Or. Admin. Code § 123-674-1200

Current through Register Vol. 63, No. 10, October 1, 2024

Section 123-674-1200 - Ineligible Activities

For purposes of ORS 285C.135(2), (3) and (5):

(1) The following activities are ineligible, and property used in any such activity may not qualify for an enterprise zone exemption, regardless that it serves other businesses:

(a) Retail sales of goods or services;

(b) Retail food service or serving of meals;

(c) Tourism attractions or similar services;

(d) Entertainment or recreation provided directly to the patron or user;

(e) Childcare or similar services;

(f) Provision of health care, medical services or similar services to patients;

(g) Professional services, such as accounting, communications, design, engineering, legal advice or management;

(h) Actuary, appraisal, banking, brokerage, extension of credit, insurance, investment, money lending or similar financial services;

(i) Leasing or management of real estate;

(j) Provision of residential housing for purchase or lease;

(k) Construction or modification of real property;

(l) Installation of fixtures, machinery or equipment;

(m) Leasing or contracting out employees to work even in eligible activities for another business;

(n) Recreational vehicle parks

(o) Renting of storage units or space;

(p) Fulfillment center; or

(q) Similar types of business operations.

(2) A business firm is eligible, regardless of the presence within the enterprise zone of one or more activities listed in section (1) of this rule, if they are:

(a) Separate consistent with OAR 123-674-1000(5) and OAR 123-674-1300; or

(b) Insignificant in accordance with 123-674-1400.

(3) Activities described in or comparable to subsections (1)(b) through (j) of this rule, as well as associated employees and property, are eligible if performed by the business firm:

(a) Within the same enterprise zone; and

(b) To directly support, benefit or provide amenities to eligible operations or associated personnel located mostly inside the zone. If, however, more than 25 percent of the activity supports or benefits the firm's operations outside the zone in terms of person-time or costs, then the requirements of OAR 123-674-1700 for headquarters-type facilities must be fulfilled.

(4) Notwithstanding OAR 123-674-1100, an activity is eligible in the following cases:

(a) Subsection (1)(a) to (h) and (p) of this rule or similar activities with electronic commerce operations located in an area designated as such, in accordance with OAR 123-662.

(b) Subsection (1)(a) to (f), (n) or (o) of this rule or similar activities with a hotel, motel or destination resort if:

(A) Such businesses are eligible in that (part of the) enterprise zone as established with the Department's determination in OAR 123-650-4900 (or previously in a Director's Order) consistent with the zone sponsor's election or restriction(s) as described in OAR 123-650-4800(2)(e);

(B) The activity is at the same location and owned and operated in common with the hotel, motel or destination resort; and

(C) Fifty percent or more of the activity's receipts are derived from guests staying overnight there.

(c) Subsection (1)(a), (d) and (f) to (h) of this rule or similar activities with operations described in OAR 123-674-1600 (Call Centers).

(d) Subsection (1)(g) to (i) of this rule or similar activities with a facility described in OAR 123-674-1700 (Headquarter Facilities).

Or. Admin. Code § 123-674-1200

OBDD 27-2010, f. & cert. ef. 6-14-10; OBDD 14-2016, f. & cert. ef. 9/16/2016; OBDD 8-2020, amend filed 08/12/2020, effective 8/12/2020; OBDD 12-2023, amend filed 07/05/2023, effective 7/5/2023; OBDD 14-2024, amend filed 06/10/2024, effective 6/10/2024

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

Statutes/Other Implemented: ORS 285C.135 & 285C.185