Or. Admin. Code § 123-097-2500

Current through Register Vol. 63, No. 11, November 1, 2024

Section 123-097-2500 - Determination of eligible costs and estimated incremental income tax revenues

(1) Once a RSIS has been designated and a Sponsor has been certified and a tax reimbursement agreement is established, the Sponsor must submit the following information to the Department by Jan 1 of each year, starting the tax year after an employer hires employees:

(a) A complete list of any employers, including their business identification numbers, conducting traded-sector business on the designated RSIS during the previous year.

(b) A complete list and description of any site preparation costs incurred during the previous year; see 123-097-1000 (2)(c).

(2) The Department will determine:

(a) Which employers are conducting a traded sector business according to ORS 285A.010.

(b) Which employers have met the ORS 285B.626(1)(b) threshold requirements by examining the 50 (urban site) or 25 (rural site) highest-paid employees, averaging the wages of those individuals, then comparing that figure to the threshold of 150 percent of the state or county wage average wage, whichever is less.

(c) Which Sponsor site preparation costs are eligible.

(3) For each tax year, the Department will calculate the estimated incremental income tax revenues at the RSIS based on the following:

(a) Wages and hours data received from the Oregon Employment Department as reported by employers on the Oregon Quarterly Tax Report required by law. Missing information for a tax year will be included in the following tax year.

(b) Individual employees will be placed into assumed tax brackets, based on actual hours worked and wages paid.

(c) Assumed tax rates times actual wages paid will be calculated for individual employees, then summed for each employer.

(4) For each tax year, the Department shall notify Sponsor of the amount to be transferred to the Sponsor under a tax reimbursement agreement, and the balance of site preparation costs to be carried over to subsequent tax years.

Or. Admin. Code § 123-097-2500

OBDD 9-2014, f. 4-30-14, cert. ef. 5-1-14; OBDD 11-2018, amend filed 04/17/2018, effective 4/17/2018

Statutory/Other Authority: ORS 285A.075 & 285B.627(10)

Statutes/Other Implemented: ORS 285B.625, 285B.626, 285B.627 & 285B.630