Oregon Business Development Department
Chapter 123
Division 668
LOCAL ENTERPRISE ZONE SPONSORSHIP
123-668-2000
REQUIREMENTS ON BUSINESSES — Applicable Situations
OAR 123-668-2000 to 123-668-2500 govern the situations described in sections (1) and (2) of this rule, in which a business firm shall satisfy additional, locally imposed conditions or requirements in an enterprise zone:
(1) The written agreement by a certified business firm with the zone sponsor for the long-term rural tax incentive under ORS 285C.403(3)(c) and described in OAR 123-690-2000.
(2) Standard property tax exemptions in OAR 123-674 involving:
(a) A written agreement for the extended abatement of four or five consecutive years in total under ORS 285C.160 between the zone sponsor and an authorized business firm, consistent with OAR 123-674-0700;
(b) Adoption of sponsor resolution(s), by which the statutorily required increase in zone employment of the firm is waived under ORS 285C.155 and 285C.200(2), including criteria under ORS 285C.205 as applicable and the sponsor’s requisite setting of a minimum level of employment, in accordance with OAR 123-674-4300;
(c) A policy and standards adopted by the sponsor of an urban enterprise zone under ORS 285C.150 affecting all authorized business firms, as addressed in OAR 123-668-2500 and documented with approval of the application for authorization; or
(d) A suspension of the exemption and its resumption with or without a reduced level of required employment under ORS 285C.203, inasmuch as the zone sponsor may impose conditions in accordance with OAR 123-674-6885.
(3) Respective to sections (1) and (2) of this rule:
(a) The absence of any such stipulated requirement in an agreement, resolution or other such instrument conveying a business firm’s tax abatement or benefit suffices as proof that the abatement or benefit is not contingent on satisfaction of any additional, locally imposed condition; though, it is advised that the instrument clearly say as much;
(b) It is incumbent on the zone sponsor to take the actions necessary to consistently implement, monitor and enforce such conditions, additional requirements or policies on and with any applicably affected business firm;
(c) The county assessor is excused from any duty or obligation to track or determine satisfaction by a business firm with relevant local criteria or conditions set by zone sponsor; and
(d) The assessor shall enforce any such additional requirement through denial or disqualification of the exemption pursuant only to:
(A) Timely notice by a qualified business firm or an owner of qualified property leased by the qualified business firm under ORS 285C.240(1)(d); or
(B) Written request from the zone sponsor to take such action accompanied by documentation or evidence of the firm’s noncompliance and of how that effectively invalidates the firm’s abatement of property taxes.
(4) Subsection (3)(d) of this rule does not affect implementation or enforcement through loss of exemption as a consequence of noncompliance by a business firm or of property with an applicable requirement under state law as set forth in ORS 285C.050 to 285C.250 or 285C.400 to 285C.420, based on information or evidence from the firm or any other source, including but not limited to:
(a) Average employee compensation or wages of new employees of the firm under ORS 285C.160(3), regardless of proper stipulation of any such requirement in the written agreement entered into by the firm and the sponsor;
(b) The investment minimum under ORS 285C.200(2)(b)(A); or
(c) Minimum number of employees of the firm set the zone sponsor under ORS 285C.155 or 285C.203 in lieu of ORS 285C.200(1)(c) and related provisions under ORS 285C.210.
(5) Consistent with OAR 123-688-1100(1)(d) and (2), the sponsor of an enterprise zone shall inform and update the county assessor, Department of Revenue, local publicly funded job training providers or their contact agency for first source hiring agreements as relevant, and the Department about any such condition or additional requirement in section (2) of this rule that is normally sought, including but not limited to any change in an adopted policy, criteria or methods to be used in implementing ORS 285C.150, 285C.155, 285C.160, 285C.203 or 285C.205.
Statutory/Other Authority: ORS 285A.075 & 285C.060(1)
Statutes/Other Implemented: ORS 285C.105, 285C.150, 285C.155, 285C.160, 285C.203, 285C.225, 285C.230, 285C.235, 285C.240 & 285C.403
History:
OBDD 13-2023, amend filed 07/05/2023, effective 07/05/2023
OBDD 9-2020, amend filed 08/12/2020, effective 08/12/2020
OBDD 8-2017, amend filed 11/29/2017, effective 11/29/2017
OBDD 13-2015, f. & cert. ef. 11-12-15
OBDD 26-2010, f. & cert. ef. 6-14-10