EXTENDED TAX ABATEMENT — General Points
With respect to an extended period of property tax abatement longer than three years under ORS 285C.160 and 285C.175(2)(b):
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.
The exemption shall revert to the basic three-year period upon failure to satisfy an applicable requirement onlyin OAR 123-674-0600 or 123-674-0700, triggeringrepayment of taxes abated (only) in the fourth or fifth year if there areany.
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(1)(a), (e) or (f). What property is exempt for only three years or may receive additional years of exemption shall be described in:
The written agreement in OAR 123-674-0700; or
Specific notice provided to the county assessor from the firm or property owner no later than April 1 directly following the third exemption year.
An eligible business firm has the same rights of appeal as provided elsewhere in ORS 285C.050 to 285C.250 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 are inapplicable and are not to be included in the written agreement described in OAR 123-674-0700 of any qualified business firm, for which at the time that the Application was submitted, its qualified property is located inside:
An urban enterprise zone; and
A metropolitan statistical area with a total population of 400,000 or greater, based on the most recent U.S. Census count or estimates available from the Portland State University Population Research Center.
As such, at the time of this rulemaking, this section pertains only to zones inside the regional or metropolitan urban growth boundaries (UGBs) consistent with OAR 123-650-0700 of Salem with Keizer and of Portland and Hillsboro with all other cities inside the Metro UGB.