Oregon

Oregon amended its statutory code in 1979 to limit the growth of appropriations to personal income growth.

RATE OF GROWTH OF APPROPRIATIONS

291.355 Rate of growth of appropriations for general governmental purposes. (1) Each biennium, growth of state governmental appropriations for general governmental purposes shall be no greater than the rate of growth of personal income in Oregon in the two preceding calendar years. The rate of growth shall be computed based on the U.S. Department of Commerce reports for the two preceding calendar years.

(2) For the 1979-1981 biennium, the base to which the rate of growth applies shall equal state governmental appropriations for general governmental purposes in the 1977-1979 biennium plus expenditures from non-General Fund sources that are to be funded in 1979-1981 out of the General Fund and less any General Fund expenditures in 1977-1979 that are to be funded in 1979-1981 from non-General Fund sources.

(3) In bienniums subsequent to the 1979-1981 biennium, the base shall be adjusted as necessary to reflect transfer of funding sources between General Fund sources and non-General Fund sources in order to maintain a base used for general governmental purposes.

(4) Debt service and tax relief other than that provided under ORS 310.630 to 310.706 shall not be considered appropriations for general governmental purposes. [1979 c.241 s.29]

Note: See second note under 291.349.

291.349 Revenue estimate; disposition of revenue in excess of estimate. (1) As soon as practicable after adjournment sine die of the regular session of the Legislative Assembly, the Oregon Department of Administrative Services shall report to the Emergency Board the estimate as of July 1 of the first year of the biennium of General Fund and State Lottery Fund revenues that will be received by the state during that biennium. The Oregon Department of Administrative Services shall base its estimate on the last forecast given to the Legislative Assembly before adjournment sine die of the regular session on which the printed, adopted budget prepared in the Oregon Department of Administrative Services is based, adjusted only insofar as necessary to reflect changes in laws adopted at that session. The report shall contain the estimated revenues from corporate income and excise taxes separately from the estimated revenues from other General Fund sources. The Oregon Department of Administrative Services may revise the estimate if necessary following adjournment sine die of any special or emergency session of the Legislative Assembly but any revision does not affect the basis of the computation described in subsection (3) or (4) of this section.

(2) As soon as practicable after the end of the biennium, the Oregon Department of Administrative Services shall report to the Emergency Board, or the Legislative Assembly if it is in session, the amount of General Fund revenues collected as of the last June 30 of the preceding biennium. The report shall contain the collections from corporate income and excise taxes separately from collections from other sources.

(3) If the revenues received from the corporate income and excise taxes during the biennium exceed the amounts estimated to be received from such taxes for the biennium, as estimated after adjournment sine die of the regular session, by two percent or more, the total amount of that excess shall be credited to corporate income and excise taxpayers in a percentage amount of corporate excise and income tax liability as determined under subsection (5) of this section. However, no credit shall be allowed against tax liability imposed by ORS 317.090.

(4) If the revenues received from General Fund revenue sources, exclusive of those described in subsection (3) of this section, during the biennium exceed the amounts estimated to be received from such sources for the biennium, as estimated after adjournment sine die of the regular session, by two percent or more, the total amount of that excess, reduced by the cost certified by the Department of Revenue under ORS 291.351 as being allocable to payments described under this subsection, shall be paid to personal income taxpayers in a percentage amount of prior year personal income tax liability as determined under subsection (6) of this section.

(5) If there is an excess to be credited under subsection (3) of this section, on or before October 1, following the end of each biennium, the Oregon Department of Administrative Services shall determine and certify to the Department of Revenue the percentage amount of credit for purposes of subsection (3) of this section. The percentage amount determined shall be a percentage amount to the nearest one-tenth of a percent that will distribute the excess to be credited to corporate excise and income taxpayers for taxable years beginning in the calendar year during which the excess is determined. The credit shall be computed after the allowance of any other credit or offset against tax liability allowed or allowable under any provision of law of this state, and before the application of estimated tax payments, withholding or other advance tax payments.

(6)(a) If there is an excess to be paid under subsection (4) of this section, on or before September 15, following the end of each biennium, the Oregon Department of Administrative Services shall determine and certify to the Department of Revenue the percentage amount of payment for purposes of subsection (4) of this section. The percentage amount so determined shall be a percentage amount to the nearest one-hundredth of a percent that will distribute the excess to be paid to personal income taxpayers under subsection (4) of this section. The percentage amount shall equal the amount distributed under subsection (4) of this section divided by the estimated total personal income tax liability for all personal income taxpayers for tax years beginning in the calendar year immediately preceding the calendar year in which the excess is determined.

(b) The Department of Revenue shall multiply the percentage amount determined under paragraph (a) of this subsection by the total amount of a personal income taxpayer's tax liability for the tax year beginning in the calendar year immediately preceding the calendar year in which the excess is determined in order to calculate the amount of the payment to be made to the taxpayer.

(c) The payment described under this subsection shall be subject to the rules allowing setoff of refunds or sums due debtors of this state under ORS 293.250.

(d) The payment described under this subsection shall be mailed by the Department of Revenue to personal income taxpayers eligible for the payment on or before December 1 following the end of the biennium for which the payment described under this subsection is being made.

(e) Notwithstanding paragraph (d) of this subsection, the Department of Revenue shall mail payment at the earliest date of practicable convenience in the case of a return:

(A) For a tax year beginning in the calendar year immediately preceding the calendar year in which the excess is determined for which payment is being made; and

(B) That is first filed on or after August 15 after the end of the biennium.

(7) No payment shall be made to a taxpayer if, after making the calculation described under subsection (6) of this section, the amount calculated is less than $5. [1979 c.241 s.30; 1981 c.885 s.1; 1985 c.828 s.19; 1995 c.815 s.2; 1997 c.99 s.1; 1997 c.654 s.4]

Note: Section 5, chapter 654, Oregon Laws 1997, provides:

Sec. 5. The amendments to ORS 291.349 by section 4 of this Act apply to tax years beginning on or after January 1, 1995. [1997 c.654 s.5]

Note: 291.349 and 291.355 were enacted into law by the Legislative Assembly but were not added to or made a part of ORS chapter 291 or any series therein by legislative action. See Preface to Oregon Revised Statutes for further explanation.

-- THE OREGON STATUTES

Oregon has a Constitutional Amendment from 1996 that requires a 3/5 vote of the Legislature to increase taxes.

ARTICLE IV - Legislative Department

Section 25. Majority necessary to pass bills and resolutions; special requirements for bills raising revenue; signatures of presiding officers required. (1) Except as otherwise provided in subsection (2) of this section, a majority of all the members elected to each House shall be necessary to pass every bill or Joint resolution.

(2) Three-fifths of all members elected to each House shall be necessary to pass bills for raising revenue.

(3) All bills, and Joint resolutions passed, shall be signed by the presiding officers of the respective houses. [Constitution of 1859; Amendment proposed by H.J.R. 14, 1995, and adopted by the people May 21, 1996]

-- THE CONSTITUTION OF THE STATE OF OREGON

Oregon’s Constitution limits the state’s Governor to serving eight years in any twelve-year period.

 ARTICLE V -- EXECUTIVE DEPARTMENT

 Section 1. Governor as chief executive; term of office; period of eligibility. The cheif [sic] executive power of the State, shall be vested in a Governor, who shall hold his office for the term of four years; and no person shall be eligible to such office more than Eight, in any period of twelve years.

 -- THE CONSTITUTION OF THE STATE OF OREGON

Created by: Jennifer L. Crull

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