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Oregon Revised Statutes

Or. Rev. Stat. § 285C.240 (2026)

Disqualification; notice and procedures; in lieu payments and additional taxes; penalty; use of moneys

✓ current as of May 2026
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      285C.240 Disqualification; notice and procedures; in lieu payments and additional taxes; penalty; use of moneys. (1) The county assessor of the county in which a qualified business firm is situated and the sponsor shall be notified in writing by the qualified business firm or by the owner of the qualified property leased by the qualified business firm not later than July 1 following the assessment year for which the exemption is claimed and in which one of the following events occurs:

      (a) Property granted exemption from taxation under ORS 285C.175 is sold, exchanged, transported or otherwise disposed of for use outside the enterprise zone or for use by an ineligible business firm;

      (b) The qualified business firm closes or so reduces eligible operations that the reduction constitutes a substantial curtailment of operations under ORS 285C.210, unless a substantial curtailment of operations is permitted under ORS 285C.203;

      (c) The qualified business firm fails to meet any of the qualifications required under ORS 285C.200;

      (d) The qualified business firm fails to meet any condition that the firm is required to satisfy under ORS 285C.150, 285C.155, 285C.203 or 285C.205 or any term of an agreement entered into with the sponsor under ORS 285C.160 with which the firm had agreed to comply;

      (e) The qualified business firm uses the property to conduct activities in the enterprise zone that are not eligible activities; or

      (f) Property of the qualified business firm for which exemption under ORS 285C.175 is claimed ceases to be qualified property under ORS 285C.180.

      (2) If the sponsor receives written notice under subsection (1) of this section, the sponsor shall immediately send a copy of the notice to the county assessor of the county in which the enterprise zone is situated.

      (3)(a) When an assessor receives written notice under subsection (1) or (2) of this section, the assessor shall:

      (A) Disqualify the property for the assessment years, if any, for which exemption under ORS 285C.175 is otherwise allowable following the disqualifying event; and

      (B) Impose 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.175.

      (b) Notwithstanding paragraph (a) of this subsection, if a qualified business firm fails to meet any of the requirements of an agreement entered into by the firm under ORS 285C.160 during the exemption, but meets all other applicable requirements under ORS 285C.050 to 285C.250 during the first three years of the exemption, the qualified property of the firm may not be disqualified during the first three years of exemption for failure to comply with the requirements of the agreement entered into under ORS 285C.160.

      (c) The additional taxes assessed under this subsection shall be reduced by the amount, if any, paid by the qualified business firm to the sponsor under subsection (6) of this section for the same property.

      (4) If the qualified business firm or owner fails to give the notice on time or at all as required by subsection (1) of this section, upon discovering the property no longer qualifies for the exemption due to a circumstance described in subsection (1) of this section, the assessor shall:

      (a) Disqualify the property from exemption;

      (b) Compute the amount of additional taxes described in subsection (3) of this section as though notice had been given, and add to that amount a penalty equal to 20 percent of the total amount so computed; and

      (c) Add the property to the assessment and tax roll without the exemption as if the notice had been given.

      (5) The amount determined to be due under subsections (3) and (4) of this section:

      (a) May be paid to the tax collector before completion of the next general property tax roll pursuant to ORS 311.370; and

      (b) Shall be added to the tax extended against the property on the next general property tax roll to be collected and distributed in the same manner as the remainder of the property taxes.

      (6)(a) Notwithstanding subsections (3) and (5) of this section, if an assessor or sponsor receives notice from a business firm under subsection (1)(b), (c) or (d) of this section and the qualified business firm has not closed its operations, the sponsor may collect from the qualified business firm an amount equal to the property taxes for the qualified property in the assessment year for which the exemption is claimed in lieu of the amounts otherwise due under subsection (3) of this section.

      (b) Moneys collected under paragraph (a) of this subsection shall be used by the sponsor to benefit the residents of the enterprise zone and for the development of jobs, skills and training for residents of the enterprise zone and the zone’s immediate vicinity.

      (c) This subsection applies only to the first notice given by the business firm under subsection (1)(b), (c) or (d) of this section.

      (d) If the sponsor does not receive the full amount to be paid by the qualified business firm under paragraph (a) of this subsection, the assessor shall disqualify the property and impose the entire amount of additional taxes as prescribed under subsection (3) of this section.

      (7) An assessor may not disqualify property under this section for failure by a qualified business firm or an owner of qualified property leased by the qualified business firm to notify the assessor or the enterprise zone sponsor that the qualified business firm does not meet requirements under ORS 285C.150, 285C.155, 285C.160 or 285C.205, without having received written communication from the sponsor that demonstrates that the qualified business firm does not meet the requirements.

      (8) Additional taxes collected under this section shall be deemed to have been imposed in the year to which the additional taxes relate.

      (9) If property is disqualified from exemption under this section, the assessor shall notify the qualified business firm, and the owner of any qualified property that is leased by the firm, of the disqualification. The notification shall be made in writing. The assessor shall provide copies of the disqualification to the sponsor, the Department of Revenue and the Oregon Business Development Department. The decision of the assessor to disqualify property under this section may be appealed to the Oregon Tax Court under ORS 305.404 to 305.560. [Formerly 285B.728; 2010 c.39 §9; 2017 c.83 §10]

 

(Termination of Enterprise Zone)

Notes of Decisions
Cited in 11 cases, 2010–2019 · leading case: Seneca Sustainable Energy v. Lane Cnty. Assessor, 21 Or. Tax 366 (Or. T.C. 2014).
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Seneca Sustainable Energy v. Lane Cnty. Assessor, 21 Or. Tax 366 (Or. T.C. 2014). · cites it 5× ““(c) Indicate on the assessment roll that the property is exempt and is subject to potential additional taxes as pro- vided in ORS 285C.240, by adding the notation ‘enterprise zone exemption (potential additional tax).”
United Streetcar, LLC v. Dept. of Rev., 23 Or. Tax 418 (Or. T.C. 2019). · cites it 4× “ORS 285C.240(1)(a) - (f). If the disqualifying event occurs at any time during the exemption period, the assessor “shall disqualify the property for the assessment year following the disqualifying event and 100 percent of the additional taxes calculated under ORS 285C.”
Seneca Sustainable Energy, LLC v. Dep't of Revenue, 429 P.3d 360 (Or. 2018). “"(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).”
Seneca Sustainable Energy LLC III v. Dept. of Rev., 23 Or. Tax 22 (Or. T.C. 2018). “Taxpayer notes that its tax liability, assuming it lost its tax exemption and the claw-back provisions of ORS 285C.240(3)(a) were implicated, would be $648,589 for tax year 2012-13, and $641,985 for tax year 2013-14.”
Hynix Semiconductor v. Lane Cnty. Assessor, Tc-Md 091320b (or.tax 5-12-2011) (Or. T.C. 2011). · cites it 52× “) That letter indicated that it was Hynix's "notice of disqualification" required by ORS 285C.240 because Hynix had "substantially curtailed employment below what is required to maintain eligibility in the Oregon Enterprise Zone program.”
Hynix Semicond. Mfg. v. Lane Cnty. Assr., Tc-Md 091320b (or.tax 5-5-2011) (Or. T.C. 2011). · cites it 52× “) That letter indicated that it was Hynix's "notice of disqualification" required by ORS 285C.240 because Hynix had "substantially curtailed employment below what is required to maintain eligibility in the Oregon Enterprise Zone program.”
Georgia-Pac. Cons. v. Clatsop Cty. Assr., Tc 4894 (or.tax 7-21-2010) (Or. T.C. 2010). · cites it 12× “In accordance with ORS 285C.240, the county assessed taxes in respect of the exempt property for the 2004 and 2005 tax years.”
United Streetcar, LLC v. Clackamas Cnty. Assessor (Or. T.C. 2017). · cites it 4× “ORS 285C.240(1) sets forth circumstances under which the county assessor must disqualify property from enterprise zone property tax exemption, including the following: (a) the exempt property is “sold, exchanged, transported or otherwise disposed of for use * * * by an…”
Murray v. Wasco Cnty. Assessor (Or. T.C. 2018). · cites it 2× “There is no statutory basis for a taxpayer to ‘wait and see’ if an appraisal in a particular year will or will not result in a later assessment of tax under ORS 285C.240.” Seneca, 21 OTR at 370 . On its face the problem faced by Plaintiff is similar to the taxpayer in Seneca;…”
Bay Area Hosp. v. Oregon Health Auth., 23 Or. Tax 368 (Or. T.C. 2019). “175(6), ORS 285C.240(9), ORS 285C.403(6) (jurisdiction for various claims under Oregon Enterprise Zone Act); ORS 294.”
Georgia-Pac. II v. Clatsop Cnty. Assessor, 20 Or. Tax 426 (Or. T.C. 2012). “(3) The remainder is the RMV of PM6 to be used in the deter- mination of the taxes imposed under ORS 285C.240(3)(a), provided that in no event will the previously determined RMV for the nonexempt property be re-determined if stat- utory appeal time limits in respect of such…”
— Or. Rev. Stat. § 285C.240(1) — 3 cases
Hynix Semiconductor v. Lane Cnty. Assessor, Tc-Md 091320b (or.tax 5-12-2011) (Or. T.C. 2011). “) That letter indicated that it was Hynix's "notice of disqualification" required by ORS 285C.240 because Hynix had "substantially curtailed employment below what is required to maintain eligibility in the Oregon Enterprise Zone program.”
Hynix Semicond. Mfg. v. Lane Cnty. Assr., Tc-Md 091320b (or.tax 5-5-2011) (Or. T.C. 2011). “) That letter indicated that it was Hynix's "notice of disqualification" required by ORS 285C.240 because Hynix had "substantially curtailed employment below what is required to maintain eligibility in the Oregon Enterprise Zone program.”
United Streetcar, LLC v. Clackamas Cnty. Assessor (Or. T.C. 2017). “ORS 285C.240(1) sets forth circumstances under which the county assessor must disqualify property from enterprise zone property tax exemption, including the following: (a) the exempt property is “sold, exchanged, transported or otherwise disposed of for use * * * by an…”
— Or. Rev. Stat. § 285C.240(1)(a) — 1 case
United Streetcar, LLC v. Dept. of Rev., 23 Or. Tax 418 (Or. T.C. 2019). “ORS 285C.240(1)(a) - (f). If the disqualifying event occurs at any time during the exemption period, the assessor “shall disqualify the property for the assessment year following the disqualifying event and 100 percent of the additional taxes calculated under ORS 285C.”
— Or. Rev. Stat. § 285C.240(1)(b) — 3 cases
Hynix Semiconductor v. Lane Cnty. Assessor, Tc-Md 091320b (or.tax 5-12-2011) (Or. T.C. 2011). “) That letter indicated that it was Hynix's "notice of disqualification" required by ORS 285C.240 because Hynix had "substantially curtailed employment below what is required to maintain eligibility in the Oregon Enterprise Zone program.”
Hynix Semicond. Mfg. v. Lane Cnty. Assr., Tc-Md 091320b (or.tax 5-5-2011) (Or. T.C. 2011). “) That letter indicated that it was Hynix's "notice of disqualification" required by ORS 285C.240 because Hynix had "substantially curtailed employment below what is required to maintain eligibility in the Oregon Enterprise Zone program.”
United Streetcar, LLC v. Clackamas Cnty. Assessor (Or. T.C. 2017). “ORS 285C.240(1) sets forth circumstances under which the county assessor must disqualify property from enterprise zone property tax exemption, including the following: (a) the exempt property is “sold, exchanged, transported or otherwise disposed of for use * * * by an…”
— Or. Rev. Stat. § 285C.240(1)(c) — 1 case
United Streetcar, LLC v. Clackamas Cnty. Assessor (Or. T.C. 2017). “ORS 285C.240(1) sets forth circumstances under which the county assessor must disqualify property from enterprise zone property tax exemption, including the following: (a) the exempt property is “sold, exchanged, transported or otherwise disposed of for use * * * by an…”
— Or. Rev. Stat. § 285C.240(1)(d) — 1 case
United Streetcar, LLC v. Clackamas Cnty. Assessor (Or. T.C. 2017). “ORS 285C.240(1) sets forth circumstances under which the county assessor must disqualify property from enterprise zone property tax exemption, including the following: (a) the exempt property is “sold, exchanged, transported or otherwise disposed of for use * * * by an…”
— Or. Rev. Stat. § 285C.240(1)(e) — 1 case
United Streetcar, LLC v. Dept. of Rev., 23 Or. Tax 418 (Or. T.C. 2019). “ORS 285C.240(1)(a) - (f). If the disqualifying event occurs at any time during the exemption period, the assessor “shall disqualify the property for the assessment year following the disqualifying event and 100 percent of the additional taxes calculated under ORS 285C.”
— Or. Rev. Stat. § 285C.240(3) — 2 cases
Hynix Semiconductor v. Lane Cnty. Assessor, Tc-Md 091320b (or.tax 5-12-2011) (Or. T.C. 2011). “) That letter indicated that it was Hynix's "notice of disqualification" required by ORS 285C.240 because Hynix had "substantially curtailed employment below what is required to maintain eligibility in the Oregon Enterprise Zone program.”
Hynix Semicond. Mfg. v. Lane Cnty. Assr., Tc-Md 091320b (or.tax 5-5-2011) (Or. T.C. 2011). “) That letter indicated that it was Hynix's "notice of disqualification" required by ORS 285C.240 because Hynix had "substantially curtailed employment below what is required to maintain eligibility in the Oregon Enterprise Zone program.”
— Or. Rev. Stat. § 285C.240(3)(a) — 7 cases
United Streetcar, LLC v. Dept. of Rev., 23 Or. Tax 418 (Or. T.C. 2019). “ORS 285C.240(1)(a) - (f). If the disqualifying event occurs at any time during the exemption period, the assessor “shall disqualify the property for the assessment year following the disqualifying event and 100 percent of the additional taxes calculated under ORS 285C.”
Seneca Sustainable Energy LLC III v. Dept. of Rev., 23 Or. Tax 22 (Or. T.C. 2018). “Taxpayer notes that its tax liability, assuming it lost its tax exemption and the claw-back provisions of ORS 285C.240(3)(a) were implicated, would be $648,589 for tax year 2012-13, and $641,985 for tax year 2013-14.”
Seneca Sustainable Energy v. Lane Cnty. Assessor, 21 Or. Tax 366 (Or. T.C. 2014). ““(c) Indicate on the assessment roll that the property is exempt and is subject to potential additional taxes as pro- vided in ORS 285C.240, by adding the notation ‘enterprise zone exemption (potential additional tax).”
Hynix Semiconductor v. Lane Cnty. Assessor, Tc-Md 091320b (or.tax 5-12-2011) (Or. T.C. 2011). “) That letter indicated that it was Hynix's "notice of disqualification" required by ORS 285C.240 because Hynix had "substantially curtailed employment below what is required to maintain eligibility in the Oregon Enterprise Zone program.”
Hynix Semicond. Mfg. v. Lane Cnty. Assr., Tc-Md 091320b (or.tax 5-5-2011) (Or. T.C. 2011). “) That letter indicated that it was Hynix's "notice of disqualification" required by ORS 285C.240 because Hynix had "substantially curtailed employment below what is required to maintain eligibility in the Oregon Enterprise Zone program.”
— Or. Rev. Stat. § 285C.240(3)(a)(B) — 1 case
Murray v. Wasco Cnty. Assessor (Or. T.C. 2018). “There is no statutory basis for a taxpayer to ‘wait and see’ if an appraisal in a particular year will or will not result in a later assessment of tax under ORS 285C.240.” Seneca, 21 OTR at 370 . On its face the problem faced by Plaintiff is similar to the taxpayer in Seneca;…”
— Or. Rev. Stat. § 285C.240(6) — 3 cases
Hynix Semiconductor v. Lane Cnty. Assessor, Tc-Md 091320b (or.tax 5-12-2011) (Or. T.C. 2011). “) That letter indicated that it was Hynix's "notice of disqualification" required by ORS 285C.240 because Hynix had "substantially curtailed employment below what is required to maintain eligibility in the Oregon Enterprise Zone program.”
Hynix Semicond. Mfg. v. Lane Cnty. Assr., Tc-Md 091320b (or.tax 5-5-2011) (Or. T.C. 2011). “) That letter indicated that it was Hynix's "notice of disqualification" required by ORS 285C.240 because Hynix had "substantially curtailed employment below what is required to maintain eligibility in the Oregon Enterprise Zone program.”
Georgia-Pac. Cons. v. Clatsop Cty. Assr., Tc 4894 (or.tax 7-21-2010) (Or. T.C. 2010). “In accordance with ORS 285C.240, the county assessed taxes in respect of the exempt property for the 2004 and 2005 tax years.”
— Or. Rev. Stat. § 285C.240(6)(a) — 2 cases
Hynix Semiconductor v. Lane Cnty. Assessor, Tc-Md 091320b (or.tax 5-12-2011) (Or. T.C. 2011). “) That letter indicated that it was Hynix's "notice of disqualification" required by ORS 285C.240 because Hynix had "substantially curtailed employment below what is required to maintain eligibility in the Oregon Enterprise Zone program.”
Hynix Semicond. Mfg. v. Lane Cnty. Assr., Tc-Md 091320b (or.tax 5-5-2011) (Or. T.C. 2011). “) That letter indicated that it was Hynix's "notice of disqualification" required by ORS 285C.240 because Hynix had "substantially curtailed employment below what is required to maintain eligibility in the Oregon Enterprise Zone program.”
— Or. Rev. Stat. § 285C.240(7) — 1 case
Georgia-Pac. Cons. v. Clatsop Cty. Assr., Tc 4894 (or.tax 7-21-2010) (Or. T.C. 2010). “In accordance with ORS 285C.240, the county assessed taxes in respect of the exempt property for the 2004 and 2005 tax years.”
— Or. Rev. Stat. § 285C.240(9) — 2 cases
Seneca Sustainable Energy v. Lane Cnty. Assessor, 21 Or. Tax 366 (Or. T.C. 2014). ““(c) Indicate on the assessment roll that the property is exempt and is subject to potential additional taxes as pro- vided in ORS 285C.240, by adding the notation ‘enterprise zone exemption (potential additional tax).”
Bay Area Hosp. v. Oregon Health Auth., 23 Or. Tax 368 (Or. T.C. 2019). “175(6), ORS 285C.240(9), ORS 285C.403(6) (jurisdiction for various claims under Oregon Enterprise Zone Act); ORS 294.”
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