Oregon
Rule Rule 123-674-6000
FILING & COMPLIANCE — Exemption Prior To ‘In Service’


Under ORS 285C.170 qualified property of an actively authorized business firm in the enterprise zone is exempt from ad valorem taxation for up to two years, such that:

(1)

Consistent with OAR 123-674-6100(4), this exemption precedes and complements the one under ORS 285C.175, in that

(a)

It applies only to property that is not yet placed in service before the (January-1) assessment date; and

(b)

The property is thus not qualified to start the three- to five-year exemption period in the present assessment year.

(2)

This exemption is largely interchangeable with the one under ORS 307.330 and 307.340 (Commercial Facilities Under Construction); common elements are that:

(a)

The firm must file with the county assessor, as described in section (3) of this rule, no later than April 1 of each assessment year when the property exists in the zone/county;

(b)

Any (utility) property subject to central assessment by the Department of Revenue is disallowed;

(c)

Exemption is permissible for not more than two consecutive years; and

(d)

The relationship to ORS 285C.175 as described in section (1) of this rule is the same in terms of the property being in service or not.

(3)

The firm shall file the latest revision of Department of Revenue Form OR-AP-CIPEZ, 150-310-021, Application for Construction-in-Process Enterprise Zone Exemption. An eligible business firm that instead files Form OR-AP-CACFC, 150-310-020, Application for Cancellation of Assessment on Commercial Facilities Under Construction, will:

(a)

Receive only the treatment allowed under ORS 307.330; but

(b)

It needs to do so in any case for situations described in section (5) and (6) of this rule.

(4)

The following may be exempt in the zone, but would not be under ORS 307.330:

(a)

Property at a project site where there is no construction of or additions to a building or structure;

(b)

Mere modifications to a building or structure;

(c)

A nonmanufacturing facility with re/construction taking less than a years time to complete and to put the facility in service;

(d)

Additional property that is not yet placed in service, even though a portion or element of the project, facility or structure has been completed, consistent with OAR 123-674-5300(2); or

(e)

Machinery and equipment, even if it will:

(A)

Not be installed in or affixed to a building, structure or addition thereto; or

(B)

Remain personal property after installation.

(5)

Irrespective that property might qualify under ORS 285C.175, the following situations may not use this exemption, although exemption under 307.330 is possible:

(a)

Property had been exempt already at the same site in the zone under ORS 307.330 even if for only one year;

(b)

The business firm is a hotel, motel or destination resort, regardless of the zone;

(c)

The authorized business firm does not or will not necessarily own or lease the property;

(d)

The business firm has applied but is not yet authorized, consistent with OAR 123-674-3000 by the April-1 filing deadline in this rule; or

(e)

As of the January 1 assessment date:

(A)

Authorization is inactive under ORS 285C.165 unless also renewed by April 1;

(B)

Property is not yet located inside the boundary of the designated zone; or

(C)

The zone has terminated.

(6)

Pending approval of the Application, the firm may file and have property exempted as allowed under ORS 307.330, such that:

(a)

After approval/authorization, the assessor may extend exemption under ORS 285C.170 to other qualified property subject to this rule; but

(b)

The ongoing exemption of property may continue only under ORS 307.330.

(7)

The county assessor shall not exempt property specifically under ORS 285C.170, if the assessor has a reasonable and definitive reason to believe that:

(a)

The property is or will not be qualified property when placed in service;

(b)

The authorized business firm will not qualify under ORS 285C.200; or

(c)

Other applicable requirements under ORS 285C.175 will not be met.

(8)

In the face of significant doubts about conformance with the requirements of ORS 285C.170, the assessor may depend on reasonably requested information or confirmation from the firm or zone sponsor, before determining to the grant the exemption.

(9)

Consistent with subsection (2)(c) of this rule, property exempted under ORS 285C.170 may not receive further exemption under 307.330 beyond the cumulative two-year period.

(10)

In the event that the anticipated exemption under ORS 285C.175 is unclaimed under 285C.220, denied, or disqualified under 285C.240, the exemption as described in this rule is not necessarily jeopardized in any way, even for such property that would not normally be exempt under 307.330.
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Last accessed
Oct. 17, 2019