Oregon Business Development Department
Chapter 123
Division 674
STANDARD EXEMPTION ON TAXABLE ENTERPRISE ZONE PROPERTY
123-674-1700
Headquarter Facilities
For purposes of ORS 285C.135(5)(b):
(1) A Firm/applicant and its operations are eligible, regardless of retail, financial, professional or other such ineligible activities, if:
(a) The business is operating substantially at two or more locations including at least one place outside of the enterprise zone;
(b) The operations in the zone support and serve the firm’s other operations or commercial pursuits throughout this state or throughout a multiple-state or larger region consistent with section (5) of this rule; and
(c) In approving the Application, the local zone manager includes on behalf of the sponsor pursuant to the Preauthorization Conference under ORS 285C.140(7) a formal finding that:
(A) Describes how the proposed investment and the business firm will satisfy subsections (a) and (b) of this section, including indications of applicable services, relevant region and the relationship among intra-firm operations; and
(B) Asserts that the proposed investment is significant for the enterprise zone and the local economy, succinctly explaining the reasons for this significance, such as the size of proposed operations relative to local measures of commerce, special job opportunities, diversification, strategic, marketing or visibility objectives of the zone, or other impacts.
(2) As required under ORS 285C.180(2)(g), the business firm may not qualify for the exemption under ORS 285C.175, if the actual investment in qualified property does not substantively correspond to what was proposed in or with the Application. In determining if an actual investment is significantly inconsistent with such descriptions, relevant factors for the zone sponsor and county assessor to consider include but are not limited to:
(a) Is total cost of investment comparable to estimated costs? …, which under ORS 285C.185(2) is a matter only of relative amounts;
(b) Is the configuration and size of the building(s) similar to what was communicated or documented? …;
(c) Did the timing of construction and installation of machinery & equipment approximate what was anticipated? …;
(d) Will the facility undertake basically the same administrative, engineering or other (professional service) functions as proposed and otherwise fulfill the finding pursuant to paragraph (1)(c) of this rule? …; or
(e) Is facility employment for purposes of section (4) of this rule like what was predicted?
(3) The local zone manager shall include the formal finding as part of the approved Application and may modify it prior to an authorized business firm qualifying for the exemption, consistent with an amendment for OAR 123-674-3200.
(4) For purposes of OAR 123-674-4000 to 123-674-4800, as provided under ORS 285C.200(7)(b)(B), only the employees working at a facility described in this rule are counted consistent with OAR 123-674-0200(3)(a), and as such, employees of the firm that are transferred to the facility from locations already in the zone may count toward the facility’s requisite increase in employment.
(5) The main commercial pursuit of a business firm may itself be ineligible under ORS 285C.135(1) and (2), but if so, then a facility described in this rule may not be used significantly to carry out such operations, for example, as a center or base of activities or staff that provide services to customers. Rather, the facility must serve the firm’s internal needs with administration, logistics and so forth.
Statutory/Other Authority: ORS 285A.075 & 285C.060(1)
Statutes/Other Implemented: ORS 285C.135, 285C.140, 285C.180 & 285C.200
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 15-2012, f. & cert. ef. 8-15-12
OBDD 27-2010, f. & cert. ef. 6-14-10