Oregon Business Development Department
Chapter 123
Division 674
STANDARD EXEMPTION ON TAXABLE ENTERPRISE ZONE PROPERTY
123-674-4300
Local Waiver of Employment Increase inside Zone
For purposes of ORS 285C.200(2), in which the local enterprise zone sponsor waives the required increase in the employment of the firm:
(1) With such a waiver, the requirements described in OAR 123-674-4100(1) or 123-674-4600(1) do not apply, but requirements or restrictions related to transferring existing employment or operations into the zone from elsewhere in Oregon still matter, consistent with OAR 123-674-4100(3), 123-674-4200 and 123-674-4600(2), and are not subject to any such waiver.
(2) Each governing body of the sponsor must adopt a resolution under ORS 285C.155:
(a) Before authorization of the eligible business firm;
(b) Stipulating the minimum employment level to be maintained during the exemption as described in section (4) of this rule; and
(c) Identifying any other reasonable condition in accordance with OAR 123-668.
(3) The resolution(s) described in section (2) of this rule shall incorporate either:
(a) The minimum amount of investment according to section (5) of this rule; or
(b) Specifications and methods for managing, measuring and enforcing the requirements under ORS 285C.205, by which the authorized business firm shall effectively:
(A) Increase productivity by 10 percent; and
(B) Dedicate to employee or workforce training an amount at least equal to 25 percent of the property tax savings through deposits into an account as described in OAR 123-668-1600(2).
(4) The minimum employment as stipulated in the resolution(s):
(a) Is a single, stated number of employees;
(b) May be determined, as indicated in the resolution(s), by way of either Annual Employment or Claim Employment; and
(c) Relative to Existing Employment, it:
(A) May be lower for a waiver under ORS 285C.200(2)(b)(A) subject to section (5) of this rule; or
(B) Shall be at least the same if using the productivity and workforce training provisions for a waiver under ORS 285C.200(2)(b)(B) according to subsection (3)(b) of this rule.
(5) For a waiver based on ORS 285C.200(2)(b)(A), the authorized business firm must make an investment in qualified property under ORS 285C.050:
(a) That is placed in service over as many as three successive years, at one or more locations inside the same enterprise zone (… and pursuant to as many Applications inasmuch as property at such locations is also to be exempt);
(b) Regardless that some such qualified property is not actually exempt under ORS 285C.175, including but not limited, for example, to the property’s not being used in eligible activities; and
(c) The total cost of which consistent with OAR 123-674-5000 is at least $25,000,000.
(6) Prior to July 1 of the first tax year of exemption, the sponsor may (jointly) modify its resolution in accordance with sections (2) to (4) of this rule, but only if so requested by the firm.
(7) Failure to satisfy the minimums, requirements or conditions, as described in this rule, shall result in the exemption’s denial or disqualification, except if the firm otherwise meets requirements described in OAR 123-674-4100(1) or 123-674-4600(1). The county assessor is in no way obligated to consider the firm's compliance with respect to any requirement arising from subsection (2)(c) or (3)(b) of this rule without formal confirmation from the zone sponsor.
Statutory/Other Authority: ORS 285A.075 & 285C.060(1)
Statutes/Other Implemented: ORS 285C.155, 285C.200, 285C.205, 285C.230 & 285C.240
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