1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
83rd OREGON LEGISLATIVE ASSEMBLY--2025 Regular Session
House Bill 2725
Sponsored by Representative PHAM H, Senator SOLLMAN; Representatives LIVELY, MCLAIN, SOSA, WALLAN,
Senators MEEK, REYNOLDS (Presession filed.)
SUMMARY
The following summary is not prepared by the sponsors of the measure and is not a part of the body thereof subject
to consideration by the Legislative Assembly. It is an editor’s brief statement of the essential features of the
measure as introduced.The statement includes a measure digest written in compliance with applicable readability
standards.
Digest: The Act would limit the kind of port district that must be a party to a contract in the
strategic investment program.(Flesch Readability Score: 65.2).
Limits the kind of port districts that are required to be involved in strategic investment program
agreements with respect to eligible projects that are located in the port district’s territory.
Takes effect on the 91st day following adjournment sine die.
A BILL FOR AN ACT
Relating to the inclusion of ports in strategic investment program agreements; creating new pro-
visions; amending ORS 285C.600 and 285C.609; and prescribing an effective date.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 285C.609 is amended to read:
285C.609. (1) A determination under ORS 285C.606 (1) by the Oregon Business Development
Commission that a project shall be exempt from property taxation under ORS 307.123 must be re-
quested by official action of the governing body of the county in which the proposed eligible
project will be located, taken at a regular or duly called special meeting [thereof] of the governing
body.The request shall require approval by the affirmative vote of a majority of [its] the mem-
bers of the governing body.
(2) The governing body of [any Oregon] a county shall forward [appropriate prospective] ap-
proved eligible projects to the Oregon Business 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
publichearing:
(a) The county and, if the proposed eligible project will be located within the boundaries of a
city or affected port, the city or affected port have entered into an agreement with the business
firm, as described in this subsection. The Oregon Business Development Department shall make
available, in a timely manner, training materials related to negotiation techniques in such circum-
stances to the county, city or affected port, as applicable.
(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 el-
igible 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 $3 million
NOTE:Matter in boldfaced type in an amended section is new; matter [italic and bracketed] is existing law to be omitted.
New sections are in boldfaced type.
LC 594 HB2725
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
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 maximum fee amount allowed under subsection (4)(b) of this section shall be adjusted
each year for the property tax year beginning on July 1 by multiplying $3 million by the ratio of the
increase, if any, in the monthly averaged Consumer Price Index for All Urban Consumers, West
Region, for the 12 consecutive months ending December 31 of the prior calendar year over the
monthly averaged index for the 12 consecutive months ending December 31, 2023. The amount of any
increase determined under this subsection shall be rounded to the nearest multiple of $1,000.
(6) The agreement described in subsection (4) of this section may provide for any other re-
quirements related to the project.
(7)(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 the following public bodies have entered
into the agreement:
(A) The county and the city or affected port, if any, in which the eligible project is located;
(B) All special districts in the code area in which the eligible project is located that provide
services related to public safety, fire prevention and response, ambulance or other emergency med-
ical response or emergency communications; and
(C) Local taxing districts listed in ORS 198.010 or 198.180, other than affected ports, that con-
stitute at least 75 percent of the property tax authority of all local taxing districts listed in ORS
198.010 or 198.180, other than affected ports, in the code area in which the eligible project is lo-
cated.
(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.
SECTION 2. ORS 285C.600 is amended to read:
285C.600. As used in ORS 285C.600 to 285C.635:
(1) “Affected port” means a port district on the Columbia River formed under ORS
chapter 777 that owns at least four industrial parks.
[(1)] (2) “Business firm” has the meaning given that term in ORS 285C.050.
[(2)] (3) “Consumer Price Index for All Urban Consumers, West Region” means the Consumer
Price Index for All Urban Consumers, West Region (All Items), as published by the Bureau of Labor
Statistics of the United States Department of Labor.
[(3)] (4) “Eligible project” means a project that meets criteria established by the Oregon Busi-
ness Development Commission to be exempt from property taxation under ORS 307.123.
[(4)] (5) “First-source hiring agreement” has the meaning given that term in ORS 285C.050.
[(5)] (6) “Newly created jobs” means, for an eligible project, total jobs less retained jobs.
[(6)] (7) “Publicly funded job training provider” has the meaning given that term in ORS
285C.050.
[(7)] (8) “Rural area” means an area located entirely outside of the urban growth boundary of
a city with a population of 40,000 or more, as the urban growth boundary is acknowledged on the
[2] HB2725
1
2
3
4
5
6
7
8
9
10
11
date on which an applicant submits an application, pursuant to rules adopted by the Oregon Busi-
ness Development Department, for property tax exemption under ORS 307.123.
[(8)] (9) “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.
SECTION 3. The amendments to ORS 285C.600 and 285C.609 by sections 1 and 2 of this
2025 Act apply to requests made under ORS 285C.609 on or after the effective date of this
2025Act.
SECTION 4.This 2025 Act takes effect on the 91st day after the date on which the 2025
regular session of the Eighty-third Legislative Assembly adjourns sine die.
[3]