this paragraph
shall be such sum as necessary but shall not exceed $10,000
during each biennium.
(d) The department shall retain not more than $15,000 in any
biennium for the expenses of collecting and transferring moneys
to the Student Driver Training Fund under this section and for
the administration of ORS 336.810 (3).
(5) Except as otherwise provided in this subsection, the
department shall transfer to the State Highway Fund the moneys
not used for payment of the general administrative expenses or
for approved expenses and disbursals before payment of general
administrative expenses. The following apply to this subsection:
(a) If the Director of Transportation certifies the amount of
principal or interest of highway bonds due on any particular
date, the department may make available for the payment of such
interest or principal any sums that may be necessary to the
extent of moneys on hand available for the State Highway Fund
regardless of the dates otherwise specified under this section.
(b) Notwithstanding paragraph (a) of this subsection the
department shall not make available for purposes described in
paragraph (a) of this subsection any moneys described in ORS
367.605 when there are not sufficient amounts of such moneys in
the State Highway Fund for purposes of bonds issued under ORS
367.615.
(6) Notwithstanding any other provision of this section, the
following moneys shall be transferred to the State Highway Fund
at the times described:
(a) Moneys received under ORS 802.120 and not used for the
payment of administrative expenses of the department shall be
transferred before July 31 of each year.
(b) Moneys received from the registration of snowmobiles that
is not to be used for payment of administrative expenses of the
department shall be transferred within 30 days after the end of
the quarter.
(c) Moneys received from the issuance of winter recreation
parking permits or under ORS 153.630 from violation of the
requirement to have a winter recreation parking permit and that
is not used for payment of administrative expenses of the
department shall be transferred within 30 days after the end of
the quarter.
(7) The following moneys transferred to the State Highway Fund
under this section may be used only for the purposes described as
follows:
(a) Moneys collected from the issuance of winter recreation
parking permits or under ORS 153.630 for violation of the
requirement to have a winter recreation parking permit, and the
interest on such moneys, shall be used to enforce the requirement
for winter recreation parking permits and to remove snow from
winter recreation parking locations designated under ORS 810.170.
Any remaining moneys shall, upon approval by the Winter
Recreation Advisory Committee:
(A) Be used to maintain parking locations developed with moneys
obtained under ORS 810.170 and snowmobile facilities that are
parking lots developed with moneys as provided under this
section;
(B) Be used to develop additional winter recreation parking
locations under ORS 810.170; or
(C) Be carried over to be used in subsequent years for the
purposes and in the manner described in this paragraph.
(b) Moneys received from the registration of snowmobiles or
under ORS 802.120 shall be used for the development and
maintenance of snowmobile facilities, including the acquisition
of land therefor by any means other than the exercise of eminent
domain. Moneys received under ORS 802.120 may also be used for
the enforcement of ORS 811.590, 821.100 to 821.120, 821.140,
821.150, 821.190, 821.210 and 821.240 to 821.290.
(8) The department shall maintain the Revolving Account for
Emergency Cash Advances separate from other moneys described in
this section. From the account, the department may pay for the
taking up of dishonored remittances returned by banks or the
State Treasurer and for emergency cash advances to be
subsequently reimbursed. The account shall be used only as a
revolving fund. The department shall at all times be accountable
for the amount of the account, either in cash or unreimbursed
items and advances. The moneys in the account are continuously
appropriated for the purposes of this subsection. The amount of
the account under this subsection shall not exceed $40,000 from
moneys received by the department in the performance of its
driver and motor vehicle services functions and moneys otherwise
appropriated for purposes of this subsection. The account under
this subsection shall be kept on deposit with the State
Treasurer. The State Treasurer is authorized to honor and pay all
properly signed and indorsed checks or warrants drawn against the
account.
SECTION 163. ORS 803.585 is amended to read:
803.585. (1) Except as otherwise provided in this section or
ORS 801.041 or 801.042, the registration fees under the vehicle
code are in lieu of all other taxes and licenses, except
{ + taxes imposed under the Sales and Use Tax Law or + }
municipal license fees under regulatory ordinances, to which such
vehicles or the owners thereof may be subject. Fixed load
vehicles are not exempt from ad valorem taxation by this section.
(2) Travel trailers subject to registration and titling under
the vehicle code are not subject to ad valorem taxation, but may
be reclassified as manufactured structures and made subject to
taxation as provided in ORS 308.880.
{ +
(Short Title) + }
SECTION 164. { + Short title. Sections 36 to 151 of this 2009
Act shall be known and may be cited as the Sales and Use Tax
Law. + }
{ +
APPLICATION; OPERATIVE DATE; + }
{ +
CAPTIONS; EFFECTIVE DATE + }
SECTION 165. { + Application. (1) The sales tax imposed by
section 60 of this 2009 Act applies only to sales occurring on or
after the operative date of this section.
(2) The sales tax does not apply to sales occurring on or after
the operative date of this section under contracts, leases or
rental agreements that were made before the operative date of
this section. However, under a contract, lease or rental
agreement that was made before the operative date of this
section, the sales tax does apply to sales made after the date of
any extension or renewal of the contract, lease or rental
agreement occurring after the operative date of this section.
(3) The use tax imposed by section 69 of this 2009 Act applies
only to tangible personal property purchased on or after the
operative date of this section.
(4) The use tax does not apply to storage, consumption or use
on or after the operative date of this section under contracts,
leases or rental agreements that were made before the operative
date of this section. However, under a contract, lease or rental
agreement entered into before the operative date of this section,
the use tax does apply to storage, consumption and use made after
the date of any extension or renewal of the contract, lease or
rental agreement occurring after the operative date of this
section. A lessee, upon extension or renewal, shall have the
right to make the election under section 81 of this 2009 Act. + }
SECTION 166. { + Captions. The unit and section captions used
in this 2009 Act are provided only for the convenience of the
reader in locating provisions of this 2009 Act and do not become
part of the statutory law of this state or express any
legislative intent in the enactment of this 2009 Act. + }
SECTION 167. { + Operative date. (1) Sections 36 to 151 and
165 of this 2009 Act and the amendments to statutes by sections
152 to 163 of this 2009 Act become operative on January 1, 2010.
(2) Notwithstanding subsection (1) of this section, sections 36
to 151 and 165 of this 2009 Act and the amendments to statutes by
sections 152 to 163 of this 2009 Act do not become operative if
this state has not entered into the Streamlined Sales and Use Tax
Agreement, as defined in section 28 of this 2009 Act, by January
1, 2010. + }
SECTION 168. { + Effective Date. This 2009 Act takes effect
on the 91st day after the date on which the regular session of
the Seventy-fifth Legislative Assembly adjourns sine die. + }
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