OAR 123-674-6400
General Firm Disqualification

(1)

Loss of exemption under ORS 285C.175 (Enterprise zone exemption) applies to all qualified property of a firm that is exempt in the year when an event occurs, for which notice is due under ORS 285C.240 (Disqualification)(1)(b), (c) or (d), including but not limited to:

(a)

Substantial curtailment, consistent with OAR 123-674-4600 (Maintaining Sufficient Employment);

(b)

Failure to satisfy an applicable local additional requirement, according to OAR 123-668, and pursuant to written notification to the assessor from the zone sponsor;

(c)

Noncompliance with any general law in accordance with OAR 123-674-7200 (GENERAL LAWFULNESS — Terminology) to 123-674-7250 (Interpretation);
(d) Not meeting applicable criteria in OAR 123-674-4300 (Local Waiver of Employment Increase inside Zone) for purposes of a zone sponsor’s waiver; or
(e) What is described in OAR 123-674-0500 (EXTENDED TAX ABATEMENT — General Points)(2) for the requirements specific to an extended abatement.

(2)

If an event occurs relative to section (1) of this rule, then the qualified business firm shall notify both the local zone manager and the county assessor in writing at the latest by July 1 of the following year, which may also be done:

(a)

Through timely filing of the exemption claim in 123-674-6200 (Filing Latter-year Claims) that discloses the event.

(b)

By the owner of any qualified property that the qualified business firm leases.

(3)

Notice as described in section (2) of this rule shall result in either:

(a)

The firm reimbursing the enterprise zone sponsor for an amount equal to all associated property taxes abated in that exemption year, as described in OAR 123-674-6600 (PAYBACK IN LIEU OF DISQUALIFICATION — Applicability) to 123-674-6630 (Utilization of Payments); or

(b)

The assessor disqualifying the firm under ORS 285C.240 (Disqualification), including loss of future years of the exemption and retroactive payment of applicable back taxes with the next tax bill.

(4)

If the assessor or zone sponsor discovers a failure, for which there was not timely notice as described in section (2) of this rule, then subsection (3)(a) of this rule is inapplicable, and disqualification as described in subsection (3)(b) of this rule shall include the 20-percent penalty or surcharge on back taxes.

(5)

Disqualification for purposes of this rule does not affect property covered by any other Application, for which the particular requirements are still satisfied, consistent with OAR 123-674-3500 (Additional, Concurrent Authorizations), except for another Application made after the zone terminated as described in OAR 123-674-8200 (Grandfathering in a Terminated Zone), in which case the other such Application is nullified, and associated property, also disqualified.

Source: Rule 123-674-6400 — General Firm Disqualification, https://secure.­sos.­state.­or.­us/oard/view.­action?ruleNumber=123-674-6400.

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 123-674-6400’s source at or​.us