Rule Rule 123-674-8200
Grandfathering in a Terminated Zone

Under ORS 285C.245 (Termination)(1)(b) and (c) after termination of an enterprise zone:


Qualified property owned or leased by an eligible business firm is exempt, if all of the following requirements are true:


On the effective date of the zone’s termination, the firm:


Was a qualified business firm; or


Had had an Application approved and was still actively authorized consistent with OAR 123-674-8100 (Authorization and Zone Termination)(1)(a) in that same zone;


Within 10 years after that effective date, 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);


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;


Neither the eligible business firm nor all of its qualified property has been disqualified in the terminated zone consistent with section (2) of this rule;


Construction, modification or installation of the qualified property commences on or before June 30 immediately following the last year of the firm’s final outstanding exemption in the zone (that is, by the end of the corresponding tax year);


The eligible business firm’s Application receives approval from the county assessor and the local manager of the terminated zone or , lacking a local zone manager, from the county assessor and either through the Department or by formal action of the zone sponsor, or on appeal;


Completion of construction, additions, modification or installation occurs in accordance with OAR 123-674-8300 (Timely Completion of Construction);


Timely exemption claim is made to the county assessor under ORS 285C.220 (Exemption claims) and 285C.225 (Sponsor’s addendum); and


The authorized business firm complies with all applicable requirements of 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.


Disqualification for purposes of ORS 285C.245 (Termination)(1)(c) does not include:


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);


Payment to the zone sponsor of the equivalent of one year’s tax savings under ORS 285C.240 (Disqualification)(6); or


Failure to meet a requirement pertaining to some but not all property as described in OAR 123-674-6300 (Disqualification of Particular Property).


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 subsection (1)(f) of this rule.


An authorized or qualified business firm may not make Application as described in this rule, if since termination, another business or corporation has bought or absorbed the firm, except if the firm remains essentially intact as a corporate entity, such as becoming a subsidiary to the purchasing corporation and continuing to operate substantially as it had prior to its being acquired.


If the eligible business firm is not qualified but only actively authorized at the time of the zone’s termination according subsection (1)(a) of this rule, then no subsequent Application may be approved in accordance with this rule, until an exemption is successfully claimed on qualified property pursuant to an outstanding authorization as described in OAR 123-674-8100 (Authorization and Zone Termination)(2).
Last accessed
Aug. 5, 2020