justicedao/ipfs_state_laws huggingface dataset:
123-668-2300 Reasonableness This rule offers guidance for evaluating whether local additional enterprise zone requirements are reasonable, such that: (1) The requirements shall not vary dramatically or erratically over time for business firms interested in investing in the zone and seeking special benefits or waivers. (2) The requirements shall not be arbitrarily applied, implemented or enforced, in that the sponsor shall be consistent in not only setting conditions, but also in how to handle compliance issues. (3) The requirements may differentiate among relevant business firms for a given situation in OAR 123-668-2000(1) or (2) in terms of investment size, the firm’s industry and so forth, but such differentiation shall be: (a) Based on definable characteristics; (b) Consistently applied in its own regard; and (c) Related to an apparent or expressed public purpose. (4) The requirements may entail economic costs to the firm because of payments to the sponsor or other entities, or of actions undertaken by the firm, but these costs (less any other consequent, material benefit to the firm) in relation to OAR 123-668-2000(2)(b) to (d) shall not exceed 25 percent of the tax savings associated with the entire property tax abatement, before the effect of school support fees under ORS 285C.162 or 285C.405. With a written agreement, however, in the case of OAR 123-668-2000(1) or (2)(a) the firm may accept higher costs based on its own considerations. (5) The requirements shall not demand procedures, practices or investments in excess of anything undertaken in the firm’s industry or related industries throughout the world, such that the sponsor shall be prepared to show that such a demand has been accomplished in the normal course of business elsewhere without apparent, extenuating circumstances. (6) No requirement may cause or compel actions by the firm that have the potential to pose a significant other legal, financial or business threat to the firm, including but not limited to: (a) Surrendering significant rights, privileges or immunities under state or federal law; (b) Labor relations that may compromise practices by the firm in other locations where it operates in the United States; or (c) Publicizing information unrelated to the administration of a local requirement that is otherwise proprietary, confidential, or threatening to the firm’s market competitiveness or contractual obligations or to that of any third party. (7) The criteria in this rule will typically concern a zone sponsor’s underlying policy, hence the recommendations in OAR 123-668-2400 for deliberate and explicit policymaking to cover certain potentialities. Statutory/Other Authority: ORS 285A.075 & 285C.060(1) Statutes/Other Implemented: ORS 285C.105, 285C.150, 285C.155, 285C.160 & 285C.403 History: OBDD 14-2024, amend filed 06/10/2024, effective 06/10/2024 OBDD 13-2015, f. & cert. ef. 11-12-15 OBDD 26-2010, f. & cert. ef. 6-14-10
123-668-2450 Approving Agreements The sponsoring city, port or county governments of an enterprise zone may authorize the written agreement with a business firm in the case of OAR 123-668-2000(1) or (2)(a) through a number of approaches, which may differ among the cosponsors, including but not limited to the following examples: (1) Approval by an official normally empowered to enter into such an agreement under the laws, charters, ordinances and conventions of the cosponsor; (2) Approval by the person or persons formally and specifically recognized to conclude the agreement, pursuant to a previous accord between the firm and the sponsor; (3) A specific resolution by the governing body authorizing a preliminary or final written agreement; (4) A specific resolution by the governing body that authorizes an agent to conclude such an agreement; (5) A standing policy adopted by the cosponsor that empowers a particular agent to negotiate such an agreement with all or some firms on behalf of the cosponsor (for example, the local zone manager); or (6) An intergovernmental agreement that delegates to the cosponsor(s), in whose jurisdiction the firm will locate its exempt property, the right to execute the agreement on behalf of the entire zone sponsor. Statutory/Other Authority: ORS 285A.075 & 285C.060(1) Statutes/Other Implemented: ORS 285C.105, 285C.160 & 285C.403 History: OBDD 13-2015, f. & cert. ef. 11-12-15
123-668-3000 REQUSITE OPENNESS & COMMUNICATION — Posted Agreements For purposes ORS 285C.163 and 285C.407: (1)(a) A written agreement under ORS 285C.160 or 285C.403(4) between a business firm and an enterprise zone sponsor does not come into effect until it has been posted online for at least 21 days. (b) The online posting shall be on the website of at least one cosponsor of the enterprise zone; and (c) The zone co/sponsor is solely for responsible for determining: Appropriate place at website for posting, ways to draw attention to it, whether to extend posting beyond 21 days, otherwise making it or related information publicly available, any opportunity for public response, or the like. (2) The posting in section (1) of this rule shall include but is not limited to: (a) Explanation or introduction offering context; and (b) The full text or at least all substantive parts of the written agreement, including but not limited to any requirement imposed on the business firm as described in OAR 123-668-2000 to 123-668-2500: (A) As the agreement is at least expected to be executed consistent with section (3) of this rule; but (B) With requisite redactions that: (i) Prevent publicizing the firm’s identity or any confidential, proprietary, or otherwise sensitive or legally protected data about parties to the agreement or proposed investment or operations of the firm. (ii) Do not contravene legal provisions for public disclosure of the associated application for authorization or certification, once approved, or other public records, if requested, notwithstanding exemptions under ORS 285C.145(4) or other laws. (3) At the time of posting in section (1) of this rule: (a) Options for the current state of the agreement include but are not limited to its being: (A) A final draft to which the sponsor and business firm might make limited changes after the 21 days; (B) Fully finalized and taking effect, as is, on or after it is signed following the 21 days; or (C) Executed but specifying a date when it becomes effective after the 21 days, whether for that or other reasons; and (b) Likewise, specific resolutions described in OAR 123-668-2450 may or may not yet be adopted. (4) This rule is not discernibly relevant for any other situation, except as described in subsection (1)(a) of this rule, but possibly for situations applicable to OAR 123-668-2000(2)(b) to (d) or otherwise, if somehow involving a/another written agreement: (a) Between a business firm and the sponsor of an enterprise zone regarding use of the zone; and (b) Suitable and understandable for posting on a local government website as described by this rule. Statutory/Other Authority: ORS 285A.070, 285C.060(1), 285C.163(1)(b) & 285C.407(1)(b) Statutes/Other Implemented: ORS 285C.160, 285C.163, 285C.403 & 285C.407 History: OBDD 14-2024, adopt filed 06/10/2024, effective 06/10/2024
123-668-3500 Infrastructure in Neighboring Jurisdictions Under ORS 285C.142 and 285C.404, for any situation relevant to OAR 123-668-3000, if the zone sponsor determines that future investments or operations of the business firm in using the enterprise zone will potentially have an impact on infrastructure within the jurisdiction of a local government aside from any government that (co)sponsors the zone, then the sponsor shall give notice to that government: (1) The notice shall occur as soon as possible after the determination is made, before entering into an agreement with the business firm, and shall describe the potential impact in writing. (2) Local governments include any city, county or local service district, or any subdivision of the same, with territory adjacent to but outside any sponsoring government and inside this state, regardless that: (a) Its jurisdiction also extends within the boundary of the zone or that of a sponsoring government; (b) It is a district listed under ORS 174.116, 198.010 or 198.080; (c) It does not have taxing authority; or (d) It does not provide or support the infrastructure. (3) A relevant impact is any substantial interference with or significantly increased demand or burden on the availability or provision of infrastructure inside the local government, including but not limited to: (a) Roads, transportation, shipping or transit; (b) Systems or facilities for sanitary sewer, stormwater, or water quality or supply; (c) Public or private utilities such as for electricity; (d) Telecommunication or broadband; (e) Sanitation or waste disposal services; (f) Housing resources; or (g) Emergency or public safety response. (4) If the impact is not recognized until after entering into the agreement, the zone sponsor may still give notice. Statutory/Other Authority: ORS 285A.075 & 285C.060(1) Statutes/Other Implemented: ORS 285C.142, 285C.160, 285C.403 & 285C.404 History: OBDD 14-2024, adopt filed 06/10/2024, effective 06/10/2024
123-668-4100 Fee Rate Characteristics As established according to OAR 123-650-5300 or 123-668-4000, the fee rate for school support: (1) Must be exactly the same for every agreement under ORS 285C.160 or 285C.403(4) with any business firm with exempt property inside the same area that is shared by the enterprise zone and the school district. (2) Shall be either 22.5% or a whole percentage (without any decimal) in the range of 15.0% to 30.0%. (3) May not change until the enterprise zone is (again) re‑designated. (4) May be set: (a) In an enterprise zone for which the boundary encompasses territory of multiple school districts: (A) Independently with each district, regardless of setting a rate that is different or the same with any other school district; or (B) Jointly at the same percent with two or more districts, including but not necessarily with all such districts. (b) Jointly by two or more enterprise zones at the same percent with any school district that contains territory inside all of the zones’ boundaries. Statutory/Other Authority: ORS 285A.075, 285C.060(1) & 285C.067(2) Statutes/Other Implemented: ORS 285C.067, 285C.160, 285C.162, 285C.403, 285C.405 & OrLaws 2023 ch. 298 §§53, 54 & 55 History: OBDD 14-2024, adopt filed 06/10/2024, effective 06/10/2024
123-668-4200 Fee Payment and Administration For purposes of an agreement between an enterprise zone sponsor and a business firm and the school support fee rate as described in OAR 123-668-4000 and 123-668-4100: (1) Fees are not collected for: (a) The first, second or third year of any standard exemption period under ORS 285C.175; or (b) A year preceding the sixth year of exemption on any long-term rural facility under ORS 285C.409(1)(c). (2) For other years, the fee is based on that year’s property tax savings due to the exemption, which pursuant to the current certified property tax assessment roll: (a) Correspond to what is entered on the rolls under ORS 285C.175(7)(b) or 285C.409(3)(b); (b) Include all taxing districts in each tax code area containing exempt property inside the school district (not only the school district’s forgone taxes); (c) Would be the best estimate accounting for significant factors under state law, such as market valuation, maximum assessed value, and the tax rate to have been effectively imposed on exempt property including, as practicable, compression or urban renewal division of tax revenue, as if there were no exemption; and (d) Are not affected by any other fee or payment related to the same tax savings or by any discount or circumstance as if property taxes were actually paid. (3) With any applicable exemption year, the zone sponsor/local zone manager shall: (a) In October, seek information from the county assessor of estimated property tax savings consistent with section (2) of this rule that is broken out by relevant business firm and each school district in which any firm has applicably exempt property; and (b) By November 1, communicate or deliver to appropriate administrators of any relevant school district: (A) A copy of the respective agreement; (B) Current status and applicable year of each business firm’s exemption; (C) That year’s estimated property tax savings and the fee amount resulting from the established rate; and (D) Complete, up-to-date information for effectively contacting and soliciting payment from each firm. (4) School district officials correctly in receipt of information in subsection (3)(b) of this rule: (a) Shall ensure that any affected business firm receives notice on or before December 1 for the amount and calculation of the fee due, with instructions to successfully make payment by December 31 and to promptly receive proof of payment; (b) May make use of: (A) Electronic systems to handle transactions; (B) Certified mail or other means to verify or record exchanges; or (C) Services of another organization to invoice and process fees on behalf of the district. (5) Fee money paid by a business firm is credited to the school district as local revenue in direct relation to the associated exempt property of the firm located only in that district, irrespective of: (a) Paragraph (4)(b)(C) of this rule; or (b) The existence of any other school district inside the enterprise zone. Statutory/Other Authority: ORS 285C.075, 285C.060(1) & 285C.067(2) Statutes/Other Implemented: ORS 285C.160, 285C.162, 285C.403 & 285C.405 History: OBDD 14-2024, adopt filed 06/10/2024, effective 06/10/2024
123-674-0001 Purpose, Scope and General Process for Businesses Seeking Exemption (1) This division of administrative rules clarifies, specifies and establishes elements of ORS 285C.050 to 285C.250 ( Oregon Enterprise Zone Act ) for the determinations, procedures and requirements relevant to the three- to five-year exemption from property taxes under ORS 285C.175 on qualified property of eligible business firms in any enterprise zone. (2) The outline of these rules, regarding a business firm’s receipt of this exemption, is that: (a) The sponsor of the enterprise zone may extend the usually three-year period to four or five consecutive years in total by executing a written agreement with the firm before approval of the application in subsection (c) of this section. (b) The firm must be engaged in eligible activities as primarily determined with authorization. (c) The firm must apply for authorization, generally before any work begins on the new investment, and the local zone manager and the county assessor need to authorize the firm. (d) The firm must initially satisfy certain hiring criteria and then maintain corresponding employment minimums during the entire exemption period in order to first become and then stay qualified. (e) The exemption is primarily on certain new property and only for an authorized firm that timely claims the exemption with the assessor after it has placed the property in service; before that, it may be exempt under ORS 285C.170. (3) These administrative rules do not control or bind the county assessor or Department of Revenue and are superseded by OAR chapter 150 in matters related to tax administration including but not limited to rules for purposes of the statutory sections listed in ORS 285C.125(1). Statutory/Other Authority: ORS 285A.075 & 285C.060(1) Statutes/Other Implemented: ORS 285C.045 & 285C.050 – 285C.250 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
123-674-0500 EXTENDED TAX ABATEMENT — General Points With respect to an extended period of property tax abatement longer than three years under ORS 285C.160 and 285C.175(2)(b): (1) The period in which a qualified business firm needs to comply with all regular enterprise zone requirements is also extended for up to two more years, exposing the firm to having to pay back all four or five years of abated taxes because of noncompliance and regular disqualification, for example, in the event of substantial curtailment in either of those two years. (2) The exemption shall revert to the basic three-year period upon failure to satisfy an applicable requirement only in OAR 123-674-0600 or 123-674-0700, triggering repayment of taxes abated (only) in the fourth or fifth year if there are any. (3) Even as other property continues to receive the extended abatement, a qualified business firm may elect to have certain property terminate its exemption after the third year, such that it is then subject to taxation but not to retroactive disqualification under ORS 285C.240(1)(a), (e) or (f). What property is exempt for only three years or may receive additional years of exemption shall be described in: (a) The written agreement in OAR 123-674-0700; or (b) Specific notice provided to the county assessor from the firm or property owner no later than April 1 directly following the third exemption year. (4) An eligible business firm has the same rights of appeal as provided elsewhere in ORS 285C.050 to 285C.250 for the enterprise zone exemption, and no part of this division of administrative rules shall interfere with those rights, subject to the determination of appellate authorities. (5)(a) Requirements in OAR 123-674-0600 are inapplicable and are not to be included in the written agreement described in OAR 123-674-0700 of any qualified business firm, for which based on the time when the Application was submitted, its qualified property is located inside: (A) An urban enterprise zone; and (B) A metropolitan statistical area with a total population of 400,000 or greater inside Oregon, based on the most recent estimate available from the Portland State University Population Research Center. (b) As such, at the time of this rulemaking, this section pertains only to zones inside the urban growth boundaries of the Portland–Metro region and of Salem–Keizer . Statutory/Other Authority: ORS 285A.075 & 285C.060(1) Statutes/Other Implemented: ORS 285C.050, 285C.160, 285C.165 & 285C.175(2)(a)(B) 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
123-674-0700 Written Agreement between Sponsor and Eligible Business Firm For purposes of the written agreement that is required between the sponsor of an enterprise zone and an eligible business firm under ORS 285C.160: (1) To receive an additional one or two years of exemption, the agreement must be finalized no later than completion of the Approval Form. (2) Both the Firm/applicant seeking an extended abatement and the sponsor of the zone (see OAR 123-668-2450) must formally endorse the agreement. (3) The agreement shall specify whether: (a) The total period of abatement is four or five consecutive years; and (b) The Firm/applicant needs to fulfill any additional requirement with respect to determining satisfaction and consequence of its not being met, in accordance with OAR 123-668-2000 to 123-668-2500. (4) Adherence to or satisfaction of such additional requirements shall in no way condition the first three years of an eligible business firm’s enterprise zone exemption under ORS 285C.175(2)(a). (5) For any agreement entered into on or after September 24, 2023, it: (a) Shall take effect only in accordance with OAR 123-668-3000. (b) Is not valid unless stipulating a rate for the school support fee under ORS 285C.160(2) in accordance with OAR 123-668-4000 and 123-668-4100. (6) Notwithstanding section (1) of this rule, if the zone sponsor rejected a Firm/applicant’s request for an extended tax abatement, and the Application was subsequently approved, but commencement of construction, modification or installation of qualified property has not yet occurred, then the sponsor may reverse its decision and enter into a written agreement based on a resubmitted Application. Statutory/Other Authority: ORS 285A.075 & 285C.060(1) Statutes/Other Implemented: ORS 285C.140, 285C.160, 285C.162, 285C.163 & 285C.175 History: OBDD 14-2024, amend filed 06/10/2024, effective 06/10/2024 OBDD 22-2023, minor correction filed 08/24/2023, effective 08/24/2023 OBDD 14-2016, f. & cert. ef. 9-16-16 OBDD 27-2010, f. & cert. ef. 6-14-10
123-674-1000 BUSINESS ELIGIBILITY — Special Business Distinctions For these administrative rules: (1) As used in ORS 285C.050 to 285C.250, “hotel, motel or destination resort” means any ‘destination resort’ or ‘hotel or motel’ facility as defined in OAR 150-285-3200 . (2) “Fulfillment center” as used in ORS 285C.135(2)(c) means a facility, for which 25 percent or more of its newly re/constructed space or annual labor expense is used to process, handle or transport goods that: (a) Are not also produced, fabricated or similarly subject to value-added treatment at that facility; (b) Fulfill a retail purchase or transaction, for example, through a call center or electronic commerce; and (c) Are delivered to customers, consumers or end-users (regardless that they are businesses rather than households) located inside this state within: (A) 50 miles of travel distance from the facility; or (B) 30 miles of straight-line distance from any place on the enterprise zone boundary. (3) As used in ORS 285C.050(3): (a) “Municipal corporation” has the same meaning as found under ORS 294.311, including but not limited to any special or local service district, but excluding a people’s utility district or a joint operating agency under ORS 262.005. (b) “Operating or conducting one or more trades or businesses” means to manage or undertake commercial affairs, as evidenced by the following: (A) Establishment of a place of business and acquisition of property that is necessary to perform business operations through ownership, renting or leasing; (B) Approval to do business from the appropriate regulatory authorities, as documented by required licenses or permits; (C) Capital investment or financing, including self-financing, and procurement of supplies or services from other businesses or operations within the firm; (D) Maintenance of business records such as those related to sales, shipments, personnel or payroll; and (E) Ultimate pursuit is producing or furthering the production of income. (4) “Professional services” as used in ORS 285C.135(2)(b) means the intellectual output of recognized professions (based on advanced training, certifications or the like) that takes the form of unique advice, reports, designs, schematics, plans and so forth for external clients or customers, in contrast to internal inputs that directly support eligible operations within the enterprise zone. (5) “Separate” as used in ORS 285C.135(3) means a definitive and physical demarcation, including but not limited to a wall between eligible and ineligible activities sufficient to distinguish the employees and qualified property pertaining to either one. Statutory/Other Authority: ORS 285A.075 & 285C.060(1) Statutes/Other Implemented: ORS 285C.070 & 285C.135 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