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Oregon Revised Statutes

Or. Rev. Stat. § 285C.175 (2026)

Enterprise zone exemption; requirements; duration

✓ current as of May 2026
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      285C.175 Enterprise zone exemption; requirements; duration. (1) Property of an authorized business firm is exempt from ad valorem property taxation if:

      (a) The property is qualified property under ORS 285C.180;

      (b) The firm meets the qualifications under ORS 285C.200; and

      (c) The firm has entered into a first-source hiring agreement under ORS 285C.215.

      (2)(a) Except as otherwise provided in ORS 285C.203:

      (A) The exemption allowed under this section applies to the first tax year for which, as of January 1 preceding the tax year, the qualified property is in service. The exemption shall continue for the next two succeeding tax years if the property continues to be owned or leased by the business firm and located in the enterprise zone.

      (B) The property may be exempt from property taxation under this section for up to two additional tax years consecutively following the tax years described in subparagraph (A) of this paragraph, if authorized by the written agreement entered into by the firm and the sponsor under ORS 285C.160.

      (b) If qualified property of a qualified business firm is sold or leased to an eligible business firm in the enterprise zone during the period the property is exempt under this section, the purchasing or leasing firm is eligible to continue the exemption of the selling or leasing firm for the balance of the exemption period, but only if any effects on employment within the zone that result from the sale or lease do not constitute substantial curtailment under ORS 285C.210.

      (3)(a) The exemption allowed under this section shall be 100 percent of the assessed value of the qualified property in each of the tax years for which the exemption is available.

      (b) Notwithstanding paragraph (a) of this subsection:

      (A) If the qualified property is an addition to or modification of an existing building or structure, the exemption shall be measured by the increase in value, if any, attributable to the addition or modification.

      (B) If the qualified property is an item of reconditioned, refurbished, retrofitted or upgraded real property machinery or equipment, the exemption shall be measured by the increase in the value of the item that is attributable to the reconditioning, refurbishment, retrofitting or upgrade.

      (4)(a) An exemption may not be granted under this section for qualified property assessed for property tax purposes in the county in which the property is located on or before the date on which:

      (A) Designation of the zone takes effect under ORS 285C.074; or

      (B) A boundary change for the zone takes effect under ORS 285C.117 if the property is located in an area added to the zone.

      (b) An exemption may not be granted for qualified property constructed, added, modified or installed in the zone or in the process of construction, addition, modification or installation in the zone on or before the date on which:

      (A) Designation of the zone takes effect under ORS 285C.074; or

      (B) A boundary change for the zone takes effect under ORS 285C.117 if the property is located in an area added to the zone.

      (c) An exemption may not be granted for any qualified property that was in service within the zone for more than 12 months by January 1 of the first assessment year for which an exemption claim is made, or 24 months, in the case of a late claim under ORS 285C.220 (9).

      (d) An exemption may not be granted for any qualified property unless the property is actually in use or occupancy before July 1 of the year immediately following the year during which the property was first placed in service.

      (e) Except as provided in ORS 285C.245, an exemption may not be granted for qualified property constructed, added, modified or installed after termination of an enterprise zone.

      (5) Property is not required to have been exempt under ORS 285C.170 in order to be exempt under this section.

      (6) The county assessor shall notify the business firm in writing whenever property is denied an exemption under this section. The denial of exemption may be appealed to the Oregon Tax Court under ORS 305.404 to 305.560.

      (7) For each tax year that the property is exempt from taxation, the assessor shall:

      (a) Enter on the assessment roll, as a notation, the assessed value of the property as if it were not exempt under this section.

      (b) Enter on the assessment roll, as a notation, the amount of additional taxes that would be due if the property were not exempt.

      (c) Indicate on the assessment roll that the property is exempt and is subject to potential additional taxes as provided in ORS 285C.240, by adding the notation “enterprise zone exemption (potential additional tax).” [Formerly 285B.698; 2015 c.648 §21; 2017 c.83 §3]

 

(Qualified Property)

Notes of Decisions
Cited in 15 cases (4 in the last 5 years), 2010–2026 · leading case: United Streetcar, LLC v. Dept. of Rev., 23 Or. Tax 418 (Or. T.C. 2019).
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United Streetcar, LLC v. Dept. of Rev., 23 Or. Tax 418 (Or. T.C. 2019). · cites it 13× “For example, ORS 285C.175 pro- vides that, when the assessor approves a claim, the enter- prise zone exemption period begins with the first tax year after the assessment year in which the qualified property is in service6 and continues for the prescribed number of 4 “Assessment…”
Seneca Sustainable Energy, LLC v. Dep't of Revenue, 429 P.3d 360 (Or. 2018). · cites it 6× “ORS 285C.175(2). The fact that Seneca's property tax bill was reduced temporarily by operation of the enterprise zone exemption does not alter the conclusion that Seneca was a taxpayer for purposes of the tax laws of this state.”
Seneca Sustainable Energy v. Lane Cnty. Assessor, 21 Or. Tax 366 (Or. T.C. 2014). · cites it 3× “Lane County Assessor taxes calculated under ORS 285C.175 shall be assessed against the property for each year for which the prop- erty had been granted exemption under ORS 285C.”
Seneca Sustainable Energy, LLC II v. Dept. of Rev., 22 Or. Tax 263 (Or. T.C. 2016). “The property at issue was noted on the assessment roll for the 2012-13 tax year as required under ORS 285C.175(7)(a).1 That notation requires a determina- tion, in accordance with Article XI, section 11, of the Oregon Constitution (Measure 50), of the assessed value (AV) of the…”
Seneca Sustainable Energy LLC III v. Dept. of Rev., 23 Or. Tax 22 (Or. T.C. 2018). “2 In accordance with ORS 285C.175(7)(a), the assessed value (AV) of the property was placed on the roll for each tax year as a notation as if it were not exempt.”
Beaver Ventures LLC v. Washington Cnty. Assessor (Or. T.C. 2026). · cites it 7× “220[,] * * * [t]he assessor may deny the exemption under ORS 285C.175 for the current tax year * * *.”
Edgeconnex, Inc. v. Washington Cnty. Assessor (Or. T.C. 2022). · cites it 6× “225 in turn provides that, “[f]or the first tax year for which qualified property is exempt under ORS 285C.175, the claim filed under ORS 285C.”
Fidler v. Deschutes Cnty. Assessor (Or. T.C. 2025). · cites it 6× “” The enterprise zone exemption is authorized by ORS 285C.175 for qualified properties of qualifying business firms.”
Hynix Semiconductor v. Lane Cnty. Assessor, Tc-Md 091320b (or.tax 5-12-2011) (Or. T.C. 2011). · cites it 10× “one exemption, stating in part: "(1) The county assessor of any county in which an enterprise zone is situated or the sponsor shall be notified in writing by the qualified business firm * * * not later than July 1 following the assessment year for which the exemption is claimed…”
Hynix Semicond. Mfg. v. Lane Cnty. Assr., Tc-Md 091320b (or.tax 5-5-2011) (Or. T.C. 2011). · cites it 10× “one exemption, stating in part: "(1) The county assessor of any county in which an enterprise zone is situated or the sponsor shall be notified in writing by the qualified business firm * * * not later than July 1 following the assessment year for which the exemption is claimed…”
Georgia-Pac. Cons. v. Clatsop Cty. Assr., Tc 4894 (or.tax 7-21-2010) (Or. T.C. 2010). · cites it 9× “Taxpayer asserts that, assuming the revocation of exempt status was proper, the additional tax computed pursuant to ORS 285C.175 and assessed under ORS285C.240 was improperly computed.”
Murray v. Wasco Cnty. Assessor (Or. T.C. 2018). · cites it 4× “If the property is disqualified, the assessor must assess “100 percent of the additional taxes calculated under ORS 285C.175 against the property for each year for which the property had been granted exemption under ORS 285C.”
Show all 15 citing cases →
— Or. Rev. Stat. § 285C.175(1) — 2 cases
United Streetcar, LLC v. Dept. of Rev., 23 Or. Tax 418 (Or. T.C. 2019). “For example, ORS 285C.175 pro- vides that, when the assessor approves a claim, the enter- prise zone exemption period begins with the first tax year after the assessment year in which the qualified property is in service6 and continues for the prescribed number of 4 “Assessment…”
Beaver Ventures LLC v. Washington Cnty. Assessor (Or. T.C. 2026). “220[,] * * * [t]he assessor may deny the exemption under ORS 285C.175 for the current tax year * * *.”
— Or. Rev. Stat. § 285C.175(1)(a) — 1 case
Edgeconnex, Inc. v. Washington Cnty. Assessor (Or. T.C. 2022). “225 in turn provides that, “[f]or the first tax year for which qualified property is exempt under ORS 285C.175, the claim filed under ORS 285C.”
— Or. Rev. Stat. § 285C.175(2) — 1 case
Seneca Sustainable Energy, LLC v. Dep't of Revenue, 429 P.3d 360 (Or. 2018). “ORS 285C.175(2). The fact that Seneca's property tax bill was reduced temporarily by operation of the enterprise zone exemption does not alter the conclusion that Seneca was a taxpayer for purposes of the tax laws of this state.”
— Or. Rev. Stat. § 285C.175(2)(a) — 1 case
United Streetcar, LLC v. Dept. of Rev., 23 Or. Tax 418 (Or. T.C. 2019). “For example, ORS 285C.175 pro- vides that, when the assessor approves a claim, the enter- prise zone exemption period begins with the first tax year after the assessment year in which the qualified property is in service6 and continues for the prescribed number of 4 “Assessment…”
— Or. Rev. Stat. § 285C.175(3) — 1 case
Georgia-Pac. Cons. v. Clatsop Cty. Assr., Tc 4894 (or.tax 7-21-2010) (Or. T.C. 2010). “Taxpayer asserts that, assuming the revocation of exempt status was proper, the additional tax computed pursuant to ORS 285C.175 and assessed under ORS285C.240 was improperly computed.”
— Or. Rev. Stat. § 285C.175(3)(a) — 2 cases
United Streetcar, LLC v. Dept. of Rev., 23 Or. Tax 418 (Or. T.C. 2019). “For example, ORS 285C.175 pro- vides that, when the assessor approves a claim, the enter- prise zone exemption period begins with the first tax year after the assessment year in which the qualified property is in service6 and continues for the prescribed number of 4 “Assessment…”
Murray v. Wasco Cnty. Assessor (Or. T.C. 2018). “If the property is disqualified, the assessor must assess “100 percent of the additional taxes calculated under ORS 285C.175 against the property for each year for which the property had been granted exemption under ORS 285C.”
— Or. Rev. Stat. § 285C.175(4)(d) — 1 case
United Streetcar, LLC v. Dept. of Rev., 23 Or. Tax 418 (Or. T.C. 2019). “For example, ORS 285C.175 pro- vides that, when the assessor approves a claim, the enter- prise zone exemption period begins with the first tax year after the assessment year in which the qualified property is in service6 and continues for the prescribed number of 4 “Assessment…”
— Or. Rev. Stat. § 285C.175(5) — 1 case
United Streetcar, LLC v. Dept. of Rev., 23 Or. Tax 418 (Or. T.C. 2019). “For example, ORS 285C.175 pro- vides that, when the assessor approves a claim, the enter- prise zone exemption period begins with the first tax year after the assessment year in which the qualified property is in service6 and continues for the prescribed number of 4 “Assessment…”
— Or. Rev. Stat. § 285C.175(6) — 4 cases
Fidler v. Deschutes Cnty. Assessor (Or. T.C. 2025). “” The enterprise zone exemption is authorized by ORS 285C.175 for qualified properties of qualifying business firms.”
Edgeconnex, Inc. v. Washington Cnty. Assessor (Or. T.C. 2022). “225 in turn provides that, “[f]or the first tax year for which qualified property is exempt under ORS 285C.175, the claim filed under ORS 285C.”
Beaver Ventures LLC v. Washington Cnty. Assessor (Or. T.C. 2026). “220[,] * * * [t]he assessor may deny the exemption under ORS 285C.175 for the current tax year * * *.”
Bay Area Hosp. v. Oregon Health Auth., 23 Or. Tax 368 (Or. T.C. 2019).
— Or. Rev. Stat. § 285C.175(7) — 5 cases
Seneca Sustainable Energy, LLC v. Dep't of Revenue, 429 P.3d 360 (Or. 2018). “ORS 285C.175(2). The fact that Seneca's property tax bill was reduced temporarily by operation of the enterprise zone exemption does not alter the conclusion that Seneca was a taxpayer for purposes of the tax laws of this state.”
United Streetcar, LLC v. Dept. of Rev., 23 Or. Tax 418 (Or. T.C. 2019). “For example, ORS 285C.175 pro- vides that, when the assessor approves a claim, the enter- prise zone exemption period begins with the first tax year after the assessment year in which the qualified property is in service6 and continues for the prescribed number of 4 “Assessment…”
Seneca Sustainable Energy v. Lane Cnty. Assessor, 21 Or. Tax 366 (Or. T.C. 2014). “Lane County Assessor taxes calculated under ORS 285C.175 shall be assessed against the property for each year for which the prop- erty had been granted exemption under ORS 285C.”
Georgia-Pac. Cons. v. Clatsop Cty. Assr., Tc 4894 (or.tax 7-21-2010) (Or. T.C. 2010). “Taxpayer asserts that, assuming the revocation of exempt status was proper, the additional tax computed pursuant to ORS 285C.175 and assessed under ORS285C.240 was improperly computed.”
Murray v. Wasco Cnty. Assessor (Or. T.C. 2018). “If the property is disqualified, the assessor must assess “100 percent of the additional taxes calculated under ORS 285C.175 against the property for each year for which the property had been granted exemption under ORS 285C.”
— Or. Rev. Stat. § 285C.175(7)(a) — 3 cases
Seneca Sustainable Energy, LLC v. Dep't of Revenue, 429 P.3d 360 (Or. 2018). “ORS 285C.175(2). The fact that Seneca's property tax bill was reduced temporarily by operation of the enterprise zone exemption does not alter the conclusion that Seneca was a taxpayer for purposes of the tax laws of this state.”
Seneca Sustainable Energy, LLC II v. Dept. of Rev., 22 Or. Tax 263 (Or. T.C. 2016). “The property at issue was noted on the assessment roll for the 2012-13 tax year as required under ORS 285C.175(7)(a).1 That notation requires a determina- tion, in accordance with Article XI, section 11, of the Oregon Constitution (Measure 50), of the assessed value (AV) of the…”
Seneca Sustainable Energy LLC III v. Dept. of Rev., 23 Or. Tax 22 (Or. T.C. 2018). “2 In accordance with ORS 285C.175(7)(a), the assessed value (AV) of the property was placed on the roll for each tax year as a notation as if it were not exempt.”
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