Oregon
Rule Rule 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)(3) 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 (i) 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), (g), (h) or (i) of this rule or similar activities with operations described in OAR 123-674-1600 (Call Centers) (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
Last accessed
Aug. 6, 2020