ORS 285C.203
Suspension of employment requirements
- resumption of exemption period
- sponsor resolution required
(1)
Intentionally left blank —Ed.(a)
The sponsor of an enterprise zone may suspend the obligation of a qualified business firm to meet the employment requirements of ORS 285C.200 (Qualifications of business firm) for a period not to exceed two consecutive years if:(A)
For two or more consecutive calendar quarters in the previous 12 months, as defined by the most recently available data published or officially provided and verified by the United States Government or the Employment Department:(i)
There has been a decline statewide in seasonally adjusted nonfarm payroll employment; and(ii)
The unemployment rate of the county in which the qualified property of the firm is located has been at least two percentage points greater than the comparable unemployment rate for this state; and(B)
The qualified business firm has completed an investment in qualified property of at least:(i)
$4 million if the qualified property is in a rural enterprise zone; or(ii)
$8 million if the qualified property is in an urban enterprise zone.(b)
At the time a period of suspension is granted, the sponsor must specify a minimum number of employees greater than zero that the qualified business firm is required to employ during the period of suspension.(2)
Intentionally left blank —Ed.(a)
The granting of a period of suspension under subsection (1) of this section does not affect an eligible business firm’s status as an authorized business firm under ORS 285C.140 (Application for authorization).(b)
During the period of suspension:(A)
The qualified business firm is not exempt from taxation under ORS 285C.175 (Enterprise zone exemption); and(B)
Notwithstanding subparagraph (A) of this paragraph, the qualified business firm must file an exemption claim as required under ORS 285C.220 (Exemption claims) and 285C.225 (Sponsor’s addendum).(c)
The period of suspension does not count toward the total period of time for which exemption from taxation is allowed under ORS 285C.175 (Enterprise zone exemption).(d)
Intentionally left blank —Ed.(A)
After the period of suspension has ended, the qualified business firm is eligible to resume exemption from taxation for the period of time remaining under ORS 285C.175 (Enterprise zone exemption).(B)
To resume exemption under subparagraph (A) of this paragraph, the qualified business firm must satisfy the requirements of ORS 285C.200 (Qualifications of business firm) for the remaining period of exemption, including, but not limited to, any reduced employment level pursuant to subsection (4) of this section, which must also be met on or before April 1 preceding the first tax year after the period of suspension if the qualified business firm received at least one year of exemption under ORS 285C.175 (Enterprise zone exemption) before the period of suspension began.(3)
Intentionally left blank —Ed.(a)
The sponsor’s actions under subsection (1) of this section are not effective unless set forth in a resolution adopted by the governing body of the sponsor no later than the earlier of:(A)
Sixty days after the date on which the sponsor notifies the qualified business firm that the sponsor intends to act pursuant to subsection (1) of this section; or(B)
August 31 of the first year of suspension.(b)
A resolution adopted under this subsection may be revoked or amended by the sponsor at any time during the period of suspension.(4)
A resolution adopted under subsection (3) of this section may reduce the employment level required under ORS 285C.200 (Qualifications of business firm) (1)(c) after the period of suspension.(5)
A sponsor shall promptly provide to the county assessor:(a)
A copy of a resolution adopted under subsection (3)(a) of this section;(b)
A copy of a resolution as amended under subsection (3)(b) of this section; and(c)
Notice that a resolution has been revoked under subsection (3)(b) of this section. [2010 c.39 §2; 2017 c.83 §6](b)
A resolution may be adopted pursuant to this subsection under any procedures or authority permitted under state and local law applicable in a declared public health emergency.(c)
A resolution adopted pursuant to this subsection must set forth criteria for establishing that the COVID-19 pandemic prevented the qualified business firm from meeting the employment requirements of ORS 285C.200 (Qualifications of business firm), including:(A)
Compliance with mandatory public health safety measures or closures;(B)
Mandatory limitations on facility capacity;(C)
A decrease in receipts;(D)
A reduction in sales;(E)
Disruption of the firm’s access to markets or supply chains; or(F)
Other factors attributable to the COVID-19 pandemic.(d)
A resolution adopted pursuant to this subsection is not subject to the alternative deadline in ORS 285C.203 (Suspension of employment requirements) (3)(a)(B).(2)
Intentionally left blank —Ed.(a)
The resolution described in subsection (1) of this section is not effective unless adopted by the governing body of the enterprise zone on or before the later of June 30 immediately preceding the property tax year for which suspension is sought or 45 days following the effective date of this 2021 Act [September 25, 2021].(b)
The resolution may provide that the suspension applies to either or both of the property tax years beginning on July 1, 2021, and July 1, 2022.(3)
A resolution for suspension adopted pursuant to this section has the following effects:(a)
Tolling the deadline for claiming exemption for additional property under ORS 285C.225 (Sponsor’s addendum) (3)(b) until after the period of suspension has ended, if so provided in the resolution.(b)
Converting the denial under ORS 285C.175 (Enterprise zone exemption) of an exemption on qualified property that would otherwise have begun on July 1, 2021, into a one-year period of suspension beginning on that date.(4)
Any curtailment of operations that is permitted under a resolution adopted pursuant to this section is not subject to ORS 285C.240 (Disqualification) (1)(b). [2021 c.522 §2](a)
The governing body of the sponsor adopts a resolution, on or before the later of June 30 immediately preceding the property tax year for which exemption is sought or 45 days following the effective date of this 2021 Act [September 25, 2021], that sets forth:(A)
Procedures for allowing the sponsor to grant the exemption;(B)
Standards for establishing a minimum number of employees of an authorized business firm; and(C)
Criteria for establishing that the COVID-19 pandemic prevented the authorized business firm from meeting the qualifications under ORS 285C.200 (Qualifications of business firm) (1)(c), (d) or (e) or (2), including:(i)
Compliance with mandatory public health safety measures or closures;(ii)
Mandatory limitations on facility capacity;(iii)
A decrease in receipts;(iv)
A reduction in sales;(v)
Disruption of the firm’s access to markets or supply chains; or(vi)
Other factors attributable to the COVID-19 pandemic;(b)
A copy of the resolution is provided to the county assessor, the Department of Revenue and the Oregon Business Development Department within 30 days following the adoption of the resolution;(c)
Within 30 days following the date on which the sponsor grants the exemption, the sponsor provides the county assessor with written notice that the exemption has been granted; and(d)
The authorized business firm satisfies the requirements established under the resolution adopted pursuant to this subsection and any otherwise applicable requirements under ORS 285C.050 (Definitions for ORS 285C.050 to 285C.250) to 285C.250 (Redesignation or designation of new zone following zone termination), including, but not limited to, filing a claim that contains employment data for purposes of ORS 285C.220 (Exemption claims).(2)
A resolution may be adopted pursuant to subsection (1) of this section under any procedures or authority permitted under state and local law applicable in a declared public health emergency.(3)
A resolution adopted pursuant to subsection (1) of this section may grant an exemption, or continuation of an exemption, for property tax years beginning on or after July 1, 2021, and before July 1, 2023.(4)
Failure of an authorized business firm to meet any requirement adopted pursuant to subsection (1) of this section shall be subject to the notice requirements and disqualification of the authorized business firm’s qualified property under ORS 285C.240 (Disqualification), unless the firm satisfies the requirements of ORS 285C.200 (Qualifications of business firm) without the exceptions allowed under subsection (1) of this section.(5)
Any curtailment of operations that is permitted under a resolution adopted pursuant to this section is not subject to ORS 285C.240 (Disqualification) (1)(b).(6)
A county assessor is not obligated to verify compliance of an authorized business firm with any requirement imposed on the firm by a sponsor pursuant to this section.(7)
The governing body of a sponsor that adopts a resolution pursuant to subsection (1) of this section shall submit a written report to the Oregon Business Development Department detailing the implementation of the resolution. [2021 c.522 §3](a)
A qualified business firm to which a resolution to suspend adopted pursuant to section 2 of this 2021 Act applies; and(b)
An authorized business firm whose qualified property is exempt under a resolution adopted pursuant to section 3 of this 2021 Act.(2)
Intentionally left blank —Ed.(a)
Notwithstanding ORS 285C.240 (Disqualification) (6)(b), the sponsor that adopted the applicable resolution and that collected from the business firm under ORS 285C.240 (Disqualification) (6)(a) an amount equal to the property taxes for qualified property of the business firm that would otherwise have been due for the assessment years beginning on January 1, 2020, or January 1, 2021, may refund to the business firm, without interest, all or any part of the amount so collected.(b)
The notice given by the business firm to the county assessor under ORS 285C.240 (Disqualification) (1) with respect to paragraph (a) of this subsection shall not count as the first notice given by the business firm for purposes of ORS 285C.240 (Disqualification) (6)(c). [2021 c.522 §4]
Source:
Section 285C.203 — Suspension of employment requirements; resumption of exemption period; sponsor resolution required, https://www.oregonlegislature.gov/bills_laws/ors/ors285C.html.
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