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 1983
House Bill 3405
Sponsored by COMMITTEE ON REVENUE
SUMMARY
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.
Establishes five tiers of corporate minimum tax on corporations
that are not S corporations, based on level of Oregon sales.
Prohibits Department of Revenue from disclosing information that
is attributable to single corporation or group of fewer than 10
corporations. Establishes Multimodal Transportation and Economic
Development Fund. Appropriates moneys to Department of
Transportation. Directs corporate excise tax revenue to fund.
Authorizes issuance of lottery bonds for transportation projects
funded from fund. Specifies allocation of lottery bond proceeds.
Applies to tax years beginning on or after January 1, 2010, and
to revenue collected for tax years beginning on or after January
1, 2010.
Takes effect on 91st day following adjournment sine die.
A BILL FOR AN ACT
Relating to state finance; creating new provisions; amending ORS
317.090 and 317.850; appropriating money; 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 317.090 is amended to read:
317.090. { + (1) + } Each taxpayer named in ORS 317.056 or
317.070 shall pay annually to the state, for the privilege of
carrying on or doing business by it within this state, a minimum
tax { - of $10. - } { + as follows:
(a) If the corporation is an S corporation as defined in ORS
314.730, $10 in lieu of any amount that would otherwise be due
under paragraphs (b) to (f) of this subsection.
(b) If the corporation and all affiliates shown on the Oregon
tax return have total Oregon sales for the tax year of less than
$100,000, $100.
(c) If the corporation and all affiliates shown on the Oregon
tax return have total Oregon sales for the tax year of $100,000
or more, but less than $500,000, $500.
(d) If the corporation and all affiliates shown on the Oregon
tax return have total Oregon sales for the tax year of $500,000
or more, but less than $3,000,000, $1,000.
(e) If the corporation and all affiliates shown on the Oregon
tax return have total Oregon sales for the tax year of $3,000,000
or more, but less than $10,000,000, $3,000.
(f) If the corporation and all affiliates shown on the Oregon
tax return have total Oregon sales for the tax year of
$10,000,000 or more, $7,500.
(2) + } The minimum tax { - shall not be - } { + is not + }
apportionable (except in the case of a change of accounting
periods) { - , but shall be - } { + and is + } payable in full
for any part of the year during which a corporation is subject to
tax.
{ + (3) As used in this section, 'Oregon sales' means:
(a) If the corporation apportions business income under ORS
314.650 to 314.665 for Oregon tax purposes, the total sales of
the taxpayer in this state during the tax year, as determined for
purposes of ORS 314.665;
(b) If the corporation does not apportion business income for
Oregon tax purposes, the total sales in this state that the
taxpayer would have had, as determined for purposes of ORS
314.665, if the taxpayer were required to apportion business
income for Oregon tax purposes; or
(c) If the corporation apportions business income using a
method different from the method prescribed by ORS 314.650 to
314.665, Oregon sales as defined by the Department of Revenue by
rule. + }
SECTION 2. { + The amendments to ORS 317.090 by section 1 of
this 2009 Act apply to tax years beginning on or after January 1,
2010. + }
SECTION 3. { + Section 4 of this 2009 Act is added to and made
a part of ORS chapter 314. + }
SECTION 4. { + In addition to any other limitation on the
disclosure of taxpayer information, the Department of Revenue may
not disclose any corporate tax information that a person would be
able to attribute to a corporation or a group of corporations
that includes fewer than 10 corporations. + }
SECTION 5. { + The Oregon Transportation Commission shall
allocate at least 15 percent of the net proceeds of the lottery
bonds authorized by section 6 of this 2009 Act to each region
described in this section. For purposes of this section, the
regions are as follows:
(1) Region one consists of Clackamas, Columbia, Hood River,
Multnomah and Washington Counties.
(2) Region two consists of Benton, Clatsop, Lane, Lincoln,
Linn, Marion, Polk, Tillamook and Yamhill Counties.
(3) Region three consists of Coos, Curry, Douglas, Jackson and
Josephine Counties.
(4) Region four consists of Crook, Deschutes, Gilliam,
Jefferson, Klamath, Lake, Sherman, Wasco and Wheeler Counties.
(5) Region five consists of Baker, Grant, Harney, Malheur,
Morrow, Umatilla, Union and Wallowa Counties. + }
SECTION 6. { + (1) Pursuant to ORS 286A.560 to 286A.585, for
the biennium beginning July 1, 2009, the State Treasurer may
issue lottery bonds to finance grants and loans for
transportation projects as provided in sections 7 to 10 of this
2009 Act.
(2) The use of lottery bond proceeds pursuant to this section
is authorized based on the following findings:
(a) There is an urgent need to improve and expand publicly
owned and privately owned transportation infrastructure to
support economic development in this state.
(b) A safe, efficient and reliable transportation network
supports the long-term economic development and livability of
this state. A multimodal network of air, rail, public transit,
highway and marine transportation moves people and goods
efficiently.
(c) Local governments and private sector businesses often lack
capital and the technical capacity to undertake multimodal
transportation projects.
(d) Public financial assistance can stimulate industrial growth
and commercial enterprise and promote employment opportunities in
this state.
(e) Public investment in transportation infrastructure will
create jobs and further economic development in this state.
(3) The aggregate principal amount of lottery bonds issued
pursuant to this section may not exceed the sum of $100 million
plus an additional amount established by the State Treasurer to
pay bond-related costs. The State Treasurer may issue lottery
bonds pursuant to this section only at the request of the
Director of Transportation.
(4) The net proceeds of the lottery bonds issued pursuant to
this section shall be deposited in the Multimodal Transportation
and Economic Development Fund established by section 7 of this
2009 Act. + }
SECTION 7. { + (1) As used in sections 7 to 10 of this 2009
Act, ' transportation project' has the meaning given that term in
ORS 367.010.
(2) The Multimodal Transportation and Economic Development Fund
is established separate and distinct from the General Fund.
Earnings on moneys in the Multimodal Transportation and Economic
Development Fund shall be deposited into the fund. Moneys in the
Multimodal Transportation and Economic Development Fund are
continuously appropriated to the Department of Transportation for
the purposes described in subsection (3) of this section and in
section 10 of this 2009 Act.
(3) The department shall use moneys in the Multimodal
Transportation and Economic Development Fund to provide grants
and loans for projects as provided in sections 7 to 10 of this
2009 Act. Grants and loans may be provided only for projects
that:
(a) Are multimodal transportation projects;
(b) Promote economic development;
(c) Have statewide significance; and
(d) Include rail, ports, airports and highways.
(4) All moneys received by the department as interest on loans
made under this section and as repayment of principal of loans
made under this section shall be deposited into the Multimodal
Transportation and Economic Development Fund. + }
SECTION 8. { + (1) Except as provided in subsection (2) of
this section, the Department of Transportation may provide, from
moneys in the Multimodal Transportation and Economic Development
Fund established by section 7 of this 2009 Act:
(a) Grants for transportation projects to public bodies, as
defined in ORS 174.109, and to private entities; and
(b) Loans for transportation projects to public bodies, as
defined in ORS 174.109, and to private entities.
(2) Grants and loans may not be made from the Multimodal
Transportation and Economic Development Fund for transportation
projects that could constitutionally be funded by revenues
described in section 3a, Article IX of the Oregon Constitution.
(3) The Department of Transportation shall adopt rules:
(a) Specifying the process by which a public body or private
entity may apply for a loan under this section and prescribing
the terms and conditions of loans, including but not limited to
interest rates and repayment schedules; and
(b) Specifying the process by which a public body or private
entity may apply for a grant under this section and prescribing
the terms and conditions of grants, including but not limited to
a requirement that the public body or private entity receiving
the grant provide at least 20 percent of the moneys required for
the transportation project. + }
SECTION 9. { + (1) The Oregon Transportation Commission shall
select projects to be funded with moneys in the Multimodal
Transportation and Economic Development Fund established in
section 7 of this 2009 Act.
(2)(a) Prior to selecting aeronautic and airport transportation
projects, the commission shall solicit recommendations from the
State Aviation Board.
(b) Prior to selecting freight transportation projects, the
commission shall solicit recommendations from the Freight
Advisory Committee.
(c) Prior to selecting public transit and rail projects, the
commission shall solicit recommendations from its public transit
and rail advisory committees.
(d) Prior to selecting marine projects, the commission shall
solicit recommendations from the Economic and Community
Development Department.
(3) In selecting transportation projects, the commission shall
consider:
(a) Whether a proposed transportation project reduces
transportation costs for Oregon businesses or improves access to
jobs and sources of labor;
(b) Whether a proposed transportation project results in an
economic benefit to this state;
(c) Whether a proposed transportation project is a critical
link connecting elements of Oregon's transportation system that
will measurably improve utilization and efficiency of the system;
(d) How much of the cost of a proposed transportation project
can be borne by the applicant for the grant or loan from any
source other than the Multimodal Transportation and Economic
Development Fund; and
(e) Whether a proposed transportation project is ready for
construction. + }
SECTION 10. { + The Department of Transportation shall
administer all transportation projects that are selected under
section 9 of this 2009 Act. The department may use moneys from
the Multimodal Transportation and Economic Development Fund to
pay administrative costs incurred by the department in carrying
out the provisions of sections 7 to 10 of this 2009 Act. + }
SECTION 11. ORS 317.850 is amended to read:
317.850. The net revenue from the tax imposed by this chapter,
after deduction of refunds, shall be paid over to the State
Treasurer and { - held in the General Fund as miscellaneous
receipts available generally to meet any expense or obligation of
the State of Oregon lawfully incurred - } { + transferred to
the Multimodal Transportation and Economic Development Fund
established by section 7 of this 2009 Act + }. A working balance
of unreceipted revenue from the tax imposed by this chapter may
be retained for the payment of refunds, but such working balance
shall not at the close of any fiscal year exceed the sum of
$500,000.
SECTION 12. { + The amendments to ORS 317.850 by section 11 of
this 2009 Act apply to revenue received by the Department of
Revenue for tax years beginning on or after January 1, 2010. + }
SECTION 13. { + 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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