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 1319
Senate Joint Resolution 29
Sponsored by Senators BURDICK, MORSE, Representatives BARNHART,
BRUUN; Senators BATES, BONAMICI, CARTER, COURTNEY, DEVLIN,
DINGFELDER, HASS, METSGER, MONROE, MORRISETTE, PROZANSKI,
ROSENBAUM, SCHRADER, Representatives BAILEY, BERGER, BUCKLEY,
CANNON, COWAN, DEMBROW, D EDWARDS, GALIZIO, GARRETT, GELSER,
GREENLICK, HOLVEY, HUNT, KOTEK, NOLAN, READ, RILEY, ROBLAN,
TOMEI, WITT
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 reserve fund intended to provide funding in
response to economic decline. Establishes mandated savings rate
from surplus revenues. Transfers surplus revenue above estimate
for biennium to reserve fund. Returns surplus revenue that
exceeds certain thresholds to taxpayers.
Refers proposed amendment to people for their approval or
rejection at special election held on date specified in
chapter ___, Oregon Laws 2009 (Enrolled ___ Bill ___) (LC 3364).
JOINT RESOLUTION
Be It Resolved by the Legislative Assembly of the State of
Oregon:
PARAGRAPH 1. Section 14, Article IX of the Constitution of the
State of Oregon, is amended to read:
{ + Sec. 14. + } { + (1) There is hereby created a reserve
fund intended to provide funding in response to a projected or an
actual economic decline. + }
{ - (1) - } { + (2) + } As soon as is practicable after
adjournment sine die of a regular session of the Legislative
Assembly, the Governor shall cause an estimate to be prepared of
revenues that will be received by the General Fund for the
biennium beginning July 1. The estimated revenues from corporate
income and excise taxes shall be separately stated from the
estimated revenues from other General Fund sources.
{ - (2) - } { + (3) + } As soon as is practicable after the
end of the biennium, the Governor shall cause actual collections
of revenues received by the General Fund for that biennium to be
determined. The revenues received from corporate income and
excise taxes shall be determined separately from the revenues
received from other General Fund sources.
{ + (4) As soon as is practicable after the end of the
biennium, the Legislative Assembly shall transfer to the fund
created in subsection (1) of this section an amount equal to the
General Fund ending balance for the biennium or one percent of
General Fund appropriations for the biennium, whichever is less.
(5) To establish a mandated savings rate from excess revenues
and to provide funding for the reserve fund created in subsection
(1) of this section, surplus revenue funds shall be transferred
to the reserve fund or returned to taxpayers as follows:
(a) If the revenues received by the General Fund from corporate
income and excise taxes during the biennium exceed the amount
estimated to be received from corporate income and excise taxes
for the biennium, to the extent that the excess does not exceed
36 percent of the estimate, the excess shall be transferred to
the reserve fund created in subsection (1) of this section.
(b) If the revenues received from General Fund revenue sources,
exclusive of those described in paragraph (a) of this subsection,
during the biennium exceed the amount estimated to be received
from such sources for the biennium, to the extent that the excess
does not exceed six percent of the estimate, the excess shall be
transferred to the reserve fund created in subsection (1) of this
section. + }
{ - (3) - } { + (c) + } If the revenues received by the
General Fund from corporate income and excise taxes during the
biennium exceed the amount estimated to be received from
corporate income and excise taxes for the biennium, by
{ - two - } { + 36 + } percent or more, the total amount of
the excess { + above 36 percent + } shall be returned to
corporate income and excise taxpayers.
{ - (4) - } { + (d) + } If the revenues received from
General Fund revenue sources, exclusive of those described in
{ - subsection (3) of this section - } { + paragraph (a) of
this subsection + }, during the biennium exceed the amount
estimated to be received from such sources for the biennium, by
{ - two - } { + six + } percent or more, the total amount of
the excess { + above six percent + } shall be returned to
personal income taxpayers.
{ + (6) During the 12-month period ending each June 30, the
Legislative Assembly may not appropriate more than two-thirds of
the balance, as of the preceding July 1, of the reserve fund
created in subsection (1) of this section. The Legislative
Assembly may by law appropriate, allocate or transfer the
principal of the reserve fund created under subsection (1) of
this section only if the proposed appropriation, allocation or
transfer is approved by three-fifths of the members serving in
each house of the Legislative Assembly and the Legislative
Assembly finds one of the following:
(a) That the last quarterly economic and revenue forecast for a
biennium indicates that moneys available to the state's General
Fund for the next biennium will be at least three percent less
than appropriations from the state's General Fund for the current
biennium;
(b) That there has been a decline for two or more consecutive
quarters in the last 12 months in seasonally adjusted nonfarm
payroll employment; or
(c) That a quarterly economic and revenue forecast projects
that revenues in the state's General Fund in the current biennium
will be at least two percent less than what the revenues were
projected to be in the revenue forecast on which the
legislatively adopted budget for the current biennium was based.
(7) If the balance in the reserve fund created in subsection
(1) of this section equals 10 percent or more of the
legislatively approved budget from General Fund sources for the
prior biennium, and the revenues received by the General Fund
from corporate income and excise taxes during the biennium exceed
the amount estimated to be received from corporate income and
excise taxes for the biennium by two percent or more, the total
amount of the excess shall be returned to corporate income and
excise taxpayers.
(8) If the balance in the reserve fund created in subsection
(1) of this section equals 10 percent or more of the
legislatively approved budget from General Fund sources for the
prior biennium, and the revenues received from General Fund
revenue sources, exclusive of those described in subsection
(5)(a) of this section, during the biennium exceed the amount
estimated to be received from such sources for the biennium by
two percent or more, the total amount of the excess shall be
returned to personal income taxpayers. + }
{ - (5) - } { + (9) + } The Legislative Assembly may enact
laws:
(a) Establishing a tax credit, refund payment or other
mechanism by which the excess revenues are returned to taxpayers,
and establishing administrative procedures connected therewith.
(b) Allowing the excess revenues to be reduced by
administrative costs associated with returning the excess
revenues.
(c) Permitting a taxpayer's share of the excess revenues not to
be returned to the taxpayer if the taxpayer's share is less than
a de minimis amount identified by the Legislative Assembly.
(d) Permitting a taxpayer's share of excess revenues to be
offset by any liability of the taxpayer for which the state is
authorized to undertake collection efforts.
{ - (6)(a) - } { + (10)(a) + } Prior to the close of a
biennium for which an estimate described in subsection
{ - (1) - } { + (2) + } of this section has been made, the
Legislative Assembly, by a two-thirds majority vote of all
members elected to each House, may enact legislation declaring an
emergency and increasing the amount of the estimate prepared
pursuant to subsection { - (1) - } { + (2) + } of this
section.
(b) The prohibition against declaring an emergency in an act
regulating taxation or exemption in section 1a { - , Article IX
of this Constitution, - } { + of this Article + } does not
apply to legislation enacted pursuant to this subsection.
{ - (7) - } { + (11) + } This section does not apply:
(a) If, for a biennium or any portion of a biennium, a state
tax is not imposed on or measured by the income of individuals.
(b) To revenues derived from any minimum tax imposed on
corporations for the privilege of carrying on or doing business
in this state that is imposed as a fixed amount and that is
nonapportioned (except for changes of accounting periods).
(c) To biennia beginning before July 1, 2001.
PARAGRAPH 2. { + The amendment proposed by this resolution
shall be submitted to the people for their approval or rejection
at a special election held throughout this state as provided in
chapter ___, Oregon Laws 2009 (Enrolled ___ Bill ___) (LC
3364). + }
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