Oregon Administrative Rules

Oregon Revised Statutes (ORS)

Electronic Commerce Zone

Several of Oregon's more than 70 enterprise zones have received special status to further encourage electronic commerce (or "e-commerce") investments.

"Electronic commerce" is defined as engaging predominantly in transactions via the internet or an internet-based computer platform. These transactions can include taking orders, closing sales, making purchases, providing customer service or undertaking other activities that serve the business's overall purpose, even if retail in nature.

Local Property Tax Abatement

In an e-commerce enterprise zone, "being engaged in electronic commerce" is itself an eligible activity for the standard property tax abatement. Many such operations would be eligible anyways in any enterprise zone, for example, by satisfying criteria for an eligible administrative or call center. In a designated e-commerce area local retail is less restricted, and third-party vendors who facilitate the use of the internet by others for business transactions are also eligible.

Additional newly installed personal property—i.e., readily movable machinery and equipment—can also qualify. Usually, such property that costs between $1,000 and $50,000 per item qualifies only if used in the production of tangible goods, but in an e-commerce enterprise zone or city, using it for electronic commerce similarly allows for the exemption.

Qualified new investments also can comprise operations connected to the e-commerce activity, which include not only otherwise eligible activities such as shipping or storage facilities to fulfil orders arising from e-commerce, but it would also extend to administrative, technical, or other functions that are integral to the retail or commercial transactions that are conducted or supported through electronic commerce inside the designated area.

Note: state income tax credit

A significant feature of these designations had been, until the 2017 tax year, that qualifying businesses could earn an investment tax credit against the business's annual state income or corporate excise tax liability.