Legislator tries again to get special deal for Evergreen International Aviation nonprofits, which owe $1 million in taxes

A backer of legislation to expand property-tax exemptions for Evergreen International Aviation Inc.’s nonprofits is trying for a third time to bail out the McMinnville organizations, which are behind on more than $1 million in taxes and interest.

In the latest attempt, Oregon State Sen. Larry George, R-Sherwood, circulated a proposed amendment Monday custom-tailored to exempt portions of the Evergreen Aviation & Space Museum and other entities.

But lawmakers remained skeptical of the special-interest bid, which might have died already if not for the possibility that George could use it as a bargaining chip in negotiations over other legislation.

One problem is that the amendment is so broadly written that it could exempt the Wings & Waves Waterpark and any other Evergreen facilities from property taxes, according to John Phillips, an Oregon Revenue Department legislative liaison.

“The language … is so broad that there would appear to be no property that they could build or use on that site that would not qualify for this exemption,” Phillips wrote in a memo to legislators. “This issue is being litigated,” he added. “Now is not the time to preempt the court’s ruling on the current law.”

The Legislature usually avoids legislation tailored to specific companies, although recent counter examples include Nike and Intel, which received tax deals in exchange for promises of major expansions. The proposed Evergreen exemptions are more complicated in several respects.

For one thing, Evergreen’s commercial companies, once located across Oregon 18 from the museums, water park and theater, have filed for Chapter 7 bankruptcy. For another, an Oregon Justice Department investigation continues into allegations of commingled funds between the for-profit and nonprofit entities.

And as Phillips noted, legal challenges continue as Evergreen nonprofits appeal tax-exemption denials issued by Yamhill County assessors.

Sen. George did not respond to calls for comment Monday. But his mother, Yamhill County Commissioner Kathy George, wrote a letter with Allen Springer, a fellow commissioner, urging legislators to find a solution to the aviation museum’s tax impasse.

“This incredible, nationally and internationally acclaimed facility is in imminent danger of closing forever, and we are asking for your immediate help in averting this potential tragedy,” the commissioners wrote Thursday to Sen. Ginny Burdick, D-Portland, chairwoman of the Senate Finance and Revenue Committee, and Rep. Phil Barnhart, D-Eugene, chairman of the House Revenue Committee.

Legislative backers initially presented an Evergreen tax-exemption bill to the House Revenue Committee. After a cold reception there, they filed an amendment to House Bill 4003, which concerns federal tax law. The latest attempt would amend House Bill 4005, which would increase enterprise zones for electronic commerce.

– Richard Read

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