OFFICE OF THE SECRETARY OF STATE ARCHIVES DIVISION BEV CLARNO STEPHANIE CLARK SECRETARY OF STATE DIRECTOR
JEFF MORGAN 800 SUMMER STREET NE INTERIM DEPUTY SECRETARY OF STATE SALEM, OR 97310 503-373-0701
NOTICE OF PROPOSED RULEMAKING INCLUDING STATEMENT OF NEED & FISCAL IMPACT FILED 10/29/2020 2:31 PM CHAPTER 150 ARCHIVES DIVISION DEPARTMENT OF REVENUE SECRETARY OF STATE
FILING CAPTION: Increased amusement device tax not imposed on device disabled and remaining at operator’s premises.
LAST DAY AND TIME TO OFFER COMMENT TO AGENCY: 11/24/2020 5:00 PM The Agency requests public comment on whether other options should be considered for achieving the rule's substantive goals while reducing negative economic impact of the rule on business.
CONTACT: Katie Thiel 955 Center Street NE Filed By: 503-949-9285 Salem,OR 97301 Katie Thiel RulesCoordinator.dor@oregon.gov Rules Coordinator
HEARING(S) Auxilary aids for persons with disabilities are available upon advance request. Notify the contact listed above. DATE: 11/24/2020 TIME: 9:00 AM - 11:00 AM OFFICER: Katie Thiel ADDRESS: Remote Hearing - Video/Conference Call 955 Center Street NE Salem, OR 97301 SPECIAL INSTRUCTIONS: Updated with new meeting details only: Join ZoomGov Meeting https://www.zoomgov.com/j/1615325 808
Dial by your location +1 669 254 5252 US (San Jose) +1 646 828 7666 US (New York) Meeting ID: 161 532 5808 Passcode: 509506 Find your local number: https://www.zoomgov.com/u/aeodkVk guH
NEED FOR THE RULE(S):
Page 1 of 3 Replacing the temporary rule with this permanent rule with the same language will permanently provide guidance to Oregon Lottery for accurate imposition and collection of the increased tax.
DOCUMENTS RELIED UPON, AND WHERE THEY ARE AVAILABLE:
Oregon Revised Statute 320.012, available online through Legislative Counsel.
FISCAL AND ECONOMIC IMPACT:
There is no fiscal or economic impact resulting from the adoption of the permanent rule. The permanent rule mirrors the temporary rule and decreases the amount of collections necessary for disabled machines. As there are only 130 video lottery operators and disabled machines are few in number at any given time, any economic impact from the loss of this revenue will be minimal (approximately $17,250 total).
COST OF COMPLIANCE: (1) Identify any state agencies, units of local government, and members of the public likely to be economically affected by the rule(s). (2) Effect on Small Businesses: (a) Estimate the number and type of small businesses subject to the rule(s); (b) Describe the expected reporting, recordkeeping and administrative activities and cost required to comply with the rule(s); (c) Estimate the cost of professional services, equipment supplies, labor and increased administration required to comply with the rule(s).
(1) There generally is no impact to state agencies, local governments, and the public. This rule does not impact those groups, except to provide guidance to Oregon State Lottery and video lottery terminal operators about the scope of the statute. (2)(a) Oregon has approximately 2,200 business locations with video lottery terminals that are subject to the amusement device tax. These businesses are primarily restaurants and bars that are small businesses. (b) There are no new recordkeeping requirements included in the permanent rule. There are no costs to comply with the permanent rule. (c) None known.
DESCRIBE HOW SMALL BUSINESSES WERE INVOLVED IN THE DEVELOPMENT OF THESE RULE(S):
We communicated with and are working with small business liaison groups such as the Oregon State Bar Laws Committee and the Oregon Society of Certified Public Accountants to obtain their input into how these rules will impact their clients, some of whom are small businesses.
WAS AN ADMINISTRATIVE RULE ADVISORY COMMITTEE CONSULTED? NO IF NOT, WHY NOT?
The Department of Revenue did not use a formal Advisory Committee for these rules; however, we did seek and receive input from groups of industry representatives. No Administrative Rule Advisory Committee was consulted because the above groups were contacted and they have the interest and expertise necessary to provide adequate feedback on the proposed rules; therefore a committee is unlikely to provide further benefit.
ADOPT: 150-320-0012
RULE SUMMARY: Corrected filing - updated hearing information only. This rule clarifies the increased amusement device tax is imposed on each device present when net receipts exceed statutory thresholds. Devices that are disabled by Oregon Lottery are not considered present for purposes of the increased tax. Make the temporary rule permanent.
CHANGES TO RULE:
150-320-0012
Page 2 of 3 Location of Amusement Devices (1) For purposes of the increased tax on amusement devices imposed under ORS 320.012, the increased tax is imposed for each device present at a location as of the date the applicable net receipts threshold is reached under either ORS 320.012(1) or (2).¶ (2) A video lottery game terminal that is not operating because the terminal has been disabled for consumer play by the Oregon Lottery and that has not been removed by Oregon Lottery from the amusement device operator's premises is not considered "present at a location" for purposes of the increased tax imposed under ORS 320.012. ¶ (3) This rule applies to increased taxes that become due on or after April 1, 2020. Statutory/Other Authority: ORS 305.100, 320.012, 320.110 Statutes/Other Implemented: ORS 320.012
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