OAR 123-674-5300
Buildings, Structures and Other Real Property

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

(1)

The following do not qualify, unless the cost of all such property collectively in a single property schedule under ORS 285C.225 (Sponsor’s addendum) equals or exceeds $50,000 in total:

(a)

New construction of or additions, modifications or improvements to a building or structure; or

(b)

Real property machinery & equipment as newly installed or as modified according to section (5) of this rule.
(2)(a) Qualified property, including but not limited to a building or structure, is severable under ORS 285C.180 (Qualified property generally)(5), such that:
(A) A part of the building or structure may be exempt, even if another part of the same building or structure is owned or leased by a different business firm, used for ineligible activities, or otherwise not subject to the same exemption; and
(B) The amount of property value that is exempt shall be determined through pro rata calculation based on floor area or other reasonable method, as preferably considered with the Preauthorization Conference, and verified by the zone sponsor as necessary.
(b) Such severability does not pertain to timely Application under ORS 285C.140 (Application for authorization)(1); for example, later construction of portions of a building may not qualify if any such work began before submission of the Application, although subsequent installation of machinery & equipment in general may.

(3)

Landscaping or comparable elements may qualify, for example, at a golf course in the case of a hotel, motel or destination resort under ORS 285C.185 (Minimum cost of qualified property)(4), if classified by the county assessor as structural improvements rather than enhancements to the land.

(4)

The exemption on qualified additions, modifications, reconditioning, refurbishment, retrofits or upgrades under ORS 285C.175 (Enterprise zone exemption)(3)(b) is measured in each year by:

(a)

Computing the assessed value of such taxable property (lesser of real market value or maximum assessed value in each case):

(A)

With such qualified improvements or changes; and

(B)

As if such qualified improvements or changes had not happened (that is, the assessed value that would have been subject to taxation) but accounting for other concurrent changes to the property.

(b)

Taking the difference between the values described in paragraphs (a)(A) and (a)(B) of this section, such that any negative difference equates to zero.
(5) Modifications to an item of machinery & equipment qualify under ORS 285C.190 (Requirements for qualifying reconditioned, refurbished, retrofitted or upgraded property) only if it is real property, and all of the following are true:
(a) Descriptions in the Application (including as amended) recognize such modifications as a basic property type;
(b) On the date of Application the property was idle or not in use;
(c) That period of idleness already has or ultimately does encompasses 18 or more consecutive months;
(d) Previously, the item had been in actual use for 12 or more consecutive months in the same county or zone as where it is placed back into service;
(e) Work to modify the item commenced on or after the date of Application and the enterprise zone’s designation or amendment;
(f) The total cost of modification equals $50,000 or more; and
(g) It is placed back into service no more than 12 months before the first exemption year pursuant to modifications.

Source: Rule 123-674-5300 — Buildings, Structures and Other Real Property, https://secure.­sos.­state.­or.­us/oard/view.­action?ruleNumber=123-674-5300.

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. 24, 2021

Rule 123-674-5300’s source at or​.us