Loading
The Oregon Administrative Rules contain OARs filed through August 15, 2014
 
QUESTIONS ABOUT THE CONTENT OR MEANING OF THIS AGENCY'S RULES?
CLICK HERE TO ACCESS RULES COORDINATOR CONTACT INFORMATION

 

OREGON BUSINESS DEVELOPMENT DEPARTMENT

 

DIVISION 656

TRIBALLY AND FEDERALLY BASED ZONE DESIGNATIONS

123-656-0001

Purpose & Scope

This division of administrative rules addresses the existence of enterprise zones in addition to OAR 123-650, as provided under:

(1) ORS 285C.300 to 285C.320 respective to Oregon-based tribes; and

(2) ORS 285C.085 based on special federal designations.

Stat. Auth.: ORS 285A.075 & 285C.060(1)
Stats. Implemented: ORS 285C.085 & 285C.300 - 285C.320
Hist.: OBDD 24-2010, f. & cert. ef. 6-14-10

123-656-0100

Definitions

OAR 123-001 (Procedural Rules) and 123-650 define terms used in this division of administrative rules. In addition:

(1) As used in ORS 285C.085(4)(b), “all areas within both the federal enterprise zone and the city, county or port are included in a state enterprise zone” means that the state enterprise zone will need to encompass all of the Federal Enterprise Zone inside territory of any city, port or county that will sponsor the zone:

(a) Even if such area is also inside an overlapping city, port or county that neither sponsors nor consents to the zone, regardless of OAR 123-650-0500; but

(b) Not such area that overlaps with another existing state enterprise zone.

(2) As used in these administrative rules, unless the context dictates otherwise:

(a) “Federal Enterprise Zone” is a designation by an agency of the U.S. government that is:

(A) Not terminated;

(B) Located at least partially in this state;

(C) Delimited by formal boundaries and an established period of existence lasting five or more years;

(D) Intended at least in part to create or improve economic opportunities and development within the local community;

(E) Provided for by federal law that includes congressionally authorized benefits for purposes of paragraph (D) of this subsection;

(F) Qualified based on federal guidelines, including but not limited to criteria for a level of economic hardship generally comparable to that indicated under ORS 285C.090;

(G) Subject to a significant degree of national selectivity and uniqueness, in relation to paragraph (F) of this subsection, such that having more than five of any designation type awarded to this state at any one time might be highly unlikely; and

(H) For example, comparable to federal Renewal Communities, Empowerment Zones or Enterprise Communities (but not a Recovery Zone, which many municipalities might self-designate).

(b) “RENZ” means a reservation enterprise zone under ORS 285C.306(2).

(c) “RPRZ” means a reservation partnership zone under ORS 285C.306(3).

(d) “Tribe” means one of the federally recognized Indian tribes in Oregon listed under ORS 285C.306(1).

Stat. Auth.: ORS 285A.075 & 285C.060(1)
Stats. Implemented: ORS 285C.050, 285C.085 & 285C.300 - 285C.320
Hist.: OBDD 24-2010, f. & cert. ef. 6-14-10

Tribal Zones

123-656-1000

Applicability of Regular Parameters

For purposes of RENZs and RPRZs:

(1) Neither counts against any overall cap on the number of enterprise zones in this state, being in addition to the designations allowed under ORS 285C.080, 285C.085 and 285C.250 for city, port and county sponsorship. At any one time, however, the Department shall not designate more than one RENZ respective to each Tribe or effectively not more than nine RENZs in total.

(2) Designation does not depend on any measure of local economic hardship, on inclusion of quality industrial sites, or on consultation with local taxing districts.

(3) Only pursuant to a boundary change under ORS 285C.115(3) do they ever need to satisfy requirements for maximum distances or general co-sponsorship by city, port or county governments. In the event of such a boundary change, those requirements apply as described in OAR 123-650.

(4) Each may have total area within its boundary of up to but not more than 12 square miles, for which:

(a) An RENZ shall conform to OAR 123-650-1000(3) and 123-650-1500 and may consist of separate, noncontiguous areas.

(b) The cosponsors of an RPRZ shall determine how to define, map and describe the zone’s area, which must be contiguous.

(5) In terms of zone overlap and local sponsorship:

(a) An RENZ shall not overlap any other enterprise area and shall not have a cosponsoring city with a population of less than 100,000 that already sponsors any other enterprise zone.

(b) An RPRZ may include a city, port or county cosponsor that currently sponsors another enterprise zone, other than an RENZ, and as originally cosponsored, it may overlap another existing enterprise zone other than an RENZ or another RPRZ.

(6) Either may apply for electronic commerce status under ORS 285C.095 (see OAR 123-662).

(7) The zone sponsor shall fulfill the duties incumbent on it under ORS 285C.105 or elsewhere in ORS chapter 285C, including but not limited to those addressed in OAR 123-668.

(8) They are invariably ‘rural’ enterprise zones with respect to the standard exemption under ORS 285C.175 (see OAR 123-674) and long-term tax incentives under ORS 285C.409 and 317.124 (see OAR 123-690), regardless of where any part of the zone exists:

(a) The facility must nevertheless be in an applicable county for the long-term tax incentives; and

(b) Neither an RENZ (designated after 2003) nor an RPRZ sponsor may elect or allow a hotel, motel or destination resort business to be eligible for the standard exemption.

(9) They are not subject to statutory sunset, being excluded from the effect of ORS 285C.255.

Stat. Auth.: ORS 285A.075 & 285C.060(1)
Stats. Implemented: ORS 285C.050 - 285C.250, 285C.255 & 285C.300 - 285C.320
Hist.: OBDD 24-2010, f. & cert. ef. 6-14-10

123-656-1200

Reservation Enterprise Zone Designations

For purposes of RENZs, consistent with OAR 123-656-1000:

(1) To apply for designation of an RENZ, the Tribe shall furnish the Department with the following:

(a) Copy of the resolution requesting designation, as duly adopted by the Tribe’s governing body within the past 90 days;

(b) Map and legal description of the zone boundary and the estimated area within that boundary; and

(c) A formal statement or evidence to the effect that:

(A) The status of any previous RENZ designation by the Tribe is confirmed;

(B) The area to be designated does not include area inside any other enterprise zone, including but not limited to an RPRZ; and

(C) That such area contains only such land of the Tribe under ORS 285C.306(2)(b) that is one or more of the following: Land held in trust, land officially pending trust status, or any on-reservation area, based on current laws, authority or treaties with the U.S. government. For purposes of this paragraph, the request shall include:

(i) Copies of federal documents attesting to relevant status, as necessary or appropriate; and

(ii) A map of the zone showing and labeling the respective nature of the tribal lands comprising the designated area.

(2) Subject to the accuracy and completeness of materials provided per section (1) of this rule and to any other information that the Department may request:

(a) The Director shall order the designation; and

(b) Designation shall take effect as early as when the Department received a complete application, as warranted.

(3) In conformance with sections (1) and (2) of this rule, the Tribe may seek to have the RENZ:

(a) Amended through a boundary change at any time without triggering provisions under ORS 285C.115(3).

(b) Re-designated concurrent with or after the July-1 date once the RENZ has terminated by operation of law, immediately following more than 10 years since the effective date of its designation. Termination of an RENZ does not occur under ORS 285C.245(3) to (6) or in any other way prematurely.

Stat. Auth.: ORS 285A.075 & 285C.060(1)
Stats. Implemented: ORS 285C.245, 285C.300 - 285C.320
Hist.: OBDD 24-2010, f. & cert. ef. 6-14-10

123-656-1400

Reservation Partnership Zone Co-sponsorships

For purposes of RPRZs, consistent with OAR 123-656-1000 and pursuant to a co-sponsorship agreement:

(1) The zone’s effective beginning, equivalent to designation, is the execution of the agreement or a specified, later date.

(2) The agreement shall be between a single Tribe and at least one or more cities, ports or counties, but it may include only one or two such local governments, in terms of their jurisdictional territory inside the RPRZ, regardless of provisions for joint sponsor or consent by any other such government under ORS 285C.065, 285C.066 or 285C.068.

(3) The RPRZ shall contain area inside the jurisdictional territory of each city, port or county that cosponsors it, and it may (but does not need to) contain land of the Tribe under ORS 285C.306(2)(b)(A) or (C) or both.

(4) The Tribe and any cosponsoring city, port and county are the “zone sponsor” of the RPRZ, and their agreement shall contain appropriate and necessary provisions under ORS 190.110, as well as mutual and respective roles and responsibility as the zone sponsor including but not limited to provisions under ORS 285C.105. Any other party to the agreement as allowed under ORS 190.110 would not be part of the zone sponsor.

(5) The sponsor of the RPRZ is urged to:

(a) Consult with other cities, ports or counties that have territory in the zone;

(b) Communicate with other local taxing districts that have territory in the zone; and

(c) Advise the Department of its existence, area and co-sponsorship.

(6) With respect to altering the contiguous area inside the RPRZ at any time:

(a) The sponsor may mutually amend the agreement to add or remove land as described in section (3) of this rule.

(b) To include any other area shall also entail boundary change and related requirements under ORS 285C.115, including but not limited to submitting a request to the Department, zone distance criteria, excluding area in any existing zone, and sponsorship (with accession to the agreement) or consent by all relevant city, port or county governments.

(7) With respect to RPRZ termination:

(a) The agreement shall recognize that the zone does terminate by operation of law after June 30 immediately following 10 years since the effective date of its beginning, and the term of the agreement shall be for at least that long.

(b) It does not occur under ORS 285C.245(3) to (6) or in any other way prematurely, except on or after the effective dissolution of the agreement by mutual consent of its parties. In the event of such dissolution, any business firm shall enjoy the same protection under relevant provisions in statute, law and this chapter of administrative rules for location in a terminated enterprise zone.

(8) The Tribe and city, port or county may create a new RPRZ pursuant to or in replacement of a terminated one, based on a newly executed co-sponsorship agreement consistent with this rule.

(9) There is no particular limit on the number of RPRZs that may exist statewide, or that any city, port, county or Tribe may cosponsor.

Stat. Auth.: ORS 285A.075 & 285C.060(1)
Stats. Implemented: ORS 285C.115, 285C.245 & 285C.300 - 285C.320
Hist.: OBDD 24-2010, f. & cert. ef. 6-14-10

123-656-1600

Tribal Credit against State Income Taxes

For purposes of the credit under ORS 285C.309 to offset state personal or corporate income/excise tax liabilities based on tribal taxes incurred or paid to the Tribe for an applicable business facility in any RENZ or RPRZ:

(1) It is available to a business engaged in any type of income-furthering activity, other than leasing the facility, without respect to receipt or qualification for any other enterprise-zone tax abatement by the business or the facility.

(2) The business must have acquired the facility (by purchase or lease) or completed its construction, erection or installation, commencing operations there, only since January 1, 2002; in addition, for an existing facility:

(a) If located on the Tribe’s reservation, the business operations need to be significantly different from and not in any way the continuation of what was undertaken at the facility before its latest acquisition; and

(b) The facility consists only of new investments in new property that enlarged or extended the ability of the business to generate revenue at the facility, as opposed to existing property or the replacement of existing property.

(3) The credit equals:

(a) The total amount of tribal taxes under ORS 285C.300 incurred or paid by the business in or respective to the first income/excise tax year, in which it operates in the RENZ or RPRZ; or

(b) For any other tax year, only the annual property taxes imposed by the Tribe on facility property consistent with section (2) of this rule.

(4) An applicable tribal property tax for purposes of section (3) of this rule shall be:

(a) Levied in an area broader than a single site but rather encompassing an entire district, in which businesses can generally develop and operate, and throughout which the Tribe has authority to impose and collect such a tax on non-Indian businesses, regardless of the area’s correspondence to or coverage by the RENZ or RPRZ;

(b) Computed based on a rate or schedule of rates multiplied by the valuation of certain types of tangible property in the area of taxation, even if the methods, definitions and so forth differ from ad valorem taxation under state law; and

(c) Uniformly assessed and imposed on any non-Indian business, as well as Indian enterprises if they too are subject to the same tax, and not exempted in any way due to location in the RENZ or RPRZ.

(5) To claim the tax credit, the business/taxpayer shall fill out the latest revision of the Department of Revenue form 150-102-046, Reservation Enterprise Zone Tax Credit Worksheet, but not submit it with the tax return, for each applicable income/excise tax year begun before the date prescribed under section 21, chapter 913, Oregon Laws 2009.

NOTE: Department of Revenue forms referenced in this rule are available from the Department of Revenue, Property Tax Division, 955 Center St NE, PO Box 14380, Salem OR 97309-5075, phone 503-378-4988, 800-356-4222, TTY 800-886-7204, fax 503-945-8737, and web http://www.oregon.gov/DOR/PTD/enterform.shtml .

Stat. Auth.: ORS 285A.075 & 285C.060(1)
Stats. Implemented: ORS 285C.300 - 285C.320
Hist.: OBDD 24-2010, f. & cert. ef. 6-14-10

Federal Enterprise Zones

123-656-2000

Designation Based on Federal Zone

For purposes of an enterprise zone under ORS 285C.085(2):

(1) City, port or county governments may apply for designation of the zone corresponding to the boundary of a single Federal Enterprise Zone located in the government’s territory:

(a) Application may occur at any time without regard to deadlines, a Round of Designation or an application form;

(b) Besides a map and legal description of the proposed enterprise zone consistent with OAR 123-650-1500, the application must document the Federal Enterprise Zone’s official existence, location and satisfaction of OAR 123-656-0100(2)(a), except to the extent that the Department fully understands such satisfaction;

(c) Information related to local economic hardship, land use/zoning or estimated surface area is not necessary;

(d) The governments must engage in timely communication with local taxing districts in accordance with OAR 123-650-5500;

(e) A cosponsor of a zone terminated by order of the Director under ORS 285C.245(4) or (5) is not excluded from applying;

(f) Zone sponsor may not elect for hotels, motels or destination resorts to be eligible business firms in the zone under ORS 285C.070;

(g) Proposals by a cosponsor for local incentives shall not be binding; and

(h) The designation may not serve as the re-designation of a Preexisting Enterprise Zone.

(2) The designation of the zone may be made without regard to any limitation on the:

(a) Number or location of enterprise zones as authorized by state law; or

(b) Size or dimensions of an enterprise zone described in OAR 123-650-1000 and 123-650-1100.

(3) The zone must still conform to the requirements for:

(a) Being either urban or rural as described in OAR 123-650-0700, except for a special waiver and determination at the Director’s discretion; and

(b) Inclusion of all area in each cosponsor that is inside the Federal Enterprise Zone as described in OAR 123-656-0100(1).

(4) The Director’s order of designation shall essentially follow OAR 123-650-2600.

(5) A cosponsor of an existing enterprise zone may not seek designation of another zone as described in this rule if:

(a) The Federal Enterprise Zone overlaps with a portion of the existing enterprise zone; or

(b) The cosponsor is a city with less than 100,000 in population.

Stat. Auth.: ORS 285A.075 & 285C.060(1)
Stats. Implemented: ORS 285C.050, 285C.080, 285C.085 & 285C.090
Hist.: OBDD 24-2010, f. & cert. ef. 6-14-10

123-656-2100

Boundary Changes

For purposes of a local request to change the boundary of an existing enterprise zone under ORS 285C.085(3):

(1) The request for the boundary change shall be treated like any such request under ORS 285C.115 and described in OAR 123-650, except for appropriate elements of OAR 123-656-2000.

(2) Such a boundary change may add an area to the existing zone, only if the area is located in a county in which the zone is already located or in a contiguous county.

(3) Following the change in the zone boundary, the existing zone shall be Terminated-by-Statute or may be terminated by order of the Director, as normal under ORS 285C.245, irrespective of the boundary change.

(4) If the Federal Enterprise Zone terminates prematurely for nonperformance, violation of federal guidelines or similarly unusual circumstances, then the Director may rescind the order changing the boundary of the zone, as if that boundary change had never occurred. Any business firm located in an area consequently left out of the zone shall enjoy the same protection under the relevant provisions in statute, law and this chapter of administrative rules for location in a terminated enterprise zone.

(5) Once an enterprise zone has been designated or amended as described in OAR 123-656-2000 or this rule, a (further) change in the boundary of the zone may be requested and done under ORS 285C.115, as otherwise allowed, with the following clarifications:

(a) If the total area of the enterprise zone equals or exceeds 12 square miles, additional areas may be included only if those areas are located:

(A) In parts of the Federal Enterprise Zone within a city, port or county requesting to become a cosponsor of the zone with the boundary change;

(B) In new parts of the Federal Enterprise Zone, as amended by authority of the federal government; or

(C) In another Federal Enterprise Zone that is located in a city, port or county that already sponsors the zone.

(b) If the zone exceeds the maximum overall allowed distance applicable to the zone, additional areas may be included in one of the following ways:

(A) Consistent with subsection (a) of this section;

(B) Where such areas do not increase the overall distance within the zone consistent with provisions under ORS 285C.120(1)(b) and (c); or

(C) By virtue of a waiver under ORS 285C.120(2) (see OAR 123-650-1100).

Stat. Auth.: ORS 285A.075 & 285C.060(1)
Stats. Implemented: ORS 285C.085 & 285C.115
Hist.: OBDD 24-2010, f. & cert. ef. 6-14-10

123-656-2300

Terminations

For an enterprise zone designated as described in OAR 123-656-2000:

(1) The zone is Terminated-by-Statute as normal under ORS 285C.245(2), subsequent to the effective date of designation by order of the Director, regardless of any intervening termination of the Federal Enterprise Zone due to programmed operation under federal statutes or repeal of the operative federal law.

(2) The zone may terminate prematurely for the reasons under ORS 285C.245(3).

(3) With respect to termination with either section (1) or (2) of this rule, ORS 285C.250 provides for designation of another enterprise zone to replace the terminated zone, such that the designation is simply added to the total number of regular enterprise zones allowed by law.

(4) In addition, the zone may also terminate by order of the Director under ORS 285C.085(5), effectively rescinding the order designating the zone, as if it had never existed, in the event that the federal government prematurely terminates the Federal Enterprise Zone for nonperformance, violation of federal guidelines or similarly unusual circumstances. In this case, there is no provision for a replacement designation under ORS 285C.250, but any business firm located in the zone shall enjoy the same protection under relevant provisions in statute, law and this chapter of administrative rules for location in a terminated enterprise zone.

Stat. Auth.: ORS 285A.075 & 285C.060(1)
Stats. Implemented: ORS 285C.085 & 285C.245
Hist.: OBDD 24-2010, f. & cert. ef. 6-14-10

The official copy of an Oregon Administrative Rule is contained in the Administrative Order filed at the Archives Division, 800 Summer St. NE, Salem, Oregon 97310. Any discrepancies with the published version are satisfied in favor of the Administrative Order. The Oregon Administrative Rules and the Oregon Bulletin are copyrighted by the Oregon Secretary of State. Terms and Conditions of Use

Oregon Secretary of State • 136 State Capitol • Salem, OR 97310-0722
Phone: (503) 986-1523 • Fax: (503) 986-1616 • oregon.sos@state.or.us

© 2013 State of Oregon All Rights Reserved​