71st OREGON LEGISLATIVE ASSEMBLY--2001 Regular Session
NOTE: Matter within { + braces and plus signs + } in an
amended section is new. Matter within { - braces and minus
signs - } is existing law to be omitted. New sections are within
{ + braces and plus signs + } .
LC 718
A-Engrossed
House Bill 2103
Ordered by the Senate May 9
Including Senate Amendments dated May 9
Ordered printed by the Speaker pursuant to House Rule 12.00A (5).
Presession filed (at the request of Governor John A. Kitzhaber,
M.D., for Economic and Community Development Department)
SUMMARY
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure.
Revamps nonurban enterprise zone property tax exemption and
corporate excise or income tax credit program.
Extends period for which business firms may be certified for
property tax exemption and excise or income tax credit.
Creates Long Term Enterprise Zone Fund.
Takes effect on 91st day following adjournment sine die of
regular session.
A BILL FOR AN ACT
Relating to taxation; creating new provisions; amending ORS
318.031 and sections 36, 37, 38 and 39, chapter 835, Oregon
Laws 1997; repealing sections 40, 42 and 43, chapter 835,
Oregon Laws 1997, and sections 15, 17 and 27, chapter 1104,
Oregon Laws 1999; appropriating money; and prescribing an
effective date.
Be It Enacted by the People of the State of Oregon:
SECTION 1. Section 36, chapter 835, Oregon Laws 1997, as
amended by section 10, chapter 1104, Oregon Laws 1999, is amended
to read:
{ + Sec. 36. + } As used in sections 36 to { - 40 - } { +
39 + }, chapter 835, Oregon Laws 1997:
{ + (1) 'Business firm' has the meaning given that term in
ORS 285B.650.
(2) 'Certified business firm' means a business firm that has
been certified under section 37, chapter 835, Oregon Laws
1997. + }
{ - (1) - } { + (3) + } 'County with chronically low income
or chronic unemployment' means, based on the most recently
revised annual average unemployment rate or annual per capita
income levels available, a county in which:
(a) The median ratio of the per capita personal income of the
county to the equivalent annual personal income figure of the
entire United States for each year, as reported by the Bureau of
Economic Analysis of the United States Department of Commerce, is
equal to or less than 0.75 over the last 10 years;
(b) Both of the following criteria are satisfied:
(A) The median ratio of the unemployment rate of the county to
the equivalent rate of the entire United States for each year is
at least 1.3 over the last 20 years or over the last 10 years;
and
(B) The current unemployment rate of the county is at least one
percentage point higher than the unemployment rate of the county
for the immediately prior year or at least 50 percent higher than
the current unemployment rate of this state; or
(c) The population of the county has experienced a negative net
migration, irrespective of natural population change, since the
most recent federal decennial census occurring three or more
years prior to the current estimated population figure for the
county, based on available population statistics.
{ + (4) 'Facility' means the land, real property improvements
and personal property that are used:
(a) At a location in a nonurban enterprise zone that is
identified in the application for certification under section 37,
chapter 835, Oregon Laws 1997; and
(b) In those business operations of the business firm that are
the subject of the application for certification under section
37, chapter 835, Oregon Laws 1997. + }
{ - (2) - } { + (5) + } 'Nonurban enterprise zone' has the
meaning given that term in ORS 285B.650.
{ - (3) 'Taxing unit' means the State of Oregon or any
county, city, municipal corporation, district or other government
unit that has the power to tax. - }
SECTION 2. Section 37, chapter 835, Oregon Laws 1997, as
amended by section 11, chapter 1104, Oregon Laws 1999, is amended
to read:
{ + Sec. 37. + } (1) Any business firm proposing to apply for
the tax exemption provided under section 38 { - (1) - } ,
chapter 835, Oregon Laws 1997, shall, before the commencement of
construction or installation of property or improvements at a
{ - facility - } { + location + } in a nonurban enterprise
zone and before the hiring of employees, apply for certification
with the sponsor of the zone and with the county assessor of the
county or counties in which the zone is located. The application
shall be made on a form prescribed by the Department of Revenue.
(2) The application shall contain the following information:
(a) A description of the firm's { + proposed + } business
operations and facility in the nonurban enterprise zone;
(b) A description and estimated cost or value of the property
or improvements to be constructed or installed at the facility
{ - in the nonurban enterprise zone - } ;
(c) An estimate of the number of employees at the facility that
will be hired by the firm;
(d) A commitment to meet { - all - } { + the applicable + }
requirements of
{ - subsection (8) of this section - } { + section 3 of this
2001 Act + };
(e) A commitment to satisfy all additional conditions { - for
certification that are imposed by - } { + agreed to pursuant to
the written agreement between + } the nonurban enterprise zone
sponsor { + and the business firm + } under subsection (3)(c) of
this section; and
(f) Any other information considered necessary by the
Department of Revenue.
(3) The sponsor and the county assessor shall certify the
business firm by approving the application if the sponsor and the
county assessor determine that { + all of the following
requirements have been met + }:
(a) The governing body of the county and city in which the
facility is located has adopted a resolution approving the
property tax exemption for the facility { - ; - } { + . + }
(b) The business firm has committed to meet the
{ + applicable + } requirements of { - subsection (8) of this
section; - } { + section 3 of this 2001 Act. + }
(c) The business firm has entered into a written agreement with
the sponsor of the nonurban enterprise zone that may include any
additional requirements that the sponsor may reasonably request,
including but not limited to contributions for local services or
infrastructure benefiting the facility { + . + } { - ; and - }
{ + + } { + The written agreement shall state the number of
consecutive tax years for which the facility, following
commencement of operations, is to be exempt from property tax
under section 38, chapter 835, Oregon Laws 1997. The agreement
may not provide for a period of exemption that is less than seven
consecutive tax years or more than 15 consecutive tax years. If
the agreement is silent on the number of tax years for which the
facility is to be exempt following placement in service, the
exemption shall be for seven consecutive tax years. + }
(d) The facility is located in a county with chronically low
income or chronic unemployment, based on the most recently
revised annual data available when the written agreement with the
zone sponsor is { - entered into - } { + executed + }.
(4) The approval of an application by both the sponsor and the
county assessor under subsection (3) of this section shall be
prima facie evidence that the business firm will { - be
qualified - } { + qualify + } for the property tax exemption
under section 38 { - (1) and (2) - } , chapter 835, Oregon Laws
1997.
{ - (5) The sponsor or the county assessor shall not be
liable in any way if it is determined that the certified business
firm has not satisfied the requirements of subsection (8) of this
section. - }
{ - (6) - } { + (5) + } The sponsor and the county assessor
shall provide copies of an approved application to the applicant,
the Department of Revenue and the Economic and Community
Development Department.
{ - (7) - } { + (6) + } If the sponsor or the county
assessor fails or refuses to certify the business firm, the
business firm may appeal to the Oregon Tax Court under ORS
305.404 to 305.560. The business firm shall provide copies of the
firm's appeal to the sponsor, the county assessor, the Economic
and Community Development Department and the Department of
Revenue.
{ - (8) A business firm shall receive a property tax
exemption from the county assessor under section 38 (1), chapter
835, Oregon Laws 1997, for property and improvements at a
facility in a nonurban enterprise zone if, except as allowed
under section 15 (1), (2) or (3) or section 17 (1) of this 1999
Act, all of the following conditions are met: - }
{ - (a) By the end of the calendar year in which the facility
is placed in service, the total costs of property and
improvements at the facility after certification are or will be
more than the lesser of: - }
{ - (A) $50 million; or - }
{ - (B) A figure equal to one percent of the value of all
nonexempt taxable property in the county in which the facility is
located, as reported by the Department of Revenue as net real
market value at the time that the business firm is certified, and
rounded to the nearest $10 million of such value. - }
{ - (b) The business firm hires or will hire at least 75
full-time employees at the facility by the end of the fifth
calendar year following the year in which the facility is placed
in service. Unless the decrease in the number of employees is
caused by circumstances beyond the taxpayer's control, including
force majeure, or is due to a temporary adverse business cycle,
after the number of employees required by this paragraph are
hired, the number of employees shall not fall below 75. - }
{ - (c) The annual average compensation for employees, based
on payroll, at the business firm's facility is at least 150
percent of the average wage in the county in which the facility
is located. This one-time requirement may be met in any year
during the first five years after the year in which operation of
the facility begins. Unless the decrease in the average
compensation is caused by circumstances beyond the taxpayer's
control, including force majeure, the average compensation at the
taxpayer's facility shall not decrease to less than 150 percent
of the average wage in the county in which the taxpayer's
facility is located, as determined for the year in which the
one-time requirement was met. - }
{ - (9) Upon meeting the requirements set forth in subsection
(8) of this section, the business firm shall notify the county
assessor in writing that the requirements of subsection (8) of
this section have been met. - }
{ - (10) The county assessor, for each tax year that the
property at the facility is exempt from taxation under section 38
(1) or (2), chapter 835, Oregon Laws 1997, shall: - }
{ - (a) Enter on the assessment roll, as a notation, the real
market value and assessed value of the property as if it were not
exempt under section 38 (1) or (2), chapter 835, Oregon Laws
1997. - }
{ - (b) Enter on the assessment and the tax roll, as a
notation, the amount of taxes that would be due if the property
were not exempt. - }
{ - (c) Indicate on the assessment and tax roll that the
property is exempt and is subject to potential additional taxes
as provided in section 39, chapter 835, Oregon Laws 1997, by
adding the notation 'enterprise zone exemption (potential
additional tax).' - }
SECTION 3. { + In order for a facility of a business firm to
continue to be exempt from ad valorem property taxation under
section 38, chapter 835, Oregon Laws 1997, for a tax year
following the first assessment date on which the facility is in
service, all of the conditions of any one of the alternative
subsections in this section must be met:
(1) In order for the exemption under section 38 (1)(c), chapter
835, Oregon Laws 1997, to be allowable pursuant to this
subsection:
(a) By the end of the calendar year in which the facility is
placed in service, the total cost of the facility exceeds the
lesser of $25 million or one percent of the real market value of
all nonexempt taxable property in the county in which the
facility is located, as determined for the assessment year in
which the business firm is certified (and rounded to the nearest
$10 million of such value);
(b) The business firm hires or will hire at least 75 full-time
employees at the facility by the end of the fifth calendar year
following the year in which the facility is placed in service;
and
(c) The annual average compensation for employees, based on
payroll, at the business firm's facility is at least 150 percent
of the average wage in the county in which the facility is
located. This requirement may be initially met in any year during
the first five years after the year in which operation of the
facility begins, and thereafter is met if the annual average
compensation at the facility for the year exceeds the average
wage in the county for the year in which the requirement is
initially met.
(2) In order for the exemption under section 38 (1)(c), chapter
835, Oregon Laws 1997, to be allowable pursuant to this
subsection:
(a) The facility meets the total cost requirements set forth in
subsection (1)(a) of this section;
(b) The business firm meets the annual average compensation
requirements set forth in subsection (1)(c) of this section; and
(c)(A) The business firm hires or will hire at least 10
full-time employees at the facility by the end of the third
calendar year following the year in which the facility is placed
in service, and at the time that the business firm is certified,
the location of the facility is in a county with a population of
10,000 or fewer; or
(B) The business firm hires or will hire at least 35 full-time
employees at the facility by the end of the third calendar year
following the year in which the facility is placed in service,
and at the time that the business firm is certified, the location
of the facility is in a county with a population of 40,000 or
fewer.
(3) In order for the exemption under section 38 (1)(c), chapter
835, Oregon Laws 1997, to be allowable pursuant to this
subsection:
(a) By the end of the calendar year in which the facility is
placed in service, the total cost of the facility exceeds
one-half of one percent of the real market value of all nonexempt
taxable property in the county in which the facility is located,
as determined for the assessment year in which the business firm
is certified (and rounded to the nearest $10 million of such
value);
(b) At the time that the business firm is certified, the
location of the facility is 10 or more miles from Interstate
Highway 5, as measured between the two closest points between the
facility site and anywhere along that interstate highway;
(c) The business firm meets the annual average compensation
requirements set forth in subsection (1)(c) of this section; and
(d)(A) The business firm hires or will hire at least 50
full-time employees at the facility by the end of the third
calendar year following the year in which the facility is placed
in service; or
(B) The business firm satisfies the requirements of subsection
(2)(c)(A) or (B) of this section.
(4) In order for the exemption under section 38 (1)(c), chapter
835, Oregon Laws 1997, to be allowable pursuant to this
subsection:
(a) Within three years either before or after the property tax
year in which the facility is placed in service, the business
firm places one or more other facilities in the same or another
enterprise zone for which the business firm is certified and
otherwise meets the requirements of sections 36 to 39, chapter
835, Oregon Laws 1997;
(b) The total cost of all facilities of the business firm
exceeds $25 million by the end of the calendar year in which the
last such facility is placed in service;
(c) The business firm meets the annual average compensation
requirements set forth in subsection (1)(c) of this section
independently for each facility of the firm; and
(d) The business firm hires or will hire a total of at least
100 full-time employees at all of the firm's facilities by the
end of the fifth calendar year following the year in which the
first such facility is placed in service. + }
SECTION 4. { + Upon meeting the applicable requirements of
section 3 of this 2001 Act, the certified business firm shall
notify the county assessor in writing that the applicable
requirements have been met. + }
SECTION 5. Section 38, chapter 835, Oregon Laws 1997, as
amended by section 12, chapter 1104, Oregon Laws 1999, is amended
to read:
{ + Sec. 38. + } (1) { - All of the property and
improvements at the - } { + A + } facility of a certified
business firm { - shall be - } { + is + } exempt from ad
valorem { + property + } taxation { + :
(a) For the first tax year following the calendar year in which
the business firm is certified under section 37, chapter 835,
Oregon Laws 1997, or after which construction or reconstruction
of the facility commences, whichever event occurs later;
(b) For each subsequent tax year in which the facility is not
yet in service as of the assessment date; and
(c) For a period of at least seven consecutive tax years but
not more than 15 consecutive tax years, as provided in the
written agreement between the business firm and the nonurban
enterprise zone sponsor under section 37 (3)(c), chapter 835,
Oregon Laws 1997, + } if the facility satisfies the requirements
of { - section 37 (8), chapter 835, Oregon Laws 1997. The
exemption allowed under this subsection shall first apply to the
ad valorem tax year immediately following the tax year in which
the business firm's facility is placed in service. - } { +
section 3 of this 2001 Act. The period described in this
paragraph shall commence as of the first tax year in which the
facility is in service as of the assessment date. + }
{ - (2) Prior to the ad valorem tax year specified in
subsection (1) of this section, no ad valorem taxes shall be
imposed by a taxing unit on or with respect to the facility site
and any property thereon owned or leased by the taxpayer,
beginning in the tax year that begins in the first calendar year
after which the business firm is certified or after which
construction or reconstruction of the facility commences,
whichever event occurs later. - }
{ - (3) Any exemption allowed under subsection (1) or (2) of
this section shall be 100 percent of the assessed value of the
property and improvements at the facility in each of the tax
years for which the exemption is available. - }
{ - (4) The exemption allowed under subsection (1) of this
section is available for a period of at least 7 but not more than
15 consecutive tax years, as determined in the written agreement
between the business firm and the enterprise zone sponsor under
section 37 (3)(c), chapter 835, Oregon Laws 1997. - }
{ - (5) - } { + (2) + } An exemption { - allowed - }
under { - subsection (1) or (2) of - } this section
{ - shall - } { + may + } not be allowed for real or personal
property that has received a property tax exemption under ORS
285B.698.
{ + (3) For each tax year that the facility is exempt from
taxation under this section, the county assessor shall:
(a) Enter on the assessment and tax roll, as a notation, the
real market value and assessed value of the facility.
(b) Enter on the assessment and tax roll, as a notation, the
amount of tax that would be due if the facility were not exempt.
(c) Indicate on the assessment and tax roll that the property
is exempt and is subject to potential additional taxes as
provided in section 39, chapter 835, Oregon Laws 1997, by adding
the notation 'enterprise zone exemption (potential additional
tax). '
(4) The amount determined under subsection (3)(b) of this
section and the name of the business firm shall be reported to
the Department of Revenue on or before December 31 of each tax
year so that the department may compute the distributions
described in section 12 of this 2001 Act. + }
SECTION 6. Section 39, chapter 835, Oregon Laws 1997, as
amended by section 13, chapter 1104, Oregon Laws 1999, is amended
to read:
{ + Sec. 39. + } { + (1) + } If a { + certified + }
business firm { - that is certified under section 37, chapter
835, Oregon Laws 1997, - } does not begin operations or is not
reasonably expected to begin operations, as determined by the
county assessor consistent with criteria established by rule of
the Department of Revenue, or fails to meet the minimum
requirements set forth in section { - 37 (8), chapter 835,
Oregon Laws 1997 - } { + 3 of this 2001 Act + }, while
receiving an exemption under section 38 { - (1) or (2) - } ,
chapter 835, Oregon Laws 1997, the { + assessor shall, as of the
next tax year, disqualify the property from the exemption. + }
{ - exemption shall terminate on July 1 following the then
current tax year and - }
{ + (2)(a) If a certified business firm that has achieved the
minimum applicable full-time hiring requirements and annual
average wage requirements at a facility under section 3 of this
2001 Act subsequently fails to maintain the applicable minimum
number of full-time employees or the minimum annual average
compensation level at the facility, the assessor shall disqualify
the facility from exemption under section 38, chapter 835, Oregon
Laws 1997.
(b) This subsection does not apply if the decrease in hiring or
in annual average compensation is caused by circumstances beyond
the control of the business firm, including force majeure.
(3) Upon disqualification, + } there shall be added to the tax
extended against the property on the next general property tax
roll, to be collected and distributed in the same manner as the
remainder of ad valorem property taxes, an amount equal to the
{ - difference between the taxes assessed against the property
and improvements and the - } taxes that would otherwise have
been assessed against the property and improvements for each of
the
{ - consecutive - } tax years { - referred to in section 38
(4), chapter 835, Oregon Laws 1997, (or a lesser number of
applicable years) and for any tax years - } { + for which the
property was exempt + } under section 38 { - (2) - } , chapter
835, Oregon Laws 1997 { - , prior to the termination of the
exemption under this section - } .
{ + (4) The additional taxes described in this section shall
be deemed assessed and imposed in the year to which the
additional taxes relate. + }
SECTION 7. { + In order for a taxpayer to claim the property
tax exemption under section 38, chapter 835, Oregon Laws 1997, or
a corporate excise or income tax credit under section 8 of this
2001 Act:
(1) The written agreement between the business firm and the
nonurban enterprise zone sponsor that is required under section
37 (3)(c), chapter 835, Oregon Laws 1997, must be entered into
prior to the termination of the enterprise zone under ORS
285B.686; and
(2) The business firm must obtain certification under section
37, chapter 835, Oregon Laws 1997, on or before December 31,
2004. + }
SECTION 8. { + (1) As used in this section:
(a) 'Facility' has the meaning given that term in section 36,
chapter 835, Oregon Laws 1997.
(b) 'Payroll costs' means the costs of paying employee salary,
wages and other remuneration in cash or property, and employee
benefit costs, including but not limited to workers'
compensation, health, life or other insurance premium payments,
payroll taxes and contributions to pension or other retirement
plans.
(2) A taxpayer that owns a facility that is exempt from
property tax under section 38, chapter 835, Oregon Laws 1997, may
claim a tax credit under this section against the taxes that are
otherwise due under this chapter.
(3) The credit may be claimed over a period of consecutive tax
years elected by the taxpayer:
(a) That must commence on or after the tax year in which the
facility is placed in service and no later than the tax year
beginning in the third calendar year after the year in which the
facility is placed in service;
(b) The duration of which must be at least five tax years and
no more than 15 tax years; and
(c) The duration of which must be established in writing by the
Governor (pursuant to a request made by the taxpayer) prior to
the date on which a return claiming the credit is filed.
(4) The amount of the credit for a tax year shall equal 62.5
percent of the payroll costs of the taxpayer for that tax year
that are attributable to employment at the facility.
(5) The credit computed under subsection (4) of this section
may be offset only against the qualified tax liability of the
taxpayer, as determined under this subsection. To compute the
qualified tax liability of the taxpayer:
(a) Subtract the tax credit threshold amount determined under
subsection (7) of this section from the tax liability of the
taxpayer under this chapter; and
(b) Multiply the difference determined under paragraph (a) of
this subsection by the apportionment factor determined under
subsection (6) of this section.
(6)(a) The apportionment factor to be used in computing the
qualified tax liability of the taxpayer under subsection (5) of
this section shall be a fraction, the numerator of which is
income of the facility for the fiscal year of the taxpayer that
ends in the tax year for which the qualified tax liability of the
taxpayer is being computed, and the denominator of which is the
total Oregon income of the taxpayer for the fiscal year of the
taxpayer that ends in the tax year for which the qualified tax
liability of the taxpayer is being computed. For purposes of this
computation, income shall be determined in accordance with
generally accepted accounting principles and shall be reviewed by
an independent public accountant in a review that is conducted in
accordance with the Statements on Standards for Accounting and
Review Services issued by the American Institute of Certified
Public Accountants.
(b)(A) If no data are prepared that meet the accounting and
review standards set forth in paragraph (a) of this subsection,
the apportionment factor shall be a fraction, the numerator of
which is the sum of the intrastate payroll factor and the
intrastate property factor, and the denominator of which is two.
(B) The intrastate payroll factor is a fraction, the numerator
of which is the total amount paid for compensation at the
qualifying facility during the tax year for which the qualified
tax liability of the taxpayer is being computed, and the
denominator of which is the total amount of compensation paid in
this state during that tax year.
(C) The intrastate property factor is a fraction, the numerator
of which is the average net book value of the facility for the
tax year for which the qualified tax liability of the taxpayer is
being computed, and the denominator of which is the average net
book value of all real and tangible personal property owned or
rented by the taxpayer in this state for that tax year.
(7) The tax credit threshold amount for the tax year for which
the qualified tax liability of the taxpayer is being computed
equals:
(a) $1 million; or
(b) If the facility is one described in section 3 (2) or (3) of
this 2001 Act, the lesser of $1 million or:
(A) If the facility is one described in section 3 (2)(c)(A) of
this 2001 Act, $10,000 multiplied by the number of verified
full-time employees at the facility;
(B) If the facility is one described in section 3 (2)(c)(B) of
this 2001 Act, $12,500 multiplied by the number of verified
full-time employees at the facility; or
(C) If the facility is one described in section 3 (3) of this
2001 Act but not otherwise described under this paragraph,
$15,000 multiplied by the number of verified full-time employees
at the facility.
(8) A tax credit computed under this section for any one tax
year may not exceed the qualified tax liability of the taxpayer
for the tax year.
(9) Any tax credit otherwise allowable under this section that
is not used by the taxpayer in a particular tax year may be
carried forward and offset against the taxpayer's qualified tax
liability for the next succeeding tax year. Any credit remaining
unused in the next succeeding tax year may be carried forward and
used against the taxpayer's qualified tax liability for the
second succeeding tax year. Any credit remaining unused in the
second succeeding tax year may be carried forward and used
against the taxpayer's qualified tax liability for the third
succeeding tax year. Any credit remaining unused in the third
succeeding tax year may be carried forward and used against the
taxpayer's qualified tax liability for the fourth succeeding tax
year. Any credit remaining unused in the fourth succeeding tax
year may be carried forward and used against the taxpayer's
qualified tax liability for the fifth succeeding tax year, but
may not be used in any tax year thereafter.
(10) A tax credit allowed under this section is not in lieu of
any deduction for depreciation, amortization, payroll costs or
any other expense to which the taxpayer may be entitled. + }
SECTION 9. { + Notwithstanding any other provision of law
creating a tax credit against corporate excise or income taxes, a
taxpayer claiming a tax credit under section 8 of this 2001 Act
may not claim any type of tax credit otherwise authorized by law
against the tax credit threshold amount computed under section 8
(7) of this 2001 Act. + }
SECTION 10. { + Notwithstanding ORS 317.850, corporate income
or excise tax payments of a taxpayer allowed a tax credit under
section 8 of this 2001 Act shall be deposited in the Long Term
Enterprise Zone Fund established in section 11 of this 2001 Act,
to the extent those payments do not exceed an amount estimated by
the Department of Revenue to equal 30 percent of the tax credit
threshold amount determined under section 8 (7) of this 2001 Act
plus 30 percent of any remaining qualified tax liability of the
taxpayer under section 8 of this 2001 Act after allowance of the
credit. + }
SECTION 11. { + (1) The Long Term Enterprise Zone Fund is
established, separate and distinct from the General Fund.
(2) Amounts credited to the Long Term Enterprise Zone Fund are
continuously appropriated to the Department of Revenue for the
purpose of making the distributions to local taxing districts
described in section 12 of this 2001 Act.
(3) Amounts in the Long Term Enterprise Zone Fund remaining
unexpended on June 30 of the end of a biennium are transferred to
the General Fund. + }
SECTION 12. { + (1) For each tax year in which a taxpayer
claims a credit under section 8 of this 2001 Act, the Department
of Revenue shall make the following distributions to the local
taxing districts in which the facility that is the basis of the
credit is located:
(a) Thirty percent of the tax credit threshold amount computed
for the tax year, as determined under section 8 (7) of this 2001
Act; and
(b) Thirty percent of the qualifying tax liability of the
taxpayer under section 8 of this 2001 Act that remains following
allowance of the tax credit allowed under section 8 of this 2001
Act.
(2)(a) Amounts to be distributed under subsection (1) of this
section shall be distributed to the local taxing districts of the
code area in which the facility is located that are not school
districts, education service districts, community college
districts or community college service districts.
(b) If the facility is located in more than one code area,
amounts to be distributed under this section shall be allocated
to each code area in which the facility is located, based on the
ratio of the real market value of the facility in each code area
to the total real market value of the facility.
(c) The amount distributed to each district under this section
shall be the amount that bears the same proportion to the total
amount to be distributed under this section as the proportion of
the operating tax billing rate of the district receiving
distribution bears to the total operating tax billing rate of all
of the local taxing districts described in paragraph (a) of this
subsection.
(d) Notwithstanding paragraph (b) of this subsection, the
amount distributed to a local taxing district under this section
for a fiscal year may not exceed the amount of property taxes
forgone by that district as a result of the exemption from
property tax under section 38, chapter 835, Oregon Laws 1997.
(3) If any moneys described in subsection (1) of this section
remain following computation of the distributions to local taxing
districts under subsection (2) of this section, the moneys shall
be distributed to the zone sponsor.
(4) Distributions shall be made under this section on or before
June 1 of each fiscal year. + }
SECTION 13. ORS 318.031 is amended to read:
318.031. It being the intention of the Legislative Assembly
that this chapter and the Corporation Excise Tax Law of 1929
shall be administered as uniformly as possible (allowance being
made for the difference in imposition of the taxes and the
operative date of this chapter), the provisions of ORS 305.140
and 305.150 and ORS chapter 314 and of the following sections of
ORS chapter 315 or 317, as amended on or before August 3, 1955,
and as they may thereafter be amended, are incorporated into this
chapter by this reference and made a part hereof: ORS 315.104,
315.134, 315.156, 315.204, 315.208, 315.234, 315.254, 315.304,
315.504 and 315.604 (all only to the extent applicable for a
corporation) and ORS 317.010, 317.013, 317.018 to 317.022,
317.030, 317.035, 317.038, 317.080, 317.152 to 317.154, 317.259
to 317.303, 317.310 to 317.386, 317.476 to 317.485, 317.510 to
317.635 and 317.705 to 317.725 and { - section 40, chapter 835,
Oregon Laws 1997, and - } section 4, chapter 358, Oregon Laws
1999 { + , and sections 8 to 12 of this 2001 Act + }.
SECTION 14. { + Sections 3, 4 and 7 of this 2001 Act are added
to and made a part of sections 36 to 39, chapter 835, Oregon Laws
1997. + }
SECTION 15. { + Sections 8 to 12 of this 2001 Act are added to
and made a part of ORS chapter 317. + }
SECTION 16. { + Sections 40, 42 and 43, chapter 835, Oregon
Laws 1997, and sections 15, 17 and 27, chapter 1104, Oregon Laws
1999, are repealed. + }
SECTION 17. { + (1) The repeal of section 40, chapter 835,
Oregon Laws 1997, and sections 15 and 17, chapter 1104, Oregon
Laws 1999, does not alter the right of a taxpayer to claim a tax
credit under section 40, chapter 835, Oregon Laws 1997, or
pursuant to section 15 or 17, chapter 1104, Oregon Laws 1999, for
a tax year beginning before January 1, 2001.
(2) Any business firm that, as of the effective date of this
2001 Act, has met the applicable requirements of section 37,
chapter 835, Oregon Laws 1997, as amended and in effect prior to
the effective date of this 2001 Act, or that has met the
requirements of section 15 or 17, chapter 1104, Oregon Laws 1999,
shall be deemed to have met the applicable requirements of
section 3 of this 2001 Act. + }
SECTION 18. { + Sections 8 to 12 of this 2001 Act apply to
corporate excise and income tax years beginning on or after
January 1, 2001. + }
SECTION 19. { + This 2001 Act takes effect on the 91st day
after the date on which the regular session of the Seventy-first
Legislative Assembly adjourns sine die. + }
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