Oregon Statute | Act | Code |Title 26a Economic Development| US Code - US Statute

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 but does not include any 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 Economic and Community
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 Economic and Community Development
Department under ORS 285C.080, a federal enterprise zone area designated
under ORS 285C.085, an area designated under ORS 285C.250 or a
reservation enterprise zone designated 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 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 Center for Population Research and Census.

(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, under ORS 285C.085 or under ORS 285C.250;

(b) The tribal government, in the case of a reservation enterprise
zone; or

(c) 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.
[Formerly 285B.650; 2005 c.94 §2; 2005 c.704 §1](Findings) The Legislative Assembly finds and
declares that the health, safety and welfare of the people of this state
are dependent upon the continued encouragement, development, growth and
expansion of employment, business, industry and commerce throughout all
regions of the state, but especially in those communities at the center
of or outside major metropolitan areas for which geography may act as an
economic hindrance. The Legislative Assembly further declares that there
are areas in the state that need the particular attention of government
to help attract private business investment into these areas and to help
resident businesses to reinvest and grow and that many local governments
wish to have tax incentives and other assistance available to stimulate
sound business investments that support and improve the quality of life.
Therefore, it is declared to be the purpose of ORS 285C.050 to 285C.250
to stimulate and protect economic success in such areas of the state by
providing tax incentives for employment, business, industry and commerce
and by providing adequate levels of complementary assistance to community
strategies for such interrelated goals as environmental protection,
growth management and efficient infrastructure. [Formerly 285B.665](Duties of Economic and Community Development Department) In addition to any other
powers granted by law, for the purpose of administering ORS 285C.050 to
285C.250, the Economic and Community Development Department shall:

(1) Adopt any rules the department considers necessary to
administer 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) Take action necessary to terminate or designate zones under ORS
285C.245 or 285C.250.

(7) 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. [Formerly 285B.668](Creation of Enterprise Zone)(1) Any city, county or port may apply to the
Director of the Economic and Community Development Department for
designation of an area within that 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 Economic and Community Development Department
for designation of 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 any area within
that 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 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 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 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.
[Formerly 285B.656; 2005 c.704 §4] The Economic and
Community Development Department may adopt rules related to the consent
required from a city, county or port under ORS 285C.065 in order for a
city, county or port to apply for enterprise zone designation under ORS
285C.065. [2005 c.704 §5]Note: 285C.066 and 285C.067 were enacted into law by the
Legislative Assembly but were not added to or made a part of ORS chapter
285C or any series therein by legislative action. See Preface to Oregon
Revised Statutes for further explanation. (1) A
city, county or port that seeks to apply to the Director of the Economic
and Community Development Department for 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.

(2) The Economic and Community Development Department may adopt
rules on the consultations required under subsection (1) of this section
and procedures related to the consultations. [2005 c.704 §6]Note: See note under 285C.066. (1) A port located in whole
or in part within an existing enterprise zone may submit a request to the
Economic and Community Development Department to be 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 Economic and
Community Development Department shall approve the request.

(3) 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). [2005 c.704 §14](1) The
governing body of a city or county that is seeking 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 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 Economic and Community 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. [2003 c.662 §17](1) The Economic and Community Development
Department shall review each application for designation of an enterprise
zone, and shall secure any additional information that the department
considers necessary for the purpose of determining whether the area
described in the application qualifies for designation as an enterprise
zone.

(2) The department shall complete review of the application within
60 days of the last date designated for receipt of an application. After
review of the applications, the department shall forward those qualified
applications to the Director of the Economic and Community Development
Department. The director shall determine which applications have the
greatest potential for accomplishing the purposes of ORS 285C.050 to
285C.250.

(3) As authorized under ORS 285C.080 or 285C.250, the director may
approve the designation of one or more enterprise zones. The
determination by the director as to the areas designated enterprise zones
shall be final.

(4) If an application for enterprise zone designation is denied,
the governing body of the cities, counties or ports submitting the
application shall be informed of that fact together with the reasons for
the denial. Cities, counties or ports may reapply to the department for
designation of an area as an enterprise zone. [Formerly 285B.659; 2005
c.704 §7] (1) As provided in ORS
285C.065 and 285C.075, the Director of the Economic and Community
Development Department may approve the designation of:

(a) Up to 17 areas as rural enterprise zones; and

(b) Up to 10 areas as urban or rural enterprise zones.

(2) Areas designated as enterprise zones under this section shall
be 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.
[Formerly 285B.653; 2005 c.704 §§2,2a] (1) The Economic and Community
Development Department shall be the lead agency for state participation
in a federal enterprise zone program. The Director of the Economic and
Community Development Department may take action necessary for such
participation to the extent allowed by state law.

(2) Any area designated as a federal enterprise zone by an agency
of the federal government may be designated as a state enterprise zone by
the director at the request of a city, county or port within whose
jurisdiction some or all of the federal enterprise zone is located,
without regard to any limitation contained in ORS 285C.090.

(3) The boundary of an existing state enterprise zone may be
amended by the director at the request of the sponsor to include the
entire area of a federal enterprise zone without regard to ORS 285C.115
(2). A change in the boundary of an existing state enterprise zone under
this subsection does not change the termination date of the enterprise
zone under ORS 285C.245 (2).

(4) A request by a city, county or port under subsection (2) or (3)
of this section shall be in such form and include such information as
required by the department, but the request must:

(a) Include a resolution adopted by the governing body of the city,
county or port; and

(b) Provide that all areas within both the federal enterprise zone
and the city, county or port are included in a state enterprise zone.

(5) The termination under federal law of a federal enterprise zone
does not affect the existence or dimensions of a state enterprise zone,
except when, as determined by the director, the termination is for
nonperformance or for violations of federal guidelines. [Formerly
285B.677; 2005 c.704 §8]
(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 of
this state, the Portland State University Center for Population Research
and Census or special studies conducted under a contract with a regional
academic institution; or

(c) The Economic and Community Development Department determines on
a case-by-case basis using evidence provided by the cities, counties or
ports applying for designation of 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 shall be based
on the most recently available data from official sources and may
include, but is not limited to, 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) An enterprise zone must consist of a total area of not more
than 12 square miles in size. The area of the zone shall 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 enterprise zone must have 12 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. [Formerly 285B.662; 2005 c.94 §4; 2005
c.704 §9](Electronic Commerce)(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 10 zones 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. [Formerly 285B.672; 2005 c.667 §1]Note: The amendments to 285C.095 by section 1, chapter 667, Oregon
Laws 2005, apply to applications for electronic commerce designation that
are filed with the Economic and Community Development Department on or
after July 1, 2006. See section 2, chapter 667, Oregon Laws 2005. The
text that applies to applications filed before July 1, 2006, is set forth
for the user’s convenience.

(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 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) 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. [Formerly 285B.673; 2005 c.94 §5](Management of Enterprise Zone) (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
Economic and Community 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 Economic and Community 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 or 285C.160 and take the actions necessary to implement and
enforce the conditions and policies and any other reasonable requirements
imposed pursuant to ORS 285C.155 or 285C.160.

(j) Conduct, or assist in conducting, annual reporting of
enterprise zone activity or effort, if requested by the county assessor
or the Economic and Community 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. [Formerly 285B.671;
2005 c.704 §10] Subject to the
requirements of the Oregon Constitution or any other applicable law, the
State of Oregon and municipal corporations that own any real property
within an enterprise zone that is zoned for use by eligible businesses
and that is not used or designated for some public purpose shall make
that real property available for lease or purchase by authorized business
firms. Real property shall be leased or sold under this section only upon
the condition that the authorized business firm promptly develop the real
property for a use that is consistent with the use described in the
application for authorization under ORS 285C.140. [Formerly 285B.674] (1) The sponsor of an
enterprise zone may submit a request to the Economic and Community
Development Department to change the boundary of the enterprise zone. A
request shall include:

(a) A copy of the 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 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 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 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 is under the
jurisdiction of a city, county or port that is not a sponsor of the
enterprise zone, the governing body of that city, county or port shall
submit 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 Economic and Community 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.

(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). [Formerly 285B.680; 2005 c.94 §6; 2005 c.704 §11](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 under ORS 285C.065 or a sponsor
requesting a change to a rural enterprise zone under ORS 285C.115 in a
sparsely populated county may seek a waiver of the distance limitations
imposed on the zone under ORS 285C.090 (4). The Director of the Economic
and Community 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
Economic and Community 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. [Formerly 285B.683; 2005 c.94 §7](Duties of Property Tax Administrators) For the purposes
of ORS 285C.050 to 285C.250, the Department of Revenue shall:

(1) Adopt any rules the Department of Revenue considers necessary
to implement ORS 285C.125, 285C.130, 285C.140, 285C.145, 285C.165,
285C.175, 285C.180, 285C.185, 285C.190, 285C.220, 285C.225, 285C.230,
285C.235 and 285C.240.

(2) Assist the Economic and Community Development Department,
county assessors and the sponsors of enterprise zones in their efforts to
authorize or qualify eligible business firms.

(3) Assist an eligible business firm proposing to do business
within an enterprise zone or doing business within an enterprise zone to
obtain the benefits of applicable tax incentive or inducement programs
administered or supervised by the Department of Revenue.

(4) Issue and print forms and worksheets to be used by business
firms to make authorization applications or exemption claims. [Formerly
285B.692; 2005 c.94 §8] The assessor of a county within
which an enterprise zone is located shall:

(1) Assist the sponsor, the local zone manager appointed by the
sponsor and business firms in determining whether property will qualify
for a property tax exemption under ORS 285C.175.

(2) Review and approve or deny applications from eligible business
firms for authorization under ORS 285C.140.

(3) Process claims for property tax exemptions filed under ORS
285C.220 and exempt the qualified property of authorized business firms
from ad valorem property taxation in accordance with ORS 285C.050 to
285C.250.

(4) Take action necessary under ORS 285C.240.

(5) Submit a written report to the Department of Revenue on or
before July 1 of each assessment year. The report for each enterprise
zone, or portion of a zone that is located in the county, shall include
the following information, organized by business firm:

(a) The assessor’s estimate of the assessed value of qualified
property that was exempt under ORS 285C.175 for the previous tax year and
the taxes that would have been imposed on the qualified property, as
entered on the assessment and tax roll under ORS 285C.175 (7).

(b) The annual average number of employees of the firm within the
enterprise zone during the previous assessment year, as reported on the
exemption claim filed under ORS 285C.220.

(c) The annual average compensation for the previous assessment
year of new employees hired by the firm within the enterprise zone, if
the firm is subject to the annual compensation requirements of ORS
285C.160 (3), as reported on the exemption claim filed under ORS 285C.220.

(d) The assessor’s estimate of the assessed value, for the current
tax year, of qualified property that was exempt under ORS 285C.175 for
the previous tax year and that is not exempt under ORS 285C.175 for the
current tax year.

(e) The total investment cost of qualified property first reported
on the exemption claim filed under ORS 285C.220 that includes a property
schedule submitted by the business firm pursuant to ORS 285C.225 for the
current tax year.

(f) The current number of employees of the firm, as reported on the
exemption claim filed under ORS 285C.220 and described in paragraph (e)
of this subsection.

(g) Any other information the assessor or the Department of Revenue
considers appropriate.

(6) Send a copy of a report prepared under subsection (5) of this
section to the sponsor of the enterprise zone and to the Economic and
Community Development Department. [Formerly 285B.695](Eligible Business Firms) (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 for electronic commerce designation
under ORS 285C.095. [Formerly 285B.707](Authorization)(1)(a) Any eligible business
firm seeking to have property exempt from property taxation under ORS
285C.175 shall, before the commencement of direct site preparation
activities or the construction, addition, modification or installation of
qualified property in an enterprise zone, and before the hiring of
eligible employees, apply for authorization under this section.

(b) The application shall be made on a form prescribed by the
Department of Revenue and the Economic and Community Development
Department.

(c) The application shall be filed with the sponsor of the zone. A
sponsor may require that the application filed with the sponsor be
accompanied by a filing fee. If required, the filing fee may not exceed
the greater of $200 or one-tenth of one percent of the value of the
investment in qualified property that is proposed in the application for
authorization. The filing fee may be required for the filing of
applications only after the sponsor adopts a policy, consistent with
Economic and Community Development Department rules, authorizing the
imposition of the filing fee.

(2) The application shall contain the following information:

(a) A description of the nature of the firm’s current and proposed
business operations inside the boundary of the enterprise zone;

(b) A description and estimated value of the qualified property to
be constructed, added, modified or installed inside the boundary of the
enterprise zone;

(c) The number of employees of the firm that are employed within
the enterprise zone, averaged over the previous 12 months, and an
estimate of the number of employees that will be hired by the firm;

(d) A commitment to meet all requirements of ORS 285C.200 and
285C.215, and to verify compliance with these requirements;

(e) A commitment to satisfy all additional conditions for
authorization that are imposed by the enterprise zone sponsor under ORS
285C.150, 285C.155 or 285C.205 or pursuant to an agreement entered into
under ORS 285C.160, and to verify compliance with these additional
conditions;

(f) A commitment to renew the application, consistent with ORS
285C.165, every two years while the zone exists if the firm has not filed
a claim under ORS 285C.220 that is based on the application; and

(g) Any other information considered necessary by the Department of
Revenue and the Economic and Community Development Department.

(3) After an application is submitted to a sponsor, the business
firm may revise or amend the application. An amendment or revision may
not be made on or after January 1 of the first assessment year for which
the qualified property associated with the application is exempt under
ORS 285C.175.

(4) If an application for authorization appears to be complete and
the proposed investment appears to be eligible for authorization, the
sponsor and the business firm shall conduct a preauthorization
consultation. The county assessor shall be timely notified and have the
option to participate in the consultation. The consultation shall:

(a) Identify issues with the potential to affect compliance with
relevant exemption requirements, including but not limited to enterprise
zone boundary amendments;

(b) Arrange for methods and procedures to establish and verify
compliance with applicable requirements; and

(c) Identify the person who is obligated to notify the county
assessor if requirements are not being satisfied.

(5) Upon completion of the consultation, the sponsor shall prepare
a written summary of the consultation made under subsection (4) of this
section, attach the summary to the application and forward the
application to the county assessor of each county in which the zone is
located for review by the assessor.

(6) Following the preauthorization conference under subsection (4)
of this section, the sponsor and the county assessor shall authorize the
business firm by approving the application, if the sponsor and county
assessor determine that:

(a) The current or proposed operations of the business firm in the
enterprise zone result in the firm being eligible under ORS 285C.135; and

(b) The firm has made the commitments and provided the other
information required under subsection (2) of this section.

(7) If the business firm seeking authorization is an eligible
business firm described in ORS 285C.135 (5)(b), the sponsor must, as a
condition to approving the application, make a formal finding that the
business firm is an eligible business firm under ORS 285C.135 and that
the size of the proposed investment, the employment at the facility of
the firm or the nature of the activities undertaken by the firm within
the enterprise zone will significantly enhance the local economy, promote
the purposes for which the zone was created and increase employment
within the zone.

(8) The approval of both the sponsor and the county assessor under
this section shall be prima facie evidence that the qualified property of
the business firm will receive the property tax exemption under ORS
285C.175. In approving the application, the sponsor and county assessor
shall provide proof of approval as directed by the Economic and Community
Development Department.

(9) If the sponsor or county assessor fails or refuses to authorize
the business firm, the business firm may appeal to the Oregon Tax Court
under ORS 305.404 to 305.560. The business firm shall provide copies of
the firm’s appeal to the sponsor, county assessor, the Department of
Revenue and the Economic and Community Development Department.

(10) Authorization under this section does not ensure that property
constructed, added, modified or installed by the authorized business firm
will receive property tax exemption under ORS 285C.175. The sponsor and
the county assessor are not liable in any way if the Department of
Revenue or the county assessor later determines that an authorized
business firm does not satisfy the requirements for an exemption on
qualified property.

(11) Notwithstanding subsection (1) of this section, if an eligible
business firm has begun or completed the construction, addition,
modification or installation of property that meets the qualifications of
ORS 285C.180, and the property has not yet been subject to property tax,
then, for purposes of ORS 285C.050 to 285C.250, the firm shall be
authorized under this section if the firm files an application that is
allowed under subsection (12) of this section and is otherwise authorized
under this section.

(12) Late submission of an application under this section is
allowed if:

(a) A rule permits late submissions of applications under this
section; or

(b) The Department of Revenue waives filing deadline requirements
under this section. The department shall issue a letter to the eligible
business firm and zone sponsor setting forth the waiver under this
paragraph. [Formerly 285B.719](1) The Legislative Assembly finds that the standard procedure for
authorization in an enterprise zone inappropriately deters development or
redevelopment of qualified buildings on speculation for subsequent sale
or lease to eligible business firms.

(2) Notwithstanding ORS 285C.140 (1), a new building or structure
or an addition to or modification of an existing building or structure
may qualify for the exemption allowed under ORS 285C.175 if the qualified
property is leased or sold by an unrelated party to one or more
authorized business firms after commencement of the construction,
addition or modification but prior to use or occupancy of the qualified
property.

(3) A business firm may not be considered authorized and is not
qualified for the exemption allowed under ORS 285C.175 if the county
assessor discovers prior to initially granting the exemption that the
application for authorization was not submitted by the business firm in a
timely manner in accordance with ORS 285C.140, except as allowed under
subsection (2) of this section or ORS 285C.140 (11) and (12).

(4) Records, communications or information submitted to a public
body by a business firm for purposes of ORS 285C.050 to 285C.250 that
identify a particular qualified property, that reveal investment plans
prior to authorization, that include the compensation the firm provides
to firm employees, that are described in ORS 192.502 (16) or that are
submitted under ORS 285C.225 or 285C.235 are exempt from disclosure under
ORS 192.410 to 192.505 and, as appropriate, shall be shared among the
county assessor, the zone sponsor, the Department of Revenue and the
Economic and Community Development Department. [Formerly 285B.701]
(1) The sponsor of an urban enterprise zone may require an eligible
business firm seeking authorization under ORS 285C.140 to satisfy other
conditions in order for the firm to be authorized.

(2) The conditions that a sponsor may impose under this section
must be reasonably related to the public purpose of providing
opportunities for groups of persons, as defined by the sponsor, to obtain
employment, including but not limited to providing training to these
groups of persons.

(3) The sponsor may establish procedures for monitoring and
verifying compliance with conditions imposed on the firm under this
section and require the firm to agree to the procedures as a condition to
authorizing the firm.

(4) Conditions established under this section may be imposed on a
firm only if the sponsor has adopted a policy that establishes standards
for the imposition of the conditions.

(5) Conditions imposed by a sponsor under this section shall be in
addition to, and not in lieu of, conditions and requirements imposed
under ORS 285C.050 to 285C.250 or pursuant to an agreement entered into
under ORS 285C.160 and do not affect the duties of the Department of
Revenue or of the county assessor under ORS 285C.050 to 285C.250.

(6) A sponsor of an urban enterprise zone that imposes conditions
for authorization on eligible business firms under this section shall
submit a written report every four years to the Legislative Assembly
concerning the application and effects of the conditions on business
firms within the enterprise zone. [2003 c.662 §32]For purposes of ORS 285C.200 (2):

(1) The sponsor of an enterprise zone, at the time authorization is
sought by a business firm under ORS 285C.140, shall establish a minimum
number of employees the firm must maintain in the enterprise zone
throughout the exemption period.

(2) The sponsor, at the time authorization is sought by a business
firm under ORS 285C.140, may establish other reasonable conditions with
which the firm must comply in order for qualified property of the firm to
be exempt under ORS 285C.175.

(3) Employment requirements and other conditions established by the
sponsor under this section shall be set forth in a resolution adopted by
the governing body of the sponsor at the time the sponsor approves the
application of the business firm for authorization under ORS 285C.140.

(4) A resolution adopted pursuant to this section may be modified
at the request of the business firm at any time prior to the start of the
first tax year for which an exemption under ORS 285C.175 is claimed.
[2003 c.662 §33](1) An eligible business firm seeking
authorization under ORS 285C.140 and the sponsor of the enterprise zone
in which the firm intends to invest may enter into a written agreement to
extend the period during which the qualified property is exempt from
taxation under ORS 285C.175 if the firm complies with the terms of the
agreement.

(2) The period for which the qualified property is to continue to
be exempt must be set forth in the agreement and may not exceed two
additional tax years.

(3) In order for an agreement under this section to extend the
period of exemption, the agreement must be executed on or before the date
on which the firm is authorized, and:

(a) If the enterprise zone is a rural enterprise zone or an urban
enterprise zone located inside a metropolitan statistical area of fewer
than 400,000 residents, the agreement must require that the firm meet
both of the following:

(A) Annually compensate all new employees hired by the firm at an
average rate of not less than 150 percent of the county average annual
wage for each assessment year during the tax exemption period, as
determined at the time of authorization.

(B) Any additional requirement that the sponsor may reasonably
request.

(b) If the enterprise zone is an urban enterprise zone located
inside a metropolitan statistical area of 400,000 residents or more, the
agreement must require that the firm meet any additional requirement the
sponsor may reasonably require.

(4) If a firm enters into an agreement under this section that
includes a compensation requirement under subsection (3)(a)(A) of this
section and the firm subsequently submits one or more statements of
continued intent under ORS 285C.165, notwithstanding the terms of the
agreement made under this section, for each statement of continued intent
submitted, the county average annual wage under subsection (3)(a)(A) of
this section shall be adjusted to a level that is current with the
statement. [2003 c.662 §34; 2005 c.94 §9] (1) In
the case of an authorized business firm that has not yet claimed the
exemption under ORS 285C.175 on qualified property:

(a) After the January 1, but on or before the April 1, that first
occurs more than two years after the application for authorization is
approved, an authorized business firm shall submit a written statement to
both the sponsor and the county assessor attesting to the firm’s
continued intent to complete the proposed investment and seek the
enterprise zone exemption. The statement may include significant changes
to the descriptions and estimates of anticipated qualified property or
employment. If the firm is subject to a compensation requirement under
ORS 285C.160 (3)(a)(A), the statement shall acknowledge that the
applicable county average annual wage in the agreement is updated to
equal the level that is current with the statement.

(b) Every two years after the submission of a statement described
in paragraph (a) of this subsection, the firm shall submit another such
statement. The statement must be submitted after January 1, but on or
before April 1 of that year.

(2) If the firm fails to submit a statement required under
subsection (1) of this section, the authorization of the firm shall be
considered inactive. An inactive authorized business firm may claim the
exemption under ORS 285C.175 only as provided under subsection (3) of
this section.

(3)(a) An inactive authorized business firm may file an exemption
claim under ORS 285C.220 only if the claim includes a filing fee equal to
the greater of $200 or one-tenth of one percent of the real market value
of the qualified property listed in the property schedule that is filed
with the claim.

(b) The filing fee required under this subsection is in addition to
and not in lieu of any other required filing fee.

(c) An exemption under ORS 285C.175 may not be granted if the
filing fee does not accompany the claim.

(d) The real market value of the property used to determine the
filing fee under this subsection may be appealed in the same time and
manner as other determinations of value made by the assessor are appealed.

(e) Any filing fee collected under this subsection shall be
deposited to the county general fund.

(4) If an inactive authorized business firm is subject to a
compensation requirement under ORS 285C.160 (3)(a)(A) and files a claim
for exemption under ORS 285C.220 in the manner prescribed in subsection
(3) of this section, notwithstanding the terms of the agreement executed
under ORS 285C.160, the applicable county average annual wage shall be
updated to equal the level that is current with the date of the filing of
the claim.

(5) This section applies only until the enterprise zone is
terminated. Following zone termination, ORS 285C.245 applies. [2003 c.662
§34a](Exemptions) (1) Property shall be
exempt from ad valorem property taxation under this section if:

(a) The property is located in an enterprise zone;

(b) The property is owned or leased by an authorized business firm
or the business firm is contractually obligated to own or lease the
property upon the property’s being placed in service;

(c) The property is or, upon completion of the construction,
addition, modification or installation of the property, will be qualified
property;

(d) The authorization of the business firm remains active under ORS
285C.140 or 285C.165;

(e) The property has not been subject to exemption under ORS
307.330 at the location;

(f) The property is not and will not be centrally assessed under
ORS 308.505 to 308.665;

(g) The property is not to be operated as all or a part of a hotel,
motel or destination resort; and

(h) There is no known reason to conclude that the property or the
firm will not satisfy any applicable requirements for the property to be
exempt under ORS 285C.175 upon being placed in service.

(2) Property may be exempt under this section for no more than two
tax years, which must be consecutive.

(3) In determining whether property is exempt under this section,
the county assessor:

(a) Shall adhere to the same procedures as apply under ORS 285C.175
(6) and (7); and

(b) May require the submission of additional evidence by the
authorized business firm or zone sponsor showing that the property
qualifies for exemption under this section. If required, the additional
evidence must be submitted on or before April 1 of the assessment year.

(4) The exemption under this section does not depend on the
property or the authorized business firm receiving the exemption under
ORS 285C.175 or satisfying requirements applicable to the exemption under
ORS 285C.175.

(5) A year in which property is exempt under this section shall be
considered a year in which the property is exempt under ORS 307.330 for
purposes of determining the maximum number of years for which the
property may be exempt under this section or ORS 307.330. [2003 c.662
§34b] (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:

(A) Designation of the zone; or

(B) Approval of a boundary change for the zone 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:

(A) Designation of the zone; or

(B) Approval of a boundary change for the zone 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).” [Formerly 285B.698](Qualified Property) (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 the enterprise zone in which the property is located is a
zone approved for electronic commerce designation under ORS 285C.095.

(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. [Formerly 285B.713](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. [2003 c.662 §37](1) Notwithstanding ORS 285C.180
(1)(c), an item of reconditioned, refurbished, retrofitted or upgraded
real property machinery or equipment that is owned or leased by an
authorized business firm is qualified property under ORS 285C.180 if:

(a) The real property machinery or equipment is idle:

(A) At the time of application for authorization; and

(B) For a period of at least 18 consecutive months before or after
the time of application for authorization but preceding the first
assessment year of the exemption;

(b) Prior to the period of idleness, the property was in use within
the enterprise zone or elsewhere in the county for at least 12
consecutive months;

(c) The reconditioning, refurbishing, retrofitting or upgrading of
the property costs at least $50,000 and is completed in the year
immediately preceding the first assessment year in which the property is
exempt under ORS 285C.175; and

(d) The business firm applies for authorization before
reconditioning, refurbishment, retrofitting or upgrading commences.

(2) The reconditioning, refurbishing, retrofitting or upgrading of
an item of real property machinery or equipment described in subsection
(1) of this section is a modification and the extent of the exemption
under ORS 285C.175 shall be determined as provided in ORS 285C.175
(3)(b)(B).

(3) ORS 285C.175 (4)(a) to (c) does not apply to qualified property
described in subsection (1) of this section. [Formerly 285B.714]Notwithstanding ORS
285C.190, if an authorized business firm files a claim for exemption
under ORS 285C.175 prior to April 1, 2004, at the option of the business
firm, all of the following apply in lieu of ORS 285C.190:

(1) If the firm completes the reconditioning, refurbishing,
retrofitting or upgrading of real property machinery or equipment that is
described in ORS 285C.190 (1), the reconditioned, refurbished,
retrofitted or upgraded real property machinery or equipment is qualified
property under ORS 285B.713 (2001 Edition) and potentially subject to
enterprise zone tax exemption for all of the property’s value if the
following requirements are satisfied:

(a) Prior to the period of idleness, the property was in use within
the enterprise zone for at least 12 consecutive months;

(b) The reconditioning, refurbishing, retrofitting or upgrading of
the property involved an investment of at least $3 million; and

(c) As a result of reconditioning, refurbishing, retrofitting or
upgrading the property, the value of the property is at least $25 million
more than the assessed value for the tax year prior to the first tax year
of the enterprise zone tax exemption.

(2) The reconditioning, refurbishing, retrofitting or upgrading of
real property machinery or equipment described in subsection (1) of this
section is a modification of property for purposes of ORS 285C.050 to
285C.250.

(3) ORS 285C.175 (4)(a) to (c) does not apply to qualified property
described in subsection (1) of this section.

(4) ORS 285C.200 (1)(c) does not apply to a business firm applying
for or claiming an enterprise zone tax exemption for qualified property
described in subsection (1) of this section if the provisions of ORS
285C.155 for sponsor approval by resolution of the local governing body
or bodies are satisfied. [2003 c.662 §38a](Firm and Employment Qualifications) (1) The qualified
property of an authorized business firm may be exempt from property
taxation under ORS 285C.175 only if the firm meets the following
qualifications:

(a) The firm is an eligible business firm engaged in eligible
business operations under ORS 285C.135 that are located inside the
enterprise zone;

(b) The firm owns or leases qualified property that is located
inside the enterprise zone;

(c) The employment of the firm, no later than the date the
exemption is claimed under ORS 285C.220 or April 1 following the year in
which the investment in qualified property is made, whichever is earlier,
is not less than the greater of:

(A) 110 percent of the annual average employment of the firm; or

(B) The annual average employment of the firm plus one employee;

(d) The firm does not diminish employment outside the enterprise
zone as described in subsections (4) and (5) of this section;

(e) The firm does not substantially curtail operations within the
enterprise zone as described in ORS 285C.210; and

(f) The firm complies in all material respects with local, Oregon
and federal laws applicable to the firm’s operations inside the
enterprise zone since the application for authorization and throughout
the period of exemption, as prescribed by rule.

(2) Notwithstanding subsection (1)(c) or (e) of this section, an
eligible business firm may meet the qualifications of this section if the
firm has satisfied the following requirements:

(a) The firm is authorized subject to ORS 285C.155 and the firm
satisfies those requirements; and

(b)(A) The firm completes an investment of $25 million or more in
qualified property; or

(B) The firm fulfills the requirements of ORS 285C.205 and the
employment of the firm does not decrease below the annual average
employment of the firm.

(3) An authorized business firm that engages in both eligible and
ineligible operations in an enterprise zone and is an eligible business
firm because of ORS 285C.135 (3) meets the qualifications of this section
if:

(a) The eligible operations of the firm under ORS 285C.135 meet the
qualifications of this section; and

(b) The employees of the firm work a majority of their time in
eligible operations within the enterprise zone.

(4) A business firm does not meet the qualifications of this
section if the firm or any other firm under common control closes or
permanently curtails operations in another part of the state more than 30
miles from the nearest boundary of the enterprise zone in which the firm
seeks a property tax exemption. This subsection applies to the transfer
of any of the business firm’s operations to an enterprise zone from
another part of the state, if the closure or permanent curtailment in the
other part of the state diminished employment in the county and more
local labor markets after authorization and on or before December 31 of
the first tax year for which any qualified property of the firm in that
zone would otherwise be exempt under ORS 285C.175.

(5) An authorized business firm that moves any of its employees
from a site or sites within 30 miles from the nearest boundary of the
enterprise zone after authorization may meet the qualifications under
this section if the employment of the firm has been increased within the
zone and at the site or sites from which the employees were transferred,
no later than April 1 preceding the first tax year for which qualified
property of the firm is exempt under ORS 285C.175, to not less than 110
percent of the annual average employment of the firm within the zone and
the site or sites from which the employees were transferred, calculated
over the 12 months preceding the date of application for authorization.

(6) For purposes of subsection (1)(f) of this section, the Economic
and Community Development Department shall adopt rules that define the
effect of noncompliance on an eligible business firm’s continuing
exemption in an enterprise zone and that indicate what is necessary to
establish the noncompliance in terms of materiality of the relevant
violation, the finality of applicable legal or regulatory proceedings and
judgments involving the firm, the failure by the firm to perform or
submit to remedial or curative actions and similar factors.

(7) As used in this section:

(a) “Annual average employment of the firm” means the average
employment of the firm, calculated over the 12 months preceding the date
of application for authorization.

(b) Except as provided in subsection (5) of this section,
“employment of the firm” means:

(A) The number of employees working for the firm a majority of
their time in eligible operations at locations within the enterprise
zone; or

(B) In the case of a firm described in ORS 285C.135 (5)(b), the
number of employees working a majority of their time at the facility in
the enterprise zone for which authorization was obtained. [Formerly
285B.704]Note: Sections 2 to 4, chapter 432, Oregon Laws 2003, provide:

Sec. 2. (1) Notwithstanding ORS 285B.704 (1)(c) or (e) or (2)
, an eligible business firm is
a qualified business firm if:

(a) The firm completes an investment of $20 million or more in
qualified property on or before December 31 preceding the first
is sought;

(b) The zone sponsor approves the extension of property tax
benefits to the firm; and

(c) The firm was precertified on or after January 1, 2000, and
before January 1, 2001.

(2) The approval of the zone sponsor to extend property tax
benefits to the firm shall be documented by resolution of the governing
body of the sponsor. The resolution may:

(a) Modify or waive minimum employment requirements specified in a
prior resolution adopted by the sponsor under ORS 285B.704 (2); and

(b) Specify application to past, current or future tax years.

(3) A resolution described in subsection (2) of this section must
be adopted by the governing body of the zone sponsor on or before June
30, 2004.

(4) An eligible business firm that satisfies the requirements of
subsection (1) of this section shall be deemed to satisfy the
requirements of ORS 285B.704.

(5) Upon satisfying the requirements of subsection (1) of this
section, the qualified property of the business firm shall be exempt from
tax for the years specified in the resolution of the zone sponsor and in
which the qualified property of the firm meets the requirements for
exemption under ORS 285B.698. [2003 c.432 §2; 2003 c.662 §39a]

Sec. 3. (1) A qualified business firm described in section 2 of
this 2003 Act that has received the approval of the zone sponsor under
section 2 (1)(b) of this 2003 Act may apply in writing to the county
assessor for the refund of any property taxes imposed on the qualified
property described in section 2 (1)(a) of this 2003 Act for the tax year
beginning July 1, 2002, and any related interest or penalties, that have
been paid by the firm.

(2) Upon receipt of the application for refund, the county assessor
shall determine the amount to be refunded and shall certify that amount
to the county treasurer.

(3) The county treasurer shall refund the amount certified, out of
the refund reserve account established under ORS 311.807 or out of the
unsegregated tax collections account described in ORS 311.385, to the
business firm. Interest may not be paid on the refund.

(4) If property taxes, interest or penalties described in
subsection (1) of this section have not been paid, such amounts shall be
abated. [2003 c.432 §3]

Sec. 4. Sections 2 and 3 of this 2003 Act are repealed December 31,
The requirements of ORS 285C.200
(2)(b)(B) are met if the qualified business firm does all of the
following:

(1) The firm demonstrates at least a 10 percent increase in
productivity no later than 18 months following January 1 of the first
assessment year for which an exemption under ORS 285C.175 is claimed.
Unless further specified by the sponsor of the enterprise zone through
the resolution adopted under ORS 285C.155:

(a) The increase must be in business operations of the firm that
are using qualified property receiving the exemption;

(b) Productivity is measured by dividing physical units or quantity
of output by the number of labor hours engaged in the operations that
produced the physical units or quantity of output; and

(c) The base level of productivity shall be established over a
minimum 12-month period preceding the date on which the qualified
property is placed in service.

(2) The firm maintains or exceeds the 10 percent increase in
productivity under subsection (1) of this section as an annual average
rate for each subsequent assessment year during the remainder of the
exemption period.

(3) On or before April 1 of each of the first three assessment
years for which an exemption is claimed, the firm deposits into an
account established by the sponsor an amount equal to 25 percent of the
estimated tax savings arising from the exemption for that year. The
sponsor may adopt additional specifications or requirements applicable to
this subsection in the resolution the sponsor adopts under ORS 285C.155.
Consistent with this subsection and any additional specifications or
requirements adopted by the sponsor:

(a) For up to 30 months following the relevant April 1 date for
which a deposit is made, the firm may draw from the account amounts equal
to any expense incurred for training or retraining employees to promote
or facilitate productivity increases under this section, except that the
total amount withdrawn from the account for that deposit may not exceed
$3,500 per trained employee;

(b) Any amount attributable to the deposit that remains in the
account after the 30-month period in which firm withdrawals may be made
under paragraph (a) of this subsection shall be transferred to a special
fund for use by local publicly funded job training providers; and

(c) No more than 18 months after the deposit, the estimated tax
savings on which the deposit was based shall be reconciled with the
actual tax savings arising from the exemption. The reconciliation shall
be accomplished by the firm immediately making a further deposit into the
account to cover any shortfall or by being reimbursed from the account
for any surplus. A deposit or reimbursement made pursuant to this
paragraph does not affect withdrawals or transfers that occur as a result
of paragraph (a) or (b) of this subsection. [2003 c.662 §33a] (1) For
purposes of ORS 285C.175, 285C.200 and 285C.240, operations of a business
firm are substantially curtailed when:

(a) The number of employees of the firm within the enterprise zone
is reduced by more than 85 percent from the highest number of employees
of the firm within the enterprise zone;

(b) The number of employees of a firm within the enterprise zone
has been reduced by more than 50 percent from the highest number of
employees of the firm within the enterprise zone for a period of time
that is equal to or more than nine months; or

(c) The annual average number of employees within the enterprise
zone during the first assessment year for which the exemption under ORS
285C.175 is granted, or any subsequent year in which an exemption is
claimed, is reduced below the greater of:

(A) The annual average number of employees of the business firm
within the enterprise zone, averaged over the 12 months preceding the
date of the application for authorization, plus one employee; or

(B) 110 percent of the annual average number of employees of the
firm within the enterprise zone, averaged over the 12 months preceding
the date of the application for authorization.

(2) For the purposes of this section:

(a) The number of employees of a firm within the enterprise zone is
the employment of the firm, as defined in ORS 285C.200, on the earlier of
the date a claim for exemption is filed under ORS 285C.220 or April 1, of
each assessment year for which an exemption under ORS 285C.175 is
claimed, and for the year immediately following the last assessment year
for which an exemption is claimed.

(b) Except as specified in subsection (1)(c) of this section, the
annual average number of employees of the firm is the number of firm
employees within the enterprise zone averaged over each assessment year
in which an exemption under ORS 285C.175 is allowed, using employment
figures for no fewer than four equivalent periods during the year.

(c) For the first assessment year for which an authorized business
firm that qualifies under ORS 285C.200 (5) claims an exemption under ORS
285C.175, substantial curtailment under subsection (1)(a) or (c) of this
section shall be determined by:

(A) Combining the number of employees of the firm within the
enterprise zone and the number of employees at all other sites of the
firm within the area described in ORS 285C.200 (5); and

(B) Combining the annual average number of employees of the firm
within the enterprise zone with the annual average number of employees at
any other site of the firm from which employees were transferred into the
enterprise zone. [2003 c.662 §40] (1) The qualified
property of an authorized business firm may be exempt from property tax
under ORS 285C.175 only if the firm enters into a first-source hiring
agreement for the period of property tax exemption. The agreement must be
executed prior to the assessment date for the first tax year for which
qualified property of the firm is exempt under ORS 285C.175 and must
expire no sooner than December 31 of the final year of the exemption.

(2)(a) If a firm has not entered into a first-source hiring
agreement when qualified property of the firm is first placed in service,
as of April 1 preceding the first tax year for which the authorized
business firm claims an exemption for qualified property under ORS
285C.175, the sponsor shall inform the county assessor that an agreement
under this section has not been executed.

(b) A publicly funded job training provider having knowledge of the
date when qualified property of the firm is first placed in service may
also inform the county assessor that an agreement under this section has
not been executed.

(3) In accordance with rules adopted by the Economic and Community
Development Department, the Director of the Economic and Community
Development Department may waive the requirements of subsection (1) of
this section for an authorized business firm. The rules adopted by the
department shall provide for a waiver under this subsection when the
director finds that:

(a) The business firm is unable to employ persons referred under
the agreement; or

(b) The waiver would further the goals and purposes of applicable
state policies. [Formerly 285B.710](Exemption Claim and Verification Procedures) (1)(a)
After January 1 and on or before April 1 of the assessment year
immediately following the year in which qualified property in an
enterprise zone is placed in service, and of each assessment year
thereafter for which an exemption is sought, an authorized business firm
may file a claim for the exemption allowed under ORS 285C.175.

(b) The claim shall be made by completing a form prescribed by the
Department of Revenue and by filing the form with the county assessor.
The firm shall furnish a copy of the claim to the sponsor.

(c) The firm shall also file a form described in this subsection
after the final assessment year of the exemption period.

(2) A claim filed under this section shall contain all of the
following:

(a) A statement that:

(A) The business firm satisfies the requirements of ORS 285C.200 as
a qualified business firm; and

(B) The business firm has been authorized by the enterprise zone
sponsor and the county assessor and has satisfied any commitments made in
the firm’s application for authorization or made as a condition of
authorization. The date the application for authorization was submitted
and approved shall be set forth in the statement.

(b) A statement confirming the continued eligibility of the firm
under ORS 285C.135 or explaining any change in eligibility.

(c) A schedule setting forth the following employment data:

(A) The number of employees of the firm within the enterprise zone
on the date the claim is filed under this section or April 1, whichever
is earlier;

(B) The annual average number of employees of the firm within the
enterprise zone during the preceding assessment year; and

(C) The annual average number of employees of the firm within the
enterprise zone, averaged over the 12-month period preceding the date of
the application for authorization.

(d) The annual average compensation for the previous assessment
year of new employees hired by the firm within the enterprise zone, but
only if:

(A) The firm is subject to annual compensation requirements under
ORS 285C.160; and

(B) The claim is filed for a year that is not the first year for
which a claim is filed under this section.

(e) Any attachments required under ORS 285C.225.

(f) For any qualified property listed on a property schedule
included in a claim filed for a previous assessment year and that
continues to be exempt for the current assessment year:

(A) Confirmation that there has been no change in the ownership,
lease, location, disposition, operation, use or occupancy of the
property; or

(B) In the case of a change in the ownership, lease, location,
disposition, operation, use or occupancy of the property, an explanation
of the change.

(g) Any other information required by the Department of Revenue.

(3) The business firm shall be prepared to verify any information
set forth in a claim filed under this section. The statement made
pursuant to subsection (2)(a) of this section shall be prima facie
evidence that the firm is a qualified business firm.

(4) If the assessor determines the property for which exemption is
sought satisfies the requirements of ORS 285C.175, the assessor shall
grant the exemption for the tax year beginning July 1.

(5) The assessor shall provide copies of each claim for exemption
filed under this section as directed by the Department of Revenue.

(6) If a claim for exemption relates to principal or secondary
industrial property as defined by ORS 306.126 and is filed with the
Department of Revenue within the time required by subsection (1) of this
section, the claim shall be deemed timely filed with the assessor. The
Department of Revenue shall send a copy of the filed claim to the
assessor.

(7)(a) Notwithstanding subsection (1) of this section, a claim may
be filed under this section on or before June 1 of the assessment year if:

(A) The claim includes qualified property that, pursuant to ORS
285C.225, is required to be listed on a property schedule included with
the claim form because the year for which the claim is being filed is the
first year for which the property is exempt under ORS 285C.175; and

(B) The claim is accompanied by a late filing fee equal to the
greater of $200 or one-tenth of one percent of the real market value of
the qualified property listed on the property schedule accompanying the
claim.

(b) An exemption may not be granted pursuant to a claim filed under
this subsection if the claim is not accompanied by the late filing fee.

(8)(a) Notwithstanding subsection (1) of this section, a claim may
be filed under this section on or before August 31 of the assessment year
if:

(A) The claim does not include qualified property that, pursuant to
ORS 285C.225, is required to be listed on a property schedule included
with the claim; and

(B) The claim is accompanied by a late filing fee equal to the
greater of:

(i) $200; or

(ii) One-fiftieth of one percent of the real market value of the
qualified property of the business firm multiplied by the number of
30-day periods from April 1 of the assessment year until the date the
claim is filed. A period of less than 30 days shall constitute a 30-day
period for purposes of this subparagraph.

(b) An exemption may not be granted pursuant to a claim filed under
this subsection if the claim is not accompanied by the late filing fee.

(9) The value of the property used to determine the late filing
fees under this section is appealable in the same manner as other
determinations of value by the county assessor are appealable.

(10)(a) Notwithstanding subsection (1) of this section, a claim may
be filed under this section on or before April 1 following the assessment
year after the year in which the qualified property was placed in service.

(b) If a claim filed under this subsection is approved by the
county assessor, the qualified property shall be exempt from property
taxation only for those tax years that begin after the date the claim was
filed under this subsection and for which the property otherwise
qualifies for exemption under ORS 285C.050 to 285C.250.

(11) Any filing fee collected under this section shall be deposited
to the county general fund.

(12) A claim may be filed under this section as of the dates
prescribed in subsections (7), (8) and (10) of this section, regardless
of any grounds for hardship under ORS 307.475. [Formerly 285B.722] (1) An
exemption claim filed under ORS 285C.220 must, when applicable, include a
sponsor’s addendum setting forth any information required by the sponsor
of the enterprise zone pursuant to ORS 285C.140 (5), 285C.150, 285C.155
or 285C.160.

(2) For the first tax year for which qualified property is exempt
under ORS 285C.175, the claim filed under ORS 285C.220 must include a
property schedule listing the qualified property.

(3)(a) The business firm is required to include the property
schedule described in subsection (2) of this section with a claim filed
under ORS 285C.220 only once for any item of qualified property. The firm
shall include additional property schedules with subsequent claims in
order to claim exemption of additional qualified property that is
pursuant to the same application for authorization.

(b) The firm may not file an additional property schedule to claim
an exemption for additional qualified property for a tax year that is
more than two years after the first tax year for which any qualified
property of the firm was exempt under ORS 285C.175, except pursuant to
another authorization application.

(4) The property schedule shall be set forth on a form prescribed
by the Department of Revenue and shall contain:

(a) A list of all qualified property that satisfies all
requirements for exemption under ORS 285C.175 for the tax year for which
the exemption is being claimed and that has not been exempt under ORS
285C.175 for a previous tax year;

(b) For each item of property described in paragraph (a) of this
subsection, the cost of the property and the date the property was placed
in service;

(c) Any information needed to determine compliance with any
applicable requirements under ORS 285C.180, 285C.185 or 285C.190;

(d) In the case of qualified property that is leased by the
business firm, a signature on the property schedule or other evidence
that the enterprise zone exemption is acknowledged by the owner of the
leased property; and

(e) Any other information required by the Department of Revenue.

(5) The county assessor may allow the business firm to amend the
property schedule to include any other item of qualified property
described in subsection (2) of this section that was not listed on the
original property schedule included in the claim filed for the assessment
year. An amendment to the property schedule may not be made after June 1
of the assessment year. [2003 c.662 §43](1) In granting or denying an exemption under ORS 285C.175, the
county assessor may:

(a) Reasonably rely on information set forth in the exemption claim
filed under ORS 285C.220; and

(b) Request and be given assistance from the sponsor before making
certain determinations, including but not limited to:

(A) Determining if the exemption is being claimed by a qualified
business firm under ORS 285C.200;

(B) Determining the extent to which qualified property is used by
persons other than the qualified business firm or is used for business
activities that may not be conducted in an enterprise zone by an eligible
business firm under ORS 285C.135; or

(C) Determining if the use, leasing or location of qualified
property satisfies applicable requirements under ORS 285C.180, 285C.185
or 285C.190.

(2) The county assessor is not responsible for determining if the
firm has satisfied any requirement established by the sponsor under ORS
285C.140, 285C.150, 285C.155, 285C.160 or 285C.205.

(3) If a business firm fails to timely file an exemption claim
under ORS 285C.220:

(a) The assessor or the sponsor may use the authority granted to
the assessor under ORS 285C.235; or

(b) The assessor may deny the exemption under ORS 285C.175 for the
current tax year or for any future tax year for which the property would
otherwise qualify for exemption under ORS 285C.175.

(4) If the sponsor or the assessor has reason to question the
accuracy or veracity of any information contained in a claim filed under
ORS 285C.220, the sponsor or the assessor may use the authority provided
under ORS 285C.235.

(5) If any information submitted by a business firm under ORS
285C.220 indicates that the firm is no longer in compliance with any
requirements that apply to the firm or the qualified property of the
firm, the information shall be considered notice for purposes of ORS
285C.240.

(6) The county assessor shall make reasonable and timely efforts to
notify an authorized business firm that is seeking or receiving an
exemption under ORS 285C.175 of the filing requirements under ORS
285C.220, but the county assessor and the Department of Revenue are not
under any obligation other than as otherwise provided in ORS 285C.050 to
285C.250 to seek or receive information about the continued entitlement
of property to an exemption under ORS 285C.175.

(7) The sponsor is primarily responsible for assisting a business
firm in timely filing claims under ORS 285C.220. If the sponsor, or a
local zone manager designated by the sponsor, does not receive a copy of
the claim as required under ORS 285C.220 by the time the claim is
required to be filed under ORS 285C.220, the sponsor or manager shall
immediately contact the assessor for taking action under subsection (3)
of this section. [2003 c.662 §44] (1)
The county assessor is at all times authorized to demand reports by
registered or certified mail from owners or lessees of qualified property
concerning the use of the qualified property and the employment status of
the qualified business firm for purposes of ORS 285C.050 to 285C.250. If,
after 60 days’ notice in writing by registered or certified mail, the
owner or lessee fails to comply with this demand, the assessor may
disqualify the property under ORS 285C.240, giving written notice of the
disqualification to the Department of Revenue and the owner or lessee of
the qualified property.

(2) The assessor is under no obligation to verify compliance by a
qualified business firm with requirements imposed on the firm by the
sponsor under ORS 285C.150, 285C.155, 285C.160 or 285C.205.

(3) The sponsor of an enterprise zone may initiate procedures in
order to verify compliance by qualified business firms with requirements
imposed under ORS 285C.050 to 285C.250. The procedures may include
written requests to the assessor by the local zone manager or an
executive official of the sponsor that the assessor exercise authority
under this section for a particular qualified business firm. [2003 c.662
§45](Disqualification From Exemption)(1) The county assessor of
any county in which an enterprise zone is situated or the sponsor shall
be notified in writing by the qualified business firm or by the owner of
the qualified property leased by the qualified business firm not later
than July 1 following the assessment year for which the exemption is
claimed and in which one of the following events occurs:

(a) Property granted exemption from taxation under ORS 285C.175 is
sold, exchanged, transported or otherwise disposed of for use outside the
enterprise zone or for use by an ineligible business firm;

(b) The qualified business firm closes or so reduces eligible
operations that the reduction constitutes a substantial curtailment of
operations under ORS 285C.210, unless a substantial curtailment of
operations is permitted under ORS 285C.200 (2);

(c) The qualified business firm fails to meet any of the
qualifications required under ORS 285C.200;

(d) The qualified business firm fails to meet any condition that
the firm is required to satisfy under ORS 285C.150, 285C.155 or 285C.205
or any term of an agreement entered into with the sponsor under ORS
285C.160 with which the firm had agreed to comply;

(e) The qualified business firm uses the property to conduct
activities in the enterprise zone that are not eligible activities; or

(f) Property of the qualified business firm for which exemption
under ORS 285C.175 is claimed ceases to be qualified property under ORS
285C.180.

(2) If the sponsor receives written notice under subsection (1) of
this section, the sponsor shall immediately send a copy of the notice to
the county assessor of the county in which the enterprise zone is
situated.

(3)(a) When an assessor receives written notice under subsection
(1) or (2) of this section, the assessor shall disqualify the property
for the assessment year following the disqualifying event and 100 percent
of the additional taxes calculated under ORS 285C.175 shall be assessed
against the property for each year for which the property had been
granted exemption under ORS 285C.175.

(b) Notwithstanding paragraph (a) of this subsection, if a
qualified business firm fails to meet any of the requirements of an
agreement entered into by the firm under ORS 285C.160 during the
exemption, but meets all other applicable requirements under ORS 285C.050
to 285C.250 during the first three years of the exemption, the qualified
property of the firm may not be disqualified during the first three years
of exemption for failure to comply with the requirements of the agreement
entered into under ORS 285C.160.

(c) The additional taxes assessed under this subsection shall be
reduced by the amount, if any, paid by the qualified business firm to the
sponsor under subsection (6) of this section for the same property.

(4) If the qualified business firm or owner fails to give the
notice on time or at all as required by subsection (1) of this section,
upon discovering the property no longer qualifies for the exemption due
to a circumstance described in subsection (1) of this section, the
assessor shall:

(a) Disqualify the property from exemption;

(b) Compute the amount of taxes described in subsection (3) of this
section as though notice had been given, and add to that amount an
additional penalty equal to 20 percent of the total amount so computed;
and

(c) Add the property to the assessment and tax roll without the
exemption as if the notice had been given.

(5) The amount determined to be due under subsections (3) and (4)
of this section:

(a) May be paid to the tax collector before completion of the next
general property tax roll pursuant to ORS 311.370; and

(b) Shall be added to the tax extended against the property on the
next general property tax roll to be collected and distributed in the
same manner as the remainder of the property taxes.

(6)(a) Notwithstanding subsections (3) and (5) of this section, if
an assessor or sponsor receives notice from a business firm under
subsection (1)(b), (c) or (d) of this section and the qualified business
firm has not closed its operations, the qualified business firm shall pay
the sponsor an amount equal to the property taxes for the qualified
property in the assessment year for which the exemption is claimed in
lieu of the amounts otherwise due under subsection (3) of this section.

(b) Moneys collected under paragraph (a) of this subsection shall
be used by the sponsor to benefit the residents of the enterprise zone
and for the development of jobs, skills and training for residents of the
enterprise zone and the zone’s immediate vicinity.

(c) This subsection applies only to the first notice given by the
business firm under subsection (1)(b), (c) or (d) of this section.

(d) If the sponsor does not receive the full amount to be paid by
the qualified business firm under paragraph (a) of this subsection, the
assessor shall disqualify the property and impose the entire amount of
additional taxes as prescribed under subsection (3) of this section.

(7) An assessor may not disqualify property under this section for
failure by a qualified business firm or an owner of qualified property
leased by the qualified business firm to notify the assessor or the
enterprise zone sponsor that the qualified business firm does not meet
requirements under ORS 285C.150, 285C.155, 285C.160 or 285C.205, without
having received written communication from the sponsor that demonstrates
that the qualified business firm does not meet the requirements.

(8) Additional taxes collected under this section shall be deemed
to have been imposed in the year to which the additional taxes relate.

(9) If property is disqualified from exemption under this section,
the assessor shall notify the qualified business firm, and the owner of
any qualified property that is leased by the firm, of the
disqualification. The notification shall be made in writing. The assessor
shall provide copies of the disqualification to the sponsor, the
Department of Revenue and the Economic and Community Development
Department. The decision of the assessor to disqualify property under
this section may be appealed to the Oregon Tax Court under ORS 305.404 to
305.560. [Formerly 285B.728]Note: Sections 15 and 16, chapter 704, Oregon Laws 2005, provide:

Sec. 15. (1) Notwithstanding ORS 285C.240 (3) and (5), if a county
assessor or sponsor receives notice from a qualified business firm under
ORS 285C.240 (1)(b), additional taxes calculated under ORS 285C.175 may
not be assessed or collected if:

(a) The closure or reduction in eligible operations is a direct
result of fire that has physically destroyed qualified property and that
was beyond the control of the firm; and

(b) The destruction occurred on or after July 1, 2005, and before
August 1, 2005.

(2) The definitions in ORS 285C.050 apply to this section. [2005
c.704 §15]

Sec. 16. Section 15 of this 2005 Act is repealed January 2, 2008.
(Termination of Enterprise Zone)(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 Economic
and Community Development Department under ORS 285C.080, 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.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 Economic and
Community 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 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. [Formerly 285B.686] (1)
Within a reasonable period of time prior to the termination of enterprise
zones under ORS 285C.245 (2), the Director of the Economic and Community
Development Department shall competitively designate the same number of
enterprise zones effective immediately after termination of the previous
enterprise zones. The determination by the director as to the areas
designated as enterprise zones shall be final.

(2) When an enterprise zone is terminated under ORS 285B.686 (4) to
(6), the director may competitively designate a new enterprise zone. The
sponsor of the enterprise zone terminated under ORS 285C.245 (4) or (5)
is not eligible to apply for a new enterprise zone, except for 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 under subsection (1) of this section.

(4) Any city, county or port may apply to the director for
designation of an enterprise zone in accordance with the criteria set
forth in ORS 285C.065 and 285C.090. In addition, the Economic and
Community 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 enterprise zones 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
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. [Formerly 285B.689; 2005 c.94 §10; 2005 c.704 §12](Sunset Date) (1) Notwithstanding any
other provision of ORS 285C.050 to 285C.250:

(a) An area may not be designated as an enterprise zone after June
30, 2009;

(b) A business firm may not obtain authorization under ORS 285C.140
after June 30, 2009; and

(c) An enterprise zone, except for a reservation enterprise zone,
that is in existence on June 29, 2009, is terminated on June 30, 2009.

(2) Notwithstanding subsection (1) of this section:

(a) A reservation enterprise zone may be designated under ORS
285C.306 after June 30, 2009; and

(b) A business firm may obtain authorization under ORS 285C.140
after June 30, 2009:

(A) If located in a reservation enterprise zone; or

(B) As allowed under ORS 285C.245 (1)(b). [2003 c.662 §49]Note: 285C.255 was enacted into law by the Legislative Assembly but
was not added to or made a part of ORS chapter 285C or any series therein
by legislative action. See Preface to Oregon Revised Statutes for further
explanation.RESERVATION ENTERPRISE ZONES As used in ORS
285C.300 to 285C.320:

(1) “Eligible business” means a business that:

(a) Is engaged within a reservation enterprise zone in the
manufacture or provision of goods, products or services to other
businesses or to the general public, through activities including, but
not limited to, manufacturing, assembly, fabrication, processing,
shipping, storage, retail sales or services, child care, housing, retail
food service, health care, tourism, entertainment, financial services,
professional services, energy development, construction or similar
activities; and

(b) Occupies or owns a new business facility within a reservation
enterprise zone.

(2) “New business facility”:

(a) Means a physical asset within a reservation enterprise zone
that satisfies the following requirements:

(A) The facility is used by a business in the operation of a
revenue-producing enterprise, except that the revenue-producing
enterprise must consist of activity other than leasing the facility to
another person; and

(B) The facility is acquired by or leased to a business on or after
January 1, 2002, including a facility, the title or possession of which
is transferred to the business on or after January 1, 2002, or a
facility, the construction, erection or installation of which is
completed on or after January 1, 2002;

(b) Subject to paragraph (c) of this subsection, includes a
facility acquired or leased from a person that used the facility in a
revenue-producing enterprise within the boundaries of the same Indian
reservation immediately prior to the transfer of title or possession of
the facility to the business; and

(c) Does not include:

(A) A facility that is used in a revenue-producing enterprise that
is the same or substantially identical to the revenue-producing
enterprise in which the facility was previously used within the
boundaries of the same Indian reservation; or

(B) Any property that merely replaces existing property and that
does not expand the capacity of the revenue-producing enterprise in which
the facility is to be used.

(3) “Reservation enterprise zone” means a zone designated by ORS
285C.306.

(4) “Tribal government” means the governing body of an Indian
tribe, if the governing body has the authority to levy, impose and
collect taxes within the boundaries of the reservation of the tribe.

(5) “Tribal tax” means any specific tax that is or may be levied or
imposed by a tribal government upon a business and that is measured with
reference to a specific level or quantity of that business’s income,
operations, use or ownership of property. “Tribal tax” includes, but is
not limited to, an income or excise tax, an ad valorem property tax, a
gross receipts tax or a sales and use tax. [Formerly 285B.766] The Legislative Assembly finds that
the welfare of the residents of the rural Indian reservations of this
state is acutely dependent upon the growth, development and expansion of
employment and business opportunities within reservation boundaries.
Geographic and other obstacles have made it difficult for rural Indian
reservations to attract and retain private business investment. The tax
systems of this state, by subjecting businesses located within
reservation boundaries to state taxation in addition to any taxation
imposed by the reservations themselves, has heightened the economic
isolation of this state’s rural reservations and impeded the efforts of
Indian tribes to develop sufficient tax bases to fund essential
governmental services on their reservations. The Legislative Assembly
further finds that it is in the best interests of this state to create
equality that will enable rural Indian reservations to attract and retain
private business investment. The Legislative Assembly declares that it is
the purpose of ORS 285C.300 to 285C.320 to remove the tax disincentives
that currently inhibit private business and industry from locating and
operating enterprises within the boundaries of the rural Indian
reservations of this state. [Formerly 285B.767] (1) Trust land of an Indian
tribe that meets all of the following requirements is designated as a
reservation enterprise zone for the purposes of ORS 285C.300 to 285C.320:

(a) The Indian tribe is a federally recognized Indian tribe;

(b) The reservation of the Indian tribe is entirely within the
boundaries of this state;

(c) The land for which zone designation is sought is land held in
trust by the United States for the benefit of the Indian tribe and is
located entirely within the boundaries of the reservation;

(d) Fifty percent or more of the households within the boundaries
of the reservation have incomes below 80 percent of the median income of
this state, as defined by the most recent federal decennial census; and

(e) The unemployment rate within the reservation for all enrolled
members of the tribe is at least 2.0 percentage points greater than the
comparable unemployment rate for this 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 Center for Population Research and Census or a special
study conducted under a contract with a regional academic institution.

(2) At the request of a tribal government, the Economic and
Community Development Department shall determine if trust land is
designated as a reservation enterprise zone under this section. [Formerly
285B.770; 2005 c.704 §3](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, is allowed to an eligible business operating a new
business facility in a reservation enterprise zone.

(2) The amount of the credit allowed to the eligible business shall
equal:

(a) The amount of tribal property tax imposed on a new business
facility of an eligible business that is paid or incurred by the eligible
business during the income or corporate excise tax year of the eligible
business; or

(b) If the eligible business has not previously conducted business
operations within the reservation enterprise zone, the amount of tribal
tax paid or incurred by the eligible business during the income or
corporate excise tax year of the eligible business.

(3) The credit allowed to the eligible business may not exceed the
tax liability of the eligible business for the tax year and may not be
carried over to another tax year.

(4) A credit is allowable under this section only to the extent the
tribal tax on which the credit is based is imposed on businesses not
owned by Indians on a uniform basis within the territory over which the
tribal government has the authority to levy, impose and collect taxes.

(5) The credit shall be claimed on a form prescribed by the
Department of Revenue containing the information required by the
department, including information sufficient for the department to
determine that the taxpayer is an eligible business and that the facility
operated by the business is a new business facility.

(6) An eligible nonresident individual shall be allowed the credit
computed in the same manner and subject to the same limitations as the
credit allowed a resident by subsection (1) of this section. However, the
credit shall be prorated using the proportion provided in ORS 316.117.

(7) 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 by this
section shall be prorated or computed in a manner consistent with ORS
314.085.

(8) If a change in the status of a taxpayer from resident to
nonresident or from nonresident to resident occurs, the credit allowed by
this section shall be determined in a manner consistent with ORS 316.117.

(9) An eligible business claiming a credit under this section shall
maintain records sufficient to authenticate the allowance of the credit
claimed under this section and shall furnish the department with these
records upon the request of the department.

(10) A credit claimed by an eligible business may not be disallowed
solely because the eligible business conducts business operations both
within and outside of a reservation enterprise zone. [Formerly 285B.773] (1) A
reservation enterprise zone shall be considered to be a rural enterprise
zone for purposes of ORS 285C.050 to 285C.250. The tribal government of
the reservation shall be considered to be the sponsor of the reservation
enterprise zone.

(2) Reservation enterprise zones may not be taken into account in
determining the number of rural enterprise zones allowable in this state
under ORS 285C.050 to 285C.250, and are not subject to numerical
limitation under ORS 285C.050 to 285C.250.

(3) In order for property within a reservation enterprise zone to
be exempt under ORS 285C.175, the business firm and property must meet
all of the requirements applicable to business firms and property in any
rural enterprise zone.

(4) As used in this section, “business firm” has the meaning given
that term in ORS 285C.050. [Formerly 285B.776; 2005 c.94 §11]RURAL RENEWABLE ENERGY DEVELOPMENT ZONES As used in ORS
285C.350 to 285C.370:

(1) “Applicant” means the city, county or group of counties
applying for designation of territory as a rural renewable energy
development zone.

(2) “Renewable energy” means electricity that is generated through
use of a renewable energy resource, as defined in ORS 469.185.

(3) “Rural county” means a sparsely populated county, as defined in
ORS 285C.050. [2003 c.662 §69; 2005 c.94 §12](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 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 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. [2003 c.662 §70; 2005 c.595 §4] (1) Following designation
of a rural renewable energy development zone, an eligible business firm
seeking an exemption under ORS 285C.362 may apply for authorization under
ORS 285C.140.

(2) The firm shall include a written description of the locations,
extent and expected real market value of the proposed renewable energy
development project.

(3) The firm shall be authorized if the firm would otherwise be
authorized under ORS 285C.140, but the authorization is limited to
investments in the renewable energy development project described in the
application submitted by the firm. [2003 c.662 §71] Property shall qualify for exemption
under ORS 285C.362 if the property meets all of the following
requirements:

(1) The property constitutes all or a part of a facility used to
generate renewable energy or is used to support or maintain a renewable
energy facility;

(2) The property is newly constructed or installed in the rural
renewable energy development zone; and

(3) The property meets all other requirements for qualification
under ORS 285C.180. [2003 c.662 §72] (1) Property of an
authorized business firm is exempt from ad valorem property taxation if:

(a) The property is qualified property under ORS 285C.359;

(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) Property described in subsection (1) of this section is
exempt from ad valorem property taxation only to the extent the real
market value of the property, when added to the real market value of all
other property in the rural renewable energy development zone that has
received an exemption under this section, is less than the exemption
authorization level established for the zone under ORS 285C.353 (4).

(b) For purposes of this subsection, real market value shall be
determined as of the assessment date for the first year that property is
exempt under this section.

(3) 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, operated to generate renewable energy or to support or
maintain renewable energy facilities, and located in the rural renewable
energy development zone.

(4)(a) 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 subsection (3) of this section if authorized by a
written agreement entered into by the firm and the sponsor under ORS
285C.160.

(b) Notwithstanding ORS 285C.160, a contiguous county that applied
for a rural renewable energy development zone designation may elect to
not participate in a two-year extension of the exemption under this
subsection. The election shall be made by resolution of the governing
body of the contiguous county on or before execution of the written
agreement between the firm and the sponsor under ORS 285C.160. [2003
c.662 §73] Except where
inconsistent with the provisions of ORS 285C.350 to 285C.370, the
provisions of ORS 285C.050 to 285C.250 apply to rural renewable energy
development zones as if rural renewable energy development zones were
enterprise zones, and to the exemption or disqualification from exemption
of property located in rural renewable energy development zones. [2003
c.662 §74] The Economic and Community Development Department
may adopt rules for implementing and administering ORS 285C.350 to
285C.370, including rules that define terms. [2003 c.662 §75]LONG TERM TAX INCENTIVES FOR RURAL ENTERPRISE ZONES As used in ORS
285C.400 to 285C.420:

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

(2) “Certified business firm” means a business firm that has been
certified under ORS 285C.403.

(3) “County with chronically low income or chronic unemployment”
means, based on the most recently revised annual average unemployment
rate or annual per capita income levels available, a county in which:

(a) The median ratio of the per capita personal income of the
county to the equivalent annual personal income figure of the entire
United States for each year, as reported by the Bureau of Economic
Analysis of the United States Department of Commerce, is equal to or less
than 0.75 over the last 10 years;

(b) The median ratio of the unemployment rate of the county to the
equivalent rate of the entire United States for each year is at least 1.3
over the last 20 years or over the last 10 years; or

(c) The population of the county has experienced a negative net
migration, irrespective of natural population change, since the most
recent federal decennial census occurring three or more years prior to
the current estimated population figure for the county, based on
available population statistics.

(4) “Facility” means the land, real property improvements and
personal property that are used:

(a) At a location in a rural enterprise zone that is identified in
the application for certification under ORS 285C.403; and

(b) In those business operations of the business firm that are the
subject of the application for certification under ORS 285C.403.

(5) “Rural enterprise zone” has the meaning given that term in ORS
285C.050. [Formerly 285B.781; 2005 c.94 §13](1) Any business firm proposing to apply for the tax exemption
provided under ORS 285C.409 shall, before the commencement of
construction or installation of property or improvements at a location in
a rural enterprise zone and before the hiring of employees, apply for
certification with the sponsor of the zone and with the county assessor
of the county or counties in which the zone is located. The application
shall be made on a form prescribed by the Department of Revenue.

(2) The application shall contain the following information:

(a) A description of the firm’s proposed business operations and
facility in the rural enterprise zone;

(b) A description and estimated cost or value of the property or
improvements to be constructed or installed at the facility;

(c) An estimate of the number of employees at the facility that
will be hired by the firm;

(d) A commitment to meet the applicable requirements of ORS
285C.412;

(e) A commitment to satisfy all additional conditions agreed to
pursuant to the written agreement between the rural enterprise zone
sponsor and the business firm under subsection (3)(c) of this section; and

(f) Any other information considered necessary by the Department of
Revenue.

(3) The sponsor and the county assessor shall certify the business
firm by approving the application if the sponsor and the county assessor
determine that all of the following requirements have been met:

(a) The governing body of the county and city in which the facility
is located has adopted a resolution approving the property tax exemption
for the facility.

(b) The business firm has committed to meet the applicable
requirements of ORS 285C.412.

(c) The business firm has entered into a written agreement with the
sponsor of the rural enterprise zone that may include any additional
requirements that the sponsor may reasonably request, including but not
limited to contributions for local services or infrastructure benefiting
the facility. The written agreement shall state the number of consecutive
tax years for which the facility, following commencement of operations,
is to be exempt from property tax under ORS 285C.409. The agreement may
not provide for a period of exemption that is less than seven consecutive
tax years or more than 15 consecutive tax years. If the agreement is
silent on the number of tax years for which the facility is to be exempt
following placement in service, the exemption shall be for seven
consecutive tax years.

(d) The facility is located in a county with chronically low income
or chronic unemployment, based on the most recently revised annual data
available when the written agreement with the zone sponsor is executed.

(4) The approval of an application by both the sponsor and the
county assessor under subsection (3) of this section shall be prima facie
evidence that the business firm will qualify for the property tax
exemption under ORS 285C.409.

(5) The sponsor and the county assessor shall provide copies of an
approved application to the applicant, the Department of Revenue and the
Economic and Community Development Department.

(6) If the sponsor or the county assessor fails or refuses to
certify the business firm, the business firm may appeal to the Oregon Tax
Court under ORS 305.404 to 305.560. The business firm shall provide
copies of the firm’s appeal to the sponsor, the county assessor, the
Economic and Community Development Department and the Department of
Revenue. [Formerly 285B.783; 2005 c.94 §14] 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 rural
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 June 30, 2009. [Formerly 285B.796; 2005 c.94 §15; 2005 c.667
§3] (1) A
facility of a certified business firm is exempt from ad valorem property
taxation:

(a) For the first tax year following the calendar year in which the
business firm is certified under ORS 285C.403 or after which construction
or reconstruction of the facility commences, whichever event occurs later;

(b) For each subsequent tax year in which the facility is not yet
in service as of the assessment date; and

(c) For a period of at least seven consecutive tax years but not
more than 15 consecutive tax years, as provided in the written agreement
between the business firm and the rural enterprise zone sponsor under ORS
285C.403 (3)(c), if the facility satisfies the requirements of ORS
285C.412. The period described in this paragraph shall commence as of the
first tax year in which the facility is in service as of the assessment
date.

(2) An exemption under this section may not be allowed for real or
personal property that has received a property tax exemption under ORS
285C.170 or 285C.175.

(3) For each tax year that the facility is exempt from taxation
under this section, the county assessor shall:

(a) Enter on the assessment and tax roll, as a notation, the real
market value and assessed value of the facility.

(b) Enter on the assessment and tax roll, as a notation, the amount
of tax that would be due if the facility were not exempt.

(c) Indicate on the assessment and tax roll that the property is
exempt and is subject to potential additional taxes as provided in ORS
285C.420 by adding the notation “enterprise zone exemption (potential
additional tax).”

(4) The amount determined under subsection (3)(b) of this section
and the name of the business firm shall be reported to the Department of
Revenue on or before December 31 of each tax year so that the department
may compute the distributions described in ORS 317.131.

(5) The following property may not be exempt from property taxation
under this section:

(a) Land.

(b) Any property that existed at the facility on an assessment date
before the assessment date for the first tax year for which property of
the firm is exempt under this section. [Formerly 285B.786; 2005 c.94 §16] In order for a
facility of a business firm to continue to be exempt from ad valorem
property taxation under ORS 285C.409 for a tax year following the first
assessment date on which the facility is in service, all of the
conditions of any one of the alternative subsections in this section must
be met:

(1) In order for the exemption under ORS 285C.409 (1)(c) to be
allowable pursuant to this subsection:

(a) By the end of the calendar year in which the facility is placed
in service, the total cost of the facility exceeds the lesser of $25
million or one percent of the real market value of all nonexempt taxable
property in the county in which the facility is located, as determined
for the assessment year in which the business firm is certified (and
rounded to the nearest $10 million of such value);

(b) The business firm hires or will hire at least 75 full-time
employees at the facility by the end of the fifth calendar year following
the year in which the facility is placed in service; and

(c) The annual average compensation for employees, based on
payroll, at the business firm’s facility is at least 150 percent of the
average wage in the county in which the facility is located. This
requirement may be initially met in any year during the first five years
after the year in which operation of the facility begins, and thereafter
is met if the annual average compensation at the facility for the year
exceeds the average wage in the county for the year in which the
requirement is initially met.

(2) In order for the exemption under ORS 285C.409 (1)(c) to be
allowable pursuant to this subsection:

(a) The facility meets the total cost requirements set forth in
subsection (1)(a) of this section;

(b) The business firm meets the annual average compensation
requirements set forth in subsection (1)(c) of this section; and

(c)(A) The business firm hires or will hire at least 10 full-time
employees at the facility by the end of the third calendar year following
the year in which the facility is placed in service, and at the time that
the business firm is certified, the location of the facility is in a
county with a population of 10,000 or fewer; or

(B) The business firm hires or will hire at least 35 full-time
employees at the facility by the end of the third calendar year following
the year in which the facility is placed in service, and at the time that
the business firm is certified, the location of the facility is in a
county with a population of 40,000 or fewer.

(3) In order for the exemption under ORS 285C.409 (1)(c) to be
allowable pursuant to this subsection:

(a) By the end of the calendar year in which the facility is placed
in service, the total cost of the facility exceeds the lesser of $12.5
million or one-half of one percent of the real market value of all
nonexempt taxable property in the county in which the facility is
located, as determined for the assessment year in which the business firm
is certified (and rounded to the nearest $10 million of such value);

(b) At the time that the business firm is certified, the location
of the facility is 10 or more miles from Interstate Highway 5, as
measured between the two closest points between the facility site and
anywhere along that interstate highway;

(c) The business firm meets the annual average compensation
requirements set forth in subsection (1)(c) of this section; and

(d)(A) The business firm hires or will hire at least 50 full-time
employees at the facility by the end of the third calendar year following
the year in which the facility is placed in service; or

(B) The business firm satisfies the requirements of subsection
(2)(c)(A) or (B) of this section.

(4) In order for the exemption under ORS 285C.409 (1)(c) to be
allowable pursuant to this subsection:

(a) Within three years either before or after the property tax year
in which the facility is placed in service, the business firm places one
or more other facilities in the same or another enterprise zone for which
the business firm is certified and otherwise meets the requirements of
ORS 285C.400 to 285C.420;

(b) The total cost of all facilities of the business firm exceeds
$25 million by the end of the calendar year in which the last such
facility is placed in service;

(c) The business firm meets the annual average compensation
requirements set forth in subsection (1)(c) of this section independently
for each facility of the firm; and

(d) The business firm hires or will hire a total of at least 100
full-time employees at all of the firm’s facilities by the end of the
fifth calendar year following the year in which the first such facility
is placed in service.

(5) In order for the exemption under ORS 285C.409 (1)(c) to be
allowable pursuant to this subsection:

(a) By the end of the calendar year in which the facility is placed
in service, the total cost of the facility exceeds $200 million;

(b) At the time that the business firm is certified, the location
of the facility meets the siting requirements of subsection (3)(b) of
this section;

(c) The business firm hires or will hire at least 10 full-time
employees at the facility by the end of the third calendar year following
the year in which the facility is placed in service; and

(d) The business firm meets the annual average compensation
requirements set forth in subsection (1)(c) of this section. [Formerly
285B.789] Upon meeting the applicable
requirements of ORS 285C.412, the certified business firm shall notify
the county assessor in writing that the applicable requirements have been
met. [Formerly 285B.790] (1) If a
certified business firm does not begin operations or is not reasonably
expected to begin operations, as determined by the county assessor
consistent with criteria established by rule of the Department of
Revenue, or fails to meet the minimum requirements set forth in ORS
285C.412, while receiving an exemption under ORS 285C.409, the assessor
shall, as of the next tax year, disqualify the property from the
exemption.

(2)(a) If a certified business firm that has achieved the minimum
applicable full-time hiring requirements and annual average wage
requirements at a facility under ORS 285C.412 subsequently fails to
maintain the applicable minimum number of full-time employees or the
minimum annual average compensation level at the facility, the assessor
shall disqualify the facility from exemption under ORS 285C.409.

(b) This subsection does not apply if the decrease in hiring or in
annual average compensation is caused by circumstances beyond the control
of the business firm, including force majeure.

(3) Upon disqualification, there shall be added to the tax extended
against the property on the next general property tax roll, to be
collected and distributed in the same manner as the remainder of ad
valorem property taxes, an amount equal to the taxes that would otherwise
have been assessed against the property and improvements for each of the
tax years for which the property was exempt under ORS 285C.409.

(4) The additional taxes described in this section shall be deemed
assessed and imposed in the year to which the additional taxes relate.
[Formerly 285B.793]BUSINESS DEVELOPMENT INCOME TAX EXEMPTION 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) Zoned for industrial use or is within the urban growth boundary
of a city that has 15,000 or fewer residents; 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 of
county unemployment rates in this state; and

(B) A county per capita personal income that was in the lowest
third 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). [Formerly 285B.103;
2005 c.94 §17]Note: The amendments to 285C.500 by section 1, chapter 595, Oregon
Laws 2005, 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. See section 2, chapter 595,
Oregon Laws 2005. 285C.500, as amended by section 1, chapter 595, Oregon
Laws 2005, is set forth for the user’s convenience.

(1) A business firm seeking the income and corporate
excise tax exemption allowed under ORS 316.778 or 317.391 shall, before
the commencement of construction, reconstruction, modification or
installation of property or improvements at the location for which the
exemption is sought and before the hiring of any employees at that
location, apply to the Economic and Community Development Department for
preliminary certification under this section.

(2) The application shall be on a form prescribed by the department
and shall contain the following information:

(a) The proposed location of the facility;

(b) A description of the property to be constructed, reconstructed,
modified, acquired, installed or leased and that is to comprise the
facility when the business firm commences business operations at the
facility;

(c) If any property described in paragraph (b) of this subsection
is to be leased, the term of the lease;

(d) The number of full-time, year-round employees the business firm
intends to hire;

(e) The minimum annual average compensation intended to be given to
the employees described in paragraph (d) of this subsection;

(f) A description of any other business activities of the firm in
this state at the time of application, sufficient for the department to
be able to determine if the proposed facility will constitute a new
business in this state; and

(g) Any other information that the department requires.

(3) An application filed under this section must be accompanied by
a fee in an amount prescribed by the Economic and Community Development
Department by rule. The fee required by the department may not exceed
$500.

(4)(a) When an application is filed under this section, the
department shall send copies of the application to the governing bodies
of the city and county in which the facility is proposed to be located.
If the facility is to be located within a port, the department shall also
send a copy of the application to the governing body of the port.

(b) The governing body of a city, port or county described in
paragraph (a) of this subsection may object to the preliminary
certification of a business firm if the firm would be:

(A) In competition with an existing business employing individuals
within the city, port or county; or

(B) Incompatible with economic growth or development standards that
the city, port or county had adopted prior to the date of application for
preliminary certification.

(c) If the governing body of the city, port or county decides to
object to preliminary certification of the firm, the governing body shall
adopt a resolution stating its objection and the reason for its objection.

(d) The governing body of a city, port or county has 60 days from
the date the application is sent to the city, port or county to object to
preliminary certification. If the objection is not made within the 60-day
period, the city, port or county shall be deemed to have agreed to
preliminary certification.

(5) When an application is filed under this section, the department
shall review the application and determine whether all of the following
requirements are met:

(a) The proposed facility is to be located at a qualified location.

(b) The proposed facility is intended to operate as a facility for
at least 10 years following the date the facility becomes operational.

(c) The business firm intends to hire at least five employees for
full-time, year-round employment.

(d) The newly hired employees described in paragraph (c) of this
subsection are to receive a minimum annual compensation of:

(A) 150 percent of the county per capita personal income of the
county in which the facility is to be located as of the date of the
application for preliminary certification; or

(B) 100 percent of the county per capita personal income of the
county in which the facility is to be located as of the date of the
application for preliminary certification and the business firm will
provide health insurance coverage to the employees at the facility who
are described in paragraph (c) of this subsection that equals or exceeds
the health insurance benefits provided to employees of the city, port or
county in which the facility is to be located.

(e) The business operations of the business firm that are to be
conducted at the facility constitute a new business that the firm does
not operate at another location in this state.

(f) The business operations of the business firm will not compete
with existing businesses in the city or county in which the facility is
to be located.

(6) If the department determines that the proposed facility, if
completed as described in the application, meets the criteria set forth
in subsection (5) of this section and the governing body of the city,
port or county does not object under subsection (4) of this section to
preliminary certification of the firm, the department shall issue a
preliminary certification to the firm.

(7) If the department determines that the proposed facility, as set
forth in the application, does not meet the requirements for preliminary
certification under this section, the department may not issue a
preliminary certification. The applicant may appeal the decision to not
issue a preliminary certification in the manner of a contested case under
ORS chapter 183. No appeal may be made if the reason for not issuing a
preliminary certification is the objection of the governing body of the
city, port or county under subsection (4) of this section. [Formerly
285B.105](1) Following completion of
the construction, reconstruction, modification, acquisition, installation
or lease of the facility, the hiring of employees to conduct business
operations at the facility and the commencement of operations at the
facility, a business firm that obtained preliminary certification under
ORS 285C.503 may apply for annual certification under this section.

(2) The application shall be filed with the Economic and Community
Development Department on or before 30 days after the end of the income
or corporate excise tax year of the business firm.

(3) The application shall contain the following information:

(a) A description of the business operations conducted at the
facility;

(b) The date business operations commenced at the facility;

(c) The number of full-time, year-round employees employed by the
business firm at the facility;

(d) A schedule of the annual compensation paid to the employees; and

(e) Any other information required by the department.

(4) An application filed under this section must be accompanied by
a fee in an amount prescribed by the department by rule. The fee required
by the department may not exceed $100.

(5) The department shall review a business firm’s application and
approve the application if:

(a) The business operations of the firm at the facility commenced
within 10 years before the end of the tax year preceding the date of
application for annual certification;

(b) The facility and the business operations actually conducted at
the facility are reasonably similar to the proposed facility and proposed
operations described in the application for preliminary certification; and

(c) The business firm has satisfied the employment and minimum
compensation requirements described in ORS 285C.503 (5)(c) and (d).

(6) In the case of the first application for annual certification
filed by a business firm under this section, the department may approve
the application only if, in addition to the requirements under subsection
(5) of this section:

(a) Business operations commenced at the facility within a
reasonable period of time, as determined by the department by rule,
following the date of preliminary certification under ORS 285C.503; and

(b) There has not been a significant interruption in construction,
reconstruction, modification or installation activity at the location, as
determined by the department by rule, following the date of preliminary
certification under ORS 285C.503.

(7) The department may consult with the city or county in
determining whether to approve or disapprove an application under this
section.

(8) If the department approves an application, it shall issue an
annual certification to the business firm.

(9) If the department disapproves an application, the business firm
or any owner of the business firm may not be allowed the exemption
described in ORS 316.778 or 317.391 for the tax year for which the annual
certification was sought or for any subsequent tax year.

(10) The decision of the department to disapprove an application
under this section may be appealed in the manner of a contested case
under ORS chapter 183.

(11) An annual certification may not be issued under this section
for a tax year that is more than nine consecutive tax years following the
first tax year an exemption is allowed under ORS 316.778 or 317.391 with
respect to the facility.

(12) The department must approve or disapprove an application under
this section within 30 days of the date the application is filed.
[Formerly 285B.108]ADVANCED TELECOMMUNICATIONS FACILITIES INCOME TAX CREDIT533; tax credit
certification; application; rules; fees. (1) As used in this section and
ORS 285C.533:

(a) “Advanced telecommunications facilities” means high-speed,
dedicated or switched broadband telecommunications infrastructure or
equipment that enables users to send or receive high quality voice, data
or video telecommunications using any technology.

(b) “Last mile connection” means a communications channel from the
feed from a connecting bypassing intercity telecommunications carrier
through a telecommunications switching center, or an individual message
distribution point, to a user terminal.

(c) “Local exchange carrier” means a person that holds a
certificate of authority issued by the Public Utility Commission under
ORS 759.020 to provide intrastate telecommunications service or local
exchange telecommunications service within this state.

(d) “Telecommunications carrier” means a provider of
telecommunications services, but does not include an aggregator, as
defined in 47 U.S.C. 226.

(2) A telecommunications carrier seeking a tax credit under ORS
315.511 for the installation of advanced telecommunications facilities,
prior to incurring any costs associated with the installation, shall
apply to the Economic and Community Development Department for
certification of the facilities as advanced telecommunications facilities.

(3) The application for certification shall be in the form and
shall contain the information required by the department pursuant to
rules adopted by the department for the administration of the tax credit
certification under this section, including but not limited to:

(a) A complete description of the installation project and the
customers to be served by the project;

(b) The expected costs for completing the project;

(c) The expected start date and the expected date on which the
advanced telecommunications facilities are to be placed in service;

(d) The geographic area or areas in which the advanced
telecommunications facilities are to be installed; and

(e) A description of how the facilities will be integrated into the
operations of the intrastate telecommunications services provided by the
telecommunications carrier.

(4) The application for certification shall be accompanied by
technical documentation demonstrating that the facilities will meet or
exceed applicable minimum performance standards established by the
department under ORS 285C.533.

(5) The department may approve or deny an application for
certification or may request changes to the application before issuing
certification. Denial of an application may be appealed to the department
in the manner of a contested case under ORS chapter 183.

(6) The department shall approve an application and certify the
facilities as advanced telecommunications facilities if the facilities:

(a) Are to be located in an area in which current minimum bandwidth
service is not available to a majority of customers;

(b) Improve access to advanced telecommunications services for a
majority of all customers in unserved or underserved service areas; and

(c) Meet the minimum performance standards to comply with ORS
285C.533.

(7) Upon approval of an application, the department shall send to
the applicant a written certification of the facilities as advanced
telecommunications facilities. The certification shall state the date by
which the facilities must be placed in service and the cost of the
facilities that are being certified.

(8) Notwithstanding subsection (6) of this section, the department
may not approve an application and certify a facility if the cost of the
facility plus the certified costs of all other facilities that have been
certified during the year exceeds $10 million.

(9) The department may establish by rule the amount of fees charged
to applicants seeking certification of facilities as advanced
telecommunications facilities. Revenues from the fees shall be used to
offset the costs incurred by the department in administering the tax
credit certification under this section. [Formerly 285B.486](1) The Economic and Community Development Department
shall adopt rules setting minimum performance standards that facilities
must meet to be certified as advanced telecommunications facilities. The
rules must establish minimum performance standards in the following areas:

(a) Enhancement of individual and business access to advanced
telecommunications services at an economically reasonable cost;

(b) Development and transition to a fully competitive
telecommunications marketplace;

(c) Provision of bidirectional bandwidth capabilities to customers;

(d) Accessibility to competitive local exchange carriers;

(e) Improvement in access by public and private educational
institutions, rural health clinics and libraries to advanced
telecommunications services;

(f) Improvement in telecommunications connections between
communities in this state;

(g) Improvement in last mile connections within this state; and

(h) Improvement in access by Oregon health care providers to
interactive video and other health care applications requiring advanced
telecommunications services.

(2) In order for facilities to be certified under ORS 285C.530, the
facilities must meet or exceed the minimum performance standards in at
least one of the areas set forth in subsection (1) of this section.
[Formerly 285B.488]STRATEGIC INVESTMENT PROGRAM(Generally) As used in ORS
285C.600 to 285C.626:

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

(2) “Eligible project” means a project that meets criteria
established by the Oregon Economic and Community Development Commission
to be exempt from property taxation under ORS 307.123.

(3) “First-source hiring agreement” has the meaning given that term
in ORS 285C.050.

(4) “Publicly funded job training provider” has the meaning given
that term in ORS 285C.050.

(5) “Rural area” means an area located entirely outside of the
urban growth boundary of a city with a population of 30,000 or more, as
the urban growth boundary is acknowledged on December 1, 2002.

(6) “Strategic investment zone” means a geographic area established
under ORS 285C.623, within which the property of eligible projects may be
exempt from property taxation under ORS 307.123. [Formerly 285B.380; 2005
c.237 §1] The Legislative Assembly declares that a
significant purpose of the strategic investment program established in
ORS 285C.600 to 285C.626 and 307.123 is to improve employment in areas
where eligible projects are to be located and urges business firms that
will benefit from an eligible project to hire employees from the region
in which the eligible project is to be located whenever practicable.
[2003 c.800 §5; 2005 c.237 §2](1) The State of
Oregon, acting through the Oregon Economic and Community Development
Commission, may determine that real and personal property constituting a
project shall receive the tax exemption provided in ORS 307.123 if:

(a) The project is an eligible project;

(b) The project directly benefits a traded sector industry, as
defined in ORS 285B.280; and

(c) The total cost of the project equals or exceeds:

(A) $100 million; or

(B) $25 million, if the project is located in a rural area.

(2) In addition to and not in lieu of the determination described
in subsection (1) of this section, the State of Oregon, acting through
the Oregon Economic and Community Development Commission, shall determine
that real and personal property constituting a project shall receive the
tax exemption provided in ORS 307.123 if:

(a) The requirements of subsection (1) of this section are met; and

(b) The project is to be constructed or installed in a strategic
investment zone established under ORS 285C.623.

(3) Notwithstanding subsection (1) or (2) of this section, property
may not qualify for the tax exemption under ORS 307.123 if the property:

(a) Was previously owned or leased by the business firm benefitting
from the tax exemption;

(b) Was previously exempt under ORS 307.123 for any period of time;
or

(c) If located in a strategic investment zone, is not newly
constructed or newly installed property.

(4) The State of Oregon, acting through the State Treasurer, may
authorize and issue revenue bonds for an eligible project that qualifies
for exemption under ORS 307.123 if the project also is eligible for
funding through the issuance of revenue bonds under ORS 285B.320 to
285B.371.

(5) A business firm that will be benefited by an eligible project
shall enter into a first-source hiring agreement with a publicly funded
job training provider that will remain in effect until the end of the tax
exemption period.

(6) If an eligible project is leased or subleased to any person,
the lessee shall be required to pay property taxes levied upon or with
respect to the leased premises only in accordance with ORS 307.123.

(7) For purposes of determining the assessment and taxation of the
eligible project in ORS 307.123 and the calculation of the community
services fee in ORS 285C.609 (4)(b), the Oregon Economic and Community
Development Commission, when it determines that the project is an
eligible project, shall:

(a) Describe the real and personal property to be included in the
eligible project;

(b) Establish the maximum value of the property subject to
exemption; or

(c) Employ a comparable method to define the eligible project.

(8) Property of an eligible project that is currently exempt under
ORS 307.123 may remain exempt for any remaining period of exemption
allowed under ORS 307.123 upon the property being acquired by a business
firm that is different from the business firm that initially benefited
from the exemption, if the acquiring firm satisfies all applicable
requirements under ORS 285C.600 to 285C.626 and assumes the obligations,
conditions, requirements and other terms of the agreement described in
ORS 285C.609 (4). [Formerly 285B.383; 2005 c.237 §4](1) A determination under ORS 285C.606 (1)
by the Oregon Economic and Community Development Commission that a
project shall be exempt from property taxation under ORS 307.123 must be
requested by official action of the governing body of the county taken at
a regular or duly called special meeting thereof by the affirmative vote
of a majority of its members.

(2) The governing body of any Oregon county shall forward
appropriate prospective eligible projects to the Economic and Community
Development Department for processing.

(3) For purposes of this section, for projects located on a
federally recognized Oregon Indian reservation, the governing body of a
county shall be considered to be the governing body of the federally
recognized Oregon Indian tribe.

(4) The county may not make the request under subsection (1) of
this section unless, after a public hearing:

(a) The county and, if the proposed eligible project will be
located within a city, the city have entered into an agreement with the
business firm, as described in this subsection.

(b) The agreement provides for the payment of a fee by the business
firm, as follows:

(A) The fee shall be for community services support that relates to
the direct impact of the eligible project on public services.

(B) The fee shall be in an amount equal to 25 percent of the
property taxes that would, but for the exemption, be due on the exempt
property in each assessment year, but not exceeding $2 million in any
year or, if the eligible project is located in a rural area, $500,000 in
any year.

(C) The fee shall be paid annually during the tax exemption period,
as of a date set forth in the agreement.

(c) The agreement provides for the refunding or crediting of
overpayments, for interest on late payments or underpayments and for the
manner in which the appeal of the assessed value of the property included
in the project will affect the fee.

(5) The agreement described in subsection (4) of this section may
provide for any other requirements related to the project.

(6)(a) The fee collected under subsection (4)(b) of this section
shall be distributed by the county based on an agreement. The agreement
is effective only if:

(A) The county and the city, if any, in which the eligible project
is located have entered into the agreement; and

(B) Local taxing districts listed in ORS 198.010 or 198.180 that
constitute at least 75 percent of the property tax authority of all local
taxing districts listed in ORS 198.010 or 198.180 in the code area in
which the eligible project is located have entered into the agreement.

(b) If an effective agreement is not entered into under paragraph
(a) of this subsection within three months after the date of the
determination by the commission under ORS 285C.606 (1), the commission
shall, by official action, establish a formula for distributing the fee
collected under subsection (4)(b) of this section. [Formerly 285B.386] (1) The Oregon Economic
and Community Development Commission shall collect the fees set forth in
subsection (2) of this section from an applicant that seeks to have the
real and personal property constituting the eligible project declared
eligible for the tax exemption provided in ORS 307.123. The fee may be
collected even though the project has not been determined to be eligible
for the tax exemption.

(2) The fees described in subsection (1) of this section are as
follows:

(a) $10,000, or $5,000 if the project is located in a rural area,
upon application to the commission; and

(b) $50,000, or $10,000 if the project is located in a rural area,
when the eligible project is determined by the commission to be eligible
for the tax exemption provided in ORS 307.123. The commission shall pay
50 percent of this fee to the Department of Revenue for the purpose of
administration of ORS 307.123.

(3) The fees collected under subsection (2) of this section shall
be deposited in the Oregon Community Development Fund created under ORS
285A.227. [Formerly 285B.389] Notwithstanding
ORS 192.410 to 192.505, the identity of an applicant for an eligible
project determination under ORS 285C.606, the application form submitted
to the county governing body and the Oregon Economic and Community
Development Commission and the negotiations conducted between the
applicant and the county shall be confidential, until the county
governing body gives notice of its intent to take official action on the
application. [Formerly 285B.392](Strategic Investment Zones) (1) A
county seeking to ensure that all eligible projects constructed or
installed within a particular geographic area within the county receive
the tax exemption under ORS 307.123 may request designation of the
geographic area as a strategic investment zone. The request must be made
by official action of the governing body of the county taken at a regular
or duly called special meeting of the governing body by the affirmative
vote of a majority of members of the governing body. The request must set
forth the proposed boundaries of the zone.

(2) The governing body of the county shall forward appropriate
actions requesting zone establishment to the Economic and Community
Development Department for consideration by the Oregon Economic and
Community Development Commission. If the commission determines that the
proposed zone is likely to achieve the purpose set forth in ORS 285C.603
and other objectives established for the zone by the requesting county,
the department or the commission, the commission shall designate the
geographic area a strategic investment zone.

(3) Any eligible project described in ORS 285C.606 (2) and newly
constructed or installed after the date of zone designation under this
section shall qualify for exemption under ORS 307.123 if the business
firm benefited by the eligible project complies with the fee agreement
described in subsection (4) of this section.

(4) The county may not make the request under subsection (1) of
this section unless, after a public hearing:

(a) The county and, if the proposed zone will be located within a
city, the city have entered into an agreement described in this
subsection.

(b) The agreement provides for the payment of a fee by each
business firm that is to own or operate an eligible project within the
proposed zone, as a condition for the exemption under ORS 307.123. The
agreement shall provide for the payment of the fee, as follows:

(A) The fee shall be for community services support that relates to
the direct impact of the eligible project on public services.

(B) The fee shall be in an amount equal to 25 percent of the
property taxes that would, but for the exemption, be due on the exempt
property in each assessment year, but not exceeding $2 million per
eligible project in any year or, if the eligible project is located in a
rural area, $500,000 per eligible project in any year.

(C) The fee shall be paid annually during the tax exemption period
by each business firm having an eligible project within the zone, as of a
date set forth in the agreement.

(c) The agreement provides for the refunding or crediting of
overpayments, for interest on late payments or underpayments and for the
manner in which the appeal of the assessed value of the property included
in the project will affect the fee.

(5) The agreement described in subsection (4) of this section may
provide for any other requirements that each business firm must comply
with in order for the eligible project of the firm to qualify for
exemption under ORS 307.123.

(6)(a) The fee collected under subsection (4)(b) of this section
shall be distributed by the county based on an additional agreement
described in this subsection. An agreement described in this subsection
is effective only if:

(A) The county and the city, if any, in which the eligible project
is located have entered into the agreement; and

(B) Local taxing districts listed in ORS 198.010 or 198.180 that
constitute at least 75 percent of the property tax authority of all local
taxing districts listed in ORS 198.010 or 198.180 that are in the code
area in which the eligible project is located have entered into the
agreement.

(b) If an additional agreement is not entered into under paragraph
(a) of this subsection within three months after the date of the
determination by the commission under ORS 285C.606 (1), the commission
shall, by official action, establish a formula for distributing the fee
collected under subsection (4)(b) of this section. [2005 c.237 §5](1) A business firm seeking the exemption under ORS
307.123 for a project the firm intends to install or construct within a
strategic investment zone shall apply to the Economic and Community
Development Department. The application shall be in the form and shall
contain the information required by the department.

(2) A completed application containing all of the required
information shall be considered by the Oregon Economic and Community
Development Commission for the purposes of determining whether the
project constitutes an eligible project under ORS 285C.606. [2005 c.237
§3]

_______________

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