Department of Justice Orders Release of More Hidden Tax Subsidy Data

Employment Information for Enterprise Zones Must Be Disclosed

OSPIRG

The Oregon Department of Justice has ordered the Oregon Department of Revenue to release employment data about Enterprise Zones, a major tax subsidy program estimated to cost Oregon taxpayers over $75 million in the next two years. This order comes just weeks after the DOJ ordered Business Oregon to disclose similar information for the Strategic Investment Program, reinforcing that there is a “strong public interest” in disclosing the information.
   
In February, the Department of Revenue denied key portions of a request by the Oregon State Public Interest Research Group (OSPIRG) to reveal information about the Enterprise Zone program, in which corporations receive a property tax break in exchange for a promise to create jobs and spur economic growth. OSPIRG had requested that the Department of Revenue disclose the recipients of this tax subsidy and what those recipients delivered in exchange for the money. When the Department of Revenue redacted key information, including the number of jobs created, OSPIRG filed a petition to the Attorney General. The Department of Revenue has seven days to either release the information or file suit to appeal the Department of Justice’s decision.

“When a private company takes public dollars, the public has a right to know whether the company is holding up their end of the deal and creating jobs,” said Celeste Meiffren, Consumer and Taxpayer Advocate with OSPIRG. “The Department of Justice has made it very clear, twice now, that information on how public dollars are spent is public information, so it’s time for state agencies to pull back the curtain.”

Since 2009, Oregon taxpayers have spent more than a billion dollars on corporate tax subsidies that are intended to create jobs and promote economic growth, while another $665 million is on tap to be spent in the next two years. Little information exists about whether these programs are delivering on their promise, despite a 2011 law intended to beef up disclosure of this spending on the Oregon Transparency Website.

OSPIRG is calling on Governor John Kitzhaber to step up the transparency of all corporate tax subsidy programs. In a forthcoming report, the group will release findings showing that the available information on most corporate tax subsidy programs is inadequate to evaluate their effectiveness.

“Governor Kitzhaber should stand up for taxpayers today and in the future by instructing his agencies to show the public whether companies that get state or local tax incentives in exchange for jobs are doing just that,” added Meiffren

Read the full Petition for Public Records Disclosure Order for Enterprise Zone reports here: http://ospirg.org/resources/orp/petition-public-records-order-enterprise-zones

Read last month’s Petition for Public Records Disclosure Order for the Strategic Investment Program here: http://www.ospirg.org/resources/orp/petition-public-records-disclosure-order