2007 Oregon Code - Chapter 285c :: Chapter 285C - Economic Development III
Chapter 285C
— Economic Development III
2007 EDITION
ECONOMIC DEVELOPMENT III
ECONOMIC DEVELOPMENT
ENTERPRISE ZONES
(Short Title)
285C.045Â Short
title
(Definitions)
285C.050Â Definitions
for ORS 285C.050 to 285C.250
(Findings)
285C.055Â Legislative
findings
(Duties of Economic and Community Development
Department)
285C.060Â Duties
of department; rules
(Creation of Enterprise Zone)
285C.065Â Application
for designation as enterprise zone; consent of governing body; contents
285C.066Â City,
county or port consent; rules
285C.067Â Consultation
with local taxing districts; rules
285C.068Â Port
cosponsorship of zones
285C.070Â Election
to permit hotels, motels or destination resorts as eligible business firms;
procedures; election revocation
285C.075Â Review
of application by department; designation approval; reapplication upon denial
285C.080Â Limitation
on number of zones
285C.085Â Federal
enterprise zones
285C.090Â Requirements
for area to be designated zone; exception
(Electronic Commerce)
285C.095Â Designation
for electronic commerce; application; revocation
285C.100Â Alternative
designation of city for electronic commerce
(Management of Enterprise Zone)
285C.105Â Duties
of zone sponsor
285C.110Â Availability
of public property
285C.115Â Change
of zone boundaries
285C.120Â Zone
boundary change restrictions when county ceases to be sparsely populated;
waiver of distance limitations; rules
(Duties of Property Tax Administrators)
285C.125Â Duties
of Department of Revenue; rules
285C.130Â Duties
of county assessor
(Eligible Business Firms)
285C.135Â Requirements
for eligibility
(Authorization)
285C.140Â Application
for authorization; contents; filing fee; consultation; approval; appeal; late
filing
285C.145Â Leasing
existing property to authorized firm; failure to timely file for authorization;
certain records exempt from disclosure
285C.150Â Conditions
required by sponsor for authorization; reports
285C.155Â Minimum
employment and other requirements for authorization
285C.160Â Agreement
between firm and sponsor for additional period of exemption; requirements
285C.165Â Extension
of period of authorization; filing fee
(Exemptions)
285C.170Â Construction-in-process
exemption
285C.175Â Enterprise
zone exemption; requirements; duration
(Qualified Property)
285C.180Â Qualified
property generally
285C.185Â Minimum
cost of qualified property; leased property; hotel, motel or destination resort
property; electronic commerce property
285C.190Â Requirements
for qualifying reconditioned, refurbished, retrofitted or upgraded property
285C.195Â Alternative
requirements for qualifying reconditioned, refurbished, retrofitted or upgraded
property
(Firm and Employment Qualifications)
285C.200Â Qualifications
of business firm; rules
285C.205Â Effect
of productivity increases on qualification of certain firms; uses of tax
savings
285C.210Â Substantial
curtailment of business operations
285C.215Â First-source
hiring agreements; rules
(Exemption Claim and Verification Procedures)
285C.220Â Exemption
claims; contents; late filing; fees
285C.225Â SponsorÂ’s
addendum; property schedule; amendments
285C.230Â Assessor
to grant or deny exemption; assistance of sponsor
285C.235Â Authority
of county assessor; authority of sponsor
(Disqualification From Exemption)
285C.240Â Disqualification;
notice and procedures; in lieu payments and additional taxes; penalty; use of
moneys
(Termination of Enterprise Zone)
285C.245Â Termination;
effect of termination on property; procedures
285C.250Â Designation
of new zone following zone termination
(Sunset Date)
285C.255Â Sunset
of enterprise zone program
RESERVATION ENTERPRISE ZONES
285C.300Â Definitions
for ORS 285C.300 to 285C.320
285C.303Â Legislative
findings
285C.306Â Reservation
enterprise zones
285C.309Â Income
tax credit for new business facility in reservation enterprise zone
285C.320Â Status
of reservation enterprise zone; sponsor
RURAL RENEWABLE ENERGY DEVELOPMENT ZONES
285C.350Â Definitions
for ORS 285C.350 to 285C.370
285C.353Â Designation
of rural renewable energy development zones; requirements; multiple
designations; zone sponsor
285C.356Â Application
for authorization
285C.359Â Qualified
property
285C.362Â Exemption;
requirements; duration
285C.365Â Application
of enterprise zone laws
285C.370Â Rules
LONG TERM TAX INCENTIVES FOR RURAL ENTERPRISE
ZONES
285C.400Â Definitions
for ORS 285C.400 to 285C.420
285C.403Â Certification
of business firm; application; review; appeal
285C.406Â Claiming
property tax exemption or income tax credit
285C.409Â Property
tax exemption; requirements; duration
285C.412Â Conditions
for continued exemption
285C.415Â Notice
to county assessor
285C.420Â Disqualification;
exception; additional taxes
BUSINESS DEVELOPMENT INCOME TAX EXEMPTION
285C.495Â Short
title
285C.500Â Definitions
for ORS 285C.500 to 285C.506
285C.503Â Preliminary
certification of facility; application; fee; review; appeal
285C.506Â Annual
certification of facility; application; fee; review; appeal; duration of
certification
ADVANCED TELECOMMUNICATIONS FACILITIES INCOME
TAX CREDIT
285C.530Â Definitions
for ORS 285C.530 and 285C.533; tax credit certification; application; rules;
fees
285C.533Â Performance
standards for advanced telecommunications facilities; rules
STRATEGIC INVESTMENT PROGRAM
(Generally)
285C.600Â Definitions
for ORS 285C.600 to 285C.626
285C.603Â Purpose
285C.606Â Determination
of projects for tax exemption; limitations; revenue bond financing;
first-source hiring agreements
285C.609Â Request
by county; community services fee agreement; distribution of fee proceeds
285C.612Â Eligible
project application fees
285C.615Â Annual
participant reports; penalty; disclosure; rules
285C.620Â Confidentiality
of project information
(Strategic Investment Zones)
285C.623Â Strategic
investment zones; establishment; fees
285C.626Â Business
firm application for project within strategic investment zone
(Shared Services Fund)
285C.635Â Determination
of personal income tax revenue; transfer to Shared Services Fund; rules
285C.639Â Shared
Services Fund
     Note: 285A.010 contains definitions for ORS
chapter 285C.
ENTERPRISE
ZONES
(Short Title)
     285C.045
Short title. ORS 285C.050 to
285C.250 shall be known and may be cited as the Oregon Enterprise Zone Act. [Formerly
285C.260]
     Note: Section 5, chapter 888, Oregon Laws 2007,
provides:
     Sec.
5. (1) Prior to February 1,
2009, the Legislative Revenue Officer shall file with the Seventy-fifth
Legislative Assembly a report that evaluates the performance of enterprise
zones and related tax incentives under ORS 285C.050 to 285C.250.
     (2) The interim legislative committee of
the House of Representatives on revenue or other appropriate interim committee
of the House of Representatives on revenue or economic development shall
evaluate the enterprise zones and related tax incentives. The evaluation of the
enterprise zone program may include, but is not limited to, evaluations of:
     (a) The cost-benefit analysis of the
effects on the state and local economy, public finance and services and other
matters associated with actual business firms receiving the incentives,
including but not limited to assessing the degree to which the incentives are
significantly affecting investments and employment in the enterprise zones; and
     (b) The statistical change in measures of
local economic hardship over time for communities associated with enterprise
zones. [2007 c.888 §5]
(Definitions)
     285C.050
Definitions for ORS 285C.050 to 285C.250. As used in ORS 285C.050 to 285C.250, unless the context requires
otherwise:
     (1) “Assessment date” and “assessment year”
have the meanings given those terms in ORS 308.007.
     (2) “Authorized business firm” means an
eligible business firm that has been authorized under ORS 285C.140.
     (3) “Business firm” means a person
operating or conducting one or more trades or businesses, a peopleÂ’s utility
district organized under ORS chapter 261 or a joint operating agency formed
under ORS chapter 262, but does not include any other governmental agency,
municipal corporation or nonprofit corporation.
     (4) “County average annual wage” means:
     (a) The most recently available average
annual covered payroll for the county in which the enterprise zone is located,
as determined by the Employment Department; or
     (b) If the enterprise zone is located in
more than one county, the highest county average annual wage as determined
under paragraph (a) of this subsection.
     (5) “Electronic commerce” means engaging
in commercial or retail transactions predominantly over the Internet or a
computer network, utilizing the Internet as a platform for transacting
business, or facilitating the use of the Internet by other persons for business
transactions, and may be further defined by the Economic and Community
Development Department by rule.
     (6) “Eligible business firm” means a firm
engaged in an activity described under ORS 285C.135 that may file an
application for authorization under ORS 285C.140.
     (7) “Employee” means a person who works
more than 32 hours per week, but does not include a person with a temporary or
seasonal job or a person hired solely to construct qualified property.
     (8) “Enterprise zone” means one of the 30
areas designated or terminated and redesignated by order of the Governor under
ORS 284.160 (1987 Replacement Part) before October 3, 1989, one of the areas
designated by the Director of the Economic and Community Development Department
under ORS 285C.080, a federal enterprise zone area designated under ORS
285C.085, an area designated under ORS 285C.250 or a reservation enterprise
zone designated under ORS 285C.306.
     (9) “Federal enterprise zone” means any
discrete area wholly or partially within this state that is designated as an
empowerment zone, an enterprise community, a renewal community or some similar
designation for purposes of improving the economic and community development of
the area.
     (10) “First-source hiring agreement” means
an agreement between an authorized business firm and a publicly funded job
training provider whereby the provider refers qualified candidates to the firm
for new jobs and job openings in the firm.
     (11) “In service” means being used or
occupied or fully ready for use or occupancy for commercial purposes consistent
with the intended operations of the business firm as described in the
application for authorization.
     (12) “Modification” means modernization,
renovation or remodeling of an existing building, structure or real property
machinery or equipment.
     (13) “New employees hired by the firm”:
     (a) Includes only those employees of an
authorized business firm engaged for a majority of their time in eligible
operations.
     (b) Does not include individuals employed
in a job or position that:
     (A) Is created and first filled after
December 31 of the first tax year in which qualified property of the firm is
exempt under ORS 285C.175;
     (B) Existed prior to the submission of the
relevant application for authorization; or
     (C) Is performed primarily at a location
outside of the enterprise zone.
     (14) “Publicly funded job training
provider” includes but is not limited to a community college, a service
provider under the federal Workforce Investment Act Title I-B (29 U.S.C. 2801
et seq.), or a similar program.
     (15) “Qualified business firm” means a
business firm described in ORS 285C.200, the qualified property of which is
exempt from property tax under ORS 285C.175.
     (16) “Qualified property” means property
described under ORS 285C.180.
     (17) “Rural enterprise zone” means:
     (a) An enterprise zone located in an area
of this state in which an urban enterprise zone could not be located; or
     (b) A reservation enterprise zone
designated under ORS 285C.306.
     (18) “Sparsely populated county” means a
county with a density of 100 or fewer persons per square mile, based on the
most recently available population figure for the county from the Portland
State University Population Research Center.
     (19) “Sponsor” means:
     (a) The city, county or port, or any
combination of cities, counties or ports, that received approval of an
enterprise zone under ORS 284.150 and 284.160 (1987 Replacement Part), under
ORS 285C.065 and 285C.075, under ORS 285C.085 or under ORS 285C.250;
     (b) The tribal government, in the case of
a reservation enterprise zone; or
     (c) A city, county or port that joined the
enterprise zone through a boundary change under ORS 285C.115 (7) or a port that
joined the enterprise zone under ORS 285C.068.
     (20) “Tax year” has the meaning given that
term in ORS 308.007.
     (21) “Urban enterprise zone” means an
enterprise zone in a metropolitan statistical area, as defined by the most
recent federal decennial census, that is located inside a regional or
metropolitan urban growth boundary.
     (22) “Year” has the meaning given that
term in ORS 308.007. [Formerly 285B.650; 2005 c.94 §2; 2005 c.704 §1; 2007 c.71
§84; 2007 c.895 §16]
(Findings)
     285C.055
Legislative findings. The
Legislative Assembly finds and declares that the health, safety and welfare of
the people of this state are dependent upon the continued encouragement,
development, growth and expansion of employment, business, industry and
commerce throughout all regions of the state, but especially in those
communities at the center of or outside major metropolitan areas for which
geography may act as an economic hindrance. The Legislative Assembly further
declares that there are areas in the state that need the particular attention
of government to help attract private business investment into these areas and
to help resident businesses to reinvest and grow and that many local
governments wish to have tax incentives and other assistance available to
stimulate sound business investments that support and improve the quality of
life. Therefore, it is declared to be the purpose of ORS 285C.050 to 285C.250
to stimulate and protect economic success in such areas of the state by
providing tax incentives for employment, business, industry and commerce and by
providing adequate levels of complementary assistance to community strategies
for such interrelated goals as environmental protection, growth management and
efficient infrastructure. [Formerly 285B.665]
(Duties of
Economic and Community Development Department)
     285C.060
Duties of department; rules.
In addition to any other powers granted by law, for the purpose of
administering ORS 285C.050 to 285C.250, the Economic and Community Development
Department shall:
     (1) Adopt any rules the department considers
necessary to administer ORS 285C.050 to 285C.250.
     (2) Assist a sponsor of an enterprise zone
in its efforts to retain, expand, start or recruit eligible business firms.
     (3) Assist an eligible business firm doing
business within an enterprise zone to obtain the benefits of applicable
incentive or inducement programs authorized by
     (4) Take action necessary to participate
in the federal enterprise zone program pursuant to ORS 285C.085.
     (5) Process sponsor requests for boundary
amendments under ORS 285C.115.
     (6) Take action necessary to terminate or
designate zones under ORS 285C.245 or 285C.250.
     (7) Assist in implementing first-source
hiring agreements by publicly funded job training providers with authorized
business firms and in ensuring compliance with business firm eligibility
requirements and with provisions addressing the avoidance of job losses outside
of enterprise zones. [Formerly 285B.668]
(Creation of
Enterprise Zone)
     285C.065
Application for designation as enterprise zone; consent of governing body;
contents. (1) Any city,
county or port may apply to the Director of the Economic and Community
Development Department for designation of an area within that city, county or
port as an enterprise zone. A port shall obtain the consent of the governing
body of the county prior to applying to the Economic and Community Development
Department for designation of an area as an enterprise zone. With the prior
consent of the governing body of the city or port, a county may apply to the department
on behalf of a city or port for designation of any area within that city or
port as an enterprise zone. With the prior consent of the governing body of a
city, a port may apply to the department on behalf of a city for designation of
any area that is wholly or partially shared territory of both the port and city
as an enterprise zone. With the prior consent of the governing body of a port,
a city may apply to the department on behalf of a port for designation of any
area that is wholly or partially shared territory of both the city and port as
an enterprise zone.
     (2) One or more cities, counties and ports
may apply to the director for designation of an area situated partly within
each city and partly in unincorporated territory within the counties or ports
as an enterprise zone.
     (3) An application for designation of an
enterprise zone shall be in the form and contain such information as the
department, by rule, may require. However, the application shall:
     (a) Be submitted on behalf of one or more
local government units as described in subsections (1) and (2) of this section
by resolution of the governing body of each applicant;
     (b) Contain a description of the area
sought to be designated as an enterprise zone;
     (c) Contain information sufficient to
allow the department to determine if the criteria established in ORS 285C.090
are met;
     (d) State that the applicant will give
priority to the use in the proposed enterprise zone of any economic development
or job training funds received from the federal government; and
     (e) Declare that the applicant will comply
with ORS 285C.105 and perform any other duties of the sponsor under ORS
285C.050 to 285C.250.
     (4) When applying for designation of an
enterprise zone within its boundaries under this section, the applicant may
include in the application:
     (a) Proposals to enhance the level or
efficiency of local public services within the proposed enterprise zone
including, but not limited to, fire-fighting and police services; and
     (b) Proposals for local incentives and
local regulatory flexibility to authorized business firms.
     (5) In the case of joint applications by
more than one local government unit, each city, county or port joining in the
application may include proposals for enhanced local public services, local
incentives or local regulatory flexibility to be effective within the
boundaries of that local government unit.
     (6) Proposals under subsection (4) or (5)
of this section for enhanced local public services, local incentives or local
regulatory flexibility included in the application by a city, county or port
for an enterprise zone are binding upon the city, county or port if an
enterprise zone is designated wholly or partly within its boundaries. [Formerly
285B.656; 2005 c.704 §4]
     285C.066
City, county or port consent; rules. The Economic and Community Development Department may adopt rules
related to the consent required from a city, county or port under ORS 285C.065
in order for a city, county or port to apply for enterprise zone designation under
ORS 285C.065. [2005 c.704 §5]
     Note: 285C.066 and 285C.067 were enacted into law
by the Legislative Assembly but were not added to or made a part of ORS chapter
285C or any series therein by legislative action. See Preface to Oregon Revised
Statutes for further explanation.
     285C.067
Consultation with local taxing districts; rules. (1) A city, county or port that seeks to
apply to the Director of the Economic and Community Development Department for
enterprise zone designation under ORS 285C.065 shall consult with all local
taxing districts with territory in the proposed zone prior to filing the
application.
     (2) The Economic and Community Development
Department may adopt rules on the consultations required under subsection (1)
of this section and procedures related to the consultations. [2005 c.704 §6]
     Note: See note under 285C.066.
    Â
     (a) A copy of the resolution of the
governing body of the port approving the request for designation as cosponsor
of the enterprise zone;
     (b) A copy of the resolution of the
governing body of each current sponsor of the enterprise zone approving the
addition of the port as a cosponsor; and
     (c) Other information required by the
department.
     (2) The department shall review the
request for addition of the port as a cosponsor of the enterprise zone. If the
request is incomplete or does not satisfy the requirements of this section, the
department shall seek additional information as necessary or shall return the
request to the port. If the request is returned, the port may submit a revised
request at any time. If the request is complete and does satisfy the
requirements of this section, the Director of the Economic and Community
Development Department shall approve the request.
     (3) The addition of a port as a cosponsor
of an existing enterprise zone under this section does not change the
termination date of the enterprise zone under ORS 285C.245 (2). [2005 c.704 §14]
     285C.070
Election to permit hotels, motels or destination resorts as eligible business
firms; procedures; election revocation. (1) The governing body of a city or county that is seeking enterprise
zone designation under ORS 285C.065 may elect to permit a business firm
operating a hotel, motel or destination resort to be an eligible business firm
with respect to those operations.
     (2) The election must be made at the time
the application for zone designation under ORS 285C.065 is made or any time
thereafter and before the expiration of six months following the date the zone
is designated.
     (3) The election shall be made by a
resolution adopted by the city or county governing body. In order for the
election to be effective, the resolution must be submitted to the Economic and
Community Development Department and acknowledged by the department.
     (4)(a) If more than one city or county is
to be the sponsor, the resolution making the election may restrict the area in
which a hotel, motel or destination resort may be located in order for the firm
to be an eligible business firm with respect to those operations.
     (b) The resolution making the restriction
described in paragraph (a) of this subsection may only restrict the area of the
zone in which a hotel, motel or destination resort may be located to that area
of the zone that is located:
     (A) Within the boundaries of one or more
cities in favor of hotel, motel and destination resort exemption, if the county
is not in favor of hotel, motel and destination resort exemption;
     (B) Within the unincorporated territory of
a county in favor of hotel, motel and destination resort exemption, if one or
more cities are not in favor of hotel, motel and destination resort exemption;
or
     (C) Within the shared territory of a city
and county in favor of hotel, motel and destination resort exemption and the
unincorporated territory of the county, if one or more other cities are not in
favor of hotel, motel and destination resort exemption.
     (c) If a restriction is made under this
subsection, the restriction may be modified at any time within six months of
the date the zone is designated, but may not be modified at any time
thereafter.
     (5) The sponsor may by resolution revoke
an election made under this section. If an election is revoked, the sponsor may
not make another election under this section. [2003 c.662 §17]
     285C.075
Review of application by department; designation approval; reapplication upon
denial. (1) The Economic and
Community Development Department shall review each application for designation
of an enterprise zone, and shall secure any additional information that the
department considers necessary for the purpose of determining whether the area
described in the application qualifies for designation as an enterprise zone.
     (2) The department shall complete review
of the application within 60 days of the last date designated for receipt of an
application. After review of the applications, the department shall forward
those qualified applications to the Director of the Economic and Community
Development Department. The director shall determine which applications have
the greatest potential for accomplishing the purposes of ORS 285C.050 to
285C.250.
     (3) As authorized under ORS 285C.080 or
285C.250, the director may approve the designation of one or more enterprise
zones. The determination by the director as to the areas designated enterprise
zones shall be final.
     (4) If an application for enterprise zone
designation is denied, the governing body of the cities, counties or ports
submitting the application shall be informed of that fact together with the
reasons for the denial. Cities, counties or ports may reapply to the department
for designation of an area as an enterprise zone. [Formerly 285B.659; 2005
c.704 §7]
     285C.080
Limitation on number of zones.
(1) As provided in ORS 285C.065 and 285C.075, the Director of the Economic and
Community Development Department may approve the designation of:
     (a) Up to 17 areas as rural enterprise
zones; and
     (b) Up to 10 areas as urban or rural
enterprise zones.
     (2) Areas designated as enterprise zones
under this section shall be in addition to the 30 areas designated or
redesignated as enterprise zones by order of the Governor under ORS 284.160
(1987 Replacement Part) before October 3, 1989, areas redesignated under ORS
285C.250, areas designated under ORS 285C.085 and areas designated under ORS
285C.306. [Formerly 285B.653; 2005 c.704 §§2,2a]
     285C.085
Federal enterprise zones.
(1) The Economic and Community Development Department shall be the lead agency
for state participation in a federal enterprise zone program. The Director of
the Economic and Community Development Department may take action necessary for
such participation to the extent allowed by state law.
     (2) Any area designated as a federal
enterprise zone by an agency of the federal government may be designated as a
state enterprise zone by the director at the request of a city, county or port
within whose jurisdiction some or all of the federal enterprise zone is
located, without regard to any limitation contained in ORS 285C.090.
     (3) The boundary of an existing state
enterprise zone may be amended by the director at the request of the sponsor to
include the entire area of a federal enterprise zone without regard to ORS
285C.115 (2). A change in the boundary of an existing state enterprise zone
under this subsection does not change the termination date of the enterprise
zone under ORS 285C.245 (2).
     (4) A request by a city, county or port
under subsection (2) or (3) of this section shall be in such form and include
such information as required by the department, but the request must:
     (a) Include a resolution adopted by the
governing body of the city, county or port; and
     (b) Provide that all areas within both the
federal enterprise zone and the city, county or port are included in a state
enterprise zone.
     (5) The termination under federal law of a
federal enterprise zone does not affect the existence or dimensions of a state
enterprise zone, except when, as determined by the director, the termination is
for nonperformance or for violations of federal guidelines. [Formerly 285B.677;
2005 c.704 §8]
     285C.090
Requirements for area to be designated zone; exception. (1) A proposed enterprise zone must be
located in a local area in which:
     (a) Fifty percent or more of the
households have incomes below 80 percent of the median income of this state, as
defined by the most recent federal decennial census;
     (b) The unemployment rate is at least 2.0
percentage points greater than the comparable unemployment rate for this entire
state, as defined by the most recently available data published or officially
provided and verified by the United States Government, the Employment
Department of this state, the Portland State University Population Research
Center or special studies conducted under a contract with a regional academic
institution; or
     (c) The Economic and Community Development
Department determines on a case-by-case basis using evidence provided by the
cities, counties or ports applying for designation of the proposed enterprise
zone that there exists a level of economic hardship at least as severe as that
described in paragraph (a) or (b) of this subsection. The evidence shall be
based on the most recently available data from official sources and may
include, but is not limited to, a contemporary decline of the population in the
proposed enterprise zone, the percentage of persons in the proposed enterprise
zone below the poverty level relative to the percentage of the entire
population of this state below the poverty level or the unemployment rate for
the county or counties in which the proposed enterprise zone is located.
     (2) An enterprise zone must consist of a
total area of not more than 12 square miles in size. The area of the zone shall
be calculated by excluding that portion of the zone that lies below the
ordinary high water mark of a navigable body of water.
     (3) Except as provided in subsection (4)
of this section:
     (a) An enterprise zone must have 12 miles
or less as the greatest distance between any two points within the zone; and
     (b) Unconnected areas of an enterprise
zone may not be more than five miles apart.
     (4) Unconnected areas of a rural
enterprise zone may not be more than 15 miles apart when an unconnected area is
entirely within a sparsely populated county, and the zone:
     (a) Must have 20 miles or less as the
greatest distance between any two points within the zone, if only a portion of
the zone is contained within a sparsely populated county; or
     (b) Must have 25 miles or less as the
greatest distance between any two points within the zone, if the zone is
entirely contained within a sparsely populated county.
     (5) This section does not apply to the
designation or redesignation of a reservation enterprise zone. [Formerly
285B.662; 2005 c.94 §4; 2005 c.704 §9; 2007 c.71 §85]
(Electronic
Commerce)
     285C.095
Designation for electronic commerce; application; revocation. (1) A sponsor of an existing enterprise zone
may seek to have the zone designated for electronic commerce under this
section.
     (2) The sponsor shall file an application
to have the zone designated for electronic commerce with the Economic and
Community Development Department. The application shall be in the form and
contain the information that the department by rule may require.
     (3) The application shall be accompanied
by a copy of a resolution, adopted by the governing body of the sponsor,
requesting that the zone be designated for electronic commerce.
     (4) The department shall review
applications for electronic commerce designation and shall approve no more than
10 zones for electronic commerce designation.
     (5) The sponsor may by resolution revoke
an electronic commerce designation made under this section. If an election is
revoked, the sponsor may not subsequently seek reinstatement of electronic
commerce designation. [Formerly 285B.672; 2005 c.667 §1]
     285C.100
Alternative designation of city for electronic commerce. (1) Notwithstanding ORS 285C.095, a city
shall be designated for electronic commerce if the city:
     (a) By resolution of the governing body of
the city, declares itself a city designated for electronic commerce;
     (b) As of January 1, 2002, has a
population of more than 1,500 but less than 2,000;
     (c) Is located less than 25 miles from a
city with a population of more than 500,000; and
     (d) Is located less than 10 miles from a
city with a high concentration of high technology firms and with a population
that, as of January 1, 2002, does not exceed 85,000.
     (2) Only one city may be designated for
electronic commerce under this section, and that designation shall be made
without consideration of the numeric limitations imposed by ORS 285C.095.
     (3)(a) A city does not need to sponsor an
enterprise zone to be designated for electronic commerce under this section.
     (b) The governing body of a city
designated for electronic commerce under this section does not have to comply
with the requirements of ORS 285C.090, but the governing body must take all
actions that are required of a sponsor of a rural enterprise zone under ORS
285C.050 to 285C.250 with respect to business firms seeking exemption under ORS
285C.175.
     (c) A business firm that is engaged in
electronic commerce at a location inside a city designated for electronic
commerce under this section and that seeks an exemption under ORS 285C.175 must
take all actions required of a qualified business firm under ORS 285C.050 to
285C.250, except that the business firm does not need to be located within an
enterprise zone.
     (d) A business firm described in paragraph
(c) of this subsection:
     (A) Shall be an eligible business firm,
the qualified property of which is exempt from taxation under ORS 285C.175 as
if the qualified property were located in an enterprise zone under ORS
285C.095; and
     (B) May claim the tax credit under ORS
315.507.
     (4) For the purpose of determining the
boundaries of a city designated for electronic commerce, “city” includes:
     (a) Territory that is annexed into the
city, as of the date of the annexation;
     (b) Land within the urban growth boundary
of the city; and
     (c) Territory that is added to the urban
growth boundary described in paragraph (b) of this subsection, as of the date
the urban growth boundary is extended to such territory. [Formerly 285B.673;
2005 c.94 §5]
(Management
of Enterprise Zone)
     285C.105
Duties of zone sponsor. (1)
The sponsor of an enterprise zone shall:
     (a) Appoint a local zone manager. Upon
appointment of the local zone manager, the sponsor shall provide written notice
thereof to the Economic and Community Development Department, the county
assessor and the Department of Revenue.
     (b) Provide enhanced local public
services, local incentives and local regulatory flexibility included in the
application for designation of the enterprise zone or in the resolution under
ORS 285C.115 (7) to authorized or qualified business firms and assist
authorized or qualified business firms in using enhanced local public services,
local incentives and local regulatory flexibility.
     (c) Review and approve or deny
applications for authorization under ORS 285C.140.
     (d) Assist the county assessor in
administering the property tax exemption and in performing other duties
assigned to the assessor under ORS 285C.050 to 285C.250.
     (e) Maintain, implement and periodically
update a plan for marketing the enterprise zone including strategies for
retention, expansion, start-up and recruitment of eligible business firms.
     (f) Manage the enterprise zone in
accordance with ORS 285C.050 to 285C.250.
     (g) Identify property available for sale
or lease to eligible business firms under ORS 285C.110.
     (h) Prepare indices of street addresses,
tax lot numbers or other information to facilitate the identification of land
inside of an urban enterprise zone.
     (i) Provide written notice to the county
assessor, the Department of Revenue, the Economic and Community Development
Department and any relevant publicly funded job training provider of the
conditions and policies adopted or normally sought by the sponsor under ORS
285C.150, 285C.155 or 285C.160 and take the actions necessary to implement and
enforce the conditions and policies and any other reasonable requirements
imposed pursuant to ORS 285C.155 or 285C.160.
     (j) Conduct, or assist in conducting,
annual reporting of enterprise zone activity or effort, if requested by the
county assessor or the Economic and Community Development Department.
     (2) If more than one city, county or port
sponsors an enterprise zone, the jurisdictions shall act jointly in performing
the duties imposed on a sponsor under ORS 285C.050 to 285C.250. [Formerly
285B.671; 2005 c.704 §10]
     285C.110
Availability of public property. Subject to the requirements of the Oregon Constitution or any other
applicable law, the State of Oregon and municipal corporations that own any
real property within an enterprise zone that is zoned for use by eligible
businesses and that is not used or designated for some public purpose shall
make that real property available for lease or purchase by authorized business
firms. Real property shall be leased or sold under this section only upon the
condition that the authorized business firm promptly develop the real property
for a use that is consistent with the use described in the application for
authorization under ORS 285C.140. [Formerly 285B.674]
     285C.115
Change of zone boundaries.
(1) The sponsor of an enterprise zone may submit a request to the Economic and
Community Development Department to change the boundary of the enterprise zone.
A request shall include:
     (a) A copy of the resolution of the
governing body of the sponsor requesting the change;
     (b) If subsection (7) of this section
applies, a copy of the resolution described in subsection (7) of this section;
     (c) A map clearly indicating the existing
boundary and the proposed change thereto;
     (d) A legal description of each area to be
withdrawn from or added to the existing enterprise zone; and
     (e) Other information required by the
department.
     (2) The amended enterprise zone shall:
     (a) Add land zoned for use by eligible
business firms that has or will have infrastructure facilities, road access,
on-site water, on-site sewage disposal and necessary utility services;
     (b) Continue to include any authorized
business firms within the enterprise zone;
     (c) Add residential areas or
nonresidential areas that are adjacent to residential areas only if the level
of economic hardship in the areas to be added is at least as severe as the
conditions that existed at the time the original enterprise zone was designated
or that currently exist in the original enterprise zone;
     (d) Retain at least 50 percent of the
lands in the original enterprise zone; and
     (e) Meet the applicable total area and
greatest distance requirements set forth in ORS 285C.090.
     (3) If the enterprise zone is a
reservation enterprise zone and the land to be added to the zone is not
described in ORS 285C.306, the request for a boundary change, and the resulting
boundary of the zone, must fully satisfy the provisions of this section.
     (4) A request under subsection (1) of this
section may include a proposal to:
     (a) Remove only the land that is
residential or not zoned or available for use by eligible business firms; or
     (b) Change the name of the enterprise
zone.
     (5) The boundary of an urban enterprise
zone may not be modified to include land located outside a regional or
metropolitan urban growth boundary.
     (6) A request to modify the boundary of a
rural enterprise zone to include land located outside an urban growth boundary
shall satisfy the requirements of subsections (1) and (2) of this section and
shall satisfy any other criteria that the department may adopt by rule.
     (7) If an area to be added to an
enterprise zone is under the jurisdiction of a city, county or port that is not
a sponsor of the enterprise zone, the governing body of that city, county or
port shall submit a resolution requesting the change and requesting that the
city, county or port become a sponsor, or shall submit a resolution consenting
to the change, as provided under ORS 285C.065 (1). The resolution of the
joining city, county or port shall be submitted jointly with the resolution
adopted by the governing body of the existing sponsor. The joining resolution
of the city, county or port may:
     (a) Include a binding proposal for
enhanced local public services, local incentives or local regulatory
flexibility to be effective within the portion of the enterprise zone to be under
the jurisdiction of that city, county or port; or
     (b) Include a restriction described in ORS
285C.070 (4). A restriction made under this paragraph may be made without
regard to the time limitation described in ORS 285C.070 (4)(c) and becomes
final on the effective date of the boundary change.
     (8) The department shall review the
request for a boundary change. If the request is incomplete or does not satisfy
the requirements of this section, the department shall seek additional
information as necessary or shall return the request to the sponsor. If the
request is returned, the sponsor may submit a revised request at any time. If
the request is complete and does satisfy the requirements of this section, the
Director of the Economic and Community Development Department shall order a
change in the boundary of an enterprise zone based on the request of the
sponsor and specify the effective date of the boundary change, which may not be
earlier than the receipt of a completed request.
     (9) A change in the boundary of an
enterprise zone under this section does not change the termination date of the
enterprise zone under ORS 285C.245 (2). [Formerly 285B.680; 2005 c.94 §6; 2005
c.704 §11]
     285C.120
Zone boundary change restrictions when county ceases to be sparsely populated;
waiver of distance limitations; rules. (1) If the population density of a county increases to more than 100
persons per square mile, so that the county is no longer a sparsely populated
county, any existing rural enterprise zone located wholly or partly within that
county that was designated or that had its zone boundary changed shall continue
to exist with that zone boundary until terminated. A boundary change under ORS
285C.115 that is subsequent to the date on which the county ceases to be a sparsely
populated county may not add an area to the zone that:
     (a) Is a separate area farther than five
miles from the nearest point on the existing boundary;
     (b) Increases the distance between the two
points in the zone that are the farthest apart; or
     (c) Creates a new line of distance to the
farthermost opposite point in the zone that is longer than the greatest
distance between any two existing points in the zone.
     (2) An applicant for designation under ORS
285C.065 or a sponsor requesting a change to a rural enterprise zone under ORS
285C.115 in a sparsely populated county may seek a waiver of the distance
limitations imposed on the zone under ORS 285C.090 (4). The Director of the
Economic and Community Development Department shall grant all or part of the
waiver if:
     (a) The proposed designation is to be made
or the proposed boundary change satisfies all other requirements for a boundary
change under ORS 285C.115; and
     (b) The director determines, consistent
with rules adopted by the Economic and Community Development Department, that
designation of a separate enterprise zone is not a practical option under the
particular circumstances, that the overall distances involved can be
effectively administered and that the waiver will further the goals and purposes
of ORS 285C.050 to 285C.250. [Formerly 285B.683; 2005 c.94 §7]
(Duties of
Property Tax Administrators)
     285C.125
Duties of Department of Revenue; rules. For the purposes of ORS 285C.050 to 285C.250, the Department of
Revenue shall:
     (1) Adopt any rules the Department of
Revenue considers necessary to implement ORS 285C.125, 285C.130, 285C.140,
285C.145, 285C.165, 285C.175, 285C.180, 285C.185, 285C.190, 285C.220, 285C.225,
285C.230, 285C.235 and 285C.240.
     (2) Assist the Economic and Community Development
Department, county assessors and the sponsors of enterprise zones in their
efforts to authorize or qualify eligible business firms.
     (3) Assist an eligible business firm
proposing to do business within an enterprise zone or doing business within an
enterprise zone to obtain the benefits of applicable tax incentive or
inducement programs administered or supervised by the Department of Revenue.
     (4) Issue and print forms and worksheets
to be used by business firms to make authorization applications or exemption
claims. [Formerly 285B.692; 2005 c.94 §8]
     285C.130
Duties of county assessor.
The assessor of a county within which an enterprise zone is located shall:
     (1) Assist the sponsor, the local zone
manager appointed by the sponsor and business firms in determining whether
property will qualify for a property tax exemption under ORS 285C.175.
     (2) Review and approve or deny
applications from eligible business firms for authorization under ORS 285C.140.
     (3) Process claims for property tax
exemptions filed under ORS 285C.220 and exempt the qualified property of
authorized business firms from ad valorem property taxation in accordance with
ORS 285C.050 to 285C.250.
     (4) Take action necessary under ORS
285C.240.
     (5) Submit a written report to the Department
of Revenue on or before July 1 of each assessment year. The report for each
enterprise zone, or portion of a zone that is located in the county, shall
include the following information, organized by business firm:
     (a) The assessor’s estimate of the assessed
value of qualified property that was exempt under ORS 285C.175 for the previous
tax year and the taxes that would have been imposed on the qualified property,
as entered on the assessment and tax roll under ORS 285C.175 (7).
     (b) The annual average number of employees
of the firm within the enterprise zone during the previous assessment year, as
reported on the exemption claim filed under ORS 285C.220.
     (c) The annual average compensation for
the previous assessment year of new employees hired by the firm within the
enterprise zone, if the firm is subject to the annual compensation requirements
of ORS 285C.160 (3), as reported on the exemption claim filed under ORS
285C.220.
     (d) The assessor’s estimate of the
assessed value, for the current tax year, of qualified property that was exempt
under ORS 285C.175 for the previous tax year and that is not exempt under ORS
285C.175 for the current tax year.
     (e) The total investment cost of qualified
property first reported on the exemption claim filed under ORS 285C.220 that
includes a property schedule submitted by the business firm pursuant to ORS
285C.225 for the current tax year.
     (f) The current number of employees of the
firm, as reported on the exemption claim filed under ORS 285C.220 and described
in paragraph (e) of this subsection.
     (g) Any other information the assessor or
the Department of Revenue considers appropriate.
     (6) Send a copy of a report prepared under
subsection (5) of this section to the sponsor of the enterprise zone and to the
Economic and Community Development Department. [Formerly 285B.695]
(Eligible
Business Firms)
     285C.135
Requirements for eligibility.
(1) To be an eligible business firm, a business firm must be engaged, or
proposing to engage, within the enterprise zone, in the business of providing
goods, products or services to businesses or other organizations through
activities including, but not limited to, manufacturing, assembly, fabrication,
processing, shipping or storage.
     (2) A business firm is not an eligible
business firm if the firm is:
     (a) Engaged within the enterprise zone in
the business of providing goods, products or services to the general public for
personal or household use.
     (b) Significantly engaged in a business
activity within the enterprise zone that consists of retail sales or services,
child care, housing, retail food service, health care, tourism, entertainment,
financial services, professional services, leasing space to others, property
management, construction or other similar activities, even if for another
business or organization.
     (3) If a business firm described in
subsection (2) of this section engages in an activity described in subsection
(1) of this section, the business firm is an eligible business firm if the
activity is performed at a location that is separate from the activity of the
firm that is described in subsection (2) of this section. Property at the
location at which the firm conducts an activity described in subsection (2) of
this section may not be exempt under ORS 285C.175.
     (4) Two or more business firms that
otherwise meet the requirements of this section may elect to be treated as one
eligible business firm if 100 percent of the equity interest in the business
firms is owned by the same person or persons, or if one of the business firms
owns 100 percent of the equity interest of the other or others.
     (5) Notwithstanding subsections (1) to (3)
of this section, each of the following business firms is an eligible business
firm under subsection (1) of this section:
     (a) A business firm engaged in the
activity of providing a retail or financial service within the enterprise zone
if:
     (A) The activity serves customers by
responding to orders or requests received only by telephone, computer, the
Internet or similar means of telecommunications; and
     (B) Not less than 90 percent of the
customers or orders are located and originate in an area from which long
distance telephone charges, in the absence of a toll-free number, would apply
if the order were placed by telephone.
     (b) A business firm that operates a
facility within the enterprise zone that serves statewide, regional, national
or global operations of the firm through administrative, design, financial,
management, marketing or other activities, without regard to the relationship of
these activities to any otherwise eligible activities within the enterprise
zone.
     (c) A business firm that operates a hotel,
motel or destination resort in the enterprise zone if the sponsor has elected
under ORS 285C.070 to treat a business firm engaged in hotel, motel or
destination resort operations in an enterprise zone as an eligible business
firm.
     (d) A business firm that is engaged in
electronic commerce if the enterprise zone has been approved for electronic
commerce designation under ORS 285C.095. [Formerly 285B.707]
(Authorization)
     285C.140
Application for authorization; contents; filing fee; consultation; approval;
appeal; late filing. (1)(a)
Any eligible business firm seeking to have property exempt from property
taxation under ORS 285C.175 shall, before the commencement of direct site
preparation activities or the construction, addition, modification or
installation of qualified property in an enterprise zone, and before the hiring
of eligible employees, apply for authorization under this section.
     (b) The application shall be made on a
form prescribed by the Department of Revenue and the Economic and Community
Development Department.
     (c) The application shall be filed with
the sponsor of the zone. A sponsor may require that the application filed with
the sponsor be accompanied by a filing fee. If required, the filing fee may not
exceed the greater of $200 or one-tenth of one percent of the value of the
investment in qualified property that is proposed in the application for
authorization. The filing fee may be required for the filing of applications
only after the sponsor adopts a policy, consistent with Economic and Community
Development Department rules, authorizing the imposition of the filing fee.
     (2) The application shall contain the following
information:
     (a) A description of the nature of the
firmÂ’s current and proposed business operations inside the boundary of the
enterprise zone;
     (b) A description and estimated value of
the qualified property to be constructed, added, modified or installed inside
the boundary of the enterprise zone;
     (c) The number of employees of the firm
that are employed within the enterprise zone, averaged over the previous 12
months, and an estimate of the number of employees that will be hired by the
firm;
     (d) A commitment to meet all requirements
of ORS 285C.200 and 285C.215, and to verify compliance with these requirements;
     (e) A commitment to satisfy all additional
conditions for authorization that are imposed by the enterprise zone sponsor
under ORS 285C.150, 285C.155 or 285C.205 or pursuant to an agreement entered
into under ORS 285C.160, and to verify compliance with these additional
conditions;
     (f) A commitment to renew the application,
consistent with ORS 285C.165, every two years while the zone exists if the firm
has not filed a claim under ORS 285C.220 that is based on the application; and
     (g) Any other information considered
necessary by the Department of Revenue and the Economic and Community
Development Department.
     (3) After an application is submitted to a
sponsor, the business firm may revise or amend the application. An amendment or
revision may not be made on or after January 1 of the first assessment year for
which the qualified property associated with the application is exempt under ORS
285C.175.
     (4) If an application for authorization
appears to be complete and the proposed investment appears to be eligible for
authorization, the sponsor and the business firm shall conduct a
preauthorization consultation. The county assessor shall be timely notified and
have the option to participate in the consultation. The consultation shall:
     (a) Identify issues with the potential to
affect compliance with relevant exemption requirements, including but not
limited to enterprise zone boundary amendments;
     (b) Arrange for methods and procedures to
establish and verify compliance with applicable requirements; and
     (c) Identify the person who is obligated
to notify the county assessor if requirements are not being satisfied.
     (5) Upon completion of the consultation,
the sponsor shall prepare a written summary of the consultation made under
subsection (4) of this section, attach the summary to the application and
forward the application to the county assessor of each county in which the zone
is located for review by the assessor.
     (6) Following the preauthorization
conference under subsection (4) of this section, the sponsor and the county
assessor shall authorize the business firm by approving the application, if the
sponsor and county assessor determine that:
     (a) The current or proposed operations of
the business firm in the enterprise zone result in the firm being eligible
under ORS 285C.135; and
     (b) The firm has made the commitments and
provided the other information required under subsection (2) of this section.
     (7) If the business firm seeking
authorization is an eligible business firm described in ORS 285C.135 (5)(b),
the sponsor must, as a condition to approving the application, make a formal
finding that the business firm is an eligible business firm under ORS 285C.135
and that the size of the proposed investment, the employment at the facility of
the firm or the nature of the activities undertaken by the firm within the
enterprise zone will significantly enhance the local economy, promote the purposes
for which the zone was created and increase employment within the zone.
     (8) The approval of both the sponsor and
the county assessor under this section shall be prima facie evidence that the
qualified property of the business firm will receive the property tax exemption
under ORS 285C.175. In approving the application, the sponsor and county
assessor shall provide proof of approval as directed by the Economic and
Community Development Department.
     (9) If the sponsor or county assessor
fails or refuses to authorize the business firm, the business firm may appeal
to the Oregon Tax Court under ORS 305.404 to 305.560. The business firm shall
provide copies of the firmÂ’s appeal to the sponsor, county assessor, the
Department of Revenue and the Economic and Community Development Department.
     (10) Authorization under this section does
not ensure that property constructed, added, modified or installed by the
authorized business firm will receive property tax exemption under ORS
285C.175. The sponsor and the county assessor are not liable in any way if the
Department of Revenue or the county assessor later determines that an
authorized business firm does not satisfy the requirements for an exemption on
qualified property.
     (11) Notwithstanding subsection (1) of this
section, if an eligible business firm has begun or completed the construction,
addition, modification or installation of property that meets the
qualifications of ORS 285C.180, and the property has not yet been subject to
property tax, then, for purposes of ORS 285C.050 to 285C.250, the firm shall be
authorized under this section if the firm files an application that is allowed
under subsection (12) of this section and is otherwise authorized under this
section.
     (12) Late submission of an application under
this section is allowed if:
     (a) A rule permits late submissions of
applications under this section; or
     (b) The Department of Revenue waives
filing deadline requirements under this section. The department shall issue a
letter to the eligible business firm and zone sponsor setting forth the waiver
under this paragraph. [Formerly 285B.719]
     285C.145
Leasing existing property to authorized firm; failure to timely file for
authorization; certain records exempt from disclosure. (1) The Legislative Assembly finds that the
standard procedure for authorization in an enterprise zone inappropriately
deters development or redevelopment of qualified buildings on speculation for
subsequent sale or lease to eligible business firms.
     (2) Notwithstanding ORS 285C.140 (1), a
new building or structure or an addition to or modification of an existing
building or structure may qualify for the exemption allowed under ORS 285C.175
if the qualified property is leased or sold by an unrelated party to one or
more authorized business firms after commencement of the construction, addition
or modification but prior to use or occupancy of the qualified property.
     (3) A business firm may not be considered
authorized and is not qualified for the exemption allowed under ORS 285C.175 if
the county assessor discovers prior to initially granting the exemption that
the application for authorization was not submitted by the business firm in a
timely manner in accordance with ORS 285C.140, except as allowed under
subsection (2) of this section or ORS 285C.140 (11) and (12).
     (4) Records, communications or information
submitted to a public body by a business firm for purposes of ORS 285C.050 to
285C.250 that identify a particular qualified property, that reveal investment
plans prior to authorization, that include the compensation the firm provides
to firm employees, that are described in ORS 192.502 (17) or that are submitted
under ORS 285C.225 or 285C.235 are exempt from disclosure under ORS 192.410 to
192.505 and, as appropriate, shall be shared among the county assessor, the
zone sponsor, the Department of Revenue and the Economic and Community
Development Department. [Formerly 285B.701; 2007 c.152 §3]
     285C.150
Conditions required by sponsor for authorization; reports. (1) The sponsor of an urban enterprise zone
may require an eligible business firm seeking authorization under ORS 285C.140
to satisfy other conditions in order for the firm to be authorized.
     (2) The conditions that a sponsor may
impose under this section must be reasonably related to the public purpose of
providing opportunities for groups of persons, as defined by the sponsor, to
obtain employment, including but not limited to providing training to these
groups of persons.
     (3) The sponsor may establish procedures
for monitoring and verifying compliance with conditions imposed on the firm
under this section and require the firm to agree to the procedures as a
condition to authorizing the firm.
     (4) Conditions established under this
section may be imposed on a firm only if the sponsor has adopted a policy that
establishes standards for the imposition of the conditions.
     (5) Conditions imposed by a sponsor under
this section shall be in addition to, and not in lieu of, conditions and
requirements imposed under ORS 285C.050 to 285C.250 or pursuant to an agreement
entered into under ORS 285C.160 and do not affect the duties of the Department
of Revenue or of the county assessor under ORS 285C.050 to 285C.250.
     (6) A sponsor of an urban enterprise zone
that imposes conditions for authorization on eligible business firms under this
section shall submit a written report every four years to the Legislative
Assembly concerning the application and effects of the conditions on business
firms within the enterprise zone. [2003 c.662 §32]
     285C.155
Minimum employment and other requirements for authorization. For purposes of ORS 285C.200 (2):
     (1) The sponsor of an enterprise zone, at
the time authorization is sought by a business firm under ORS 285C.140, shall
establish a minimum number of employees the firm must maintain in the
enterprise zone throughout the exemption period.
     (2) The sponsor, at the time authorization
is sought by a business firm under ORS 285C.140, may establish other reasonable
conditions with which the firm must comply in order for qualified property of
the firm to be exempt under ORS 285C.175.
     (3) Employment requirements and other
conditions established by the sponsor under this section shall be set forth in
a resolution adopted by the governing body of the sponsor at the time the
sponsor approves the application of the business firm for authorization under
ORS 285C.140.
     (4) A resolution adopted pursuant to this
section may be modified at the request of the business firm at any time prior
to the start of the first tax year for which an exemption under ORS 285C.175 is
claimed. [2003 c.662 §33]
     285C.160
Agreement between firm and sponsor for additional period of exemption;
requirements. (1) An
eligible business firm seeking authorization under ORS 285C.140 and the sponsor
of the enterprise zone in which the firm intends to invest may enter into a
written agreement to extend the period during which the qualified property is
exempt from taxation under ORS 285C.175 if the firm complies with the terms of
the agreement.
     (2) The period for which the qualified
property is to continue to be exempt must be set forth in the agreement and may
not exceed two additional tax years.
     (3) In order for an agreement under this
section to extend the period of exemption, the agreement must be executed on or
before the date on which the firm is authorized, and:
     (a) If the enterprise zone is a rural
enterprise zone or an urban enterprise zone located inside a metropolitan
statistical area of fewer than 400,000 residents, the agreement must require
that the firm meet both of the following:
     (A) Annually compensate all new employees
hired by the firm at an average rate of not less than 150 percent of the county
average annual wage for each assessment year during the tax exemption period,
as determined at the time of authorization.
     (B) Any additional requirement that the
sponsor may reasonably request.
     (b) If the enterprise zone is an urban
enterprise zone located inside a metropolitan statistical area of 400,000
residents or more, the agreement must require that the firm meet any additional
requirement the sponsor may reasonably require.
     (4) If a firm enters into an agreement
under this section that includes a compensation requirement under subsection
(3)(a)(A) of this section and the firm subsequently submits one or more
statements of continued intent under ORS 285C.165, notwithstanding the terms of
the agreement made under this section, for each statement of continued intent
submitted, the county average annual wage under subsection (3)(a)(A) of this
section shall be adjusted to a level that is current with the statement. [2003
c.662 §34; 2005 c.94 §9]
     285C.165
Extension of period of authorization; filing fee. (1) In the case of an authorized business
firm that has not yet claimed the exemption under ORS 285C.175 on qualified
property:
     (a) After the January 1, but on or before
the April 1, that first occurs more than two years after the application for
authorization is approved, an authorized business firm shall submit a written
statement to both the sponsor and the county assessor attesting to the firmÂ’s
continued intent to complete the proposed investment and seek the enterprise
zone exemption. The statement may include significant changes to the
descriptions and estimates of anticipated qualified property or employment. If
the firm is subject to a compensation requirement under ORS 285C.160 (3)(a)(A),
the statement shall acknowledge that the applicable county average annual wage
in the agreement is updated to equal the level that is current with the
statement.
     (b) Every two years after the submission
of a statement described in paragraph (a) of this subsection, the firm shall
submit another such statement. The statement must be submitted after January 1,
but on or before April 1 of that year.
     (2) If the firm fails to submit a
statement required under subsection (1) of this section, the authorization of
the firm shall be considered inactive. An inactive authorized business firm may
claim the exemption under ORS 285C.175 only as provided under subsection (3) of
this section.
     (3)(a) An inactive authorized business
firm may file an exemption claim under ORS 285C.220 only if the claim includes
a filing fee equal to the greater of $200 or one-tenth of one percent of the
real market value of the qualified property listed in the property schedule
that is filed with the claim.
     (b) The filing fee required under this
subsection is in addition to and not in lieu of any other required filing fee.
     (c) An exemption under ORS 285C.175 may
not be granted if the filing fee does not accompany the claim.
     (d) The real market value of the property
used to determine the filing fee under this subsection may be appealed in the
same time and manner as other determinations of value made by the assessor are
appealed.
     (e) Any filing fee collected under this
subsection shall be deposited to the county general fund.
     (4) If an inactive authorized business
firm is subject to a compensation requirement under ORS 285C.160 (3)(a)(A) and
files a claim for exemption under ORS 285C.220 in the manner prescribed in
subsection (3) of this section, notwithstanding the terms of the agreement
executed under ORS 285C.160, the applicable county average annual wage shall be
updated to equal the level that is current with the date of the filing of the
claim.
     (5) This section applies only until the
enterprise zone is terminated. Following zone termination, ORS 285C.245
applies. [2003 c.662 §34a]
(Exemptions)
     285C.170
Construction-in-process exemption. (1) Property shall be exempt from ad valorem property taxation under
this section if:
     (a) The property is located in an
enterprise zone;
     (b) The property is owned or leased by an
authorized business firm or the business firm is contractually obligated to own
or lease the property upon the propertyÂ’s being placed in service;
     (c) The property is or, upon completion of
the construction, addition, modification or installation of the property, will
be qualified property;
     (d) The authorization of the business firm
remains active under ORS 285C.140 or 285C.165;
     (e) The property has not been subject to
exemption under ORS 307.330 at the location;
     (f) The property is not and will not be
centrally assessed under ORS 308.505 to 308.665;
     (g) The property is not to be operated as
all or a part of a hotel, motel or destination resort; and
     (h) There is no known reason to conclude
that the property or the firm will not satisfy any applicable requirements for
the property to be exempt under ORS 285C.175 upon being placed in service.
     (2) Property may be exempt under this
section for no more than two tax years, which must be consecutive.
     (3) In determining whether property is
exempt under this section, the county assessor:
     (a) Shall adhere to the same procedures as
apply under ORS 285C.175 (6) and (7); and
     (b) May require the submission of
additional evidence by the authorized business firm or zone sponsor showing
that the property qualifies for exemption under this section. If required, the
additional evidence must be submitted on or before April 1 of the assessment
year.
     (4) The exemption under this section does
not depend on the property or the authorized business firm receiving the
exemption under ORS 285C.175 or satisfying requirements applicable to the
exemption under ORS 285C.175.
     (5) A year in which property is exempt
under this section shall be considered a year in which the property is exempt
under ORS 307.330 for purposes of determining the maximum number of years for
which the property may be exempt under this section or ORS 307.330. [2003 c.662
§34b]
     285C.175
Enterprise zone exemption; requirements; duration. (1) Property of an authorized business firm
is exempt from ad valorem property taxation if:
     (a) The property is qualified property
under ORS 285C.180;
     (b) The firm meets the qualifications
under ORS 285C.200; and
     (c) The firm has entered into a
first-source hiring agreement under ORS 285C.215.
     (2)(a) The exemption allowed under this
section applies to the first tax year for which, as of January 1 preceding the
tax year, the qualified property is in service. The exemption shall continue
for the next two succeeding tax years if the property continues to be owned or
leased by the business firm and located in the enterprise zone.
     (b) The property may be exempt from
property taxation under this section for up to two additional tax years
consecutively following the tax years described in paragraph (a) of this
subsection, if authorized by the written agreement entered into by the firm and
the sponsor under ORS 285C.160.
     (c) If qualified property of a qualified
business firm is sold or leased to an eligible business firm in the enterprise
zone during the period the property is exempt under this section, the
purchasing or leasing firm is eligible to continue the exemption of the selling
or leasing firm for the balance of the exemption period, but only if any
effects on employment within the zone that result from the sale or lease do not
constitute substantial curtailment under ORS 285C.210.
     (3)(a) The exemption allowed under this
section shall be 100 percent of the assessed value of the qualified property in
each of the tax years for which the exemption is available.
     (b) Notwithstanding paragraph (a) of this
subsection:
     (A) If the qualified property is an
addition to or modification of an existing building or structure, the exemption
shall be measured by the increase in value, if any, attributable to the
addition or modification.
     (B) If the qualified property is an item
of reconditioned, refurbished, retrofitted or upgraded real property machinery
or equipment, the exemption shall be measured by the increase in the value of
the item that is attributable to the reconditioning, refurbishment,
retrofitting or upgrade.
     (4)(a) An exemption may not be granted
under this section for qualified property assessed for property tax purposes in
the county in which the property is located on or before the effective date of
the:
     (A) Designation of the zone; or
     (B) Approval of a boundary change for the
zone if the property is located in an area added to the zone.
     (b) An exemption may not be granted for
qualified property constructed, added, modified or installed in the zone or in
the process of construction, addition, modification or installation in the zone
on or before the effective date of the:
     (A) Designation of the zone; or
     (B) Approval of a boundary change for the
zone if the property is located in an area added to the zone.
     (c) An exemption may not be granted for
any qualified property that was in service within the zone for more than 12
months by January 1 of the first assessment year for which an exemption claim
is made.
     (d) An exemption may not be granted for
any qualified property unless the property is in use or occupancy before July 1
of the year immediately following the year during which the completion of the
construction, addition, modification or installation occurred.
     (e) Except as provided in ORS 285C.245, an
exemption may not be granted for qualified property constructed, added,
modified or installed after termination of an enterprise zone.
     (5) Property is not required to have been
exempt under ORS 285C.170 in order to be exempt under this section.
     (6) The county assessor shall notify the
business firm in writing whenever property is denied an exemption under this
section. The denial of exemption may be appealed to the Oregon Tax Court under
ORS 305.404 to 305.560.
     (7) For each tax year that the property is
exempt from taxation, the assessor shall:
     (a) Enter on the assessment roll, as a
notation, the assessed value of the property as if it were not exempt under
this section.
     (b) Enter on the assessment roll, as a
notation, the amount of additional taxes that would be due if the property were
not exempt.
     (c) Indicate on the assessment roll that
the property is exempt and is subject to potential additional taxes as provided
in ORS 285C.240, by adding the notation “enterprise zone exemption (potential
additional tax).” [Formerly 285B.698]
     Note: Sections 3 and 4, chapter 888, Oregon Laws
2007, provide:
     Sec.
3. (1) Notwithstanding ORS 285C.175
(4) or 285C.180 (1), property of a business firm that otherwise meets
applicable requirements for authorization and qualification under ORS 285C.050
to 285C.250 is exempt from ad valorem taxation as provided in ORS 285C.175 if:
     (a) The business firm is engaged in
business activities or operations resulting from a transfer or lease of real
property between the business firm and a public body; and
     (b) At the time of the transfer or lease
of real property, according to the most recent federal decennial census:
     (A) The business activities or operations
are located in a city having a population of more than 2,500 but less than
5,500; and
     (B) The enterprise zone is located in a
county having a population of more than 6,000 but less than 9,000.
     (2) A business firm that satisfies the
criteria of subsection (1) of this section is an eligible business firm for
purposes of ORS 285C.140.
     (3) A business firm described in
subsection (2) of this section that seeks to have property exempted from
property taxation as provided in ORS 285C.175 shall apply for authorization as
provided in ORS 285C.140. [2007 c.888 §3]
     Sec.
4. Section 3 of this 2007
Act is repealed on June 30, 2016. [2007 c.888 §4]
(Qualified
Property)
     285C.180
Qualified property generally.
(1) The following types of property are qualified for exemption under ORS
285C.175:
     (a) A newly constructed building or
structure.
     (b) A new addition to or modification of
an existing building or structure.
     (c) Any real property machinery or
equipment or personal property, whether new, used or reconditioned, that is
installed on property that is owned or leased by an authorized business firm,
and:
     (A) Newly purchased or leased by the firm,
unless the property is described in ORS 285C.175 (4)(a); or
     (B) Newly transferred into the enterprise
zone from outside the county within which the site of the firm is located and
installed.
     (d) Any property otherwise described in
this section that is owned or leased and operated by a business firm that is
engaged in electronic commerce, if the enterprise zone in which the property is
located is a zone approved for electronic commerce designation under ORS
285C.095.
     (2) Property described in subsection (1)
of this section is qualified under this section only if:
     (a) The property meets or exceeds the
minimum cost requirements established under ORS 285C.185;
     (b) The property satisfies applicable
usage, lease or location requirements established under ORS 285C.185;
     (c) The property was constructed, added,
modified or installed to further the production of income;
     (d) The property is owned or leased by an
authorized business firm;
     (e) The location of the property
corresponds to the location as set forth in the application for authorization
of the business firm and consists of a single site or multiple sites adjacent
to or having comparable proximity to each other, within the boundaries of the
enterprise zone;
     (f) The property is the same general type
of property as described in the application for authorization; and
     (g) In the case of an eligible business
firm described in ORS 285C.135 (5)(b), the actual investment at the facility of
the firm is consistent with the description set forth in the application for
authorization.
     (3) Notwithstanding subsection (1) of this
section, the following property is not qualified for exemption under ORS
285C.175:
     (a) Land.
     (b) Property that was not in use or
occupancy for more than a 180-day period that ends during the preceding
assessment year.
     (c) On-site developments that, consistent
with ORS 307.010, are assessed as land.
     (d) Noninventory supplies, including but
not limited to lubricants.
     (e) Any operator-driven item of machinery
or equipment or any vehicle, if the item or vehicle moves by internal motorized
power. An item or vehicle described in this paragraph includes but is not
limited to an item or vehicle that moves within an enclosed space.
     (f) Any device or rolling stock that is
pulled, pushed or carried by a vehicle that is suitable as a mode of
transportation beyond the enterprise zone boundary.
     (4) Subsection (3)(b) of this section does
not apply to the first assessment year for which the property is exempt under
ORS 285C.175.
     (5) For purposes of this section and ORS
285C.175, property includes any portion or incremental unit of property that is
newly constructed or installed, or that is a new addition to or modification of
an existing building or structure. [Formerly 285B.713]
     Note: See note under 285C.175.
     285C.185
Minimum cost of qualified property; leased property; hotel, motel or
destination resort property; electronic commerce property. (1) In order for property to be qualified
property under ORS 285C.180, the property must cost:
     (a) $50,000 or more, in the case of:
     (A) All real property that is concurrently
exempt at the location; or
     (B) An item of personal property that is
not described in paragraph (b) of this subsection.
     (b) $1,000 or more, in the case of an item
of personal property that is used:
     (A) Exclusively in the production of
tangible goods; or
     (B) In electronic commerce in an
enterprise zone approved for electronic commerce designation under ORS
285C.095.
     (2) The estimated cost of property set
forth in an application for authorization under ORS 285C.140 shall be
disregarded for purposes of determining if property is qualified property.
     (3) Property that is leased by the
authorized business firm may be qualified property under ORS 285C.180 only if
the terms of the lease provide:
     (a) During the term of the lease, that the
authorized business firm is to compensate the owner of the leased property for
all property taxes assessed against the leased property or that the firm is to
pay these taxes; and
     (b) That the term of the lease begins on
or before the start of the first tax year for which the property is exempt and
ends on or after the last day of the last tax year for which the property is
exempt.
     (4) In order for property that is owned or
leased by an authorized business firm operating a hotel, motel or destination
resort to be qualified property under ORS 285C.180, the property must be:
     (a) Located and in service in an
enterprise zone for which the sponsor has elected under ORS 285C.070 to treat a
business firm engaged in hotel, motel or destination resort operations as an
eligible business firm;
     (b) Located at the same site as the hotel,
motel or destination resort or in close proximity to that site; and
     (c) Used primarily to serve overnight
guests of the hotel, motel or destination resort. Property is used primarily to
serve overnight guests if at least 50 percent of any receipts from use of the
property are paid by overnight guests.
     (5) In order for property owned or leased
and operated by a business firm engaged in electronic commerce in a city
designated for electronic commerce under ORS 285C.100 to be qualified property,
the property otherwise qualified under this section and the applicable
electronic commerce operations of the firm must be located in that city.
     (6)(a) As used in this section, “item of
personal property” includes an integrated system consisting of various
components.
     (b) Consistent with paragraph (a) of this
subsection, the Department of Revenue may by rule further define what
constitutes an item of personal property for purposes of this section. [2003
c.662 §37]
     285C.190
Requirements for qualifying reconditioned, refurbished, retrofitted or upgraded
property. (1)
Notwithstanding ORS 285C.180 (1)(c), an item of reconditioned, refurbished,
retrofitted or upgraded real property machinery or equipment that is owned or leased
by an authorized business firm is qualified property under ORS 285C.180 if:
     (a) The real property machinery or
equipment is idle:
     (A) At the time of application for
authorization; and
     (B) For a period of at least 18
consecutive months before or after the time of application for authorization
but preceding the first assessment year of the exemption;
     (b) Prior to the period of idleness, the
property was in use within the enterprise zone or elsewhere in the county for
at least 12 consecutive months;
     (c) The reconditioning, refurbishing,
retrofitting or upgrading of the property costs at least $50,000 and is
completed in the year immediately preceding the first assessment year in which
the property is exempt under ORS 285C.175; and
     (d) The business firm applies for
authorization before reconditioning, refurbishment, retrofitting or upgrading
commences.
     (2) The reconditioning, refurbishing,
retrofitting or upgrading of an item of real property machinery or equipment
described in subsection (1) of this section is a modification and the extent of
the exemption under ORS 285C.175 shall be determined as provided in ORS
285C.175 (3)(b)(B).
     (3) ORS 285C.175 (4)(a) to (c) does not
apply to qualified property described in subsection (1) of this section. [Formerly
285B.714]
     285C.195
Alternative requirements for qualifying reconditioned, refurbished, retrofitted
or upgraded property.
Notwithstanding ORS 285C.190, if an authorized business firm files a claim for
exemption under ORS 285C.175 prior to April 1, 2004, at the option of the
business firm, all of the following apply in lieu of ORS 285C.190:
     (1) If the firm completes the
reconditioning, refurbishing, retrofitting or upgrading of real property
machinery or equipment that is described in ORS 285C.190 (1), the
reconditioned, refurbished, retrofitted or upgraded real property machinery or
equipment is qualified property under ORS 285B.713 (2001 Edition) and
potentially subject to enterprise zone tax exemption for all of the propertyÂ’s
value if the following requirements are satisfied:
     (a) Prior to the period of idleness, the
property was in use within the enterprise zone for at least 12 consecutive
months;
     (b) The reconditioning, refurbishing,
retrofitting or upgrading of the property involved an investment of at least $3
million; and
     (c) As a result of reconditioning,
refurbishing, retrofitting or upgrading the property, the value of the property
is at least $25 million more than the assessed value for the tax year prior to
the first tax year of the enterprise zone tax exemption.
     (2) The reconditioning, refurbishing,
retrofitting or upgrading of real property machinery or equipment described in
subsection (1) of this section is a modification of property for purposes of
ORS 285C.050 to 285C.250.
     (3) ORS 285C.175 (4)(a) to (c) does not
apply to qualified property described in subsection (1) of this section.
     (4) ORS 285C.200 (1)(c) does not apply to
a business firm applying for or claiming an enterprise zone tax exemption for
qualified property described in subsection (1) of this section if the
provisions of ORS 285C.155 for sponsor approval by resolution of the local
governing body or bodies are satisfied. [2003 c.662 §38a]
(Firm and
Employment Qualifications)
     285C.200
Qualifications of business firm; rules. (1) The qualified property of an authorized business firm may be
exempt from property taxation under ORS 285C.175 only if the firm meets the
following qualifications:
     (a) The firm is an eligible business firm
engaged in eligible business operations under ORS 285C.135 that are located
inside the enterprise zone;
     (b) The firm owns or leases qualified
property that is located inside the enterprise zone;
     (c) The employment of the firm, no later
than the date the exemption is claimed under ORS 285C.220 or April 1 following
the year in which the investment in qualified property is made, whichever is
earlier, is not less than the greater of:
     (A) 110 percent of the annual average
employment of the firm; or
     (B) The annual average employment of the
firm plus one employee;
     (d) The firm does not diminish employment
outside the enterprise zone as described in subsections (4) and (5) of this
section;
     (e) The firm does not substantially
curtail operations within the enterprise zone as described in ORS 285C.210; and
     (f) The firm complies in all material
respects with local,
     (2) Notwithstanding subsection (1)(c) or
(e) of this section, an eligible business firm may meet the qualifications of
this section if the firm has satisfied the following requirements:
     (a) The firm is authorized subject to ORS
285C.155 and the firm satisfies those requirements; and
     (b)(A) The firm completes an investment of
$25 million or more in qualified property; or
     (B) The firm fulfills the requirements of
ORS 285C.205 and the employment of the firm does not decrease below the annual
average employment of the firm.
     (3) An authorized business firm that
engages in both eligible and ineligible operations in an enterprise zone and is
an eligible business firm because of ORS 285C.135 (3) meets the qualifications
of this section if:
     (a) The eligible operations of the firm
under ORS 285C.135 meet the qualifications of this section; and
     (b) The employees of the firm work a
majority of their time in eligible operations within the enterprise zone.
     (4) A business firm does not meet the
qualifications of this section if the firm or any other firm under common
control closes or permanently curtails operations in another part of the state
more than 30 miles from the nearest boundary of the enterprise zone in which
the firm seeks a property tax exemption. This subsection applies to the
transfer of any of the business firmÂ’s operations to an enterprise zone from
another part of the state, if the closure or permanent curtailment in the other
part of the state diminished employment in the county and more local labor markets
after authorization and on or before December 31 of the first tax year for
which any qualified property of the firm in that zone would otherwise be exempt
under ORS 285C.175.
     (5) An authorized business firm that moves
any of its employees from a site or sites within 30 miles from the nearest
boundary of the enterprise zone after authorization may meet the qualifications
under this section if the employment of the firm has been increased within the
zone and at the site or sites from which the employees were transferred, no
later than April 1 preceding the first tax year for which qualified property of
the firm is exempt under ORS 285C.175, to not less than 110 percent of the
annual average employment of the firm within the zone and the site or sites from
which the employees were transferred, calculated over the 12 months preceding
the date of application for authorization.
     (6) For purposes of subsection (1)(f) of
this section, the Economic and Community Development Department shall adopt
rules that define the effect of noncompliance on an eligible business firmÂ’s
continuing exemption in an enterprise zone and that indicate what is necessary
to establish the noncompliance in terms of materiality of the relevant
violation, the finality of applicable legal or regulatory proceedings and
judgments involving the firm, the failure by the firm to perform or submit to
remedial or curative actions and similar factors.
     (7) As used in this section:
     (a) “Annual average employment of the firm”
means the average employment of the firm, calculated over the 12 months
preceding the date of application for authorization.
     (b) Except as provided in subsection (5)
of this section, “employment of the firm” means:
     (A) The number of employees working for
the firm a majority of their time in eligible operations at locations within
the enterprise zone; or
     (B) In the case of a firm described in ORS
285C.135 (5)(b), the number of employees working a majority of their time at
the facility in the enterprise zone for which authorization was obtained. [Formerly
285B.704]
     285C.205
Effect of productivity increases on qualification of certain firms; uses of tax
savings. The requirements of
ORS 285C.200 (2)(b)(B) are met if the qualified business firm does all of the
following:
     (1) The firm demonstrates at least a 10
percent increase in productivity no later than 18 months following January 1 of
the first assessment year for which an exemption under ORS 285C.175 is claimed.
Unless further specified by the sponsor of the enterprise zone through the
resolution adopted under ORS 285C.155:
     (a) The increase must be in business
operations of the firm that are using qualified property receiving the
exemption;
     (b) Productivity is measured by dividing
physical units or quantity of output by the number of labor hours engaged in
the operations that produced the physical units or quantity of output; and
     (c) The base level of productivity shall
be established over a minimum 12-month period preceding the date on which the
qualified property is placed in service.
     (2) The firm maintains or exceeds the 10
percent increase in productivity under subsection (1) of this section as an
annual average rate for each subsequent assessment year during the remainder of
the exemption period.
     (3) On or before April 1 of each of the
first three assessment years for which an exemption is claimed, the firm
deposits into an account established by the sponsor an amount equal to 25
percent of the estimated tax savings arising from the exemption for that year.
The sponsor may adopt additional specifications or requirements applicable to
this subsection in the resolution the sponsor adopts under ORS 285C.155.
Consistent with this subsection and any additional specifications or
requirements adopted by the sponsor:
     (a) For up to 30 months following the
relevant April 1 date for which a deposit is made, the firm may draw from the
account amounts equal to any expense incurred for training or retraining
employees to promote or facilitate productivity increases under this section,
except that the total amount withdrawn from the account for that deposit may
not exceed $3,500 per trained employee;
     (b) Any amount attributable to the deposit
that remains in the account after the 30-month period in which firm withdrawals
may be made under paragraph (a) of this subsection shall be transferred to a
special fund for use by local publicly funded job training providers; and
     (c) No more than 18 months after the
deposit, the estimated tax savings on which the deposit was based shall be reconciled
with the actual tax savings arising from the exemption. The reconciliation
shall be accomplished by the firm immediately making a further deposit into the
account to cover any shortfall or by being reimbursed from the account for any
surplus. A deposit or reimbursement made pursuant to this paragraph does not
affect withdrawals or transfers that occur as a result of paragraph (a) or (b)
of this subsection. [2003 c.662 §33a]
     285C.210
Substantial curtailment of business operations. (1) For purposes of ORS 285C.175, 285C.200
and 285C.240, operations of a business firm are substantially curtailed when:
     (a) The number of employees of the firm
within the enterprise zone is reduced by more than 85 percent from the highest
number of employees of the firm within the enterprise zone;
     (b) The number of employees of a firm
within the enterprise zone has been reduced by more than 50 percent from the
highest number of employees of the firm within the enterprise zone for a period
of time that is equal to or more than nine months; or
     (c) The annual average number of employees
within the enterprise zone during the first assessment year for which the
exemption under ORS 285C.175 is granted, or any subsequent year in which an
exemption is claimed, is reduced below the greater of:
     (A) The annual average number of employees
of the business firm within the enterprise zone, averaged over the 12 months
preceding the date of the application for authorization, plus one employee; or
     (B) 110 percent of the annual average number
of employees of the firm within the enterprise zone, averaged over the 12
months preceding the date of the application for authorization.
     (2) For the purposes of this section:
     (a) The number of employees of a firm
within the enterprise zone is the employment of the firm, as defined in ORS
285C.200, on the earlier of the date a claim for exemption is filed under ORS
285C.220 or April 1, of each assessment year for which an exemption under ORS
285C.175 is claimed, and for the year immediately following the last assessment
year for which an exemption is claimed.
     (b) Except as specified in subsection
(1)(c) of this section, the annual average number of employees of the firm is
the number of firm employees within the enterprise zone averaged over each assessment
year in which an exemption under ORS 285C.175 is allowed, using employment
figures for no fewer than four equivalent periods during the year.
     (c) For the first assessment year for
which an authorized business firm that qualifies under ORS 285C.200 (5) claims
an exemption under ORS 285C.175, substantial curtailment under subsection
(1)(a) or (c) of this section shall be determined by:
     (A) Combining the number of employees of
the firm within the enterprise zone and the number of employees at all other
sites of the firm within the area described in ORS 285C.200 (5); and
     (B) Combining the annual average number of
employees of the firm within the enterprise zone with the annual average number
of employees at any other site of the firm from which employees were
transferred into the enterprise zone. [2003 c.662 §40]
     285C.215
First-source hiring agreements; rules. (1) The qualified property of an authorized business firm may be
exempt from property tax under ORS 285C.175 only if the firm enters into a first-source
hiring agreement for the period of property tax exemption. The agreement must
be executed prior to the assessment date for the first tax year for which
qualified property of the firm is exempt under ORS 285C.175 and must expire no
sooner than December 31 of the final year of the exemption.
     (2)(a) If a firm has not entered into a
first-source hiring agreement when qualified property of the firm is first
placed in service, as of April 1 preceding the first tax year for which the
authorized business firm claims an exemption for qualified property under ORS
285C.175, the sponsor shall inform the county assessor that an agreement under
this section has not been executed.
     (b) A publicly funded job training
provider having knowledge of the date when qualified property of the firm is
first placed in service may also inform the county assessor that an agreement
under this section has not been executed.
     (3) In accordance with rules adopted by
the Economic and Community Development Department, the Director of the Economic
and Community Development Department may waive the requirements of subsection
(1) of this section for an authorized business firm. The rules adopted by the
department shall provide for a waiver under this subsection when the director
finds that:
     (a) The business firm is unable to employ
persons referred under the agreement; or
     (b) The waiver would further the goals and
purposes of applicable state policies. [Formerly 285B.710]
(Exemption
Claim and Verification Procedures)
     285C.220
Exemption claims; contents; late filing; fees. (1)(a) After January 1 and on or before
April 1 of the assessment year immediately following the year in which
qualified property in an enterprise zone is placed in service, and of each
assessment year thereafter for which an exemption is sought, an authorized
business firm may file a claim for the exemption allowed under ORS 285C.175.
     (b) The claim shall be made by completing
a form prescribed by the Department of Revenue and by filing the form with the
county assessor. The firm shall furnish a copy of the claim to the sponsor.
     (c) The firm shall also file a form
described in this subsection after the final assessment year of the exemption
period.
     (2) A claim filed under this section shall
contain all of the following:
     (a) A statement that:
     (A) The business firm satisfies the
requirements of ORS 285C.200 as a qualified business firm; and
     (B) The business firm has been authorized
by the enterprise zone sponsor and the county assessor and has satisfied any
commitments made in the firmÂ’s application for authorization or made as a
condition of authorization. The date the application for authorization was
submitted and approved shall be set forth in the statement.
     (b) A statement confirming the continued
eligibility of the firm under ORS 285C.135 or explaining any change in
eligibility.
     (c) A schedule setting forth the following
employment data:
     (A) The number of employees of the firm
within the enterprise zone on the date the claim is filed under this section or
April 1, whichever is earlier;
     (B) The annual average number of employees
of the firm within the enterprise zone during the preceding assessment year;
and
     (C) The annual average number of employees
of the firm within the enterprise zone, averaged over the 12-month period
preceding the date of the application for authorization.
     (d) The annual average compensation for
the previous assessment year of new employees hired by the firm within the
enterprise zone, but only if:
     (A) The firm is subject to annual compensation
requirements under ORS 285C.160; and
     (B) The claim is filed for a year that is
not the first year for which a claim is filed under this section.
     (e) Any attachments required under ORS
285C.225.
     (f) For any qualified property listed on a
property schedule included in a claim filed for a previous assessment year and
that continues to be exempt for the current assessment year:
     (A) Confirmation that there has been no
change in the ownership, lease, location, disposition, operation, use or occupancy
of the property; or
     (B) In the case of a change in the
ownership, lease, location, disposition, operation, use or occupancy of the
property, an explanation of the change.
     (g) Any other information required by the
Department of Revenue.
     (3) The business firm shall be prepared to
verify any information set forth in a claim filed under this section. The
statement made pursuant to subsection (2)(a) of this section shall be prima
facie evidence that the firm is a qualified business firm.
     (4) If the assessor determines the
property for which exemption is sought satisfies the requirements of ORS
285C.175, the assessor shall grant the exemption for the tax year beginning
July 1.
     (5) The assessor shall provide copies of
each claim for exemption filed under this section as directed by the Department
of Revenue.
     (6) If a claim for exemption relates to
principal or secondary industrial property as defined by ORS 306.126 and is
filed with the Department of Revenue within the time required by subsection (1)
of this section, the claim shall be deemed timely filed with the assessor. The
Department of Revenue shall send a copy of the filed claim to the assessor.
     (7)(a) Notwithstanding subsection (1) of
this section, a claim may be filed under this section on or before June 1 of
the assessment year if:
     (A) The claim includes qualified property
that, pursuant to ORS 285C.225, is required to be listed on a property schedule
included with the claim form because the year for which the claim is being
filed is the first year for which the property is exempt under ORS 285C.175;
and
     (B) The claim is accompanied by a late
filing fee equal to the greater of $200 or one-tenth of one percent of the real
market value of the qualified property listed on the property schedule accompanying
the claim.
     (b) An exemption may not be granted
pursuant to a claim filed under this subsection if the claim is not accompanied
by the late filing fee.
     (8)(a) Notwithstanding subsection (1) of
this section, a claim may be filed under this section on or before August 31 of
the assessment year if:
     (A) The claim does not include qualified
property that, pursuant to ORS 285C.225, is required to be listed on a property
schedule included with the claim; and
     (B) The claim is accompanied by a late
filing fee equal to the greater of:
     (i) $200; or
     (ii) One-fiftieth of one percent of the
real market value of the qualified property of the business firm multiplied by
the number of 30-day periods from April 1 of the assessment year until the date
the claim is filed. A period of less than 30 days shall constitute a 30-day
period for purposes of this subparagraph.
     (b) An exemption may not be granted
pursuant to a claim filed under this subsection if the claim is not accompanied
by the late filing fee.
     (9) The value of the property used to
determine the late filing fees under this section is appealable in the same
manner as other determinations of value by the county assessor are appealable.
     (10)(a) Notwithstanding subsection (1) of
this section, a claim may be filed under this section on or before April 1
following the assessment year after the year in which the qualified property
was placed in service.
     (b) If a claim filed under this subsection
is approved by the county assessor, the qualified property shall be exempt from
property taxation only for those tax years that begin after the date the claim
was filed under this subsection and for which the property otherwise qualifies
for exemption under ORS 285C.050 to 285C.250.
     (11) Any filing fee collected under this
section shall be deposited to the county general fund.
     (12) A claim may be filed under this
section as of the dates prescribed in subsections (7), (8) and (10) of this
section, regardless of any grounds for hardship under ORS 307.475. [Formerly
285B.722]
     285C.225
SponsorÂ’s addendum; property schedule; amendments. (1) An exemption claim filed under ORS
285C.220 must, when applicable, include a sponsorÂ’s addendum setting forth any
information required by the sponsor of the enterprise zone pursuant to ORS
285C.140 (5), 285C.150, 285C.155 or 285C.160.
     (2) For the first tax year for which
qualified property is exempt under ORS 285C.175, the claim filed under ORS
285C.220 must include a property schedule listing the qualified property.
     (3)(a) The business firm is required to
include the property schedule described in subsection (2) of this section with
a claim filed under ORS 285C.220 only once for any item of qualified property.
The firm shall include additional property schedules with subsequent claims in
order to claim exemption of additional qualified property that is pursuant to
the same application for authorization.
     (b) The firm may not file an additional
property schedule to claim an exemption for additional qualified property for a
tax year that is more than two years after the first tax year for which any
qualified property of the firm was exempt under ORS 285C.175, except pursuant
to another authorization application.
     (4) The property schedule shall be set
forth on a form prescribed by the Department of Revenue and shall contain:
     (a) A list of all qualified property that
satisfies all requirements for exemption under ORS 285C.175 for the tax year
for which the exemption is being claimed and that has not been exempt under ORS
285C.175 for a previous tax year;
     (b) For each item of property described in
paragraph (a) of this subsection, the cost of the property and the date the
property was placed in service;
     (c) Any information needed to determine
compliance with any applicable requirements under ORS 285C.180, 285C.185 or
285C.190;
     (d) In the case of qualified property that
is leased by the business firm, a signature on the property schedule or other
evidence that the enterprise zone exemption is acknowledged by the owner of the
leased property; and
     (e) Any other information required by the
Department of Revenue.
     (5) The county assessor may allow the
business firm to amend the property schedule to include any other item of
qualified property described in subsection (2) of this section that was not
listed on the original property schedule included in the claim filed for the
assessment year. An amendment to the property schedule may not be made after
June 1 of the assessment year. [2003 c.662 §43]
     285C.230
Assessor to grant or deny exemption; assistance of sponsor. (1) In granting or denying an exemption
under ORS 285C.175, the county assessor may:
     (a) Reasonably rely on information set
forth in the exemption claim filed under ORS 285C.220; and
     (b) Request and be given assistance from
the sponsor before making certain determinations, including but not limited to:
     (A) Determining if the exemption is being
claimed by a qualified business firm under ORS 285C.200;
     (B) Determining the extent to which
qualified property is used by persons other than the qualified business firm or
is used for business activities that may not be conducted in an enterprise zone
by an eligible business firm under ORS 285C.135; or
     (C) Determining if the use, leasing or
location of qualified property satisfies applicable requirements under ORS
285C.180, 285C.185 or 285C.190.
     (2) The county assessor is not responsible
for determining if the firm has satisfied any requirement established by the
sponsor under ORS 285C.140, 285C.150, 285C.155, 285C.160 or 285C.205.
     (3) If a business firm fails to timely
file an exemption claim under ORS 285C.220:
     (a) The assessor or the sponsor may use
the authority granted to the assessor under ORS 285C.235; or
     (b) The assessor may deny the exemption
under ORS 285C.175 for the current tax year or for any future tax year for
which the property would otherwise qualify for exemption under ORS 285C.175.
     (4) If the sponsor or the assessor has
reason to question the accuracy or veracity of any information contained in a
claim filed under ORS 285C.220, the sponsor or the assessor may use the
authority provided under ORS 285C.235.
     (5) If any information submitted by a
business firm under ORS 285C.220 indicates that the firm is no longer in
compliance with any requirements that apply to the firm or the qualified
property of the firm, the information shall be considered notice for purposes
of ORS 285C.240.
     (6) The county assessor shall make
reasonable and timely efforts to notify an authorized business firm that is
seeking or receiving an exemption under ORS 285C.175 of the filing requirements
under ORS 285C.220, but the county assessor and the Department of Revenue are
not under any obligation other than as otherwise provided in ORS 285C.050 to
285C.250 to seek or receive information about the continued entitlement of
property to an exemption under ORS 285C.175.
     (7) The sponsor is primarily responsible
for assisting a business firm in timely filing claims under ORS 285C.220. If
the sponsor, or a local zone manager designated by the sponsor, does not
receive a copy of the claim as required under ORS 285C.220 by the time the
claim is required to be filed under ORS 285C.220, the sponsor or manager shall
immediately contact the assessor for taking action under subsection (3) of this
section. [2003 c.662 §44]
     285C.235
Authority of county assessor; authority of sponsor. (1) The county assessor is at all times
authorized to demand reports by registered or certified mail from owners or
lessees of qualified property concerning the use of the qualified property and
the employment status of the qualified business firm for purposes of ORS
285C.050 to 285C.250. If, after 60 daysÂ’ notice in writing by registered or
certified mail, the owner or lessee fails to comply with this demand, the
assessor may disqualify the property under ORS 285C.240, giving written notice
of the disqualification to the Department of Revenue and the owner or lessee of
the qualified property.
     (2) The assessor is under no obligation to
verify compliance by a qualified business firm with requirements imposed on the
firm by the sponsor under ORS 285C.150, 285C.155, 285C.160 or 285C.205.
     (3) The sponsor of an enterprise zone may
initiate procedures in order to verify compliance by qualified business firms
with requirements imposed under ORS 285C.050 to 285C.250. The procedures may
include written requests to the assessor by the local zone manager or an
executive official of the sponsor that the assessor exercise authority under
this section for a particular qualified business firm. [2003 c.662 §45]
(Disqualification
From Exemption)
     285C.240
Disqualification; notice and procedures; in lieu payments and additional taxes;
penalty; use of moneys. (1)
The county assessor of any county in which an enterprise zone is situated or
the sponsor shall be notified in writing by the qualified business firm or by
the owner of the qualified property leased by the qualified business firm not
later than July 1 following the assessment year for which the exemption is
claimed and in which one of the following events occurs:
     (a) Property granted exemption from
taxation under ORS 285C.175 is sold, exchanged, transported or otherwise
disposed of for use outside the enterprise zone or for use by an ineligible
business firm;
     (b) The qualified business firm closes or
so reduces eligible operations that the reduction constitutes a substantial
curtailment of operations under ORS 285C.210, unless a substantial curtailment
of operations is permitted under ORS 285C.200 (2);
     (c) The qualified business firm fails to
meet any of the qualifications required under ORS 285C.200;
     (d) The qualified business firm fails to
meet any condition that the firm is required to satisfy under ORS 285C.150,
285C.155 or 285C.205 or any term of an agreement entered into with the sponsor
under ORS 285C.160 with which the firm had agreed to comply;
     (e) The qualified business firm uses the
property to conduct activities in the enterprise zone that are not eligible
activities; or
     (f) Property of the qualified business
firm for which exemption under ORS 285C.175 is claimed ceases to be qualified
property under ORS 285C.180.
     (2) If the sponsor receives written notice
under subsection (1) of this section, the sponsor shall immediately send a copy
of the notice to the county assessor of the county in which the enterprise zone
is situated.
     (3)(a) When an assessor receives written
notice under subsection (1) or (2) of this section, the assessor shall
disqualify the property for the assessment year following the disqualifying
event and 100 percent of the additional taxes calculated under ORS 285C.175
shall be assessed against the property for each year for which the property had
been granted exemption under ORS 285C.175.
     (b) Notwithstanding paragraph (a) of this
subsection, if a qualified business firm fails to meet any of the requirements
of an agreement entered into by the firm under ORS 285C.160 during the
exemption, but meets all other applicable requirements under ORS 285C.050 to
285C.250 during the first three years of the exemption, the qualified property
of the firm may not be disqualified during the first three years of exemption
for failure to comply with the requirements of the agreement entered into under
ORS 285C.160.
     (c) The additional taxes assessed under
this subsection shall be reduced by the amount, if any, paid by the qualified
business firm to the sponsor under subsection (6) of this section for the same
property.
     (4) If the qualified business firm or
owner fails to give the notice on time or at all as required by subsection (1)
of this section, upon discovering the property no longer qualifies for the
exemption due to a circumstance described in subsection (1) of this section,
the assessor shall:
     (a) Disqualify the property from
exemption;
     (b) Compute the amount of taxes described
in subsection (3) of this section as though notice had been given, and add to
that amount an additional penalty equal to 20 percent of the total amount so
computed; and
     (c) Add the property to the assessment and
tax roll without the exemption as if the notice had been given.
     (5) The amount determined to be due under
subsections (3) and (4) of this section:
     (a) May be paid to the tax collector
before completion of the next general property tax roll pursuant to ORS
311.370; and
     (b) Shall be added to the tax extended
against the property on the next general property tax roll to be collected and
distributed in the same manner as the remainder of the property taxes.
     (6)(a) Notwithstanding subsections (3) and
(5) of this section, if an assessor or sponsor receives notice from a business
firm under subsection (1)(b), (c) or (d) of this section and the qualified
business firm has not closed its operations, the qualified business firm shall
pay the sponsor an amount equal to the property taxes for the qualified property
in the assessment year for which the exemption is claimed in lieu of the
amounts otherwise due under subsection (3) of this section.
     (b) Moneys collected under paragraph (a)
of this subsection shall be used by the sponsor to benefit the residents of the
enterprise zone and for the development of jobs, skills and training for
residents of the enterprise zone and the zoneÂ’s immediate vicinity.
     (c) This subsection applies only to the
first notice given by the business firm under subsection (1)(b), (c) or (d) of
this section.
     (d) If the sponsor does not receive the
full amount to be paid by the qualified business firm under paragraph (a) of
this subsection, the assessor shall disqualify the property and impose the
entire amount of additional taxes as prescribed under subsection (3) of this
section.
     (7) An assessor may not disqualify
property under this section for failure by a qualified business firm or an
owner of qualified property leased by the qualified business firm to notify the
assessor or the enterprise zone sponsor that the qualified business firm does
not meet requirements under ORS 285C.150, 285C.155, 285C.160 or 285C.205,
without having received written communication from the sponsor that
demonstrates that the qualified business firm does not meet the requirements.
     (8) Additional taxes collected under this
section shall be deemed to have been imposed in the year to which the
additional taxes relate.
     (9) If property is disqualified from
exemption under this section, the assessor shall notify the qualified business
firm, and the owner of any qualified property that is leased by the firm, of
the disqualification. The notification shall be made in writing. The assessor
shall provide copies of the disqualification to the sponsor, the Department of
Revenue and the Economic and Community Development Department. The decision of
the assessor to disqualify property under this section may be appealed to the
Oregon Tax Court under ORS 305.404 to 305.560. [Formerly 285B.728]
(Termination
of Enterprise Zone)
     285C.245
Termination; effect of termination on property; procedures. (1) When the termination of an enterprise
zone occurs under this section:
     (a) The termination of the enterprise zone
does not affect:
     (A) The continuation of a qualified
business firmÂ’s property tax exemption first allowed before the effective date
of the termination of the enterprise zone; or
     (B) The ability of an authorized business
firm to claim exemption under ORS 285C.175 if:
     (i) The authorization application of the
firm was filed with the sponsor before the effective date of the termination of
the zone;
     (ii) The firm remains authorized at the
time the exemption is claimed;
     (iii) The firm completes construction,
addition, modification or installation of the qualified property within a
reasonable time and without interruption of construction, addition,
modification or installation activity; and
     (iv) The property meets all other
applicable requirements for exemption under ORS 285C.175.
     (b) A business firm that is currently authorized
or qualified in the enterprise zone shall be allowed until 10 years after the
effective date of the termination of the enterprise zone to apply for
authorization under ORS 285C.140 and to subsequently claim the exemption for
any qualified property that is constructed, added, modified or installed inside
the former enterprise zone boundaries, as those boundaries existed at the time
of termination, and entirely outside of the boundaries of any current
enterprise zone. Construction, addition, modification or installation of
qualified property must commence prior to the end of the final tax year in
which qualified property of the firm is exempt under ORS 285C.175 and must be
completed within a reasonable time and without interruption of construction, addition,
modification or installation activity. The property must meet all other
applicable requirements for exemption under ORS 285C.175.
     (c) Disqualification under ORS 285C.240 of
all exempt property of the business firm after the effective date of the termination
of the enterprise zone shall prohibit and terminate all authorizations sought
or obtained by the business firm that would not otherwise be allowed except for
paragraph (b) of this subsection. Disqualification under ORS 285C.240 of all
exempt property of the business firm on or after the effective date of the
termination of the enterprise zone shall cause the assessor to deny any claim
for exemption under ORS 285C.175 of qualified property of the business firm
made in a subsequent tax year.
     (2) An enterprise zone designated by the
Director of the Economic and Community Development Department under ORS
285C.080, 285C.085 or 285C.250 shall terminate when 10 years plus that number
of days necessary to delay the date of termination to the June 30 next
following have elapsed since the enterprise zone was originally designated.
     (3) An enterprise zone designated by the
director under ORS 285C.080, 285C.085 and 285C.250 shall terminate prior to the
time specified in subsection (2) of this section only as provided in
subsections (4) to (6) of this section.
     (4) The governing body of the sponsor may
submit a resolution requesting termination of the enterprise zone to the
Economic and Community Development Department. The sponsor shall provide copies
of the resolution to the county assessor and the Department of Revenue. After
receipt of the request, the director shall order termination of the enterprise
zone and shall specify the effective date of the termination.
     (5) If a sponsor is unable or unwilling to
carry out its responsibilities under ORS 285C.105, the director shall order
termination of the enterprise zone and shall specify the effective date of the
termination. However, in the case of failure to provide enhanced local public
services, local incentives or local regulatory flexibility included in the
application for designation as an enterprise zone or in the resolution under
ORS 285C.115 (7), termination is not required if the sponsor provides to
authorized or qualified business firms new enhanced local public services,
local incentives or local regulatory flexibility that is of comparable value,
or makes reasonable corrections of shortcomings in existing local incentives. A
sponsor may reduce the time within which it will provide enhanced local public
services, local incentives and local regulatory flexibility to a time period
equal to the amount of time allowed for an exemption under ORS 285C.175 without
causing termination under this section.
     (6) An enterprise zone designated on or
after January 1, 2004, shall terminate if no qualified business firm has
located within the zone by December 31 following the date that is six years
after the date the zone was designated.
     (7) A reservation enterprise zone
designated under ORS 285C.306 shall terminate in accordance with subsection (2)
of this section, but may be redesignated at any time under ORS 285C.306. [Formerly
285B.686]
     285C.250
Designation of new zone following zone termination. (1) Within a reasonable period of time prior
to the termination of enterprise zones under ORS 285C.245 (2), the Director of
the Economic and Community Development Department shall competitively designate
the same number of enterprise zones effective immediately after termination of
the previous enterprise zones. The determination by the director as to the
areas designated as enterprise zones shall be final.
     (2) When an enterprise zone is terminated
under ORS 285B.686 (4) to (6), the director may competitively designate a new
enterprise zone. The sponsor of the enterprise zone terminated under ORS
285C.245 (4) or (5) is not eligible to apply for a new enterprise zone, except
for a county government when the terminated zone was also jointly sponsored by
one or more cities or ports.
     (3) Sponsors of existing enterprise zones
that are due to terminate may reapply for designation under subsection (1) of
this section.
     (4) Any city, county or port may apply to
the director for designation of an enterprise zone in accordance with the
criteria set forth in ORS 285C.065 and 285C.090. In addition, the Economic and
Community Development Department by rule shall determine the minimum level of
economic hardship in any area to be included within an enterprise zone, any
other criteria necessary to evaluate the need for the enterprise zone and the
potential for accomplishing the purposes of ORS 285C.050 to 285C.250.
     (5) All enterprise zones designated under
this section shall terminate in accordance with ORS 285C.245 (2).
     (6) When the director designates
enterprise zones under this section, there is no limit on the relative number
of urban or rural enterprise zones designated.
     (7) The director may determine when to
accept applications for any enterprise zone that terminates under subsection
(2) of this section or is not designated under subsection (1) of this section
for lack of qualified applicants. [Formerly 285B.689; 2005 c.94 §10; 2005 c.704
§12]
(Sunset Date)
     285C.255
Sunset of enterprise zone program. (1) Notwithstanding any other provision of ORS 285C.050 to 285C.250:
     (a) An area may not be designated as an
enterprise zone after June 30, 2013;
     (b) A business firm may not obtain
authorization under ORS 285C.140 after June 30, 2013; and
     (c) An enterprise zone, except for a
reservation enterprise zone, that is in existence on June 29, 2013, is
terminated on June 30, 2013.
     (2) Notwithstanding subsection (1) of this
section:
     (a) A reservation enterprise zone may be
designated under ORS 285C.306 after June 30, 2013; and
     (b) A business firm may obtain
authorization under ORS 285C.140 after June 30, 2013:
     (A) If located in a reservation enterprise
zone; or
     (B) As allowed under ORS 285C.245 (1)(b). [2003
c.662 §49; 2007 c.888 §1]
     Note: 285C.255 was enacted into law by the
Legislative Assembly but was not added to or made a part of ORS chapter 285C or
any series therein by legislative action. See Preface to Oregon Revised
Statutes for further explanation.
     285C.260 [Formerly 285B.731; renumbered 285C.045 in
2005]
RESERVATION
ENTERPRISE ZONES
     285C.300
Definitions for ORS 285C.300 to 285C.320. As used in ORS 285C.300 to 285C.320:
     (1) “Eligible business” means a business
that:
     (a) Is engaged within a reservation
enterprise zone in the manufacture or provision of goods, products or services
to other businesses or to the general public, through activities including, but
not limited to, manufacturing, assembly, fabrication, processing, shipping,
storage, retail sales or services, child care, housing, retail food service,
health care, tourism, entertainment, financial services, professional services,
energy development, construction or similar activities; and
     (b) Occupies or owns a new business
facility within a reservation enterprise zone.
     (2) “New business facility”:
     (a) Means a physical asset within a
reservation enterprise zone that satisfies the following requirements:
     (A) The facility is used by a business in
the operation of a revenue-producing enterprise, except that the
revenue-producing enterprise must consist of activity other than leasing the
facility to another person; and
     (B) The facility is acquired by or leased
to a business on or after January 1, 2002, including a facility, the title or
possession of which is transferred to the business on or after January 1, 2002,
or a facility, the construction, erection or installation of which is completed
on or after January 1, 2002;
     (b) Subject to paragraph (c) of this
subsection, includes a facility acquired or leased from a person that used the
facility in a revenue-producing enterprise within the boundaries of the same
Indian reservation immediately prior to the transfer of title or possession of
the facility to the business; and
     (c) Does not include:
     (A) A facility that is used in a
revenue-producing enterprise that is the same or substantially identical to the
revenue-producing enterprise in which the facility was previously used within
the boundaries of the same Indian reservation; or
     (B) Any property that merely replaces
existing property and that does not expand the capacity of the
revenue-producing enterprise in which the facility is to be used.
     (3) “Reservation enterprise zone” means a
zone designated by ORS 285C.306.
     (4) “Tribal government” means the
governing body of an Indian tribe, if the governing body has the authority to
levy, impose and collect taxes within the boundaries of the reservation of the
tribe.
     (5) “Tribal tax” means any specific tax
that is or may be levied or imposed by a tribal government upon a business and
that is measured with reference to a specific level or quantity of that
business’s income, operations, use or ownership of property. “Tribal tax”
includes, but is not limited to, an income or excise tax, an ad valorem
property tax, a gross receipts tax or a sales and use tax. [Formerly 285B.766]
     285C.303
Legislative findings. The
Legislative Assembly finds that the welfare of the residents of the rural
Indian reservations of this state is acutely dependent upon the growth,
development and expansion of employment and business opportunities within
reservation boundaries. Geographic and other obstacles have made it difficult
for rural Indian reservations to attract and retain private business
investment. The tax systems of this state, by subjecting businesses located
within reservation boundaries to state taxation in addition to any taxation
imposed by the reservations themselves, has heightened the economic isolation
of this stateÂ’s rural reservations and impeded the efforts of Indian tribes to
develop sufficient tax bases to fund essential governmental services on their
reservations. The Legislative Assembly further finds that it is in the best
interests of this state to create equality that will enable rural Indian
reservations to attract and retain private business investment. The Legislative
Assembly declares that it is the purpose of ORS 285C.300 to 285C.320 to remove
the tax disincentives that currently inhibit private business and industry from
locating and operating enterprises within the boundaries of the rural Indian
reservations of this state. [Formerly 285B.767]
     285C.306
Reservation enterprise zones.
(1) Trust land of an Indian tribe that meets all of the following requirements
is designated as a reservation enterprise zone for the purposes of ORS 285C.300
to 285C.320:
     (a) The Indian tribe is a federally
recognized Indian tribe;
     (b) The reservation of the Indian tribe is
entirely within the boundaries of this state;
     (c) The land for which zone designation is
sought is land held in trust by the
     (d) Fifty percent or more of the
households within the boundaries of the reservation have incomes below 80
percent of the median income of this state, as defined by the most recent
federal decennial census; and
     (e) The unemployment rate within the
reservation for all enrolled members of the tribe is at least 2.0 percentage
points greater than the comparable unemployment rate for this state, as defined
by the most recently available data published or officially provided and
verified by the United States Government, the Employment Department, the
Portland State University Population Research Center or a special study
conducted under a contract with a regional academic institution.
     (2) At the request of a tribal government,
the Economic and Community Development Department shall determine if trust land
is designated as a reservation enterprise zone under this section. [Formerly
285B.770; 2005 c.704 §3; 2007 c.71 §86]
     285C.309
Income tax credit for new business facility in reservation enterprise zone. (1) A credit against the taxes that are
otherwise due under ORS chapter 316 or, if the taxpayer is a corporation, under
ORS chapter 317 or 318, is allowed to an eligible business operating a new
business facility in a reservation enterprise zone.
     (2) The amount of the credit allowed to
the eligible business shall equal:
     (a) The amount of tribal property tax
imposed on a new business facility of an eligible business that is paid or
incurred by the eligible business during the income or corporate excise tax
year of the eligible business; or
     (b) If the eligible business has not
previously conducted business operations within the reservation enterprise
zone, the amount of tribal tax paid or incurred by the eligible business during
the income or corporate excise tax year of the eligible business.
     (3) The credit allowed to the eligible
business may not exceed the tax liability of the eligible business for the tax
year and may not be carried over to another tax year.
     (4) A credit is allowable under this
section only to the extent the tribal tax on which the credit is based is
imposed on businesses not owned by Indians on a uniform basis within the
territory over which the tribal government has the authority to levy, impose
and collect taxes.
     (5) The credit shall be claimed on a form
prescribed by the Department of Revenue containing the information required by
the department, including information sufficient for the department to
determine that the taxpayer is an eligible business and that the facility
operated by the business is a new business facility.
     (6) An eligible nonresident individual
shall be allowed the credit computed in the same manner and subject to the same
limitations as the credit allowed a resident by subsection (1) of this section.
However, the credit shall be prorated using the proportion provided in ORS
316.117.
     (7) If a change in the taxable year of a
taxpayer occurs as described in ORS 314.085, or if the Department of Revenue
terminates the taxpayerÂ’s taxable year under ORS 314.440, the credit allowed by
this section shall be prorated or computed in a manner consistent with ORS
314.085.
     (8) If a change in the status of a
taxpayer from resident to nonresident or from nonresident to resident occurs,
the credit allowed by this section shall be determined in a manner consistent
with ORS 316.117.
     (9) An eligible business claiming a credit
under this section shall maintain records sufficient to authenticate the
allowance of the credit claimed under this section and shall furnish the
department with these records upon the request of the department.
     (10) A credit claimed by an eligible
business may not be disallowed solely because the eligible business conducts
business operations both within and outside of a reservation enterprise zone. [Formerly
285B.773]
     285C.320
Status of reservation enterprise zone; sponsor. (1) A reservation enterprise zone shall be
considered to be a rural enterprise zone for purposes of ORS 285C.050 to
285C.250. The tribal government of the reservation shall be considered to be
the sponsor of the reservation enterprise zone.
     (2) Reservation enterprise zones may not
be taken into account in determining the number of rural enterprise zones
allowable in this state under ORS 285C.050 to 285C.250, and are not subject to
numerical limitation under ORS 285C.050 to 285C.250.
     (3) In order for property within a
reservation enterprise zone to be exempt under ORS 285C.175, the business firm
and property must meet all of the requirements applicable to business firms and
property in any rural enterprise zone.
     (4) As used in this section, “business
firm” has the meaning given that term in ORS 285C.050. [Formerly 285B.776; 2005
c.94 §11]
RURAL
RENEWABLE ENERGY DEVELOPMENT ZONES
     285C.350
Definitions for ORS 285C.350 to 285C.370. As used in ORS 285C.350 to 285C.370:
     (1) “Applicant” means the city, county or
group of counties applying for designation of territory as a rural renewable
energy development zone.
     (2) “Renewable energy” means electricity
that is generated through use of a renewable energy resource, as defined in ORS
469.185, or a liquid, gaseous or solid fuel for commercial sale or distribution
that is one of the following:
     (a) A biofuel, such as biodiesel or
ethanol, as those terms are defined in ORS 646.905, that is derived from an
organic source. As used in this paragraph, “biofuel” includes, but is not
limited, to raw biomass harvested for biofuel or suitable by-products, residue
from agriculture, forestry or other industries and residue from commercial or municipal
waste collection.
     (b) A fuel additive that has been verified
under the United States Environmental Protection AgencyÂ’s Environmental
Technology Verification Program or the California Air Resources Board
verification program and is composed of at least 90 percent renewable
materials.
     (3) “Rural area” means an area in the
state that is not within the urban growth boundary of a city with a population
of 30,000 or more. [2003 c.662 §69; 2005 c.94 §12; 2007 c.739 §9]
     285C.353
Designation of rural renewable energy development zones; requirements; multiple
designations; zone sponsor.
(1) A county, a city in a rural area or a combination of contiguous counties
may apply to the Director of the Economic and Community Development Department
for designation of the entire territory of the applicant that is located in a
rural area as a rural renewable energy development zone.
     (2) An application for designation of a
rural renewable energy development zone shall be in such form and shall contain
such information as the Economic and Community Development Department
prescribes by rule. The application shall include a copy of the resolution of
the governing body of the city or each county that constitutes the applicant
that states that the city or county seeks rural renewable energy development
zone designation.
     (3) The director shall approve designation
of the territory of the applicant as a rural renewable energy development zone,
excluding any territory of an applicant that is not within a rural area at the
time of designation.
     (4)(a) The designation of an area as a
rural renewable energy development zone authorizes the exemption of up to an
amount, determined as prescribed in paragraph (d) of this subsection, in real
market value of property described in ORS 285C.359 that meets the requirements
for exemption under ORS 285C.362.
     (b) An applicant may seek subsequent
additional designations under this section. An application for additional
designation shall be made in the same manner as an application for initial
designation, and shall be approved by the director if the application for
additional designation meets the qualifications for designation under
subsection (3) of this section.
     (c) Each additional designation approved
under this section authorizes the exemption of a new amount, determined as
prescribed in paragraph (d) of this subsection, in real market value of
property described in ORS 285C.359 that meets the requirements for exemption
under ORS 285C.362.
     (d) Each amount authorized for exemption
under this section shall be determined as follows:
     (A) The amount shall be set forth in the
resolution described in subsection (2) of this section.
     (B) If no amount is specified in the
resolution described in subsection (2) of this section, the amount shall be $250
million.
     (C) The amount may not exceed $250 million
for any single designation under this section.
     (D) The amount applies only to exemptions
first claimed for a tax year that begins after January 1 following the date of
adoption of the resolution described in subsection (2) of this section.
     (5) If an application for designation was
made by one city or county, that city or county shall serve as sponsor of the
rural renewable energy development zone. If the application for designation was
made by two or more counties, the application shall identify which county shall
serve as the sponsor of the zone. [2003 c.662 §70; 2005 c.595 §4; 2007 c.739 §9a]
     285C.356
Application for authorization.
(1) Following designation of a rural renewable energy development zone, an
eligible business firm seeking an exemption under ORS 285C.362 may apply for
authorization under ORS 285C.140.
     (2) The firm shall include a written
description of the locations, extent and expected real market value of the
proposed renewable energy development project.
     (3) The firm shall be authorized if the
firm would otherwise be authorized under ORS 285C.140, but the authorization is
limited to investments in the renewable energy development project described in
the application submitted by the firm. [2003 c.662 §71]
     285C.359
Qualified property. Property
shall qualify for exemption under ORS 285C.362 if the property meets all of the
following requirements:
     (1) The property constitutes all or a part
of a facility used to generate renewable energy or is used to support or
maintain a renewable energy facility;
     (2) The property is newly constructed or
installed in the rural renewable energy development zone; and
     (3) The property meets all other
requirements for qualification under ORS 285C.180. [2003 c.662 §72]
     285C.362
Exemption; requirements; duration. (1) Property of an authorized business firm is exempt from ad valorem
property taxation if:
     (a) The property is qualified property
under ORS 285C.359;
     (b) The firm meets the qualifications
under ORS 285C.200; and
     (c) The firm has entered into a
first-source hiring agreement under ORS 285C.215.
     (2)(a) Property described in subsection
(1) of this section is exempt from ad valorem property taxation only to the
extent the real market value of the property, when added to the real market
value of all other property in the rural renewable energy development zone that
has received an exemption under this section, is less than the exemption
authorization level established for the zone under ORS 285C.353 (4).
     (b) For purposes of this subsection, real
market value shall be determined as of the assessment date for the first year
that property is exempt under this section.
     (3) The exemption allowed under this
section applies to the first tax year for which, as of January 1 preceding the
tax year, the qualified property is in service. The exemption shall continue
for the next two succeeding tax years if the property continues to be owned or
leased by the business firm, operated to generate renewable energy or to
support or maintain renewable energy facilities, and located in the rural
renewable energy development zone.
     (4)(a) The property may be exempt from
property taxation under this section for up to two additional tax years
consecutively following the tax years described in subsection (3) of this
section if authorized by a written agreement entered into by the firm and the
sponsor under ORS 285C.160.
     (b) Notwithstanding ORS 285C.160, a
contiguous county that applied for a rural renewable energy development zone
designation may elect to not participate in a two-year extension of the
exemption under this subsection. The election shall be made by resolution of
the governing body of the contiguous county on or before execution of the
written agreement between the firm and the sponsor under ORS 285C.160. [2003
c.662 §73]
     285C.365
Application of enterprise zone laws. Except where inconsistent with the provisions of ORS 285C.350 to
285C.370, the provisions of ORS 285C.050 to 285C.250 apply to rural renewable
energy development zones as if rural renewable energy development zones were
enterprise zones, and to the exemption or disqualification from exemption of
property located in rural renewable energy development zones. [2003 c.662 §74]
     285C.370
Rules. The Economic and
Community Development Department may adopt rules for implementing and
administering ORS 285C.350 to 285C.370, including rules that define terms. [2003
c.662 §75]
LONG TERM TAX
INCENTIVES FOR RURAL ENTERPRISE ZONES
     285C.400
Definitions for ORS 285C.400 to 285C.420. As used in ORS 285C.400 to 285C.420:
     (1) “Business firm” has the meaning given
that term in ORS 285C.050.
     (2) “Certified business firm” means a
business firm that has been certified under ORS 285C.403.
     (3) “County with chronically low income or
chronic unemployment” means, based on the most recently revised annual average
unemployment rate or annual per capita income levels available, a county in
which:
     (a) The median ratio of the per capita
personal income of the county to the equivalent annual personal income figure
of the entire United States for each year, as reported by the Bureau of
Economic Analysis of the United States Department of Commerce, is equal to or
less than 0.75 over the last 10 years;
     (b) The median ratio of the unemployment
rate of the county to the equivalent rate of the entire United States for each
year is at least 1.3 over the last 20 years or over the last 10 years; or
     (c) The population of the county has
experienced a negative net migration, irrespective of natural population
change, since the most recent federal decennial census occurring three or more
years prior to the current estimated population figure for the county, based on
available population statistics.
     (4) “Facility” means the land, real property
improvements and personal property that are used:
     (a) At a location in a rural enterprise
zone that is identified in the application for certification under ORS
285C.403; and
     (b) In those business operations of the
business firm that are the subject of the application for certification under
ORS 285C.403.
     (5) “Rural enterprise zone” has the
meaning given that term in ORS 285C.050. [Formerly 285B.781; 2005 c.94 §13]
     285C.403
Certification of business firm; application; review; appeal. (1) Any business firm proposing to apply for
the tax exemption provided under ORS 285C.409 shall, before the commencement of
construction or installation of property or improvements at a location in a
rural enterprise zone and before the hiring of employees, apply for
certification with the sponsor of the zone and with the county assessor of the
county or counties in which the zone is located. The application shall be made
on a form prescribed by the Department of Revenue.
     (2) The application shall contain the
following information:
     (a) A description of the firm’s proposed
business operations and facility in the rural enterprise zone;
     (b) A description and estimated cost or
value of the property or improvements to be constructed or installed at the
facility;
     (c) An estimate of the number of employees
at the facility that will be hired by the firm;
     (d) A commitment to meet the applicable
requirements of ORS 285C.412;
     (e) A commitment to satisfy all additional
conditions agreed to pursuant to the written agreement between the rural
enterprise zone sponsor and the business firm under subsection (3)(c) of this
section; and
     (f) Any other information considered
necessary by the Department of Revenue.
     (3) The sponsor and the county assessor
shall certify the business firm by approving the application if the sponsor and
the county assessor determine that all of the following requirements have been
met:
     (a) The governing body of the county and
city in which the facility is located has adopted a resolution approving the property
tax exemption for the facility.
     (b) The business firm has committed to
meet the applicable requirements of ORS 285C.412.
     (c) The business firm has entered into a
written agreement with the sponsor of the rural enterprise zone that may
include any additional requirements that the sponsor may reasonably request,
including but not limited to contributions for local services or infrastructure
benefiting the facility. The written agreement shall state the number of
consecutive tax years for which the facility, following commencement of
operations, is to be exempt from property tax under ORS 285C.409. The agreement
may not provide for a period of exemption that is less than seven consecutive
tax years or more than 15 consecutive tax years. If the agreement is silent on
the number of tax years for which the facility is to be exempt following
placement in service, the exemption shall be for seven consecutive tax years.
     (d) The facility is located in a county
with chronically low income or chronic unemployment, based on the most recently
revised annual data available when the written agreement with the zone sponsor
is executed.
     (4) The approval of an application by both
the sponsor and the county assessor under subsection (3) of this section shall
be prima facie evidence that the business firm will qualify for the property
tax exemption under ORS 285C.409.
     (5) The sponsor and the county assessor
shall provide copies of an approved application to the applicant, the
Department of Revenue and the Economic and Community Development Department.
     (6) If the sponsor or the county assessor
fails or refuses to certify the business firm, the business firm may appeal to
the Oregon Tax Court under ORS 305.404 to 305.560. The business firm shall
provide copies of the firmÂ’s appeal to the sponsor, the county assessor, the
Economic and Community Development Department and the Department of Revenue. [Formerly
285B.783; 2005 c.94 §14]
     285C.406
Claiming property tax exemption or income tax credit. In order for a taxpayer to claim the
property tax exemption under ORS 285C.409 or a corporate excise or income tax
credit under ORS 317.124:
     (1) The written agreement between the
business firm and the rural enterprise zone sponsor that is required under ORS
285C.403 (3)(c) must be entered into prior to the termination of the enterprise
zone under ORS 285C.245; and
     (2) The business firm must obtain
certification under ORS 285C.403 on or before June 30, 2013. [Formerly
285B.796; 2005 c.94 §15; 2005 c.667 §3; 2007 c.888 §2]
     285C.409
Property tax exemption; requirements; duration. (1) A facility of a certified business firm
is exempt from ad valorem property taxation:
     (a) For the first tax year following the
calendar year in which the business firm is certified under ORS 285C.403 or after
which construction or reconstruction of the facility commences, whichever event
occurs later;
     (b) For each subsequent tax year in which
the facility is not yet in service as of the assessment date; and
     (c) For a period of at least seven
consecutive tax years but not more than 15 consecutive tax years, as provided
in the written agreement between the business firm and the rural enterprise
zone sponsor under ORS 285C.403 (3)(c), if the facility satisfies the
requirements of ORS 285C.412. The period described in this paragraph shall
commence as of the first tax year in which the facility is in service as of the
assessment date.
     (2) An exemption under this section may
not be allowed for real or personal property that has received a property tax
exemption under ORS 285C.170 or 285C.175.
     (3) For each tax year that the facility is
exempt from taxation under this section, the county assessor shall:
     (a) Enter on the assessment and tax roll,
as a notation, the real market value and assessed value of the facility.
     (b) Enter on the assessment and tax roll,
as a notation, the amount of tax that would be due if the facility were not
exempt.
     (c) Indicate on the assessment and tax
roll that the property is exempt and is subject to potential additional taxes
as provided in ORS 285C.420 by adding the notation “enterprise zone exemption
(potential additional tax).”
     (4) The amount determined under subsection
(3)(b) of this section and the name of the business firm shall be reported to
the Department of Revenue on or before December 31 of each tax year so that the
department may compute the distributions described in ORS 317.131.
     (5) The following property may not be
exempt from property taxation under this section:
     (a) Land.
     (b) Any property that existed at the facility
on an assessment date before the assessment date for the first tax year for
which property of the firm is exempt under this section. [Formerly 285B.786;
2005 c.94 §16]
     285C.412
Conditions for continued exemption. In order for a facility of a business firm to continue to be exempt
from ad valorem property taxation under ORS 285C.409 for a tax year following
the first assessment date on which the facility is in service, all of the
conditions of any one of the alternative subsections in this section must be
met:
     (1) In order for the exemption under ORS
285C.409 (1)(c) to be allowable pursuant to this subsection:
     (a) By the end of the calendar year in
which the facility is placed in service, the total cost of the facility exceeds
the lesser of $25 million or one percent of the real market value of all
nonexempt taxable property in the county in which the facility is located, as
determined for the assessment year in which the business firm is certified (and
rounded to the nearest $10 million of such value);
     (b) The business firm hires or will hire
at least 75 full-time employees at the facility by the end of the fifth
calendar year following the year in which the facility is placed in service;
and
     (c) The annual average compensation for
employees, based on payroll, at the business firmÂ’s facility is at least 150
percent of the average wage in the county in which the facility is located.
This requirement may be initially met in any year during the first five years
after the year in which operation of the facility begins, and thereafter is met
if the annual average compensation at the facility for the year exceeds the
average wage in the county for the year in which the requirement is initially
met.
     (2) In order for the exemption under ORS
285C.409 (1)(c) to be allowable pursuant to this subsection:
     (a) The facility meets the total cost
requirements set forth in subsection (1)(a) of this section;
     (b) The business firm meets the annual
average compensation requirements set forth in subsection (1)(c) of this
section; and
     (c)(A) The business firm hires or will
hire at least 10 full-time employees at the facility by the end of the third
calendar year following the year in which the facility is placed in service,
and at the time that the business firm is certified, the location of the
facility is in a county with a population of 10,000 or fewer; or
     (B) The business firm hires or will hire
at least 35 full-time employees at the facility by the end of the third
calendar year following the year in which the facility is placed in service,
and at the time that the business firm is certified, the location of the
facility is in a county with a population of 40,000 or fewer.
     (3) In order for the exemption under ORS
285C.409 (1)(c) to be allowable pursuant to this subsection:
     (a) By the end of the calendar year in
which the facility is placed in service, the total cost of the facility exceeds
the lesser of $12.5 million or one-half of one percent of the real market value
of all nonexempt taxable property in the county in which the facility is
located, as determined for the assessment year in which the business firm is
certified (and rounded to the nearest $10 million of such value);
     (b) At the time that the business firm is
certified, the location of the facility is 10 or more miles from Interstate
Highway 5, as measured between the two closest points between the facility site
and anywhere along that interstate highway;
     (c) The business firm meets the annual
average compensation requirements set forth in subsection (1)(c) of this
section; and
     (d)(A) The business firm hires or will
hire at least 50 full-time employees at the facility by the end of the third
calendar year following the year in which the facility is placed in service; or
     (B) The business firm satisfies the
requirements of subsection (2)(c)(A) or (B) of this section.
     (4) In order for the exemption under ORS
285C.409 (1)(c) to be allowable pursuant to this subsection:
     (a) Within three years either before or
after the property tax year in which the facility is placed in service, the
business firm places one or more other facilities in the same or another
enterprise zone for which the business firm is certified and otherwise meets
the requirements of ORS 285C.400 to 285C.420;
     (b) The total cost of all facilities of
the business firm exceeds $25 million by the end of the calendar year in which
the last such facility is placed in service;
     (c) The business firm meets the annual
average compensation requirements set forth in subsection (1)(c) of this
section independently for each facility of the firm; and
     (d) The business firm hires or will hire a
total of at least 100 full-time employees at all of the firmÂ’s facilities by
the end of the fifth calendar year following the year in which the first such
facility is placed in service.
     (5) In order for the exemption under ORS
285C.409 (1)(c) to be allowable pursuant to this subsection:
     (a) By the end of the calendar year in
which the facility is placed in service, the total cost of the facility exceeds
$200 million;
     (b) At the time that the business firm is
certified, the location of the facility meets the siting requirements of
subsection (3)(b) of this section;
     (c) The business firm hires or will hire
at least 10 full-time employees at the facility by the end of the third
calendar year following the year in which the facility is placed in service;
and
     (d) The business firm meets the annual
average compensation requirements set forth in subsection (1)(c) of this
section. [Formerly 285B.789]
     285C.415
Notice to county assessor.
Upon meeting the applicable requirements of ORS 285C.412, the certified
business firm shall notify the county assessor in writing that the applicable
requirements have been met. [Formerly 285B.790]
     285C.420
Disqualification; exception; additional taxes. (1) If a certified business firm does not
begin operations or is not reasonably expected to begin operations, as
determined by the county assessor consistent with criteria established by rule
of the Department of Revenue, or fails to meet the minimum requirements set
forth in ORS 285C.412, while receiving an exemption under ORS 285C.409, the
assessor shall, as of the next tax year, disqualify the property from the
exemption.
     (2)(a) If a certified business firm that
has achieved the minimum applicable full-time hiring requirements and annual
average wage requirements at a facility under ORS 285C.412 subsequently fails
to maintain the applicable minimum number of full-time employees or the minimum
annual average compensation level at the facility, the assessor shall
disqualify the facility from exemption under ORS 285C.409.
     (b) This subsection does not apply if the
decrease in hiring or in annual average compensation is caused by circumstances
beyond the control of the business firm, including force majeure.
     (3) Upon disqualification, there shall be
added to the tax extended against the property on the next general property tax
roll, to be collected and distributed in the same manner as the remainder of ad
valorem property taxes, an amount equal to the taxes that would otherwise have
been assessed against the property and improvements for each of the tax years
for which the property was exempt under ORS 285C.409.
     (4) The additional taxes described in this
section shall be deemed assessed and imposed in the year to which the
additional taxes relate. [Formerly 285B.793]
     285C.450 [Formerly 285B.825; 2005 c.119 §2;
renumbered 307.841 in 2005]
     285C.453 [Formerly 285B.827; 2005 c.119 §3;
renumbered 307.844 in 2005]
     285C.456 [Formerly 285B.830; 2005 c.119 §4;
renumbered 307.847 in 2005]
     285C.459 [Formerly 285B.833; 2005 c.119 §5;
renumbered 307.851 in 2005]
     285C.462 [Formerly 285B.848; 2005 c.119 §6;
renumbered 307.854 in 2005]
     285C.465 [Formerly 285B.839; 2005 c.119 §7;
renumbered 307.857 in 2005]
     285C.468 [Formerly 285B.842; 2005 c.119 §8;
renumbered 307.861 in 2005]
     285C.471 [Formerly 285B.845; 2005 c.119 §9;
renumbered 307.864 in 2005]
     285C.480 [Formerly 285B.836; 2005 c.119 §10;
renumbered 307.867 in 2005]
BUSINESS
DEVELOPMENT INCOME TAX EXEMPTION
     285C.495
Short title. ORS 285C.500 to
285C.506 may be cited as the Oregon Investment Advantage Act. [2007 c.843 §77]
     285C.500
Definitions for ORS 285C.500 to 285C.506. As used in ORS 285C.500 to 285C.506:
     (1) “Business firm” has the meaning given
that term in ORS 285C.050.
     (2) “County per capita personal income”
means the per capita personal income level published by the Bureau of Economic
Analysis of the United States Department of Commerce for a county.
     (3) “County unemployment rate” means the
most recently available unemployment rate for the county, as determined by the
Employment Department.
     (4) “Facility” means the land, real
property improvements and personal property that are used by a business firm to
conduct business operations, and that are the subject of an application for
preliminary certification under ORS 285C.503 or annual certification under ORS
285C.506.
     (5) “Qualified location” means any area
that is:
     (a) Zoned for industrial use or is within
the urban growth boundary of a city that has 15,000 or fewer residents; and
     (b) Located in a county that, during
either of the two years preceding the date an application for preliminary
certification is filed under ORS 285C.503, had both:
     (A) A county unemployment rate that was in
the highest quartile of county unemployment rates in this state; and
     (B) A county per capita personal income
that was in the lowest third of county per capita personal incomes in this
state.
     (6) “Urban growth boundary” means an urban
growth boundary contained in a city or county comprehensive plan that has been
acknowledged by the Land Conservation and Development Commission pursuant to
ORS 197.251 or an urban growth boundary that has been adopted by a metropolitan
service district under ORS 268.390 (3). [Formerly 285B.103; 2005 c.94 §17]
     Note: The amendments to 285C.500 by section 1,
chapter 595, Oregon Laws 2005, apply to preliminary certifications issued under
ORS 285C.503 on or after January 1, 2011, and annual certifications issued
under ORS 285C.506 that are associated with preliminary certifications issued
under ORS 285C.503 on or after January 1, 2011. See section 2, chapter 595,
Oregon Laws 2005. 285C.500, as amended by section 1, chapter 595, Oregon Laws
2005, is set forth for the userÂ’s convenience.
     285C.500. As used in ORS 285C.500 to 285C.506:
     (1) “Business firm” has the meaning given
that term in ORS 285C.050.
     (2) “County per capita personal income”
means the per capita personal income level published by the Bureau of Economic
Analysis of the United States Department of Commerce for a county.
     (3) “County unemployment rate” means the
most recently available unemployment rate for the county, as determined by the
Employment Department.
     (4) “Facility” means the land, real
property improvements and personal property that are used by a business firm to
conduct business operations, and that are the subject of an application for
preliminary certification under ORS 285C.503 or annual certification under ORS
285C.506.
     (5) “Qualified location” means any area
that is:
     (a) Zoned for industrial use or is within
the urban growth boundary of a city that has 15,000 or fewer residents; and
     (b) Located in a county that, during
either of the two years preceding the date an application for preliminary
certification is filed under ORS 285C.503, had both:
     (A) A county unemployment rate that was in
the top half of county unemployment rates in this state; and
     (B) A county per capita personal income
that was in the bottom half of county per capita personal incomes in this
state.
     (6) “Urban growth boundary” means an urban
growth boundary contained in a city or county comprehensive plan that has been
acknowledged by the Land Conservation and Development Commission pursuant to
ORS 197.251 or an urban growth boundary that has been adopted by a metropolitan
service district under ORS 268.390 (3).
     Note: Section 3, chapter 595, Oregon Laws 2005,
provides:
     Sec.
3. Notwithstanding ORS
285C.500 (5), for purposes of preliminary certifications issued under ORS 285C.503
on or after January 1, 2006, and before January 1, 2011, and annual
certifications issued under ORS 285C.506 that are associated with preliminary
certifications issued under ORS 285C.503 on or after January 1, 2006, and
before January 1, 2011:
     (1) “Qualified location” means any area
that is:
     (a) Within the urban growth boundary of a
city that has 15,000 or fewer residents or is land zoned for industrial use;
and
     (b) Located in a county that, during
either of the two years preceding the date an application for preliminary
certification is filed under ORS 285C.503 and this section, had:
     (A) A county unemployment rate that was in
the highest third of county unemployment rates in this state; or
     (B) A county per capita personal income
that was in the lowest third of county per capita personal incomes in this
state.
     (2) The minimum annual compensation
requirements of ORS 285C.503 (5)(d) do not apply.
     (3) In lieu of the requirements of ORS
285C.506 (5), the Economic and Community Development Department shall approve
an application for annual certification if the business firm satisfies the
requirements of ORS 285C.506 (5)(a) and (6)(c) and the business firm satisfies
the employment requirements of ORS 285C.503 (5)(c). [2005 c.595 §3; 2007 c.843 §79]
     285C.503
Preliminary certification of facility; application; fee; review; appeal. (1) A business firm seeking the income and
corporate excise tax exemption allowed under ORS 316.778 or 317.391 shall,
before the commencement of construction, reconstruction, modification or
installation of property or improvements at the location for which the
exemption is sought and before the hiring of any employees at that location,
apply to the Economic and Community Development Department for preliminary
certification under this section.
     (2) The application shall be on a form
prescribed by the department and shall contain the following information:
     (a) The proposed location of the facility;
     (b) A description of the property to be
constructed, reconstructed, modified, acquired, installed or leased and that is
to comprise the facility when the business firm commences business operations
at the facility;
     (c) If any property described in paragraph
(b) of this subsection is to be leased, the term of the lease;
     (d) The number of full-time, year-round
employees the business firm intends to hire;
     (e) The minimum annual average
compensation intended to be given to the employees described in paragraph (d)
of this subsection;
     (f) A description of any other business
activities of the firm in this state at the time of application, sufficient for
the department to be able to determine if the proposed facility will constitute
a new business in this state; and
     (g) Any other information that the
department requires.
     (3) An application filed under this
section must be accompanied by a fee in an amount prescribed by the Economic
and Community Development Department by rule. The fee required by the
department may not exceed $500.
     (4)(a) When an application is filed under
this section, the department shall send copies of the application to the
governing bodies of the city and county in which the facility is proposed to be
located. If the facility is to be located within a port, the department shall
also send a copy of the application to the governing body of the port.
     (b) The governing body of a city, port or
county described in paragraph (a) of this subsection may object to the
preliminary certification of a business firm if the firm would be:
     (A) In competition with an existing
business employing individuals within the city, port or county; or
     (B) Incompatible with economic growth or
development standards that the city, port or county had adopted prior to the
date of application for preliminary certification.
     (c) If the governing body of the city,
port or county decides to object to preliminary certification of the firm, the
governing body shall adopt a resolution stating its objection and the reason
for its objection.
     (d) The governing body of a city, port or
county has 60 days from the date the application is sent to the city, port or
county to object to preliminary certification. If the objection is not made
within the 60-day period, the city, port or county shall be deemed to have
agreed to preliminary certification.
     (5) When an application is filed under
this section, the department shall review the application and determine whether
all of the following requirements are met:
     (a) The proposed facility is to be located
at a qualified location.
     (b) The proposed facility is intended to
operate as a facility for at least 10 years following the date the facility
becomes operational.
     (c) The business firm intends to hire at
least five employees for full-time, year-round employment.
     (d) The newly hired employees described in
paragraph (c) of this subsection are to receive a minimum annual compensation
of:
     (A) 150 percent of the county per capita
personal income of the county in which the facility is to be located as of the
date of the application for preliminary certification; or
     (B) 100 percent of the county per capita
personal income of the county in which the facility is to be located as of the
date of the application for preliminary certification and the business firm
will provide health insurance coverage to the employees at the facility who are
described in paragraph (c) of this subsection that equals or exceeds the health
insurance benefits provided to employees of the city, port or county in which
the facility is to be located.
     (e) The business operations of the
business firm that are to be conducted at the facility constitute a new
business that the firm does not operate at another location in this state.
     (f) The business operations of the
business firm will not compete with existing businesses in the city or county
in which the facility is to be located.
     (6) If the department determines that the
proposed facility, if completed as described in the application, meets the
criteria set forth in subsection (5) of this section and the governing body of
the city, port or county does not object under subsection (4) of this section
to preliminary certification of the firm, the department shall issue a
preliminary certification to the firm.
     (7) If the department determines that the
proposed facility, as set forth in the application, does not meet the
requirements for preliminary certification under this section, the department
may not issue a preliminary certification. The applicant may appeal the
decision to not issue a preliminary certification in the manner of a contested
case under ORS chapter 183. No appeal may be made if the reason for not issuing
a preliminary certification is the objection of the governing body of the city,
port or county under subsection (4) of this section. [Formerly 285B.105]
     285C.506
Annual certification of facility; application; fee; review; appeal; duration of
certification. (1) Following
completion of the construction, reconstruction, modification, acquisition,
installation or lease of the facility, the hiring of employees to conduct
business operations at the facility and the commencement of operations at the
facility, a business firm that obtained preliminary certification under ORS
285C.503 may apply for annual certification under this section.
     (2) The application shall be filed with
the Economic and Community Development Department on or before 30 days after
the end of the income or corporate excise tax year of the business firm.
     (3) The application shall contain the
following information:
     (a) A description of the business
operations conducted at the facility;
     (b) The date business operations commenced
at the facility;
     (c) The number of full-time, year-round
employees employed by the business firm at the facility;
     (d) A schedule of the annual compensation
paid to the employees; and
     (e) Any other information required by the
department.
     (4) An application filed under this
section must be accompanied by a fee in an amount prescribed by the department
by rule. The fee required by the department may not exceed $100.
     (5) The department shall review a business
firmÂ’s application and approve the application if:
     (a) The business operations of the firm at
the facility commenced within 10 years before the end of the tax year preceding
the date of application for annual certification; and
     (b) The business firm has satisfied the
employment and minimum compensation requirements described in ORS 285C.503
(5)(c) and (d).
     (6) In the case of the first application
for annual certification filed by a business firm under this section, the
department may approve the application only if, in addition to the requirements
of subsection (5) of this section:
     (a) Business operations commenced at the
facility within a reasonable period of time, as determined by the department by
rule, following the date of preliminary certification under ORS 285C.503;
     (b) There has not been a significant
interruption in construction, reconstruction, modification or installation
activity at the location, as determined by the department by rule, following
the date of preliminary certification under ORS 285C.503; and
     (c) The facility and the business
operations actually conducted at the facility are reasonably similar to the
proposed facility and proposed operations described in the application for
preliminary certification.
     (7) After the first application for annual
certification, the department may approve a subsequent application or
certification filed under this section only if:
     (a) The business firm meets the
requirements of subsection (5) of this section; and
     (b) The facility and the business
operations actually conducted at the facility retain similar characteristics to
the facility and the business operations actually conducted at the facility
during the period of prior certification. This paragraph does not preclude an
applicant from changing the location of the facility, the ownership or
organization of the business firm or other aspects of the facility or business
firm that are within the intent of ORS 285C.500 to 285C.506 if the change is
made in accordance with rules adopted by the department.
     (8) The department may consult with the
city or county in determining whether to approve or disapprove an application
under this section.
     (9) If the department approves an
application, it shall issue an annual certification to the business firm.
     (10) If the department disapproves an
application, the business firm or any owner of the business firm may not be
allowed the exemption described in ORS 316.778 or 317.391 for the tax year for
which the annual certification was sought or for any subsequent tax year.
     (11) The decision of the department to
disapprove an application under this section may be appealed in the manner of a
contested case under ORS chapter 183.
     (12) An annual certification may not be
issued under this section for a tax year that is more than nine consecutive tax
years following the first tax year an exemption is allowed under ORS 316.778 or
317.391 with respect to the facility.
     (13) The department must approve or
disapprove an application under this section within 30 days of the date the
application is filed. [Formerly 285B.108; 2007 c.843 §78]
ADVANCED
TELECOMMUNICATIONS FACILITIES INCOME TAX CREDIT
     285C.530
Definitions for ORS 285C.530 and 285C.533; tax credit certification;
application; rules; fees.
(1) As used in this section and ORS 285C.533:
     (a) “Advanced telecommunications
facilities” means high-speed, dedicated or switched broadband
telecommunications infrastructure or equipment that enables users to send or
receive high quality voice, data or video telecommunications using any
technology.
     (b) “Last mile connection” means a
communications channel from the feed from a connecting bypassing intercity
telecommunications carrier through a telecommunications switching center, or an
individual message distribution point, to a user terminal.
     (c) “Local exchange carrier” means a
person that holds a certificate of authority issued by the Public Utility
Commission under ORS 759.020 to provide intrastate telecommunications service
or local exchange telecommunications service within this state.
     (d) “Telecommunications carrier” means a
provider of telecommunications services, but does not include an aggregator, as
defined in 47 U.S.C. 226.
     (2) A telecommunications carrier seeking a
tax credit under ORS 315.511 for the installation of advanced
telecommunications facilities, prior to incurring any costs associated with the
installation, shall apply to the Economic and Community Development Department
for certification of the facilities as advanced telecommunications facilities.
     (3) The application for certification
shall be in the form and shall contain the information required by the
department pursuant to rules adopted by the department for the administration
of the tax credit certification under this section, including but not limited
to:
     (a) A complete description of the
installation project and the customers to be served by the project;
     (b) The expected costs for completing the
project;
     (c) The expected start date and the
expected date on which the advanced telecommunications facilities are to be
placed in service;
     (d) The geographic area or areas in which
the advanced telecommunications facilities are to be installed; and
     (e) A description of how the facilities
will be integrated into the operations of the intrastate telecommunications
services provided by the telecommunications carrier.
     (4) The application for certification
shall be accompanied by technical documentation demonstrating that the
facilities will meet or exceed applicable minimum performance standards established
by the department under ORS 285C.533.
     (5) The department may approve or deny an
application for certification or may request changes to the application before
issuing certification. Denial of an application may be appealed to the
department in the manner of a contested case under ORS chapter 183.
     (6) The department shall approve an
application and certify the facilities as advanced telecommunications
facilities if the facilities:
     (a) Are to be located in an area in which
current minimum bandwidth service is not available to a majority of customers;
     (b) Improve access to advanced
telecommunications services for a majority of all customers in unserved or
underserved service areas; and
     (c) Meet the minimum performance standards
to comply with ORS 285C.533.
     (7) Upon approval of an application, the
department shall send to the applicant a written certification of the
facilities as advanced telecommunications facilities. The certification shall
state the date by which the facilities must be placed in service and the cost
of the facilities that are being certified.
     (8) Notwithstanding subsection (6) of this
section, the department may not approve an application and certify a facility
if the cost of the facility plus the certified costs of all other facilities
that have been certified during the year exceeds $10 million.
     (9) The department may establish by rule
the amount of fees charged to applicants seeking certification of facilities as
advanced telecommunications facilities. Revenues from the fees shall be used to
offset the costs incurred by the department in administering the tax credit
certification under this section. [Formerly 285B.486]
     285C.533
Performance standards for advanced telecommunications facilities; rules. (1) The Economic and Community Development
Department shall adopt rules setting minimum performance standards that
facilities must meet to be certified as advanced telecommunications facilities.
The rules must establish minimum performance standards in the following areas:
     (a) Enhancement of individual and business
access to advanced telecommunications services at an economically reasonable
cost;
     (b) Development and transition to a fully
competitive telecommunications marketplace;
     (c) Provision of bidirectional bandwidth
capabilities to customers;
     (d) Accessibility to competitive local
exchange carriers;
     (e) Improvement in access by public and
private educational institutions, rural health clinics and libraries to
advanced telecommunications services;
     (f) Improvement in telecommunications
connections between communities in this state;
     (g) Improvement in last mile connections
within this state; and
     (h) Improvement in access by
     (2) In order for facilities to be
certified under ORS 285C.530, the facilities must meet or exceed the minimum
performance standards in at least one of the areas set forth in subsection (1)
of this section. [Formerly 285B.488]
STRATEGIC
INVESTMENT PROGRAM
(Generally)
     285C.600
Definitions for ORS 285C.600 to 285C.626. As used in ORS 285C.600 to 285C.626:
     (1) “Business firm” has the meaning given
that term in ORS 285C.050.
     (2) “Eligible project” means a project
that meets criteria established by the Oregon Economic and Community
Development Commission to be exempt from property taxation under ORS 307.123.
     (3) “First-source hiring agreement” has
the meaning given that term in ORS 285C.050.
     (4) “Publicly funded job training provider”
has the meaning given that term in ORS 285C.050.
     (5) “Rural area” means an area located
entirely outside of the urban growth boundary of a city with a population of
30,000 or more, as the urban growth boundary is acknowledged on December 1, 2002.
     (6) “Strategic investment zone” means a
geographic area established under ORS 285C.623, within which the property of
eligible projects may be exempt from property taxation under ORS 307.123. [Formerly
285B.380; 2005 c.237 §1]
     285C.603
Purpose. The Legislative
Assembly declares that a significant purpose of the strategic investment
program established in ORS 285C.600 to 285C.626 and 307.123 is to improve
employment in areas where eligible projects are to be located and urges
business firms that will benefit from an eligible project to hire employees
from the region in which the eligible project is to be located whenever
practicable. [2003 c.800 §5; 2005 c.237 §2]
     285C.606
Determination of projects for tax exemption; limitations; revenue bond
financing; first-source hiring agreements. (1) The State of Oregon, acting through the Oregon Economic and
Community Development Commission, may determine that real and personal property
constituting a project shall receive the tax exemption provided in ORS 307.123
if:
     (a) The project is an eligible project;
     (b) The project directly benefits a traded
sector industry, as defined in ORS 285B.280; and
     (c) The total cost of the project equals
or exceeds:
     (A) $100 million; or
     (B) $25 million, if the project is located
in a rural area.
     (2) In addition to and not in lieu of the
determination described in subsection (1) of this section, the State of Oregon,
acting through the Oregon Economic and Community Development Commission, shall
determine that real and personal property constituting a project shall receive
the tax exemption provided in ORS 307.123 if:
     (a) The requirements of subsection (1) of
this section are met; and
     (b) The project is to be constructed or
installed in a strategic investment zone established under ORS 285C.623.
     (3) Notwithstanding subsection (1) or (2)
of this section, property may not qualify for the tax exemption under ORS
307.123 if the property:
     (a) Was previously owned or leased by the
business firm benefitting from the tax exemption;
     (b) Was previously exempt under ORS
307.123 for any period of time; or
     (c) If located in a strategic investment
zone, is not newly constructed or newly installed property.
     (4) The State of Oregon, acting through
the State Treasurer, may authorize and issue revenue bonds for an eligible
project that qualifies for exemption under ORS 307.123 if the project also is
eligible for funding through the issuance of revenue bonds under ORS 285B.320
to 285B.371.
     (5) A business firm that will be benefited
by an eligible project shall enter into a first-source hiring agreement with a
publicly funded job training provider that will remain in effect until the end
of the tax exemption period.
     (6) If an eligible project is leased or
subleased to any person, the lessee shall be required to pay property taxes
levied upon or with respect to the leased premises only in accordance with ORS
307.123.
     (7) For purposes of determining the
assessment and taxation of the eligible project in ORS 307.123 and the
calculation of the community services fee in ORS 285C.609 (4)(b), the Oregon
Economic and Community Development Commission, when it determines that the
project is an eligible project, shall:
     (a) Describe the real and personal
property to be included in the eligible project;
     (b) Establish the maximum value of the
property subject to exemption; or
     (c) Employ a comparable method to define
the eligible project.
     (8) Property of an eligible project that
is currently exempt under ORS 307.123 may remain exempt for any remaining
period of exemption allowed under ORS 307.123 upon the property being acquired
by a business firm that is different from the business firm that initially
benefited from the exemption, if the acquiring firm satisfies all applicable
requirements under ORS 285C.600 to 285C.626 and assumes the obligations,
conditions, requirements and other terms of the agreement described in ORS
285C.609 (4). [Formerly 285B.383; 2005 c.237 §4]
     285C.609
Request by county; community services fee agreement; distribution of fee proceeds. (1) A determination under ORS 285C.606 (1)
by the Oregon Economic and Community Development Commission that a project
shall be exempt from property taxation under ORS 307.123 must be requested by
official action of the governing body of the county taken at a regular or duly
called special meeting thereof by the affirmative vote of a majority of its
members.
     (2) The governing body of any
     (3) For purposes of this section, for
projects located on a federally recognized Oregon Indian reservation, the
governing body of a county shall be considered to be the governing body of the
federally recognized Oregon Indian tribe.
     (4) The county may not make the request
under subsection (1) of this section unless, after a public hearing:
     (a) The county and, if the proposed
eligible project will be located within a city, the city have entered into an
agreement with the business firm, as described in this subsection.
     (b) The agreement provides for the payment
of a fee by the business firm, as follows:
     (A) The fee shall be for community
services support that relates to the direct impact of the eligible project on
public services.
     (B) The fee shall be in an amount equal to
25 percent of the property taxes that would, but for the exemption, be due on
the exempt property in each assessment year, but not exceeding $2 million in
any year or, if the eligible project is located in a rural area, $500,000 in
any year.
     (C) The fee shall be paid annually during
the tax exemption period, as of a date set forth in the agreement.
     (c) The agreement provides for the
refunding or crediting of overpayments, for interest on late payments or
underpayments and for the manner in which the appeal of the assessed value of
the property included in the project will affect the fee.
     (5) The agreement described in subsection
(4) of this section may provide for any other requirements related to the
project.
     (6)(a) The fee collected under subsection
(4)(b) of this section shall be distributed by the county based on an
agreement. The agreement is effective only if:
     (A) The county and the city, if any, in
which the eligible project is located have entered into the agreement; and
     (B) Local taxing districts listed in ORS
198.010 or 198.180 that constitute at least 75 percent of the property tax
authority of all local taxing districts listed in ORS 198.010 or 198.180 in the
code area in which the eligible project is located have entered into the
agreement.
     (b) If an effective agreement is not
entered into under paragraph (a) of this subsection within three months after
the date of the determination by the commission under ORS 285C.606 (1), the
commission shall, by official action, establish a formula for distributing the
fee collected under subsection (4)(b) of this section. [Formerly 285B.386]
     285C.612
Eligible project application fees. (1) The Oregon Economic and Community Development Commission shall
collect the fees set forth in subsection (2) of this section from an applicant
that seeks to have the real and personal property constituting the eligible
project declared eligible for the tax exemption provided in ORS 307.123. The
fee may be collected even though the project has not been determined to be
eligible for the tax exemption.
     (2) The fees described in subsection (1)
of this section are as follows:
     (a) $10,000, or $5,000 if the project is
located in a rural area, upon application to the commission; and
     (b) $50,000, or $10,000 if the project is
located in a rural area, when the eligible project is determined by the
commission to be eligible for the tax exemption provided in ORS 307.123. The
commission shall pay 50 percent of this fee to the Department of Revenue for
the purpose of administration of ORS 307.123.
     (3) The fees collected under subsection
(2) of this section shall be deposited in the Oregon Community Development Fund
created under ORS 285A.227. [Formerly 285B.389]
     285C.615
Annual participant reports; penalty; disclosure; rules. (1) On or before April 1 following each tax
year that property is exempt under ORS 307.123, the business firm that owns or
leases the exempt property shall submit a report to the Economic and Community
Development Department, in addition to any other reporting or filing
requirement.
     (2) The report shall be in a form
prescribed by the department and shall include:
     (a) The assessed value and location of
taxable and exempt property constituting the eligible project and the
corresponding payment and savings of property taxes for the tax year, as
ascertained from the county assessor;
     (b) The amount and disposition of fees and
other amounts paid by the business firm pursuant to the agreement with the
county under ORS 285C.609 in the immediately preceding calendar year;
     (c) The average number of persons hired or
employed by the business firm in association with the eligible project,
determined by dividing the total number of hours for which such hired or
employed persons were paid during the immediate prior calendar year by 2,080;
     (d) The annual amount of taxable income
and total compensation paid to employees as described in paragraph (c) of this
subsection;
     (e) Numbers and amounts as described in
paragraphs (c) and (d) of this subsection for jobs retained in direct relation
to the eligible project; and
     (f) Any other information required by the
department.
     (3) If a business firm fails to provide a
report required under this section or to verify information as requested by the
department, the Oregon Economic and Community Development Commission, upon
recommendation by the department, may suspend the determination of the
commission that the project receive the tax exemption provided for in ORS
307.123. If the commission suspends the determination of eligibility under this
subsection, the exemption is revoked as provided in ORS 307.123 (6), until the
department receives the report. Upon receipt of a report required under this
section or the information requested by the department, the department shall
notify the commission and the commission shall rescind the suspension.
     (4) Information collected under this
section may be used by the department to make aggregate figures and analyses of
activity under the strategic investment program publicly available.
     (5) Specific data concerning the financial
performance of individual firms collected under this section is exempt from
public disclosure under ORS chapter 192.
     (6) Within 60 days of receiving the
reports required under this section, the department shall compile and organize
the reported information for purposes of ORS 285C.635 and transmit it to the
Oregon Department of Administrative Services.
     (7) The department shall adopt rules the
department considers necessary to administer ORS 285C.600 to 285C.626. [2007
c.905 §2]
     Note: Section 6, chapter 905, Oregon Laws 2007,
provides:
     Sec.
6. (1) Sections 2 [285C.615]
and 3 [285C.635] of this 2007 Act apply to tax years beginning on or after
January 1, 2009, and before January 1, 2019.
     (2) Sections 2 and 3 of this 2007 Act
apply only to income taxes generated as the result of an eligible project that
first becomes exempt from property taxation under ORS 307.123 on or after
January 1, 2008, and continue to apply only as long as the project remains
exempt. [2007 c.905 §6]
     285C.620
Confidentiality of project information. Notwithstanding ORS 192.410 to 192.505, the identity of an applicant
for an eligible project determination under ORS 285C.606, the application form
submitted to the county governing body and the Oregon Economic and Community
Development Commission and the negotiations conducted between the applicant and
the county shall be confidential, until the county governing body gives notice
of its intent to take official action on the application. [Formerly 285B.392]
(Strategic
Investment Zones)
     285C.623
Strategic investment zones; establishment; fees. (1) A county seeking to ensure that all
eligible projects constructed or installed within a particular geographic area
within the county receive the tax exemption under ORS 307.123 may request
designation of the geographic area as a strategic investment zone. The request
must be made by official action of the governing body of the county taken at a
regular or duly called special meeting of the governing body by the affirmative
vote of a majority of members of the governing body. The request must set forth
the proposed boundaries of the zone.
     (2) The governing body of the county shall
forward appropriate actions requesting zone establishment to the Economic and
Community Development Department for consideration by the Oregon Economic and
Community Development Commission. If the commission determines that the
proposed zone is likely to achieve the purpose set forth in ORS 285C.603 and other
objectives established for the zone by the requesting county, the department or
the commission, the commission shall designate the geographic area a strategic
investment zone.
     (3) Any eligible project described in ORS
285C.606 (2) and newly constructed or installed after the date of zone
designation under this section shall qualify for exemption under ORS 307.123 if
the business firm benefited by the eligible project complies with the fee
agreement described in subsection (4) of this section.
     (4) The county may not make the request
under subsection (1) of this section unless, after a public hearing:
     (a) The county and, if the proposed zone
will be located within a city, the city have entered into an agreement
described in this subsection.
     (b) The agreement provides for the payment
of a fee by each business firm that is to own or operate an eligible project
within the proposed zone, as a condition for the exemption under ORS 307.123.
The agreement shall provide for the payment of the fee, as follows:
     (A) The fee shall be for community
services support that relates to the direct impact of the eligible project on
public services.
     (B) The fee shall be in an amount equal to
25 percent of the property taxes that would, but for the exemption, be due on
the exempt property in each assessment year, but not exceeding $2 million per
eligible project in any year or, if the eligible project is located in a rural
area, $500,000 per eligible project in any year.
     (C) The fee shall be paid annually during
the tax exemption period by each business firm having an eligible project
within the zone, as of a date set forth in the agreement.
     (c) The agreement provides for the
refunding or crediting of overpayments, for interest on late payments or
underpayments and for the manner in which the appeal of the assessed value of
the property included in the project will affect the fee.
     (5) The agreement described in subsection
(4) of this section may provide for any other requirements that each business
firm must comply with in order for the eligible project of the firm to qualify
for exemption under ORS 307.123.
     (6)(a) The fee collected under subsection
(4)(b) of this section shall be distributed by the county based on an
additional agreement described in this subsection. An agreement described in
this subsection is effective only if:
     (A) The county and the city, if any, in
which the eligible project is located have entered into the agreement; and
     (B) Local taxing districts listed in ORS
198.010 or 198.180 that constitute at least 75 percent of the property tax
authority of all local taxing districts listed in ORS 198.010 or 198.180 that
are in the code area in which the eligible project is located have entered into
the agreement.
     (b) If an additional agreement is not
entered into under paragraph (a) of this subsection within three months after
the date of the determination by the commission under ORS 285C.606 (1), the
commission shall, by official action, establish a formula for distributing the
fee collected under subsection (4)(b) of this section. [2005 c.237 §5]
     285C.626
Business firm application for project within strategic investment zone. (1) A business firm seeking the exemption
under ORS 307.123 for a project the firm intends to install or construct within
a strategic investment zone shall apply to the Economic and Community
Development Department. The application shall be in the form and shall contain
the information required by the department.
     (2) A completed application containing all
of the required information shall be considered by the Oregon Economic and
Community Development Commission for the purposes of determining whether the
project constitutes an eligible project under ORS 285C.606. [2005 c.237 §3]
(Shared
Services Fund)
     285C.635
Determination of personal income tax revenue; transfer to Shared Services Fund;
rules. (1) Upon receipt of
information compiled under ORS 285C.615, the Oregon Department of
Administrative Services shall determine the annual amount of personal income
tax revenue attributable to each eligible project for which an eligible
business firm received a property tax exemption under ORS 307.123.
     (2) In determining the amount of personal
income tax revenue attributable to each eligible project, the department may
rely on reasonable techniques of estimation, if appropriate.
     (3) In each fiscal year, the department
shall transfer 50 percent of the cumulative amount for all eligible projects
determined under subsection (1) of this section to the Shared Services Fund
established in ORS 286C.639.
     (4) The department shall adopt rules
necessary to administer this section. [2007 c.905 §3]
     Note: See note under 285C.615.
     Note: 285C.635 and 285C.639 were enacted into law
by the Legislative Assembly but were not added to or made a part of ORS chapter
285C or any series therein by legislative action. See Preface to Oregon Revised
Statutes for further explanation.
     285C.639
Shared Services Fund. (1)
The Shared Services Fund is established in the State Treasury, separate and
distinct from the General Fund. Interest earned by the Shared Services Fund
shall be credited to the Shared Services Fund.
     (2) All moneys in the Shared Services Fund
are continuously appropriated to the Oregon Department of Administrative
Services, for the purpose of making distributions described in subsection (3)
of this section.
     (3) The department shall annually
distribute to taxing districts the moneys from the Shared Services Fund:
     (a) In proportion to the amount of money
transferred into the fund for each eligible project that received a property
tax exemption under ORS 307.123; and
     (b) Consistent with the distribution of
the community services fee under ORS 285C.609 for that project.
     (4) The department shall furnish the
Oregon Economic and Community Development Commission with information on the
recipients of the distributions and the amounts distributed under this section,
as requested by the commission. [2007 c.905 §4]
     Note: See second note under 285C.635.
     Note: Section 5, chapter 905, Oregon Laws 2007,
provides:
     Sec.
5. The Oregon Economic and
Community Development Commission shall submit a report on the amount of moneys
transferred to the Shared Services Fund and the amount of moneys distributed
under section 4 of this 2007 Act [285C.639] to the appropriate House and Senate
committees relating to revenue on or before May 1, 2013. [2007 c.905 §5]
_______________
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