OAR 123-668-4000: SUPPORT FEES FOR OREGON SCHOOLS — Applicability and Rate Setting

Under ORS 285C.162 and 285C.405, for purposes of school support fee rates in an agreement between a business firm and the sponsor of an enterprise zone under ORS 285C.160 and 285C.403(4), exclusively as described in OAR 123-668-2000(1) or (2)(a): (1) Such an agreement must stipulate the fee rate established by the zone sponsor and the common or union high school district that: (a) Provides elementary and secondary education (exclusive of community college, educational service or any other district); and (b) Would otherwise receive property tax revenue on property of the firm inside the enterprise zone. (2) The fee rate in conformance with OAR 123-668-4100 may be established by the sponsor and school district, either: (a) With zone designation or re-designation according to OAR 123-650-5300; or (b) At some point on or after September 24, 2023, if the enterprise zone already exists on that date, but before the earlier of: (A) The effective date of the zone’s termination; or (B) January 2, 2028. (3) The fee rate shall be mutually established in a documentable way: (a) Acceptable to the school district’s officials and its board, as well as governments that (co)sponsor the enterprise zone at least in consultation with their governing bodies; (b) Including but not limited to the following, which may differ between or among the school district and cosponsors of the zone: (A) Exchange of letters; (B) Memorandum of understanding; (C) Contract between or among the sponsor or sponsoring governments and the school district; or (D) Official votes or adoption of resolutions or other instruments by respective governing bodies; and (c) Without necessarily negotiating other terms or conditions, although arrangements or plans to formalize arrangements for purposes of OAR 123-668-4200 and 123-668-4300 are advisable. (4) Documents pursuant to subsection (3)(b) of this rule shall at a minimum: (a) Set and specify the rate as a percentage; (b) Provide context in terms of the enterprise zone’s name and the implementation of state law for school support fees to be paid by businesses in the zone; (c) Formally identify entities involved through official letterhead or other means; (d) Contain signatures of representatives or officials for the zone sponsor and school district; and (e) Be retained by the sponsor and district, but they need not be transmitted to a state agency in the case of subsection (2)(b) of this rule. (5) This rule applies to agreements between zone sponsors and business firms: (a) Only if entered into on or after September 24, 2023, under ORS 285C.160 or 285C.403(4)(b). (b) In all enterprise zones or rural renewable energy development (RRED) zones, but the sponsor and any relevant school district may in the case of a: (A) RRED Zone, establish the fee rate at any time, regardless of paragraph (2)(b)(B) of this rule, including but not limited to re-/designation under ORS 285C.353. (B) Federally based enterprise zone, reservation enterprise zone or reservation partnership zone: (i) Establish the fee rate at any time on or before January 1, 2028; or (ii) Set, reset or continue to use a previously established rate after January 1, 2028, as part of the process for re-/designation under ORS 285C.085 or 285C.306.