Or. Admin. Code § 123-674-1400

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

Section 123-674-1400 - Gross Receipts Test

(1) A gross receipts test shall determine the eligibility of a business firm or business operation that partially involves an ineligible activity only when:

(a) There are Applicable Gross Receipts;

(b) The firm is not eligible as described in OAR 123-674-1200(4); and

(c) For lack of definitive or physical separation, the ineligible activity cannot be effectively isolated from eligible activities for purposes of OAR 123-674-1300.

(2) The Firm/applicant or operation passes the gross receipts test and is otherwise eligible for authorization and qualification in the enterprise zone, if the ratio of Applicable Gross Receipts to Ineligible Receipts equals or exceeds 4.0.

(3) For purposes of this rule, the local zone manager shall see as part of the Preauthorization Conference that the authorization includes:

(a) An explanation of the eligibility of the firm or operation consistent with this rule; and

(b) Arrangements to substantiate this for the firm's future qualification, as appropriate.

(4) "Applicable Gross Receipts" as used in this rule are based on:

(a) Sales revenue derived directly from a party external to the firm in exchange for goods, products, commodities, merchandise, work or services;

(b) Operations located entirely inside the enterprise zone;

(c) All activities of the firm within the enterprise zone;

(d) An annual total for the most recent fiscal year or calendar year; and

(e) The commercial state of affairs, as realized when the firm is qualified for the property tax exemption being sought, which is estimated for purposes of the Application or Preauthorization Conference.

(5) "Ineligible Receipts" as used in this rule are that subset of the same Applicable Gross Receipts that arise from an ineligible activity described in OAR 123-674-1200(1), including but not limited to receipts that entail:

(a) Consumption by an end-user among the public;

(b) Sales directly to a household or individual that is neither another business firm nor operating as such; or

(c) No subsequent resale of the applicable goods or products by the firm's customer.

Or. Admin. Code § 123-674-1400

OBDD 27-2010, f. & cert. ef. 6-14-10

Stat. Auth.: ORS 285A.075 & 285C.060(1)

Stats. Implemented: ORS 285C.135 & 285C.140