Item 3: Ratification of IGR Committee Actions and Direction on Legislative Policy

Home Browse Search

Title: Increases cigarette tax and continuously appropriates moneys from increase to Department of Transportation for transportation services for elderly individuals and individuals with disabilities. Applies to cigarette tax reporting periods beginning on or after effective date of Act. Takes effect on 91st day following adjournment sine die. Sponsored by: House Interim Committee on Revenue URL:http://www.leg.state.or.us/09reg/measpdf/hb2000.dir/hb2075.intro.pdf ContactRespondentDept Updated Priority Policy Poli Numb Recommendation Larry Hill CS-FIN 1/15/2009 Pri 2 Yes II. B1 Oppose Comments: I recommend oppose unless amended. If the measure is amended to eliminate the proposed reduction in percentage shares of cigarette revenue assigned to cities and counties, the measure should be supported. HB 2015 would increase the state cigarette tax. However, as introduced, the measure would decrease the percentage share of total revenue that goes to cities, counties and the state but significantly increase the percentage share that goes to transportation services for seniors and disabled persons. The City of Eugene's current share of state cigerette tax revenue will be an estimated $262,000 in FY09. Cities may use their share for general government purposes, without program restrictions on their use. Oregon’s cigarette tax was approved in 1967. When it passed, the tax was $0.04 per pack, with 50 percent of the tax designated for property tax relief and 50 percent to be distributed to cities and counties. Since then, the amount of tax on cigarettes has increased but cities’ proportionate share of the tax revenue has shrunk, from 33 percent to just 1.7 percent of the total tax (a second penny was added for cities in 1986). The current tax rate is $1.18 per pack of 20 cigarettes. Despite the tax increase, cigarette tax revenues have generall been declining each year. Revenue from the tax is allocated as follows: $0.22 to the State General Fund, $0.87 to the Oregon Health Plan, $0.02 to cities, $0.02 to counties, $0.02 to the Oregon Department of Transportation for transportation services to the elderly and disabled, and $0.03 to the Tobacco Use Reduction Account. HB 2079 Relating Clause: Relating to personal flotation devices. Title: Requires operators and passengers to wear personal flotation device on any section of waters rated class III or higher on commonly accepted scale of river difficulty. Sponsored by: Representative HUFFMAN URL:http://www.leg.state.or.us/09reg/measpdf/hb2000.dir/hb2079.intro.pdf ContactRespondentDept Updated Priority Policy Poli Numb Recommendation Glen Potter Glen Potter EFD 1/14/2009 Pri 3 No No Support Comments: Wearing of personal flotation devices offers boat operators and passengers an added margin of safety in the event of an accident, which is more likely in swift water. HB 2096 Relating Clause: Relating to agreements for the provision of local exchange telecommunications service; declaring an emergency. Title: Prohibits telecommunications utility or competitive telecommunications provider from entering into exclusive agreement to provide local exchange telecommunications service in certain circumstances. 4