OAR 123-674-1200
Ineligible Activities

For purposes of ORS 285C.135 (Requirements for eligibility)(2), (3) and (5):

(1)

The following activities are ineligible, and property used in any such activity may not qualify for an enterprise zone exemption, regardless that it serves other businesses:

(a)

Retail sales of goods or services;

(b)

Retail food service or serving of meals;

(c)

Tourism attractions or similar services;

(d)

Entertainment or recreation provided directly to the patron or user;

(e)

Child care or similar services;

(f)

Provision of health care, medical services or similar services to patients;

(g)

Professional services, such as accounting, communications, design, engineering, legal advice or management;

(h)

Actuary, appraisal, banking, brokerage, extension of credit, insurance, investment, money lending or similar financial services;

(i)

Leasing or management of real estate;

(j)

Provision of residential housing for purchase or lease;

(k)

Construction or modification of real property;

(l)

Installation of fixtures, machinery or equipment;

(m)

Leasing or contracting out employees to work even in eligible activities for another business;

(n)

Recreational vehicle parks; or

(o)

Other similar types of business operations.

(2)

A business firm is eligible, regardless of the presence within the enterprise zone of one or more activities listed in section (1) of this rule, if they are:

(a)

Separate consistent with OAR 123-674-1000 (BUSINESS ELIGIBILITY — Special Business Distinctions) and OAR 123-674-1300 (Eligible Business Firm with Ineligible Activities); or

(b)

Insignificant in accordance with 123-674-1400 (Gross Receipts Test).

(3)

Activities described in or comparable to subsections (1)(b) through (i) of this rule, as well as associated employees and property, are eligible if performed by the business firm:

(a)

Within the same enterprise zone; and

(b)

To directly support, benefit or provide amenities to eligible operations or associated personnel located mostly inside the zone. If, however, more than 25 percent of the activity supports or benefits the firm’s operations outside the zone in terms of person-time or costs, then the requirements of OAR 123-674-1700 (Headquarter Facilities) for headquarter-type facilities must be fulfilled.

(4)

Notwithstanding OAR 123-674-1100 (Basic Eligibility of Firms and Operations), an activity is eligible in the following cases:

(a)

Subsection (1)(a) to (j) of this rule or similar activities with electronic commerce operations located in an area designated as such, in accordance with OAR 123-662.

(b)

Subsection (1)(a) to (e) of this rule or similar activities with a hotel, motel or destination resort if:

(A)

Such businesses are eligible in that (part of the) enterprise zone as established in the Department’s determination in OAR 123-650-4900 (Agency Determinations) (or previously in a Director’s Order) consistent with the zone sponsor’s election or restriction(s) as described in OAR 123-650-4800 (Local Resolutions and Hotel/Resort Option)(2)(e); and

(B)

The activity is at the same location, and owned and operated in common with the hotel, motel or destination resort, and 50 percent or more of the activity’s receipts are derived from guests staying overnight there.

(c)

Subsection (1)(a), (d), (f) or (g) to (i) of this rule or similar activities with operations described in OAR 123-674-1600 (Call Centers and Like Operations) (Call Centers).

(d)

Subsection (1)(g) to (i) of this rule or similar activities with a facility described in OAR 123-674-1700 (Headquarter Facilities) (Headquarter Facilities).

Source: Rule 123-674-1200 — Ineligible Activities, https://secure.­sos.­state.­or.­us/oard/view.­action?ruleNumber=123-674-1200.

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 123-674-1200’s source at or​.us