Oregon Business Development Department
Chapter 123
Division 674
STANDARD EXEMPTION ON TAXABLE ENTERPRISE ZONE PROPERTY
123-674-1100
Basic Eligibility of Firms and Operations
For purposes of determining the business eligibility under ORS 285C.135(1) in an enterprise zone:
(1) The Firm/applicant (when qualified) must:
(a) Be a business firm consistent with OAR 123-674-1000(2); and
(b) Produce, sell or provide goods, commodities, products, merchandise, work or services to other businesses, business operations or organizations, or be capable of doing so, through eligible activities.
(2) A business firm’s relevant operations will indicate such eligibility if they are:
(a) Performed for internal purposes of the firm;
(b) Reimbursed through sales to another business firm;
(c) Equivalent to what is done for other business firms, even if the actual customer is a government agency or a public or nonprofit corporation/organization; or
(d) Undertaken to create or add value to goods, products or services for ultimate exchange with persons or entities residing beyond the local economy.
(3) Besides manufacturing, assembly, fabrication, processing, shipping or storage, eligible activities include:
(a) Industrial processes or services such as cleaning, coating, curing, kiting, labeling, laminating, packaging, refining, smelting, sorting or treating;
(b) Generation or co-generation of electricity, steam or heat;
(c) Recycling of post-consumer or post-production materials or wastes;
(d) Nonretail, in-shop refurbishment or restoration of equipment or machinery;
(e) Maintenance service or repair work on vehicles, products, parts or devices, performed on a nonretail (e.g., contract) basis at a permanent location, facility or shop, including but not limited to warranty service contracted or paid for by the manufacturer;
(f) Technical/customer support performed for internal purposes of the firm, or contracted or paid for by a nonretail third party such as a product’s distributor or manufacturer contracts or pays;
(g) Standardized product testing, quality control or laboratory work, including but not limited to services provided to healthcare businesses or organizations that themselves treat patients;
(h) Bulk clerical processing or data center operation for internal or external business services;
(i) Development of standardized computer software products or customized products for business users;
(j) Printing or mass document production;
(k) General production of molds, forms, models, prototypes or similar items for other businesses that does not, in and of itself, merely fulfill an architectural, design or similarly advanced professional service;
(l) Distribution, including shipping, storage and warehouse functions that entail deliveries generally beyond the local area/enterprise zone boundary or to recipients who are variously businesses, organizations, or households for which the delivery is not a direct consequence of a retail purchase;
(m) Wholesaling, which may include complex transactions for single-item purchases by other businesses of large equipment involving contracts, factory-ordered specifications or other attributes distinguishing the sale from retail;
(n) Production of agricultural, mineral, timber or other primary goods or commodities; or
(o) Similar types of business operations.
(4) As a matter of principle, eligibility and ineligibility are mutually exclusive under ORS 285C.135.
Statutory/Other Authority: ORS 285A.075 & 285C.060(1)
Statutes/Other Implemented: ORS 285C.135
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