HB 2131: DOR Tax Enforcement Authority – SUPPORT
Testimony for the House Revenue Committee – Josie Koehne – 2.8.2021
Madam Chair and Members of the Committee:
Tax Fairness Oregon is a network of volunteers who support a rational and equitable tax code that assures adequate revenue to meet Oregon’s needs.
We were surprised to learn that the Department of Revenue currently does not have adequate authority to collect certain kinds of tax revenues that are owed to the State. This DOR bill, HB 2131, allows DOR to hold the designated company owner or official personally responsible and liable for failing to remit the taxes and fees collected from the public, but not remitted to the State. This includes fees collected by companies that rent heavy equipment (in lieu of property taxes), regional lodging taxes, 911 taxes for the Office of Emergency Management and the petroleum load fee for hazardous waste. These taxes and fees are paid by consumers and customers to pay for needed services. DOR reports that the current uncollected total is $900,000 in delinquent taxes that are due quarterly. The individual can contest their personal liability either through the Department of Revenue or through the Tax Court system.
Tax Fairness Oregon thinks the Department of Revenue needs this authority to enhance its enforcement powers and to preserve a fair and level playing field for those who are already properly remitting their fee and tax collections to the state, as Rep. Greg Smith has so clearly pointed out.
Please vote YES on HB 2131 to ensure current and future tax revenue is protected from abuse by those who ignore their responsibilities to consumers and customers who pay their fees upfront for the services provided by local jurisdictions.