Rule Rule 123-674-6400
General Firm Disqualification


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:


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


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;


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.


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:


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


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


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


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


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.


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.


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.
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Sep. 24, 2020