Oregon Department of Revenue

Rule Rule 150-307-0280
Qualifications for Exemption of Mutual or Cooperative Telephone Associations


Qualifying Conditions. Property owned by a mutual or cooperative telephone association is qualified for exemption if all the following conditions are satisfied:


Ownership. The property must be owned by an association of persons that:


Is wholly mutual or cooperative in character, whether incorporated or not. The characteristics of a mutual or cooperative association are:


Each incorporated association is organized as a cooperative association or, if organized as a nonprofit organization, its bylaws provide that it operate as a cooperative association.


Each unincorporated association provides in its bylaws that the association is mutual or cooperative in character and is not to produce profit.


While one member may hold more stock or shares in the association than another member, voting cannot be based on ownership of shares, stock, certificates, or other evidence of their interest. Voting must be restricted to one vote to a member, or in proportion to their actual, estimated or potential patronage, as the bylaws may provide, except that in no event may any one member thereby exercise a majority vote.


All members must share proportionately, according to their evidence of interest, in the cost of construction, maintenance, and operation of the association’s properties, and in the division of any surplus or reserves accumulated when such a surplus or reserve is not necessary for proper maintenance or construction of such system or all members must share in proportion to their patronage as the bylaws may provide.


Operates without profit in money.


Has no business or purpose other than the provision of telephone communications service.


Use. All persons served must be members and must own shares, stock, certificates, or other evidence of their interest.


Value. The association’s telephone property has a real market value of not more than $2,500 as determined by the Department of Revenue.


Operation. The association’s telephone communication system operation is conducted without the ownership, operation or lease of telephonic switchboard exchange facilities, or direct or indirect ownership of stock in any telephone switchboard association, partnership or corporation.


Eligible Property. Property that may qualify for exemption includes all property consisting of improvements, fixtures, equipment and supplies used exclusively in the construction, maintenance, and operation of a telephone communication system. Examples of property that may qualify for exemption include but are not restricted to:


Poles, crossarms, guy stubs and guy wire;


Aerial wire;


Aerial or underground cable;


Suspension strand;






Drop and blockwire;




Ineligible Property. The following types of property that cannot qualify for exemption will be classified and assessed pursuant to ORS 308.505 (Definitions for ORS 308.505 to 308.674) to 308.660.


Parcels of land and buildings owned, leased, rented, chartered or otherwise held for or used by an association in a telephone communication system.


Any other property not owned by the association but used or held by it in a telephone communication system.


Any property owned, leased, rented, chartered or otherwise held by an association and not used in providing telephone communication.

Last accessed
Jun. 8, 2021