Oregon Business Development Department
Chapter 123
Division 674
STANDARD EXEMPTION ON TAXABLE ENTERPRISE ZONE PROPERTY
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