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South Lane SD 45J3 board adopts 15% school support fee for enterprise zone under new state law
Summary
The board adopted Resolution 25-04 setting a 15% school support fee for years 4–5 of qualifying enterprise-zone exemptions, a collection mechanism required by state law that staff said will not increase district net funding because of state proportionate adjustments.
The South Lane SD 45J3 Board of Education on a unanimous voice vote adopted Resolution 25-04, setting a 15% school support fee to apply when companies in the local enterprise zone seek extended tax exemptions in years four and five.
The enterprise zone manager (S5) told the board the fee follows a 2023 legislative change (House Bill 2009) that requires districts to set a school support percentage in such cases. "It's called Cottage Grove, Creswell, and South Lane County enterprise zone," the manager said, and explained that eligible companies that request years four and five of exemption would pay 15% of the value they receive directly to the district under the chosen percentage.
The manager and Superintendent (S4) both warned the measure does not increase district revenue in practice because the state reduces its proportional funding to account for property taxes collected through the enterprise zone. "They will reduce their proportionate share back to the school district," the enterprise zone manager said, explaining the state-level offset that leaves the district's bottom line unchanged in most scenarios.
Board members pressed staff on collection and enforcement procedures; a board member asked what happens if a company refuses to pay the invoiced percentage. The board was told the Department of Revenue and standard invoicing and collection processes would apply, with the district issuing an invoice and state revenue procedures available if payment is not made.
The resolution was presented with supporting materials and a sample template from the Oregon Association of School Business Officials. After discussion about the practical effect on local taxes and state aid, a board member moved to adopt Resolution 25-04 at a 15% rate, the motion was seconded and carried by voice vote without recorded opposition.
What happens next: staff will implement the collection mechanics and incorporate the fee into review of any pending enterprise-zone applicant seeking years four and five of exemption. The board noted that, because the state adjusts funding, the fee is principally an administrative collection required by law rather than a new local revenue source.
