Commencement and Duration of Long-Term Nonurban Oregon Enterprise Zone Exemption
For purposes of ORS 285C.409 (Property tax exemption) and this rule, a facility is “in service” when a certified business has received a permit to occupy and use the building for its intended purpose.
All real and personal property including improvements, machinery, and equipment newly located at the facility are exempt from ad valorem property tax for a minimum of seven and a maximum of 15 consecutive tax years. The period for the exemption commences with the first tax year for which the facility was placed in service as of the assessment date for that tax year. If there is no express written agreement between the certified business firm and the zone sponsor on the number of tax years for which the facility is to be exempt, the period for the exemption will be seven consecutive tax years.
The following are examples of how to determine the tax year for which the exemption commences:Example 1: The property for which the exemption is claimed was placed in service on November 15, 2002. The first assessment date after the property was placed in service is January 1, 2003. Therefore, the exemption commences with the 2003-04 tax year.Example 2: The property for which the exemption is claimed was placed in service on February 15, 2003. The first assessment date after the property was placed in service is January 1, 2004. Therefore, the exemption commences with the 2004-05 tax year.