Current through Register Vol. 63, No. 9, September 1, 2024
For purposes of enterprise zone property to be exempt under ORS
285C.170 or
285C.175:
(1) Real property machinery & equipment
or personal property may qualify despite prior usage outside the zone, such
that the exempt value is based on the usual factors of appraisal, such as age,
deterioration and obsolescence, as well as any reconditioning, refurbishment or
restoration.
(2) Except in the case
of OAR 123-674-5300(5):
(a) Personal property or real property
machinery & equipment must be:
(A) Newly
owned or leased by the authorized business firm; or
(B) Newly brought into the county containing
the site of the property inside the zone.
(b) For purposes of this section, "newly"
means that the property is not both acquired by the firm and located in the
county before the earlier of:
(A) Six months
prior to Application; or
(B)
January 1 of the year preceding its first exemption year under ORS
285C.175.
(c) Newly acquired or relocated property that
conforms to this section might even be used in the county outside the
enterprise zone, before it is placed in service and subsequently exempted in
the zone, subject to compliance with other applicable provisions, and provided
that it is not subsequently assessed at any location outside the
zone.
(3) An item of
personal property with a cost of less than $50,000 qualifies for the exemption
only if used:
(a) Exclusively in the
production of tangible goods, which by itself will usually preclude furniture
or decorations and most communication, office, video or comparable
devices;
(b) In electronic commerce
within a so-designated area as described in OAR 123-662; or
(c) In North Plains for semiconductor-related
operations described in OAR
123-662-1200(3)(b)(B).
(4) Subsection (3)(a) of this rule
with respect to tangible goods production also covers personal property items
of machinery & equipment:
(a) Even if the
tangible good in question is not actually created or manufactured from raw
inputs, but is instead modified, processed, restored, repaired, measured,
sized, imprinted, packaged, conveyed, shipped or comparably affected in a
physical manner.
(b) That maintain,
calibrate, adjust, monitor, test or fix qualified property directly involved
with tangible output or production, or that assure quality control of tangible
output or production, including but not limited to research and development
equipment incorporated into production activities.
(5) For purposes of qualification, the
following are equivalent to newly installing personal property or real property
machinery & equipment after making Application:
(a) Connection or attachment to existing
machinery & equipment of an item that is separately assessed in its own
right; or
(b) Comprehensive
rebuilding in place of what effectively constitutes a new item for valuation or
assessment as distinct from modification.
(6) Regardless of any other provision of this
division of administrative rules, the following property does not qualify for
the exemption:
(a) Land or improvements
to raw land, such as site preparation.
(b) Any item of personal property with a cost
of less than $1,000.
(c) Fuel,
lubricants and other non-inventory supplies.
(d) Any machinery, equipment or device that
can roam freely by its own motive power under the control of an
operator/driver, including but not limited to forklifts.
(e) Any other similarly self-propelled
motorized vehicle, including by remote control.
(f) Any device or item that is pulled, pushed
or carried by a vehicle and designed to hold and transport people, goods or
property on highways, waterways or railways beyond the zone boundaries,
including but not limited to trailers, rolling stock, barges, carriages or
railroad cars.
Statutory/Other Authority: ORS
285A.075 &
285C.060(1)
Statutes/Other Implemented: ORS
285C.180,
285C.185 &
285C.190
