Chapter 667 Oregon Laws 2005

AN ACT

HB 2234

Relating to enterprise zones; creating new provisions; amending ORS 285C.095, 285C.406, 317.125 and 317.131; and prescribing an effective date.

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

SECTION 1. ORS 285C.095 is amended to read:

285C.095. (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 [four] 10zones for electronic commerce designation.

(5) The sponsor may by resolution revoke an electronic commerce designation made under this section. If an election is revoked, the sponsor may not subsequently seek reinstatement of electronic commerce designation.

SECTION 2. The amendments to ORS 285C.095 by section 1 of this 2005 Act apply to applications for electronic commerce designation that are filed with the Economic and Community Development Department on or after July 1, 2006.

SECTION 3. ORS 285C.406 is amended to read:

285C.406. In order for a taxpayer to claim the property tax exemption under ORS 285C.409 or a corporate excise or income tax credit under ORS 317.124:

(1) The written agreement between the business firm and the nonurban enterprise zone sponsor that is required under ORS 285C.403 (3)(c) must be entered into prior to the termination of the enterprise zone under ORS 285C.245; and

(2) The business firm must obtain certification under ORS 285C.403 on or before [December 31, 2006] June 30, 2009.

SECTION 4. ORS 317.125 is amended to read:

317.125. Notwithstanding any other provision of law creating a tax credit against corporate excise or income taxes, a taxpayer claiming a tax credit under ORS 317.124 may not claim any type of tax credit otherwise authorized by law against taxes that are otherwise due under this chapter that are equal to or less than the tax credit threshold amount computed under ORS 317.124 (7), to the extent the taxpayer offsets the taxpayer’s tax liability for the tax year with a credit allowed under ORS 317.124. Notwithstanding ORS 314.078, a taxpayer may forgo using a tax credit otherwise allowed under ORS 317.124 in order to use other tax credits in a tax year.

SECTION 5. The amendments to ORS 317.125 by section 4 of this 2005 Act apply to tax years beginning on or after January 1, 2005.

SECTION 6. ORS 317.131 is amended to read:

317.131. (1) For each tax year in which a taxpayer [claims] is allowed a credit under ORS 317.124, the Department of Revenue shall [make the following distributions] distribute to the local taxing districts in which the facility that is the basis of the credit is located an amount of tax payments that corresponds to the amount of payments deposited under ORS 317.129.[:]

[(a) Thirty percent of the tax credit threshold amount computed for the tax year, as determined under ORS 317.124 (7); and]

[(b) Thirty percent of the qualifying tax liability of the taxpayer under ORS 317.124 that remains following allowance of the tax credit allowed under ORS 317.124.]

(2)(a) Amounts to be distributed under subsection (1) of this section shall be distributed to the local taxing districts of the code area in which the facility is located that are not school districts, education service districts, community college districts or community college service districts.

(b) If the facility is located in more than one code area, amounts to be distributed under subsection (1) of this section shall be allocated to each code area in which the facility is located, based on the ratio of the real market value of the facility in each code area to the total real market value of the facility.

(c) The amount distributed to each district under subsection (1) of this section shall be the amount that bears the same proportion to the total amount to be distributed under this section as the proportion of the operating tax billing rate of the district receiving distribution bears to the total operating tax billing rate of all of the local taxing districts described in paragraph (a) of this subsection.

(d) Notwithstanding paragraph (b) of this subsection, the amount distributed to a local taxing district under subsection (1) of this section for a fiscal year may not exceed the amount of property taxes forgone by that district as a result of the exemption from property tax under ORS 285C.409 in that year.

(3) If any moneys described in subsection (1) of this section remain following computation of the distributions to local taxing districts under subsection (2) of this section, the moneys shall be distributed to the zone sponsor.

(4) Distributions shall be made under this section on or before June 1 of each fiscal year.

SECTION 7. The amendments to ORS 317.131 by section 6 of this 2005 Act apply to distributions made under ORS 317.131 on or after the effective date of this 2005 Act.

SECTION 8. 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 29, 2005

Filed in the office of Secretary of State July 29, 2005

Effective date November 4, 2005

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