Deschutes County Commissioners approved redrawn boundaries to the Bend Enterprise Zone at their meeting on Wed., April 14, moving one step closer towards final approval from the state. Enterprise Zones are touted as one of the key benefits for businesses in Oregon, and Bend’s hosts 54 companies that have created over 1,400 jobs and invested $256 million since the zones were formed in 2011.
The program allows three- or five-year abatements on personal property taxes for properties in established Enterprise Zones, areas that need to be facing economic hardship in terms of income, unemployment and poverty when compared to the state to qualify. The abatement allows businesses to invest in themselves without the burden of increased taxes until the end of the term. Without sales tax incentives, corporate income tax credits and other benefit programs, Oregon has fewer ways to attract businesses than many states, advocates say.
“Oregon's not winning any national awards for breadth and depth of finance,” said Roger Lee, CEO of Economic Development for Central Oregon, the entity contracted to manage the Enterprise Zone. “So, this is one of the flagship incentives that we can offer businesses in the state to encourage them to invest here and to put jobs in Oregon.”
Getting the tax exemption requires businesses to meet certain goals. A three-year abatement requires a minimum investment of $50,000, 10% job growth from the date of application to the end of the abatement’s term and submitting annual reports to EDCO. For a five-year abatement they must meet the same qualifications, plus sustaining jobs with 150% the average county wage ($71,393) and be individually approved by the Bend City Council.
“We've purchased a lot of equipment, which the enterprise zone and EDCO, that's all helped a lot with personal property tax,” said Bobbie Flemming, Chief Financial Officer of CLS Fabrication. “This is a big building, and the property tax bills are big. But then, not only that, as you buy another million and another million dollars of equipment, that personal property tax bill is now bigger than the property tax.”