Or. Admin. Code § 123-690-4000 - FACILITY CRITERIA - Minimum Investment Size

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.

Notes

Or. Admin. Code § 123-690-4000

OBDD 29-2010, f. & cert. ef. 6-14-10; OBDD 11-2015, f. & cert. ef. 10/5/2015; OBDD 5-2017, amend filed 11/29/2017, effective 11/29/2017; OBDD 10-2023, amend filed 07/05/2023, effective 7/5/2023

Statutory/Other Authority: ORS 285A.075

Statutes/Other Implemented: ORS 285C.412 & 285C.415