OAR 123-674-0001
Purpose, Scope and General Process for Businesses Seeking Exemption

(1)

This division of administrative rules clarifies, specifies and establishes elements of ORS 285C.050 (Definitions for ORS 285C.050 to 285C.250) to 285C.250 (Redesignation or designation of new zone following zone termination) (Oregon Enterprise Zone Act) for the determinations, procedures and requirements relevant to the three- to five-year exemption from property taxes under ORS 285C.175 (Enterprise zone exemption) on qualified property of eligible business firms in any enterprise zone.

(2)

The outline of these rules, regarding a business firm’s receipt of this exemption, is that:

(a)

The sponsor of the enterprise zone may extend the usually three-year period to four or five consecutive years in total by executing a written agreement with the firm before approval of the application in subsection (c) of this section.

(b)

The firm must be engaged in eligible activities as primarily determined with authorization.

(c)

The firm must apply for authorization, generally before any work begins on the new investment, and the local zone manager and the county assessor need to authorize the firm.

(d)

The firm must initially satisfy certain hiring criteria and then maintain corresponding employment minimums during the entire exemption period in order to first become and then stay qualified.

(e)

The exemption is primarily on certain new property and only for an authorized firm that timely claims the exemption with the assessor after it has placed the property in service; before that, it may be exempt under ORS 285C.170 (Construction-in-process exemption).

(3)

These administrative rules do not control or bind the county assessor or Department of Revenue and are superseded by OAR chapter 150 in matters related to tax administration including but not limited to rules for purposes of the statutory sections listed in ORS 285C.125 (Duties of Department of Revenue)(1).

Source: Rule 123-674-0001 — Purpose, Scope and General Process for Businesses Seeking Exemption, https://secure.­sos.­state.­or.­us/oard/view.­action?ruleNumber=123-674-0001.

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 123-674-0001’s source at or​.us