Property Subject to Taxation

ORS 307.123
Property of strategic investment program eligible projects

  • rules


(1)

Except as provided in subsection (4) of this section, real or personal property that the Oregon Business Development Commission, acting pursuant to ORS 285C.606 (Determination of projects for tax exemption), has determined is an eligible project under ORS 285C.600 (Definitions for ORS 285C.600 to 285C.635) to 285C.635 (Determination of personal income tax revenue) shall be subject to assessment and taxation as provided in this section.

(2)

(a) The following portions of the real market value of the eligible project, increased annually for growth at the rate of three percent, shall be taxable at the taxable portion’s assessed value under ORS 308.146 (Determination of maximum assessed value and assessed value):

(A)

The minimum cost of the project under ORS 285C.606 (Determination of projects for tax exemption) (1)(c)(A); or

(B)

If the project is located in a rural area as defined in ORS 285C.600 (Definitions for ORS 285C.600 to 285C.635):

(i)

$25 million for a project with a total cost of not more than $500 million.

(ii)

$50 million for a project with a total cost of more than $500 million and not more than $1 billion.
(iii) $100 million for a project with a total cost of more than $1 billion.

(b)

The taxable portion of real market value, as adjusted, shall be allocated as follows until the entire amount is assigned: first to land, second to buildings, third to real property machinery and equipment and last to personal property.

(c)

The remainder of the real market value shall be exempt from taxation for a period of 15 years from the beginning of the tax year after the earliest of the following dates:

(A)

The date the property is certified for occupancy or, if no certificate of occupancy is issued, the date the property is used to produce a product for sale; or

(B)

The expiration of the exemption for commercial facilities under construction under ORS 307.330 (Commercial facilities under construction).

(3)

If the real market value of the property falls below the value determined under subsection (2)(a) of this section, the owner or lessee shall pay taxes only on the assessed value of the property.

(4)

Notwithstanding subsection (1) of this section, real or personal property that has received an exemption under ORS 285C.175 (Enterprise zone exemption) may not be assessed under this section.

(5)

The Department of Revenue may adopt rules and prescribe forms that the department determines are necessary for administration of this section.

(6)

The determination by the Oregon Business Development Commission that a project is an eligible project that may receive a tax exemption under this section shall be conclusive, so long as the property included in the eligible project is constructed and installed in accordance with the application approved by the commission.

(7)

Notwithstanding subsection (1) of this section, if the owner or lessee of property exempt under this section fails to pay the fee required under ORS 285C.609 (Request by county) (4)(b) by the end of the tax year in which it is due, the exemption shall be revoked and the property shall be fully taxable for the following tax year and for each subsequent tax year for which the fee remains unpaid. If an unpaid fee is paid after the exemption is revoked, the property shall again be eligible for the exemption provided under this section, beginning with the tax year after the payment is made. Reinstatement of the exemption under this subsection shall not extend the 15-year exemption period provided for in subsection (2)(c) of this section. [1993 c.737 §5; 1995 c.698 §8; 1997 c.325 §19; 1997 c.541 §412; 2003 c.662 §12; 2017 c.490 §1]
Note: Section 2, chapter 490, Oregon Laws 2017, provides:
Sec. 2. The amendments to ORS 307.123 (Property of strategic investment program eligible projects) by section 1 of this 2017 Act apply to projects first determined by the Oregon Business Development Commission to be eligible projects under ORS 285C.600 (Definitions for ORS 285C.600 to 285C.635) to 285C.635 (Determination of personal income tax revenue) on or after the effective date of this 2017 Act [October 6, 2017]. [2017 c.490 §2]

Atty. Gen. Opinions

Effect of expiration of key industry exemption under Article XI, sections 11 and 11a of Oregon Constitution, (1997) Vol 49, p 6

Chapter 307

Atty. Gen. Opinions

Validity of ad valorem and severance taxation of logs destined for export, (1975) Vol 37, p 427; application of Article XI, section 11b of Oregon Constitution to this chapter, (1990) Vol 46, p 388

Law Review Citations

5 EL 516 (1975)


Source

Last accessed
Jun. 26, 2021