Bill Text: OR HB4107 | 2012 | Regular Session | Introduced

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Bill Title: Relating to recruitment of business; prescribing an effective date.

Sponsorship: Slight Partisan Bill (Republican 8-5)

Status: (Failed) 2012-03-05 - In committee upon adjournment. [HB4107 Detail]

Download: Oregon-2012-HB4107-Introduced.html

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     76th OREGON LEGISLATIVE ASSEMBLY--2012 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 223

                         House Bill 4107

Sponsored by Representatives PARRISH, WINGARD, Senator DEVLIN;
  Representatives BREWER, FREDERICK, GILLIAM, MATTHEWS,
  SCHAUFLER, SHEEHAN, WAND, WEIDNER, WITT, Senator OLSEN
  (Presession filed.)

                             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.

  Requires Department of Revenue to distribute 50 percent of
business income taxes attributable to new business or expanded
business to local jurisdiction that recruited new business or
expanded business. Requires Oregon Business Development
Commission to create registry to certify local jurisdiction as
recruiting jurisdiction.
  Takes effect on 91st day following adjournment sine die.

                        A BILL FOR AN ACT
Relating to recruitment of business; and prescribing an effective
  date.
Be It Enacted by the People of the State of Oregon:
  SECTION 1.  { + As used in sections 1 to 3 of this 2012 Act:
  (1) 'Expanded business' means the location and conduct of
business in a jurisdiction in Oregon in which the business entity
is not located, by a business entity that is located in Oregon.
  (2) 'Locate,' 'located' or 'location' means to obtain or
possess an interest in real property from which a business
enterprise will be or is conducted.
  (3) 'New business' means the location and conduct of business
in Oregon by a business entity that is not located in Oregon.
  (4) 'Recruiting jurisdiction' means a local jurisdiction
certified under section 3 of this 2012 Act. + }
  SECTION 2.  { + (1) The Department of Revenue shall distribute,
pursuant to subsection (2) of this section, the following taxes
that are attributable to new business or expanded business:
  (a) Taxes imposed under ORS chapters 317 and 318;
  (b) Taxes imposed under ORS chapter 316 on a distributive share
of partnership income or on income of a shareholder of an S
corporation; and
  (c) Any tax imposed on an S corporation pursuant to ORS
314.740, 314.742 or 317.090.
  (2) The department shall distribute 50 percent of the taxes
described in subsection (1) of this section as follows:
  (a) 60 percent to the recruiting jurisdiction, to be divided
equally in the case of multiple recruiting jurisdictions.
  (b) 40 percent to all local taxing districts in the code area
of the recruiting jurisdiction:
  (A) In proportion to the county distribution percentages of all
the districts determined under ORS 311.390 for the tax year in
which the distribution is made; or
  (B) In a manner agreed to by all local taxing districts in the
code area.
  (3) Taxes shall be distributed pursuant to subsection (2) of
this section for the first five tax years that begin after the
business entity first conducts business in the recruiting
jurisdiction.
  (4) The department may not distribute amounts under this
section unless the Director of the Department of Revenue obtains:
  (a) A recruiting jurisdiction certificate for each eligible
jurisdiction from the Oregon Business Development Commission
pursuant to section 3 of this 2012 Act; and
  (b) As applicable, the agreement among the local taxing
districts directing the division of the amount distributed
pursuant to subsection (2)(b) of this section.
  (5) The department may adopt rules to implement the provisions
of this section. + }
  SECTION 3.  { + (1) The Oregon Business Development Commission
shall create and maintain a business recruitment registry for the
purpose of certifying local jurisdictions as recruiting
jurisdictions.
  (2)(a) To preserve a claim as a recruiting jurisdiction, before
beginning significant recruitment efforts for which a claim may
be recognized, a local jurisdiction must file with the registry a
statement of intent to recruit a specific business entity to
locate in the local jurisdiction.
  (b) Upon request, the commission shall certify the local
jurisdiction as a recruiting jurisdiction if officials of the
local jurisdiction file with the registry evidence of:
  (A) A commitment by a business entity to locate and conduct
business in the local jurisdiction; and
  (B) Significant efforts by officials of the local jurisdiction
that substantially influenced the business entity to locate and
conduct business in the jurisdiction.
  (3)(a) The commission shall adopt rules for the registry that
provide processes by which:
  (A) Local jurisdictions may file the documents described in
subsection (2) of this section; and
  (B) A local jurisdiction or the Department of Revenue may
request, and the commission shall provide, the recruiting
jurisdiction certificate required under section 2 (4) of this
2012 Act.
  (b) The commission may establish and charge fees for use of the
registry to reimburse the commission for the actual costs of
complying with this section. + }
  SECTION 4.  { + The business recruitment registry required
under section 3 of this 2012 Act must be operational no later
than January 1, 2013. + }
  SECTION 5.  { + This 2012 Act takes effect on the 91st day
after the date on which the 2012 regular session of the
Seventy-sixth Legislative Assembly adjourns sine die. + }
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