Current through Register Vol. 61, No. 4, April 1, 2022
Conditions. Property owned by a mutual or cooperative telephone association is
qualified for exemption if all the following conditions are satisfied:
Ownership. The property must be owned by
an association of persons that:
mutual or cooperative in character, whether incorporated or not. The
characteristics of a mutual or cooperative association are:
(i) Each incorporated association is
organized as a cooperative association or, if organized as a nonprofit
organization, its bylaws provide that it operate as a cooperative association.
(ii) Each unincorporated
association provides in its bylaws that the association is mutual or
cooperative in character and is not to produce profit.
(iii) While one member may hold more stock or
shares in the association than another member, voting cannot be based on
ownership of shares, stock, certificates, or other evidence of their interest.
Voting must be restricted to one vote to a member, or in proportion to their
actual, estimated or potential patronage, as the bylaws may provide, except
that in no event may any one member thereby exercise a majority vote.
(iv) All members must share
proportionately, according to their evidence of interest, in the cost of
construction, maintenance, and operation of the association's properties, and
in the division of any surplus or reserves accumulated when such a surplus or
reserve is not necessary for proper maintenance or construction of such system
or all members must share in proportion to their patronage as the bylaws may
without profit in money.
no business or purpose other than the provision of telephone communications
(b) Use. All
persons served must be members and must own shares, stock, certificates, or
other evidence of their interest.
(c) Value. The association's telephone
property has a real market value of not more than $2,500 as determined by the
Department of Revenue.
Operation. The association's telephone communication system operation is
conducted without the ownership, operation or lease of telephonic switchboard
exchange facilities, or direct or indirect ownership of stock in any telephone
switchboard association, partnership or corporation.
Eligible Property. Property that may
qualify for exemption includes all property consisting of improvements,
fixtures, equipment and supplies used exclusively in the construction,
maintenance, and operation of a telephone communication system. Examples of
property that may qualify for exemption include but are not restricted to:
(a) Poles, crossarms, guy stubs and guy wire;
(b) Aerial wire;
(c) Aerial or underground cable;
(d) Suspension strand;
(g) Drop and blockwire;
Ineligible Property. The following types
of property that cannot qualify for exemption will be classified and assessed
pursuant to ORS 308.505
(a) Parcels of land and buildings owned,
leased, rented, chartered or otherwise held for or used by an association in a
telephone communication system.
(b) Any other property not owned by the
association but used or held by it in a telephone communication system.
(c) Any property owned, leased,
rented, chartered or otherwise held by an association and not used in providing
Admin. R. 150-307-0280
3-70; 11-71; REV 10-2002, f. & cert. ef. 12-31-02; Renumbered from
55-2016, f. 8-13-16, cert. ef.
Stat. Auth.: ORS
Stats. Implemented: ORS