OAR 123-674-0500
EXTENDED TAX ABATEMENT — General Points

With respect to an extended period of property tax abatement longer than three years under ORS 285C.160 (Agreement between firm and sponsor for additional period of exemption) and 285C.175 (Enterprise zone exemption)(2)(b):

(1)

The period in which a qualified business firm needs to comply with all regular enterprise zone requirements is also extended for up to two more years, exposing the firm to having to pay back all four or five years of abated taxes because of noncompliance and regular disqualification, for example, in the event of substantial curtailment in either of those two years.

(2)

The exemption shall revert to the basic three-year period upon failure to satisfy an applicable requirement only in OAR 123-674-0600 (Compensation & Wage Standards) or 123-674-0700 (Written Agreement between Sponsor and Eligible Business Firm), triggering repayment of taxes abated (only) in the fourth or fifth year if there are any.

(3)

Even as other property continues to receive the extended abatement, a qualified business firm may elect to have certain property terminate its exemption after the third year, such that it is then subject to taxation but not to retroactive disqualification under ORS 285C.240 (Disqualification)(1)(a), (e) or (f). What property is exempt for only three years or may receive additional years of exemption shall be described in:

(a)

The written agreement in OAR 123-674-0700 (Written Agreement between Sponsor and Eligible Business Firm); or

(b)

Specific notice provided to the county assessor from the firm or property owner no later than April 1 directly following the third exemption year.

(4)

An eligible business firm has the same rights of appeal as provided elsewhere in ORS 285C.050 (Definitions for ORS 285C.050 to 285C.250) to 285C.250 (Redesignation or designation of new zone following zone termination) for the enterprise zone exemption, and no part of this division of administrative rules shall interfere with those rights, subject to the determination of appellate authorities.
(5)(a) Requirements in OAR 123-674-0600 (Compensation & Wage Standards) are inapplicable and are not to be included in the written agreement described in OAR 123-674-0700 (Written Agreement between Sponsor and Eligible Business Firm) of any qualified business firm, for which based on the time when the Application was submitted, its qualified property is located inside:
(A) An urban enterprise zone; and
(B) A metropolitan statistical area with a total population of 400,000 or greater inside Oregon, based on the most recent estimate available from the Portland State University Population Research Center.
(b) As such, at the time of this rulemaking, this section pertains only to zones inside the urban growth boundaries of the Portland–Metro region and of Salem–Keizer.

Source: Rule 123-674-0500 — EXTENDED TAX ABATEMENT — General Points, https://secure.­sos.­state.­or.­us/oard/view.­action?ruleNumber=123-674-0500.

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 123-674-0500’s source at or​.us