Gainshare

In 2007 the Oregon State Legislature passed Senate Bill 954 which created Gainshare. Gainshare restores fairness between the State of Oregon and local governments that are involved in Strategic Investment Program (SIP) agreements. That is, the some partial trade-off for limiting local property taxes is to grant eligible local governmental a share of the personal income tax revenue generated by the retention and creation of SIP-related jobs. Presently, gainshare increases tax revenues are shared 50/50 with the state and local government.

Oregon’s SIP is one tool that cities can use to encourage economic development and investment in Oregon. The Strategic Investment Program provides any trade-sector business with a property tax abatement on a portion of their new business capital for a qualified project. To qualify for the SIP property tax abatement program, the projects investment must be very large, greater than $100 million for urban areas and greater than $25 million for rural areas located outside cities’ urban growth boundary. Property taxes are abated on the property investments over the $100/$25 million thresholds.