OAR 123-674-8200
Grandfathering in a Terminated Zone


Under ORS 285C.245 (Termination)(1)(b) and (c) after termination of an enterprise zone:
(1) In order for an eligible business firm to receive an exemption according to section (2) of this rule, the firm must have been on the effective date of the zone’s termination in that zone:
(a) A qualified business firm; or
(b) An actively authorized business firm consistent with OAR 123-674-8100 (Authorization and Zone Termination)(1)(a), but in that case no subsequent Application is allowed in section (2) of this rule, until an exemption is successfully claimed on qualified property pursuant to the outstanding authorization in accordance with OAR 123-674-8100 (Authorization and Zone Termination)(2) and (3).
(2) Qualified property owned or leased by the eligible business firm shall be exempt under ORS 285C.170 (Construction-in-process exemption) or 285C.175 (Enterprise zone exemption) subject to any other normally applicable requirement, if all of the following are true:
(a) Not more than 10 years from the effective date of termination, the firm submits a complete Application under ORS 285C.140 (Application for authorization), in accordance with OAR 123-674-2000 (AUTHORIZATION PROCESS — Timely Submission) and 123-674-2100 (Allowably Late Applications);
(b) The qualified property is to be located entirely within the boundaries of the terminated zone, as they existed at the time of termination, and not inside any currently designated enterprise zone;
(c) The eligible business firm’s Application is:
(A) Approved by the county assessor and:
(i) The local manager of the terminated zone; or
(ii) Absent an appointed zone manager, by a suitable representative or formal action of the zone sponsor, or by the Department; or
(B) Allowed on magisterial or judicial appeal.
(d) Construction, modification or installation of the qualified property pursuant to the Application commences no later than June 30 following the last year of the firm’s final outstanding exemption in the zone—that is, before the end of the very last tax year in which qualified property of the firm is still exempt;
(e) Completion of construction, additions, modification or installation occurs in accordance with OAR 123-674-8300 (Timely Completion of Construction);
(f) Timely exemption claim is made to the county assessor under ORS 285C.220 (Exemption claims) and 285C.225 (Sponsor’s addendum);
(g) The business firm and all of its qualified property have not been disqualified in the terminated zone consistent with OAR 123-674-6400 (General Firm Disqualification) or section (4) of this rule; and
(h) The authorized business firm complies with any applicable local policy or requirement, as well as ORS 285C.050 (Definitions for ORS 285C.050 to 285C.250) to 285C.250 (Redesignation or designation of new zone following zone termination), in effect when the zone terminated including but not limited to any requirement arising from or associated with authorization.
(3) The sponsor of a terminated enterprise zone may enter into a written agreement with an eligible business firm for an extended abatement under ORS 285C.160 (Agreement between firm and sponsor for additional period of exemption) prior to final action in paragraph (2)(c)(A) of this rule.
(4) Disqualification for purposes of ORS 285C.245 (Termination)(1)(c) does not include:
(a) Loss of an extended abatement under ORS 285C.240 (Disqualification)(3)(b) as described in OAR 123-674-0500 (EXTENDED TAX ABATEMENT — General Points)(2);
(b) Payment to the zone sponsor of the equivalent of one year’s tax savings under ORS 285C.240 (Disqualification)(6) according to OAR 123-674-6600 (PAYBACK IN LIEU OF DISQUALIFICATION — Applicability) to 123-674-6630 (Utilization of Payments); or
(c) Failure to meet a requirement pertaining to some but not all property consistent with OAR 123-674-6300 (Disqualification of Particular Property).
(5) An authorized or qualified business firm may not make Application as described in section (2) this rule, if since termination, another business or corporation has bought or absorbed the firm, such that the firm neither remains essentially intact, even as a subsidiary of the purchasing company, nor continues to operate substantially as it had prior to its being acquired.

Source: Rule 123-674-8200 — Grandfathering in a Terminated Zone, https://secure.­sos.­state.­or.­us/oard/view.­action?ruleNumber=123-674-8200.

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. 24, 2021

Rule 123-674-8200’s source at or​.us