Hillsboro Enterprise Zone Program

Overview

The Hillsboro Enterprise Zone was designated by the Oregon Business Development Department on July 12, 2006. The program allows a property tax abatement for eligible businesses on any new development (land and existing improvements do not qualify) within the enterprise zone for a three to five year period.  The Hillsboro Enterprise Zone is considered an urban enterprise zone and therefore, the City of Hillsboro has imposed additional program requirements.

Eligible Businesses

Eligible businesses are primarily firms that provide goods, products, or services to businesses or other organizations through, but not limited to, manufacturing, processing, shipping, assembly, and fabrication.  In addition, businesses engaged in retail or financial services are eligible if (1) the activity serves customers by responding to orders or requests received only by telephone, computer, the Internet or similar means of telecommunications; and (2) not less than 90 percent of the customers or orders are located and originate in an area from which long distance phone charges would apply if the order were placed by phone.The business use must meet the current zoning regulations for the site under consideration within the enterprise zone and the property must be annexed to the City of Hillsboro.

Program Requirements

State

• Increase full time, permanent employment of the firm within the enterprise zone by the greater of one new job (new businesses to Hillsboro) or 10 percent (expansion of existing businesses).

• No concurrent job losses more than 30 miles from the zone

• Maintain employment levels during exemption period

• Enter into first-source agreement with local job training providers (For Hillsboro, the job training provider is Worksource Oregon/Oregon Employment Department)

• Satisfy local additional conditions (See below.)

Hillsboro

The Hillsboro City Council authorized the following additional program requirements for companies locating in the Hillsboro Enterprise Zone.  Further detail on each of the conditions can be found by clicking on the link.

• Minimum Investment of $1 million is required in the North Industrial Enterprise Zone Area and a minimum of $250,000 investment in the Downtown and South Industrial Enterprise Zone Areas.

• Procurement Plan that increases purchases from Hillsboro-based companies by 10% annually.

• Job Quality/Wages: (1) average of all hourly wages must be at least 150% of Oregon minimum wage for a 3 year tax abatement (2) at least 75% of hourly wages must exceed 200% of Oregon minimum wage for a 4-5 year tax abatement; (3) benefits are provided at an hourly value equal or greater than 20.2% of the average hourly salary for all years of exemption (Calculation procedures); and (4) training and advancement opportunities will be offered to all employees.

• Application Fee will be paid to the City of Hillsboro in the amount equal to 0.1% of the total estimated value of investment; fee capped at $25,000.

• Community Service Fee applies to businesses seeking a 4-5 year exemption.  The fee will be calculated at a rate of 25% of the abated taxes for years 4 and 5 and is paid to the City of Hillsboro annually.

Maps

Investment must occur within the boundary of the enterprise zone.  The Hillsboro Enterpise Zone is located in three distinct areas throughout the city.  The South Industrial Area is 357 acres zoned industrial along the southwest section of the city.  The Central Business District is located in the downtown area zoned central business district.  The North Industrial Area is located north and south of Sunset Hwy encompassing various areas of industrial zoned property between the western edge of the urban growth boundary off Evergreen Road and the Tanasbourne Area and areas to the north of the freeway between NW Helvetia, West Union, and Cornelius Pass Roads.

Application

The Hillsboro Enterprise Zone program involves four primary public agencies.  The Oregon Business Development Department is the state agency authorized to manage and appoint enterprise zones throughout the state.  The Oregon Department of Revenue and Washington County assists in the application review process and implements the property tax exemption.  The City of Hillsboro is the local zone manager.  Application must be made with the City of Hillsboro.  Businesses interested in the Enterprise Zone program can obtain application information from Valerie Okada at 503-681-6112. Copies of the application form may be found at the Oregon Department of Revenue’s website: http://egov.oregon.gov/DOR/PTD/enterform.shtml.  Select: Authorization Application, 150-303-029 (Rev. 10-10).