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 1364
 
                           A-Engrossed
 
                         Senate Bill 34
                 Ordered by the Senate April 28
           Including Senate Amendments dated April 28
 
Printed pursuant to Senate Interim Rule 213.28 by order of the
  President of the Senate in conformance with presession filing
  rules, indicating neither advocacy nor opposition on the part
  of the President (at the request of Senate Interim Committee on
  Transportation)
 
 
                             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.
 
    { - Ties tax on motor vehicle fuel to percentage of average
price of motor vehicle fuel in Oregon. - }
    { - Takes effect on 91st day following adjournment sine
die. - }
   { +  Authorizes mass transit districts to increase employer
payroll tax and tax on self-employment earnings.
  Requires districts to phase in any increase in taxes. + }
 
                        A BILL FOR AN ACT
Relating to taxation; creating new provisions; amending ORS
  267.385; and repealing sections 8 and 9, chapter 739, Oregon
  Laws 2003.
Be It Enacted by the People of the State of Oregon:
  SECTION 1. ORS 267.385 is amended to read:
  267.385. (1) To carry out the powers granted by ORS 267.010 to
267.390, a district may by ordinance impose an excise tax on
every employer equal to not more than   { - seven-tenths - }
 { +  eight-tenths + } of one percent of the wages paid with
respect to the employment of individuals. For the same purposes,
a district may by ordinance impose a tax on each individual equal
to not more than
  { - seven-tenths - }  { +  eight-tenths + } of one percent of
the individual's net earnings from self-employment.
  (2) No employer shall make a deduction from the wages of an
employee to pay all or any portion of a tax imposed under this
section.
  (3) The provisions of ORS 305.620 are applicable to collection,
enforcement, administration and distribution of a tax imposed
under this section.
  (4) At any time an employer or individual fails to remit the
amount of taxes when due under an ordinance of the district board
imposing a tax under this section, the Department of Revenue may
enforce collection by the issuance of a distraint warrant for the
collection of the delinquent amount and all penalties, interest
and collection charges accrued thereon. Such warrant shall be
issued and may be enforced in the same manner and have the same
force and effect as prescribed with respect to warrants for the
collection of delinquent state income taxes.
  (5) Any ordinance adopted under subsection (1) of this section
shall require an individual having net earnings from
self-employment from activity both within and without the
district taxable by the State of Oregon to allocate and apportion
such net earnings to the district in the manner required for
allocation and apportionment of income under ORS 314.280 and
314.605 to 314.675.  Such ordinance shall give the individual the
option of apportioning income based on a single factor designated
by the ordinance.
  (6) Any ordinance adopted under subsection (1) of this section
with respect to net earnings from self-employment may impose a
tax for a taxable year measured by each individual's net earnings
from self-employment for the prior taxable year, whether such
prior taxable year begins before or after November 1, 1981, or
such ordinance.
  (7) Any ordinance imposing a tax authorized by subsection (1)
of this section shall not apply to any business, trade,
occupation or profession upon which a tax is imposed under ORS
267.360.
  (8) The district board may not adopt an ordinance increasing a
tax authorized by subsection (1) of this section unless the board
makes a finding that the economy in the district has recovered to
an extent sufficient to warrant the increase in tax.  In making
the finding, the board shall consider regional employment and
income growth.
  SECTION 2.  { + Notwithstanding ORS 267.385 (1) and subject to
ORS 267.260 (3) and (6), an increase in any tax imposed on wages
or on net earnings from self-employment that is authorized by a
mass transit district under ORS 267.385 (1) on or after January
1, 2010, must be phased in over a 10-year period. The district
shall by ordinance set forth the increments by which the increase
in tax is phased in. Subject to ORS 267.260 (3) and (6), each
annual increment may not increase the rate of tax by more than
0.02 percent of the wages or net earnings from
self-employment. + }
  SECTION 3.  { + Sections 8 and 9, chapter 739, Oregon Laws
2003, are repealed. + }
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