Bill targets 'Enterprise Zone' property tax exemptions


SALEM — Amendments to House Bill 2299-B have been drafted to force the state’s enterprise tax zones to deliver the benefits they were designed to deliver – good jobs for Oregon workers. Enterprise zones offer exemptions from property taxes for businesses that agree to invest in defined areas and commit to create and maintain a certain number of jobs.

House Bill 2299-B, sponsored by Governor Ted Kulongoski, would liberalize access to enterprise zone tax breaks for businesses that invest in rural areas of the state. But because of problems with the existing law the Oregon State Building and Construction Trades Council (OSBCTC) has proposed an amendment that would require construction projects in rural enterprise zones comply with the state’s prevailing wage laws.

Governor Kulongoski said he will support the amendment.

The need for the amendment became apparent when Georgia-Pacific received an enterprise zone tax break to help finance a new paper machine at its mill in Wauna and then used contractors who hired out-of-state workers at substandard wages to build and install the equipment.

Holding up a photo of out-of-state license plates at the Wauna construction site, OSBCTC Executive Secretary Bob Shiprack told the Senate Revenue Committee May 29, “Local residents don’t get hired, but live in the taxing districts giving away the tax breaks. This is real taxpayer money.”

Workers in the building trades are facing extremely high unemployment, some at rates above 40 percent.

“Oregon has the skilled workers ready to do the work at enterprise zone construction sites, but they are losing out to contractors who hire from Southeastern right-to-work states,” said the Oregon AFL-CIO.

John Endicott, business manager of Plumbers and Fitters Local 290, told the committee that the state-certified prevailing wage is $33 an hour wage plus $10 an hour in fringe benefits for his members, but that contractors are undercutting those rates by paying as little as $15 an hour plus a $30-a-day stipend for imported workers.

The building trades’ amendment is labeled the “-B14” amendment to HB 2299-B. Public hearings have been held and the Senate Revenue Committee is expected to take up the bill and the –B14 amendment this week.

The building trades and state labor federation say an all-out lobbying effort is needed to pass the amended bills because contractors oppose it.

Members of the Senate Revenue Committee are: Sen. Ryan Deckert, Portland: 503-986-1714; Sen. Ted Ferrioli, John Day: 503-986-1730; Sen. Tony Corcoran, Cottage Grove: 503-986-1704; Sen. Lenn Hannon, Ashland: 503-986-1703; Sen.Charlie Ringo Portland: 503-986-1717; Sen. Bruce Starr, Aloha: 503-986-1715.

- From the Oregon AFL-CIO Legislative Update


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