Oregon Administrative Code

123-674-2000 AUTHORIZATION PROCESS — Timely Submission For purposes of ORS 285C.140(1): (1) In applying for authorization with the sponsor of an enterprise zone and the county assessor, the Firm/applicant shall: (a) Fill out the Application as completely as the Firm/applicant is …

123-674-2100 Allowably Late Applications Notwithstanding OAR 123-674-2000(2), the zone manager may accept an Application after: (1) Certain physical work that consists only of: (a) Demolition, cleanup, environmental remediation, removal of hazardous materials, and so forth; (b) O…

123-674-2300 Initial Processing by Local Zone Manager Following submission of an Application: (1) The local zone manager may collect an authorization filing fee as described in OAR 123-668-1700. (2) The local zone manager shall deny the Application if finding: (a) The Firm/applic…

123-674-2500 Final Processing Pursuant to OAR 123-674-2300: (1) The county assessor or county assessment staff to whom the assessor delegates enterprise zone duties shall: (a) Accept any requisite invitation to a Preauthorization Conference, as feasible and warranted; (b) Approve…

123-674-3000 AUTHORIZATION'S COVERAGE & EFFECT — Being An Authorized Firm (1) For purposes of ORS 285C.050 to 285C.250 and this division of administrative rules, the Firm/applicant becomes “authorized” only upon fulfillment of OAR 123-674-2500(5). (As applicable, the Established …

123-674-3100 Limitations on Exemption Relative to Authorization Under ORS 285C.180(2)(d) to (f) and 285C.225(3), the Application and information in it restrict what will be exempt under ORS 285C.170 or 285C.175 in only the following four ways, in that qualified property must be: …

123-674-3200 Amending the Application/Authorization For purposes of amending an application before or after its approval: (1) To substantively modify the Application, such that it reestablishes what might be exempt as described in OAR 123-674-3100, the Firm/applicant must formall…

123-674-3500 Additional, Concurrent Authorizations While amendment to an outstanding Application as described in OAR 123-674-3200 is generally preferable for reasons of simplicity, approval of two or more outstanding Applications for the same Firm/applicant in the same enterprise…

123-674-3700 Renewal of Active Status and Inactive Authorization Under ORS 285C.165 an eligible business firm’s authorization in an enterprise zone becomes ‘inactive’ after more than two years, such that: (1) The authorization remains active over: (a) The remainder of the year af…

123-674-4000 EMPLOYMENT OF FIRMS — Computation of Averages (1) Annual Employment or Existing Employment is calculated, such that: (a) The actual employment of the firm at the end of each period (for example, pay periods or calendar months) that concludes during any exemption year…

123-674-4100 Employment Requirement to Qualify Initially To receive and begin an enterprise zone exemption under ORS 285C.175, an authorized business firm must qualify by filing under ORS 285C.220 and 285C.225 as described in OAR 123-674-6100: (1) The first Claim Employment must …

123-674-4200 Diminishing Employment Well beyond the Zone Under ORS 285C.200(1)(d) and (4) an authorized business firm seeking an exemption in any enterprise zone may not qualify or remain qualified, if the firm transfers operations into the zone involving the closure or curtailme…

123-674-4300 Local Waiver of Employment Increase inside Zone For purposes of ORS 285C.200(2), in which the local enterprise zone sponsor waives the required increase in the employment of the firm: (1) With such a waiver, the requirements described in OAR 123-674-4100(1) or 123-67…

123-674-4600 Maintaining Sufficient Employment For purposes ORS 285C.200(1)(e) and 285C.210: (1) Failure occurs (unless it has been waived in OAR 123-674-4300) if: (a) The latest Annual Employment is less than the greater of one plus or 1.1 times the Existing Employment; (b) The …

123-674-4800 Sale or Leasing of Exempt Property For purposes of ORS 285C.175(2)(b), a qualified business firm may sell or lease qualified property, and the exemption that is about to begin or is ongoing may continue for the remainder of its normal period. This rule depends on all…

123-674-5000 QUALIFIED PROPERTY— Critical Terms As used in ORS 285C.050 to 285C.250 and in this division of administrative rules, consistent with relevant definitions in ORS Chapter 307 and OAR 150-285-3200, unless the context dictates otherwise: (1) Addition includes one or both…

123-674-5050 Property at Time of Zone Designation or Amendment Respective to an enterprise zone exemption on qualified property under ORS 285C.170 or 285C.175 and the effective date of a zone’s designation or of a boundary change that brings the property’s location into the zone:…

123-674-5100 Eligible Utilization In order for ‘qualified property’ under ORS 285C.050(16), to actually be exempt in an enterprise zone under ORS 285C.170 or 285C.175: (1) It also must be effectively and primarily used in one or more eligible activities described in OAR 123-674-1…

123-674-5200 Mechanical, Personal and Unqualified Property For purposes of enterprise zone property to be exempt under ORS 285C.170 or 285C.175: (1) Real property machinery & equipment or personal property may qualify despite prior usage outside the zone, such that the exempt val…

123-674-5300 Buildings, Structures and Other Real Property For purposes of real property in an enterprise zone to be exempt under ORS 285C.170 or 285C.175: (1) The following do not qualify, unless the cost of all such property collectively in a single property schedule under ORS …

123-674-5400 Property Already Entered on Rolls (1) Other than the qualifying value consistent with OAR 123-674-5300(4) or (5) of later additions or modifications, property already entered on the assessment roll of the county before the effective date of the zone’s designation or …

123-674-5500 Obligations for All Leases, Lessors and Lessees (1) Qualified property that is not owned by the authorized business firm is exempt in an enterprise zone under ORS 285C.185(3) subject to all other applicable requirements, if used, occupied or operated by the firm unde…

123-674-5900 Property at Time of Zone Termination OAR 123-650-9500 to 123-650-9700 address treatment of qualified property in an enterprise zone that has terminated. Statutory/Other Authority: ORS 285A.075 & 285C.060(1) Statutes/Other Implemented: ORS 285C.175 & 285C.245 History:…

123-674-6000 FILING & COMPLIANCE — Exemption for Property Not Yet In Service Under ORS 285C.170 qualified property of an actively authorized business firm in the enterprise zone is exempt from ad valorem taxation for up to two years, such that: (1) Consistent with OAR 123-674-610…

123-674-6100 Mandatory First-year Claim with Property Schedule For purposes of an enterprise zone exemption on qualified property under ORS 285C.175: (1) The authorized business firm: (a) Must file the latest revision of the following Department of Revenue forms with the county a…

123-674-6200 Filing Latter-year Claims For qualified property to continue to be exempt in an enterprise zone throughout the entire period under ORS 285C.175: (1) The qualified business firm must file annually under ORS 285C.220: (a) Using the latest revision of Department of Reve…

123-674-6300 Disqualification of Particular Property A qualified business firm does not lose its ongoing enterprise zone exemption under ORS 285C.175 on all qualified property if only certain property fails to satisfy a relevant requirement: (1) Disqualification (including back t…

123-674-6400 General Firm Disqualification (1) Loss of exemption under ORS 285C.175 applies to all qualified property of a business firm that is exempt in the year when an event occurs, for which notice is due under ORS 285C.240(1)(b), (c) or (d), including but not limited to: (a…

123-674-6600 PAYBACK IN LIEU OF DISQUALIFICATION — Applicability For purposes of ORS 285C.240(6) and OAR 123-674-6600 to 123-674-6630, a qualified business firm’s avoidance of disqualification through payment to the zone sponsor of the firm’s tax savings for one year is allowed, …

123-674-6610 Payment of Tax Savings For purposes of the payment by a qualified business firm described in OAR 123-674-6600(5): (1) The firm shall pay to the sponsor of the enterprise zone an amount equal to the additional taxes due, as the county assessor computed under ORS 285C.…

123-674-6620 Distribution of Payment among Cosponsors In the case of an enterprise zone sponsor comprising two or more city or county governments or port districts: (1) Any cosponsor may act as the initial depository for collecting the qualified business firm’s payment as describ…

123-674-6630 Utilization of Payments In accordance with ORS 285C.240(6)(b), the expenditure of moneys collected from a qualified business firm shall benefit residents of the enterprise zone and its immediate vicinity, such that: (1) For a rural zone, the immediate vicinity will g…

123-674-6880 Deferral during Recession For purposes of ORS 285C.203 to defer the standard enterprise zone exemption, during which time the exemption is suspended and an authorized or qualified business firm pays taxes on qualified property: (1) The firm may avoid denial or disqua…

123-674-6885 Additional Conditions with Deferral In order for an authorized or qualified business firm to have its exemption under ORS 285C.175 suspended and then resume according to OAR 123-674-6880, though not directly provided under ORS 285C.203, a zone sponsor might impose co…

123-674-7200 GENERAL LAWFULNESS — Terminology For purposes of OAR 123-674-7200 to 123-674-7250, with respect to an eligible business firm compliance with other laws under ORS 285C.200(1)(f): (1) Determination means either of the following: (a) A rightfully available written admis…

123-674-7210 Declarations and Responsibilities (1) Any Department of Revenue form for an enterprise zone tax abatement shall also have the firm declare that it is in compliance with applicable laws described in OAR 123-674-7200(4), as part of the declaration made under penalties …

123-674-7220 Effect of Event of Noncompliance Upon an Event of Noncompliance: (1) In the case where an authorized business firm is not yet qualified, the county assessor shall deny exemption under ORS 285C.170 or 285C.175. (2) In the case where the firm is receiving or has receiv…

123-674-7230 Materiality An eligible business firm’s Noncompliance is material for purposes of ORS 285C.200(1)(f), only if all of the following are true: (1) Zone-Applicable. It is related to or part of actual operations of and by the business firm within the enterprise zone boun…

123-674-7240 Cure As a consequence of actions taken by an eligible business firm in response to a Determination, it may still comply with the law and, in effect, cure the Noncompliance for purposes of ORS 285C.200(1)(f), such that: (1) A Noncompliance is not curable if, in the pr…

123-674-7250 Interpretation With respect to the interpretation of OAR 123-674-7200 to 123-674-7250 for purposes of ORS 285C.200(1)(f): (1) There are five primary issues related to the conclusion that there is an Event of Noncompliance: (a) Is there a Determination as defined? (b)…

123-674-7700 FIRST SOURCE HIRING AGREEMENTS — Coverage For purposes of an authorized or qualified business firm’s entering into a First Source Hiring Agreement in an enterprise zone: (1) Contact agency means the entity that represents publicly funded job training providers, consi…

123-674-7710 First-Source Procedures (1) A Firm/applicant shall enter into an agreement as described in OAR 123-070 either: (a) After the local zone manager approves the application for authorization as provided in 123-674-2300(8)(d); (b) Before hiring new employees to qualify un…

123-674-7720 Handling Exemption Claims For purposes of the First Source Hiring Agreement and the county assessor’s processing of an initial exemption claim with property schedule as described in OAR 123-674-6100, except in the case of a general waiver under ORS 285C.215(3) (see O…

123-674-7730 Allowing Late Execution of First-Source Agreement For purposes of an authorized business firm’s needing to have entered into a First Source Hiring Agreement: (1) The Director may issue a waiver that excuses the requirement until the time when the agreement is actuall…

123-680-0001 Purpose and Scope This division of administrative rules specifies matters related to the creation and operation of an RREDZ, which as used in these administrative rules, means a rural renewable energy development zone under ORS 285C.350 to 285C.370: (1) The primary p…

123-680-1000 Basic Points about RREDZs (1) An RREDZ terminates: (a) By operation of law or early under ORS 285C.245(1)(a) or (b), with equivalent protection and allowances for relevant business firms in the RREDZ as described in OAR 123-650-9100 to 123-650-9700; but (b) Not by pr…

123-680-1200 Designation of a RRED Zone (1) To apply for designation of an RREDZ under ORS 285C.353, the city, county or multiple counties shall furnish the Department with: (a) A copy of the resolution(s) requesting designation duly adopted by each jurisdiction within the past s…

123-680-1400 Limitation of Exempt Real Market Value Under ORS 285C.353(4), each RREDZ designation has a cap on the total value in qualified property allowed, which is cumulatively exhausted with each exempt project over the life of the designation: (1) Such value is the property’…

123-680-1600 Further Distinctions from an Enterprise Zone Exemption For an RREDZ exemption, in comparison with a business firms’ using an enterprise zone: (1) The application for authorization shall give special attention to characterizing the proposed investment in qualified pro…

123-690-0001 Purpose and Scope This division of administrative rules specifies the effect of provisions under ORS 285C.400 to 285C.420, 317.124 and 317.131. As such, these administrative rules: (1) Address determinations, procedures and requirements of the up to 15 years of exemp…