Current through Register Vol. 63, No. 9, September 1, 2024
In relation to OAR
123-650-9100(1)
when an enterprise zone terminates:
(1) This rule defines the effect for
exemptions on business property under:
(a)
ORS 285C.175 consistent with OAR
123-674 for standard enterprise zone tax abatement (hereinafter "SEZ");
or
(b) ORS
285C.409(1)
consistent with 123-690 for long-term rural enterprise zone facility tax
abatements (hereinafter "LRZ").
(2) Regardless of the reason for termination,
if the enterprise zone still exists on January 1 of an exemption year:
(a)
(A) An
SEZ exemption on qualified property in that year shall continue as it otherwise
would for the remainder of that exemption period; and
(B) The qualified business firm may claim
exemption(s) on additional property, as otherwise allowed under ORS
285C.255(3),
pursuant to the same authorization under ORS
285.140; and
(b) Any exemption on an LRZ
facility in that year shall continue as it otherwise would until the final year
under ORS 285C.409(1)(c),
as provided under ORS
285C.403(4)(a).
(3) Regardless of the reason for
termination, in the case of any approved, outstanding application for
authorization under ORS
285C.140 or for certification
under ORS 285C.403:
(a) The authorized business firm shall
receive SEZ exemption(s) consistent with subsection (2)(a) of this rule as it
otherwise would, provided that:
(A) The
authorization was still active under ORS
285C.165 according to OAR
123-674-3700, as of the
effective date of the enterprise zone's termination;
(B) Proposed investments pursuant to the
application are completed consistent with OAR 123-650-9700; and
(C) The authorization has not expired because
an exemption is not successfully claimed on qualified property for a year
beginning on January 1 not more than:
(i) Two
full calendar years after termination; or
(ii) Three full calendar years after
termination if the total cost of qualified property by that year equals or
exceeds $25 million.
(b) The certified business firm shall receive
an LRZ exemption consistent with subsection (2)(b) of this rule as it otherwise
would, provided that:
(A) Proposed investments
pursuant to the application are completed consistent with OAR 123-650-9700;
and
(B) The certification has not
expired because an exemption is not successfully claimed on facility property
for a year beginning on January 1 not more than three full calendar years after
termination.
(4) For an enterprise zone
Terminated-by-Statute or subject to early termination (but not programmatic
sunset):
(a)
(A) If the zone sponsor or county assessor
receives an application for authorization or certification before the effective
date of termination, they may approve the application as normally allowed under
ORS 285C.140 or
285C.403 after the zone's
termination;
(B) Though, for
purposes of LRZ certification, the agreement under ORS
285C.403(4)
must have been executed, even if not yet in effect, before the date of the
zone's termination;
(b)
Approval must precede January 1 at the beginning of the SEZ or LRZ exemption
period; and
(c) An authorized or
certified business firm shall receive SEZ or LRZ exemption as it otherwise
would subject to satisfying paragraphs (3)(a)(B) and (C) or subsection (3)(b)
of this rule.
(5) Except
as allowed under ORS 285C.245(6) or
(8), consistent with OAR 123-650-9600(1), in
the case of a business firm that is also qualified or approved in the
terminated enterprise zone according to section (2) or (3) of this rule under
another authorization or certification:
(a) A
business firm described in section (4) may not reapply or be reapproved;
and
(b) An application for
authorization or certification received after the zone's termination may not be
accepted or approved for an SEZ or LRZ exemption.
(6) A year of exemption on qualified property
under ORS 285C.170 (construction in
process) is unaffected by the zone's termination on or after January 1 of that
year, whatever the reason, but no such exemption is allowed in any further
year.
(7) For purposes of
programmatic sunset of all enterprise zones:
(a) The following are unaffected:
(A) Ongoing use of exemptions from property
taxes or any approval in a terminated zone consistent with subsection (2) or
(3) of this rule; or
(B) Continuing
use of OAR 123-650-9600 under ORS
285C.245(6) or
(8) in a previously terminated
zone.
(b) In the case of
unapproved applications for authorization or certification received by the zone
sponsor before the effective date of termination:
(A) The zone sponsor may not accept any such
application after June 29, 2032;
(B) The application must be fully approved no
later than June 30, 2032, in full compliance with provisions under ORS
285C.140 or
285C.403, including but not
limited to any agreement under ORS
285C.160:
(i) Even if the zone had terminated
previously; and
(ii) Pursuant to a
preauthorization conference under ORS
285C.140(4) and
(5) that is summarily dispensed with, as
necessary;
(C) Approval
in paragraph (B) of this subsection is then covered by section (3) of this
rule; and
(D) If an application is
not approved in accordance with this subsection, then the business firm is not
authorized or certified, and the sponsor or county assessor shall have
effectively failed or refused to authorize or certify the firm under ORS
285C.140(9) or
285C.403(7)
unless doing so was infeasible.
(8) Notwithstanding ORS
285C.115(2)(b),
a business firm that has the site of its exempt property or proposed investment
in an enterprise removed by a boundary change (whether inadvertently or not)
has the same rights and privileges in sections (2) to (6) of this rule based on
the effective date of the boundary change, as if the zone had
terminated.
Statutory/Other Authority: ORS
285A.075 &
285C.060(1)
Statutes/Other Implemented: ORS
285C.140,
285C.170,
285C.175,
285C.245,
285C.255,
285C.403,
285C.408 &
285C.409
