71st OREGON LEGISLATIVE ASSEMBLY--2001 Regular Session
NOTE: Matter within { + braces and plus signs + } in an
amended section is new. Matter within { - braces and minus
signs - } is existing law to be omitted. New sections are within
{ + braces and plus signs + } .
LC 764
House Bill 2131
Ordered printed by the Speaker pursuant to House Rule 12.00A (5).
Presession filed (at the request of Governor John A. Kitzhaber,
M.D., for Economic and Community Development Department)
SUMMARY
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.
Revamps enterprise zone property tax exemption laws.
Applies to property tax years beginning on or after July 1,
2002.
A BILL FOR AN ACT
Relating to enterprise zones; creating new provisions; amending
ORS 285B.650, 285B.653, 285B.656, 285B.662, 285B.668, 285B.671,
285B.674, 285B.677, 285B.680, 285B.683, 285B.686, 285B.689,
285B.692, 285B.695, 285B.698, 285B.701, 285B.704, 285B.705,
285B.707, 285B.710, 285B.713, 285B.719, 285B.728, 285B.731,
308.250, 308.290 and 311.370 and section 4, chapter 460, Oregon
Laws 1999, and sections 3c and 4, chapter 1104, Oregon Laws
1999; and repealing ORS 285B.716, 285B.722, 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.
Be It Enacted by the People of the State of Oregon:
{ +
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.
{ - (6) - } { + (9) + } 'Modification' means modernization,
renovation or remodeling of an existing building or structure.
{ + (10) '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) - } { + (11) + } '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) - } { + (12) + } '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, Job
Training Partnership Act service provider or similar program + }.
{ - (10) - } { + (13) + } '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) - } { + (14) + } 'Qualified property' means
property described under ORS 285B.713.
{ + (15) '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) - } { + (16) + } '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) - } { + (17) + } '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 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.
(3) Except as provided in subsection (4) of this section,
unconnected areas of an enterprise zone:
(a) Must have 12 miles or less as the greatest distance between
any two points within a zone; and
(b) May not be more than five miles apart.
(4) Unconnected areas of a nonurban enterprise zone:
(a) May not be more than 15 miles apart when an unconnected
area is entirely within a sparsely populated county;
(b) 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
(c) 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 - } { + 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 publicly funded job training provider of the
conditions or policies adopted by the sponsor under section 17 of
this 2001 Act and take the actions necessary to implement and
enforce these conditions or 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 { + 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 - } { + 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)(c). 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, 26, 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 - } { + authorization + } under
ORS 285B.719 { - or 285B.722 - } .
(5) Submit a written report to the Economic and Community
Development Department on or before { - January 15 in - } { +
September 15 of + } 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.
{ + (6) Design real, personal and combined property tax
return forms to accommodate the listing of qualified property
required under ORS 308.290. + }
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 - } { + Exempt qualified
property of + }
{ - precertified - } { + authorized + } business firms
{ - for - } { + from ad valorem + } property tax
{ - exemptions under ORS 285B.722 - } .
(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 assessed value of qualified property that was
reportable on the return filed under ORS 308.290 for the previous
tax year.
(b) The number of new employees hired by the firm during the
previous assessment year and employed by the firm within the
enterprise zone.
(c) The average annual compensation for the previous assessment
year of employees of the firm that are employed by the business
firm within the enterprise zone.
(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 return filed under ORS
308.290 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. + }
{ +
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 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 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. { - 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,
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 lesser 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 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, 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) Upon receipt of an application, the zone sponsor
shall immediately forward a copy of the application to the county
assessor of each county in which the zone is located.
(4) 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, at the
option of the assessor, may 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. + }
{ - (3) - } { + (5) + } If the sponsor and county assessor
determine that the business firm is 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 or is reasonably
expected to meet the requirements and applicable additional
conditions described in 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 in approving the application must 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 business
firm will be qualified for 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 qualify + } 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, 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, the Department of
Revenue may, for purposes of ORS 285B.650 to 285B.728, consider
the firm to 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 Department of Revenue or 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 the assessment date, + } 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, modified or installed after
termination of an enterprise zone.
{ + (f) An exemption may not be granted for qualified
property of a business firm that is first placed in service, as
of the assessment date, more than three years after the tax year
in which any qualified property of the business firm is first
exempt under this section.
(g) An exemption may not be granted for qualified property of a
business firm that is first placed in service, as of the
assessment date, after the first tax year in which any qualified
property of the business firm is first exempt under this section
if there has been an intervening tax year in which no new
qualified property of the business firm is exempt under this
section. + }
{ - (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 { + or personal
property + }, whether new, used or reconditioned, that is newly
purchased { - , - } { + or + }leased { + by an authorized
business firm, + }or 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, leased or 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 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, 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;
(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; and
(e) The total real market value of all of the property is at
least $50,000.
(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 less 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 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.
(5) Except as provided in subsection (2)(d) of this section,
property need not correspond with the description of property set
forth in the application for authorization filed under ORS
285B.719 in order to be qualified property under this
section. + }
{ - (3) - } { + (6) + } 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. + }
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 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 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
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 continues to constitute 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; + }
{ - (g) - } { + (c) + } The firm did not diminish
employment outside the enterprise zone under subsection (4) of
this section { + , unless the diminishment is allowable under
subsection (5) of this section or pursuant to rules of the
Economic and Community Development Department that permit certain
diminishment in employment in order to minimize job losses to the
state as a whole + };
{ - (h) - } { + (d) + } 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) - } { + (e) + } 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)(d) + } 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:
(A) $5 million or more, + } with less than a 10 percent
increase in employment of the firm but without { + a + } loss of
employment of the firm { - . - } { + ; or + }
{ - (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. - }
{ + (B) $25 million or more in qualified property, with a
loss of employment of the firm.
(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 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 and 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)(e) + }, 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 ORS
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 during which the firm received an exemption under ORS
285B.698;
(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 during which the
firm received an exemption under ORS 285B.698; or
(3) The average annual number of employees within the
enterprise zone at the end of the first assessment year in which
the exemption under ORS 285B.698 is granted, or any subsequent
year during which an exemption is claimed, is reduced below the
greater of:
(a) The number of employees of the business firm within the
enterprise zone on the date of the application for authorization
plus one employee; or
(b) 110 percent of the average annual number of employees at
facilities of the firm located within the enterprise zone,
averaged over the 12 months preceding the date of 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 the assessment date for the first tax
year for which qualified property is exempt 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) If a firm meets the requirement of subsection (1) of this
section as of the assessment date for the first tax year for
which qualified property of the firm is exempt under ORS
285B.698, the exemption that a qualified business firm receives
may not be disqualified retroactively or disqualified in a
subsequent tax year for failure to meet the requirements of
subsection (1) of this section.
(4) 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. + }
SECTION 26. { + (1) An authorized business firm that is
claiming the exemption under ORS 285B.698 for qualified property
and that seeks to construct, modify or install additional
qualified property at the site of the exempt qualified property,
or at an adjacent or proximal site in the zone, may do so without
seeking additional authorization if the investment in additional
qualified property is made within three years following the first
assessment year for which any qualified property of the firm is
exempt under ORS 285B.698. The additional qualified property
shall be exempt as of the first tax year for which the additional
qualified property is in service as of the assessment date, if
the property otherwise qualifies for exemption under ORS
285B.698. The duration of the exemption shall be as otherwise
provided in ORS 285B.650 to 285B.728.
(2) An authorized business firm that is claiming the exemption
under ORS 285B.698 for qualified property and that seeks to
construct, modify or install additional qualified property in a
different enterprise zone or at a site in the same enterprise
zone that is different from the site of the exempt qualified
property, or an adjacent or proximal site in the zone, must
obtain authorization for the proposed investment under ORS
285B.719 prior to the construction, modification or installation
of the property. + }
{ +
EXEMPTION CLAIM PROCEDURES + }
SECTION 27. ORS 308.290 is amended to read:
308.290. (1)(a) Every person and the managing agent or officer
of any firm, corporation or association owning { - , - } or
having in possession or under control taxable personal property
shall make a return of the property for ad valorem tax purposes
to the assessor of the county in which such property has its
situs for taxation; however, as between a mortgagor and mortgagee
or a lessor and lessee, the actual owner and the person in
possession may agree between them as to who shall make the return
and pay the tax, and the election shall be followed by the person
in possession of the roll who has notice of the election. Upon
the failure of either party to file a personal property tax
return on or before March 1 of any year, both parties shall be
jointly and severally subject to the provisions of ORS 308.296.
(b) Every person and the managing agent or officer of any firm,
corporation or association owning or in possession of taxable
real property shall make a return of the property for ad valorem
tax purposes when so requested by the assessor of the county in
which such property is situated.
{ + (c) Every authorized business firm owning or having in
possession or under control qualified property shall make a
return of qualified property for ad valorem property tax purposes
or, if otherwise required to file a return under this section,
shall list qualified property separately. + }
(2)(a) Each return of personal property shall contain a full
listing of such property and a statement of its real market
value, including a separate listing of those items claimed to be
exempt as imports or exports. Each statement shall contain a
listing of the additions or retirements made since the prior
January 1, indicating the book cost and the date of acquisition
or retirement. Each return shall contain the name, assumed
business name, if any, and address of the owner of the personal
property and if it is a partnership, the name and address of each
general partner or if it is a corporation, the name and address
of its registered agent.
(b) Each return of real property shall contain a full listing
of the several items or parts of such property specified by the
assessor and a statement exhibiting their real market value. Each
return shall contain a listing of the additions and retirements
made during the year indicating the book cost, book value of the
additions and retirements or the appraised real market value of
retirements as specified in the return by the assessor.
{ + (c) Each return containing a listing of qualified
property shall contain a full listing of the qualified property
and a statement of the real market value of the qualified
property. Each statement shall contain a list of the additions or
retirements of qualified property made since the prior January 1,
indicating the book cost and the date of acquisition. Each return
shall contain the name and address of the authorized business
firm. + }
{ - (c) - } { + (d) + } There shall be annexed to each
return the affidavit or affirmation of the person making the
return that the statements contained in the return are true. All
returns shall be in such form as the assessor, with the approval
of the Department of Revenue, may prescribe. Prior to December 31
preceding the assessment year, the department or assessor shall
cause blank forms for the returns to be prepared and distributed
by mail, but failure to receive or secure the form shall not
relieve the person, managing agent or officer from the obligation
of making any return required by this section.
(3) All returns shall be filed on or before March 1 of each
year, but the assessor, upon written request filed with the
assessor prior to that date and for good cause shown in the
request, shall allow for an extension of time within which to
file the return to April 15. The department shall adopt rules for
the granting of extensions under this subsection.
(4)(a) In lieu of the returns required under subsection (1)
{ - (a) or (b) - } of this section, every person and the
managing agent or officer of any firm, corporation or association
owning or having in possession or under control taxable real and
personal property { + , or qualified real or personal
property, + } that is either principal or secondary industrial
property as defined by ORS 306.126 (1) and is appraised by the
department shall file a combined return of the real and personal
property with the department. { + Qualified property that is
reported on a combined return shall be listed separately from all
other property reported on the return. + }
(b) The contents and form of the return shall be as prescribed
by rule of the department. Any form shall comply with ORS
308.297. Notwithstanding ORS 308.875, a manufactured structure
that is a part of an industrial property shall be included in a
combined return. { + A return of qualified property shall
contain the information set forth in subsection (2)(c) of this
section in addition to any other information required by the
department. + }
(c) In order that the assessor may comply with ORS 308.295, the
department shall provide a list to the assessor of all combined
returns required to be filed with the department under this
subsection but were not filed on or before the due date or within
the time allowed by an extension.
(d) If the department has delegated appraisal of the property
to the assessor under ORS 306.126 (3), the department shall
notify the person otherwise required to file the combined return
under this subsection as soon as practicable after the delegation
that the combined return is required to be filed with the county
assessor.
(e) Notwithstanding subsection (1) or (3) of this section, a
combined return of real and personal property that is industrial
property appraised by the department shall be filed with the
department on or before March 1 of the year.
(5)(a) Any person required to file a return under subsection
(4) of this section may apply to the Department of Revenue for an
extension of the time within which to file the return to April
15. An extension granted under this subsection shall continue in
effect for each subsequent year unless canceled by the person or
revoked by the department. An extension granted under this
subsection shall apply to returns required to be filed with
either the county assessor or the department. The department
shall provide for notification of county assessors of the
granting of extensions under this subsection.
(b) The Department of Revenue shall, by rule, establish
procedures and criteria for the granting of extensions provided
for under paragraph (a) of this subsection. The department shall
adopt such rules after consultation with an advisory committee
selected by the department that represents the interests of
county assessors and affected taxpayers.
(6) No return shall be controlling on the assessor or on the
Department of Revenue in any respect in the assessment of any
property. On any failure to file the required return, the
property shall be listed and evaluated from the best information
obtainable from other sources.
(7) All returns filed under the provisions of this section and
ORS 308.525 and 308.810 shall be confidential records of the
office in which such returns are filed; except that all such
returns shall be available to the Department of Revenue or its
representative, to the representatives of the Secretary of State
or to an accountant engaged by a county under ORS 297.405 to
297.555 for the purpose of auditing the county's personal
property tax assessment roll (including adjustments to returns
made by the Department of Revenue), to the county tax collector
or the tax collector's representative for the purpose of
collecting delinquent personal property taxes, to any reviewing
authority as to those returns relating to appeals by taxpayers,
to the Adult and Family Services Division of the Department of
Human Services, to the Division of Child Support of the
Department of Justice and district attorney regarding cases for
which they are providing support enforcement services under ORS
25.080 { - and - } { + , + } to the Legislative Revenue
Officer or authorized representatives for the purpose of
preparation of reports, estimates and analyses required by ORS
173.800 to 173.850 { + and, in the case of returns filed by
authorized business firms, to the Economic and Community
Development Department for the purposes of ORS 285B.650 to
285B.728 + }. The Department of Revenue may exchange property tax
information with the authorized agents of the federal government
and the several states on a reciprocal basis.
(8) If the assessed value of any personal property in
possession of a lessee is less than $10,000, the person in
possession of the roll may disregard an election made under
subsection (1) of this section and assess the owner or lessor of
the property.
{ + (9) As used in this section, 'authorized business firm'
and ' qualified property' have the meanings given those terms in
ORS 285B.650. + }
SECTION 28. ORS 308.250 is amended to read:
308.250. (1) All personal property not exempt from ad valorem
taxation or subject to special assessment shall be valued at 100
percent of its real market value, as of January 1, at 1:00 a.m.
and shall be assessed at its assessed value determined as
provided in ORS 308.146.
(2) If the total assessed value of all taxable personal
property required to be reported under ORS 308.290 in any county
of any taxpayer is less than $10,000 in any assessment year, the
county assessor shall cancel the ad valorem tax assessment for
that year.
(3) { + (a) + } In any assessment year or years following an
assessment year for which taxes are canceled under subsection (2)
of this section, the taxpayer may meet the requirements of ORS
308.290 by filing, within the time required under ORS 308.290, a
verified statement with the county assessor indicating that the
total assessed value of all taxable personal property of the
taxpayer required to be reported under ORS 308.290 in the county
is less than $10,000. The statement shall contain the name and
address of the taxpayer, the information needed to identify the
account and other pertinent information, but shall not be
required to contain a listing or value of property or property
additions or retirements.
{ + (b) This subsection does not apply to a taxpayer that is
an authorized business firm for purposes of ORS 285B.650 to
285B.728 and owns qualified property that is exempt from property
tax under ORS 285B.698 and located in the county for which a
return under ORS 308.290 is to be filed. + }
{ +
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) The number of new employees hired by the firm and the
annual compensation of these employees. For purposes of this
paragraph, an employee is a new employee if the employee was
hired:
(A) After the date the firm obtained authorization under ORS
285B.719, if this is the first form filed by the firm following
that authorization; or
(B) During the assessment year for which the exemption is being
claimed, if this is a form that is being filed after the filing
of the first form under this section.
(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 after
December 31 and on or before June 30 of the tax year for which an
exemption is claimed under ORS 285B.698. Upon receiving the form,
the sponsor shall send a copy of the form to 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) The Department of Revenue may provide by rule for
reasonable late fees or penalties that the county assessor or
zone sponsor may impose to compel timely filing of the form
required under this section. + }
{ +
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 - } { + tax + } 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) The qualified business firm is permitted to
substantially curtail operations under ORS 285B.704 (2) and does
substantially curtail operations but fails to make the minimum
investment required under ORS 285B.704 (2); + }
{ - (c) - } { + (d) + } { - 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) - } { + (e) + } { - 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) - } { + (f) + } { - A - } { + The + }qualified
business firm { - fails to meet any of the requirements of ORS
285B.710 (4) or (5) - } { + ceases to conduct eligible
activities in the enterprise zone + }; or
{ - (f) - } { + (g) + } { - 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.
(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 ORS 285B.710 + }
{ - 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 approved by the zone sponsor and county assessor
before the effective date of the termination of the zone, or an
appeal of an initial denial of authorization was filed before the
effective date of the termination of the zone and the outcome of
the appeal was the authorization of the firm, 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 inside the former enterprise zone
boundaries at the time of termination and entirely outside of the
boundaries of any current enterprise zone. Construction,
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, 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, 26, 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,
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. 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 41. { + 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 42. { + ORS 285B.716, 285B.722, 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 43. { + (1) The repeal of ORS 285B.716 by section 42
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 42 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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