OAR 123-674-8100
Authorization and Zone Termination

In relation to OAR 123-650-9100 (ZONE TERMINATION — Events and Timing):

(1)

For purposes of exemption under ORS 285C.175 (Enterprise zone exemption) in a sun-setting or terminating enterprise zone, an eligible business firm is authorized and may claim the exemption—subject to section (2) of this rule, OAR 123-674-8300 (Timely Completion of Construction) and other applicable requirements—if:

(a)

Its outstanding authorization was still active under ORS 285C.165 (Extension of period of authorization) at the time of termination; or

(b)

The local zone manager received the Application before the effective date of the zone’s termination, and the zone sponsor and the county assessor subsequently approved the Application under ORS 285C.140 (Application for authorization) after termination, but:

(A)

In this case, if the firm is not otherwise qualified or actively authorized in the terminated zone, it may not grandfather in the zone under ORS 285C.245 (Termination)(1)(b) according to OAR 123-674-8200 (Grandfathering in a Terminated Zone).
(B) This subsection is superseded by section (5) of this rule as enterprise zones terminating under ORS 285C.245 (Termination)(2) on July 1, 2025.
(2) For any authorized business firm described in section (1) of this rule, its authorization expires on January 1 directly after the 30th month following the zone’s termination, such that only if qualified property proposed pursuant to the Application is in service before that date may the firm claim and receive the exemption under ORS 285C.245 (Termination)(1)(a)(B). (As such, the authorization also remains active but may not be extended, irrespective of ORS 285C.165 (Extension of period of authorization), for qualified property remaining outside of a current enterprise zone)
(3) For an Application received after an enterprise zone’s termination, the Firm/applicant must satisfy the grand-fathering provisions in accordance with OAR 123-674-8200 (Grandfathering in a Terminated Zone), in order to be approved with respect to any investment in qualified property at a location anywhere in the terminated zone that remains outside a currently designated enterprise zone.
(4) An eligible business firm that has the site of its (proposed) qualified property in the zone (inadvertently) removed by a boundary change, notwithstanding ORS 285C.115 (Change of zone boundaries)(2)(b), has the same rights and privileges as provided in this rule (but not OAR 123-674-8200 (Grandfathering in a Terminated Zone)) based on the effective date of the boundary change, as if the zone had terminated.

(5)

Respective to termination of any existing enterprise zone under ORS 285C.255 (Sunset of enterprise zone program) (programmatic sunset of the standard enterprise zone program):

(a)

Application must be made on or before June 29, 2025, and approved no later than the very next day;

(b)

Any such authorized business firm may avail itself of the grand-fathering provisions in accordance with OAR 123-674-8200 (Grandfathering in a Terminated Zone); and

(c)

Ongoing use of such grandfather provisions in any previously terminated zone is unaffected.

Source: Rule 123-674-8100 — Authorization and Zone Termination, https://secure.­sos.­state.­or.­us/oard/view.­action?ruleNumber=123-674-8100.

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 123-674-8100’s source at or​.us