Current through Register Vol. 63, No. 9, September 1, 2024
For purposes of real property in an enterprise zone to be
exempt under ORS 285C.170 or
285C.175:
(1) The following do not qualify, unless the
cost of all such property collectively in a single property schedule under ORS
285C.225 equals or exceeds
$50,000 in total:
(a) New construction of or
additions, modifications or improvements to a building or structure;
or
(b) Real property machinery
& equipment as newly installed or as modified according to section (5) of
this rule.
(2)
(a) Qualified property, including but not
limited to a building or structure, is severable under ORS
285C.180(5),
such that:
(A) A part of the building or
structure may be exempt, even if another part of the same building or structure
is owned or leased by a different business firm, used for ineligible
activities, or otherwise not subject to the same exemption; and
(B) The amount of property value that is
exempt shall be determined through pro rata calculation based on floor area or
other reasonable method, as preferably considered with the Preauthorization
Conference, and verified by the zone sponsor as necessary.
(b) Such severability does not pertain to
timely Application under ORS
285C.140(1);
for example, later construction of portions of a building may not qualify if
any such work began before submission of the Application, although subsequent
installation of machinery & equipment in general may.
(3) Landscaping or comparable elements may
qualify, for example, at a golf course in the case of a hotel, motel or
destination resort under ORS
285C.185(4), if
classified by the county assessor as structural improvements rather than
enhancements to the land.
(4) The
exemption on qualified additions, modifications, reconditioning, refurbishment,
retrofits or upgrades under ORS
285C.175(3)(b)
is measured in each year by:
(a) Computing
the assessed value of such taxable property (lesser of real market value or
maximum assessed value in each case):
(A)
With such qualified improvements or changes; and
(B) As if such qualified improvements or
changes had not happened (that is, the assessed value that would have been
subject to taxation) but accounting for other concurrent changes to the
property.
(b) Taking the
difference between the values described in paragraphs (a)(A) and (a)(B) of this
section, such that any negative difference equates to zero.
(5) Modifications to an item of
machinery & equipment qualify under ORS
285C.190 only if it is real
property, and all of the following are true:
(a) Descriptions in the Application
(including as amended) recognize such modifications as a basic property
type;
(b) On the date of
Application the property was idle or not in use;
(c) That period of idleness already has or
ultimately does encompasses 18 or more consecutive months;
(d) Previously, the item had been in actual
use for 12 or more consecutive months in the same county or zone as where it is
placed back into service;
(e) Work
to modify the item commenced on or after the date of Application and the
enterprise zone's designation or amendment;
(f) The total cost of modification equals
$50,000 or more; and
(g) It is
placed back into service no more than 12 months before the first exemption year
pursuant to modifications.
Statutory/Other Authority: ORS
285A.075 &
285C.060(1)
Statutes/Other Implemented: ORS
285C.175,
285C.180,
285C.185 &
285C.190
