Oregon
Rule Rule 123-690-8500
Revenue Distribution to Local Zone Sponsor


(1)

As indicated in OAR 123-668-1600 (Funds Derived through an Enterprise Zone), the sponsor of an enterprise zone containing exempt facility property owned by a corporation that claims the tax credit under ORS 317.124 (Long term enterprise zone facilities) might receive funds through the Department of Revenue from the Long Term Enterprise Zone Fund established under ORS 317.127 (Long Term Enterprise Zone Fund).

(2)

The sponsor’s receipt of such funds depends on:

(a)

The qualifying taxpayer’s being allowed to claim the credit for the corporate excise tax year;

(b)

The taxpayer’s making actual payment to fulfill its applicable tax liability; and

(c)

The depositing of such payments for distribution under ORS 317.129 (Tax payments of long term enterprise zone facilities credit claimants) and 317.131 (Distribution of funds to local governments).

(3)

As to amounts for distribution and the current state fiscal year:

(a)

If they exceed the property taxes that relevant taxing districts would otherwise have received in the corresponding property tax year, but for exemption under ORS 285C.409 (Property tax exemption), then that excess goes to the zone sponsor.

(b)

If there is no relevant exemption under ORS 285C.409 (Property tax exemption) in the corresponding property tax year, then the entire amount goes to the zone sponsor.

(4)

For purposes of section (3) of this rule, the zone sponsor is responsible for making timely arrangements, so that it:

(a)

Can receive distributed funds in a way that effectively ensures the Department of Revenue of having made payment to the zone sponsor (including but not limited to a joint mechanism among all cosponsors, or a deposit account administered by a single cosponsor on behalf of the entire zone sponsorship); and

(b)

Satisfies applicable provisions of ORS Chapter 294 (County and Municipal Financial Administration) and other state or local laws with regard to collecting, holding and using such funds.
Source
Last accessed
Aug. 7, 2020