Or. Admin. Code § 123-674-6880 - Deferral during Recession
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.
Notes
Statutory/Other Authority: ORS 285A.075 & 285C.060(1)
Statutes/Other Implemented: ORS 285C.203
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