Oregon Administrative Rules
Chapter 123 - OREGON BUSINESS DEVELOPMENT DEPARTMENT
Division 674 - STANDARD EXEMPTION ON TAXABLE ENTERPRISE ZONE PROPERTY
Section 123-674-6630 - Utilization of Payments

Universal Citation: OR Admin Rules 123-674-6630

Current through Register Vol. 63, No. 9, September 1, 2024

In accordance with ORS 285C.240(6)(b), the expenditure of moneys collected from a qualified business firm shall benefit residents of the enterprise zone and its immediate vicinity, such that:

(1) For a rural zone, the immediate vicinity will generally encompass (but is not necessarily limited to) the entire incorporated and urban growth area of any city sponsoring the zone, unless the city is relatively large, and only some parts of the zone boundary are in or near the city.

(2) Public, public/private or community-based activities, efforts or programs that acceptably serve residents of the zone and its local area include but are not limited to:

(a) Job training, placement, skill development, career counseling and similar programs predominately involving such residents;

(b) Better educational opportunities, facilities and so forth that serve such residents;

(c) Planning, analyses or support for infrastructure, public safety or other public/community services or facilities that have the potential to stimulate commerce and employment growth in association with the zone;

(d) Programs that assist with financing or other matters for businesses largely started by or employing such residents;

(e) Improvements to environmental conditions, recreational resources or other qualities of the community; or

(f) Reasonable contributions to the management, marketing or other needs of the enterprise zone itself.

(3) Combining these moneys with funds obtained from authorization filing fees or from other resources associated with the enterprise zone (see 123-668), or otherwise belonging to the local community is allowable.

(4) If the payment per cosponsor is less than $5,000, the zone sponsor may:

(a) Delay spending the moneys for an indefinite period of time, pending complementary opportunities or resources; and

(b) Allocate the moneys to existing programs and projects that are likely to benefit such residents, even if not exclusively.

(5) If the payment per cosponsor is between $5,000 and $25,000, the zone sponsor may:

(a) Postpone spending the moneys for up to two years; and

(b) Allocate the moneys to existing programs and projects, but the sponsor shall make reasonable efforts to ensure that relevant residents in particular are beneficiaries of additional expenditures.

(6) If the payment per cosponsor exceeds $25,000, the zone sponsor shall see that the moneys go to ongoing programs, special projects and so forth, but only if such expenditures have a direct and particular impact on relevant residents.

(7) There is no obligation to maintain or repeat for future payments any of the elections and methods utilized in accordance with this rule for a given payment.

Stat. Auth.: ORS 285A.075 & 285C.060(1)

Stats. Implemented: ORS 285C.240

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