Chapter 285C —
Economic Development III
2011 EDITION
ECONOMIC DEVELOPMENT III
ECONOMIC DEVELOPMENT
ENTERPRISE ZONES
(Short Title)
285C.045 Short
title
(Definitions)
285C.050 Definitions
for ORS 285C.050 to 285C.250
(Findings)
285C.055 Legislative
findings
(Duties of Oregon Business Development
Department)
285C.060 Duties
of department; rules
(Creation of Enterprise Zone)
285C.065 Application
for designation as enterprise zone; consent of governing body; contents
285C.066 City,
county or port consent; rules
285C.067 Consultation
with local taxing districts; rules
285C.068 Port
cosponsorship of zones
285C.070 Election
to permit hotels, motels or destination resorts as eligible business firms;
procedures; election revocation
285C.075 Review
of application by department; designation approval; reapplication upon denial
285C.080 Limitation
on number of zones
285C.085 Federal
enterprise zones
285C.090 Requirements
for area to be designated zone; exception
(Electronic Commerce)
285C.095 Designation
for electronic commerce; application; revocation
285C.100 Alternative
designation of city for electronic commerce
(Management of Enterprise Zone)
285C.105 Duties
of zone sponsor
285C.110 Availability
of public property
285C.115 Change
of zone boundaries
285C.120 Zone
boundary change restrictions when county ceases to be sparsely populated;
waiver of distance limitations; rules
(Duties of Property Tax Administrators)
285C.125 Duties
of Department of Revenue; rules
285C.130 Duties
of county assessor
(Eligible Business Firms)
285C.135 Requirements
for eligibility
(Authorization)
285C.140 Application
for authorization; contents; filing fee; consultation; approval; appeal; late
filing
285C.145 Leasing
existing property to authorized firm; failure to timely file for authorization;
certain records exempt from disclosure
285C.150 Conditions
required by sponsor for authorization; reports
285C.155 Minimum
employment and other requirements for authorization
285C.160 Agreement
between firm and sponsor for additional period of exemption; requirements
285C.165 Extension
of period of authorization; filing fee
(Exemptions)
285C.170 Construction-in-process
exemption
285C.175 Enterprise
zone exemption; requirements; duration
(Qualified Property)
285C.180 Qualified
property generally
285C.185 Minimum
cost of qualified property; leased property; hotel, motel or destination resort
property; electronic commerce property
285C.190 Requirements
for qualifying reconditioned, refurbished, retrofitted or upgraded property
285C.195 Alternative
requirements for qualifying reconditioned, refurbished, retrofitted or upgraded
property
(Firm and Employment Qualifications)
285C.200 Qualifications
of business firm; rules
285C.203 Waiver
of employment requirements; extension of exemption period
285C.205 Effect
of productivity increases on qualification of certain firms; uses of tax
savings
285C.210 Substantial
curtailment of business operations
285C.215 First-source
hiring agreements; rules
(Exemption Claim and Verification
Procedures)
285C.220 Exemption
claims; contents; late filing; fees
285C.225 Sponsor’s
addendum; property schedule; amendments
285C.230 Assessor
to grant or deny exemption; assistance of sponsor
285C.235 Authority
of county assessor; authority of sponsor
(Disqualification From Exemption)
285C.240 Disqualification;
notice and procedures; in lieu payments and additional taxes; penalty; use of
moneys
(Termination of Enterprise Zone)
285C.245 Termination;
effect of termination on property; procedures
285C.250 Designation
of new zone following zone termination
(Sunset Date)
285C.255 Sunset
of enterprise zone program
RESERVATION ENTERPRISE ZONES; RESERVATION
PARTNERSHIP ZONES
285C.300 Definitions
for ORS 285C.300 to 285C.320
285C.303 Legislative
findings
285C.306 Reservation
enterprise zones and reservation partnership zones
285C.309 Income
tax credit for new business facility in reservation enterprise zone or
reservation partnership zone
285C.320 Status
of reservation enterprise zone and reservation partnership zone; sponsor
RURAL RENEWABLE ENERGY DEVELOPMENT ZONES
285C.350 Definitions
for ORS 285C.350 to 285C.370
285C.353 Designation
of rural renewable energy development zones; requirements; multiple
designations; zone sponsor
285C.356 Application
for authorization
285C.359 Qualified
property
285C.362 Exemption;
requirements; duration
285C.365 Application
of enterprise zone laws
285C.370 Rules
LONG TERM TAX INCENTIVES FOR RURAL
ENTERPRISE ZONES
285C.400 Definitions
for ORS 285C.400 to 285C.420
285C.403 Certification
of business firm; application; review; appeal
285C.406 Claiming
property tax exemption or income tax credit
285C.409 Property
tax exemption; requirements; duration
285C.412 Conditions
for continued exemption
285C.415 Notice
to county assessor
285C.420 Disqualification;
exception; additional taxes
BUSINESS DEVELOPMENT INCOME TAX
EXEMPTION
285C.495 Short
title
285C.500 Definitions
for ORS 285C.500 to 285C.506
285C.503 Preliminary
certification of facility; application; fee; review; appeal
285C.506 Annual
certification of facility; application; fee; review; appeal; duration of
certification
RENEWABLE ENERGY RESOURCE EQUIPMENT MANUFACTURING
FACILITIES
285C.540 Definitions
for ORS 285C.540 to 285C.559
285C.543 Rules;
criteria for renewable energy resource equipment manufacturing facilities
285C.545 Annual
limit to cost of facility in granting tax credits; discretion of director
285C.547 Application
for preliminary certification; eligibility; contents; fees; rules
285C.549 Transferability
of facility tax credit
285C.551 Submission
of plans, specifications and contract terms; preliminary certification;
suspension or denial
285C.553 Final
certification; eligibility; application; content; performance agreement; rules
285C.555 Rules;
fees for certification
285C.557 Certification
required for tax credits; certification not to exceed five years
285C.559 Revocation
of certificate; collection
STRATEGIC INVESTMENT PROGRAM
(Generally)
285C.600 Definitions
for ORS 285C.600 to 285C.626
285C.603 Purpose
285C.606 Determination
of projects for tax exemption; limitations; revenue bond financing;
first-source hiring agreements
285C.609 Request
by county; community services fee agreement; distribution of fee proceeds
285C.612 Eligible
project application fees
285C.615 Annual
participant reports; penalty; disclosure; rules
285C.620 Confidentiality
of project information
(Strategic Investment Zones)
285C.623 Strategic
investment zones; establishment; fees
285C.626 Business
firm application for project within strategic investment zone
(Shared Services Fund)
285C.635 Determination
of personal income tax revenue; transfer to Shared Services Fund; rules
285C.639 Shared
Services Fund
OREGON LOW INCOME COMMUNITY JOBS
INITIATIVE
285C.650 Certification
as qualified equity investment; eligibility for tax credit; rules
285C.653 Tax
credit utilization limit per tax year; rules
285C.656 Recapture
of tax credit
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]
(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 people’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
Oregon Business 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 Oregon Business 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, or a
reservation partnership zone cosponsored, 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, or a reservation partnership zone
cosponsored, 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;
(c)
The tribal government and the cosponsoring city, county or port, in the case of
a reservation partnership zone; or
(d)
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; 2010 c.76 §18]
(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 Oregon Business 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 Oregon Business 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 Oregon law.
(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 Oregon Business
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 Oregon Business 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 Oregon Business 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 Oregon Business 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 Oregon Business 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.
285C.068 Port cosponsorship
of zones. (1) A port located in whole or in part
within an existing enterprise zone may submit a request to the Oregon Business
Development Department to be a cosponsor of the enterprise zone. The request
shall include:
(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
Oregon Business 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 Oregon Business 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 Oregon Business 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 Oregon Business 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 Oregon
Business 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 Oregon Business Development Department shall be the lead agency for
state participation in a federal enterprise zone program. The Director of the
Oregon Business 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 Oregon Business 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 or a reservation partnership zone. [Formerly
285B.662; 2005 c.94 §4; 2005 c.704 §9; 2007 c.71 §85; 2010 c.76 §19]
(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 Oregon Business 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 Oregon Business 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 Oregon Business 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,
285C.160 or 285C.203, and take the actions necessary to implement and enforce
the conditions and policies and any other reasonable requirements imposed
pursuant to ORS 285C.155, 285C.160 or 285C.203.
(j)
Conduct, or assist in conducting, annual reporting of enterprise zone activity
or effort, if requested by the county assessor or the Oregon Business
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; 2010 c.39 §4]
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 Oregon
Business 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 or a reservation
partnership 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 Oregon Business 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; 2010 c.76 §20]
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 Oregon Business 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 Oregon Business
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 Oregon Business 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 Oregon Business 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 Oregon Business 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 Oregon Business 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 firm’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
Oregon Business 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 Oregon Business 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 firm’s appeal to the
sponsor, county assessor, the Department of Revenue and the Oregon Business
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 Oregon Business 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 firm’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 property’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 property’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 (5) and (6) 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, Oregon and federal laws
applicable to the firm’s operations inside the enterprise zone since the
application for authorization and throughout the period of exemption, as
prescribed by rule.
(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)
Notwithstanding subsection (1)(c) or (e) or (2) of this section, an eligible
business firm is a qualified business firm under this section if:
(a)
The firm is authorized under ORS 285C.140;
(b)
The zone sponsor has taken the actions and the firm has satisfied the
requirements specified in ORS 285C.203; and
(c)
The firm completes an investment of $4 million or more in qualified property if
it is in a rural enterprise zone or $8 million or more in qualified property if
it is in an urban enterprise zone.
(4)
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.
(5)
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 firm’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.
(6)
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.
(7)
For purposes of subsection (1)(f) of this section, the Oregon Business
Development Department shall adopt rules that define the effect of noncompliance
on an eligible business firm’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.
(8)
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 (6) 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; 2010 c.39 §3]
285C.203 Waiver of employment
requirements; extension of exemption period. For
purposes of ORS 285C.200 (3):
(1)
When the conditions specified in subsection (2) of this section exist, the
sponsor of an enterprise zone may:
(a)
Specify a minimum number of employees that an authorized business firm must
maintain throughout the exemption period that is less than the employment
requirements of ORS 285C.200 (1)(c); and
(b)
Extend the period of time for which the qualified property of the authorized
business firm may continue to be exempt from taxation under ORS 285C.175, not
to exceed two additional tax years.
(2)
The zone sponsor may take the actions specified in subsection (1) of this
section when the following conditions exist:
(a)
There has been a decline for two or more consecutive quarters in the last 12
months in seasonally adjusted nonfarm payroll employment; and
(b)
The unemployment rate of the county in which the enterprise zone is located is
at least two 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 or the
Employment Department.
(3)
When the zone sponsor has taken the actions specified in subsection (1) of this
section, the authorized business firm may not file a claim for exemption under
ORS 285C.175 unless it otherwise meets all of the requirements of ORS 285C.200
(1) for any tax year during the exemption period as extended under subsection
(1)(b) of this section.
(4)
The actions of the zone sponsor under subsection (1) of this section must be
set forth in a resolution adopted by the governing body of the sponsor within
60 days of taking the actions. A resolution adopted under this subsection may
be revoked or modified at the request of the zone sponsor at any time during
the exemption period as extended under subsection (1)(b) of this section.
(5)
An eligible business firm authorized under ORS 285C.140 does not lose its
status as an authorized business firm solely because the zone sponsor has taken
the actions specified in subsection (1) of this section. [2010 c.39 §2]
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 (6) 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 (6); 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.
(3)
Notwithstanding subsections (1) and (2) of this section, it is not a
substantial curtailment of operations of a business firm for purposes of ORS
285C.175, 285C.200 and 285C.240 if the sponsor of an enterprise zone has taken
the actions and the firm has satisfied the requirements specified in ORS
285C.203. [2003 c.662 §40; 2010 c.39 §5]
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 Oregon Business Development Department,
the Director of the Oregon Business 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 firm’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 Sponsor’s addendum; property
schedule; amendments. (1) An exemption claim filed
under ORS 285C.220 must, when applicable, include a sponsor’s addendum setting
forth any information required by the sponsor of the enterprise zone pursuant
to ORS 285C.140 (5), 285C.150, 285C.155, 285C.160 or 285C.203.
(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; 2010 c.39
§6]
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, 285C.203 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; 2010 c.39 §7]
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 days’ 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, 285C.203 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; 2010 c.39 §8]
(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, 285C.203 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 zone’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 Oregon
Business 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; 2010 c.39 §9]
(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 firm’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 Oregon Business
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 Oregon Business 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, or a reservation partnership zone cosponsored,
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; 2010 c.76 §21]
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 Oregon Business 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 285C.245 (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 Oregon Business 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; 2009 c.33 §5]
(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, 2025;
(b)
A business firm may not obtain authorization under ORS 285C.140 after June 30,
2025; and
(c)
An enterprise zone, except for a reservation enterprise zone or a reservation
partnership zone, that is in existence on June 29, 2025, is terminated on June
30, 2025.
(2)
Notwithstanding subsection (1) of this section:
(a)
A reservation enterprise zone may be designated, and a reservation partnership
zone may be cosponsored, under ORS 285C.306 after June 30, 2025; and
(b)
A business firm may obtain authorization under ORS 285C.140 after June 30,
2025:
(A)
If located in a reservation enterprise zone or a reservation partnership zone;
or
(B)
As allowed under ORS 285C.245 (1)(b). [2003 c.662 §49; 2007 c.888 §1; 2010 c.76
§22; 2011 c.375 §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; RESERVATION
PARTNERSHIP 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 or a reservation partnership
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
or a reservation partnership zone.
(2)
“New business facility”:
(a)
Means a physical asset within a reservation enterprise zone or a reservation
partnership 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 an enterprise zone designated under ORS
285C.306.
(4)
“Reservation partnership zone” means an enterprise zone cosponsored under ORS
285C.306.
(5)
“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.
(6)
“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; 2010 c.76 §23]
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 state’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 and
reservation partnership zones. (1) As used
in this section, “eligible Indian tribe” means each of the Burns Paiute Tribe,
the Confederated Tribes of Coos, Lower Umpqua and Siuslaw Indians, the
Confederated Tribes of the Grand Ronde Community of
Oregon, the Confederated Tribes of Siletz Indians of Oregon, the Confederated
Tribes of the Umatilla Indian Reservation, the Confederated Tribes of Warm
Springs, the Coquille Indian Tribe, the Cow Creek Band of Umpqua Tribe of
Indians and the Klamath Tribes, as long as each remains a federally recognized
Indian tribe.
(2)(a)
The government of an eligible Indian tribe may request the Oregon Business
Development Department to designate one reservation enterprise zone. The
reservation enterprise zone may cover an area of no more than 12 square miles,
which does not have to be contiguous.
(b)
Upon request, the department shall designate a reservation enterprise zone if
the land for which zone designation is sought is:
(A)
Land held in trust by the United States for the benefit of the tribe;
(B)
Land for which an application to transfer the land into trust has been filed
with the federal government and is pending; or
(C)
Land that is located within the boundaries of the tribe’s reservation.
(c)
Land designated as a reservation enterprise zone pursuant to paragraph (b)(A)
or (B) of this subsection may be outside the boundaries of the tribe’s
reservation.
(3)(a)
The government of an eligible Indian tribe may cosponsor a reservation
partnership zone comprising an area of up to 12 square miles. A reservation
partnership zone includes lands within the jurisdiction of a cosponsoring city,
county or port and may include both lands held in trust by the federal
government for the benefit of the tribe and lands within the boundaries of the
tribe’s reservation.
(b)
A reservation partnership zone must be cosponsored by the government of an
eligible Indian tribe and a city, county or port pursuant to an agreement
formed under ORS 190.110 to perform the duties imposed on a sponsor under ORS
285C.050 to 285C.250. [Formerly 285B.770; 2005 c.704 §3; 2007 c.71 §86; 2009
c.743 §1]
285C.309 Income tax credit for new
business facility in reservation enterprise zone or reservation partnership
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 or a reservation partnership
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 or reservation partnership 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 taxpayer’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 or a reservation partnership zone. [Formerly
285B.773; 2010 c.76 §24]
Note:
Section 21, chapter 913, Oregon Laws 2009, provides:
Sec. 21. A
credit may not be claimed under ORS 285C.309 for tax years beginning on or
after January 1, 2018. [2009 c.913 §21; 2010 c.76 §28]
285C.320 Status of reservation enterprise
zone and reservation partnership zone; sponsor.
(1) A reservation enterprise zone and a reservation partnership zone are rural
enterprise zones for purposes of ORS 285C.050 to 285C.250.
(2)
Reservation enterprise zones and reservation partnership 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)
Exemptions and tax credits available in connection with an enterprise zone are
available in connection with a reservation enterprise zone or a reservation
partnership zone. In order for property within a reservation enterprise zone or
a reservation partnership zone to be exempt under ORS 285C.175, the business
firm and property must meet the requirements applicable to business firms and
property in an 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; 2009 c.743 §2; 2010 c.76 §25]
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 469B.130, 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 Agency’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 Oregon Business 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 Oregon Business
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).