OAR 123-674-4300
Local Waiver of Employment Increase inside Zone

For purposes of ORS 285C.200 (Qualifications of business firm)(2), in which the local enterprise zone sponsor waives the required increase in the employment of the firm:

(1)

With such a waiver, the requirements described in OAR 123-674-4100 (Employment Requirement to Qualify Initially)(1) or 123-674-4600 (Maintaining Sufficient Employment)(1) do not apply, but requirements or restrictions related to transferring existing employment or operations into the zone from elsewhere in Oregon still matter, consistent with OAR 123-674-4100 (Employment Requirement to Qualify Initially)(3), 123-674-4200 (Diminishing Employment Well beyond the Zone) and 123-674-4600 (Maintaining Sufficient Employment)(2), and are not subject to any such waiver.

(2)

Each governing body of the sponsor must adopt a resolution under ORS 285C.155 (Minimum employment and other requirements for authorization):

(a)

Before authorization of the eligible business firm;

(b)

Stipulating the minimum employment level to be maintained during the exemption as described in section (4) of this rule; and

(c)

Identifying any other reasonable condition in accordance with OAR 123-668.

(3)

The resolution(s) described in section (2) of this rule shall incorporate either:

(a)

The minimum amount of investment according to section (5) of this rule; or

(b)

Specifications and methods for managing, measuring and enforcing the requirements under ORS 285C.205 (Effect of productivity increases on qualification of certain firms), by which the authorized business firm shall effectively:

(A)

Increase productivity by 10 percent; and

(B)

Dedicate to employee or workforce training an amount at least equal to 25 percent of the property tax savings through deposits into an account as described in OAR 123-668-1600 (Funds Derived through an Enterprise Zone)(2).

(4)

The minimum employment as stipulated in the resolution(s):

(a)

Is a single, stated number of employees;

(b)

May be determined, as indicated in the resolution(s), by way of either Annual Employment or Claim Employment; and

(c)

Relative to Existing Employment, it:

(A)

May be lower for a waiver under ORS 285C.200 (Qualifications of business firm)(2)(b)(A) subject to section (5) of this rule; or

(B)

Shall be at least the same if using the productivity and workforce training provisions for a waiver under ORS 285C.200 (Qualifications of business firm)(2)(b)(B) according to subsection (3)(b) of this rule.

(5)

For a waiver based on ORS 285C.200 (Qualifications of business firm)(2)(b)(A), the authorized business firm must make an investment in qualified property under ORS 285C.050 (Definitions for ORS 285C.050 to 285C.250):

(a)

That is placed in service over as many as three successive years, at one or more locations inside the same enterprise zone (… and pursuant to as many Applications inasmuch as property at such locations is also to be exempt);

(b)

Regardless that some such qualified property is not actually exempt under ORS 285C.175 (Enterprise zone exemption), including but not limited, for example, to the property’s not being used in eligible activities; and

(c)

The total cost of which consistent with OAR 123-674-5000 (QUALIFIED PROPERTY— Critical Terms) is at least $25,000,000.

(6)

Prior to July 1 of the first tax year of exemption, the sponsor may (jointly) modify its resolution in accordance with sections (2) to (4) of this rule, but only if so requested by the firm.

(7)

Failure to satisfy the minimums, requirements or conditions, as described in this rule, shall result in the exemption’s denial or disqualification, except if the firm otherwise meets requirements described in OAR 123-674-4100 (Employment Requirement to Qualify Initially)(1) or 123-674-4600 (Maintaining Sufficient Employment)(1). The county assessor is in no way obligated to consider the firm’s compliance with respect to any requirement arising from subsection (2)(c) or (3)(b) of this rule without formal confirmation from the zone sponsor.

Source: Rule 123-674-4300 — Local Waiver of Employment Increase inside Zone, https://secure.­sos.­state.­or.­us/oard/view.­action?ruleNumber=123-674-4300.

123‑674‑0001
Purpose, Scope and General Process for Businesses Seeking Exemption 123‑674‑0100
Definitions 123‑674‑0200
General Employment Terminology and Issues 123‑674‑0500
EXTENDED TAX ABATEMENT — General Points 123‑674‑0600
Compensation & Wage Standards 123‑674‑0700
Written Agreement between Sponsor and Eligible Business Firm 123‑674‑1000
BUSINESS ELIGIBILITY — Special Business Distinctions 123‑674‑1100
Basic Eligibility of Firms and Operations 123‑674‑1200
Ineligible Activities 123‑674‑1300
Eligible Business Firm with Ineligible Activities 123‑674‑1400
Gross Receipts Test 123‑674‑1600
Call Centers and Like Operations 123‑674‑1700
Headquarter Facilities 123‑674‑2000
AUTHORIZATION PROCESS — Timely Submission 123‑674‑2100
Allowably Late Applications 123‑674‑2300
Initial Processing by Local Zone Manager 123‑674‑2500
Final Processing 123‑674‑3000
AUTHORIZATION’S COVERAGE & EFFECT — Being An Authorized Firm 123‑674‑3100
Limitations on Exemption Relative to Authorization 123‑674‑3200
Amending the Application/Authorization 123‑674‑3500
Additional, Concurrent Authorizations 123‑674‑3700
Renewal of Active Status and Inactive Authorization 123‑674‑4000
EMPLOYMENT OF FIRMS — Computation of Averages 123‑674‑4100
Employment Requirement to Qualify Initially 123‑674‑4200
Diminishing Employment Well beyond the Zone 123‑674‑4300
Local Waiver of Employment Increase inside Zone 123‑674‑4600
Maintaining Sufficient Employment 123‑674‑4800
Sale or Leasing of Exempt Property 123‑674‑5000
QUALIFIED PROPERTY— Critical Terms 123‑674‑5100
Eligible Utilization 123‑674‑5200
Mechanical, Personal and Unqualified Property 123‑674‑5300
Buildings, Structures and Other Real Property 123‑674‑5400
Property Already Entered on Rolls 123‑674‑5500
Obligations for All Leases, Lessors and Lessees 123‑674‑6000
FILING & COMPLIANCE — Exemption Prior To ‘In Service’ 123‑674‑6100
Mandatory First-year Claim with Property Schedule 123‑674‑6200
Filing Latter-year Claims 123‑674‑6300
Disqualification of Particular Property 123‑674‑6400
General Firm Disqualification 123‑674‑6600
PAYBACK IN LIEU OF DISQUALIFICATION — Applicability 123‑674‑6610
Payment of Tax Savings 123‑674‑6620
Distribution of Payment among Cosponsors 123‑674‑6630
Utilization of Payments 123‑674‑6880
Deferral during Recession 123‑674‑6885
Additional Conditions with Deferral 123‑674‑7200
GENERAL LAWFULNESS — Terminology 123‑674‑7210
Declarations and Responsibilities 123‑674‑7220
Effect of Event of Noncompliance 123‑674‑7230
Materiality 123‑674‑7240
Cure 123‑674‑7250
Interpretation 123‑674‑7700
FIRST SOURCE HIRING AGREEMENTS — Coverage 123‑674‑7710
First-Source Procedures 123‑674‑7720
Handling Exemption Claims 123‑674‑7730
Allowing Late Execution of First-Source Agreement 123‑674‑8000
ZONE BEGINNINGS & ENDS — Designation or Amendment 123‑674‑8100
Authorization and Zone Termination 123‑674‑8200
Grandfathering in a Terminated Zone 123‑674‑8300
Timely Completion of Construction
Last Updated

Jun. 8, 2021

Rule 123-674-4300’s source at or​.us