Or. Admin. R. 123-690-5000

Current through Register Vol. 63, No. 9, September 1, 2024

Section 123-690-5000 - ONGOING COMPLIANCE - Employment and Payroll

(1) The exemption of a facility under ORS 285C409(1) is disqualified under ORS 285C.420, consistent with OAR 150-285-3410, if:

(a) The facility fails to initially satisfy any of the requirements applicable to it under ORS 285C.412, for which the certified business firm shall also notify the assessor under ORS 285C.415 of any such failure consistent with OAR 123-690-5200(1)(c);

(b) After initial satisfaction of the minimum hiring requirement for total employment at the Facility Site in OAR 123-690-4200, applicable employment falls to less than the minimum (on average at least) in any assessment year during the remaining exemption period; or

(c) After initial satisfaction of the minimum average annual compensation requirement for all facility employees according to OAR 123-690-4600, in any assessment year during the remaining exemption period:

(A) Such average annual compensation is less than the minimum; or

(B) The facility's average wage is less than 100 percent of the then Current County Wage, but only if the first year of the 7 to 15-year exemption under ORS 285C.409(1)(c) begins in or after 2018 (regardless of when the business firm applied or was certified).

(2) Disqualification as described in section (1) of this rule entails imposition of all property taxes that were otherwise due on the formerly exempt facility in all years. This includes but is not limited to any exemption received under ORS 285C.409(1)(a) or (b) while the facility was being constructed, which is also subject to disqualification if facility operations do not effectively commence as described in OAR 150-285-3420.

(3) The mandatory minimum level for average annual compensation of employees at the Facility Site remains fixed at the level established when the requirement is initially met, based on the multiple in OAR 123-690-4600(4) relative to the Current County Wage at that time. As such, the applicable county wage is set for purposes of paragraph (1)(c)(A) of this rule for the remainder of the exemption period.

(4) For purposes of ORS 285C.412(1)(c)(B) and of paragraph (1)(c)(B) of this rule:

(a) "Average wage" means total, annualized taxable income of all facility employee, as used in calculating amounts withheld under ORS chapter 316 for purposes of Oregon personal income taxes during the calendar year, and computed in the same way as average annual compensation in OAR 123-690-4600(1)(b), (2) and (3), and

(b) The applicable Current County Wage updates each year in contrast to section (3) of this rule.

(5) For separate exemptions at two or more separate Facility Sites of the same certified business firm in the same enterprise zone, the zone sponsor may allow employees, who work at and regularly move between sites, to be counted proportionally among the sites according to an explicated method for purposes of satisfying the respective requirements of each exemption.

(6) Notwithstanding subsection (1)(b) or (c) of this rule, the applicable employment or average annual compensation/wages of employees at the Facility Site may fall below the mandatory minimum level under certain extenuating circumstances, including but not limited to the following:

(a) A natural disaster, conflagration, epidemic or the like substantially disrupting the relevant operations of the certified business firm;

(b) Six or more months of severe economic troubles or military conflict significantly affecting the United States and other major foreign economies or the certified business firm's industry;

(c) Unforeseen coincidence of vacant positions at the Facility Site, such as the case in which employees die, quit or have been fired for cause; or

(d) Temporary curtailment in operations at the Facility Site lasting no longer than twelve months to undertake major repairs in response to mechanical breakdowns that are unusual and unexpected within normal engineering parameters and maintenance program for exempt facility property.

Or. Admin. R. 123-690-5000

OBDD 29-2010, f. & cert. ef. 6-14-10; OBDD 11-2015, f. & cert. ef. 10/5/2015; OBDD 12-2016, f. & cert. ef. 9/16/2016; OBDD 5-2017, amend filed 11/29/2017, effective 11/29/2017; OBDD 6-2020, amend filed 08/12/2020, effective 8/12/2020; OBDD 10-2023, amend filed 07/05/2023, effective 7/5/2023

Statutory/Other Authority: ORS 285A.075

Statutes/Other Implemented: ORS 285C.412, 285C.415 & 285C.420