justicedao/ipfs_state_laws huggingface dataset:
123-674-1300 Eligible Business Firm with Ineligible Activities For purposes of ORS 285C.135(3): (1) A Firm/applicant is eligible: (a) If when qualified, it engages in an eligible activity in the enterprise zone; (b) Provided that any ineligible activity of the Firm/applicant is at a separate business operation; and (c) Regardless of the degree to which an ineligible activity represents the Firm/applicant’s main commercial pursuit. (2) Any requirement to hire, maintain or compensate employees under ORS 285C.050 to 285C.250 applies only to “eligible employees,” as used in ORS 285C.140(1)(a), consistent with OAR 123-674-0200. (3) Firm/applicant and the local zone manager shall see that the Preauthorization Conference addresses distinctions relevant to this rule, and the local zone manager shall assist the firm and the county assessor in determining such portions of the firm’s property that will qualify. Statutory/Other Authority: ORS 285A.075 & 285C.060(1) Statutes/Other Implemented: ORS 285C.135, 285C.200 & 285C.210 History: OBDD 27-2010, f. & cert. ef. 6-14-10
123-674-1400 Gross Receipts Test (1) A gross receipts test shall determine the eligibility of a business firm or business operation that partially involves an ineligible activity only when: (a) There are Applicable Gross Receipts; (b) The firm is not eligible as described in OAR 123-674-1200(4); and (c) For lack of definitive or physical separation, the ineligible activity cannot be effectively isolated from eligible activities for purposes of OAR 123-674-1300. (2) The Firm/applicant or operation passes the gross receipts test and is otherwise eligible for authorization and qualification in the enterprise zone, if Applicable Gross Receipts divided by Ineligible Receipts equals or exceeds 4.0. (3) For purposes of this rule, the local zone manager shall see as part of the Preauthorization Conference that the authorization includes: (a) An explanation of the eligibility of the firm or operation consistent with this rule; and (b) Arrangements to substantiate this for the firm’s future qualification, as appropriate. (4) “Applicable Gross Receipts” as used in this rule are based on: (a) Sales revenue derived directly from a party external to the firm in exchange for goods, products, commodities, merchandise, work or services; (b) Operations located entirely inside the enterprise zone; (c) All activities of the firm within the enterprise zone; (d) An annual total for the most recent fiscal year or calendar year; and (e) The commercial state of affairs, as realized when the firm is qualified for the property tax exemption being sought, which is estimated for purposes of the Application or Preauthorization Conference. (5) “Ineligible Receipts” as used in this rule are that subset of the same Applicable Gross Receipts that arise from an ineligible activity described in OAR 123-674-1200(1), including but not limited to receipts that entail: (a) Consumption by an end-user among the public; (b) Sales directly to a household or individual that is neither another business firm nor operating as such; or (c) No subsequent resale of the applicable goods or products by the firm’s customer. Statutory/Other Authority: ORS 285A.075 & 285C.060(1) Statutes/Other Implemented: ORS 285C.135 & 285C.140 History: OBDD 7-2017, amend filed 11/29/2017, effective 11/29/2017 OBDD 27-2010, f. & cert. ef. 6-14-10
123-674-1600 Call Centers and Like Operations For purposes of ORS 285C.135(5)(a): (1) A Firm/applicant and its operations are eligible, regardless of retail transactions, financial services or other ineligible activities, if: (a) They serve the firm or its clients exclusively through computer, electronic, online, telephony or other information and communication technologies or methods; (b) No more than 10 percent of the customers or business transactions come from inside the local calling area, in which telephone calls could be made to and from the firm’s location in the enterprise zone without long distance telephone charges or service as traditionally applied to landlines; and (c) Not engaged in telemarketing, but rather the firm is taking unsolicited orders or responding to prior instruction, including but not limited to: (A) Following-up on pledges or expressions of interest to the firm or its client; (B) Checking with users of client-supplied goods or services, for example, to continue or renew recently expired membership, contract, etc.; or (C) Collection of voluntarily incurred dues, fees or other charges payable to the client. (2) The percentage in subsection (1)(b) of this rule is: (a) First substantiated by the Firm/applicant or local zone manager with the Application or Preauthorization Conference; (b) Not predicated on the actual transaction or customer communication through a landline telephone call, but only on relative location as if it were; (c) Calculated by dividing the number of customers or transactions in the local calling area by the firm’s total, arising from the operations in the zone; and (d) Not dependent on precise calculation or verification, if the generally regional or national extent or scope of the firm’s activities allow for a reasonable assumption of compliance. (3) Communications in accordance with this rule will generally be anonymous in nature and involve only a brief period, if any, of repeat interaction on a given matter or order. They do not include the delivery of advice, services or products between known individuals, such as ongoing provision of professional services to clients by any particular employee or agent of the business firm. Statutory/Other Authority: ORS 285A.075 & 285C.060(1) Statutes/Other Implemented: ORS 285C.135 History: OBDD 8-2020, amend filed 08/12/2020, effective 08/12/2020 OBDD 27-2010, f. & cert. ef. 6-14-10
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) On-site delivery, storage or upkeep of materials or elements of qualified property prior to their use for construction or installation; or (c) Construction or the like that occurred and completely ceased six months or longer before Application, consistent with OAR 150-285-3200(3)(b), insofar as the property was not placed in service and is not assessed for the current tax year, and the Application precedes the resumption of work. (2) The commencement of hiring or physical work, if the Application wholly replaces a previously submitted Application by December 31 immediately before the initial year of exemption consistent with OAR 123-674-3200, such that in this case, the originally submission date is used. (3) The commencement of hiring or physical work pursuant to a waiver issued by the Department of Revenue according to OAR 150-285-3100, or as otherwise allowed under ORS 285C.140(11) and (12). (4) The commencement of physical work on a qualified building or structure (aside from associated machinery & equipment) under ORS 285C.145(2), if the following are true: (a) Firm/applicant did not own or lease any such building or structure, or have a binding obligation to do so, at any time before the commencement of construction, reconstruction or modifications; (b) Firm/applicant includes a copy of an executed lease or purchase agreement for the qualified building or structure with the Application; (c) Firm/applicant does not have any familial, employment, corporate or other such entity relationship with the owner or previous owner of the building or structure; and (d) Approval of the Application occurs before the Firm/applicant begins to use or occupy the building or structure for commercial operations. (5) The commencement of physical work on one type of property that will not qualify, but before work begins on other property that may qualify, as differentiated under ORS 285C.180(1) consistent with OAR 123-674-3100(3). (6) Even the completion of construction, modifications or installations as otherwise allowed in sections (2) to (5) of this rule. Statutory/Other Authority: ORS 285A.075, 285C.060(1) & 285C.140(12) Statutes/Other Implemented: ORS 285C.140 & 285C.145 History: OBDD 34-2024, minor correction filed 10/17/2024, effective 10/17/2024 OBDD 14-2016, f. & cert. ef. 9-16-16 OBDD 15-2012, f. & cert. ef. 8-15-12 OBDD 27-2010, f. & cert. ef. 6-14-10
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 County Wage is primarily set at this point based on the Current County Wage) (2) Authorization serves to establish and address critical issues related to a Firm/applicant’s knowledge of the enterprise zone, the eligibility of its business activity, Existing Employment, clarity in the unlikely event of concurrent Applications, and so forth. (3) Authorization does not as such govern the qualified property subject to exemption under ORS 285C.170 or 285C.175, other than the basic, general parameters described in OAR 123-674-3100, in that: (a) The anticipated timing, estimates and descriptions of the investment in qualified property in the Application are not in and of themselves binding and do not serve a regulatory function. (b) The two exceptions to this section are qualified property of a headquarter-type facility (see OAR 123-674-1700) or in a rural renewable energy development zone (see OAR 123-680), in that the actual, completed project or facility must conform substantially to representations in the Application to enjoy the standard exemption under ORS 285C.175. (4) Such authorization must already be in effect for the Firm/applicant to use the exemption on qualified property under ORS 285C.170 for work in progress, as described in OAR 123-674-6000, although the Firm/applicant may apply for and receive exemption on property as otherwise allowed under ORS 307.330. (5) In order to receive exemption under ORS 285C.175 on qualified property that is in service: (a) The zone sponsor/county assessor shall authorize the Firm/applicant, at the absolute latest, before it files its initial claim for exemption with property schedule under ORS 285C.220 and 285C.225. (b) Such an exemption claim may be provisionally filed pending authorization delayed for extenuating circumstances through no fault of the Firm/applicant, but authorization must occur before the firm may qualify for the exemption. Statutory/Other Authority: ORS 285A.075 & 285C.060(1) Statutes/Other Implemented: ORS 285C.140, 285C.170, 285C.175, 285C.220 & 285C.225 History: OBDD 7-2017, amend filed 11/29/2017, effective 11/29/2017 OBDD 27-2010, f. & cert. ef. 6-14-10
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 formally deliver the amendment on or before December 31 preceding the initial year of actual exemption, including but not limited to a late filing under ORS 285C.220(9), in order to: (a) Change the Firm/applicant to that of another eligible business firm that has or is purchasing or leasing only qualified property of the Firm/applicant in contrast to subsection (3)(c) of this rule; (b) Revise the location of the property inside the same enterprise zone; or (c) Add a structure or basic type of property absent from the Application, or distinct projects or operations entailing substantial new development. (2) The Firm/applicant shall do so by furnishing to the local zone manager and county assessor: (a) A written explanation that is identified as an amendment, addendum, correction or the like in reference to the Application; (b) Edits or revisions made directly to previously submitted materials; or (c) A new, replacement Application as allowed in OAR 123-674-2100(2). (3) Amendment is strongly encouraged at any time, even if unnecessary to secure exemption on particular property, whenever information in the submitted Application is significantly inaccurate due to: (a) An error or omission; (b) A change in plans; or (c) New name or mailing address of the Firm/application, because of the company’s restructuring or its ownership changing hands, in which case the relevant rights and requirements of authorization automatically transfer along with ownership of the firm; or (d) Similar reasons. (4) An authorization renewal statement under ORS 285C.165 shall revise all information in the Application that is no longer accurate, especially with respect to anticipated timing for the investment (see OAR 123-674-3700). (5) Once the Firm/applicant is authorized, an amendment may not be used to make or alter a determination, waiver, extension or the like under ORS 285C.150, 285C.155, 285C.160, 285C.200(2) or 285C.205. (6) Within 30 days of receiving an amendment to a previously approved application, the zone manager shall see in accordance with OAR 123-674-2500(5) that: (a) The Firm/applicant is informed of the amendment’s acceptance or of any further issue; (b) The local contact agency for the First Source Hiring Agreement is apprized, as relevant, of changes to the firm or its location; and (c) The Department of Revenue and the Department are sent copies. Statutory/Other Authority: ORS 285A.075 & 285C.060(1) Statutes/Other Implemented: ORS 285C.140, 285C.145, 285C.165, 285C.180 & 285C.220 History: OBDD 35-2024, minor correction filed 10/17/2024, effective 10/17/2024 OBDD 8-2020, amend filed 08/12/2020, effective 08/12/2020 OBDD 14-2016, f. & cert. ef. 9-16-16 OBDD 27-2010, f. & cert. ef. 6-14-10
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 zone is allowable, and in some cases, desirable or necessary: (1) The Firm/applicant must make another Application for any case that goes beyond what a single Application may cover, according to OAR 123-674-3100, such as investments in qualified property: (a) At more than one general location inside the zone; (b) Inadequately indicated in the Application in terms of a basic type of property or major improvement, once the first year of the initial exemption has already begun; or (c) That will not be in service until the third or later year following the first exemption year of initial property covered by a current authorization. (2) For any additional Application even if for proposed qualified property at the same site identified in another Application: (a) It must be timely submitted according to OAR 123-674-2000 and 123-674-2100 before the commencement of work on that newly proposed property; and (b) It establishes unique Existing Employment and resulting criteria under ORS 285C.200 and 285C.210. (3) In the event of concurrent exemptions under ORS 285C.175 on qualified property covered by two or more Applications even for the same location, the authorized business firm shall file separate exemption claims and property schedules, as described in OAR 123-674-6100 and 123-674-6200, corresponding to each Application and associated qualified property, such that qualification depends on satisfying: (a) Criteria arising from the Application most clearly associated with the particular property (including but not limited to consideration of when work on such property actually commenced). (b) The effectively most stringent requirement among outstanding Applications for any qualified property that does not definitively relate to any particular Application. (c) The effectively least stringent requirement among the outstanding Applications for qualified property that specifically relates to two or more Applications. Statutory/Other Authority: ORS 285A.075 & 285C.060(1) Statutes/Other Implemented: ORS 285C.140, 285C.170, 285C.175, 285C.220 & 285C.225 History: OBDD 14-2016, f. & cert. ef. 9-16-16 OBDD 27-2010, f. & cert. ef. 6-14-10
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 after approval of the Application; (b) The two-year period immediately following; and (c) Each two-year period directly thereafter, subject to a statement of renewal as described in subsection (2)(b) of this rule. (2) Authorization is still active if immediately after any period described in section (1) of this rule, the firm: (a) Files successfully under ORS 285C.220 and 285C.225 to initially claim exemption on qualified property placed in service during such a period, at which point this rule is no longer operative; or (b) Submits a written statement between January 1 and April 1 (as presently received by both the local zone manager and the county assessor’s office) that: (A) Comes from the firm consistent with authority required for making Application; (B) Informs or indicates that the firm still intends to complete its proposed investment in qualified property inside the zone and to claim the exemption; and (C) Revises or amends any relevant information in the Application. (3) With respect to a statement in subsection (2)(b) of this rule: (a) Whether acknowledged by the firm or not, the Established County Wage applicable to any compensation standard is reset to the Current County Wage at the time of the statement’s submission. (b) Neither filing for any construction-in-process exemption nor filing a claim under ORS 285C.220 for an exemption that is denied substitutes for the requisite statement. (4) An inactively authorized business firm retains its right to claim the exemption after the periods described in section (1) of this rule, but letting active status lapse has the following consequences: (a) With the initial exemption claim in an existing enterprise zone: (A) Filing fee under ORS 285C.165(3) is charged; and (B) Established County Wage with any compensation standard is reset to the Current County Wage at the time of filing the claim; (b) Prior to that claim, even if the zone is currently still designated, the firm may not receive exemption under ORS 285C.170 while qualified property is in the process of construction, modification or installation, but it may still seek exemption under applicably comparable provisions of ORS 307.330 and 307.340; and (c) The firm is not effectively authorized under ORS 285C.245(5) for purposes of OAR 123-650-9500 or 123-650-9600 at the time of the zone’s termination. Statutory/Other Authority: ORS 285A.075 & 285C.060(1) Statutes/Other Implemented: ORS 285C.140, 285C.160, 285C.165, 285C.170, 285C.175, 285C.220, 285C.225 & 285C.245 History: OBDD 14-2024, amend filed 06/10/2024, effective 06/10/2024 OBDD 7-2017, amend filed 11/29/2017, effective 11/29/2017 OBDD 14-2016, f. & cert. ef. 9-16-16 OBDD 27-2010, f. & cert. ef. 6-14-10
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 or the entire 12 months before the Application shall be summed and then divided by the total number of periods. (b) Periods may not be longer than calendar quarters that begin on January 1, April 1, July 1 and October 1. (c) Results are rounded mathematically to a whole number. (2) For purposes of determining Existing Employment relative to the submission of the Application: (a) The time when applicable physical work began shall be used instead of the submission date, as necessary for situations when timely submission has been waived under ORS 285C.140(12)(b). (b) If such physical work has not yet begun, an authorized business firm may submit a replacement Application to establish a lower level of Existing Employment; otherwise, the number from the original submission date stands. (c) The Firm/applicant may correct for a miscalculation by amending the Application under ORS 285C.140(3) consistent with OAR 123-674-3200, including but not limited to erroneously inclusion of part-time, temporary, seasonal or ineligible employees. (d) After the first (January-1) assessment date for exemption under ORS 285C.175, Existing Employment may be altered only to correct for a fundamental mistake, subject to a formal finding of good cause by the Department. (3) Employment of the firm at any location amended into the enterprise zone by a boundary change shall be treated as part of the zone for determining Existing Employment over the entire 12 months before the Application, if the boundary change: (a) Took effect during that 12-month period; or (b) Adds the location of qualified property indicated in the Application to the zone. Statutory/Other Authority: ORS 285A.075, 285C.060(1) & 285C.140(12) Statutes/Other Implemented: ORS 285C.140, 285C.200 & 285C.210 History: OBDD 7-2017, amend filed 11/29/2017, effective 11/29/2017 OBDD 14-2016, f. & cert. ef. 9-16-16 OBDD 27-2010, f. & cert. ef. 6-14-10
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 equal or exceed the greater of one plus or 1.1 times the Existing Employment: (a) If at the time of filing, however, the actual Claim Employment is insufficient, the requirement under ORS 285C.200(1)(c) and this section is nevertheless satisfied, provided that employment was high enough at some time by April 1 but after making Application as documented with the claim form. (b) For a subsequent exemption on additional qualified property pursuant to the same Application, as described in OAR 123-674-3100(4), the requirement of this section has effectively already been satisfied. (2) If section (1) of this rule is not satisfied, then the county assessor shall deny the exemption claim and not grant any exemption under ORS 285C.175 on qualified property, except with a waiver by the zone sponsor and qualification as described in OAR 123-674-4300. Such denial does not directly affect the firm’s authorization status and its ability to qualify other (later) property under ORS 285C.170 or 285C.175. (3) Under ORS 285C.200(5) any transfer of eligible employees, jobs or positions into the zone from a site within 30 miles outside the zone boundary, occurring between the time of the Application’s approval (authorization) and the end of the initial year of exemption, triggers an additional requirement in terms of section (1) of this rule, in that the definitions of Claim Employment and Existing Employment expand to also include the number of employees located at any such site, as well as those inside the zone. Statutory/Other Authority: ORS 285A.075 & 285C.060(1) Statutes/Other Implemented: ORS 285C.050, 285C.175, 285C.200, 285C.220 & 285C.225 History: OBDD 7-2017, amend filed 11/29/2017, effective 11/29/2017 OBDD 14-2016, f. & cert. ef. 9-16-16 OBDD 15-2012, f. & cert. ef. 8-15-12 OBDD 27-2010, f. & cert. ef. 6-14-10