Chapter 501 Oregon Laws 1999
Session Law
AN ACT
SB 249
Relating to taxation;
creating new provisions; amending ORS 320.005, 320.011, 320.012, 320.013,
320.100, 320.120, 320.150 and 320.990; and repealing ORS 320.031, 320.040,
320.050, 320.060, 320.065 and 320.070.
Be It Enacted by the People of the State of Oregon:
SECTION 1.
ORS 320.005 is amended to read:
320.005. As used in this chapter, unless the context requires
otherwise:
(1) "Amusement device" means a video lottery game terminal, including but not limited to any [mechanical,] electronic,
mechanical-electronic or nonmechanical [mechanism
which is designed for the amusement of the player or operator and is complete
in itself having as its purpose the production or creation of a game of chance] device that:
(a) Displays a ticket
through the use of a video display screen;
(b) Is available for
consumer play upon the payment of consideration;
(c) Determines winners
through the element of chance; and
(d) Displays possible prizes
on the device.
(2) "Department" means the Department of Revenue.
[(3) "Display or
operation" means the display by a person for gain, benefit or advantage of
any amusement device for use by the public or for the operation by the public
of the device and includes but is not limited to a device that is displayed or
operated by or for the use of the members of any private club, lodge, fraternal
society or other like organization whose membership is limited to a portion of
the public.]
[(4)(a) "Game of
chance" means any contest, game, gaming scheme or gaming mechanism or
other amusement device in which the outcome depends in a material degree upon
an element of chance as opposed to an element of knowledge, expertise, physical
ability or other skill of the user which may affect the outcome in a material
way notwithstanding that chance may also be a factor. Game of chance does not
include an on-line terminal of the Oregon State Lottery used to sell lottery
game tickets or a game of knowledge, expertise, physical ability or other
skill.]
[(b) A game of chance is
exemplified by poker, blackjack, keno, roulette, racing or other gaming device.]
[(c) A game of knowledge,
expertise, physical ability or other skill is exemplified by a pinball machine,
shuffleboard, video or other game where the user has control of any object, for
example a human character, space ship, car, ball or coin in order that the user
may direct the object to a destination or cause the object to assume a
particular or different form.]
[(d) "Game of
chance" may be defined further by the department by rule.]
(3) "Net
receipts" has the meaning given the term "net receipts from video
lottery games" under ORS 461.547.
(4) "Operate"
means to make an amusement device available for use by the public for gain,
benefit or advantage.
(5)(a) "Person" means every individual, partnership
(limited or not), corporation (for-profit or not-for-profit), company,
cooperative, joint stock company, joint venture, firm, business trust,
association, organization, institution, club, society, receiver, assignee,
trustee in bankruptcy, auctioneer, syndicate, trust, trustee, estate, personal
representative or any group of individuals acting as a unit, whether mutual,
cooperative, fraternal, nonprofit or otherwise.
(b) "Person" includes this or another state, a
municipal corporation, quasi-municipal corporation or political subdivision of
this or another state, and the agencies, departments and institutions of this
or another state, irrespective of the nature of the activities engaged in or
functions performed, but does not include the United States or a foreign
government or any agency, department or instrumentality of the United States or
of any foreign government.
(6) "Tax year"
means a period of 12 months beginning July 1 and ending the following June 30.
SECTION 2.
ORS 320.011 is amended to read:
320.011. (1) An excise tax is imposed upon every person for the
privilege of [engaging in the business of
display or operation of] operating
an amusement device within this state [for
gain, benefit or advantage]. The [excise]
tax shall be imposed [on an annual basis and shall be measured]
as provided in subsection (2) of this section and ORS 320.012.
(2) The [excise] tax shall be $125 for [display or operation of each amusement
device designed and played as a game of chance] operating an amusement device during the tax year.
(3) If an amusement
device is not in operation in each quarter of the tax year, the tax imposed
under this section shall be prorated, based on the number of calendar quarters
in which the amusement device was operating for one day or more.
[(3)] (4) The [excise] tax imposed by
this section is in addition to all other excises, taxes, fees or other charges
and shall not be used to reduce amounts otherwise accruing to the State Lottery
Fund under contracts or agreements with lottery operators or retailers or in
any other manner.
SECTION 3.
ORS 320.012 is amended to read:
320.012. (1) If at
any point during the [period for which
the excise tax as measured under ORS 320.011 (2) is paid that the net receipts
at a location of the person from the display or operation of an amusement
device or] tax year, net receipts
from one or more amusement devices operating
at a single location exceed $104,000, the tax imposed under ORS 320.011
shall be increased by [adding to its
measure the amount of] an additional
$50 for each device at the location.
(2) If at any point
during the [period for which the excise
tax as measured under ORS 321.011 (2) and subsection (1) of this section is
paid that the net receipts at a location of the person from the display or
operation of an amusement device or] tax
year, net receipts from one or more amusement devices operating at a single location exceed $260,000, the tax imposed
under ORS 320.011 and subsection (1) of
this section shall be increased by [adding
to its measure the amount of] an
additional $75 for each device at the location.
[(3) Any increases in the
measure of the excise tax provided by this section shall be paid to the
Department of Revenue within 10 days after the close of the calendar quarter in
which the net receipts of the person reach the level for which the increase in
the measure of the tax is provided. Upon payment of the increase in excise tax
and any penalty, the department shall issue to the person a receipt for each
amusement device with respect to which the increase is paid.]
[(4) As used in this
section, "net receipts" has the meaning given the term "net
receipts from video lottery games" under ORS 461.547.]
[(5)] (3) The department may adopt rules
defining the term "location" for purposes of this section.
SECTION 4.
ORS 320.013 is amended to read:
320.013. (1) In addition to the excise tax imposed by ORS
320.011, an excise tax is imposed upon every person for the privilege of [engaging in the business of display or
operation of any] operating an
amusement device within this state. The
tax [for gain, benefit or advantage.
The excise shall be imposed on an annual basis and] shall be $10 for [display or operation of] each amusement
device operated during the tax year [designed and played as a game of chance].
(2) All moneys received from the tax imposed under subsection
(1) of this section [as taxes or penalty], not including penalties, shall be
paid by the Department of Revenue into the State Treasury quarterly and are
continuously appropriated to pay the expenses of the state and local programs
of the Oregon Youth Conservation Corps established under ORS 418.650 to
418.663.
SECTION 5. (1) If an amusement device was in operation
before July 1 of the tax year and is to be operating on July 1 of the tax year,
the excise tax imposed under ORS 320.011 and 320.013 shall be due on June 30
preceding the tax year.
(2) If an amusement device
begins operating at a location on or after July 1 of the tax year, the excise
tax imposed under ORS 320.011 and 320.013 shall be due on the day the amusement
device begins operating.
(3) If additional taxes are
due under ORS 320.012, the additional taxes shall be due on the 14th day after
the close of the calendar quarter in which the net receipts from amusement
devices operating at a location equal or exceed the level at which the additional
taxes are due.
(4) If taxes imposed under
ORS 320.011 or 320.013 have been paid for operating an amusement device that,
during the tax year, is taken out of operation as the result of being replaced
by another amusement device, the taxes that have been paid for the amusement
device that has been taken out of operation shall be taken into account in
determining any taxes due on the replacement amusement device.
(5) The Department of
Revenue may not refund any amusement device tax to an amusement device taxpayer
who, at the time of payment, was responsible for the payment of the tax and who
subsequently is no longer the person responsible for the payment of the tax.
SECTION 6. (1) Each person responsible by law or
contract for the operation of an amusement device in this state, together with
any officer or partner thereof, shall be liable jointly and severally for the
taxes imposed under this chapter and for any penalties arising under this
chapter.
(2) If an amusement device
is operated in this state without a tax imposed by this chapter having been
paid on or before 30 days after the date the tax is due, a penalty of $200
shall be imposed.
(3) The penalty imposed in
subsection (2) of this section shall be waived if the sole reason the tax was
not paid is because of the failure of the Oregon State Lottery to act under the
agreement described in ORS 320.150.
SECTION 7.
ORS 320.100 is amended to read:
320.100. (1) All moneys received from the taxes imposed under
ORS 320.011 and 320.012, including
penalties, [as taxes or penalty]
shall be paid by the Department of Revenue in the following manner:
(a) Seventy-five percent (75%) of the moneys shall be credited,
appropriated or remitted as follows:
(A) Forty-three and two-tenths percent (43.2%) thereof shall be
credited to the General Fund to be available for payment of general
governmental expenses.
(B) Nine and seven-tenths percent (9.7%) is continuously
appropriated to pay the expenses of state and local programs of the Oregon
Youth Conservation Corps established under ORS 418.650 to 418.663.
(C) Forty-seven and one-tenth percent (47.1%) thereof shall be
remitted to the county treasurers of the several counties of the state. Each
county shall receive such share of the moneys as its population, determined by
the State Board of Higher Education, bears to the total population of the
counties of the state, as determined by the census last preceding such
apportionment.
(b) Twenty-five percent (25%) of the moneys shall be
continuously appropriated to pay the expenses of the state and local programs
of the Oregon Youth Conservation Corps established under ORS 418.650 to 418.663.
(2) All revenues received under this section by the treasurers
of the several counties shall be placed in the general fund of each county to
be expended by the county courts or the board of county commissioners of the
several counties for general governmental expenses.
SECTION 8.
ORS 320.120 is amended to read:
320.120. (1) The
Department of Revenue may employ the agents necessary for the administration
and enforcement of this chapter. Agents of the department charged with the
enforcement of this chapter have all the power and authority of police officers
in the performance of such duties.
(2) The Oregon State
Lottery and the agents and employees of the Oregon State Lottery may not be
considered agents of the department charged with the enforcement of this
chapter.
SECTION 9.
ORS 320.150 is amended to read:
320.150. The Department or Revenue and the Oregon State Lottery
Commission shall enter into an agreement pursuant to which the [commission shall assume responsibility for
collection functions] Oregon State
Lottery shall assist the department in the collection of excise taxes imposed
under this chapter on amusement devices operated under the authority of the
Oregon State Lottery Commission pursuant to ORS 461.215 and 461.217 and any other functions of the department
under this chapter as may be
provided under the agreement. The agreement is not intended to preclude
performance by the department of collection functions as from time to time may
be required, nor is the agreement intended to preclude the performance of
functions by the [commission] Oregon State Lottery, under less
formal arrangements made with the department, with respect to the tax imposed
under this chapter if the functions are not specifically mentioned in the
agreement. The collection of taxes under
this chapter by the Oregon State Lottery shall not render the Oregon State
Lottery or the agents and employees of the Oregon State Lottery responsible for
collection of the tax.
SECTION 10.
ORS 320.990 is amended to read:
320.990. [(1)]
Violation of any provision of this chapter by any person is punishable, upon
conviction, by a fine of not more than $500, or by imprisonment in the county
jail for not more than six months, or by both. Justice courts have concurrent
jurisdiction with the circuit courts of any prosecution provided for in this
subsection.
[(2) Violation of ORS
320.060 (3) is forgery in the first degree and is punishable as such.]
[(3) Violation of ORS
320.060 (4) and (5) and 320.070 (3) is punishable, upon conviction, by a fine
of not more than $1,000 or imprisonment in the county jail for not more than
one year, or both.]
SECTION 11. Sections 5 and 6 of this 1999 Act and the
amendments to ORS 320.005, 320.011, 320.012, 320.013, 320.100, 320.120, 320.150
and 320.990 by sections 1 to 4 and 7 to 10 of this 1999 Act apply to the
operation of amusement devices in amusement device tax years beginning on or
after July 1, 1999.
SECTION 12. ORS 320.031, 320.040, 320.050, 320.060,
320.065 and 320.070 are repealed.
SECTION 13. Nothing in the repeal of ORS 320.031,
320.040, 320.050, 320.060, 320.065 and 320.070 by section 12 of this 1999 Act
shall affect the determination or collection of amusement device taxes for an
amusement device tax year beginning before July 1, 1999.
SECTION 14. Sections 5 and 6 of this 1999 Act are added
to and made a part of ORS chapter 320.
Approved by the Governor
July 6, 1999
Filed in the office of
Secretary of State July 6, 1999
Effective date October 23,
1999
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