ORS 267.420: Employer payroll tax on State of Oregon and political subdivisions; requirements for tax ordinance.

(1) Any ordinance imposing an employer payroll tax on an entity described in ORS 267.380 (1)(a)(C) shall be adopted not less than six months prior to the beginning of the fiscal year of the mass transit district within which the employer payroll tax becomes effective.

      (2)(a) Any ordinance imposing an employer payroll tax on an entity described in ORS 267.380 (1)(a)(C) shall provide that for each of the four fiscal years after the fiscal year in which the employer payroll tax was first imposed, the entity shall pay the applicable percentage of the amount of employer payroll tax which, without regard to this section, it would have been required to pay under the law.

      (b) The applicable percentage shall be determined in accordance with the following table:

      Number of fiscal years      The applicable

      after the fiscal year           percentage is:

      in which the employer

      payroll tax is first

      imposed:

      One           20

      Two           40

      Three         60

      Four           80

      (c) In the fifth fiscal year after the fiscal year in which the employer payroll tax is first imposed on an entity described in ORS 267.380 (1)(a)(C) and in any subsequent fiscal year, the applicable percentage shall be 100 percent.