OAR 123-656-1600: Tribal Credit against State Income Taxes

For purposes of the standard credit under ORS 315.506 to offset state personal or corporate income/excise tax liabilities based on tribal taxes incurred or paid to the Tribe for an applicable business facility in any RENZ or RPRZ: (1) It is available to a business engaged in any type of income-furthering activity, other than leasing the facility to tenants, irrespective of receipt or qualification for any other enterprise-zone tax abatement by the business or the facility. (2) The business must have acquired the facility (by purchase or lease) or completed its construction, erection or installation, only since January 1, 2002. In addition, for a previously existing facility: (a) If located on the Tribe’s reservation, the business operations need to be significantly different from and not in any way the continuation of what was undertaken at the facility before its latest acquisition; and (b) The facility, for purposes of applicable tribal property taxes, comprises new investments (completed and placed in service since January 1, 2002) only to the extent that they effectively enlarged or extended the ability of the business to generate revenue at the facility, as opposed to existing property or the replacement of existing property. (3) The credit (for which any unused amounts may not be carried forward) equals: (a) The total amount of tribal taxes under ORS 285C.300 incurred or paid by the business in or respective to the first income/excise tax year, in which it operates in the RENZ or RPRZ; or (b) For any other tax year, only the annual property taxes imposed by the Tribe on facility property consistent with section (2) of this rule. (4) An applicable tribal property tax for purposes of section (3) of this rule shall be: (a) Levied in an area encompassing an entire district, in which multiple businesses might generally develop and operate, and throughout which the Tribe has authority to impose and collect such a tax on non-Indian businesses, regardless of the area’s general correspondence to or coverage by the RENZ or RPRZ; (b) Computed based on a rate or schedule of rates multiplied by the valuation of certain types of tangible property in the area of taxation, even if the methods, definitions and so forth differ from ad valorem taxation under state law; and (c) Uniformly assessed and imposed on any non-Indian business, as well as Indian enterprises if they too are subject to the same tax and not exempt in any way due to location in the RENZ or RPRZ. (5) To claim the tax credit, the business/taxpayer shall fill out the latest revision of the Department of Revenue Schedule OR-REZT, form 150-102-046, Reservation Enterprise Zone Tax Credit though not submit it with the tax return, for an applicable income/corporate excise tax year beginning before the date prescribed under section 21, chapter 913, Oregon Laws 2009, as last amended. The schedule is available from the Department of Revenue at oregon.gov/dor/forms/Pages/default.aspx.