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Board approves Enterprise Zone resolution enabling school support fee for future exemptions
Summary
The Philomath SD 17J board voted to adopt a local resolution that allows businesses to receive fourth- and fifth-year Enterprise Zone tax exemptions only if they pay a 15–30% school support fee; the resolution passed by voice vote 4–0 with one member absent.
The Philomath SD 17J Board of Directors approved a resolution to participate in the state Enterprise Zone program’s new school support fee structure, a change designed to preserve local eligibility for fourth- and fifth-year tax exemptions for qualifying new construction or project expansions.
Economic development manager Christopher Jacobs told the board the Oregon Legislature’s 2023 changes require a local school-support fee agreement before a zone sponsor can extend incentives beyond three years. “Enterprise zones are allowed by state statute,” Jacobs said, explaining that when the fourth and fifth years are offered, between 15% and 30% of the total tax exemption may be directed to the district as a school support payment. Jacobs said the district could invoice businesses for that fee and assess late fees if payment is not made.
Board members asked which projects qualify and how much revenue the district might see. Jacobs said only added taxable value from expansions or new construction qualifies; moving an existing business into a new space without added square footage typically does not. He said only one business in the zone currently receives a multi-year exemption and that the immediate financial impact for Philomath SD 17J would be minimal: any district share is offset within the state funding formula rather than representing new net revenue to the district.
A board member moved to accept the resolution with a clerical edit to language about when the zone sponsor must provide district information; another seconded the motion. The board approved the resolution by voice vote, four in favor, one absent.
Next steps: staff will file the district’s resolution to preserve the option of offering fourth- and fifth-year exemptions for qualifying future projects and will seek to obtain and share the Enterprise Zone map and specific program documentation with the public.
