Current through Register Vol. 63, No. 9, September 1, 2024
For purposes of the required minimum investment under ORS
285C.412(1)(a), (2)(a), (3)(a), (4)(b) or
(5)(a) in property that is owned or leased by
a certified business firm and located at the Facility Site:
(1) Subject to section (2) of this rule, the
following costs count toward the minimum investment:
(a) Construction, reconstruction,
modification, refurbishing, reconditioning, retrofitting, upgrading and
installations that commence after the application for certification, including
but not limited to the costs of materials, supplies, labor, building
contractors, engineering, physical connections to utilities, on-site
development or site preparation; or
(b) Property acquired or moved to the
Facility Site after the application for certification. (Current fair market
value substitutes for price if the property is not subject to a recent
transaction, such as leased or newly transferred property in certain
cases)
(2) Costs due to
activities or actions described in section (1) of this rule count toward the
minimum investment only if incurred for:
(a)
The following types of property or change in property value, which would be
subject to exemption under ORS
285C.409:
(A) One or more newly constructed buildings
or structures;
(B) Additions or
modifications to any previously constructed or occupied building or structure;
and
(C) Newly installed or newly
upgraded, reconditioned, refurbished or retrofitted real property machinery
& equipment or personal property, whether or not it is inside or on a
building or structure described in this subsection, including non-inventory
supplies, spare parts or otherwise taxable vehicles operated within the
confines of the Facility Site.
(b) Land, improvements to the land, or the
existing value of any property already at the Facility Site, notwithstanding
that under ORS 285C.409(5) no
such property is subject to exemption.
(c) Property leased by the firm and described
in subsection (a) or (b) of this section, although property or property value
described in subsection (a) of this section may be exempt only if the firm is
fully responsible for any ad valorem tax through explicit
provisions of a lease agreement.
(d) Any whole category of property as
otherwise described in subsection (a) or (c) of this section, even though the
certified business firm, in first claiming an exemption under ORS
285C.409(1)(a) or
(c), formally and irreversibly elects to
exclude it from any further exemption, including but not limited to an
exclusion made pursuant to the agreement under ORS
285C.403(3)(c)
with the zone sponsor.
(3) Regardless of their association with the
Facility Site or exemption under ORS
285C.409, the following do not
count toward the minimum investment:
(a) Cost
of financing (including but not limited to debt service), legal fees (except as
necessary in obtaining government permission for facility development), ongoing
management and maintenance, or similar (non-capital) expenses;
(b) Cost or value of property that at the
time of the application for certification is already owned or leased by the
firm and located at the Facility Site;
(c) Cost or value of inventory, including but
not limited to raw materials or work in progress; or
(d) Any vehicle or device pulled, pushed or
carried by a vehicle that is designed to hold and transport people, goods or
property beyond the Facility Site, including but not limited to aircraft,
barges, carriages, railcars, trailers, trucks or ships (which are also not
exemptible in any case); or
(e)
Expenses associated with activities or actions described in section (1) of this
rule that are incurred only after the calendar year in which exempt facility
property is first placed in service, although the property associated with
those activities or actions may be exempt for the remainder of the period under
ORS 285C.409(1)(c).
(4) The firm shall provide notice
to the assessor in writing as soon as possible after satisfaction of this
requirement is verifiable, to be documented through existing project expense
records or retrospective compilation of evidence as necessary or
appropriate.
(5) In determining
'real market value of all nonexempt taxable property in the county,' as used in
ORS 285C.412, the Department shall
rely on the most recently available fiscal year of Oregon Property Tax
Statistics (150-303-405) from the Department of Revenue at the time of
certification.
Statutory/Other Authority: ORS
285A.075
Statutes/Other Implemented: ORS
285C.412 &
285C.415
