71st OREGON LEGISLATIVE ASSEMBLY--2001 Regular Session
HA to HB 2131
LC 764/HB 2131-3
HOUSE AMENDMENTS TO
HOUSE BILL 2131
By COMMITTEE ON SMART GROWTH AND COMMERCE
April 6
On page 1 of the printed bill, line 5, after '285B.719, '
delete the rest of the line and insert '285B.722, 285B.728,
285B.731 and 311.370 and section 4, chapter 460, Oregon'.
In line 7, delete '285B.722,'.
Delete lines 12 through 31 and delete pages 2 through 34 and
insert:
'
{ + DEFINITIONS + }
' { + SECTION 1. + } ORS 285B.650 is amended to read:
' 285B.650. As used in ORS 285B.650 to 285B.728, unless the
context requires otherwise:
' { + (1) 'Assessment date,' 'assessment year,' 'tax year'
and ' 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 285B.719. + }
' { - (1) - } { + (3) + } 'Business firm' means a person
operating or conducting one or more trades or businesses but does
not include any governmental agency, municipal corporation or
nonprofit corporation.
' { - (2) - } { + (4) + } 'Eligible business firm' means a
firm engaged in an activity described under ORS 285B.707
{ - which may file an application for precertification under ORS
285B.719 - } .
' { - (3) - } { + (5) + } ' Employee' means a person who
works more than 32 hours per week, but does not include
{ - persons - } { + a person + } with { + a + } temporary or
seasonal { - jobs - } { + job + } or { - persons - } { +
a person + } hired solely to construct qualified property.
' { - (4) - } { + (6) + } '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 17 areas designated by the Director
of the Economic and Community Development Department under ORS
285B.653, { - areas - } { + an area + } designated under ORS
285B.677 { - and areas - } { + or an area + } designated
under ORS 285B.689.
' { + (7) '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. + }
' { - (5) - } { + (8) + } 'First-source hiring agreement'
means an agreement between { - a precertified - } { + an
authorized + } business firm and a publicly funded job training
provider whereby the job training provider refers qualified
candidates to the firm for new jobs and job openings in the firm.
{ +
' (9) 'In service' means being used or occupied or fully ready
for use or occupancy in the intended operations of the business
firm described in an application for authorization. + }
' { - (6) - } { + (10) + } 'Modification' means
modernization, renovation or remodeling of an existing building
or structure.
' { + (11) 'New employees hired by the firm':
' (a) Includes only those employees engaged for a majority of
their time in eligible operations.
' (b) Does not include individuals employed in a job or
position that:
' (A) Is filled after December 31 of the first tax year in
which qualified property of the firm is exempt under ORS
285B.698;
' (B) Existed prior to the submission of the relevant
application for authorization; or
' (C) Is performed primarily at a location outside the
enterprise zone. + }
' { - (7) - } { + (12) + } 'Nonurban enterprise zone' means
an enterprise zone located outside a regional or metropolitan
urban growth boundary.
' { - (8) 'Precertified business firm' means an eligible
business firm whose application for precertification has been
approved under ORS 285B.719 and which may apply for a property
tax exemption under ORS 285B.722. - }
' { - (9) - } { + (13) + } 'Publicly funded job training
provider' includes but is not limited to { - , community
colleges, Job Training Partnership Act service providers, and
other similar programs - } { + a community college, Workforce
Investment Act service provider or similar program + }.
' { - (10) - } { + (14) + } 'Qualified business firm' means
a business firm described in ORS 285B.704 whose { - application
for a property tax exemption has been approved under ORS
285B.722 - } { + qualified property is exempt from property tax
under ORS 285B.698 + }.
' { - (11) - } { + (15) + } 'Qualified property' means
property described under ORS 285B.713.
' { + (16) '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 Center for Population Research and
Census. + }
' { - (12) - } { + (17) + } 'Sponsor' means the city or
county that
{ - applied for and - } received approval { - of - } { +
for + } an enterprise zone under ORS 284.150 and 284.160 (1987
Replacement Part), under ORS
{ - 285B.656 and - } 285B.659, under ORS 285B.677 { - or
285B.686 - } or under ORS 285B.689.
' { - (13) - } { + (18) + } 'Urban enterprise zone' means an
enterprise zone in a metropolitan statistical area, as defined by
the most recent federal decennial census, located inside a
regional or metropolitan urban growth boundary.
'
{ + DUTIES OF ECONOMIC AND COMMUNITY + }
{ +
DEVELOPMENT DEPARTMENT + }
' { + SECTION 2. + } ORS 285B.668 is amended to read:
' 285B.668. In addition to any other powers granted by law, for
the purpose of administering ORS 285B.650 to 285B.728, the
Economic and Community Development Department shall:
' (1) Adopt any rules the department considers necessary to
administer ORS 285B.650 to 285B.728.
' (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 { - under - } { + pursuant to + } ORS
285B.677.
' (5) Process sponsor requests for boundary amendments under
ORS 285B.680.
' (6) Take action necessary to terminate or designate zones
under ORS 285B.686 or 285B.689.
' (7) Assist in implementing first-source hiring agreements by
publicly funded job training providers with { - precertified
and qualified - } { + 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 + }.
'
{ + CREATION OF ENTERPRISE ZONE + }
' { + SECTION 3. + } ORS 285B.656 is amended to read:
' 285B.656. (1) Any city or county may apply to the Director of
the Economic and Community Development Department for designation
of an area within that city or county as an enterprise zone. With
the prior consent of the governing body of the city, a county may
apply to the Economic and Community Development Department on
behalf of a city for designation of any area within that city as
an enterprise zone.
' (2) One or more cities and counties may apply to the director
for designation of an area situated partly within each city and
partly in unincorporated territory within the counties as an
enterprise zone.
' { - (3) Any area proposed for designation as an enterprise
zone must consist of a total area of not more than 12 square
miles in size with 12 miles or less as the greatest distance
between any two points within the zone. The area of the zone
shall be calculated by excluding that portion of the zone which
lies below the ordinary high water mark of a navigable body of
water, and any road, railroad, electric transmission line or
pipeline rights of way that connect otherwise unconnected areas
of an enterprise zone. Such areas shall not be more than five
miles apart. - }
' { - (4) - } { + (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
action 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 285B.662 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 285B.671.
' { - (5) - } { + (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 + }
' { - (6) When applying for designation of an enterprise zone
within its boundaries under this section, the applicant may
include in the application - } { +
' (b) + } Proposals for local incentives and local regulatory
flexibility to { - precertified - } { + authorized + } or
qualified business firms.
' { - (7) - } { + (5) + } In the case of joint applications
by more than one local government unit, each city or county
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.
' { - (8) - } { + (6) + } Proposals under subsection
{ - (5), (6) or (7) - } { + (4) or (5) + } of this section for
enhanced local public services, local incentives or local
regulatory flexibility included in the application by a city or
county for an enterprise zone are binding upon the city or county
if an enterprise zone is designated wholly or partly within its
boundaries.
' { - (9) Notwithstanding ORS 285B.716 (1), when applying for
designation of an enterprise zone, an applicant may choose to
exempt qualified property owned or leased and operated by a
business firm as a hotel, motel or destination resort, for any
business firm that is precertified in the proposed zone after its
designation, if the exemption is requested by resolution of each
city or county sponsoring the application. - }
' { + (7) An applicant for designation of an enterprise zone
may, at the time the application is made, elect to permit a
business firm operating a hotel, motel or destination resort to
be an eligible business firm with respect to those operations.
The election shall be made by a resolution adopted by the
governing body of the city or county seeking zone
designation. + }
' { + SECTION 4. + } ORS 285B.653 is amended to read:
' 285B.653. (1) The Director of the Economic and Community
Development Department may approve the designation of up to 17
areas as nonurban enterprise zones as provided in ORS 285B.656
and 285B.659.
' (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, and areas
designated under ORS 285B.677 and 285B.689 { - and shall
terminate in accordance with ORS 285B.686 (3) - } .
' { + SECTION 5. + } Section 4, chapter 460, Oregon Laws
1999, is amended to read:
' { + Sec. 4. + } (1) As used in this section, 'eastern
Oregon' has the meaning given that term in ORS 321.405 but also
includes Hood River County.
' (2) Of the 10 additional enterprise zones provided for in the
amendments to ORS 285B.653 by section 2 { + , chapter 460, Oregon
Laws 1999, + } { - of this 1999 Act - } and initially
designated after { - the effective date of this 1999 Act - }
{ + October 23, 1999 + }, at least four of the enterprise zones
must be located in eastern Oregon.
' (3) The designation of any { + of the 10 additional + }
enterprise
{ - zone - } { + zones + } provided for in the amendments to
ORS 285B.653 by section 2 { + , chapter 460, Oregon Laws
1999, + } { - of this 1999 Act - } is not effective unless
made on or before January 1, 2004.
' { - (4) When requesting a change to the boundary of an
enterprise zone under ORS 285B.680, the zone sponsor and any
other city or county that seeks to become a sponsor as part of
the boundary change proceeding may request a waiver of the
distance limit imposed under ORS 285B.683 (1)(c). The Director of
the Economic and Community Development Department shall grant the
waiver and order the change to the enterprise zone boundary,
if: - }
' { - (a) The proposed boundary change satisfies all other
requirements for a boundary change; and - }
' { - (b) The director makes a determination, consistent with
rules adopted by the Economic and Community Development
Department, that designation of a separate enterprise zone is not
a practical option under the particular circumstances, that the
overall distances involved can be effectively administered and
that the waiver will further the goals and purposes of applicable
state policies. - }
' { + SECTION 6. + } ORS 285B.677 is amended to read:
' 285B.677. { - (1) As used in this section, '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. - }
' { - (2) - } { + (1) + } The Economic and Community
Development Department shall be the lead agency for state
participation in a federal enterprise zone program. The Director
of the Economic and Community Development Department may take
action necessary for such participation to the extent allowed by
state law.
' { - (3) - } { + (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 or county within whose jurisdiction some or all
of the federal enterprise zone is located, without regard to any
limitation contained in ORS { - 285B.656 (3) or - } 285B.662.
' { - (4) - } { + (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 any limitation contained in ORS 285B.680
(2). A change in the boundary of an existing state enterprise
zone under this subsection { - shall - } { + does + } not
change the termination date of the enterprise zone under ORS
285B.686 { - (3) - } { + (2) + }.
' { - (5) - } { + (4) + } A request by a city or county
under subsection
{ - (3) or (4) - } { + (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 or county; and
' (b) Provide that all areas within both the federal enterprise
zone and the city or county are included in a state enterprise
zone.
' { - (6) - } { + (5) + } The termination under federal law
of a federal enterprise zone { - shall - } { + 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.
' { + SECTION 7. + } ORS 285B.662 is amended to read:
' 285B.662. { + (1) + } A proposed enterprise zone must be
located in a local area in which:
' { - (1) - } { + (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;
' { - (2) - } { + (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 Center for Population
Research and Census or special studies conducted under a contract
with a regional academic institution; or
' { - (3) - } { + (c) + } The Economic and Community
Development Department determines on a case-by-case basis using
evidence provided by the cities or counties applying for
designation of the proposed enterprise zone that there exists a
level of economic hardship at least as severe as that described
in { - subsection (1) or (2) of this section - } { +
paragraph (a) or (b) of this subsection + }. Such 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) Any area proposed for designation as 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 nonurban 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, when the zone is entirely
contained within a sparsely populated county. + }
'
{ + MANAGEMENT OF ENTERPRISE ZONE + }
' { + SECTION 8. + } ORS 285B.671 is amended to read:
' 285B.671. (1) The sponsor of an enterprise zone shall:
' (a) Appoint a local zone manager. Upon appointment of the
local zone manager, the sponsor shall provide written notice
thereof to the Economic and Community Development Department, the
county assessor and the Department of Revenue.
' (b) Provide enhanced local public services, local incentives
and local regulatory flexibility included in the application for
designation of the enterprise zone or in the resolution under ORS
285B.680 (6) to { - precertified - } { + authorized + } or
qualified business firms { + and assist authorized or qualified
business firms in using the enhanced services, incentives and
regulatory flexibility + }.
' (c) { - Process - } { + Review and approve or deny + }
applications { - from eligible business firms - } for
{ - precertification - } { + authorization + } under ORS
285B.719.
' (d) Assist the county assessor in { - reviewing tax
exemption applications under ORS 285B.722 - } { + administering
the property tax exemption under ORS 285B.650 to 285B.728 + }.
' (e) { - Prepare, implement and annually - } { + 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
285B.650 to 285B.728.
' (g) Identify property available for sale or lease to eligible
business firms under ORS 285B.674.
' (h) Prepare indices of street addresses, tax lot numbers or
other information to facilitate the identification of land inside
{ - of - } an urban enterprise zone.
' { + (i) Provide written notice to the county assessor, the
Department of Revenue, the Economic and Community Development
Department and any relevant publicly funded job training provider
of the conditions and policies adopted by the sponsor under
section 17 of this 2001 Act and take the actions necessary to
implement and enforce these conditions and policies. + }
' { - (2) A sponsor of an enterprise zone may require that an
application for precertification be accompanied by a filing fee
of $200 or up to one-tenth of one percent of the value of the
proposed investment in qualified property at the time of the
precertification. - }
' { - (3) - } { + (2) + } If more than one city or county
sponsors an enterprise zone, they shall act jointly in performing
the duties imposed on a sponsor under ORS 285B.650 to 285B.728.
' { - (4) Notwithstanding ORS 285B.719 (3), the sponsor of an
urban enterprise zone may require an eligible business firm
seeking precertification under ORS 285B.719 within that zone to
satisfy other conditions for precertification that the zone
sponsor may impose that are reasonably related to the public
purpose of providing opportunities for groups of persons, as
defined by the zone sponsor, to obtain employment, including but
not limited to provisions for training and procedures for
monitoring and verifying compliance with the conditions. Such
conditions may be imposed only pursuant to a policy adopted by
the zone sponsor that establishes standards for the imposition of
the conditions. Conditions imposed by a zone sponsor under this
subsection shall be in addition to, and not in lieu of,
conditions and requirements imposed under ORS 285B.650 to
285B.728 and shall not affect the duties of the Department of
Revenue under ORS 285B.692 or of the county assessor under ORS
285B.695. - }
' { - (5) A sponsor of an enterprise zone that imposes
conditions for precertification on eligible business firms under
subsection (4) of this section shall submit a written report
every four years to the Legislative Assembly concerning the
application and effects of such conditions on the eligible
businesses within the enterprise zone. A report required by this
subsection shall first be submitted to the Seventieth Legislative
Assembly. - }
' { + SECTION 9. + } ORS 285B.674 is amended to read:
' 285B.674. Subject to the requirements of the Oregon
Constitution { - and any - } { + 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 { - precertified or qualified business firms - }
{ + any authorized business firm + }. Real property shall be
leased or sold under this section only upon the condition that
{ - an eligible - } { + the + } business firm promptly develop
the real property for a use { - which has been precertified - }
{ + that is consistent with the use described in the
application for authorization + } under ORS 285B.719.
' { + SECTION 10. + } ORS 285B.680 is amended to read:
' 285B.680. (1) The sponsor of an enterprise zone may submit a
request to the Economic and Community Development Department to
change the boundary of the enterprise zone. A request shall
include:
' (a) A resolution of the governing body of the sponsor
requesting the change;
' (b) A map clearly indicating the existing boundary and the
proposed change thereto;
' (c) A legal description of each area to be withdrawn from or
added to the existing enterprise zone; and
' (d) Other information required by the department.
' (2) The amended enterprise zone shall:
' (a) Add land zoned for use by eligible business firms
{ - : - }
' { - (A) Which - } { + that + } has or will have
infrastructure facilities { + , + } { - available; or - }
' { - (B) Where - } road access { - exists or will be
provided - } , { + on-site + } water { - is or will be
available on-site - } , { + on-site + } sewage disposal { - is
or will be provided on-site - } and necessary utility services
{ - are or will be provided - } ;
' (b) Continue to include any { - precertified - } { +
authorized + } or qualified business firms within the enterprise
zone;
' (c) Add residential areas only if the level of economic
hardship { - therein - } { + in the amended enterprise
zone + } is at least as severe as the original enterprise zone;
' (d) Retain at least 50 percent of the lands in the original
enterprise zone; { + and + }
' { - (e) 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 which lies below the ordinary
high water mark of a navigable body of water, and any road,
railroad, electric transmission line or pipeline rights of way
that connect otherwise unconnected areas of an enterprise zone.
Such areas shall not be more than five miles apart; and - }
' { - (f) Have 12 miles or less as the greatest distance
between any two points within a zone amended under this
section. - }
' { + (e) Meet the applicable total area and greatest
distance requirements set forth in ORS 285B.662. + }
' (3) A request under subsection (1) of this section may
include a proposal to:
' (a) Remove { + only land that is + } residential { - areas
or land - } { + or + } not zoned or available for use by
eligible business firms; or
' (b) Change the name of the enterprise zone.
' (4) The boundary of an urban enterprise zone shall not be
modified to include land located outside a regional or
metropolitan urban growth boundary.
' (5) A request to modify the boundary of a nonurban 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 { - include such - } { + satisfy any + }
other criteria { - as - } { + that + } the department may
adopt by rule.
' (6) If an area to be added to an enterprise zone is under the
jurisdiction of a city or county that is not a sponsor of the
enterprise zone, the governing body of that city or county shall
submit a resolution requesting the change and { - that it - }
{ + requesting that the city or county + } become a sponsor.
The resolution may 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 or county.
' (7) The department shall review the request for a boundary
change. If the request is incomplete or does not satisfy the
requirements of this section, the department shall seek
additional information as necessary or shall return the request
to the sponsor. If the request is returned, the sponsor may
submit a revised request at any time. If the request is complete
and does satisfy the requirements of this section, the Director
of the Economic and Community Development Department shall order
a change in the boundary of an enterprise zone based on the
request of the sponsor and specify the effective date of the
boundary change, which { - shall - } { + may + } not be
earlier than the receipt of a completed request.
' (8) A change in the boundary of an enterprise zone under this
section { - shall - } { + does + } not change the termination
date of the enterprise zone under ORS 285B.686 { - (3) - }
{ + (2) + }.
' { + SECTION 11. + } ORS 285B.683 is amended to read:
' 285B.683. { - (1) Notwithstanding ORS 285B.656 (3) and
285B.680 (2)(e) and (f), a nonurban enterprise zone may be
designated under ORS 285B.659 or 285B.689 or have its zone
boundary changed under ORS 285B.680 so that: - }
' { - (a) A separate area of the zone may be as far as 15
miles from another area of the zone, when the separate area is
entirely contained within a sparsely populated county; - }
' { - (b) The zone may have 20 or fewer miles as the greatest
distance between any two points within the zone, when only a
portion of the zone is contained within a sparsely populated
county; or - }
' { - (c) The zone may have 25 or fewer miles as the greatest
distance between any two points within the zone, when the zone is
entirely contained within a sparsely populated county or within
two or more sparsely populated counties. - }
' { - (2) - } { + + }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 { + nonurban + } enterprise zone located wholly or
partly within that county that was designated { + under ORS
285B.653 + }or that had its zone boundary changed under
{ - subsection (1) of this section - } { + ORS 285B.680 + }
shall continue to exist with that zone boundary until
terminated { + . + } { - or until - } A { - subsequent - }
boundary change under ORS 285B.680 { + that is subsequent to the
date on which the county ceases to be a sparsely populated county
may + } { - . However, any subsequent boundary change under ORS
285B.680 shall - } not add an area to the zone that:
' { - (a) - } { + (1) + } Is a separate area farther than
five miles from the nearest point on the existing boundary;
' { - (b) - } { + (2) + } Increases the distance between the
two points in the zone that are the farthest apart; or
' { - (c) - } { + (3) + } 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.
' { - (3) Subsection (2) of this section does not limit the
maximum distance within an enterprise zone to less than what is
otherwise specifically allowed under subsection (1) of this
section or ORS 285B.677 or 285B.680. - }
' { - (4) Nothing in this section allows an enterprise zone to
be more than 12 square miles in total area except as provided
under ORS 285B.677. - }
' { - (5) As used in this section, '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 Center
for Population Research and Census. - }
' { + SECTION 12. + } { + A sponsor that requests a change
to a nonurban enterprise zone under ORS 285B.680 on or before
January 1, 2008, may request a waiver of the distance limit
imposed on the zone under ORS 285B.662 (4)(b). The Director of
the Economic and Community Development Department shall grant the
waiver if:
' (1) The proposed boundary change satisfies all other
requirements for a boundary change under ORS 285B.680; and
' (2) The director determines, consistent with rules adopted by
the Economic and Community Development Department, that
designation of a separate enterprise zone is not a practical
option under the particular circumstances, that the overall
distances involved can be effectively administered and that the
waiver will further the goals and purposes of ORS 285B.650 to
285B.728. + }
'
{ + DUTIES OF PROPERTY TAX ADMINISTRATORS + }
' { + SECTION 13. + } ORS 285B.692 is amended to read:
' 285B.692. In addition to any other powers granted by law, for
the purposes of ORS { - 285B.692 - } { + 285B.650 + } to
285B.728, the Department of Revenue shall:
' (1) Adopt any rules the Department of Revenue considers
necessary to implement ORS 285B.692, 285B.695, 285B.698,
{ + 285B.701, + } 285B.713, 285B.719, 285B.722 { - ,
285B.725 - } and 285B.728 { + and sections 24, 29 and 31 of
this 2001 Act + }.
' (2) Assist the Economic and Community Development Department,
county assessors and the sponsors of enterprise zones in their
efforts to { - precertify - } { + 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
{ - eligible - } business firms { - applying for
precertification or by precertified business firms applying for a
property tax exemption under ORS 285B.719 or 285B.722 - } { +
to make authorization or exemption applications + }.
' { - (5) Submit a written report to the Economic and
Community Development Department on or before January 15 in each
year. The report shall include the number of jobs created and the
value of investments in qualified property made by qualified
business firms in the current tax year, and other information
considered necessary by the Department of Revenue or required by
the Economic and Community Development Department. - }
' { + SECTION 14. + } ORS 285B.695 is amended to read:
' 285B.695. The assessor of a county within which an enterprise
zone is located shall:
' (1) Assist the local zone manager and { - eligible or
precertified - } business firms in determining whether property
will qualify for a property tax exemption under ORS 285B.698
{ - and 285B.713 - } .
' (2) Review and approve or deny applications from eligible
business firms for { - precertification - } { +
authorization + } under ORS 285B.719.
' (3) Process applications { - from - } { + for exemption
filed under ORS 285B.722 and exempt qualified property of + }
{ - precertified - } { + authorized + } business firms
{ - for - } { + from ad valorem + } property tax
{ - exemptions under ORS 285B.722 - } { + in accordance with
ORS 285B.650 to 285B.728 + }.
' (4) Take action necessary under ORS 285B.728 { - if a
business firm or property is no longer qualified for the property
tax exemption - } .
' (5) Submit a written report to the Department of Revenue on
or before { - December 1 in - } { + August 1 of + } each { +
assessment + } year. The report { + for each qualified business
firm + } shall include the { - number of jobs created and the
value of investments in qualified property made by qualified
business firms in the current tax year, and other information
considered necessary by the assessor or required by the
Department of Revenue. The assessor shall provide copies of the
report to the sponsors of enterprise zones located within the
county and as directed by the Department of Revenue. - }
{ + following:
' (a) The assessor's estimate of the assessed value of
qualified property that was exempt under ORS 285B.698 for the
previous tax year.
' (b) The average number of employees of the firm during the
previous assessment year within the enterprise zone.
' (c) The average annual 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 section 18 (3) of this 2001 Act.
' (d) The assessor's estimate of the assessed value, for the
current tax year, of property that was exempt under ORS 285B.698
for the previous tax year and that is not exempt under ORS
285B.698 for the current tax year.
' (e) The assessor's estimate of the real market value of
qualified property first reported on the application filed under
ORS 285B.722 for the current tax year.
' (f) Any other information the assessor or the Department of
Revenue considers necessary to determine whether the property
continues to qualify for exemption under ORS 285B.698.
' (6) Send a copy of a report prepared under subsection (5) of
this section to the sponsor of the enterprise zone in which the
qualified business firm is located and to the Economic and
Community Development Department. + }
'
{ + ELIGIBLE BUSINESS FIRMS + }
' { + SECTION 15. + } ORS 285B.707 is amended to read:
' 285B.707. (1) { - Except as provided in subsections (3) and
(4) of this section, - } 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 other businesses { - , and not to
the general public for personal or household use or
consumption, - } through activities including, but not limited
to, manufacturing, assembly, fabrication, processing, shipping or
storage.
' (2) { + A business firm that is engaged within the
enterprise zone in the business of providing goods, products or
services to the general public for personal or household use is
not an eligible business firm. A business firm + }
{ - Businesses - } significantly engaged in { + a + } business
{ - activities - } { + activity + } within the enterprise zone
{ - such as - } { + 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 { - are not eligible
business firms - } { + is not an eligible business firm + }.
' { - (3) Notwithstanding subsection (1) or (2) of this
section, a business firm that operates a hotel, motel or
destination resort is an eligible business firm regardless of the
sale of services for personal consumption, if allowed in the
enterprise zone under ORS 285B.716. - }
' { - (4) - } { + (3) + } { - Notwithstanding any other
provision of this section, - } 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 285B.698. + }
{ - For purposes of determining whether a business firm
described in this subsection satisfies the requirements of ORS
285B.704, only the operations of the firm that are described in
subsection (1) of this section and employees working a majority
of their time in those operations shall be considered. - }
' { - (5) - } { + (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.
' { - (6) - } { + (5) + } Notwithstanding subsection (1) or
(2) of this section, { + each of the following business firms is
an eligible business firm:
' (a) + } A business firm engaged in the activity of providing
a retail or financial service { + within the enterprise zone + }
{ - is an eligible business firm - } if:
' { - (a) - } { + (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) - } { + (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.
' { - (7) Notwithstanding subsection (1) or (2) of this
section, - }
' { + (b) + } A business firm that { - makes an investment
in qualified property at - } { + 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 { - is an eligible business firm - } , without
regard to the relationship of { - such - } { + these + }
activities to any otherwise eligible activities within the
enterprise zone { + . + }
{ - if: - }
' { - (a) In approving the application for precertification,
the zone sponsor includes with the application a formal finding
that the facility complies with the requirements of this
subsection and that the size of the proposed investment, the
employment at the facility or the nature of the activities at the
facility will significantly enhance the local economy, in
relation to the overall purpose and employment of the zone; - }
' { - (b) The actual investment and facility of the firm are
consistent with the descriptions presented in the
precertification application; and - }
' { - (c) For purposes of ORS 285B.704, all employees at the
facility constitute employment of the firm, as defined in ORS
285B.704. - }
' { + (c) A business firm that operates a hotel, motel or
destination resort in the enterprise zone if the sponsor has
elected under ORS 285B.656 to treat a business firm engaged in
hotel, motel or destination resort operations in an enterprise
zone as an eligible business firm. + }
'
{ + AUTHORIZATION + }
' { + SECTION 16. + } ORS 285B.719 is amended to read:
' 285B.719. (1) Any eligible business firm { - proposing to
apply for the tax exemption provided - } { + seeking to have
property exempt from property tax + } under ORS 285B.698
{ - shall - } { + must + }, 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 { - precertification with the sponsor of
the zone and with the county assessor of the county or counties
in which the zone is located - } { + authorization under this
section + }. The application shall be made on a form prescribed
by the Department of Revenue and the Economic and Community
Development Department. { + The application shall be filed
with the sponsor of the zone. A zone sponsor may require that the
application filed with the sponsor be accompanied by a filing
fee. If required, the filing fee may not exceed the greater of
$200 or one-tenth of one percent of the value of the investment
in qualified property that is proposed in the application for
authorization. The filing fee may be required for the filing of
applications only after the sponsor adopts a policy, consistent
with Economic and Community Development Department rules,
authorizing the imposition of the filing fee. + }
' (2) The application shall contain the following information:
' (a) A description of the nature of the firm's { + current
and proposed + } business operations { - in - } { + inside
the boundary of + } the enterprise zone;
' (b) A description and estimated { - cost or - } value of
the qualified property to be constructed, { + added, + }
modified or installed
{ - in - } { + 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 285B.704
{ + and 285B.710, and to verify compliance with these
requirements + };
' (e) A commitment to satisfy all additional conditions for
{ - precertification - } { + authorization + } that are
imposed by the enterprise zone sponsor under { - ORS 285B.671
(4) - } { + section 17 of this 2001 Act or pursuant to
agreement entered into under section 18 of this 2001 Act, and to
verify compliance with these additional conditions + }; and
' (f) Any other information considered necessary by the
Department of Revenue and the Economic and Community Development
Department.
' { + (3) If an application for authorization appears to be
complete and the proposed investment appears to be eligible for
authorization, the zone sponsor and the business firm shall
conduct a preapproval consultation. The county assessor shall be
timely notified and have the option to participate in the
consultation. The consultation shall:
' (a) Identify potential issues that may 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.
' (4) Upon completion of the consultation, a written summary of
the determination made under subsection (3) of this section shall
be prepared by the zone sponsor. The summary shall be attached to
the application and the application shall be forwarded to the
county assessor of each county in which the zone is located, for
review by the assessor. + }
' { - (3) - } { + (5) + } If the sponsor and county assessor
determine that { + the current or proposed operations of + }
the business firm { - is - } { + in the enterprise zone
result in the firm being + } eligible under ORS 285B.707 and that
the firm has { - committed to meet the requirements of ORS
285B.704 - } { + made the commitments required under subsection
(2)(d) and (e) of this section + }, the sponsor and county
assessor shall { - precertify - } { + authorize + } the
business firm by approving the application.
' { + (6) If the business firm seeking authorization is an
eligible business firm described in ORS 285B.707 (5)(b), the zone
sponsor must, as a condition to approving the application, make a
formal finding that the business firm is an eligible business
firm under ORS 285B.707 and that the size of the proposed
investment, the employment at the facility of the firm or the
nature of the activities engaged in 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.
' (7) + } The approval of both the sponsor and the county
assessor shall be prima facie evidence that the
{ - eligible - } { + qualified property of the + } business
firm will { - be qualified for - } { + receive + } the
property tax exemption under ORS 285B.698. Neither the sponsor
nor the county assessor shall be liable in any way if the
Department of Revenue { + or county assessor + } later
determines that { - a precertified - } { + an authorized + }
business firm { - is not qualified - } { + does not satisfy
the requirements + }for a property tax exemption { - or if
either the county assessor or the Department of Revenue
determines that the precertified business firm has not satisfied
the requirements of ORS 285B.704 - } . In approving the
application, the sponsor and county assessor shall provide proof
of approval as directed by the Economic and Community Development
Department.
' { - (4) - } { + (8) + } If the sponsor or county assessor
fails or refuses to { - precertify - } { + 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 Economic and
Community Development Department.
' { - (5) Notwithstanding the fact that an enterprise zone has
terminated under ORS 285B.686 or that a zone boundary has been
changed, an eligible business firm that has obtained
precertification under this section shall be entitled to a
property tax exemption under ORS 285B.698, if, as determined by
the Economic and Community Development Department: - }
' { - (a) The firm's application for precertification has not
been withdrawn by the firm or has not expired; - }
' { - (b) The firm completes construction, modification or
installation of the qualified property within a reasonable time
and without interruption of construction or installation
activity; and - }
' { - (c) The firm satisfies all other requirements of ORS
285B.704 and the precertification. - }
' { - (6) If an enterprise zone is terminated under ORS
285B.686, the exemption under ORS 285B.698 shall be granted only
if the sponsor and county assessor approve the application for
precertification, such that the sponsor, county assessor or both
formally granted such approval on or before the effective date of
the termination of the zone, and the business firm satisfies
subsection (5) of this section. If the sponsor or county assessor
refuses or fails to precertify the firm under this subsection,
the firm may appeal under subsection (4) of this section and may
be granted the exemption. - }
' { - (7) - } { + (9) + } { - Precertification - } { +
Authorization + }under this section { - shall - } { +
does + } not ensure that property constructed, { + added, + }
modified or installed by the { - precertified - } { +
authorized + } business firm will receive property tax exemption
under ORS 285B.698.
' { - (8) Notwithstanding any other provision of this section,
if a business firm satisfies the requirements of ORS 285B.704 and
has constructed, modified or installed qualified property
eligible for exemption under ORS 285B.698, the precertification
requirement of subsection (1) of this section or ORS 285B.722 may
be waived as specifically provided by rule or for good cause by
the Department of Revenue. - }
' { + (10) 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 285B.713, and the property
has not yet been subject to property tax, then, for purposes of
ORS 285B.650 to 285B.728, the firm shall be authorized under this
section if:
' (a) The firm files an application under this section and
obtains approval from the sponsor and county assessor; and
' (b)(A) Rules adopted by the Economic and Community
Development Department permit the firm to be authorized under
this section; or
' (B) Upon a showing of good cause for the firm's failure to
apply for authorization before beginning the construction,
addition, modification or installation of the property, the
Department of Revenue issues an order stating that the firm is
authorized under this section. + }
' { + SECTION 17. + } { + (1) The sponsor of an urban
enterprise zone may require an eligible business firm seeking
authorization under ORS 285B.719 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 these 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 these 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 285B.650 to 285B.728 or pursuant
to an agreement entered into under section 18 of this 2001 Act
and do not affect the duties of the Department of Revenue or of
the county assessor under ORS 285B.650 to 285B.728.
' (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 these conditions on business firms within the enterprise
zone. + }
' { + SECTION 18. + } { + (1) An eligible business firm
seeking authorization under ORS 285B.719 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 tax under ORS 285B.698 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:
' (a) If the enterprise zone is a nonurban 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's
average annual wage until the end of the tax exemption period. If
the zone is in more than one county, the average rate of
compensation of all new employees hired by the firm must be not
less than 150 percent of the average annual wage of the county
with the highest average annual wage.
' (B) Any additional requirement that the zone 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. + }
'
{ + PROPERTY TAX EXEMPTION + }
' { + SECTION 19. + } ORS 285B.698 is amended to read:
' 285B.698. { - (1) Upon compliance with ORS 285B.722,
qualified property of a qualified business firm shall be exempt
from ad valorem property taxation, if: - }
' { - (a) The qualified property was constructed, added to,
modified or installed in furtherance of the production of
income; - }
' { - (b) The property or portion of the property for which
exemption is sought was in use or occupancy no later than April 1
of the assessment year for which exemption is sought; - }
' { - (c) The total cost of all of the qualified property for
which application for exemption is made was at least $25,000;
and - }
' { - (d) The property satisfies the requirements of ORS
285B.713. - }
' { - (2) The exemption allowed under this section shall be
allowed only for property that is owned or leased by a qualified
business firm that satisfies the requirements of ORS 285B.704. If
the property is leased by a qualified business firm, the
qualified business firm must be required by the terms of the
lease to pay or compensate the owner for the entire amount of
property taxes assessed against the leased property during the
lease term. - }
' { + (1) Property of an authorized business firm is exempt
from ad valorem property tax if:
' (a) The property is qualified property under ORS 285B.713;
' (b) The firm meets the qualifications under ORS 285B.704; and
' (c) The firm has entered into a first-source hiring agreement
under ORS 285B.710. + }
' { - (3)(a) - } { + (2)(a) + } The exemption allowed under
this section
{ - shall first apply to the assessment year immediately
following completion of the construction, addition, modification
or installation of - } { + applies to the first tax year for
which, as of April 1 preceding the tax year, + } the
{ + qualified + } property { + is in service + }. The exemption
shall continue for the { + next + } two succeeding
{ - assessment - } { + tax + } years if the property
continues to be owned or leased by the { - qualified - }
business firm and located in the enterprise zone.
' { + (b) The property may be exempt from property tax 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 section 18 of this 2001
Act. + }
' { - (b) - } { + (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 { - of
abatement - } { + 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 { - abatement - } { + 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 285B.728 (3) - } { + section 24 of this 2001
Act + }.
' { - (4) - } { + (3) + } 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. 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.
' { - (5)(a) - } { + (4)(a) + } { - No exemption shall - }
{ + An exemption may not + } be granted for property assessed
for property tax purposes in the county in which the zone 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) { - No exemption shall - } { + An exemption may
not + } be granted for property constructed, added { - to - } ,
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) { - No exemption shall - } { + An exemption may
not + } be granted for any qualified property that was in use or
occupancy within the zone for more than 12 months by December 31
preceding the first assessment year for which an application for
exemption is made.
' (d) { - No exemption shall - } { + An exemption may
not + } be granted for any qualified property unless the property
was in use or occupancy in the assessment year immediately
following completion of construction, addition, modification or
installation.
' (e) Except as provided in { - ORS 285B.719 (6), no
exemption shall - } { + ORS 285B.686, an exemption may not + }
be granted for qualified property constructed, { + added, + }
modified or installed after termination of an enterprise zone.
' { - (6) A qualified business firm may apply for a tax
exemption for additional qualified property initially occupied or
used during or after the first year in which a tax exemption for
the firm's initial investment in qualified property was approved
if the firm meets the applicable requirements of this section and
ORS 285B.701, 285B.704, 285B.707, 285B.710, 285B.713, 285B.716,
285B.719 and 285B.722. - }
' { + (5) The 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.
' (6) 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 285B.728, by adding the notation 'enterprise zone
exemption (potential additional tax).' + }
' { + SECTION 20. + } ORS 285B.713 is amended to read:
' 285B.713. { - (1) The property tax exemption provided under
ORS 285B.698 shall be available only for qualified property of a
qualified business firm. - }
' { - (2) - } { + (1) + } The following kinds of property
are qualified for
{ - the - } exemption { - allowed - } under ORS 285B.698:
' (a) A { - new - } { + newly constructed + } building or
structure with a cost of $25,000 or more.
' (b) { - An - } { + A new + } addition to or modification
of an existing { + or newly constructed + } building or
structure. The total cost of qualifying additions or
modifications to an existing building or structure shall be at
least $25,000 in one assessment year. In order to satisfy the
minimum investment requirement, the cost of two or more additions
or modifications made in one assessment year to a single building
or structure may be aggregated.
' (c) Any real property machinery or equipment, whether new,
used or reconditioned, that is newly purchased { - , - } { +
or newly + }leased { + by an authorized business firm, + }or
{ + newly + } transferred into the enterprise zone from outside
the county within which the zone is located { + , + } and
installed in property owned or leased by { - a qualified
business - } { + the + } firm.
' (d) Any single item of personal property machinery or
equipment, whether new, used or reconditioned, that is newly
purchased { - , - } { + or newly + } leased { + by an
authorized business firm, + } or { + newly + } transferred into
the enterprise zone from outside the county within which the zone
is located and installed in property owned or leased by { - a
qualified business - } { + the + } firm and:
' (A) That has a cost of at least $1,000 if the property is
used exclusively for producing tangible goods; or
' (B) That has a cost of at least $50,000.
' { - (e) A new building and associated structures owned by a
governmental body that are leased to one or more qualified
business firms. - }
' { - (f) Any property otherwise described in this section
that is owned or leased and operated by a business firm operating
a hotel, motel or destination resort, to the extent that the
property is located on the same site as the hotel, motel or
destination resort and is used primarily to serve overnight
guests of the hotel, motel or destination resort. For purposes of
this paragraph, property is primarily used to serve guests if at
least 50 percent of any receipts from such use are paid by
guests. - }
' { - (g) Any property otherwise described in this section
that is owned or leased and operated by a business firm described
in ORS 285B.707 (4), to the extent that the property is used
exclusively in an activity described in ORS 285B.707 (1). - }
' { + (2) Property described in subsection (1) of this
section is qualified under this section only if:
' (a) The property was constructed, added, modified or
installed to further the production of income;
' (b) The property is owned or leased by an authorized business
firm;
' (c) The property is located at a single site or at multiple
sites that are adjacent to or have comparable proximity to each
other inside the boundaries of the enterprise zone; and
' (d) In the case of the property of an eligible business firm
described in ORS 285B.707 (5)(b), the actual investment at the
facility of the firm is consistent with the descriptions
presented in the authorization application.
' (3)(a) Property described in subsection (1) of this section
that is leased by the authorized business firm is qualified under
this section only if the terms of the lease provide that the firm
must compensate the owner for all property taxes assessed against
the leased property during the term of the lease or that the firm
must pay these taxes directly during the term of the lease.
' (b) The term of a lease described in paragraph (a) of this
subsection may not be shorter than the period for which the
property will be exempt under ORS 285B.698.
' (4) Property described in subsection (1) of this section that
is owned or leased by an authorized business firm operating a
hotel, motel or destination resort in an enterprise zone is
qualified under this section only if the property is located on
the same site as the hotel, motel or destination resort and is
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. + }
' { - (3) - } { + (5) Notwithstanding subsection (1) of this
section, + } the following property is not qualified for
exemption under ORS 285B.698:
' (a) Land.
' (b) { - Self-propelled motorized vehicles - } { + Any
vehicle that is suitable as a mode of transportation beyond the
enterprise zone boundary, without regard to whether the vehicle
is registered under the Oregon Vehicle Code + }.
' (c) { + (A) + } { - Property excluded under ORS 285B.698
(5) - } { + Property that was not in use or occupancy for more
than a 180-day period that ends during the preceding assessment
year.
' (B) This paragraph does not apply to the first assessment
year for which the property is exempt under ORS 285B.698.
' (d) On-site developments that are assessed as part of the
land, including but not limited to yard improvements or
underground utilities.
' (e) Noninventory supplies, including but not limited to
lubricants + }.
' { + SECTION 21. + } ORS 285B.701 is amended to read:
' 285B.701. (1) The Legislative Assembly finds that the
standard procedure for { - precertification - } { +
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 285B.719 (1), a new building or
structure or an addition to or modification of an existing
building or structure may { - qualify - } { + satisfy the
requirements + } for the exemption allowed under ORS 285B.698
{ - or 285B.710 - } if the qualified property is leased or sold
by an unrelated party to one or more { - precertified - } { +
authorized + } business firms after commencement of the
construction, addition or modification but prior to use or
occupancy of the qualified property.
' (3) { - For purposes of ORS 285B.722, - } A business firm
{ - shall - } { + may + } not be considered
{ - precertified - } { + authorized + } and is not qualified
for the exemption allowed under ORS 285B.698 { - or
285B.710 - } if the county assessor discovers prior to initially
granting the exemption that the application for
{ - precertification - } { + authorization + } was not
submitted by the business firm in a timely manner in accordance
with ORS 285B.719 { - (1) - } , except as allowed under
subsection (2) of this section or ORS 285B.719 { - (8) - }
{ + (10) + }.
' (4) { - Records, communications - } { + A record, a
communication + } or information submitted to a public body by a
business firm for purposes of ORS 285B.650 to 285B.728 that
{ - identify - } { + identifies + }
{ - a - } particular qualified property, that { - reveal - }
{ + reveals + } investment plans prior to
{ - precertification, - } { + authorization, that includes the
compensation the firm provides to its employees, + } that
{ - are - } { + is + } described in ORS 192.502 (16) or that
{ - are - } { + is + } submitted
{ - under ORS 285B.728 - } { + pursuant to section 29 or 31
of this 2001 Act + }
{ - are - } { + is + } exempt from disclosure under ORS
192.410 to 192.505 and, as appropriate, shall be shared among the
county assessor, the zone sponsor, the Department of Revenue and
the Economic and Community Development Department.
' { + SECTION 22. + } ORS 285B.704 is amended to read:
' 285B.704. { - (1) A business firm is qualified to receive a
property tax exemption under ORS 285B.698 for its qualified
property only if: - }
' { - (a) The firm is an eligible business firm described in
ORS 285B.707; - }
' { - (b) The firm has business operations located inside the
enterprise zone; - }
' { - (c) The firm owns or leases qualified property located
inside the enterprise zone; - }
' { - (d) The employment of the firm, no later than April 1
following the assessment year in which the investment in
qualified property was completed, is not less than 110 percent of
the average annual employment of the firm, calculated over the 12
months preceding the date of application for
precertification; - }
' { - (e) The firm hired at least one new employee to work
within the enterprise zone, under paragraph (d) of this
subsection, after precertification and no later than April 1
following the assessment year in which the investment in
qualified property was completed; - }
' { - (f) The firm satisfies the hiring requirements of ORS
285B.710 (1); - }
' { + (1) The qualified property of an authorized business
firm may be exempt from property tax under ORS 285B.698 only if
the firm meets the following qualifications:
' (a) The firm is an eligible business firm engaged in eligible
business operations under ORS 285B.707 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
application under ORS 285B.722 is filed 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 110 percent
of the annual average employment of the firm or the annual
average employment of the firm plus one employee; + }
' { - (g) - } { + (d) + } The firm { - did - } { +
does + } not diminish employment outside the enterprise zone
{ - under subsection (4) - } { + as required by subsections
(4) and (5) + } of this section;
' { - (h) - } { + (e) + } The firm { - did - } { +
does + } not substantially curtail
{ - employment - } { + operations + } within the enterprise
zone as described in
{ - ORS 285B.728 - } { + section 24 of this 2001
Act + }; { + and + }
' { - (i) - } { + (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
{ - precertification - } { + authorization + } and throughout
the period of exemption, as prescribed by rule { + . + } { - ;
and - }
' { - (j) The firm complies with all additional conditions for
precertification imposed by an enterprise zone sponsor under ORS
285B.671 (4). - }
' (2) { - (a) - } Notwithstanding subsection { - (1)(d),
(e) or (h) - } { + (1)(e) + } of this section, { - an
eligible business firm is a qualified business firm if it - }
{ + a firm that substantially curtails operations within the
enterprise zone may nevertheless meet the qualifications of this
section if the firm has satisfied the following requirements:
' (a) The firm obtained authorization under ORS 285B.719 and,
at the time authorization was obtained, the governing body of the
sponsor adopted a resolution that approved the exemption from
taxation of the qualified property of the firm and that specified
the minimum number of employees the firm must maintain throughout
the exemption period. The resolution may include additional
conditions determined by the sponsor with which the firm must
comply to meet the qualifications of this section. At the request
of the firm, the sponsor may modify the resolution prior to the
first tax year for which exemption is claimed under ORS 285B.698.
' (b) The firm + }completes an investment { - of $25 million
or more - } in qualified property { - , on or before December
31 preceding the first assessment year for which the exemption is
being sought, - } { + that, for the first tax year for which
exemption under ORS 285B.698 is claimed, equals $25 million or
more in qualified property, + } with less than a 10 percent
increase in employment of the firm but without { + a + } loss of
employment of the firm.
' { - (b) Approval to extend the property tax benefit to the
eligible business firm under this subsection shall be documented
by resolution of the governing body of the sponsor. The
resolution shall specify the minimum percentage increase in
employment that the eligible business firm must maintain to be a
qualified business firm throughout the exemption period. The
resolution may include other conditions for the firm to be a
qualified business firm. At the request of the eligible business
firm, the sponsor may modify the resolution prior to the initial
filing by the firm for the property tax exemption. A copy of the
resolution shall be attached to the final applications for
precertification and for the property tax exemption. - }
' { - (3)(a) Notwithstanding subsection (1)(d), (e) or (h) of
this section, with the approval of the sponsor of the enterprise
zone, an eligible business firm is a qualified business firm if
it completes an investment of $25 million or more in qualified
property, on or before December 31 preceding the first assessment
year for which the exemption is being sought, with a loss of
employment of the firm. - }
' { - (b) Approval to extend the property tax benefit to the
eligible business firm under this subsection shall be documented
by resolution of the governing body of the sponsor. The
resolution shall specify the minimum number of employees that the
firm must retain for the eligible business firm to be a qualified
business firm throughout the exemption period. The resolution may
include other conditions for the firm to be a qualified business
firm. At the request of the eligible business firm, the sponsor
may modify the resolution prior to the firm's initial filing for
the property tax exemption. A copy of the resolution shall be
attached to the firm's applications for precertification and for
the property tax exemption. - }
{ + ' (3) An authorized business firm that engages in
eligible operations under ORS 285B.707 (1) and ineligible
operations under ORS 285B.707 (2) meets the qualifications of
this section if the eligible operations of the firm under ORS
285B.707 (1) meet the qualifications of this section and the
employees working a majority of their time in eligible operations
within the enterprise zone meet the qualifications of this
section and ORS 285B.710. + }
' (4) { - Notwithstanding subsections (1) to (3) of this
section, - } A business firm { - is not qualified to receive a
property tax exemption - } { + 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 { - precertification - } { +
authorization + } and { - before the initial application for
the exemption - } { + on or before December 31 of the first tax
year for which qualified property of the firm in that zone would
otherwise be exempt under ORS 285B.698 + }.
' (5) An { - eligible - } { + 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
{ - precertification and before the initial application for the
exemption may qualify to receive a property tax exemption
only - } { + 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 following the
assessment year in which the investment in qualified property was
completed - } { + December 31 of the first tax year for which
qualified property of the firm is exempt under ORS 285B.698 + },
to not less than 110 percent of the { - average - } 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 { - precertification - } { + authorization + }.
' (6) 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. + } { - and - }
{ +
' (b) + } Except as provided in subsection (5) of this section,
' employment of the firm' means { + :
' (A) + } The number of employees working for the firm a
majority of their time in eligible operations at locations within
the enterprise zone { + ; or
' (B) In the case of a firm described in ORS 285B.707 (5)(b),
the number of employees working a majority of their time at the
facility in the enterprise zone for which authorization was
obtained + }.
' { + SECTION 23. + } ORS 285B.705 is amended to read:
' 285B.705. For purposes of ORS 285B.704 { - (1)(i) - } { +
(1)(f) + }, the Economic and Community Development Department
shall adopt rules that { - , notwithstanding ORS 311.205, - }
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 such noncompliance in terms of the
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.
' { + SECTION 24. + } { + For the purposes of ORS 285B.704
and 285B.728, operations of a business firm shall be considered
to be substantially curtailed when:
' (1) The number of employees within the enterprise zone at the
end of an assessment year is reduced by more than 85 percent from
the highest number of such employees at the end of any assessment
year for which the firm received an exemption under ORS 285B.698
or of the assessment year immediately prior to the year for which
the exemption was first allowed;
' (2) The number of employees within the enterprise zone at the
end of an assessment year has been reduced for a period longer
than one year by more than 50 percent from the highest number of
such employees at the end of any assessment year in which the
firm received an exemption under ORS 285B.698 or the assessment
year immediately prior to the year for which the exemption was
first allowed; or
' (3) The annual average number of employees within the
enterprise zone at the end of the first assessment year for which
the exemption under ORS 285B.698 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. + }
' { + SECTION 25. + } ORS 285B.710 is amended to read:
' 285B.710. (1) { + The qualified property of an authorized
business firm may be exempt from property tax under ORS 285B.698
only if the firm enters + } { - A precertified business firm
shall enter - } into a first-source hiring agreement { - with a
publicly funded job training provider - } 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 285B.698. + }
' { - (2) If a qualified business firm is located in an urban
enterprise zone inside a metropolitan statistical area with fewer
than 400,000 residents, all new employees hired by the firm must
meet all additional conditions imposed under ORS 285B.671
(4). - }
' { - (3) Notwithstanding ORS 285B.698 (3)(a), if a firm is
located in an urban enterprise zone situated inside a
metropolitan statistical area of less than 400,000 residents, the
sponsor may set a period of abatement of up to five consecutive
assessment years if the qualified business firm agrees with the
sponsor, in writing, at the time of precertification: - }
' { - (a) To annually compensate all new employees hired by
the firm at an average rate of not less than 150 percent of the
county's average annual wage until the end of the tax exemption
period. If the zone is in more than one county, the county with
the highest average annual wage shall be used; and - }
' { - (b) To meet any additional requirements that the zone
sponsor may reasonably request. - }
' { - (4) Notwithstanding ORS 285B.698 (3)(a), if an urban
enterprise zone is located inside a metropolitan statistical area
with more than 400,000 residents, the sponsor may set a longer
period of abatement that does not exceed five consecutive
assessment years if the qualified business firm agrees with the
sponsor, in writing at the time of precertification, to meet any
additional requirements that the zone sponsor may reasonably
request. - }
' { - (5) If a firm is located in an urban enterprise zone
situated inside a metropolitan statistical area of more than
400,000 residents, all new employees hired by the firm must meet
all additional conditions imposed under ORS 285B.671 (4). - }
' { - (6) Notwithstanding ORS 285B.698 (3)(a), if a firm is
located in a nonurban enterprise zone, the sponsor may set a
period of abatement up to five consecutive assessment years if
the qualified business firm agrees with the sponsor, in writing,
at the time of precertification: - }
' { - (a) To annually compensate all new employees hired by
the firm at an average rate of not less than 150 percent of the
county's average annual wage until the end of the tax exemption
period. If the zone is in more than one county, the county with
the highest average annual wage shall be used; and - }
' { - (b) To meet any additional requirements which the zone
sponsor may reasonably request. - }
' { - (7) As used in this section, 'new employees hired by the
firm' includes only those employees engaged for a majority of
their time in eligible operations. The term does not include
individuals employed in a job or position that: - }
' { - (a) Is filled for the first time after June 30 of the
first tax year of the exemption; - }
' { - (b) Existed prior to the submission of the relevant
application for precertification; or - }
' { - (c) Is performed primarily at locations outside the
enterprise zone. - }
' { + (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 285B.698, the zone sponsor shall
inform the county assessor that an agreement under this section
has not been executed.
' (b) A publicly funded job training provider having knowledge
of the date when qualified property of the firm is first placed
in service may also inform the county assessor that an agreement
under this section has not been executed.
' (3) In accordance with rules adopted by the Economic and
Community Development Department, the Director of the Economic
and Community Development Department may waive the requirements
of subsection (1) of this section for an authorized business
firm. The rules adopted by the department shall provide for a
waiver under this subsection when the director finds that:
' (a) The business firm is unable to employ persons referred
under the agreement; or
' (b) The waiver would further the goals and purposes of
applicable state policies. + }
'
{ + EXEMPTION CLAIM PROCEDURES + }
' { + SECTION 26. + } ORS 285B.722 is amended to read:
' 285B.722. (1) After January 1 and { - no later than - }
{ + on or before + } April 1 of the assessment year immediately
following completion of { + the + } construction { + , + }
{ - or - } { + addition, + } modification or
{ - the - } installation of qualified property, { - a
precertified - } { + an authorized + } business firm may apply
for the exemption allowed under ORS 285B.698. The application
shall be made on a form prescribed by the Department of Revenue
and shall be filed with the county assessor. If the property for
which exemption is sought is leased by the business firm, the
application shall be made by both the owner and the lessee of the
property.
' (2) An application filed under this section shall contain:
' (a) A statement that { - : - }
' { - (A) - } the business firm satisfies the requirements of
ORS 285B.704 as a qualified business firm { - ; - } and
' { - (B) The business firm - } has been
{ - precertified - } { + authorized + } by the enterprise zone
sponsor and the county assessor { - . - } { + under ORS
285B.719;
' (b) Information related to the employment of the firm, as of
the later of the date of application or April 1 of the assessment
year in which the application is filed, that is sufficient to
determine whether the firm has met the employment requirements in
ORS 285B.704; and + }
' { - (b) - } { + (c) + } Any other information required by
the Department of Revenue.
' (3) The business firm shall be prepared to verify the dates
on which its application for { - precertification - } { +
authorization + } was submitted and approved. 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 285B.698,
the assessor shall grant the exemption. Thereafter, for each
{ - assessment - } { + 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 ORS
285B.698.
' (b) Enter on the assessment and the tax roll, as a notation,
the amount of additional 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 ORS 285B.728, by adding the notation 'enterprise zone
exemption (potential additional tax). '
' (5) If the assessor denies an exemption applied for under
this section, the business firm may appeal the denial to the
Oregon Tax Court under ORS 305.404 to 305.560.
' (6) The assessor shall provide copies of each exemption
application filed under this section to the enterprise zone
sponsor and as directed by the Department of Revenue.
' (7) If an application required by subsection (1) of this
section relates to principal or secondary industrial property as
defined { - by - } { + in + } ORS 306.126 { + , + } and
{ + the application + } is filed with the Department of Revenue
within the time required by subsection (1) of this section, the
application shall be deemed timely filed with the assessor.
' { + (8)(a) Notwithstanding subsection (1) of this section,
an application may be filed under this section on or before June
1 of the assessment year for which the exemption is first sought
if the application 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 for which the application
is being filed.
' (b) An exemption may not be granted pursuant to an
application filed under this section if the application is not
accompanied by the late filing fee.
' (c) The value of the property used to determine the late
filing fee under this section is appealable in the same manner as
other determinations of value by the county assessor are
appealable.
' (d) Any filing fee collected under this section shall be
deposited to the county general fund.
' (9)(a) Notwithstanding subsection (1) of this section, an
application may be filed under this section on or before December
31 of the assessment year immediately following completion of the
construction, addition, modification or installation of qualified
property.
' (b) If an application 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 application was filed under this subsection and for
which the property otherwise qualifies for exemption under ORS
285B.650 to 285B.728.
' (10) Applications may be filed under this section as of the
dates prescribed in subsections (8) and (9) of this section,
regardless of any grounds for hardship under ORS 307.475. + }
' { + NOTE: + } Sections 27 and 28 were deleted by amendment.
Subsequent sections were not renumbered.
'
{ + COMPLIANCE VERIFICATION + }
' { + SECTION 29. + } { + (1) A business firm claiming an
exemption under ORS 285B.698 must file, on a verification form
prescribed by the Department of Revenue, all of the following
information:
' (a) Information about employees of the firm within the
enterprise zone that consists of:
' (A) The annual average number of employees during the
assessment year;
' (B) The total number of employees on December 31 of the
previous assessment year;
' (C) The annual average number of employees, averaged over the
12-month period preceding the date of application for
authorization;
' (D) The highest total number of employees at the end of any
assessment year during or immediately preceding the year for
which the firm received an exemption under ORS 285B.698; and
' (E) The average annual compensation of new employees hired by
the firm, if the firm is subject to annual compensation
requirements under section 18 (3) of this 2001 Act.
' (b) A statement describing changes in the ownership, lease,
location, disposition, operation, use or occupancy of the
qualified property of the firm or a statement confirming that
there have been no such changes since the form was filed for the
prior assessment year or since the authorization application
under ORS 285B.719 was filed, whichever occurred later.
' (c) Any information required by the zone sponsor under
section 17 or 18 of this 2001 Act.
' (2) The form shall be filed with the zone sponsor and the
county assessor after December 31 and on or before June 30 of the
tax year for which an exemption is allowed under ORS 285B.698.
Upon receiving the form, the sponsor shall send a copy of the
form to, or otherwise confirm that a copy has been received by,
the county assessor.
' (3) If a business firm claiming an exemption under ORS
285B.698 fails to file the form required under this section by
the due date, the assessor shall use the authority provided under
ORS 285B.728.
' (4) If the zone sponsor or county assessor has reason to
question the accuracy or veracity of any information contained in
a form required under this section, the sponsor or the assessor
may use the authority provided under ORS 285B.728.
' (5) If the information submitted by a business firm under
this section indicates that the firm is no longer in compliance
with applicable requirements, the information shall be considered
evidence for purposes of ORS 285B.728.
' (6) The county assessor shall make reasonable and timely
efforts to notify a business firm that is seeking or receiving an
exemption under ORS 285B.698 of the filing requirements under
this section, but the county assessor and the Department of
Revenue are under no further obligation to seek or receive
information about the continued entitlement of property to an
exemption under ORS 285B.698.
' (7)(a) Notwithstanding subsection (2) of this section, the
verification form required by this section may be filed after
June 30 of the tax year, if filed on or before December 31
following the tax year and 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 of the business firm, as
of the assessment date for the year for which the verification
form is being filed.
' (b) Any filing fee collected under this subsection shall be
deposited in the county general fund. + }
'
{ + DISQUALIFICATION FROM EXEMPTION + }
' { + SECTION 30. + } ORS 285B.728 is amended to read:
' 285B.728. (1) The county assessor of any county in which an
enterprise zone is situated { - and the - } { + or the
zone + } 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 { - but - }
{ + and + } in which one of the following events occurs:
' (a) Property granted exemption from taxation under ORS
{ - 285B.722 - } { + 285B.698 + } is sold, exchanged,
transported or otherwise disposed of for use outside the
enterprise zone or for use by an ineligible business firm;
' (b) { - A - } { + The + } qualified business firm closes
or
{ - substantially curtails the operation of the trade or
business in which property granted exemption from taxation under
ORS 285B.722 is used, except as allowed by the zone sponsor - }
{ + so reduces eligible operations that the reduction
constitutes a substantial curtailment of operations under section
24 of this 2001 Act, unless a substantial curtailment of
operations is permitted + } under ORS 285B.704 (2) { - or
(3) - } ;
' (c) { - A - } { + The + } qualified business firm fails
to meet any of the { - requirements of - } { + qualifications
required under + } ORS 285B.704
{ - (2)(b) or (3)(b) - } ;
' (d) { - A - } { + The + } qualified business firm fails
to meet any { - of the requirements of ORS 285B.710 (2), (3) or
(6) - } { + condition that the firm is required to satisfy
under section 17 of this 2001 Act or any term of an agreement
entered into with the sponsor under section 18 of this 2001 Act
with which the firm had agreed to comply + };
' (e) { - A - } { + The + }qualified business firm { +
+ } { - fails to meet any of the requirements of ORS 285B.710
(4) or (5) - } { + uses the property to conduct activities in
the enterprise zone that are not eligible activities + }; or
' (f) { - A qualified business firm or the applicable
activity or operation of the firm fails to meet any of the
requirements of ORS 285B.707 or 285B.713 (2)(f) or (g) after it
has received a property tax exemption for its qualified - }
Property { + of the qualified business firm for which exemption
under ORS 285B.698 is claimed ceases to be qualified property
under ORS 285B.713.
' (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 + }.
' { - (2)(a) - } { + (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 { - 285B.722 - }
{ + 285B.698 + } shall be assessed against the property for
each year for which the property had been granted exemption { +
under ORS 285B.698 + }.
' (b) Notwithstanding paragraph (a) of this subsection, if a
qualified business firm fails to meet any of the requirements
{ - in ORS 285B.710 (3), (4) or (6) - } { + of an agreement
entered into by the firm under section 18 of this 2001 Act + }
during the exemption, but meets { - the - } { + all other
applicable + } requirements { - of ORS 285B.698 - } { + under
ORS 285B.650 to 285B.728 + } 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 section 18 of this 2001 Act + } { - qualified
business firm is entitled to receive the property tax exemption
allowed under ORS 285B.698 (3) - } .
' (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.
' { - (3) For the purposes of ORS 285B.704 and this section,
operation of a business firm shall be considered to be
substantially curtailed when: - }
' { - (a) The number of employees within the enterprise zone
is reduced at the end of an assessment year by more than 85
percent from the highest number of such employees at the end of
any assessment year during which the business firm received a
property tax exemption under ORS 285B.698 or 285B.710; - }
' { - (b) The number of employees within the enterprise zone
at the end of an assessment year has been reduced for a period
longer than one year by more than 50 percent from the highest
number of such employees at the end of any assessment year during
which the firm was receiving a property tax exemption under ORS
285B.698 or 285B.710; or - }
' { - (c) The average annual number of employees within the
enterprise zone is reduced at the end of the first assessment
year of exemption and any subsequent qualifying years below 110
percent of the average annual number of employees at facilities
of the firm located within the enterprise zone on the date of
application for precertification. - }
' (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
{ - subsections (1) and (3) - } { + subsection (1) + } of this
section, the assessor shall:
' { + (a) Disqualify the property from exemption; + }
' { - (a) - } { + (b) + } Compute the amount of taxes
described in subsection { - (2) - } { + (3) + } of this
section as though notice had been given, and { - shall - } add
to that amount an additional penalty equal to 20 percent of the
total amount so computed; and
' { - (b) - } { + (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
{ - (2) - } { + (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 { - (2) - }
{ + (3) + } and (5) of this section, { - when - } { + if + }
an assessor and sponsor receive notice { + from a business
firm + } under subsection (1)(b), (c), (d) or (e) 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),
(d) or (e) of this section { - or for the second notice under
subsection (1)(b), (c), (d) or (e) of this section in the case of
the final year of an exemption lasting a total of five
consecutive years under ORS 285B.710 - } .
' (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
{ - under subsections (2) and (5) of - } { + and impose the
entire amount of additional taxes as prescribed under subsection
(3) of + } this section.
' { - (7) The assessor is at all times authorized to demand by
registered or certified mail reports from owners or lessees
concerning the use of the qualified property and the employment
status of the qualified business firm for purposes of this
section. If the owner or lessee fails after 60 days' notice in
writing by certified mail to comply with such demand, the
assessor may disqualify the exemption in accordance with
subsection (2) of this section, giving written notice of the
disqualification to the Department of Revenue and the owners or
lessees of the qualified property. - }
' { - (8) The assessor is under no obligation to verify
compliance by qualified business firms with requirements imposed
under ORS 285B.710 (2), (3)(b), (4), (5) or (6)(b). - }
' { - (9) The sponsor of an enterprise zone may initiate
procedures in order to verify compliance by qualified business
firms with requirements imposed under ORS 285B.692 to 285B.728.
The procedures may include written requests to the assessor by
the local zone manager or an executive official of the sponsoring
jurisdiction in which the qualified business firm is located that
the assessor exercise authority under subsection (7) of this
section for a particular qualified business firm. - }
' { - (10) - } { + (7) + } An assessor may not { - impose
the property taxes and penalties specified in subsection (4)
of - } { + 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 { + imposed by the zone
sponsor + } under { - ORS 285B.710 (2), (3)(b), (4), (5) or
(6)(b) - } { + section 17 or 18 of this 2001 Act + }, without
having received written communication from the zone sponsor that
demonstrates that the qualified business firm does not meet
{ - such - } { + these + } requirements.
' { - (11) - } { + (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 in writing of the disqualification. The assessor shall
provide copies of the disqualification to the zone sponsor, the
Department of Revenue and the Economic and Community Development
Department. The decision of the assessor to disqualify property
under this section may be appealed to the Oregon Tax Court under
ORS 305.404 to 305.560. + }
' { + SECTION 31. + } { + (1) The 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 285B.650 to 285B.728. If, after
60 days' notice in writing by registered or certified mail, the
owner or lessee fails to comply with such demand, the assessor
may disqualify the property under ORS 285B.728, 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 zone sponsor under section 17 or 18 of this 2001 Act.
' (3) The sponsor of an enterprise zone may initiate procedures
in order to verify compliance by qualified business firms with
requirements imposed under ORS 285B.650 to 285B.728. The
procedures may include written requests to the assessor by the
local zone manager or an executive official of the zone sponsor
in which the qualified business firm is located that the assessor
exercise authority under this section for a particular qualified
business firm. + }
'
{ + TERMINATION OF ENTERPRISE ZONE + }
' { + SECTION 32. + } ORS 285B.686 is amended to read:
' 285B.686. { - (1) Enterprise zones designated under ORS
284.110 to 284.260 (1987 Replacement Part) by order of the
Governor before October 3, 1989, are declared valid and shall
continue to exist until terminated under this section. - }
' { - (2) - } { + (1) + } When the termination of an
enterprise zone occurs under this section:
' (a) The termination of the enterprise zone { - shall - }
{ + does + } not affect { + :
' (A) + } The continuation of a qualified business firm's
property tax exemption { - for which the firm qualified - }
{ + 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 285B.698 if the authorization application of
the firm was filed with the zone sponsor before the effective
date of the termination of the zone, and:
' (i) The firm remains authorized at the time the exemption is
claimed;
' (ii) 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
' (iii) The property meets all other requirements for exemption
under ORS 285B.698. + }
' (b) { - Notwithstanding ORS 285B.698 (5)(e) and 285B.719
(6), - } A business firm that is currently { - precertified - }
{ + 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
{ - precertification - } { + authorization + } under ORS
285B.719 and subsequently { - for property tax exemptions under
ORS 285B.722 - } { + be granted exemption + } for any qualified
property that is { - located - } { + 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
{ - installment - } { + installation + } of qualified
property must commence prior to the end of { - an exemption of
the precertified or qualified business firm under ORS 285B.698 or
285B.710 - } { + the final tax year in which qualified property
of the firm is exempt under ORS 285B.698 + } and { + must + } be
completed { - in accordance with ORS 285B.719 (5)(b) and
(c) - } { + 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 285B.698 + }. { - The precertified or
qualified business firm must comply with the requirements under
ORS 285B.692 to 285B.728 in effect at the time of the termination
of the enterprise zone. - }
' (c) Disqualification under ORS 285B.728 of { - an entire
property tax exemption - } { + all exempt property of the
business firm + } after the { + effective + } date of the
termination of the enterprise zone shall prohibit and terminate
all { - precertifications and qualifying property tax
exemptions - } { + authorizations sought or obtained by the
business firm + } that would not otherwise be allowed except for
paragraph (b) of this subsection. { + Disqualification under ORS
285B.728 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 285B.698 of qualified property of the business firm made in a
subsequent tax year. + } { - Such termination shall not result
in repayment of property taxes exempted before the tax year in
which the disqualification takes effect. - }
' { - (3) - } { + (2) + } An enterprise zone previously
designated by order of the Governor or designated by the Director
of the Economic and Community Development Department under ORS
285B.653, 285B.677 or 285B.689 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 by order of the Governor or the
director.
' { - (4) - } { + (3) + } An enterprise zone shall terminate
prior to the time specified in subsection { - (3) - }
{ + (2) + } of this section only as provided in subsection
{ + (4) or + } (5) { - or (6) - } of this section.
' { - (5) - } { + (4) + } The governing body of the sponsor
may submit a resolution requesting termination of the enterprise
zone to the Economic and Community Development Department. The
sponsor shall provide copies of the resolution to the county
assessor and the Department of Revenue. After receipt of the
request, the director shall order termination of the enterprise
zone and shall specify the effective date of { - such - } { +
the + } termination.
' { - (6) - } { + (5) + } If a sponsor is unable or
unwilling to carry out its responsibilities under ORS 285B.671,
the director shall order termination of the enterprise zone and
shall specify the effective date of { - such - } { + 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 285B.680 (6),
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 { - have similar - } { + is of comparable + } value,
{ - as determined by the department, to precertified or
qualified business firms - } { + 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 285B.698 { - or 285B.710, - }
without causing termination under this section.
' { + SECTION 33. + } ORS 285B.689 is amended to read:
' 285B.689. (1) Within a reasonable period of time prior to the
termination of enterprise zones under ORS 285B.686 { - (3) - }
{ + (2) + }, the Director of the Economic and Community
Development Department shall competitively designate the same
number of enterprise zones effective immediately after
termination of the previous enterprise zones. The determination
by the director as to the areas designated as enterprise zones
shall be final.
' (2) When an enterprise zone is terminated under ORS
285B.686 { + (4) or + } (5) { - or (6) - } , the director may
competitively designate a new enterprise zone. The sponsor of the
enterprise zone terminated under ORS 285B.686 { + (4) or + } (5)
{ - or (6) - } 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.
' (3) Sponsors of existing enterprise zones are eligible to
reapply for designation under subsection (1) of this section.
' (4) Any city or county may apply to the director for
designation of an enterprise zone in accordance with the criteria
set forth in ORS 285B.656 and 285B.662. In addition, the Economic
and Community Development Department by rule shall determine the
minimum level of economic hardship in any area to be included
within an enterprise zone, any other criteria necessary to
evaluate the need for the enterprise zone and the potential for
accomplishing the purposes of ORS 285B.650 to 285B.728.
' (5) All enterprise zones designated under this section shall
terminate in accordance with ORS 285B.686 { - (3) - } { +
(2) + }.
' (6) When the director designates enterprise zones under this
section, there is no limit on the relative number of urban or
nonurban 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.
'
{ + SUNSET DATE + }
' { + SECTION 34. + } { + Notwithstanding any other
provision of ORS 285B.650 to 285B.728:
' (1) An area may not be designated an enterprise zone after
June 30, 2009; and
' (2) A business firm may not obtain authorization under ORS
285B.719 after June 30, 2009. + }
'
{ + MISCELLANEOUS + }
' { + SECTION 35. + } ORS 285B.731 is amended to read:
' 285B.731. ORS 285B.650 to 285B.728 shall be known and may be
cited as the Oregon Enterprise Zone Act { - of 1989 - } .
' { + SECTION 36. + } ORS 311.370 is amended to read:
' 311.370. (1)(a) For all taxes, penalties and other charges
collected by the tax collector under, including, but not limited
to, ORS 92.095, 100.110, { + 285B.728, + } 308.260, 308.865,
308A.119, 308A.324, 308A.700 to 308A.733, 311.165, 311.415,
311.465, 354.690, 358.525 and 454.225, the tax collector shall
issue receipts similar in form to the receipts issued on payment
of taxes regularly charged on the tax roll.
' (b) The assessor shall enter all assessments of property to
which paragraph (a) of this subsection applies in the assessment
roll and shall make proper entries showing the extension of the
taxes in the usual manner and as though no payment to the tax
collector had been made.
' (2) Upon receipt thereof, the tax collector shall deposit
with the county treasurer all money collected by the tax
collector under subsection (1) of this section. The county
treasurer shall issue to the tax collector duplicate receipts for
the money and shall hold it in a special account in the name of
the tax collector.
' (3) Upon delivery of the assessment roll pursuant to ORS
311.115, the tax collector shall post the payments evidenced by
the receipts, and the amount of any underpayment or overpayment.
The tax collector shall then make a statement to the county
treasurer which shall specify the amount to be retained in the
special account to make the refunds required under subsection
(4)(b) of this section. The tax collector shall dispose of the
balance in the special account in the same manner as other tax
payments.
' (4) Any sum collected by the tax collector which is in excess
of the amount extended on the tax roll as provided in subsection
(1)(b) of this section shall be disposed of by the tax collector
as follows:
' (a) Any excess under $5 shall be paid to the districts in
which the taxed property is located in the same manner as
interest on taxes is paid to such districts.
' (b) Any excess of $5 or over shall be refunded to the
taxpayer by the county treasurer upon receiving instructions for
doing so from the tax collector. If an amount remains that cannot
be refunded by June 30 of the next calendar year, the tax
collector shall instruct the treasurer to distribute the moneys
to the taxing districts in the same manner as the excesses are
distributed under paragraph (a) of this subsection.
' (5) If a sum less than the tax charged on the tax roll has
been collected, the deficiency shall be canceled by the tax
collector if such sum is $5 or less, and the tax collector shall
note upon the tax roll opposite the appropriate account, 'Tax
deficiency canceled pursuant to ORS 311.370.' Otherwise, the
deficiency shall be collected as provided by law.
' (6) If an appeal which is perfected under ORS 311.467 for
taxes collected under ORS 311.465 results in a refund under ORS
311.806, the reimbursement for the refund to the unsegregated tax
collections account shall be made from the account provided for
in subsection (2) of this section.
' { + SECTION 37. + } { + Sections 12, 17, 18, 24, 29, 31
and 34 of this 2001 Act and ORS 285B.705 are added to and made a
part of ORS 285B.650 to 285B.728. + }
' { + SECTION 38. + } Section 3c, chapter 1104, Oregon Laws
1999, is amended to read:
' { + Sec. 3c. + } (1) If an eligible business firm completes
an investment of $25 million or more in the enterprise zone in
qualified property confined entirely within an established
operating division of the firm that would be an eligible business
firm if it were separately incorporated, the firm may elect to
have the division treated as a separate eligible business firm
for purposes of applicable requirements under ORS
{ - 285B.692 - } { + 285B.650 + } to 285B.728. The election
described in this subsection may only be made with respect to an
application for the exemption of qualified property under ORS
285B.722 { + (1999 Edition) + } that was filed on or before
January 1, 1999.
' (2) For purposes of ORS 285B.704 (2) or (3) { + (1999
Edition) + }, if the eligible business firm makes a total
investment in the enterprise zone of $50 million or more in
qualified property that initially qualifies for not more than
three consecutive years, the governing body of the sponsor may
also provide for one or more of the following as documented in
the resolution under ORS 285B.704 { + (1999 Edition) + }:
' (a) That, notwithstanding ORS 285B.701 (3) or 285B.719 (1)
{ + (both 1999 Edition) + }, this subsection and the
application for precertification { + or authorization + }
includes qualified property in the zone, for which construction,
{ + addition, + } modification or installation commenced prior
to the application, if the firm is precertified { + or
authorized + } prior to use or occupancy of the qualified
property;
' (b) That the exemption shall be granted without regard to the
cost of any portion of the investment that initially qualifies in
any single year; or
' (c) That the firm is not bound by any election under
subsection (1) of this section or ORS 285B.707 (5) { + (1999
Edition) + } in effect at the time at which the zone terminated,
in the case of a precertification { + or authorization + } and
exemption that is otherwise allowed under ORS 285B.686 (2) { +
(1999 Edition) + }.
' { + SECTION 39. + } { + (1) The amendments to ORS 285B.695
by section 14 of this 2001 Act apply to tax years beginning on or
after July 1, 2003.
' (2) Except as provided in subsection (1) of this section, the
new provisions of law and amendments to existing law made in
sections 1 to 38 of this 2001 Act apply to applications for
authorization made on or after the effective date of this 2001
Act and to tax years beginning on or after July 1, 2002. + }
' { + SECTION 40. + } { + A business firm that is a
precertified business firm under ORS 285B.650 to 285B.728 (1999
Edition) shall constitute an authorized business firm under ORS
285B.650 to 285B.728. An application for precertification under
ORS 285B.719 (1999 Edition) that has not been approved as of the
effective date of this 2001 Act shall constitute an application
for authorization under ORS 285B.719. + }
' { + SECTION 41. + } Section 4, chapter 1104, Oregon Laws
1999, is amended to read:
' { + Sec. 4. + } Notwithstanding ORS 285B.686
{ - (2)(b) - } { + (1)(b) + },
{ - sections 2 and - } { + section + } 3c { + , chapter 1104,
Oregon Laws 1999, + } { - of this 1999 Act - } and the
amendments to ORS 285B.701 and 285B.704 by sections 3 and
3a { + , chapter 1104, Oregon Laws 1999, + } { - of this 1999
Act - } are effective for any exemption granted under ORS
285B.650 to 285B.728.
' { + SECTION 42. + } { + The unit captions used in this
2001 Act are provided only for the convenience of the reader and
do not become part of the statutory law of this state or express
any legislative intent in the enactment of this 2001 Act. + }
' { + SECTION 43. + } { + ORS 285B.716, 285B.723 and
285B.725 and section 22, chapter 1015, Oregon Laws 1989, sections
31, 32, 33 and 44, chapter 835, Oregon Laws 1997, section 5,
chapter 460, Oregon Laws 1999, and sections 20 and 26, chapter
1104, Oregon Laws 1999, are repealed. + }
' { + SECTION 44. + } { + (1) The repeal of ORS 285B.716 by
section 43 of this 2001 Act does not affect the property tax
exemption of qualified property of a business firm operating a
hotel, motel or destination resort in an enterprise zone if the
firm obtained precertification in compliance with ORS 285B.716
(1999 Edition).
' (2) The repeal of section 44, chapter 835, Oregon Laws 1997,
by section 43 of this 2001 Act does not affect the property tax
exemption of qualified property of a business firm that is exempt
pursuant to an application for exemption filed before the
effective date of this 2001 Act. + } ' .
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