Oregon Administrative Rules
Chapter 123 - OREGON BUSINESS DEVELOPMENT DEPARTMENT
Division 674 - STANDARD EXEMPTION ON TAXABLE ENTERPRISE ZONE PROPERTY
Section 123-674-6880 - Deferral during Recession

Universal Citation: OR Admin Rules 123-674-6880

Current through Register Vol. 63, No. 9, September 1, 2024

For purposes of ORS 285C.203 to defer the standard enterprise zone exemption, during which time the exemption is suspended and an authorized or qualified business firm pays taxes on qualified property:

(1) The firm may avoid denial or disqualification for substantial curtailment or other noncompliance (see OAR 123-674-4100, 123-674-4600, 123-674-6100 and 123-674-6400).

(2) The total cost of the investment, consistent with OAR 123-674-4300(5)(a) and (b), must equal or exceed the applicable amount under ORS 285C.203(1)(a)(B).

(3) If electing to do so, the zone sponsor needs to take preliminary action to grant the deferral, such as a formal notification from the local zone manager to the firm, that pending the resolution(s) in section (5) of this rule, declares:

(a) Whether the exemption would be suspended for one year or two consecutive years; and

(b) The minimum level of employment of the firm, which may even be less than Existing Employment (but must be more than zero), that is to be maintained during:
(A) The suspension period; and

(B) The exemption period remaining post-suspension, if allowed as such by the sponsor.

(4) Notice in section (3) of this rule may occur only at such a time when, as determined by the Department using the most recent data from Current Employment Estimates (CES) and Local Area Unemployment Statistics (LAUS), over at least two successive calendar quarters during the prior 12 months:

(a) Seasonally adjusted state employment shrank; and

(b) The unemployment rate of the county containing the property was two percentage points greater than the state's rate, as averaged for the quarter.

(5) No later than 60 days after notification in section (3) of this rule or August 31 of the first year of suspension, whichever is earlier, the zone sponsor shall adopt resolution(s) confirming the action and declarations in section (3) of this rule.

(6) In each year of the suspension period, the firm shall file an exemption claim under ORS 285C.220, and might even meet normal requirements, but regardless, the county assessor shall in effect deny the exemption under ORS 285C.175 (without necessarily giving notice) and all qualified property covered by the authorization is subject to normal taxation for that year.

(7) At the conclusion of the suspension period, the firm shall reclaim and resume the remainder of exemption under ORS 285C.175 on any qualified property, but the firm and property are subject to disqualification under ORS 285C.240, including but not limited to repayment of property taxes from any year of exemption before the suspension period, if:

(a) The sponsor amends or repeals its resolution in section (5) of this rule to revoke the suspension before July 1 following the suspension period;

(b) During the suspension period, or before April 1 of the first year of the resumed exemption period, employment of the firm does not meet the minimum level set by the resolution, or as otherwise required under ORS 285C.200(1)(c); or

(c) The firm fails to maintain the minimum level set by the resolution if so allowed; its operations are otherwise subject (again) to substantial curtailment under ORS 285C.210, or it fails to meet any other applicable requirement to remain qualified.

(8) In the case of an exemption already approved and received, the one-year payment in lieu of disqualification under ORS 285C.240(6) may occur with respect to a year before or after the suspension period as described in this rule (see OAR 123-674-6600 to 123-674-6630).

(9) The year(s) of noncompliance and of suspension shall correspond, but their exact relationship is subject to the determination of the local zone sponsor in consultation with the county assessor, preferably in preparing the resolution.

(10) The sponsor may:

(a) Modify the resolution on or before the next August 31 to retract or insert the second consecutive year of suspension.

(b) Grant two one-year suspensions, if separately done in complete conformance with sections (3) and (5) of this rule.

(11) The local zone manager shall forward to the county assessor by August 31 of the tax year a copy of any resolution granting the suspension of exemption or of any amendment or revocation of such a resolution.

Statutory/Other Authority: ORS 285A.075 & 285C.060(1)

Statutes/Other Implemented: ORS 285C.203

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