OAR 123-674-3100
Limitations on Exemption Relative to Authorization

The Application and the information in it restrict what qualified property may receive exemption under ORS 285C.170 (Construction-in-process exemption) or 285C.175 (Enterprise zone exemption) in only the following four ways under ORS 285C.180 (Qualified property generally)(2)(d) to (f) and 285C.225 (Sponsor’s addendum)(3), in that any qualified property must be:

(1)

Possessed for use by the Firm/applicant or qualified business firm:

(a)

In that the firm must either own the property or lease it consistent with OAR 123-674-5500 (Obligations for All Leases, Lessors and Lessees).

(b)

Except as allowably transferred to another eligible business firm acquiring the authorized firm or the property, including but not limited to OAR 123-674-3200 (Amending the Application/Authorization)(1)(a) or (3)(c) or 123-674-4800 (Sale or Leasing of Exempt Property).

(2)

At the same general location when the exemption begins:

(a)

That encompasses a single, coherent area of business operations;

(b)

Which may consist of a complex of lots or parcels of land or of a comparably proximate set of multiple sites, such that each lot, parcel or site is separated one from the other by commonly owned land, and not otherwise broken up except by roads, easements and so forth; and

(c)

Which the Firm/applicant need not describe in whole, such that inclusion in the Application of a street address or tax lot within the overall area is sufficient.

(3)

Generically identified in terms of:

(a)

Any building or structure, which has construction, reconstruction or modification costs of $50,000 or more; the Application’s reference to a project, for which associated improvements are implicit, may be treated as adequate for this subsection.

(b)

The basic category of property, regardless of cost, as represented in some way with respect to:

(A)

Newly constructed buildings/structures;

(B)

Additions to or modifications to existing buildings, structures or portions thereof;

(C)

Newly installed real property machinery & equipment;

(D)

Modifications to real property machinery & equipment under ORS 285C.190 (Requirements for qualifying reconditioned, refurbished, retrofitted or upgraded property); or

(E)

Newly installed personal property.

(4)

Placed in service over not more than three successive years, such that:

(a)

Once the business firm successfully claims any exemption pursuant to the Application (whether later or earlier than anticipated), subsequent exemptions may be claimed based on the same Application only in one or both of the next two years. This is true regardless of an extended abatement or the length of the underlying periods of exemption.

(b)

Additional qualified property covered by each subsequent exemption necessitates its being:

(A)

Placed in service during the first or second year of the initial exemption; and

(B)

Listed in a new property schedule under ORS 285C.225 (Sponsor’s addendum), as filed with the same exemption claim for that and prior property (see OAR 123-674-6100 (Mandatory First-year Claim with Property Schedule) and 123-674-6200 (Filing Latter-year Claims)).

(c)

Each exemption as described in this section shall enjoy its own three to five-year exemption period, which will overlap.

(d)

All overlapping and ongoing exemptions for purposes of this section are subject to disqualification for noncompliance of the business firm based only on the requirements arising from that Application.

Source: Rule 123-674-3100 — Limitations on Exemption Relative to Authorization, https://secure.­sos.­state.­or.­us/oard/view.­action?ruleNumber=123-674-3100.

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. 24, 2021

Rule 123-674-3100’s source at or​.us