2023 Oregon Revised Statutes › Volume : 07 - Public Facilities and Finance › Chapter 285C - Economic Development III › Section 285C.245 - Termination; reservation zones; effect of termination on exemption; disqualification.

(1) An enterprise zone designated under ORS 285C.050 to 285C.250 shall terminate on the earliest of the date on which:
(a) Ten years plus that number of days necessary to delay the date of termination to the June 30 next following have elapsed since the effective date of the designation;
(b) The termination is requested or ordered under subsection (2) or (3) of this section, respectively; or
(c) The enterprise zone is terminated under ORS 285C.255 (1)(c).
(2)(a) The governing body of the zone sponsor may submit to the Oregon Business Development Department a resolution requesting termination of an enterprise zone. The sponsor shall provide copies of the resolution to the county assessor and the Department of Revenue.
(b) After receipt of the request, the Director of the Oregon Business Development Department shall order termination of the enterprise zone and shall specify the effective date of the termination.
(3)(a) If a zone sponsor is unable or unwilling to carry out its responsibilities under ORS 285C.105, the director shall order termination of the enterprise zone and shall specify the effective date of the termination.
(b)(A) Notwithstanding paragraph (a) of this subsection, in the case of failure to provide enhanced local public services, local incentives or local regulatory flexibility that the sponsor has established under ORS 285C.105, termination is not required if the sponsor provides to any affected authorized, qualified or certified business firms new enhanced local public services, local incentives or local regulatory flexibility of comparable value, or makes reasonable corrections of shortcomings in existing local incentives.
(B) A sponsor may reduce the time within which it will provide enhanced local public services, local incentives and local regulatory flexibility to a time period equal to the amount of time allowed for an exemption under ORS 285C.175 or 285C.409 without causing termination under this section.
(4) A reservation enterprise zone designated, or a reservation partnership zone cosponsored, under ORS 285C.306 shall terminate in accordance with subsection (1) of this section but may be redesignated at any time under ORS 285C.306.
(5) The termination of an enterprise zone under this section does not affect:
(a) The continuation of a property tax exemption first allowed for the qualified property or facility of a business firm under ORS 285C.175 or 285C.409, respectively, before the effective date of the termination of the enterprise zone; or
(b) The ability of a business firm to claim exemption under ORS 285C.175 or 285C.409 if:
(A) The application for authorization or certification of the business firm was filed with the sponsor under ORS 285C.140 or 285C.403, respectively, before the effective date of the termination of the zone;
(B) The business firm remains authorized or certified, as applicable, at the time the exemption is claimed;
(C) The business firm completes construction, reconstruction, addition, modification or installation of the qualified property or facility, as applicable, within a reasonable time and without interruption of construction, reconstruction, addition, modification or installation activity; and
(D) The qualified property or facility meets all other applicable requirements for exemption under ORS 285C.175 or 285C.409, respectively.
(6)(a) A business firm that is currently authorized or qualified in an enterprise zone when the zone is terminated shall be allowed for 10 years after the effective date of the termination to apply for authorization under ORS 285C.140 and to subsequently claim the exemption under ORS 285C.175 for any qualified property that is constructed, added, modified or installed inside the former enterprise zone boundaries, as those boundaries existed at the time of termination, and entirely outside the boundaries of any current enterprise zone.
(b) Construction, addition, modification or installation of qualified property must commence prior to the end of the final tax year for which qualified property of the firm is exempt under ORS 285C.175 and must be completed within a reasonable time and without interruption of construction, addition, modification or installation activity. The property must meet all other applicable requirements for exemption under ORS 285C.175.
(7) Disqualification under ORS 285C.240 of all exempt property of a business firm:
(a) After the effective date of the termination of the enterprise zone shall prohibit and terminate all authorizations sought or obtained by the business firm that would not be allowed but for subsection (6) of this section.
(b) On or after the effective date of the termination of the enterprise zone shall cause the assessor to deny any claim for exemption under ORS 285C.175 of qualified property of the business firm made for a subsequent tax year.
(8)(a) A business firm that is currently certified in a rural enterprise zone when the zone is terminated shall be allowed for 10 years after the effective date of the termination to apply for certification under ORS 285C.403 and to subsequently claim the exemption under ORS 285C.409 for any facility that is constructed, reconstructed or installed inside the former rural enterprise zone boundaries, as those boundaries existed at the time of termination, and entirely outside the boundaries of any current enterprise zone.
(b) Construction, reconstruction or installation of the facility must commence prior to the end of the final tax year for which the facility of the firm is exempt under ORS 285C.409 and must be completed within a reasonable time and without interruption of construction, reconstruction or installation activity.
(c) The facility must meet all other applicable requirements for exemption under ORS 285C.409 and 285C.412.
(9) Disqualification under ORS 285C.420 of all exempt facilities of a business firm:
(a) After the effective date of the termination of the rural enterprise zone shall prohibit and terminate all certifications sought or obtained by the business firm that would not be allowed but for subsection (8) of this section.
(b) On or after the effective date of the termination of the rural enterprise zone shall cause the assessor to deny any claim for exemption under ORS 285C.409 of a facility of the business firm made for a subsequent tax year. [Formerly 285B.686; 2010 c.76 §21; 2015 c.648 §23; 2023 c.298 §29]