Chapter 595 Oregon Laws 2005

AN ACT

HB 3350

Relating to business development tax incentives; creating new provisions; amending ORS 285C.353 and 285C.500; and prescribing an effective date.

Be It Enacted by the People of the State of Oregon:

SECTION 1. ORS 285C.500 is amended to read:

285C.500. As used in ORS 285C.500 to 285C.506:

(1) “Business firm” has the meaning given that term in ORS 285C.050.

(2) “County per capita personal income” means the per capita personal income level published by the Bureau of Economic Analysis of the United States Department of Commerce for a county.

(3) “County unemployment rate” means the most recently available unemployment rate for the county, as determined by the Employment Department.

(4) “Facility” means the land, real property improvements and personal property that are used by a business firm to conduct business operations, and that are the subject of an application for preliminary certification under ORS 285C.503 or annual certification under ORS 285C.506.

(5) “Qualified location” means any area that is:

(a) Within the urban growth boundary of a city that has 15,000 or fewer residents or is land zoned for industrial use; and

(b) Located in a county that, during either of the two years preceding the date an application for preliminary certification is filed under ORS 285C.503, had both:

(A) A county unemployment rate that was in the [highest quartile] top half of county unemployment rates in this state; and

(B) A county per capita personal income that was in the [lowest third] bottom half of county per capita personal incomes in this state.

(6) “Urban growth boundary” means an urban growth boundary contained in a city or county comprehensive plan that has been acknowledged by the Land Conservation and Development Commission pursuant to ORS 197.251 or an urban growth boundary that has been adopted by a metropolitan service district under ORS 268.390 (3).

SECTION 2. The amendments to ORS 285C.500 by section 1 of this 2005 Act apply to preliminary certifications issued under ORS 285C.503 on or after January 1, 2011, and annual certifications issued under ORS 285C.506 that are associated with preliminary certifications issued under ORS 285C.503 on or after January 1, 2011.

SECTION 3. Notwithstanding ORS 285C.500 (5), for purposes of preliminary certifications issued under ORS 285C.503 on or after January 1, 2006, and before January 1, 2011, and annual certifications issued under ORS 285C.506 that are associated with preliminary certifications issued under ORS 285C.503 on or after January 1, 2006, and before January 1, 2011:

(1) “Qualified location” means any area that is:

(a) Within the urban growth boundary of a city that has 15,000 or fewer residents or is land zoned for industrial use; and

(b) Located in a county that, during either of the two years preceding the date an application for preliminary certification is filed under ORS 285C.503 and this section, had:

(A) A county unemployment rate that was in the highest third of county unemployment rates in this state; or

(B) A county per capita personal income that was in the lowest third of county per capita personal incomes in this state.

(2) The minimum annual compensation requirements of ORS 285C.503 (5)(d) do not apply.

(3) In lieu of the requirements of ORS 285C.506 (5), the Economic and Community Development Department shall approve an application for annual certification if the business firm satisfies the requirements of ORS 285C.506 (5)(a) and (b) and the business firm satisfies the employment requirements of ORS 285C.503 (5)(c).

SECTION 4. ORS 285C.353 is amended to read:

285C.353. (1) A rural county, a city in a rural county or a combination of contiguous rural counties may apply to the Director of the Economic and Community Development Department for designation of the entire territory of the applicant as a rural renewable energy development zone.

(2) An application for designation of a rural renewable energy development zone shall be in such form and shall contain such information as the Economic and Community Development Department prescribes by rule. The application shall include a copy of the resolution of the governing body of each city or rural county that constitutes the applicant that states that the city or county seeks rural renewable energy development zone designation.

(3) The director shall approve designation of the territory of the applicant as a rural renewable energy development zone if:

(a) The area consists of territory in a rural county or is two or more contiguous rural counties; and

(b) The area would qualify for enterprise zone designation, without regard to any applicable numerical limitation on enterprise zones or to ORS 285C.090.

(4)(a) The designation of an area as a rural renewable energy development zone authorizes the exemption of up to [$100 million] an amount, determined as prescribed in paragraph (d) of this subsection, in real market value of property described in ORS 285C.359 that meets the requirements for exemption under ORS 285C.362.

(b) An applicant may seek subsequent additional designations under this section. An application for additional designation shall be made in the same manner as an application for initial designation, and shall be approved by the director if the application for additional designation meets the qualifications for designation under subsection (3) of this section.

(c) Each additional designation approved under this section authorizes the exemption of [an additional $100 million] a new amount, determined as prescribed in paragraph (d) of this subsection, in real market value of property described in ORS 285C.359 that meets the requirements for exemption under ORS 285C.362.

(d) Each amount authorized for exemption under this section shall be determined as follows:

(A) The amount shall be set forth in the resolution described in subsection (2) of this section.

(B) If no amount is specified in the resolution described in subsection (2) of this section, the amount shall be $100 million.

(C) The amount may not exceed $100 million for any single designation under this section.

(D) The amount applies only to exemptions first claimed for a tax year that begins after January 1 following the date of adoption of the resolution described in subsection (2) of this section.

(5) If an application for designation was made by one city or county, that city or county shall serve as sponsor of the rural renewable energy development zone. If the application for designation was made by two or more rural counties, the application shall identify which county shall serve as the sponsor of the zone.

SECTION 5. This 2005 Act takes effect on the 91st day after the date on which the regular session of the Seventy-third Legislative Assembly adjourns sine die.

Approved by the Governor July 22, 2005

Filed in the office of Secretary of State July 25, 2005

Effective date November 4, 2005

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