Oregon
Rule Rule 123-668-2100
Basic Parameters


For purposes of local, additional requirements imposed by an enterprise zone sponsor:

(1)

They shall apply to a qualified business firms direct receipt of the tax abatement, only:

(a)

With respect to operations inside (or nearby and affected by operations in) the enterprise zone; and

(b)

Between the time when:

(A)

The firm receives authorization (certification in the case of the long-term rural tax incentives); and

(B)

December 31 of the final year when the overall enterprise zone exemption expires. (A zone sponsor, however, might require through contractual agreement, as otherwise permissible by law, that if the business firm were later to shut down its eligible operations in the zone, it would be obligated to pay the sponsor a portion of the tax benefit that the firm had earlier received. For example, this amount might reasonably relate or vary according to how soon permanent stoppage of zone operations occurred after expiration of the exemption.)

(2)

Notwithstanding section (1) of this rule, the zone sponsor and the business firm may mutually agree, possibly with certain contingencies, to apply current requirements or provisions of an agreement to future situations described in OAR 123-668-2000.

(3)

They shall not require that the eligible business firms hiring, recruitment, promotion, training, compensation or treatment of its actual or potential employees, suppliers, contractors or customers be based on:

(a)

Those persons or businesses explicit residency or geographic location, consistent with OP-8236, Oregon Attorney General (April 20, 1995); or

(b)

Other legally impermissible criteria.
(4)(a) The consequence of a qualified business firms failing to satisfy an additional requirement is not necessarily disqualification or loss of property tax benefits;

(b)

If that is the expected consequence, then it behooves the zone sponsor to stipulate as much, especially in the case of any such requirement respective to OAR 123-668-2000(1); and

(c)

Pursuant to the agreement, resolution or final supporting documentation:

(A)

The firms failure may result rather in other penalties or repercussions through breach of contract or as otherwise stipulated; or

(B)

The firm might fulfill an alternative requirement to avoid disqualification. (An alternative requirement shall not preclude the firms disqualification, if the firm later fails to fulfill the alternative requirement or any other requirement)
Source
Last accessed
Aug. 18, 2019