(2) If a conflict is found to exist between subsection (1) of this section and ORS 314.835, ORS 314.835 controls. [2018 c.64 §9]
Note: See note under 307.870.
Note: Sections 12 to 17, chapter 64, Oregon Laws 2018, provide:
Sec. 12. (1)(a) On or before March 31, 2019, each qualified heavy equipment provider shall file with the Department of Revenue a complete report on forms provided by the department, made under penalties for false swearing, that lists the qualified heavy equipment that is assigned to each rental location and that is:
(A) In this state on January 1, 2019, at 1:00 a.m.; and
(B) Subject to the heavy equipment rental tax imposed under section 2 of this 2018 Act [307.872].
(b) The report required under this subsection shall provide the cost, acquisition date, description and rental location of each piece of qualified heavy equipment.
(c) The department shall use the report required under this subsection and the 14 years personal property valuation factors found in Table 2 of the department’s Personal Property Valuation Guidelines 2017, as revised effective December 2016, to determine a real market value for the qualified heavy equipment for purposes of this section.
(d) For purposes of this section, the department shall determine the maximum assessed value and assessed value for the qualified heavy equipment under ORS 308.153, treating the qualified heavy equipment as new property within the meaning of ORS 308.149 (6)(a)(C).
(e) The department shall use the values determined under this section to estimate the amount of ad valorem property taxes that would be due for the property tax year beginning on July 1, 2019, if the qualified heavy equipment were subject to ad valorem property taxation.
(2) On or before March 31, 2020, for each rental location, the department shall compare:
(a) The total amount of tax reported under section 4 of this 2018 Act [307.878], after any adjustment or amended returns, that is attributable to qualified heavy equipment rented out from the rental location during the 2019 calendar year; and
(b) The total estimated ad valorem property tax amount determined under subsection (1) of this section.
(3)(a) If the total amount determined under subsection (2)(a) of this section is less than the total amount determined under subsection (2)(b) of this section, the department shall collect the amount of the difference from the applicable qualified heavy equipment provider as a supplemental amount of the heavy equipment rental tax imposed under section 2 of this 2018 Act.
(b) The supplemental tax amount shall be payable on or before the later of June 30, 2020, or within 60 days after the date of the notice from the department.
(c) After retaining moneys necessary to reimburse the department for the actual costs incurred by the department in administering this section, not to exceed five percent of the supplemental tax amount, the department shall remit each net supplemental tax amount collected under this subsection to the treasurer of the county in which the applicable rental location is located and the county treasurer shall deposit all such amounts in the county’s unsegregated tax collections account.
(4) If the amount determined under subsection (2)(a) of this section is greater than the amount determined under subsection (2)(b) of this section, the department shall, in the department’s sole discretion, refund the amount of the difference to the qualified heavy equipment provider without interest or issue the amount of the difference without interest as a credit against future heavy equipment rental tax liabilities of the qualified heavy equipment provider.
(5) Provisions of law relating to the confidentiality of public records do not apply to the extent that remittances and refunds made by the department pursuant to this section disclose information derived from heavy equipment rental tax returns. [2018 c.64 §12]
Sec. 13. (1)(a) On or before March 31, 2020, each qualified heavy equipment provider shall file with the Department of Revenue a complete report on forms provided by the department, made under penalties for false swearing, that lists the qualified heavy equipment that is assigned to each rental location and that is:
(A) In this state on January 1, 2020, at 1:00 a.m.; and
(B) Subject to the heavy equipment rental tax imposed under section 2 of this 2018 Act [307.872].
(b) The report required under this subsection shall provide the cost, acquisition date, description and rental location of each piece of qualified heavy equipment.
(c) The department shall use the report required under this subsection and the 14 years personal property valuation factors found in Table 2 of the department’s Personal Property Valuation Guidelines 2017, as revised effective December 2016, to determine a real market value for the qualified heavy equipment for purposes of this section.
(d) For purposes of this section, the department shall determine the maximum assessed value and assessed value for the qualified heavy equipment under ORS 308.153, treating the qualified heavy equipment as new property within the meaning of ORS 308.149 (6)(a)(C).
(e) The department shall use the values determined under this section to estimate the amount of ad valorem property taxes that would be due for the property tax year beginning on July 1, 2020, if the qualified heavy equipment were subject to ad valorem property taxation.
(2) On or before March 31, 2021, for each rental location, the department shall compare:
(a) The total amount of tax reported under section 4 of this 2018 Act [307.878], after any adjustment or amended returns, that is attributable to qualified heavy equipment rented out from the rental location during the 2020 calendar year; and
(b) The total estimated ad valorem property tax amount determined under subsection (1) of this section.
(3)(a) If the total amount determined under subsection (2)(a) of this section is less than the total amount determined under subsection (2)(b) of this section, the department shall collect the amount of the difference from the applicable qualified heavy equipment provider as a supplemental amount of the heavy equipment rental tax imposed under section 2 of this 2018 Act.
(b) The supplemental tax amount shall be payable on or before the later of June 30, 2021, or within 60 days after the date of the notice from the department.
(c) After retaining moneys necessary to reimburse the department for the actual costs incurred by the department in administering this section, not to exceed five percent of the supplemental tax amount, the department shall remit each net supplemental tax amount collected under this subsection to the treasurer of the county in which the applicable rental location is located and the county treasurer shall deposit all such amounts in the county’s unsegregated tax collections account.
(4) If the amount determined under subsection (2)(a) of this section is greater than the amount determined under subsection (2)(b) of this section, the department shall, in the department’s sole discretion, refund the amount of the difference to the qualified heavy equipment provider without interest or issue the amount of the difference without interest as a credit against future heavy equipment rental tax liabilities of the qualified heavy equipment provider.
(5) Provisions of law relating to the confidentiality of public records do not apply to the extent that remittances and refunds made by the department pursuant to this section disclose information derived from heavy equipment rental tax returns. [2018 c.64 §13]
Sec. 14. Sections 7 [307.885], 9 [307.890] and 10 [307.872 (5)] of this 2018 Act and the definitions provided by section 1 of this 2018 Act [307.870] apply to sections 12 and 13 of this 2018 Act. [2018 c.64 §14]
Sec. 15. Sections 12 and 13 of this 2018 Act are repealed on January 2, 2022. [2018 c.64 §15]
Sec. 16. (1) Not later than July 1, 2022, the Department of Revenue, after consulting with the Legislative Revenue Officer as necessary, shall submit a report in the manner provided in ORS 192.245 to the interim committees of the Legislative Assembly related to revenue regarding the heavy equipment rental tax imposed under section 2 of this 2018 Act [307.872].
(2) For tax years with valuation dates of January 1, 2019, and January 1, 2020, the report shall set forth:
(a) The revenue collected under sections 12 (3)(a) and 13 (3)(a) of this 2018 Act, after payment of refunds, for all taxpayers registered as qualified heavy equipment providers; and
(b) The amount of ad valorem property taxes that would have been due for the property tax years beginning on July 1, 2019, and July 1, 2020, respectively, if the qualified heavy equipment had been subject to ad valorem property taxation.
(3) In the report the Legislative Revenue Officer shall propose a tax rate for section 2 of this 2018 Act that, based on the experience of the heavy equipment rental tax to date, will maintain revenue neutrality with respect to the replacement of the ad valorem property tax by the heavy equipment rental tax. [2018 c.64 §16]
Sec. 17. Section 16 of this 2018 Act is repealed on January 2, 2023. [2018 c.64 §17]