71st OREGON LEGISLATIVE ASSEMBLY--2001 Regular Session
SA to SB 229
LC 1988/SB 229-1
SENATE AMENDMENTS TO
SENATE BILL 229
By COMMITTEE ON INFORMATION MANAGEMENT AND TECHNOLOGY
March 26
On page 1 of the printed bill, line 2, after 'ORS' insert '
285B.650, 285B.707, 285B.713,'.
Delete lines 4 through 30 and delete pages 2 through 7 and
insert:
' { + 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) '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) + } { + ' Electronic commerce' means engaging in
commercial or retail transactions predominantly over the Internet
or a computer network, utilizing the Internet as a platform for
transacting business or facilitating the use of the Internet by
other persons for business transactions, and may be further
defined by the Economic and Community Development Department by
rule. + }
' { - (2) - } { + (3) + } '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) - } { + (4) + } 'Employee' means a person who
works more than 32 hours per week, but does not include persons
with temporary or seasonal jobs or persons hired solely to
construct qualified property.
' { - (4) - } { + (5) + } '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 designated under ORS 285B.677 and areas
designated under ORS 285B.689.
' { - (5) - } { + (6) + } 'First-source hiring agreement'
means an agreement between a precertified 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) - } { + (7) + } 'Modification' means
modernization, renovation or remodeling of an existing building
or structure.
' { - (7) - } { + (8) + } 'Nonurban enterprise zone' means
an enterprise zone located outside a regional or metropolitan
urban growth boundary.
' { - (8) - } { + (9) + } '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) - } { + (10) + } 'Publicly funded job training
provider' includes but is not limited to, community colleges, Job
Training Partnership Act service providers, and other similar
programs.
' { - (10) - } { + (11) + } '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.
' { - (11) - } { + (12) + } 'Qualified property' means
property described under ORS 285B.713.
' { - (12) - } { + (13) + } 'Sponsor' means the city or
county that applied for and received approval of 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) - } { + (14) + } '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.
' { + SECTION 2. + } { + (1) A sponsor of an existing
enterprise zone may seek to have the zone designated for
electronic commerce under this section.
' (2) The sponsor shall file an application to have the zone
designated for electronic commerce with the Economic and
Community Development Department. The application shall be in the
form and contain the information that the department by rule may
require.
' (3) The application shall be accompanied by a copy of a
resolution, adopted by the governing body of the sponsor,
requesting that the zone be designated for electronic commerce.
' (4) The department shall review applications for electronic
commerce designation and shall approve no more than five zones
for electronic commerce designation. In approving zones for
electronic commerce designation, the department shall strive to
approve zones for electronic commerce designation in different
geographic areas of this state. + }
' { + SECTION 3. + } 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) Businesses significantly engaged in business activities
within the enterprise zone such as 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.
' (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) 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) 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) Notwithstanding subsection (1) or (2) of this section, a
business firm engaged in the activity of providing a retail or
financial service is an eligible business firm if:
' (a) The activity serves customers by responding to orders or
requests received only by telephone, computer, the Internet or
similar means of telecommunications; and
' (b) Not less than 90 percent of the customers or orders are
located and originate in an area from which long distance
telephone charges, in the absence of a toll-free number, would
apply if the order were placed by telephone.
' (7) Notwithstanding subsection (1) or (2) of this section, a
business firm that makes an investment in qualified property at a
facility 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 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.
' { + (8) Notwithstanding subsection (1) or (2) of this
section, a business firm that is engaged in electronic commerce
is an eligible business firm if the enterprise zone has been
approved for electronic commerce designation under section 2 of
this 2001 Act. + }
' { + SECTION 4. + } 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) The following kinds of property are qualified for the
exemption allowed under ORS 285B.698:
' (a) A new building or structure with a cost of $25,000 or
more.
' (b) An addition to or modification of an existing building or
structure. The total cost of qualifying additions or
modifications to an existing building or structure shall be at
least $25,000 in one assessment year. In order to satisfy the
minimum investment requirement, the cost of two or more additions
or modifications made in one assessment year to a single building
or structure may be aggregated.
' (c) Any real property machinery or equipment, whether new,
used or reconditioned, that is newly purchased, 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.
' (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 is used in
electronic commerce in a zone approved for electronic commerce
designation under section 2 of this 2001 Act + }; 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).
' { + (h) Any property otherwise described in this section
that is owned or leased and operated by a business firm that is
engaged in electronic commerce, if the enterprise zone in which
the property is located is a zone approved for electronic
commerce designation under section 2 of this 2001 Act. + }
' (3) The following property is not qualified for exemption
under ORS 285B.698:
' (a) Land.
' (b) Self-propelled motorized vehicles.
' (c) Property excluded under ORS 285B.698 (5).
' { + SECTION 5. + } { + Qualified property owned or leased
and operated by a qualified business firm engaged in electronic
commerce may not receive an exemption under ORS 285B.698 unless
the electronic commerce operations of the firm are located in an
enterprise zone that has been approved for electronic commerce
designation under section 2 of this 2001 Act. + }
' { + SECTION 6. + } { + Sections 2 and 5 of this 2001 Act
are added to and made a part of ORS 285B.650 to 285B.728. + }
' { + SECTION 7. + } { + Section 8 of this 2001 Act is added
to and made a part of ORS chapter 315. + }
' { + SECTION 8. + } { + (1) A credit against the taxes that
are otherwise due under ORS chapter 316 or, if the taxpayer is a
corporation, under ORS chapter 317 or 318, shall be allowed to a
taxpayer that is a qualified business firm engaged in electronic
commerce in an enterprise zone that has been approved for
electronic commerce designation under section 2 of this 2001 Act.
' (2) The credit shall equal 25 percent of the investments made
by the business firm during the tax year in electronic commerce
operations within the zone that are related to electronic
commerce sales, customer service, order fulfillment or broadband
infrastructure.
' (3) A credit under this section may not be allowed for an
income tax year beginning in a property tax year in which
qualified property of the business firm is subject to property
tax.
' (4) A credit allowed under this section may not exceed the
tax liability of the taxpayer.
' (5) Any tax credit otherwise allowable under this section
that is not used by the taxpayer in a particular year may be
carried forward and offset against the taxpayer's tax liability
for the next succeeding tax year. Any credit remaining unused in
the next succeeding tax year may be carried forward and used in
the second succeeding tax year, and likewise any credit not used
in that second succeeding tax year may be carried forward and
used in the third succeeding tax year, and any credit not used in
that third succeeding tax year may be carried forward and used in
the fourth succeeding tax year, and any credit not used in that
fourth succeeding tax year may be carried forward and used in the
fifth succeeding tax year, but may not be carried forward for any
tax year thereafter.
' (6) As used in this section, 'business firm,' 'electronic
commerce,' 'qualified business firm' and 'qualified property'
have the meanings given those terms in ORS 285B.650. + } ' .
On page 8, delete lines 1 through 13.
In line 14, delete '18' and insert '9'.
In line 43, delete '17' and insert '8' and delete ' zones'.
In line 44, delete '19' and insert '10'.
On page 9, line 10, delete '17' and insert '8'.
In line 11, delete '20' and insert '11' and delete '17 ' and
insert '8'.
In line 12, delete '18 and 19' and insert '9 and 10'.
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