A bill on the verge of reaching the floor of the Oregon House of Representatives would require opportunity zone funds in Oregon to provide information to state agencies, which would then study whether the tax benefits are providing public benefits.

House Bill 4010 would also reduce the generous tax treatment in state law of capital gains from opportunity zone funds, but not eliminate it entirely, as a previous version of the bill would have done.

Investors would pay capital gains tax on half the gains from the original basis after 10 years.

Bennett Minton, a tax watchdog with Tax Fairness Oregon, said the bill is a step in the right direction.

“Here we’re going to get a chance to study right now how it’s working,” he said.

Each opportunity zone fund would be required to submit an annual report to the Department of Business and Consumer Services. The reports, which would be due by Oct. 1, 2020, and each year thereafter, would contain a description of all assets held by the qualified opportunity funds, including addresses, and the ownership structure of any business in which the fund is invested, including whether the business is minority- or women-owned.

The House bill is in limbo, along with the rest of the short session, after Republican legislators walked out Monday, depriving the Legislature of a quorum.

The bill had its second reading Monday, and a third reading is scheduled for Tuesday. It’s sponsored by Rep. Nancy Nathanson, D-Eugene.

Opportunity zones have sparked considerable interest from investors, particularly in Portland, where an opportunity zone covers valuable real estate including much of downtown, the Pearl District and Central Eastside. Several projects, including the Block 216 tower, are using the funds.

Critics charge that the tax gains go to projects that would be built anyway, and decry the lack of information on how opportunity zones are being used. At the federal level, Sen. Ron Wyden, D-Oregon, has sponsored legislation that would institute reporting requirements.

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