Bill Text: OR SB546 | 2013 | Regular Session | Introduced

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Bill Title: Relating to exemption of property in enterprise zones; prescribing an effective date.

Spectrum: Committee Bill

Status: (Failed) 2013-07-08 - In committee upon adjournment. [SB546 Detail]

Download: Oregon-2013-SB546-Introduced.html

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     77th OREGON LEGISLATIVE ASSEMBLY--2013 Regular Session

NOTE:  Matter within  { +  braces and plus signs + } in an
amended section is new. Matter within  { -  braces and minus
signs - } is existing law to be omitted. New sections are within
 { +  braces and plus signs + } .

LC 1327

                         Senate Bill 546

Sponsored by COMMITTEE ON FINANCE AND REVENUE

                             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.

  Eliminates certain property requirements for exclusion from
central assessment of property of company that is owner or lessee
of data center.
  Grandfathers former property requirements with respect to tax
abatement agreements entered into before January 1, 2013.
  Takes effect on 91st day following adjournment sine die.

                        A BILL FOR AN ACT
Relating to exemption of property in enterprise zones; creating
  new provisions; amending section 3, chapter 103, Oregon Laws
  2012; and prescribing an effective date.
Be It Enacted by the People of the State of Oregon:
  SECTION 1. Section 3, chapter 103, Oregon Laws 2012, is amended
to read:
   { +  Sec. 3. + } (1) A company is not a company described in
ORS 308.515 (1) to the extent that the company furnishes
undiluted liquefied or industrial gas in bottles, tanks or
similar containers.
  (2) A company is not a company described in ORS 308.515 (1) if:
  (a) The company generates electricity primarily for the
company's own use and makes no more than incidental sales of the
company's surplus electricity to other persons; or
  (b)(A) The company's generating facility is primarily fueled by
wood waste or other biomass fuel;
  (B) The generating facility has a maximum capacity of 20
megawatts; and
  (C) The company, if selling the generated electricity, does so
only directly to an electric utility, as defined in ORS 758.505,
for the electric utility's distribution to utility customers.
  (3) A company that is the owner or lessee of a data center is
not a company described in ORS 308.515 (1) if  { - : - }
    { - (a) - }  the company has entered into a written tax
abatement agreement, or is entitled by assignment or succession
to the benefits of a tax abatement agreement entered into, with
the sponsors of an enterprise zone with respect to a data center,
pursuant to ORS 285C.050 to 285C.250 or 285C.400 to 285C.420
 { - ; and - }  { + . + }
    { - (b)(A) The original cost of construction and installation
of all real and tangible personal property owned or leased by the
company in Oregon other than data centers does not equal more
than five percent of the original cost of the real and tangible
personal property of all data centers owned, leased or used by
the company in Oregon and all additions to the data center
property; and - }
    { - (B) The property in Oregon other than data centers
described in subparagraph (A) of this paragraph consists of real
or tangible personal property used in the operation of an office
or a warehouse or in connection with the construction,
installation or operation of data center property. - }
  (4)(a) Property of a company described in subsection (3) of
this section may not be assessed under ORS 308.505 to 308.665
during the term of an exemption granted pursuant to an agreement
described in subsection   { - (3)(a) - }   { + (3) + } of this
section or during the term of any statutorily authorized
extensions of the exemption, waivers or periods of in lieu
payments.
  (b) For purposes of the notations required under ORS 285C.175
(7) and 285C.409 (3), the county assessor shall record the real
market value, the assessed value and the amount of potential
additional taxes as determined without regard to ORS 308.505 to
308.665.
  (5) If a company described in subsection (3) of this section
owns or leases a data center in more than one county in this
state, each data center must satisfy   { - all applicable - }
 { + the + } requirements   { - under - }   { + of + } subsection
(3) of this section.
  (6)(a) As used in this section:
  (A) 'Data center' means an online service data center or an
independent data center.
  (B) 'Independent data center' means real and personal property
consisting of buildings or structures specifically designed or
modified to house networked computers and data and transaction
processing equipment and related infrastructure support
equipment, including, without limitation, power and cooling
equipment, used primarily to provide, as a service to persons
other than the company operating the independent data center,
data and transaction processing services, outsource information
technology services and computer equipment colocation services.
  (C) 'Online service data center' means real and personal
property consisting of buildings or structures specifically
designed or modified to house networked computers and data and
transaction processing equipment and related infrastructure
support equipment, including, without limitation, power and
cooling equipment, used primarily to provide, to a single user,
including the user's affiliates, customers, lessees, vendors and
other persons authorized by the user, data and transaction
processing services.
  (b) For purposes of this subsection, the primary use of
property is based on the relative proportion of the original cost
of property used for all purposes.
  SECTION 2.  { + The amendments to section 3, chapter 103,
Oregon Laws 2012, by section 1 of this 2013 Act apply to a
company that has entered into a tax abatement agreement, or is
entitled by assignment or succession to the benefits of a tax
abatement agreement entered into, with the sponsors of an
enterprise zone with respect to a data center on or after January
1, 2013. + }
  SECTION 3.  { + This 2013 Act takes effect on the 91st day
after the date on which the 2013 regular session of the
Seventy-seventh Legislative Assembly adjourns sine die. + }
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