OAR 123-674-5000
QUALIFIED PROPERTY— Critical Terms


As used in 285C.050 (Definitions for ORS 285C.050 to 285C.250) to 285C.250 (Redesignation or designation of new zone following zone termination) and in this division of administrative rules, consistent with relevant definitions in ORS Chapter 307 (Property Subject to Taxation) and OAR 150-285-3200 (Enterprise Zone Statutory Definitions), unless the context dictates otherwise:

(1)

Addition includes one or both of the following as indicated by the context:

(a)

The re-construction of an existing building or structure to expand or enlarge its area, volume, dimensions or structural capacity; or

(b)

The newly erected or created space, enclosure or annex of the building or structure, pursuant to the re/construction described in subsection (a) of this section.

(2)

Building includes a real property improvement erected on the land, mostly enclosed by walls and roofing, and designed for human use, occupancy or shelter, along with structural components necessary to make the building usable and habitable such as wiring, plumbing, foundation, fixtures, lighting and heating and cooling system.

(3)

Commercial relates to the principal undertaking by a qualified business firm in the direct furtherance of the production of income through the handling, making or provision of goods, products or services for ultimate (though not typically direct) sale.

(4)

Completion of construction, addition, modification or installation has the same meaning as placing property ‘in service’ under ORS 285C.050 (Definitions for ORS 285C.050 to 285C.250)(11), in that the property is legally and physically ready for commercial operations as specifically intended, following interconnected installations, testing or proving of safety, information and other systems essential to produce saleable output, as well as necessary occupancy or other permits. Excluded are training of personnel and other similarly intangible activities or managerial issues, however critical they might be for business operations in general.

(5)

Cost means expenses documentable through existing records or retrospective compilation of evidence as incurred for:

(a)

Construction, reconstruction, modification or installation of qualified property, including but not limited to materials, supplies, labor, paint, contractor charges, equipment usage, engineering, architectural fees, building or land use permits and associated legal costs, and physical connections to utilities and other property, but excluding the costs of maintenance, financing, atypical legal fees, off-site improvements, the authorized business firm’s own management and so forth; or

(b)

Purchase of real or personal property machinery & equipment or of ready-made buildings or structures directly prior to installation or occupancy. Estimated fair market value shall substitute for purchase price in the case of existing property, for which there has not been a recent sale (for example, leasing of used property).

(6)

Installation is the actual placement, affixing, connection or integration of machinery & equipment or personal property in or with a building, structure or other machinery & equipment for purposes of being used and does not mean the purchase, onsite delivery or storage of such property.

(7)

Item, subject to further definition in OAR chapter 150 under ORS 285C.185 (Minimum cost of qualified property)(6)(b), includes any personal property that may be effectively appraised or assessed as a unit, including but not limited to an entire conveyance, information or other system, the various components of which are mechanically, electrically or similarly integrated.

(8)

Land includes raw undeveloped land and any improvements to the land for site development.

(9)

Located in/inside the enterprise zone means the use or operation of qualified property for trade or business operations within the current boundary of the enterprise zone, from which it is not removed during the standard exemption period other than incidental or temporary reasons of repair, maintenance and so forth.

(10)

Modification under ORS 285C.050 (Definitions for ORS 285C.050 to 285C.250) comprises:

(a)

Reconditioning, refurbishment, retrofitting or upgrading of real property machinery & equipment for purposes of ORS 285C.190 (Requirements for qualifying reconditioned, refurbished, retrofitted or upgraded property); or

(b)

The alteration or reconstruction of all or part of an existing building or structure, as distinct from an addition to the building or structure.

(11)

Personal property includes any tangible property (readily movable as opposed to effectively fixed or very heavy) that is used in the business process or activity and is otherwise subject to ad valorem taxation, including but not limited to devices, tools and (former) spare parts that are put to use (see OAR 123-674-5200 (Mechanical, Personal and Unqualified Property)).

(12)

Production of tangible goods means any physical process or manipulation of materials, commodities or products, including but not limited to manufacturing, assembly, sorting, cooking, heating, freezing, mixing, sorting, wrapping, onsite conveyance, packaging or bulk printing.

(13)

Real property machinery & equipment (fixed or stationary in contrast to personal property due to weight, size or attachment to or integration with other real property) is real property used in the business process or activity and not otherwise described in this rule, including but not limited to major machines, specialized pipes, air filtration systems, wiring, electrical panels or switches, or other non-structural, assembled apparatuses. (This type of property may be classified as ‘tangible personal property’ for income tax or other purposes)

(14)

Structure includes a real property improvement on or under the land other than buildings, machinery or equipment, including but not limited to ramps, docks, parking lots, outdoor freestanding signs, subterranean compartments and outdoor lighting, as well as associated fixtures, paving, wiring, pipes, foundations and so forth.

Source: Rule 123-674-5000 — QUALIFIED PROPERTY— Critical Terms, https://secure.­sos.­state.­or.­us/oard/view.­action?ruleNumber=123-674-5000.

123–674–0001
Purpose, Scope and General Process for Businesses Seeking Exemption
123–674–0100
Definitions
123–674–0200
General Employment Terminology and Issues
123–674–0500
EXTENDED TAX ABATEMENT — General Points
123–674–0600
Compensation & Wage Standards
123–674–0700
Written Agreement between Sponsor and Eligible Business Firm
123–674–1000
BUSINESS ELIGIBILITY — Special Business Distinctions
123–674–1100
Basic Eligibility of Firms and Operations
123–674–1200
Ineligible Activities
123–674–1300
Eligible Business Firm with Ineligible Activities
123–674–1400
Gross Receipts Test
123–674–1600
Call Centers and Like Operations
123–674–1700
Headquarter Facilities
123–674–2000
AUTHORIZATION PROCESS — Timely Submission
123–674–2100
Allowably Late Applications
123–674–2300
Initial Processing by Local Zone Manager
123–674–2500
Final Processing
123–674–3000
AUTHORIZATION’S COVERAGE & EFFECT — Being An Authorized Firm
123–674–3100
Limitations on Exemption Relative to Authorization
123–674–3200
Amending the Application/Authorization
123–674–3500
Additional, Concurrent Authorizations
123–674–3700
Renewal of Active Status and Inactive Authorization
123–674–4000
EMPLOYMENT OF FIRMS — Computation of Averages
123–674–4100
Employment Requirement to Qualify Initially
123–674–4200
Diminishing Employment Well beyond the Zone
123–674–4300
Local Waiver of Employment Increase inside Zone
123–674–4600
Maintaining Sufficient Employment
123–674–4800
Sale or Leasing of Exempt Property
123–674–5000
QUALIFIED PROPERTY— Critical Terms
123–674–5100
Eligible Utilization
123–674–5200
Mechanical, Personal and Unqualified Property
123–674–5300
Buildings, Structures and Other Real Property
123–674–5400
Property Already Entered on Rolls
123–674–5500
Obligations for All Leases, Lessors and Lessees
123–674–6000
FILING & COMPLIANCE — Exemption Prior To ‘In Service’
123–674–6100
Mandatory First-year Claim with Property Schedule
123–674–6200
Filing Latter-year Claims
123–674–6300
Disqualification of Particular Property
123–674–6400
General Firm Disqualification
123–674–6600
PAYBACK IN LIEU OF DISQUALIFICATION — Applicability
123–674–6610
Payment of Tax Savings
123–674–6620
Distribution of Payment among Cosponsors
123–674–6630
Utilization of Payments
123–674–6880
Deferral during Recession
123–674–6885
Additional Conditions with Deferral
123–674–7200
GENERAL LAWFULNESS — Terminology
123–674–7210
Declarations and Responsibilities
123–674–7220
Effect of Event of Noncompliance
123–674–7230
Materiality
123–674–7240
Cure
123–674–7250
Interpretation
123–674–7700
FIRST SOURCE HIRING AGREEMENTS — Coverage
123–674–7710
First-Source Procedures
123–674–7720
Handling Exemption Claims
123–674–7730
Allowing Late Execution of First-Source Agreement
123–674–8000
ZONE BEGINNINGS & ENDS — Designation or Amendment
123–674–8100
Authorization and Zone Termination
123–674–8200
Grandfathering in a Terminated Zone
123–674–8300
Timely Completion of Construction
Last Updated

Jun. 8, 2021

Rule 123-674-5000’s source at or​.us