Or. Admin. Code § 123-650-9600

Current through Register Vol. 63, No. 11, November 1, 2024

Section 123-650-9600 - Later Approval and Tax Abatement in a Terminated Zone

Under ORS 285C.245(6) or (8) after termination of an enterprise zone regardless of the reason in OAR 123-650-9100(1):

(1) For a business to receive exemption pursuant to section (2) of this rule inside the former zone's boundary:

(a) On the effective date of termination:

(A) In the case of SEZ as described in OAR 123-650-9500(1)(a), the firm must be:

(i) Qualified as described in OAR 123-650-9500(2)(a); or

(ii) Authorized consistent with OAR 123-650-9500(3)(a)(A).

(B) In the case of LRZ as described in OAR 123-650-9500(1)(b), the firm must be certified, regardless of already receiving an exemption on the facility.

(b) If a business firm is only authorized or certified but not qualified or receiving an exemption on the effective date of termination, then no further application for authorization or certification is allowed until provisions of OAR 123-650-9500(3)(a)(B) and (C) or (b), respectively, are fulfilled.

(2) Exclusive to the exemption program in subsection (1)(a)(A) or (B) of this rule, property owned or leased by a business firm is exempt under either ORS 285C.175 or 285C.409(1) in the same enterprise zone, only if:

(a) Not more than 10 years from the effective date of the zone's termination, the firm submits a complete application for authorization or for certification under ORS 285C.140 or 285C.403, respectively;

(b) The property will be located entirely within the boundaries of the terminated zone, as they existed at the time of termination, and not inside any currently designated enterprise zone;

(c) Following all pertinent steps and in satisfaction of applicable provisions, the application is:

(A)

(i) Approved by the local zone manager, or absent an appointed zone manager, by a suitable representative or formal action of the zone sponsor, or by the Department; and

(ii) Approved by the county assessor; or

(B) Allowed on magisterial or judicial appeal.

(d) New construction, reconstruction, modifications or installations of property pursuant to the application commence no later than June 30 following the last year of the firm's final outstanding exemption in the zone-that is, before the end of the very last tax year in which SEZ qualified property or an LRZ facility, respectively, is still exempt;

(e) Proposed investments pursuant to the application are completed consistent with OAR 123-650-9700;

(f) Timely filings and other applicable procedures are properly undertaken with the county assessor;

(g) The authorized or certified business firm and all of its property have not been disqualified in the terminated zone under ORS 285C.245(7) or (9); and

(h) The firm complies with any applicable local policy or requirement according to OAR 123-668, as well as ORS 285C.050 to 285C.250 or 285C.400 to 285C.420, consistent with OAR 123-674 or 123-690.

(3) For purposes of exemption under ORS 285C.175 (SEZ) pursuant to section (2) of this rule:

(a) Exemption under ORS 285C.170 is not allowed.

(b) Before final action in paragraph (2)(c)(A) of this rule, the sponsor of the terminated zone may adopt resolution(s) for a waiver under ORS 285C.155 or enter into an agreement with an eligible business firm for an extended abatement under ORS 285C.160.

(c) Disqualification under ORS 285C.245(7) means that described in OAR 123-674-6400 and does not include:

(A) Loss of an extended abatement under ORS 285C.240(3)(b) in OAR 123-674-0500(2);

(B) Payment to the zone sponsor of the equivalent of one year's tax savings under ORS 285C.240(6) according to OAR 123-674-6600 to 123-674-6630; or

(C) Failure to meet a requirement pertaining to some but not all property consistent with OAR 123-674-6300.

(4) An approved business firm may not apply for authorization or certification as described in section (2) this rule, if since termination, another business or corporation has bought or absorbed the firm, such that the firm neither remains essentially intact, even as a subsidiary of the purchasing company, nor continues to operate substantially as it had prior to its being acquired.

Or. Admin. Code § 123-650-9600

OBDD 14-2024, adopt filed 06/10/2024, effective 6/10/2024

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

Statutes/Other Implemented: ORS 285C.140, 285C.175, 285C.245, 285C.255, 285C.403 & 285C.409