OAR 123-623-1950: Local Distribution of Community Service Fee

For purposes of annual payments to be received according to OAR 123-623-1900: (1) The County shall distribute the entire annual community service fee to: (a) The County; (b) City government(s) if any part of Approved Project is located within incorporated territory; (c) A port if any part of the Approved Project is inside a port district; (d) Any other local taxing district that levies taxes on property located in a tax code area containing any part of the Approved Project: (A) Listed under ORS 198.010 or 198.180; or (B) In addition to paragraph (A) of this subsection; or (e) Local organizations or programs that provide a relevant and significant community service, even without taxing authority. (2) A distribution formula shall determine the exact percentage of the community service fee received or retained by an entity listed in section (1) of this rule. A schedule of distribution formulae that varies from year to year is allowable. (3) Establishment of the annual formula may occur in one of only two ways: (a) By official action of the Commission, if subsection (b) of this section is not satisfied; or (b) By a formal agreement that: (A) Takes effect on or before the same date of the third month following the Commission’s determination of the Approved Project; (B) Parties stipulated in OAR 123-623-1975 have effectively entered into, in writing, by that date; and (C) Provides specifically and completely for annual distribution of funds consistent with sections (1) and (2) of this rule. (4) If local parties in OAR 123-623-1975 timely reach and effect such an agreement: (a) They may mutually amend or revise the agreement at a later time; and (b) The County shall formally report the annual distribution formula to the Department, to: (A) Confirm that the Commission need not establish such formula; and (B) Inform about the redistribution of funds received under ORS 285C.635(3). (5) In the event that the parties in OAR 123-623-1975 have not concluded an agreement (aside from outstanding signatures) before the requisite three-month period, the Commission: (a) Shall take necessary steps as soon as reasonably possible for purposes of subsection (3)(a), as described in section (6), of this rule; or (b) May delay official action, at its sole discretion, upon learning that a sufficient set of parties (as described in OAR 123-623-1975) is having productive negotiations, with which they wish to continue. Under such circumstances: (A) The Commission may officially sanction an agreement reached when negotiations successfully conclude; and (B) The parties may not subsequently amend or revise such an agreement in any way that would effectively modify the established distribution formula. (6) In determining a distribution formula, the Commission: (a) May rely primarily on the relative proportions of prevailing property tax rates among affected local taxing districts; (b) May consider adjusting such proportions according to the Approved Project’s demand or direct impact on the public service(s) provided by each entity, taking account of expected new property tax revenues even with the Abatement, as well as consideration of the goals and purposes of applicable state policies; (c) Shall set an annual distribution percentage for each entity described in section (1) of this rule that the Commission determines will receive a portion of the distribution; and (d) Shall in the process of issuing the distribution formula to the County government, notify all entities of its official, final action. (7) In an SIZ, each Approved Project will entail a separate agreement or Commission action for the distribution of the community service fee arising from it, consistent with this rule. Nevertheless, with respect to an SIZ, the County and other applicable local parties (including but not limited to the Port of Portland under ORS 778.010) may agree to a generalized distribution formula and standard agreement for all future Approved Projects.