OAR 123-674-7220
Effect of Event of Noncompliance

Upon an Event of Noncompliance:

(1)

In the case where an authorized business firm is not yet qualified, the county assessor shall deny exemption under ORS 285C.170 (Construction-in-process exemption) or 285C.175 (Enterprise zone exemption).

(2)

In the case where the firm is receiving or has received the exemption, the Event of Noncompliance shall cause retroactive disqualification (see OAR 123-674-6400 (General Firm Disqualification)).

(3)

In response to or in anticipation of such denial or disqualification, the assessor shall give notice that:

(a)

Is sent to the firm and is copied to the zone sponsor, the Department of Revenue and the Department;

(b)

Provides the firm with an explanation of the action and includes copies or descriptions of the evidence for the Determination; and

(c)

Explains how the firm may appeal the action, anticipated action or tax collections to the Tax Court under ORS 305.404 (Oregon Tax Court) to 305.560 (Appeals procedure generally), for which the firm’s right to directly do so is in no way infringed by this or any administrative rule or prevented under ORS 285C.200 (Qualifications of business firm)(7).

(4)

The county assessor may reverse a decision or action in section (1) or (2) of this rule, for reconsideration of an issue listed in OAR 123-674-7250 (Interpretation)(1) or a successful appeal that negates the Determination. As necessary to effect a reversal for this section, the assessor may reinstate the exemption and refund taxes paid on qualified property to the firm consistent with provisions of ORS Chapter 311 (Collection of Property Taxes).

(5)

If the Determination is appealed by the business firm through administrative or judicial channels under the law in question, then the assessor may indefinitely suspend disqualification in section (2) of this rule, such that:

(a)

If the business firm prevails in the appeal, then the exemption is unaffected; or

(b)

If the business exhausts, withdraws or effectively fails in its pursuit of such appeal, then the action takes effect. In such a case, the assessor may add interest to any back taxes during the intervening period for the appeals process, until the next general property tax roll, consistent with provisions of ORS Chapter 311 (Collection of Property Taxes).

(6)

In addition, if the firm is taking good faith actions to fully cure the Noncompliance in accordance with OAR 123-674-7240 (Cure), the firm may make a one-year (nonrefundable) payment in lieu of disqualification in section (2) of this rule, as described in OAR 123-674-6600 (PAYBACK IN LIEU OF DISQUALIFICATION — Applicability) to 123-674-6630 (Utilization of Payments), while the effectiveness of such cure is still pending.

Source: Rule 123-674-7220 — Effect of Event of Noncompliance, https://secure.­sos.­state.­or.­us/oard/view.­action?ruleNumber=123-674-7220.

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 123-674-7220’s source at or​.us