Oregon
Rule Rule 123-674-4300
Local Waiver of Employment Increase inside Zone


For purposes of ORS 285C.200 (Qualifications of business firm)(2), in which the local enterprise zone sponsor waives the required increase in the employment of the firm:

(1)

With such a waiver, the requirements described in OAR 123-674-4100 (Employment Requirement to Qualify Initially)(1) or 123-674-4600 (Maintaining Sufficient Employment)(1) do not apply, but requirements or restrictions related to transferring existing employment or operations into the zone from elsewhere in Oregon still matter, consistent with OAR 123-674-4100 (Employment Requirement to Qualify Initially)(3), 123-674-4200 (Diminishing Employment Well beyond the Zone) and 123-674-4600 (Maintaining Sufficient Employment)(2), and are not subject to any such waiver.

(2)

Each governing body of the sponsor must adopt a resolution under ORS 285C.155 (Minimum employment and other requirements for authorization):

(a)

Before authorization of the eligible business firm;

(b)

Stipulating the minimum employment level to be maintained during the exemption as described in section (4) of this rule; and

(c)

Identifying any other reasonable condition in accordance with OAR 123-668.

(3)

The resolution(s) described in section (2) of this rule shall incorporate either:

(a)

The minimum amount of investment according to section (5) of this rule; or

(b)

Specifications and methods for managing, measuring and enforcing the requirements under ORS 285C.205 (Effect of productivity increases on qualification of certain firms), by which the authorized business firm shall effectively:

(A)

Increase productivity by 10 percent; and

(B)

Dedicate to employee or workforce training an amount at least equal to 25 percent of the property tax savings through deposits into an account as described in OAR 123-668-1600 (Funds Derived through an Enterprise Zone)(2).

(4)

The minimum employment as stipulated in the resolution(s):

(a)

Is a single, stated number of employees;

(b)

May be determined, as indicated in the resolution(s), by way of either Annual Employment or Claim Employment; and

(c)

Relative to Existing Employment, it:

(A)

May be lower for a waiver under ORS 285C.200 (Qualifications of business firm)(2)(b)(A) subject to section (5) of this rule; or

(B)

Shall be at least the same if using the productivity and workforce training provisions for a waiver under ORS 285C.200 (Qualifications of business firm)(2)(b)(B) according to subsection (3)(b) of this rule.

(5)

For a waiver based on ORS 285C.200 (Qualifications of business firm)(2)(b)(A), the authorized business firm must make an investment in qualified property under ORS 285C.050 (Definitions for ORS 285C.050 to 285C.250):

(a)

That is placed in service over as many as three successive years, at one or more locations inside the same enterprise zone (… and pursuant to as many Applications inasmuch as property at such locations is also to be exempt);

(b)

Regardless that some such qualified property is not actually exempt under ORS 285C.175 (Enterprise zone exemption), including but not limited, for example, to the property’s not being used in eligible activities; and

(c)

The total cost of which consistent with OAR 123-674-5000 (QUALIFIED PROPERTY— Critical Terms) is at least $25,000,000.

(6)

Prior to July 1 of the first tax year of exemption, the sponsor may (jointly) modify its resolution in accordance with sections (2) to (4) of this rule, but only if so requested by the firm.

(7)

Failure to satisfy the minimums, requirements or conditions, as described in this rule, shall result in the exemption’s denial or disqualification, except if the firm otherwise meets requirements described in OAR 123-674-4100 (Employment Requirement to Qualify Initially)(1) or 123-674-4600 (Maintaining Sufficient Employment)(1). The county assessor is in no way obligated to consider the firm’s compliance with respect to any requirement arising from subsection (2)(c) or (3)(b) of this rule without formal confirmation from the zone sponsor.
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Last accessed
Nov. 24, 2020