Estimates by Legislative Revenue Officer; reports; adjustment of rates

(1)(a) As soon as practicable, the Legislative Revenue Officer, after consultation with the Department of Revenue, shall prepare estimates of projected use by taxpayers of the reduced rates provided in ORS 316.043 (2). The estimates shall include the projected use of the reduced rates in tax years beginning on or after January 1, 2015, and before January 1, 2017, and in tax years beginning on or after January 1, 2019, and before January 1, 2021. The estimates shall express as a ratio the revenue loss anticipated as a result of the reduced rates of taxation in ORS 316.043 (2), divided by projected total income in this state, for those tax years. (b) Not later than July 1, 2018, the Legislative Revenue Officer shall report to an interim committee of the Legislative Assembly related to revenue regarding the use of the reduced rates provided in ORS 316.043 (2). The report shall express as a ratio, for tax years beginning on or after January 1, 2015, and before January 1, 2017, the actual revenue loss resulting from the allowance of reduced rates of taxation provided in ORS 316.043 (2) divided by actual total income in this state for those tax years. If the ratio exceeds the ratio calculated under paragraph (a) of this subsection by more than 15 percent, the rates listed in ORS 316.043 (2) shall be proportionately adjusted to achieve a ratio of approximately 105 percent of the ratio calculated in subsection (1)(a) of this section for tax years beginning on or after January 1, 2015, and before January 1, 2017, but may in no event exceed 9.9 percent of taxable income or be reduced to less than the original rate provided in ORS 316.043 (2). (c) The adjusted rates provided under paragraph (b) of this subsection shall apply to tax years beginning on or after January 1, 2019. (2)(a) Not later than July 1, 2022, the Legislative Revenue Officer shall report to an interim committee of the Legislative Assembly related to revenue regarding the use of the reduced rates provided in ORS 316.043 (2). The report shall express as a ratio, for tax years beginning on or after January 1, 2019, and before January 1, 2021, the actual revenue loss resulting from the allowance of reduced rates of taxation provided in ORS 316.043 (2) divided by actual total income in this state for those tax years. If the ratio exceeds the ratio included in the estimate required under subsection (1)(a) of this section for tax years beginning on or after January 1, 2019, and before January 1, 2021, by more than 25 percent, the rates listed in ORS 316.043 (2) shall be proportionately adjusted to achieve a ratio of approximately 115 percent of the ratio calculated in subsection (1)(a) of this section for tax years beginning on or after January 1, 2019, and before January 1, 2021. If the ratio is less than 75 percent of the ratio included in the estimate required under subsection (1)(a) of this section for tax years beginning on or after January 1, 2019, and before January 1, 2021, the rates listed in ORS 316.043 (2) shall be proportionately adjusted to achieve a ratio of approximately 85 percent of the ratio calculated in subsection (1)(a) of this section for tax years beginning on or after January 1, 2019, and before January 1, 2021. The adjusted rates under this subsection may in no event exceed 9.9 percent of taxable income or be reduced to lower than the original rate provided in ORS 316.043 (2). (b) The adjusted rates provided under paragraph (a) of this subsection shall apply to tax years beginning on or after January 1, 2023.