Doing Business in Condon

If you can work remotely, you can live in Condon. Condon is a sweet spot with a plethora of opportunities. We have a large amount of unused phone lines just waiting to be put to use in a call center. We have acres of commercially zoned lots just waiting to be developed. We have high-speed wireless hot-spots downtown where you can have a latte and answer your email. We have wide open spaces for you to transform with your imagination.

The low cost of living makes Condon a very friendly place for start-ups and companies with a large workforce. Sink your savings and your energy into getting your dreams going, and stop worrying about just getting by.

Get used to spending less time in line at the post office. Get used to making the most out of your lunch break. Get used to getting more done in 8 hours a day, and spending the rest of your time doing just exactly what you want. Your family can easily be your priority in Condon.

Transportation

Highways

Secondary – Highway 19 N/S Route, local access; Highway 206 E/W route, local access.

Air

State Airport; Pauling Field – 3,500 ft. lighted concrete runway.

Rail Service

Rail service available to Shulter Station Industrial Park and Oregon Waste Systems located 28 miles North of Condon.

Marine

Port of Arlington located 35 miles North of Condon at Arlington.

Enterprise Zone

ORS 285C.055 (2003) sums up the purpose for enterprise zone legislation, first enacted by the Oregon Legislature in 1985, as follows:

“The health, safety and welfare of the people of this state are dependent upon the continued encouragement, development, growth and expansion of employment, business, industry and commerce throughout all regions of the state, but especially in those communities at the center of or outside of major metropolitan areas for which geography may act as an economic hindrance. . . . [T]here are areas in the state that need particular attention of government to help attract private business investment into those areas and to help resident businesses to reinvest and grow and that many local governments wish to have tax incentives and other assistance available to stimulate sound business investments that support and improve the quality of life.”

Number and Size

Forty-nine enterprise zones are currently designated: 44 being “nonurban;” 5, urban. The boundary of a zone may be noncontiguous, but it must not encompass more than 12 square miles and must conform to restrictions on distances within the zone. Each zone terminates after 10 years, at which time local governments may apply to the Economic and Community Development Department for new opportunities or redesignation.

How it Works

In exchange for locating or expanding into an enterprise zone, eligible (generally non-retail) business firms receive total exemption from the property taxes normally assessed on new plant and equipment for at least three years (but up to five years) in the basic program. Longer-term tax incentives may be offered in certain zones.

Local Determination

Sponsored by local city/county governments or tribal governments, an enterprise zone typically serves as a focal point for local development efforts and incentives. Eighty-eight cities in 33 counties currently use enterprise zones to create better economic opportunities.

Economic Development in Gilliam County

Located in the Gilliam County Courthouse in Condon, Gilliam County’s Economic Development Department is here to grow new business and help existing businesses thrive. Economic Development Officer Jessica Bates is available Monday through Thursday to aid local businesses with informational resources, make local connections and aid in funding opportunities. Check out our blog for information and updates!

New this year: Gilliam County has reinstated its Business Development Loan Program. Loan assistance is available to new business ventures, existing businesses looking to expand, or non-profit organizations employing at least one part-time employee. Financing available as gap-funding or independently. Additional program information and applications are available at the Courthouse, Pioneer Community Development Corporation, Condon Chamber of Commerce and Bank of Eastern Oregon.

Role of Oregon Business Development Department

The Oregon Business Development Department (Business Oregon) is responsible for the designation and termination of enterprise zones and for changes to zone boundaries. In cooperation with the Department of Revenue and other state agencies, Business Oregon also provides administrative rules, information materials, training, technical assistance and marketing support to local governments and county assessors for implementing business tax incentives.

Local Application and Designation

Cities and counties across Oregon apply for designation of an enterprise zone. The statutes specify the following two threshold criteria for local economic hardship in order for a proposed zone to be designated: household median income is 80 percent or less of state median income, or unemployment rate is 2.0 percentage points or more above comparable state unemployment rate, based on the most recent annual figures from a given source of the data.

The Economic and Community Development Department has the discretion to define or consider alternative but equally severe threshold criteria, one of which is that a proposed enterprise zone is located predominantly in a “distressed area,” which are areas that the department recognizes based on a sophisticated index of economic measures pursuant to a 1997 Law.

Statutory Tax Incentives in an Oregon Enterprise Zone

Three-to-Five-Year Property Tax Exemption*

Through a short-term tax exemption, an Oregon enterprise zone induces eligible businesses of all sizes to make additional investments that will improve employment opportunities, spur economic growth and diversify business activity. Qualifying new plant & equipment in a zone receives a total exemption for at least three and-in some cases-up to five consecutive years from the local assessment of ad valorem property taxes, which can otherwise have a deterring effect on private investors seeking to start or enlarge operations with a substantial capital outlay. Enterprise zone property (except hotel/resorts and utilities) also is exempt for up to two years while it is being constructed or installed.

Business Firm Eligibility

Prior to commencing construction/installations, an eligible business firm submits an application in order for local officials to “authorize” it. Eligible firms include manufacturers, processors, shippers and other operations that serve other organizations, as well as headquarters and call centers. Also, hotels, motels and resorts in 31 of the 49 zones are eligible as result of local governments’ option. In the four specially designated “E-commerce” enterprise zones, any electronic commerce operation is eligible and may receive a special income tax credit. Otherwise, retail, construction, financial and certain other activities are explicitly ineligible under the statutes.

Qualified Property

A new building, modification/addition to a building, or new machinery or equipment qualify for exemption, but not land, previously used property and minor personal property items.

Requirements

In order for the business firm to qualify include:

3-year enterprise zone exemption**

  1. Increase full-time, permanent employment of the firm inside the enterprise zone by the greater of one new job or 10 percent (except for special-case local sponsor waivers)
  2. No concurrent job losses more than 30 miles from the zone
  3. Maintain employment levels during exemption period
  4. Enter into first-source agreement with local job training providers
  5. Satisfy local additional conditions, potentially imposed in an urban enterprise zone.

Long-Term Rural Enterprise Zone Tax Incentives (1997 through 2006)

In certain “nonurban” enterprise zones-those inside a “county with chronically low income or chronic unemployment”-all property taxes on an entire qualified facility may be exempted during construction and then for 7 to 15 years. With the Governor’s approval, corporate income tax credits can supplement this property tax relief. Special criteria restrict these incentives to rather exceptional investments in terms of minimum investment cost and a minimum number of new hires, which depend on the facility’s location and the county’s size, in addition to requirements equivalent to those noted above for the 5-year exemption.

*Two Other Tangible Benefits for an Authorized Business Firm (regular, short-term exemption) are: (1) local government incentives such as fee waivers, reduced charges or regulatory/procedural expediency that are commonly part of the overall enterprise zone package, and (2) the firm has the right to buy or lease real estate in the zone that is publicly owned and otherwise available.

**An urban enterprise zone may set local additional conditions related to employment.

Tax Rates 2003/2004

Tax rates for the City of Condon

M50 M5
Tax Rate Tax Rate
Gilliam County $ 3.8450
City of Condon $ 7.2820
So. Gilliam Cemetery $ 0.3699
So. Gilliam Health $ 0.8293
Gen. Government Total $ 12.3262 $ 10.0000
School District 25J $ 3.3143
School Dist. 25J (Local) $ 2.7500
E.S.D. $ 2.0193
Education Total $ 8.0836 $ 5.0000
Total Limited Code Rate $ 20.4096 $ 15.0000
NORCOR (unlim.) $ 0.4199
School Dist. 25J (unlim) $ 1.2440
City of Condon (unlim) $ 1.3332
Total Code Rate $ 23.4069 $ 17.9971

Tax rates for surrounding area of Condon

M50 M5
Tax Rate Tax Rate
Gilliam County $ 3.8450
So. Gilliam Cemetery $ 0.3699
So. Gilliam RFPD $ 0.3332
So. Gilliam Health $ 0.8293
Gen. Government Total $ 5.3774 $ 5.3774
School District 25J $ 3.3143
School Dist. 25J (Local) $ 2.7500
E.S.D. $ 2.0193
Education Total $ 8.0836 $ 5.0000
Total Limited Code Rate $13.4610 $10.3774
NORCOR (unlim.) $ 0.4199
School District 25J (unlim) $ 1.2440
Total Code Rate $15.1249 $12.0413

For more information on these and other taxes throughout Gilliam County you can contact the Gilliam county Tax Collector at 541-384-6321 or the Gilliam County Assessor at 541-384-3781.

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