Oregon
Rule Rule 123-623-1700
Establishment of Exempt Property


(1)

The Commission’s determination pursuant to OAR 123-623-1600 (Consideration and Approval) needs to define the Approved Project for purposes of the Abatement, consistent with the Application (and the County agreement with the Applicant if outside an SIZ).

(2)

Such a definition shall employ one or more of the following examples or a comparable method that:

(a)

Stipulates the site(s) or overall facility at which applicable property must be located, used and occupied for commercial purposes;

(b)

Delimits what the Abatement covers in terms of investment cost or property value, or the specific period, in which construction/installation needs to commence, or in which property must be placed in service; or

(c)

Identifies applicable real and personal property, including but not limited to:

(A)

Referencing the description of investment(s) in the Application or further information from the Applicant (whether requested or not by the Department or Commission); or

(B)

Delineating details for improvements, buildings or property items (or representative examples thereof) that the Applicant will acquire, construct or install, or for which the assessed value might increase as a result of additions, reconstruction, modifications, remodeling, renovation, refurbishment, retrofitting or upgrades.

(3)

Property of an Approved Project qualifies for Abatement even if built on, installed in or associated with Existing Property:

(a)

Outside a SIZ, a (positive) change in the assessed value of already owned or leased property is also subject to Abatement if resulting from modifications, remodeling, renovation, refurbishment, retrofitting or upgrades as part of the Approved Project.

(b)

The Abatement excludes any such change in value of any property inside any SIZ (except as due to newly constructed additions to any existing structure), as well as all land or any other property in existence or in the process of construction or installation before the Department’s effective receipt of the Application. This subsection applies regardless if the project is approved based on its location in the SIZ or otherwise under ORS 285C.606 (Determination of projects for tax exemption)(1) as described in OAR 123-623-1550 (Application outside a Strategic Investment Zone).

(4)

As otherwise allowed under the project definition described in this rule, the Abatement shall cover any property comprising the Approved Project, for which construction, installation, modification or the like occurs during or after the first year of Abatement, but only for the remainder of the 15-year period.

(5)

If another business firm acquires the Applicant or the Approved Project, the ongoing Abatement shall continue as authorized, such that continuously exempt property is not Existing Property, provided that:

(a)

The acquiring firm complies with all terms and conditions under the Application, its approval, and the corresponding local agreement in OAR 123-623-1525 (Application within a Strategic Investment Zone) or 123-623-1550 (Application outside a Strategic Investment Zone), as well as applicable requirements of law and this division of administrative rules, as if the acquiring firm were the Applicant; and

(b)

The owner or chief executive officer of the acquiring firm furnishes and authorizes a formal statement to the Department and the parties to the agreement, attesting to the firm’s full assumption of relevant obligations and requirements formerly incumbent on the Applicant.
Source
Last accessed
Aug. 6, 2020