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 1967
B-Engrossed
Senate Bill 300
Ordered by the Senate June 26
Including Senate Amendments dated April 16 and June 26
Printed pursuant to Senate Interim Rule 213.28 by order of the
President of the Senate in conformance with presession filing
rules, indicating neither advocacy nor opposition on the part
of the President (at the request of Senate Interim Committee on
Judiciary)
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.
Permits Department of Revenue to enter and examine premises of
person or business licensed to distribute or sell cigarettes or
tobacco products or that department reasonably believes is used
to distribute or sell cigarettes or tobacco products.
{ + Requires department personnel to have reasonable cause to
believe that individual is present in premises before seeking
entry. + }
Allows department to impose on person who prevents entry or
examination maximum fine of { - $1,000 - } { + $500 + } per
day { + for first seven days and $1,000 per each additional day
thereafter + }.
Continuously appropriates moneys to department from suspense
account held by State Treasurer for purpose of administering
cigarette and tobacco product tax programs.
{ + Requires amount charged by federal government for
processing offset request to be added to taxes, interest and
penalties owed by taxpayer to state. + }
A BILL FOR AN ACT
Relating to taxation; creating new provisions; amending ORS
305.612, 323.455, 323.480, 323.625, 323.630 and 401.804; and
appropriating money.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 323.455 is amended to read:
323.455. (1) All moneys received by the Department of Revenue
from the tax imposed by ORS 323.030 (1) shall be paid over to the
State Treasurer to be held in a suspense account established
under ORS 293.445. { + The department may pay expenses for
administration of ORS 323.005 to 323.482 out of moneys received
from the tax imposed under ORS 323.030 (1). Amounts necessary to
pay administrative expenses are continuously appropriated to the
department from the suspense account. + } After the payment
of { + administrative expenses and + } refunds, 89.65 percent
shall be credited to the General Fund, 3.45 percent is
appropriated to the cities of this state, 3.45 percent is
appropriated to the counties of this state and 3.45 percent is
continuously appropriated to the Department of Transportation for
the purpose of financing and improving transportation services
for elderly individuals and individuals with disabilities as
provided in ORS 391.800 to 391.830.
(2) The moneys so appropriated to cities and counties shall be
paid on a monthly basis within 35 days after the end of the month
for which a distribution is made. Each city shall receive such
share of the money appropriated to all cities as its population,
as determined under ORS 190.510 to 190.590 last preceding such
apportionment, bears to the total population of the cities of the
state, and each county shall receive such share of the money as
its population, determined under ORS 190.510 to 190.590 last
preceding such apportionment, bears to the total population of
the state.
(3) The moneys appropriated to the Department of Transportation
under subsection (1) of this section shall be distributed and
transferred to the Elderly and Disabled Special Transportation
Fund established by ORS 391.800 at the same time as the cigarette
tax moneys are distributed to cities and counties under this
section.
(4) Of the moneys credited to the General Fund under this
section 51.92 percent shall be dedicated to funding the
maintenance and expansion of the number of persons eligible for
medical assistance under the Oregon Health Plan, or to funding
the maintenance of the benefits available under the Oregon Health
Plan, or both, and 5.77 percent shall be credited to the Tobacco
Use Reduction Account established under ORS 431.832.
SECTION 2. ORS 323.625 is amended to read:
323.625. All moneys received by the Department of Revenue under
ORS 323.500 to 323.645 shall be deposited in the State Treasury
and credited to a suspense account established under ORS
293.445. { + The department may pay expenses for administration
of ORS 323.500 to 323.645 out of moneys received from the taxes
imposed under ORS 323.505 and 323.565. Amounts necessary to pay
administrative expenses are continuously appropriated to the
department from the suspense account. + } After { + the + }
payment of { + administrative expenses and + } refunds or
credits arising from erroneous overpayments, the balance of the
money shall be credited to the General Fund. Of the amount
credited to the General Fund under this section 41.54 percent
shall be dedicated to funding the maintenance and expansion of
the number of persons eligible for medical assistance under the
Oregon Health Plan, or to funding the maintenance of the benefits
available under the Oregon Health Plan, or both, and 4.62 percent
shall be credited to the Tobacco Use Reduction Account
established under ORS 431.832.
SECTION 3. { + Section 4 of this 2009 Act is added to and made
a part of ORS chapter 323. + }
SECTION 4. { + (1) As used in this section, 'premises' means a
place of business:
(a) That is licensed under this chapter; or
(b) That the Department of Revenue has reasonable cause to
believe is used for the sale or distribution of cigarettes or
tobacco products.
(2) The Department of Revenue may enter and examine the
premises of any person or business at any time an individual is
present. If the department seeks entry under this section outside
of regular business hours, this section requires that department
personnel have reasonable cause to believe that an individual is
present in the premises. The department may enter and examine:
(a) All areas used in or by the business operated at the
premises, regardless of whether patrons are permitted to be
present in those areas; and
(b) Areas not located at the premises that reasonably appear to
be used by the person or business to store items listed in
subsection (3) of this section.
(3) The department may examine:
(a) Business records related to the sale or distribution of
cigarettes or tobacco products;
(b) Books, papers, records or equipment reasonably necessary to
comply with the provisions of this chapter; and
(c) Cigarettes or tobacco products.
(4) A person may not interfere with or hinder an entry or
examination by the department under this section.
(5) This section does not authorize the department to enter or
examine an area used for residential purposes, unless the area is
located on a lot or parcel not zoned for residential use or where
residential use is not allowed as a nonconforming use. + }
SECTION 5. ORS 323.480 is amended to read:
323.480. (1)(a) A civil penalty may be imposed by the
Department of Revenue on any person who violates any provision of
ORS 323.005 to 323.482.
(b) A civil penalty imposed under this subsection may not
exceed $1,000 per violation.
(c) A penalty imposed under this section may be appealed to the
magistrate division of the tax court. Appeal of a magistrate
decision may be made as provided in ORS 305.445 and 305.501.
{ + (2) Any person who, in violation of section 4 (4) of this
2009 Act, prevents entry or examination by the department shall
be fined a maximum of $500 per day for the first seven days and
$1,000 per each additional day thereafter until the department is
allowed access. + }
{ - (2) - } { + (3) + } Any person required to obtain a
license as a distributor under ORS 323.005 to 323.482 who
knowingly engages in business as a distributor without a license
or after a license has been suspended or revoked is guilty of a
Class C felony.
{ - (3) - } { + (4) + } Any person required to make,
render, sign or verify any report under ORS 323.005 to 323.482
who makes any false report with the intent to defraud is guilty
of a Class C felony.
{ - (4)(a) - } { + (5)(a) + } Any transporter who knowingly
violates the provisions of ORS 323.225 is guilty of a Class C
felony.
(b) This subsection does not apply to a transporter who
transports or possesses or acquires for the purpose of
transporting fewer than 60,000 cigarettes.
{ - (5) - } { + (6) + } Any person who knowingly violates
any provisions of ORS 323.005 to 323.482, except as otherwise
provided in this section, is guilty of a Class A misdemeanor.
{ - (6) - } { + (7) + } Any person who files a fraudulent
refund claim under ORS 323.320 is guilty of a Class C felony.
{ - (7) - } { + (8) + } Any person who, with intent to
defraud, makes, alters, forges or utters a false receipt or
invoice recording a sale of cigarettes in this state is guilty of
a Class C felony.
{ - (8) - } { + (9) + } In addition to any other sentence
the court may impose upon a conviction under this section, the
court may order the forfeiture of the instrumentalities used in
violating ORS 323.005 to 323.482 and the proceeds resulting from
a violation of ORS 323.005 to 323.482.
SECTION 6. ORS 323.630 is amended to read:
323.630. (1)(a) A civil penalty may be imposed by the
Department of Revenue on any person who violates any provision of
ORS 323.500 to 323.645.
(b) A civil penalty imposed under this subsection may not
exceed $1,000 per violation.
(c) A penalty imposed under this subsection may be appealed to
the magistrate division of the tax court in the time and manner
prescribed in ORS 305.404 to 305.560.
{ + (2) Any person who, in violation of section 4 (4) of this
2009 Act, prevents entry or examination by the department shall
be fined a maximum of $500 per day for the first seven days and
$1,000 per each additional day thereafter until the department is
allowed access. + }
{ - (2) - } { + (3) + } Any person required to obtain a
license as a distributor under ORS 323.500 to 323.645 who
knowingly engages in business as a distributor without a license
or after a license has been suspended or revoked is guilty of a
Class C felony.
{ - (3) - } { + (4) + } Any person required to make,
render, sign or verify any report under ORS 323.500 to 323.645
who makes any false report with the intent to defraud is guilty
of a Class C felony.
{ - (4) - } { + (5) + } Any transporter who knowingly
violates the provisions of ORS 323.570 is guilty of a Class C
felony.
{ - (5) - } { + (6) + } Any person who knowingly violates
any provision of ORS 323.500 to 323.645, except as otherwise
provided in this section, is guilty of a Class A misdemeanor.
{ - (6) - } { + (7) + } Any person who, with intent to
defraud, makes, alters, forges or utters a false receipt or
invoice recording a sale of tobacco products in this state is
guilty of a Class C felony.
{ - (7) - } { + (8) + } In addition to any other sentence
the court may impose upon a conviction under this section, the
court may order the forfeiture of the instrumentalities used in
violating ORS 323.500 to 323.645 and the proceeds resulting from
a violation of ORS 323.500 to 323.645.
SECTION 7. ORS 401.804 is amended to read:
401.804. { + (1) + } Unless the context requires otherwise,
the provisions of ORS chapters 305, 314 and 316 as to the audit
and examination of reports and returns, determination of
deficiencies, assessments, claims for refunds, penalties,
interest, jeopardy assessments, warrants, conferences and appeals
to the Oregon Tax Court, and procedures relating thereto, shall
apply to ORS 401.792 to 401.804 the same as if the tax were a tax
imposed upon or measured by net income. All such provisions apply
to the subscriber liable for the tax and to the provider required
to collect the tax. As to any amount collected and required to be
remitted to the Department of Revenue, the tax shall be
considered a tax upon the provider required to collect the tax
and that provider shall be considered a taxpayer.
{ + (2) Notwithstanding ORS 314.835 and 314.840, the
Department of Revenue may disclose information received under ORS
401.792 to 401.804 to the Public Utility Commission to carry out
the provisions of chapter 290, Oregon Laws 1987.
(3) The Public Utility Commission may disclose information
obtained pursuant to chapter 290, Oregon Laws 1987, to the
Department of Revenue to administer the tax imposed under ORS
401.792 to 401.804. + }
SECTION 8. ORS 305.612 is amended to read:
305.612. (1) The Director of the Department of Revenue may
enter into an intergovernmental agreement with the United States
Financial Management Service and the Internal Revenue Service for
the purpose of engaging in the reciprocal offset of federal tax
refunds in payment of liquidated state tax obligations and the
offset of state tax refunds in payment of liquidated federal tax
obligations.
(2) The director may pay a fee charged by the federal
government for the processing of an offset request. The fee may
be deducted from amounts remitted to the state by the federal
government pursuant to an intergovernmental agreement. { + The
amount of the fee charged by the federal government shall be
added to the taxes, interest and penalties owed by the taxpayer
to the state. + }
(3) The Department of Revenue may by rule establish a fee to be
charged to the federal government for the provision of state
offset services.
(4) All moneys received by the department in payment of charges
made pursuant to subsection (3) of this section shall be
deposited in a department miscellaneous receipts account
established under ORS 279A.290.
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