ORS 285C.175
Enterprise zone exemption

  • requirements
  • duration

(1)

Property of an authorized business firm is exempt from ad valorem property taxation if:

(a)

The property is qualified property under ORS 285C.180 (Qualified property generally);

(b)

The firm meets the qualifications under ORS 285C.200 (Qualifications of business firm); and

(c)

The firm has entered into a first-source hiring agreement under ORS 285C.215 (First-source hiring agreements).

(2)

Intentionally left blank —Ed.

(a)

Except as otherwise provided in ORS 285C.203 (Suspension of employment requirements):

(A)

The exemption allowed under this section applies to the first tax year for which, as of January 1 preceding the tax year, the qualified property is in service. The exemption shall continue for the next two succeeding tax years if the property continues to be owned or leased by the business firm and located in the enterprise zone.

(B)

The property may be exempt from property taxation under this section for up to two additional tax years consecutively following the tax years described in subparagraph (A) of this paragraph, if authorized by the written agreement entered into by the firm and the sponsor under ORS 285C.160 (Agreement between firm and sponsor for additional period of exemption).

(b)

If qualified property of a qualified business firm is sold or leased to an eligible business firm in the enterprise zone during the period the property is exempt under this section, the purchasing or leasing firm is eligible to continue the exemption of the selling or leasing firm for the balance of the exemption period, but only if any effects on employment within the zone that result from the sale or lease do not constitute substantial curtailment under ORS 285C.210 (Substantial curtailment of business operations).

(3)

Intentionally left blank —Ed.

(a)

The exemption allowed under this section shall be 100 percent of the assessed value of the qualified property in each of the tax years for which the exemption is available.

(b)

Notwithstanding paragraph (a) of this subsection:

(A)

If the qualified property is an addition to or modification of an existing building or structure, the exemption shall be measured by the increase in value, if any, attributable to the addition or modification.

(B)

If the qualified property is an item of reconditioned, refurbished, retrofitted or upgraded real property machinery or equipment, the exemption shall be measured by the increase in the value of the item that is attributable to the reconditioning, refurbishment, retrofitting or upgrade.

(4)

Intentionally left blank —Ed.

(a)

An exemption may not be granted under this section for qualified property assessed for property tax purposes in the county in which the property is located on or before the date on which:

(A)

Designation of the zone takes effect under ORS 285C.074 (Documentation for zone designation or redesignation to be submitted to department); or

(B)

A boundary change for the zone takes effect under ORS 285C.117 (Documentation for zone boundary change to be submitted to department) if the property is located in an area added to the zone.

(b)

An exemption may not be granted for qualified property constructed, added, modified or installed in the zone or in the process of construction, addition, modification or installation in the zone on or before the date on which:

(A)

Designation of the zone takes effect under ORS 285C.074 (Documentation for zone designation or redesignation to be submitted to department); or

(B)

A boundary change for the zone takes effect under ORS 285C.117 (Documentation for zone boundary change to be submitted to department) if the property is located in an area added to the zone.

(c)

An exemption may not be granted for any qualified property that was in service within the zone for more than 12 months by January 1 of the first assessment year for which an exemption claim is made, or 24 months, in the case of a late claim under ORS 285C.220 (Exemption claims) (9).

(d)

An exemption may not be granted for any qualified property unless the property is actually in use or occupancy before July 1 of the year immediately following the year during which the property was first placed in service.

(e)

Except as provided in ORS 285C.245 (Termination), an exemption may not be granted for qualified property constructed, added, modified or installed after termination of an enterprise zone.

(5)

Property is not required to have been exempt under ORS 285C.170 (Construction-in-process exemption) in order to be exempt under this section.

(6)

The county assessor shall notify the business firm in writing whenever property is denied an exemption under this section. The denial of exemption may be appealed to the Oregon Tax Court under ORS 305.404 (Oregon Tax Court) to 305.560 (Appeals procedure generally).

(7)

For each tax year that the property is exempt from taxation, the assessor shall:

(a)

Enter on the assessment roll, as a notation, the assessed value of the property as if it were not exempt under this section.

(b)

Enter on the assessment roll, as a notation, the amount of additional taxes that would be due if the property were not exempt.

(c)

Indicate on the assessment roll that the property is exempt and is subject to potential additional taxes as provided in ORS 285C.240 (Disqualification), by adding the notation “enterprise zone exemption (potential additional tax).” [Formerly 285B.698; 2015 c.648 §21; 2017 c.83 §3]

Source: Section 285C.175 — Enterprise zone exemption; requirements; duration, https://www.­oregonlegislature.­gov/bills_laws/ors/ors285C.­html.

Notes of Decisions

Prior to 1993 amendment, sale of property from one firm to another firm continuing operation of business triggered forfeiture provision. Keeter Manufacturing, Inc. v. Dept. of Rev., 13 OTR 124 (1994)

Attorney General Opinions

Effect of expiration of enterprise zone exemption under Article XI, sections 11 and 11a of Oregon Constitution, (1997) Vol 49, p 6

285C.045
Short title
285C.050
Definitions for ORS 285C.050 to 285C.250
285C.055
Legislative purpose
285C.060
Duties of Oregon Business Development Department
285C.065
Designation of enterprise zone
285C.066
Department may adopt certain rules
285C.067
Consultation with local taxing districts
285C.068
Port cosponsorship of zones
285C.070
Election to permit hotels, motels or destination resorts as eligible business firms
285C.074
Documentation for zone designation or redesignation to be submitted to department
285C.078
Notification to department of intent to make designation of enterprise zone or zone or city for electronic commerce
285C.085
Federal enterprise zones
285C.090
Requirements for area to be designated zone
285C.095
Designation for electronic commerce
285C.100
Alternative designation of city for electronic commerce
285C.102
Documentation for designation of zone or city for electronic commerce to be submitted to department
285C.105
Duties of zone sponsor
285C.110
Availability of public property
285C.115
Change of zone boundaries
285C.117
Documentation for zone boundary change to be submitted to department
285C.120
Zone boundary change restrictions when county ceases to be sparsely populated
285C.125
Duties of Department of Revenue
285C.130
Duties of county assessor
285C.135
Requirements for eligibility
285C.140
Application for authorization
285C.145
Leasing existing property to authorized firm
285C.150
Conditions required by sponsor for authorization
285C.155
Minimum employment and other requirements for authorization
285C.160
Agreement between firm and sponsor for additional period of exemption
285C.165
Extension of period of authorization
285C.170
Construction-in-process exemption
285C.175
Enterprise zone exemption
285C.180
Qualified property generally
285C.185
Minimum cost of qualified property
285C.190
Requirements for qualifying reconditioned, refurbished, retrofitted or upgraded property
285C.200
Qualifications of business firm
285C.203
Suspension of employment requirements
285C.205
Effect of productivity increases on qualification of certain firms
285C.210
Substantial curtailment of business operations
285C.215
First-source hiring agreements
285C.220
Exemption claims
285C.225
Sponsor’s addendum
285C.230
Assessor to grant or deny exemption
285C.235
Authority of county assessor
285C.240
Disqualification
285C.245
Termination
285C.250
Redesignation or designation of new zone following zone termination
285C.255
Sunset of enterprise zone program
285C.300
Definitions for ORS 285C.300 to 285C.320
285C.303
Legislative findings
285C.306
Reservation enterprise zones and reservation partnership zones
285C.320
Status of reservation enterprise zone and reservation partnership zone
285C.350
Definitions for ORS 285C.350 to 285C.370
285C.353
Designation of rural renewable energy development zones
285C.356
Application for authorization
285C.359
Qualified property
285C.362
Exemption
285C.365
Application of enterprise zone laws
285C.370
Rules
285C.400
Definitions for ORS 285C.400 to 285C.420
285C.403
Certification of business firm
285C.406
Claiming property tax exemption or income tax credit
285C.409
Property tax exemption
285C.412
Conditions for continued exemption
285C.415
Notice to county assessor
285C.420
Disqualification
285C.495
Short title
285C.500
Definitions for ORS 285C.500 to 285C.506
285C.503
Preliminary certification of facility
285C.506
Annual certification of facility
285C.540
Definitions for ORS 285C.540 to 285C.559
285C.543
Rules
285C.545
Annual limit to cost of facility in granting tax credits
285C.547
Application for preliminary certification
285C.549
Transferability of facility tax credit
285C.551
Submission of plans, specifications and contract terms
285C.553
Final certification
285C.555
Rules
285C.557
Certification required for tax credits
285C.559
Revocation of certificate
285C.600
Definitions for ORS 285C.600 to 285C.635
285C.603
Legislative purpose
285C.606
Determination of projects for tax exemption
285C.609
Request by county
285C.612
Eligible project application fees
285C.615
Annual participant reports
285C.620
Confidentiality of project information
285C.623
Strategic investment zones
285C.626
Business firm application for project within strategic investment zone
285C.635
Determination of personal income tax revenue
285C.650
Certification as qualified equity investment
285C.653
Tax credit utilization limit per tax year
285C.656
Suspension or revocation of certificate
285C.659
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