Portland Enterprise Zone Program
The Oregon E-Zone program is a State of Oregon economic development program that allows for property tax exemptions for up to five years.
Contact Andy Reed, PDC E-Zone Manager, email or 503-823-7053
In exchange for receiving property tax exemption, participating firms are required to meet the program requirements set by state statute and the local sponsor. The Portland Development Commission is the local sponsor for the Portland E-Zone program.
The E-Zone program allows industrial firms that will be making a substantial new capital investment a waiver of 100% of the amount of real property taxes attributable to the new investment for a 5-year period after completion. Land or existing machinery or equipment is not tax exempt; therefore, there is no loss of current property tax levies to local taxing jurisdictions.
Generally speaking, the tax liability for a new capital investment is around 1.5% of the value of that investment. So, a $20 million investment would typically produce a tax liability of around $300,000 a year. Once the 5-year period is over, the improvements, along with the rest of the property, are fully taxed for the life of the improvements. After five years, the entire asset enters the tax rolls. So, the short-term waiver of local taxes results in a long term return to the local taxing jurisdictions.