justicedao/ipfs_state_laws huggingface dataset:
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 curtailment of operations and a drop in employment (job losses) elsewhere in this state, unless: (1) The originating location is 30 miles or less from the boundary of the zone, and the firm meets the requirements under ORS 285C.200(5) and 285C.210(2)(c) described in OAR 123-674-4100(3) and 123-674-4600(2); or (2) The firm demonstrates, with or without the assistance of the zone sponsor, to the satisfaction of the county assessor or the Department that the curtailment/job losses: (a) Occurred entirely before the Application’s approval (authorization); (b) Occur entirely after the initial year of exemption on qualified property; (c) Will not be permanent, such that restoration of the jobs is reasonably likely and does in fact happen on or before December 31 of the initial year of exemption; (d) Pertain to business operations that the firm does not control in any way through common ownership, corporate affiliation, contracts governing relevant operations, or the like; (e) Are completely unrelated to any new investment or expansion of activity in the zone, so that there is effectively no transfer of curtailed operations or jobs into the zone; (f) Relate only to operations that are ineligible in the enterprise zone ; or (g) Have only de minimis impact, which the Department may deem true if job losses will amount to less than one one-hundredth of 1 percent (0.01%) of the most recently available figure for Current Employment Estimates (CES) from the State Employment Department for annual average total nonfarm, private employment in the county experiencing curtailed operations. Statutory/Other Authority: ORS 285A.075 & 285C.060(1) Statutes/Other Implemented: ORS 285C.200, 285C.210 & 285C.240 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
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 current Claim Employment is less than 15 percent of any previous Claim Employment; or (c) Both the current Claim Employment and the one from the prior year are less than 50 percent of any previous Claim Employment. (2) Subject to OAR 123-674-4100(3)’s being effective, a qualified business firm must likewise meet an additional requirement in terms of section (1) of this rule but only for the initial year of exemption , in that the definitions of Annual Employment, Claim Employment and Existing Employment expand to include employees located at any relevant site outside but within 30 miles of the zone boundary, as well as jobs inside the zone. Statutory/Other Authority: ORS 285A.075 & 285C.060(1) Statutes/Other Implemented: ORS 285C.200, 285C.210, 285C.220, 285C.230 & 285C.240 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
123-674-4800 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 of the following, otherwise the exemption is subject to denial or to disqualification for an event under ORS 285C.240(1)(a) or (e) with repayment of back taxes, as applicable: (1) The qualified property was located at the site identified in the Application (as potentially amended) when it first qualified, and it continues to be eligibly used inside the enterprise zone. (2) The purchaser or lessee is an eligible business firm. (3) Requirements in OAR 123-674-4000 to 123-674-4600 are effectively satisfied, including that the combined Annual Employment of the purchaser/lessee and of the originally qualified business firm equal or exceed the sum of: (a) The minimum Annual Employment required of the firm in OAR 123-674-4600(1)(a); and (b) The annual average employment of the purchaser/lessee in the zone immediately prior to the change in ownership/lease. (4) That the purchaser/lessee and the qualified property comply with all other applicable requirements. Statutory/Other Authority: ORS 285A.075 & 285C.060(1) Statutes/Other Implemented: ORS 285C.050, 285C.175, 285C.210 & 285C.240 History: OBDD 8-2020, amend filed 08/12/2020, effective 08/12/2020 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
123-674-5050 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: (1) Property or its existing value may not be exempt if before such an effective date that property/value was already: (a) On the assessment rolls of the county irrespective of location or of ownership/lease; or (b) Located in the zone or in the process of actual construction, improvement, modification or installation there, irrespective of any: (A) Site preparation or land development even if onsite and leading to construction, though still needing to occur after Application consistent with OAR 123-674-2000(3); or (B) Activity described in OAR 123-674-2100(1) such as demolition. (2) A Firm/applicant may seek authorization and even have its Application approved before but pending such an effective date. (3) Section (1) of this rule does not apply if the location of an authorized business firm’s (proposed) qualified property was part of a terminated zone that is included in the newly designated or amended zone, such that: (a) The authorization transfers directly to the new zone, provided that the authorization was otherwise still valid consistent with OAR 123-674-9500 or 123-674-9600 in the terminated zone as of the effective date of the designation or boundary change; and (b) The active or inactive status of the authorization will depend on ORS 285C.165 and the date of the Application’s approval or of any statement according to OAR 123-674-3700. Statutory/Other Authority: ORS 285A.075 & 285C.060(1) Statutes/Other Implemented: ORS 285C.140, 285C.165, 285C.170, 285C.175 & 285C.245 History: OBDD 14-2024, adopt filed 06/10/2024, effective 06/10/2024
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 123-674-1100 and not but seldom used in an activity listed in OAR 123-674-1200(1). (2) Consistent with section (1) of this rule, some property will typically not qualify for the exemption, including but not limited to the following examples: (a) Commercial fixtures and space in a retail setting; (b) A commercially operated kitchen and associated fixtures and appliances for retail food service; (c) Entertainment, recreational and exercise facilities or equipment (except as dedicated workplace amenities for employees, who are actually engaged in and do not merely support eligible activities); (d) Medical devices; or (e) Construction equipment. (3) Sections (1) and (2) of this rule are excepted in the case of otherwise qualified property that is used for operations and at facilities described in OAR 123-674-1200(3) or (4), including but not limited to electronic commerce operations in a so-designated area as described in OAR 123-662. (4) Any such property must also: (a) Relate to the Application consistent with OAR 123-674-3000 through 123-674-3500; and (b) Be constructed, added to, modified or installed in the zone to serve essentially only commercial/non-personal purposes. Statutory/Other Authority: ORS 285A.075 & 285C.060(1) Statutes/Other Implemented: ORS 285C.135, 285C.180, 285C.185 & 285C.240 History: OBDD 37-2024, minor correction filed 10/17/2024, effective 10/17/2024 OBDD 7-2017, amend filed 11/29/2017, effective 11/29/2017 OBDD 27-2010, f. & cert. ef. 6-14-10
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 amendment of the property’s location into the zone is not qualified property and may not receive exemption under ORS 285C.170 and 285C.175, in accordance with OAR 123-674-5050. (2) Property that is assessed in the county after the zone’s designation or amendment may qualify and be exempted under certain circumstances, including but not limited to the following examples, which might occur in combination: (a) Assessment occurred while in the process of re/construction, modification or installation, and the taxpayer was not allowed to file or simply did not apply in a timely or acceptable fashion under ORS 285C.170 or 307.330 and 307.340. (b) While an administrative or judicial appeal is pending the property is assessed. (c) The authorized business firm misses the first-year filing deadline but receives the remaining years of the exemption as described in OAR 123-674-6100(5)(b). (d) A building or structure acquired from an unrelated third party and authorized as described in OAR 123-674-2100(4) (provided, of course, that the building, structure, the applicable portion of it, or an improvement to it was not in use or occupancy for more than a year preceding the first year of exemption). (e) As permitted by OAR 123-674-5200(2), property: (A) Located elsewhere in the county was newly purchased and subsequently installed in the enterprise zone; or (B) Was introduced to the county less than six months preceding Application, but an assessment date occurred prior to its being exempted. Statutory/Other Authority: ORS 285A.075 & 285C.060(1) Statutes/Other Implemented: ORS 285C.170, 285C.175, 285C.180 & 285C.220 History: OBDD 38-2024, minor correction filed 10/17/2024, effective 10/17/2024 OBDD 14-2024, amend filed 06/10/2024, effective 06/10/2024 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
123-674-5500 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 under a lease agreement executed no later than July 1 of the first year of exemption on the leased property under ORS 285C.175. (2) The term of the lease must also extend until at least the end of the tax year that begins in the last exemption year, unless the qualified business firm will or does assume ownership of the property by such time. In certain cases where the term of a lease is technically too short, mitigating circumstances include but are not limited to where: (a) The firm has the option to unilaterally renew the lease; or (b) The firm: (A) Retains effective prerogatives of ownership under an unconventional or nontraditional lease that serves mainly as a financial instrument; and (B) Would have an unfettered right to retain title to the property in the event that the lease were not mutually renewed before the expected end of the exemption period. (3) The owner of leased qualified property may be any person or corporation, including but not limited to a public body or an owner of the firm. (4) The lease agreement must effectively operate as a net lease, inasmuch as: (a) The firm/lessee directly pays all ad valorem taxes assessed against any qualified property covered by the lease agreement; or (b) The firm/lessee will compensate the owner of such property in full for the property taxes in addition to rent or other costs throughout the period of the lease. (5) The stipulation of a net lease is irrelevant if the owner and lessee have common ownership and are subject to treatment as a single eligible business firm according to OAR 123-674-0200(4). (6) The owner of any such qualified property (even machinery & equipment) must join the firm in filing the property schedule as an attachment to the exemption claim form under ORS 285C.225(4)(d) for the first exemption year, as described in OAR 123-674-6100, such that the owner or the owner’s authorized legal agent signs one of the following: (a) The same property schedule that has the original signature of the firm’s representative; or (b) An attachment to the schedule that provides for equivalent acknowledgment by the owner. (7) For purposes of this rule, a lessee that sub-leases property to the firm may substitute for the owner. (8) The owner has the same right as the firm to timely notify the county assessor and the zone sponsor under ORS 285C.240(1) if a requirement is not met, in order to avoid penalties under ORS 285C.240(4). (9) A copy of the lease agreement is not required with Application or with the exemption claim, except as described in OAR 123-674-2100(4) or as requested by the county assessor. Statutory/Other Authority: ORS 285A.075 & 285C.060(1) Statutes/Other Implemented: ORS 285C.170, 285C.175, 285C.180 & 285C.220 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
123-674-5900 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: OBDD 14-2024, adopt filed 06/10/2024, effective 06/10/2024
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 Revenue Form OR-EZ-EXCLM, 150-310-075, Oregon Enterprise Zone Exemption Claim; (b) With the county assessor and a copy to the zone sponsor; (c) On or before April 1 directly after every assessment year of exemption; and (d) In addition to the first-year filing described in OAR 123-674-6100. (2) The claim form also covers other property pursuant to the same authorization, consistent with OAR 123-674-3100(4), including but not limited to the attachment of another property schedule for any new, additional qualified property that is placed in service in the previous calendar year and would be exempt for its own period under ORS 285C.175(2)(a). (3) For a claim form filed by itself for purposes of compliance in maintaining an ongoing exemption or exemptions, the assessor’s office may accept it late until August 31 under ORS 285C.220(8) but only if: (a) Furnished to the zone sponsor, as well; and (b) Accompanied with the progressively larger late filing fee. (4) The assessor may henceforth deny the exemption for the remainder of the period, subject to notice under ORS 285C.175(6) without further procedure, if the claim form is not received (at the latest on August 31) or it lacks for the late filing fee. (5) Besides arrangements from the Preauthorization Conference, the zone sponsor and the county assessor shall consider and rely on the duties and options under ORS 285C.230, as well as exercise the procedure under ORS 285C.235 to demand corroborating evidence of the firm by time/receipt-verified mail whenever warranted, which: (a) Would be the only recourse if the firm refuses to submit a claim form after the final year of exemption; (b) Is always available if the submitted information and the compliance of the firm with employment/other requirements is suspect; and (c) Causes disqualification: (A) Automatically, if the firm does not satisfactorily respond within 60 days, but without extra penalty; or (B) With the 20-percent penalty on back taxes under ORS 285C.240(4), in the event that any provided evidence shows that the qualified business was required to have given notice under ORS 285C.240(1). Statutory/Other Authority: ORS 285A.075 & 285C.060(1) Statutes/Other Implemented: ORS 285C.175, 285C.220, 285C.225, 285C.230, 285C.235 & 285C.240 History: OBDD 40-2024, minor correction filed 10/17/2024, effective 10/17/2024 OBDD 7-2017, amend filed 11/29/2017, effective 11/29/2017 OBDD 27-2010, f. & cert. ef. 6-14-10
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 taxes) shall ensue under ORS 285C.240 only on such property, and the one-year payback of tax savings under ORS 285C.240(6) does not apply (2) Such disqualification pertains when the exempt property no longer satisfies a relevant criterion under ORS 285C.175, 285C.180, 285C.185 or 285C.190, including but not limited to property during an exemption year that is: (a) Removed from the enterprise zone; (b) Sold, exchanged or leased to another business firm, except as described in OAR 123-674-4800; (c) Used ineligibly or by an ineligible business firm in violation of OAR 123-674-5100; or (d) Not actually in use or occupancy (notwithstanding its being in service) for at least 180 consecutive days concluding in the preceding exemption year. (3) In order for the qualified business firm to avoid the 20-percent penalty on the back taxes associated with such property-specific disqualification, notice under ORS 285C.240(1)(a), (e) or (f) is due by July 1 after the year in which failure occurred. The owner of leased, exempt property may give such notice, and the firm may do so through a timely exemption claim as described in OAR 123-674-6200. Statutory/Other Authority: ORS 285A.075 & 285C.060(1) Statutes/Other Implemented: ORS 285C.175, 285C.220, 285C.225, 285C.230, 285C.235 & 285C.240 History: OBDD 41-2024, minor correction filed 10/17/2024, effective 10/17/2024 OBDD 27-2010, f. & cert. ef. 6-14-10
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) Substantial curtailment, consistent with OAR 123-674-4600; (b) Failure to satisfy an applicable local additional requirement, according to OAR 123-668-2000 to 123-668-2500, and pursuant to written notification to the assessor from the zone sponsor in the absence of notice by the firm under ORS 285C.240(1)(d); (c) Noncompliance with any general law in accordance with OAR 123-674-7200 to 123-674-7250; (d) Not meeting applicable criteria in OAR 123-674-4300 for purposes of a zone sponsor’s waiver; or (e) What is described in OAR 123-674-0500(2) for the requirements specific to an extended abatement. (2) If an event occurs relative to section (1) of this rule, then the qualified business firm shall notify both the local zone manager and the county assessor in writing at the latest by July 1 of the following year, which may also be done: (a) Through timely filing of the exemption claim in OAR 123-674-6200 that discloses the event. (b) By the owner of any qualified property that the qualified business firm leases. (3) Notice as described in section (2) of this rule shall result in either: (a) The firm reimbursing the enterprise zone sponsor for an amount equal to all associated property taxes abated in that exemption year, as described in OAR 123-674-6600 to 123-674-6630; or (b) The county assessor’s disqualifying the firm under ORS 285C.240, including loss of future years of the exemption and retroactive payment of applicable back taxes with the next tax bill. (4) If the assessor or zone sponsor discovers a failure, for which there was not timely notice as described in section (2) of this rule, then subsection (3)(a) of this rule is inapplicable, and disqualification as described in subsection (3)(b) of this rule shall include the 20-percent penalty or surcharge on back taxes. (5) Disqualification for purposes of this rule does not affect property covered by any other Application, for which the particular requirements are still satisfied, consistent with OAR 123-674-3500, except under ORS 285C.245(7) for another Application made after the zone terminated as described in OAR 123-650-9600, in which case the other such Application is nullified, and associated property, also disqualified. Statutory/Other Authority: ORS 285A.075 & 285C.060(1) Statutes/Other Implemented: ORS 285C.200, 285C.220, 285C.225, 285C.230, 285C.235 & 285C.240 History: OBDD 42-2024, minor correction filed 10/17/2024, effective 10/17/2024 OBDD 14-2024, amend filed 06/10/2024, effective 06/10/2024 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
123-674-6600 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, only if: (1) The firm fails to meet an employment, compensation, waiver, locally established condition or other requirement under ORS 285C.240(1)(b), (c) or (d), and not for any requirement pertaining to particular qualified property in OAR 123-674-6300 or to the firm’s eligibility under ORS 285C.135; (2) The firm provides written notice under ORS 285C.240 to the zone sponsor or the county assessor by not later than July 1 of the year following the year that failure as described in section (1) of this rule occurred consistent with OAR 123-674-6400(2); (3) The firm maintains the business operations pertaining to the qualified property, unless the firm can demonstrate that any discontinuation (shutdown) is only temporary; (4) The firm has not previously used ORS 285C.240(6) for any failure covered by section (1) of this rule to avoid disqualification of the same exemption, respective to property actually first qualifying in the same year, but not in other years even if covered by the same authorization and no longer exempt; and (5) The firm provides written proof to the county assessor that it has made a nonrefundable payment of the full amount of the preceding year’s tax savings to the zone sponsor, not later than August 31 of the year following: (a) The exemption year in which the failure occurred; or (b) The fourth year of exemption, in the case of failure to meet a requirement for an additional two years of exemption under ORS 285C.160, during (only) one of the first four exemption years. Statutory/Other Authority: ORS 285A.075 & 285C.060(1) Statutes/Other Implemented: ORS 285C.240 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