OAR 123-674-1700
Headquarter Facilities

For purposes of ORS 285C.135 (Requirements for eligibility)(5)(b):

(1)

A Firm/applicant and its operations are eligible, regardless of retail, financial, professional or other such ineligible activities, if:

(a)

The business is operating substantially at two or more locations including at least one place outside of the enterprise zone;

(b)

The operations in the zone support and serve the firm’s other operations or commercial pursuits throughout this state or throughout a multiple-state or larger region consistent with section (5) of this rule; and

(c)

In approving the Application, the local zone manager includes on behalf of the sponsor pursuant to the Preauthorization Conference under ORS 285C.140 (Application for authorization)(7) a formal finding that:

(A)

Describes how the proposed investment and the business firm will satisfy subsections (a) and (b) of this section, including indications of applicable services, relevant region and the relationship among intra-firm operations; and

(B)

Asserts that the proposed investment is significant for the enterprise zone and the local economy, succinctly explaining the reasons for this significance, such as the size of proposed operations relative to local measures of commerce, special job opportunities, diversification, strategic, marketing or visibility objectives of the zone, or other impacts.

(2)

As required under ORS 285C.180 (Qualified property generally)(2)(g), the business firm may not qualify for the exemption under ORS 285C.175 (Enterprise zone exemption), if the actual investment in qualified property does not substantively correspond to what was proposed in or with the Application. In determining if an actual investment is significantly inconsistent with such descriptions, relevant factors for the zone sponsor and county assessor to consider include but are not limited to:
(a) Is total cost of investment comparable to estimated costs? …, which under ORS 285C.185 (Minimum cost of qualified property)(2) is a matter only of relative amounts;
(b) Is the configuration and size of the building(s) similar to what was communicated or documented? …;
(c) Did the timing of construction and installation of machinery & equipment approximate what was anticipated? …;
(d) Will the facility undertake basically the same administrative, engineering or other (professional service) functions as proposed and otherwise fulfill the finding pursuant to paragraph (1)(c) of this rule? …; or
(e) Is facility employment for purposes of section (4) of this rule like what was predicted?

(3)

The local zone manager shall include the formal finding as part of the approved Application and may modify it prior to an authorized business firm qualifying for the exemption, consistent with an amendment for OAR 123-674-3200 (Amending the Application/Authorization).

(4)

For purposes of OAR 123-674-4000 (EMPLOYMENT OF FIRMS — Computation of Averages) to 123-674-4800 (Sale or Leasing of Exempt Property), as provided under ORS 285C.200 (Qualifications of business firm)(7)(b)(B), only the employees working at a facility described in this rule are counted consistent with OAR 123-674-0200 (General Employment Terminology and Issues)(3)(a), and as such, employees of the firm that are transferred to the facility from locations already in the zone may count toward the facility’s requisite increase in employment.

(5)

The main commercial pursuit of a business firm may itself be ineligible under ORS 285C.135 (Requirements for eligibility)(1) and (2), but if so, then a facility described in this rule may not be used significantly to carry out such operations, for example, as a center or base of activities or staff that provide services to customers. Rather, the facility must serve the firm’s internal needs with administration, logistics and so forth.

Source: Rule 123-674-1700 — Headquarter Facilities, https://secure.­sos.­state.­or.­us/oard/view.­action?ruleNumber=123-674-1700.

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 123-674-1700’s source at or​.us