Bill Text: OR SB245 | 2013 | Regular Session | Engrossed
Bill Title: Relating to enterprise zones; prescribing an effective date.
Spectrum: Committee Bill
Status: (Failed) 2013-07-08 - In committee upon adjournment. [SB245 Detail]
Download: Oregon-2013-SB245-Engrossed.html
77th OREGON LEGISLATIVE ASSEMBLY--2013 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 1303
B-Engrossed
Senate Bill 245
Ordered by the Senate June 14
Including Senate Amendments dated April 17 and June 14
Printed pursuant to Senate Interim Rule 213.28 by order of the
President of the Senate in conformance with presession filing
rules, indicating neither advocacy nor opposition on the part
of the President (at the request of Senate Interim Committee on
Business, Transportation and Economic Development)
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.
Authorizes designation of enterprise zone and zone and city for
electronic commerce, addition of zone cosponsor and change of
enterprise zone boundary without application process, subject to
determination by Oregon Business Development Department that
certain statutory requirements met. Requires notification of
department at least 60 days before designation, addition or
change, and consultation with department.
{ + Increases number of enterprise zones that may be
designated for electronic commerce. + }
Lowers minimum cost requirement for qualified property used in
electronic commerce outside zone for electronic commerce.
Takes effect on 91st day following adjournment sine die.
A BILL FOR AN ACT
Relating to enterprise zones; creating new provisions; amending
ORS 285C.050, 285C.060, 285C.065, 285C.067, 285C.068, 285C.070,
285C.080, 285C.090, 285C.095, 285C.100, 285C.105, 285C.115,
285C.120, 285C.135, 285C.175, 285C.180, 285C.185, 285C.245,
285C.250 and 315.507; repealing ORS 285C.066 and 285C.075; and
prescribing an effective date.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 285C.050 is amended to read:
285C.050. As used in ORS 285C.050 to 285C.250, unless the
context requires otherwise:
(1) 'Assessment date' and 'assessment 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 285C.140.
(3) 'Business firm' means a person operating or conducting one
or more trades or businesses, a people's utility district
organized under ORS chapter 261 or a joint operating agency
formed under ORS chapter 262, but does not include any other
governmental agency, municipal corporation or nonprofit
corporation.
(4) 'County average annual wage' means:
(a) The most recently available average annual covered payroll
for the county in which the enterprise zone is located, as
determined by the Employment Department; or
(b) If the enterprise zone is located in more than one county,
the highest county average annual wage as determined under
paragraph (a) of this subsection.
(5) '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 Oregon Business Development Department by rule.
(6) 'Eligible business firm' means a firm engaged in an
activity described under ORS 285C.135 that may file an
application for authorization under ORS 285C.140.
(7) 'Employee' means a person who works more than 32 hours per
week, but does not include a person with a temporary or seasonal
job or a person hired solely to construct qualified property.
(8) '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 areas designated { - by the Director of the Oregon Business
Development Department under ORS 285C.080 - } { + under ORS
285C.065 + }, a federal enterprise zone area designated under ORS
285C.085, an area designated under ORS 285C.250 or a reservation
enterprise zone designated, or a reservation partnership zone
cosponsored, under ORS 285C.306.
(9) '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.
(10) 'First-source hiring agreement' means an agreement between
an authorized business firm and a publicly funded job training
provider whereby the provider refers qualified candidates to the
firm for new jobs and job openings in the firm.
(11) 'In service' means being used or occupied or fully ready
for use or occupancy for commercial purposes consistent with the
intended operations of the business firm as described in the
application for authorization.
(12) 'Modification' means modernization, renovation or
remodeling of an existing building, structure or real property
machinery or equipment.
(13) 'New employees hired by the firm':
(a) Includes only those employees of an authorized business
firm engaged for a majority of their time in eligible operations.
(b) Does not include individuals employed in a job or position
that:
(A) Is created and first filled after December 31 of the first
tax year in which qualified property of the firm is exempt under
ORS 285C.175;
(B) Existed prior to the submission of the relevant application
for authorization; or
(C) Is performed primarily at a location outside of the
enterprise zone.
(14) 'Publicly funded job training provider' includes but is
not limited to a community college, a service provider under the
federal Workforce Investment Act Title I-B (29 U.S.C. 2801 et
seq.), or a similar program.
(15) 'Qualified business firm' means a business firm described
in ORS 285C.200, the qualified property of which is exempt from
property tax under ORS 285C.175.
(16) 'Qualified property' means property described under ORS
285C.180.
(17) 'Rural enterprise zone' means:
(a) An enterprise zone located in an area of this state in
which an urban enterprise zone could not be located; or
(b) A reservation enterprise zone designated, or a reservation
partnership zone cosponsored, under ORS 285C.306.
(18) '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 Population Research Center.
(19) 'Sponsor' means:
(a) The city, county or port, or any combination of cities,
counties or ports, that received approval of an enterprise zone
under ORS 284.150 and 284.160 (1987 Replacement Part) { - ,
under ORS 285C.065 and 285C.075, - } { + or + } under ORS
285C.085 or { + that designated an enterprise zone + } under ORS
{ + 285C.065 or + } 285C.250;
(b) The tribal government, in the case of a reservation
enterprise zone;
(c) The tribal government and the cosponsoring city, county or
port, in the case of a reservation partnership zone; or
(d) A city, county or port that joined the enterprise zone
through a boundary change under ORS 285C.115 (7) or a port that
joined the enterprise zone under ORS 285C.068.
(20) 'Tax year' has the meaning given that term in ORS 308.007.
(21) 'Urban enterprise zone' means an enterprise zone in a
metropolitan statistical area, as defined by the most recent
federal decennial census, that is located inside a regional or
metropolitan urban growth boundary.
(22) 'Year' has the meaning given that term in ORS 308.007.
SECTION 2. ORS 285C.060 is amended to read:
285C.060. In addition to any other powers granted by law, for
the purpose of administering ORS 285C.050 to 285C.250, the Oregon
Business Development Department shall:
(1) Adopt any rules the department considers necessary { - to
administer - } { + for the performance of the department's
duties under + } ORS 285C.050 to 285C.250.
(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 pursuant to ORS 285C.085.
{ - (5) Process sponsor requests for boundary amendments
under ORS 285C.115. - }
{ - (6) - } { + (5) + } Take action necessary to
{ - terminate or designate zones under ORS 285C.245 or
285C.250 - } { + ensure that zones designated by sponsors
comply with statutory requirements + }.
{ - (7) - } { + (6) + } Assist in implementing first-source
hiring agreements by publicly funded job training providers with
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.
SECTION 3. ORS 285C.065 is amended to read:
285C.065. (1) Any city, county or port may { - apply to the
Director of the Oregon Business Development Department for
designation of - } { + designate + } an area within
{ - that - } { + the + } city, county or port as an enterprise
zone. A port shall obtain the consent of the governing body of
the county prior to { - applying to the Oregon Business
Development Department for designation of - }
{ + designating + } an area as an enterprise zone. With the
prior consent of the governing body of the city or port, a county
may { - apply to the department - } { + , + } on behalf of a
city or port { - for designation of - } { + , designate + }
any area within { - that - } { + the + } city or port as an
enterprise zone. With the prior consent of the governing body of
a city, a port may { - apply to the department - } { + , + }
on behalf of a city { - for designation of - } { + ,
designate + } any area that is wholly or partially shared
territory of both the port and city as an enterprise zone. With
the prior consent of the governing body of a port, a city may
{ - apply to the department - } { + , + } on behalf of a port
{ - for designation of - } { + , designate + } any area that is
wholly or partially shared territory of both the city and port as
an enterprise zone.
(2) One or more cities, counties and ports may { - apply to
the director for designation of - } { + designate + } an area
situated partly within each city and partly in unincorporated
territory within the counties or ports as an enterprise zone.
{ - (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 resolution 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
285C.090 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
285C.105 and perform any other duties of the sponsor under ORS
285C.050 to 285C.250. - }
{ - (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 - }
{ - (b) Proposals for local incentives and local regulatory
flexibility to authorized business firms. - }
{ - (5) In the case of joint applications by more than one
local government unit, each city, county or port 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. - }
{ - (6) Proposals under subsection (4) or (5) of this section
for enhanced local public services, local incentives or local
regulatory flexibility included in the application by a city,
county or port for an enterprise zone are binding upon the city,
county or port if an enterprise zone is designated wholly or
partly within its boundaries. - }
{ + (3) Designation of an enterprise zone under this section
is not final until a positive determination in favor of the zone
has been made by the Oregon Business Development Department under
section 10 of this 2013 Act. + }
SECTION 4. ORS 285C.067 is amended to read:
285C.067. (1) A city, county or port that seeks to { - apply
to the Director of the Oregon Business Development Department
for - } { + designate an + } enterprise zone
{ - designation - } under ORS 285C.065 shall consult with all
local taxing districts with territory in the proposed zone prior
to { - filing the application - } { + designating the
zone + }.
(2) The Oregon Business Development Department may adopt rules
on the consultations required under subsection (1) of this
section and procedures related to the consultations.
SECTION 5. ORS 285C.068 is amended to read:
285C.068. (1) A port located in whole or in part within an
existing enterprise zone may { - submit a request to the Oregon
Business Development Department to - } be { + added as + } a
cosponsor of the enterprise zone. { - The request shall
include: - }
{ - (a) A copy of the resolution of the governing body of the
port approving the request for designation as cosponsor of the
enterprise zone; - }
{ - (b) A copy of the resolution of the governing body of
each current sponsor of the enterprise zone approving the
addition of the port as a cosponsor; and - }
{ - (c) Other information required by the department. - }
{ - (2) The department shall review the request for addition
of the port as a cosponsor of the enterprise zone. 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 port. If the request
is returned, the port 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 Oregon Business Development
Department shall approve the request. - }
{ - (3) - } { + (2) + } The addition of a port as a
cosponsor of an existing enterprise zone under this section does
not change the termination date of the enterprise zone under ORS
285C.245 (2).
SECTION 6. ORS 285C.070 is amended to read:
285C.070. (1) The governing body of a city or county that is
{ - seeking - } { + designating an + } enterprise zone
{ - designation - } under ORS 285C.065 may elect to permit a
business firm operating a hotel, motel or destination resort to
be an eligible business firm with respect to those operations.
(2) The election must be made at the time the { - application
for zone designation - } { + zone is designated + } under ORS
285C.065 { - is made - } or any time thereafter and before the
expiration of six months following the date the zone is
designated.
(3) The election shall be made by a resolution adopted by the
city or county governing body. In order for the election to be
effective, the resolution must be submitted to the Oregon
Business Development Department and acknowledged by the
department.
(4)(a) If more than one city or county is to be the sponsor,
the resolution making the election may restrict the area in which
a hotel, motel or destination resort may be located in order for
the firm to be an eligible business firm with respect to those
operations.
(b) The resolution making the restriction described in
paragraph (a) of this subsection may only restrict the area of
the zone in which a hotel, motel or destination resort may be
located to that area of the zone that is located:
(A) Within the boundaries of one or more cities in favor of
hotel, motel and destination resort exemption, if the county is
not in favor of hotel, motel and destination resort exemption;
(B) Within the unincorporated territory of a county in favor of
hotel, motel and destination resort exemption, if one or more
cities are not in favor of hotel, motel and destination resort
exemption; or
(C) Within the shared territory of a city and county in favor
of hotel, motel and destination resort exemption and the
unincorporated territory of the county, if one or more other
cities are not in favor of hotel, motel and destination resort
exemption.
(c) If a restriction is made under this subsection, the
restriction may be modified at any time within six months of the
date the zone is designated, but may not be modified at any time
thereafter.
(5) The sponsor may by resolution revoke an election made under
this section. If an election is revoked, the sponsor may not make
another election under this section.
SECTION 7. ORS 285C.080, as amended by section 1, chapter 71,
Oregon Laws 2012, is amended to read:
285C.080. (1) { - As provided in ORS 285C.065 and 285C.075,
the Director of the Oregon Business Development Department may
approve the designation of - } { + There may be designated at
any time + }:
(a) Up to 20 areas as rural enterprise zones; and
(b) Up to 15 areas as urban or rural enterprise zones.
(2) Areas designated as enterprise zones under this section are
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, areas redesignated
under ORS 285C.250, areas designated under ORS 285C.085 and areas
designated under ORS 285C.306.
SECTION 8. ORS 285C.090, as amended by section 2, chapter 71,
Oregon Laws 2012, is amended to read:
285C.090. (1) A proposed enterprise zone must be located in a
local area in which:
(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;
(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, the Portland State
University Population Research Center or special studies
conducted under a contract with a regional academic institution;
or
(c) The Oregon Business Development Department determines on a
case-by-case basis using evidence provided by the cities,
counties or ports { - applying for designation of - }
{ + designating + } the proposed enterprise zone that there
exists a level of economic hardship at least as severe as that
described in paragraph (a) or (b) of this subsection. The
evidence must be based on the most recently available data from
official sources and may include 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)(a) An urban enterprise zone may consist of a total area of
not more than 12 square miles in size.
(b) A rural enterprise zone may consist of a total area of not
more than 15 square miles in size.
(c) For purposes of this subsection, the area of the zone must
be calculated by excluding that portion of the zone that lies
below the ordinary high water mark of a navigable body of water.
(3) Except as provided in subsection (4) of this section:
(a) An urban enterprise zone must have 12 miles or less, and a
rural enterprise zone must have 15 miles or less, as the greatest
distance between any two points within the zone; and
(b) Unconnected areas of an enterprise zone may not be more
than five miles apart.
(4) Unconnected areas of a rural enterprise zone may not be
more than 15 miles apart when an unconnected area is entirely
within a sparsely populated county, and the zone:
(a) 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
(b) Must have 25 miles or less as the greatest distance between
any two points within the zone, if the zone is entirely contained
within a sparsely populated county.
(5) This section does not apply to the designation or
redesignation of a reservation enterprise zone or a reservation
partnership zone.
SECTION 9. { + Section 10 of this 2013 Act is added to and
made a part of ORS 285C.050 to 285C.250. + }
SECTION 10. { + (1) No sooner than the 61st day following
compliance with section 29 (1) of this 2013 Act, a zone sponsor
shall submit to the Oregon Business Development Department notice
of the sponsor's designation of an enterprise zone under ORS
285C.065 or 285C.250 and sufficient information for the
department to make a determination under this section.
(2)(a) As soon as practicable after receipt of the notice
required under subsection (1) of this section, the department
shall notify the zone sponsor of the department's determination
made in accordance with the following:
(A) A zone designation shall be final if the hardship and area
requirements of ORS 285C.090 are met and designation does not
cause the total number of zones designated to exceed the limits
of ORS 285C.080.
(B) A zone may not be designated if the requirements of ORS
285C.090 are not met or designation would cause the total number
of zones designated to exceed the limits of ORS 285C.080.
(b) If the department's determination is negative, the notice
required must state the reasons for the negative determination.
(c) A zone sponsor that receives a negative determination under
this subsection may resubmit the enterprise zone for a
determination under this section.
(3)(a) For purposes of complying with the numeric limits of ORS
285C.080, the department shall make determinations under this
section in the order in which notices submitted under subsection
(1) of this section are received.
(b) For purposes of this subsection, a notice that is
resubmitted after a negative determination shall be considered
received on the date of the resubmission.
(c) The department shall adopt rules necessary to administer
this subsection. + }
SECTION 11. ORS 285C.095 is amended to read:
285C.095. (1) A sponsor of an existing enterprise zone may
{ - seek to have - } { + designate + } 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 Oregon Business
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) - } { + (2) + } { - The department shall review
applications for electronic commerce designation and shall
approve - } { + There may be designated at any time + } no more
than { - 10 - } { + 15 + } zones for electronic commerce
designation.
{ - (5) - } { + (3) + } 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.
{ + (4) Designation of a zone for electronic commerce under
this section is not final until a positive determination has been
made in favor of the zone by the Oregon Business Development
Department under section 14 of this 2013 Act. + }
SECTION 12. ORS 285C.100 is amended to read:
285C.100. (1) Notwithstanding ORS 285C.095, a city shall be
designated for electronic commerce if the city:
(a) By resolution of the governing body of the city, declares
itself a city designated for electronic commerce;
(b) As of January 1, 2002, has a population of more than 1,500
but less than 2,000;
(c) Is located less than 25 miles from a city with a population
of more than 500,000; and
(d) Is located less than 10 miles from a city with a high
concentration of high technology firms and with a population
that, as of January 1, 2002, does not exceed 85,000.
(2) Only one city may be designated for electronic commerce
under this section, and that designation shall be made without
consideration of the numeric { - limitations - }
{ + limits + } imposed by ORS 285C.095.
(3)(a) A city does not need to sponsor an enterprise zone to be
designated for electronic commerce under this section.
(b) The governing body of a city designated for electronic
commerce under this section does not have to comply with the
requirements of ORS 285C.090, but the governing body must take
all actions that are required of a sponsor of a rural enterprise
zone under ORS 285C.050 to 285C.250 with respect to business
firms seeking exemption under ORS 285C.175.
(c) A business firm that is engaged in electronic commerce at a
location inside a city designated for electronic commerce under
this section and that seeks an exemption under ORS 285C.175 must
take all actions required of a qualified business firm under ORS
285C.050 to 285C.250, except that the business firm does not need
to be located within an enterprise zone.
(d) A business firm described in paragraph (c) of this
subsection:
(A) Shall be an eligible business firm, the qualified property
of which is exempt from taxation under ORS 285C.175 as if the
qualified property were located in an enterprise zone under ORS
285C.095; and
(B) May claim the tax credit under ORS 315.507.
{ + (4) Designation of a city for electronic commerce under
this section is not final until a positive determination in favor
of the city has been made by the Oregon Business Development
Department under section 14 of this 2013 Act. + }
{ - (4) - } { + (5) + } For the purpose of determining the
boundaries of a city designated for electronic commerce, 'city'
includes:
(a) Territory that is annexed into the city, as of the date of
the annexation;
(b) Land within the urban growth boundary of the city; and
(c) Territory that is added to the urban growth boundary
described in paragraph (b) of this subsection, as of the date the
urban growth boundary is extended to such territory.
SECTION 13. { + Section 14 of this 2013 Act is added to and
made a part of ORS 285C.050 to 285C.250. + }
SECTION 14. { + (1) No sooner than the 61st day following
compliance with section 29 (1) of this 2013 Act, a zone sponsor
of the governing body of a city shall submit to the Oregon
Business Development Department notice of the sponsor's or city's
designation of a zone or a city for electronic commerce under ORS
285C.095 or 285C.100, respectively, and sufficient information
for the department to make a determination under this section.
(2)(a) As soon as practicable after receipt of the notice
required under subsection (1) of this section, the department
shall notify the zone sponsor or governing body of the city of
the department's determination made in accordance with the
following:
(A) A zone or city designation shall be final if the
requirements of ORS 285C.100, if applicable, are met and
designation would not cause the numeric limits of ORS 285C.095 or
285C.100 to be exceeded.
(B) A zone or city may not be designated if the requirements of
ORS 285C.100, if applicable, are not met or designation would
cause the numeric limits of ORS 285C.095 or 285C.100 to be
exceeded.
(b) If the department's determination is negative, the notice
required must state the reasons for the negative determination.
(c) A zone sponsor or governing body of a city that receives a
negative determination under this subsection may resubmit the
zone or city for electronic commerce for a determination under
this section.
(3)(a) For purposes of complying with the numeric limits of ORS
285C.095 or 285C.100, the department shall make determinations
under this section in the order in which notices submitted under
subsection (1) of this section are received.
(b) For purposes of this subsection, a notice that is
resubmitted after a negative determination shall be considered
received on the date of the resubmission.
(c) The department shall adopt rules necessary to administer
this subsection. + }
SECTION 15. ORS 285C.105 is amended to read:
285C.105. (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 Oregon Business 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 285C.115 (7) - } to authorized or qualified
business firms and assist authorized or qualified business firms
in using enhanced local public services, local incentives and
local regulatory flexibility.
(c) Review and approve or deny applications for authorization
under ORS 285C.140.
(d) Assist the county assessor in administering the property
tax exemption and in performing other duties assigned to the
assessor under ORS 285C.050 to 285C.250.
(e) 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 285C.050
to 285C.250.
(g) Identify property available for sale or lease to eligible
business firms under ORS 285C.110.
(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 Oregon Business Development Department
and any relevant publicly funded job training provider of the
conditions and policies adopted or normally sought by the sponsor
under ORS 285C.150, 285C.155, 285C.160 or 285C.203, and take the
actions necessary to implement and enforce the conditions and
policies and any other reasonable requirements imposed pursuant
to ORS 285C.155, 285C.160 or 285C.203.
(j) Conduct, or assist in conducting, annual reporting of
enterprise zone activity or effort, if requested by the county
assessor or the Oregon Business Development Department.
(2) If more than one city, county or port sponsors an
enterprise zone, the jurisdictions shall act jointly in
performing the duties imposed on a sponsor under ORS 285C.050 to
285C.250.
SECTION 16. ORS 285C.115 is amended to read:
285C.115. (1) The sponsor of an enterprise zone may
{ - submit a request to the Oregon Business Development
Department to - } change the boundary of the enterprise zone
{ - . A request shall include: - }
{ - (a) A copy of the - } { + by + } resolution of the
governing body of the sponsor { - requesting the change; - }
{ + . + }
{ - (b) If subsection (7) of this section applies, a copy of
the resolution described in subsection (7) of this section; - }
{ - (c) A map clearly indicating the existing boundary and
the proposed change thereto; - }
{ - (d) A legal description of each area to be withdrawn from
or added to the existing enterprise zone; and - }
{ - (e) Other information required by the department. - }
(2) The amended enterprise zone shall:
(a) Add land zoned for use by eligible business firms that has
or will have infrastructure facilities, road access, on-site
water, on-site sewage disposal and necessary utility services;
(b) Continue to include any authorized business firms within
the enterprise zone;
(c) Add residential areas or nonresidential areas that are
adjacent to residential areas only if the level of economic
hardship in the areas to be added is at least as severe as the
conditions that existed at the time the original enterprise zone
was designated or that currently exist in the original enterprise
zone;
(d) Retain at least 50 percent of the lands in the original
enterprise zone; and
(e) Meet the applicable total area and greatest distance
requirements set forth in ORS 285C.090.
(3) If the enterprise zone is a reservation enterprise zone or
a reservation partnership zone and the land to be added to the
zone is not described in ORS 285C.306, the { - request for
a - } boundary change, and the resulting boundary of the zone,
must fully satisfy the provisions of this section.
(4) A { - request - } { + boundary change + } under
subsection (1) of this section may { - include a proposal
to - } :
(a) Remove only the land that is residential or not zoned or
available for use by eligible business firms; or
(b) Change the name of the enterprise zone.
(5) The boundary of an urban enterprise zone may not be
modified to include land located outside a regional or
metropolitan urban growth boundary.
(6) A { - request to modify the - } boundary { + change + }
of a rural 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 satisfy
any other criteria that the department may adopt by rule - } .
(7) { - If an area to be added to an enterprise zone - }
{ + An area that + } is under the jurisdiction of a city, county
or port that is not a sponsor of the enterprise zone { - , - }
{ + may be added to the enterprise zone under this section only
if + } the governing body of
{ - that - } { + the nonsponsoring + } city, county or port
{ - shall submit - } { + adopts + } a resolution requesting the
change and requesting that the city, county or port become a
sponsor, or { - shall submit - } a resolution consenting to
the change, as provided under ORS 285C.065 (1). { - The
resolution of the joining city, county or port shall be submitted
jointly with the resolution adopted by the governing body of the
existing sponsor. - } The joining resolution of the city, county
or port may:
(a) 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, county or port; or
(b) Include a restriction described in ORS 285C.070 (4). A
restriction made under this paragraph may be made without regard
to the time limitation described in ORS 285C.070 (4)(c) and
becomes final on the effective date of the boundary change.
{ - (8) 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 Oregon Business 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 may not be earlier than the receipt of a completed
request. - }
{ + (8) A boundary change under this section is not final
until a positive determination has been made by the Oregon
Business Development Department under section 18 of this 2013
Act. + }
(9) A change in the boundary of an enterprise zone under this
section does not change the termination date of the enterprise
zone under ORS 285C.245 (2).
SECTION 17. { + Section 18 of this 2013 Act is added to and
made a part of ORS 285C.050 to 285C.250. + }
SECTION 18. { + (1)(a) No sooner than the 61st day following
compliance with section 29 (1) of this 2013 Act, a zone sponsor
shall submit to the Oregon Business Development Department notice
of a boundary change under ORS 285C.115 and sufficient
information for the department to make a determination under this
section.
(b) For purposes of this subsection, the information submitted
to the department must include:
(A) A map clearly indicating the existing boundary and the
proposed changes;
(B) A legal description of each area to be withdrawn from or
added to the existing enterprise zone; and
(C) Any further information required by the department for the
purposes of making a determination under this section.
(2)(a) As soon as practicable after receipt of the notice
required under subsection (1) of this section, the department
shall notify the zone sponsor of the department's determination
made in accordance with the following:
(A) A boundary change shall be final if the requirements of ORS
285C.115 are met.
(B) A boundary change is not effective if the requirements of
ORS 285C.115 are not met.
(b) If the department's determination is negative, the notice
required must state the reasons for the negative determination.
(c) A zone sponsor that receives a negative determination under
this subsection may resubmit the boundary change for a
determination under this section. + }
SECTION 19. ORS 285C.120 is amended to read:
285C.120. (1) 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 rural
enterprise zone located wholly or partly within that county
{ - that was designated or that had its zone boundary
changed - } shall continue to exist with that zone boundary
until terminated. A boundary change under ORS 285C.115 that is
subsequent to the date on which the county ceases to be a
sparsely populated county may not add an area to the zone that:
(a) Is a separate area farther than five miles from the nearest
point on the existing boundary;
(b) Increases the distance between the two points in the zone
that are the farthest apart; or
(c) 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.
(2) { - An applicant for designation - } { + A zone sponsor
designating a zone + } under ORS 285C.065 or a sponsor
{ - requesting a change to - } { + changing the boundary of
+ }a rural enterprise zone under ORS 285C.115 in a sparsely
populated county may { + , pursuant to section 10 or 18 of this
2013 Act, + } seek a waiver of the distance limitations imposed
on the zone under ORS 285C.090 (4). The Director of the Oregon
Business Development Department shall grant all or part of the
waiver if:
(a) The proposed designation is to be made or the proposed
boundary change satisfies all other requirements for a boundary
change under ORS 285C.115; and
(b) The director determines, consistent with rules adopted by
the Oregon Business 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 285C.050 to 285C.250.
SECTION 20. ORS 285C.135 is amended to read:
285C.135. (1) To be an eligible business firm, a business firm
must be engaged, or proposing to engage, within the enterprise
zone, in the business of providing goods, products or services to
businesses or other organizations through activities including,
but not limited to, manufacturing, assembly, fabrication,
processing, shipping or storage.
(2) A business firm is not an eligible business firm if the
firm is:
(a) Engaged within the enterprise zone in the business of
providing goods, products or services to the general public for
personal or household use.
(b) Significantly engaged in a business activity within the
enterprise zone 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, even if for another business or organization.
(3) 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. Property at the location at which the firm conducts an
activity described in subsection (2) of this section may not be
exempt under ORS 285C.175.
(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.
(5) Notwithstanding subsections (1) to (3) of this section,
each of the following business firms is an eligible business firm
under subsection (1) of this section:
(a) A business firm engaged in the activity of providing a
retail or financial service within the enterprise zone 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.
(b) A business firm that 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, without
regard to the relationship of these activities to any otherwise
eligible activities within the enterprise zone.
(c) A business firm that operates a hotel, motel or destination
resort in the enterprise zone if the sponsor has elected under
ORS 285C.070 to treat a business firm engaged in hotel, motel or
destination resort operations in an enterprise zone as an
eligible business firm.
(d) A business firm that is engaged in electronic commerce if
the enterprise zone has been { - approved - }
{ + designated + } for electronic commerce { - designation - }
under ORS 285C.095.
SECTION 21. ORS 285C.175 is amended to read:
285C.175. (1) Property of an authorized business firm is exempt
from ad valorem property taxation if:
(a) The property is qualified property under ORS 285C.180;
(b) The firm meets the qualifications under ORS 285C.200; and
(c) The firm has entered into a first-source hiring agreement
under ORS 285C.215.
(2)(a) The exemption allowed under this section applies to the
first tax year for which, as of January 1 preceding the tax year,
the qualified property is in service. The exemption shall
continue for the next two succeeding tax years if the property
continues to be owned or leased by the business firm and located
in the enterprise zone.
(b) The property may be exempt from property taxation 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 ORS 285C.160.
(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 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 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 285C.210.
(3)(a) 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.
(b) Notwithstanding paragraph (a) of this subsection:
(A) 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.
(B) If the qualified property is an item of reconditioned,
refurbished, retrofitted or upgraded real property machinery or
equipment, the exemption shall be measured by the increase in the
value of the item that is attributable to the reconditioning,
refurbishment, retrofitting or upgrade.
(4)(a) An exemption may not be granted under this section for
qualified property assessed for property tax purposes in the
county in which the property is located on or before the
{ - effective date of the - } { + date on which + }:
(A) Designation of the zone { + becomes final under section 10
of this 2013 Act + }; or
(B) { - Approval of - } A boundary change for the zone
{ + becomes final under section 18 of this 2013 Act + } if the
property is located in an area added to the zone.
(b) An exemption may not be granted for qualified property
constructed, added, 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 - }
{ + date on which + }:
(A) Designation of the zone { + becomes final under section 10
of this 2013 Act + }; or
(B) { - Approval of - } A boundary change for the zone
{ + becomes final under section 18 of this 2013 Act + } if the
property is located in an area added to the zone.
(c) An exemption may not be granted for any qualified property
that was in service within the zone for more than 12 months by
January 1 of the first assessment year for which an exemption
claim is made.
(d) An exemption may not be granted for any qualified property
unless the property is in use or occupancy before July 1 of the
year immediately following the year during which the completion
of the construction, addition, modification or installation
occurred.
(e) Except as provided in ORS 285C.245, an exemption may not be
granted for qualified property constructed, added, modified or
installed after termination of an enterprise zone.
(5) Property is not required to have been exempt under ORS
285C.170 in order to be exempt under this section.
(6) The county 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.
(7) 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
285C.240, by adding the notation 'enterprise zone exemption
(potential additional tax). '
SECTION 22. ORS 285C.180 is amended to read:
285C.180. (1) The following types of property are qualified for
exemption under ORS 285C.175:
(a) A newly constructed building or structure.
(b) A new addition to or modification of an existing building
or structure.
(c) Any real property machinery or equipment or personal
property, whether new, used or reconditioned, that is installed
on property that is owned or leased by an authorized business
firm, and:
(A) Newly purchased or leased by the firm, unless the property
is described in ORS 285C.175 (4)(a); or
(B) Newly transferred into the enterprise zone from outside the
county within which the site of the firm is located and
installed.
(d) 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 { + designation of + } the enterprise
zone in which the property is located { - is - } { + as + } a
zone { - approved - } for electronic commerce
{ - designation under ORS 285C.095 - } { + is final under
section 14 of this 2013 Act + }.
(2) Property described in subsection (1) of this section is
qualified under this section only if:
(a) The property meets or exceeds the minimum cost requirements
established under ORS 285C.185;
(b) The property satisfies applicable usage, lease or location
requirements established under ORS 285C.185;
(c) The property was constructed, added, modified or installed
to further the production of income;
(d) The property is owned or leased by an authorized business
firm;
(e) The location of the property corresponds to the location as
set forth in the application for authorization of the business
firm and consists of a single site or multiple sites adjacent to
or having comparable proximity to each other, within the
boundaries of the enterprise zone;
(f) The property is the same general type of property as
described in the application for authorization; and
(g) In the case of an eligible business firm described in ORS
285C.135 (5)(b), the actual investment at the facility of the
firm is consistent with the description set forth in the
application for authorization.
(3) Notwithstanding subsection (1) of this section, the
following property is not qualified for exemption under ORS
285C.175:
(a) Land.
(b) Property that was not in use or occupancy for more than a
180-day period that ends during the preceding assessment year.
(c) On-site developments that, consistent with ORS 307.010, are
assessed as land.
(d) Noninventory supplies, including but not limited to
lubricants.
(e) Any operator-driven item of machinery or equipment or any
vehicle, if the item or vehicle moves by internal motorized
power. An item or vehicle described in this paragraph includes
but is not limited to an item or vehicle that moves within an
enclosed space.
(f) Any device or rolling stock that is pulled, pushed or
carried by a vehicle that is suitable as a mode of transportation
beyond the enterprise zone boundary.
(4) Subsection (3)(b) of this section does not apply to the
first assessment year for which the property is exempt under ORS
285C.175.
(5) For purposes of this section and ORS 285C.175, property
includes any portion or incremental unit of property that is
newly constructed or installed, or that is a new addition to or
modification of an existing building or structure.
SECTION 23. ORS 285C.245 is amended to read:
285C.245. (1) When the termination of an enterprise zone occurs
under this section:
(a) The termination of the enterprise zone does not affect:
(A) The continuation of a qualified business firm's property
tax exemption 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 285C.175 if:
(i) The authorization application of the firm was filed with
the sponsor before the effective date of the termination of the
zone;
(ii) The firm remains authorized at the time the exemption is
claimed;
(iii) 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
(iv) The property meets all other applicable requirements for
exemption under ORS 285C.175.
(b) A business firm that is currently 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 authorization under ORS 285C.140 and to subsequently claim
the exemption for any qualified property that is constructed,
added, modified or installed inside the former enterprise zone
boundaries, as those boundaries existed at the time of
termination, and entirely outside of the boundaries of any
current enterprise zone. Construction, addition, modification or
installation of qualified property must commence prior to the end
of the final tax year in which qualified property of the firm is
exempt under ORS 285C.175 and must be completed within a
reasonable time and without interruption of construction,
addition, modification or installation activity. The property
must meet all other applicable requirements for exemption under
ORS 285C.175.
(c) Disqualification under ORS 285C.240 of all exempt property
of the business firm after the effective date of the termination
of the enterprise zone shall prohibit and terminate all
authorizations sought or obtained by the business firm that would
not otherwise be allowed except for paragraph (b) of this
subsection. Disqualification under ORS 285C.240 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 285C.175 of qualified
property of the business firm made in a subsequent tax year.
(2) An enterprise zone designated { - by the Director of the
Oregon Business Development Department - } under ORS
{ - 285C.080, - } { + 285C.065, + } 285C.085 or 285C.250 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.
(3) An enterprise zone designated { - by the director - }
under ORS
{ - 285C.080, - } { + 285C.065, + } 285C.085 and 285C.250
shall terminate prior to the time specified in subsection (2) of
this section only as provided in subsections (4) to (6) of this
section.
(4) The governing body of the sponsor may submit a resolution
requesting termination of the enterprise zone to the Oregon
Business 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 the termination.
(5) If a sponsor is unable or unwilling to carry out its
responsibilities under ORS 285C.105, the director shall order
termination of the enterprise zone and shall specify the
effective date of 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 285C.115 (7) - } , 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 is of comparable
value, 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
285C.175 without causing termination under this section.
(6) An enterprise zone designated on or after January 1, 2004,
shall terminate if no qualified business firm has located within
the zone by December 31 following the date that is six years
after the date the zone was designated.
(7) A reservation enterprise zone designated, or a reservation
partnership zone cosponsored, under ORS 285C.306 shall terminate
in accordance with subsection (2) of this section, but may be
redesignated at any time under ORS 285C.306.
SECTION 24. ORS 285C.250, as amended by section 3, chapter 71,
Oregon Laws 2012, is amended to read:
285C.250. (1) Within a reasonable period of time prior to the
termination of enterprise zones under ORS 285C.245 (2), the
Director of the Oregon Business Development Department shall
{ - competitively designate the same number of enterprise
zones - } { + notify all eligible zone sponsors that, + }
effective immediately after termination of the previous
enterprise zones { + , the same number of enterprise zones are
available for designation + }. The determination by the director
as to the areas designated as enterprise zones shall be final.
(2)(a) When an enterprise zone is terminated under ORS 285C.245
(4) to (6), the director { - may competitively designate - }
{ + shall notify all eligible zone sponsors that + } a new
enterprise zone { + is available for designation + }.
(b) The sponsor of an enterprise zone terminated under ORS
285C.245 (4) or (5) is not eligible to { - apply for - }
{ + designate + } a new enterprise zone for a period not to
exceed 10 years after the zone is terminated.
(c) Paragraph (b) of this subsection does not apply to a county
government when the terminated zone was also jointly sponsored by
one or more cities or ports.
(3) Sponsors of existing enterprise zones that are due to
terminate may { - reapply for designation - } { + designate
the enterprise zones + } under subsection (1) of this section.
(4) Any city, county or port may { - apply to the director
for designation of - } { + designate + } an enterprise zone in
accordance with { + ORS 285C.065 and with + } the criteria set
forth in ORS { - 285C.065 and - } 285C.090. In addition, the
Oregon Business 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 285C.050 to 285C.250.
(5) All enterprise zones designated under this section shall
terminate in accordance with ORS 285C.245 (2).
(6) When the director { - designates - } { + makes a
determination with respect to + } enterprise zones
{ + designated + } under this section, there is no limit on the
relative number of urban or rural enterprise zones designated.
(7) The director may determine when to accept
{ - applications for any - } { + designations of an + }
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.
SECTION 25. { + ORS 285C.066 and 285C.075 are repealed. + }
SECTION 26. ORS 285C.185 is amended to read:
285C.185. (1) In order for property to be qualified property
under ORS 285C.180, the property must cost:
(a) $50,000 or more, in the case of:
(A) All real property that is concurrently exempt at the
location; or
(B) An item of personal property that is not described in
paragraph (b) of this subsection.
(b) $1,000 or more, in the case of an item of personal property
that is used:
(A) Exclusively in the production of tangible goods; or
(B) In electronic commerce { - in an enterprise zone approved
for electronic commerce designation under ORS 285C.095 - } .
(2) The estimated cost of property set forth in an application
for authorization under ORS 285C.140 shall be disregarded for
purposes of determining if property is qualified property.
(3) Property that is leased by the authorized business firm may
be qualified property under ORS 285C.180 only if the terms of the
lease provide:
(a) During the term of the lease, that the authorized business
firm is to compensate the owner of the leased property for all
property taxes assessed against the leased property or that the
firm is to pay these taxes; and
(b) That the term of the lease begins on or before the start of
the first tax year for which the property is exempt and ends on
or after the last day of the last tax year for which the property
is exempt.
(4) In order for property that is owned or leased by an
authorized business firm operating a hotel, motel or destination
resort to be qualified property under ORS 285C.180, the property
must be:
(a) Located and in service in an enterprise zone for which the
sponsor has elected under ORS 285C.070 to treat a business firm
engaged in hotel, motel or destination resort operations as an
eligible business firm;
(b) Located at the same site as the hotel, motel or destination
resort or in close proximity to that site; and
(c) 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) In order for property owned or leased and operated by a
business firm engaged in electronic commerce in a city designated
for electronic commerce under ORS 285C.100 to be qualified
property, the property otherwise qualified under this section and
the applicable electronic commerce operations of the firm must be
located in that city.
(6)(a) As used in this section, 'item of personal property '
includes an integrated system consisting of various components.
(b) Consistent with paragraph (a) of this subsection, the
Department of Revenue may by rule further define what constitutes
an item of personal property for purposes of this section.
SECTION 27. ORS 315.507 is amended to read:
315.507. (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) A business firm engaged or preparing to engage in
electronic commerce in an enterprise zone that has been
{ - approved - } { + designated + } for electronic commerce
{ - designation - } under ORS 285C.095; or
(b) A business firm engaged or preparing to engage in
electronic commerce in a city that has been designated for
electronic commerce under ORS 285C.100.
(2) The credit shall equal 25 percent of the investments made
by the business firm in capital assets:
(a) Located in the area designated for electronic commerce;
(b) Used or constructed, installed or otherwise prepared for
use in electronic commerce operations within the area designated
for electronic commerce that are related to electronic commerce
sales, customer service, order fulfillment, broadband
infrastructure or other electronic commerce operations; and
(c)(A) During the period that commences when the firm becomes
an authorized business firm under ORS 285C.140 and ends on the
last day of the income or corporate excise tax year in which
begins the first property tax year in which qualified property of
the firm used in eligible electronic commerce activities is
exempt from property taxation under ORS 285C.175; or
(B) During any income or corporate excise tax year in which
begins a property tax year in which qualified property of the
firm used in eligible electronic commerce operations is exempt
from property taxation under ORS 285C.175.
(3) Except as provided in subsection (5) of this section, the
credit must be claimed for the income or corporate excise tax
year that is:
(a) The year in which the investment for which a credit is
being claimed is made; and
(b) A year, all or part of which is described in subsection
(2)(c) of this section.
(4) A credit allowed under this section for any one tax year
may not exceed the lesser of $2 million or 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) The credit allowed under this section is not in lieu of any
depreciation or amortization deduction to which the taxpayer
otherwise may be entitled under ORS chapter 316, 317 or 318 for
the tax year.
(7) The taxpayer's adjusted basis for determining gain or loss
may not be further decreased by any amount of credit allowed
under this section.
(8)(a) A nonresident shall be allowed the credit under this
section in the proportion provided in ORS 316.117.
(b) If a change in the status of a taxpayer from resident to
nonresident or from nonresident to resident occurs, the credit
allowed under this section shall be determined in a manner
consistent with ORS 316.117.
(c) If a change in the taxable year of a taxpayer occurs as
described in ORS 314.085, or if the Department of Revenue
terminates the taxpayer's taxable year under ORS 314.440, the
credit allowed under this section shall be prorated or computed
in a manner consistent with ORS 314.085.
(9) As used in this section, 'authorized business firm, ' '
business firm,' 'electronic commerce' and 'qualified property'
have the meanings given those terms in ORS 285C.050.
SECTION 28. { + Section 29 of this 2013 Act is added to and
made a part of ORS 285C.050 to 285C.250. + }
SECTION 29. { + (1) Before submitting notice, as required
under section 10, 14 or 18 of this 2013 Act, as applicable, of
the designation of an enterprise zone under ORS 285C.065 or
285C.250 or a zone or city for electronic commerce under ORS
285C.095 or 285C.100, respectively, or a change of the boundary
of an enterprise zone under ORS 285C.115, the zone sponsor or
governing body of the city shall notify the Oregon Business
Development Department of the zone sponsor's or the city's intent
to make the designation or boundary change.
(2)(a) As soon as practicable after receipt of a notice sent
pursuant to subsection (1) of this section, the department shall
contact the zone sponsor or the governing body of the city to
arrange a consultation about the designation or boundary change.
(b) After the consultation required under this subsection, the
zone sponsor or city may submit to the department notice of the
designation or boundary change, at the time and in the manner
required under section 10, 14 or 18 of this 2013 Act, as
applicable.
(3) A notice sent pursuant to subsection (1) of this section
does not bind the zone sponsor or the city to the action that is
the subject of the notice. + }
SECTION 30. { + Sections 10, 14, 18 and + } { + 29 of this
2013 Act, the amendments to ORS 285C.050, 285C.060, 285C.065,
285C.067, 285C.068, 285C.070, 285C.080, 285C.090, 285C.095,
285C.100, 285C.105, 285C.115, 285C.120, 285C.135, 285C.175,
285C.180, 285C.185, 285C.245, 285C.250 and 315.507 by sections 1
to 8, 11, 12, 15, 16, 19 to 24, 26 and 27 of this 2013 Act and
the repeal of ORS 285C.066 and 285C.075 by section 25 of this
2013 Act apply to enterprise zones and zones and cities for
electronic commerce designated, zone cosponsors added and
enterprise zone boundaries changed, on and after the effective
date of this 2013 Act. + }
SECTION 31. { + This 2013 Act takes effect on the 91st day
after the date on which the 2013 regular session of the
Seventy-seventh Legislative Assembly adjourns sine die. + }
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