Relating to taxation; creating new provisions; amending ORS 317.080, 317.090, 317.850 and 723.752; and providing for revenue raising that requires approval by a three-fifths majority.




     69th OREGON LEGISLATIVE ASSEMBLY--1997 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 2810

                         House Bill 3259

Sponsored by Representative JOHNSON (at the request of Oregon
  Bankers Association)


                             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.

  Imposes corporate excise tax on state-chartered credit unions.
Dedicates tax revenues to public safety. Establishes Public
Safety Account.
  Applies to tax years beginning on or after January 1, 1998.

                        A BILL FOR AN ACT
Relating to taxation; creating new provisions; amending ORS
  317.080, 317.090, 317.850 and 723.752; 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.  { + Section 2 of this Act is added to and made a
part of ORS chapter 317. + }
  SECTION 2.  { + Except as otherwise required by federal law,
every credit union subject to ORS chapter 723 shall pay annually
to the state an excise tax according to or measured by its Oregon
taxable income, to be computed in the manner provided by this
chapter at the rates provided in ORS 317.061. + }
  SECTION 3. ORS 317.080, as amended by section 13, chapter 786,
Oregon Laws 1995, is amended to read:
  317.080. The following corporations are exempt from the taxes
imposed by this chapter:
  (1) Organizations described in subsection (c) and subsection
(j) of section 501 of the Internal Revenue Code unless { + :
  (a) + } The exemption is denied under subsection (h), (i) or
(m) of section 501 or under section 502, 503 or 505 of the
Internal Revenue Code { + ; or
  (b) The organization is a state-chartered credit union
described under section 501(c)(14) of the Internal Revenue
Code + }.
  (2) Organizations described in section 501(d) of the Internal
Revenue Code, unless the exemption is denied under section 502 or
503 of the Internal Revenue Code.
  (3) Organizations described in section 501(e) of the Internal
Revenue Code.
  (4) Organizations described in section 501(f) of the Internal
Revenue Code.
  (5) Organizations described in section 521 of the Internal
Revenue Code.

  (6) Foreign or alien insurance companies, but only with respect
to the underwriting profit derived from writing wet marine and
transportation insurance subject to tax under ORS 731.824 and
731.828.
  (7) Corporations, organized and operated primarily for the
purpose of furnishing permanent residential, recreational and
social facilities primarily for elderly persons, which:
  (a) Are corporations not for profit, authorized to transact
business in this state pursuant to ORS chapter 65 or any statute
repealed by chapter 580, Oregon Laws 1959;
  (b) Receive not less than 95 percent of their operating gross
income (excluding any investment income) solely from payments for
living, medical, recreational, and social services and
facilities, paid by or on behalf of the elderly persons using the
facilities of such corporation;
  (c) Permit no part of their net earnings to inure to the
benefit of any private stockholder or individual; and
  (d) Provide in their articles or other governing instrument
that, upon dissolution, the assets remaining after satisfying all
lawful debts and liabilities shall be distributed to one or more
corporations exempt from taxation under this chapter as
corporations organized and operated exclusively for religious,
charitable, scientific, literary or educational purposes.
  (8) People's utility districts established under ORS chapter
261.
  SECTION 4. ORS 317.090 is amended to read:
  317.090. Each taxpayer named in ORS 317.056 or 317.070  { + or
section 2 of this 1997 Act + } 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. The minimum tax shall not be
apportionable (except in the case of a change of accounting
periods), but shall be payable in full for any part of the year
during which a corporation is subject to tax.
  SECTION 5. ORS 317.850 is amended to read:
  317.850. (1)  { + Except as provided in subsection (3) of this
section, + } 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. 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.
  (2) The amendment of this section by the Forty-seventh
Legislative Assembly shall first apply to the state levy of taxes
for the fiscal year 1953-54.
   { +  (3) The net revenue from the tax imposed under section 2
of this 1997 Act shall be credited to the Public Safety
Account. + }
  SECTION 6. ORS 723.752 is amended to read:
  723.752.  { + (1) + } Any credit union subject to this chapter
shall be deemed an institution for savings within the meaning of
the law that exempts such institutions from taxation. No law,
except as stated in this section, that taxes corporations in any
form, or the shares thereof or the accumulations therein, shall
apply to credit unions doing business in accordance with this
chapter unless the credit unions are specifically named in the
law.  However, credit unions subject to this chapter shall be
subject to the same tax as mutual savings and loan associations.
   { +  (2) This section shall not apply to taxes imposed under
ORS chapter 317. + }
  SECTION 7.  { + Section 2 of this Act and the amendments to ORS
317.080, 317.090, 317.850 and 723.752 by sections 3 to 6 of this
Act apply to tax years beginning on or after January 1, 1998. + }

  SECTION 8.  { + (1) The Public Safety Account is created in the
General Fund.
  (2) Amounts in the Public Safety Account are dedicated to
public safety.
  (3) As used in this section, 'public safety' includes law
enforcement, fire protection, emergency medical services,
corrections and emergency dispatch. + }
                         ----------