Dem's put strings on businesses moving into enterprize zones

May 05, 2009

Oregon Legislature
House Majority Office

FOR IMMEDIATE RELEASE: May 5, 2009
CONTACT: Michael Cox (503) 986-1904

House Democrats Protect Family Wages, Taxpayer Dollars
HB 2699 would require projects in enterprise zones to pay a family wage

SALEM – House Democrats today provided the crucial votes to protect good, family wage jobs and the taxpayer dollars that create them. HB 2699, passed today in the House, would require projects in enterprise zones to pay family wages to the workers who build them.

“Enterprise zones attract private businesses because they are given favorable tax treatment for doing so,” said Representative Paul Holvey (D-Eugene), the bill’s Chief Sponsor. “This bill ensures those investments create family wage jobs so that the benefits extend throughout the community.”

The purpose of Oregon’s enterprise zone system is to help attract private business investment into areas in the state that need an economic boost. In exchange for locating or expanding in an enterprise zone, businesses receive total exemption from property taxes normally assessed on new plant and equipment for at least three years.

“If businesses want to take advantage of the benefits they get to locate in an enterprise zone, they are going to have to pay a family wage,” said Representative Mike Schaufler (D-Happy Valley). “That is a tradeoff that is fair for business, fair for families and fair for Oregon taxpayers.”

“Many legislators claim to be concerned about protecting taxpayers’ hard earned dollars, but seem unwilling to make sure tax breaks are generating the results we have been promised,” said House Democratic Majority Leader Mary Nolan (D-SW Portland).

Oregon is facing the most challenging economic climate in generations, with families struggling like never before. House Democrats are committed to saving and providing jobs to rebuild our economy, protecting families facing tough times and preparing for a brighter future.

HB 2699 now moves to the Senate.
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