Current through Register Vol. 63, No. 9, September 1, 2024
(1) Definitions for
purposes of this rule:
(a) "Industrial
property" means a facility or property engaged in manufacturing or processing
which includes, but is not limited to sawmills, plywood and veneer plants,
paper and pulp mills, food processing facilities, bakeries, flour mills,
chemical processing operations refineries, breweries, wineries bottling
operations, machine shops, metal rolling mills, metal fabrication facilities,
smelters, printing and publishing operations, seed processing operations,
permanent sand and gravel operations, and electronic and high technology
manufacturing operations.
(b)
"State-appraised industrial property" means industrial property that had real
market value for improvements of more than $1 million for the preceding year
and whose appraisal responsibility has not been delegated by the department to
the county.
(c) "Improvements" or
"real property improvements", for determining responsibility for property of
more than $1 million, means improvements erected upon, above or affixed to the
land but not the land itself. Improvements include, but are not limited to:
yard improvements, buildings, structures, and real property machinery and
equipment. Improvements do not include site development and personal property.
(A) "Yard improvements" include but are not
limited to on-site: paving, exterior lighting, log ponds, underground fire
systems, fences, access roads and roadways and railroad sidings.
(B) "Site developments" are defined in OAR
150-307.010(1).
(d)
"Integrated" and "integral" means directly involved in the production of a new
product.
(e) "Processing" means
the treatment of materials to produce a new product.
(f) "Unit of industrial property" means, for
appraisal purposes, a single facility or an integrated complex currently
engaged in manufacturing or processing operations and may include one or more
accounts.
(2) The
purpose of this rule is to determine the responsibility for the appraisal of
industrial property between the Oregon Department of Revenue and the thirty-six
Oregon county assessors' offices. Property classification for all purposes
other than assigning appraisal responsibility is determined by OAR
150-308.215(1)-(A).
(3) The
department is responsible for the appraisal of industrial property that meets
the definition of "state-appraised industrial property". The county is
responsible for the appraisal of all land, including that for state
responsibility industrial accounts.
(4) Property other than industrial property
that is at the same location as the manufacturing or processing operation may
be appraised as part of the unit of industrial property.
(5) The procedure for determining the
appraisal responsibility for industrial property is as follows:
(a) On or before August 1 of each year, the
department will provide each county a list of all industrial property accounts
within their jurisdiction for which the state was responsible for appraising in
the preceding year. The list will include the owner's name, the account number,
and the real market value.
(b) The
county will review the list, and all other industrial property accounts, to
determine if there are any units of industrial property that have moved above
or below the $1 million threshold.
(A) Units
of industrial property that have gone below the threshold will be placed on a
list to be transferred to the county.
(B) Units of industrial property that have
gone above the threshold will be placed on a list to be transferred to the
department.
(C) Construction of a
new industrial facility that will result in a real market value of more than $1
million for the real property improvements will be placed on a list of
properties recommended for transfer to the department. If construction has
begun or is expected to begin by January 1 of the current tax year it will also
be placed on the list to be transferred.
(c) By October 1, the county will submit a
list of accounts recommended to become state responsibility.
(d) By November 15, the department will make
a final determination of appraisal responsibility for all industrial property
and provide this information to the county.
(6) For state-appraised industrial property
in which the real property improvements are not all at the same location, the
department and the county will evaluate each account to determine if the
account should be appraised by the department. The criteria that will be used
are:
(a) The combined value of the real
property improvements from all locations is more than $1 million, and
(b) The real property improvements
are integral to the same manufacturing or processing operation.
(7) The party that valued the
property will be responsible for defending any appeals. In all cases, the
county is responsible for the defense of the land valuation.
(8) The department may return to the county
the appraisal responsibility for any property that no longer qualifies as state
responsibility industrial property. The department will forward to the county a
copy of all appraisal material on file at the department and a copy of all
industrial property returns filed by the taxpayer.
(9) This rule is effective January 1,
2016.
Stat. Auth.: ORS
305.100,
306.126
Stats. Implemented: ORS
306.126
