OAR 123-674-5200
Mechanical, Personal and Unqualified Property

For purposes of enterprise zone property to be exempt under ORS 285C.170 (Construction-in-process exemption) or 285C.175 (Enterprise zone exemption):

(1)

Real property machinery & equipment or personal property may qualify despite prior usage outside the zone, such that the exempt value is based on the usual factors of appraisal, such as age, deterioration and obsolescence, as well as any reconditioning, refurbishment or restoration.

(2)

More than three months before submission of the Application, any personal property or real property machinery & equipment, except for OAR 123-674-5300 (Buildings, Structures and Other Real Property)(5), must not be both:

(a)

Owned or leased by the business firm; and

(b)

Located in the county containing the site of the property inside the zone.

(3)

Newly acquired qualified property of a Firm/applicant that conforms to section (2) of this rule may even be used in the county outside the enterprise zone, before it is placed in service and subsequently exempted in the zone, subject to compliance with other applicable provisions, and provided that it is not subject to assessment at any location outside the zone more than once.

(4)

An item of personal property with a cost of less than $50,000 qualifies for the exemption only if used:

(a)

Exclusively in the production of tangible goods, which by itself will usually preclude furniture or decorations and most communication, office, video or comparable devices; or

(b)

In electronic commerce at a location in a so-designated area as described in OAR 123-662.

(5)

Subsection (4)(a) of this rule with respect to tangible goods production also covers personal property items of machinery & equipment:

(a)

Even if the tangible good in question is not actually created or manufactured from raw inputs, but is instead modified, processed, restored, repaired, measured, sized, imprinted, packaged, conveyed, shipped or comparably affected in a physical manner.

(b)

That maintain, calibrate, adjust, monitor, test or fix qualified property directly involved with tangible output or production, or that assure quality control of tangible output or production, including but not limited to research and development equipment incorporated into production activities.

(6)

For purposes of qualification, the following may be considered equivalent to newly installing machinery & equipment after making Application:

(a)

Connection or attachment to existing machinery & equipment of an item that is separately assessed in its own right; or

(b)

Comprehensive rebuilding in place of what effectively constitutes a new item for valuation or assessment as distinct from modification.

(7)

Regardless of any other provision of this division of administrative rules, the following property does not qualify for the exemption:

(a)

Land or improvements “to” raw land, such as site preparation.

(b)

Any item of personal property with a cost of less than $1,000.

(c)

Fuel, lubricants and other non-inventory supplies.

(d)

Any machinery, equipment or device that can roam freely by its own motive power under the control of an operator/driver, including but not limited to forklifts.

(e)

Any other similarly self-propelled motorized vehicle, including by remote control.

(f)

Any device or item that is pulled, pushed or carried by a vehicle and designed to hold and transport people, goods or property on highways, waterways or railways beyond the zone boundaries, including but not limited to trailers, rolling stock, barges, carriages or railroad cars.

Source: Rule 123-674-5200 — Mechanical, Personal and Unqualified Property, https://secure.­sos.­state.­or.­us/oard/view.­action?ruleNumber=123-674-5200.

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 123-674-5200’s source at or​.us