Oregon Business Development Department
Chapter 123
Division 674
STANDARD EXEMPTION ON TAXABLE ENTERPRISE ZONE PROPERTY
123-674-6100
Mandatory First-year Claim with Property Schedule
For purposes of an enterprise zone exemption on qualified property under ORS 285C.175:
(1) The authorized business firm:
(a) Must file the latest revision of the following Department of Revenue forms with the county assessor under ORS 285C.220 and 285C.225 to begin the exemption period:
(A) Form OR-EZ-EXCLM, 150-310-075, Oregon Enterprise Zone Exemption Claim; and
(B) FORM OR-EZ-PS, 150-310-076, Oregon Enterprise Zone Property Schedule (as an attachment that lists and identifies the property to be exempt);
(b) May do so only after December 31 of the year, in which the re/construction, modification or installation of qualified property is completed; and
(c) Shall send copies of the forms to the zone sponsor.
(2) The property must not have been in service at a location inside the zone before January 1 of the year directly prior to claiming the exemption as described in section (1) of this rule.
(3) Subsection (1)(b) of this rule is synonymous with qualified property having been ‘placed in service’ during that year, which:
(a) May be only a portion of the entire investment proposed with authorization; and
(b) Does not include property (even if physically operable or finished) that pending completion of the overall facility or investment is still:
(A) Incapable of effective use or occupancy due to commercial or regulatory reason consistent with OAR 123-674-5000(4); or
(B) Not yet intended for use or operation, subject to testing, shakedown or other general startup steps.
(4) Sections (1) to (3) of this rule dovetail and are mutually exclusive with criteria for exemption under ORS 285C.170, as described in OAR 123-674-6000.
(5) The filing as described in section (1) of this rule shall be due no later than the corresponding April 1, but:
(a) By June 1, the authorized business firm may submit it with a late fee under ORS 285C.220(7) or amend a timely filed property schedule form under ORS 285C.225(5); or
(b) On or before April 1 (but after January 1) of the next year, the authorized business firm may file very late under ORS 285C.220(10) without a fee to receive the remainder of an exemption minus the first year, provided the firm was in compliance with all applicable requirements in order for the exemption to have been in effect during that first year.
(6) The county assessor may deny the exemption under ORS 285C.175(6) if unable to obtain critical and reasonably requested clarification, confirmation or substantiation of information missing from or supplemental to the filed forms from the:
(a) Firm under ORS 285C.220(3); or
(b) Zone sponsor under ORS 285C.230, or as arranged with the Preauthorization Conference.
(7) The county assessor shall deny the exemption:
(a) To any authorized business firm with inactive status, as described in OAR 123-674-3700, if the filing does not include the fee under ORS 285C.165(3), which would be in addition to the fee, if any, in subsection (5)(a) of this rule.
(b) On any property that is not actually in use or occupancy between January 1 and June 30 of the first year that the exemption is claimed, notwithstanding its being in service by January 1 or even in use or occupancy during that preceding year.
Statutory/Other Authority: ORS 285A.075 & 285C.060(1)
Statutes/Other Implemented: ORS 285C.165, 285C.170, 285C.175, 285C.220, 285C.225 & 285C.230
History:
OBDD 7-2017, amend filed 11/29/2017, effective 11/29/2017
OBDD 14-2016, f. & cert. ef. 9-16-16
OBDD 27-2010, f. & cert. ef. 6-14-10