1. (1) Loss of exemption under ORS 285C.175 applies to all qualified property of a business firm that is exempt in the year when an event occurs, for which notice is due under ORS 285C.240(b), (c) or (d), including but not limited to:

   1. (a) Substantial curtailment, consistent with OAR 123-674-4600;
   2. (b) Failure to satisfy an applicable local additional requirement, according to OAR 123-668-2000 to 123-668-2500, and pursuant to written notification to the assessor from the zone sponsor in the absence of notice by the firm under ORS 285C.240(1)(d);
   3. (c) Noncompliance with any general law in accordance with OAR 123-674-7200 to 123-674-7250;
   4. (d) Not meeting applicable criteria in OAR 123-674-4300 for purposes of a zone sponsor’s waiver;
   5. (e) What is described in OAR 123-674-0500(2) for the requirements specific to an extended abatement;
   6. (f) Failure to satisfy requirements included in a written agreement establishing flexible hiring timelines according to OAR 123-674-0400 and consistent with ORS 285C.200(2); or
   7. (g) Failure to satisfy requirements included in a written agreement establishing alternative performance criteria according to OAR 123-674-0300 and consistent with ORS 285C.200(2).

2. (2) If an event occurs relative to section (1) of this rule, then the qualified business firm shall notify both the local zone manager and the county assessor in writing at the latest by July 1 of the following year, which may also be done:

   1. (a) Through timely filing of the exemption claim in OAR 123-674-6200 that discloses the event.
   2. (b) By the owner of any qualified property that the qualified business firm leases.

3. (3) Notice as described in section (2) of this rule shall result in either:

   1. (a) The firm reimbursing the enterprise zone sponsor for an amount equal to all associated property taxes abated in that exemption year, as described in OAR 123-674-6600 to 123-674-6630; or
   2. (b) The county assessor’s disqualifying the firm under ORS 285C.240, including loss of future years of the exemption and retroactive payment of applicable back taxes with the next tax bill.
4. (4) If the assessor or zone sponsor discovers a failure, for which there was not timely notice as described in section (2) of this rule, then subsection (3)(a) of this rule is inapplicable, and disqualification as described in subsection (3)(b) of this rule shall include the 20-percent penalty or surcharge on back taxes.
5. (5) Disqualification for purposes of this rule does not affect property covered by any other Application, for which the particular requirements are still satisfied, consistent with OAR 123-674-3500, except under ORS 285C.245(7) for another Application made after the zone terminated as described in OAR 123-650-9600, in which case the other such Application is nullified, and associated property, also disqualified.

Statutory/Other Authority

ORS 285A.075 & 285C.060(1)

Statutes/Other Implemented

ORS 285C.200, 285C.220, 285C.225, 285C.230, 285C.235 & 285C.240

History

OBDD 10-2026, temporary amend filed 06/05/2026, effective 06/05/2026 through 12/01/2026
OBDD 42-2024, minor correction filed 10/17/2024, effective 10/17/2024
OBDD 14-2024, amend filed 06/10/2024, effective 06/10/2024
OBDD 8-2020, amend filed 08/12/2020, effective 08/12/2020
OBDD 14-2016, f. & cert. ef. 9-16-16
OBDD 27-2010, f. & cert. ef. 6-14-10