Bill Text: OR HB2464 | 2013 | Regular Session | Engrossed

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Relating to tax compliance; and prescribing an effective date.

Spectrum: Committee Bill

Status: (Passed) 2013-08-14 - Chapter 734, (2013 Laws): Effective date October 7, 2013. [HB2464 Detail]

Download: Oregon-2013-HB2464-Engrossed.html

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     77th OREGON LEGISLATIVE ASSEMBLY--2013 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 1250

                           B-Engrossed

                         House Bill 2464
                  Ordered by the House June 14
       Including House Amendments dated May 14 and June 14

Introduced and printed pursuant to House Rule 12.00. Presession
  filed (at the request of House Interim Committee on Revenue)

                             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.

  Requires person engaged in trade or business that makes payment
for performance of construction services to make reports to payee
and to Department of Revenue. Provides for penalties for failure
to make required report.
  Applies to payments made in tax years beginning on or after
January 1, 2013.
   { +  Appropriates moneys from General Fund to Department of
Revenue for purposes of carrying out provisions of Act. + }
  Takes effect on 91st day following adjournment sine die.

                        A BILL FOR AN ACT
Relating to tax compliance; creating new provisions; amending ORS
  305.217; appropriating money; and prescribing an effective
  date.
Be It Enacted by the People of the State of Oregon:
  SECTION 1.  { + Section 2 of this 2013 Act is added to and made
a part of ORS chapter 314. + }
  SECTION 2.  { + (1) As used in this section:
  (a) 'Construction services' includes the erection, excavation,
installation, alteration, addition, modification, repair,
improvement, demolition, destruction, dismantling or removal of
all or any part of a building, structure, dock, wharf, surface or
subsurface construction on or attached to any real property.
  (b) 'Payee' means a person, corporation, partnership,
association or limited liability company engaged in the
performance of construction services.
  (c) 'Payment' does not include wages paid to an employee of the
payor.
  (d) 'Payor' means a person engaged in a trade or business that
makes payment, in the course of the trade or business, for the
performance of construction services. 'Payor' does not include a
person that does not, in the ordinary course of the person's
business, engage in contracting for construction services.
  (2) A payor that makes payment of $600 or more during the tax
year to a payee for the performance of construction services, or
for the performance of construction services and for materials or
equipment, shall make a report to the payee and to the Department
of Revenue. The payor shall make the report to the payee on or
before the 31st of January following the tax year in which the
payment was made. The report must be made in the manner and on a
form prescribed by the department and must include:
  (a) The name and address of the payor;
  (b) The name, address and tax identification number of the
payee;
  (c) The total amount that the payor paid to the payee during
the tax year; and
  (d) Any other information that the department requires.
  (3) The Director of the Department of Revenue shall transmit
the information contained in all reports received under this
section to the Director of the Employment Department no later
than the last day of the month following the calendar quarter in
which the report was received. The Department of Revenue may
share the reports required under this section, upon request, with
any state or federal law enforcement agency.
  (4)(a) A person who fails to file a report required under this
section, or a return or report required under ORS 314.360 or
316.202, or who files an incomplete or incorrect return or
report, shall be subject to a penalty of $50 per information
return after the date on which the return or report is due, up to
a maximum penalty of $2,500.
  (b) A person who knowingly fails to file a report required
under this section, or a return or report required under ORS
314.360 or 316.202, or who knowingly files an incomplete, false
or misleading return or report, shall be subject to a penalty of
$250 per information return after the date on which the return or
report is due, up to a maximum penalty of $25,000.
  (5) The Department of Revenue may by rule establish procedures
for carrying out the provisions of this section. The department
may further define by rule the terms defined in this section in a
manner consistent with this section. + }
  SECTION 3. ORS 305.217 is amended to read:
  305.217.   { - No - }   { + A + } deduction   { - shall be - }
 { + is not + } allowed under ORS chapter 316, 317 or 318 to an
individual or entity for amounts paid as wages or as remuneration
for personal services if that individual or entity fails to
report the payments as required by ORS 314.360 or 316.202  { + or
section 2 of this 2013 Act + } on the date prescribed therefor
(determined with regard to any extension of time for filing)
unless it is shown that the failure to report is due to
reasonable cause and not done with the intent to evade payment of
the tax imposed by ORS chapter 316 or to assist another in
evading the payment of such tax.
  SECTION 4.  { + Section 2 of this 2013 Act and the amendments
to ORS 305.217 by section 3 of this 2013 Act apply to payments
made in tax years beginning on or after January 1, 2013. + }
  SECTION 5.  { + In addition to and not in lieu of any other
appropriation, there is appropriated to the Department of
Revenue, for the biennium beginning July 1, 2013, out of the
General Fund, the amount of $86,000 for the purpose of carrying
out the provisions of section 2 of this 2013 Act. + }
  SECTION 6.  { + This 2013 Act takes effect on the 91st day
after the date on which the 2013 regular session of the
Seventy-seventh Legislative Assembly adjourns sine die. + }
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