Or. Admin. Code § 123-674-6300 - Disqualification of Particular Property

A qualified business firm does not lose its ongoing enterprise zone exemption under ORS 285C.175 on all qualified property if only certain property fails to satisfy a relevant requirement:

(1) Disqualification (including back taxes) shall ensue under ORS 285C.240 only on such property, and the one-year payback of tax savings under ORS 285C.240(6) does not apply

(2) Such disqualification pertains when the exempt property no longer satisfies a relevant criterion under ORS 285C.175, 285C.180, 285C.185 or 285C.190, including but not limited to property during an exemption year that is:

(a) Removed from the enterprise zone;

(b) Sold, exchanged or leased to another business firm, except as described in OAR 123-674-4800;

(c) Used ineligibly or by an ineligible business firm in violation of OAR 123-674-5100; or

(d) Not actually in use or occupancy (notwithstanding its being in service) for at least 180 consecutive days concluding in the preceding exemption year.

(3) In order for the qualified business firm to avoid the 20-percent penalty on the back taxes associated with such property-specific disqualification, notice under ORS 285C.240(1)(a), (e) or (f) is due by July 1 after the year in which failure occurred. The owner of leased, exempt property may give such notice, and the firm may do so through a timely exemption claim as described in OAR 123-674-6200.

Notes

Or. Admin. Code § 123-674-6300

OBDD 27-2010, f. & cert. ef. 6-14-10; OBDD 41-2024, minor correction filed 10/17/2024, effective 10/17/2024

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

Statutes/Other Implemented: ORS 285C.175, 285C.220, 285C.225, 285C.230, 285C.235 & 285C.240