Or. Admin. R. 123-690-5000 - ONGOING COMPLIANCE - Employment and Payroll
(1) The exemption of a facility under ORS
285C409(1) is disqualified under ORS
285C.420,
consistent with OAR 150-285-3410, if:
(a) The
facility fails to initially satisfy each of the requirements applicable to it
under ORS
285C.412,
for which the certified business firm shall also notify the assessor under ORS
285C.415
of any such failure consistent with OAR 123-690-5200(1)(c);
(b) After initial satisfaction of the minimum
hiring requirement for total employment at the Facility Site in OAR
123-690-4200, applicable employment falls to less than the minimum (on average
at least) in any assessment year throughout the remaining exemption period;
or
(c) After initial satisfaction
of the minimum average annual compensation requirement for all facility
employees according to OAR 123-690-4600, in any assessment year throughout the
remaining exemption period:
(A) Such average
annual compensation is less than the minimum; or
(B) The facility's average wage is less than
100 percent of the then Current County Wage, but only if the first year of the
7 to 15-year exemption under ORS
285C.409(1)(c)
begins in or after 2018 (regardless of when the business firm applied or was
certified).
(2) Disqualification as described in section
(1) of this rule entails imposition of all property taxes that were otherwise
due on the formerly exempt facility in all years. This includes but is not
limited to any exemption received under ORS
285C.409(1)(a)
or (b) while the facility was being
constructed, which is also subject to disqualification if facility operations
do not effectively commence as established in OAR 150-285-3420.
(3) The mandatory minimum level for average
annual compensation of employees at the Facility Site remains fixed at the
level established when the requirement is initially met, based on the multiple
in OAR 123-690-4600(4) relative to the Current County Wage at that time. As
such, the applicable county wage is set for purposes of paragraph (1)(c)(A) of
this rule for the remainder of the exemption period.
(4) For purposes of ORS
285C.412(1)(c)(B)
and paragraph (1)(c)(B) this rule:
(a)
"Average wage" means total, annualized taxable income of all facility employee,
as used in calculating amounts withheld under ORS chapter 316 for purposes of
Oregon personal income taxes during the calendar year, and computed in the same
way as average annual compensation in OAR 123-690-4600(1)(b), (2) and (3),
and
(b) The applicable Current
County Wage updates each year in contrast to section (3) of this
rule.
(5) For separate
exemptions at two or more separate Facility Sites of the same certified
business firm in the same enterprise zone, the zone sponsor may allow that
employees, who work at and regularly move between sites, to be counted
proportionally among the sites according to an explicated method for purposes
of satisfying the respective requirements of each exemption.
(6) Notwithstanding subsection (1)(b) or (c)
of this rule, the applicable employment or average annual compensation/wages of
employees at the Facility Site may fall below the mandatory minimum level under
certain extenuating circumstances, including but not limited to the following:
(a) A natural disaster, conflagration,
epidemic or the like substantially disrupting the relevant operations of the
certified business firm;
(b) Six or
more months of severe economic troubles or military conflict significantly
affecting the United States and other major foreign economies or the certified
business firm's industry;
(c)
Unforeseen coincidence of vacant positions at the Facility Site, such as the
case in which employees die, quit or have been fired for cause; or
(d) Temporary curtailment in operations at
the Facility Site lasting no longer than twelve months to undertake major
repairs in response to mechanical breakdowns that are unusual and unexpected
within normal engineering parameters and maintenance program for exempt
facility property.
Notes
Statutory/Other Authority: ORS 285A.075
Statutes/Other Implemented: ORS 285C.412, 285C.415 & 285C.420
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