OAR 123-680-1400: Limitation of Exempt Real Market Value

Under ORS 285C.353(4), each RREDZ designation has a cap on the total value in qualified property allowed, which is cumulatively exhausted with each exempt project over the life of the designation: (1) Such value is the property’s real market value (RMV) on the assessment date of the first year that the authorized business firm may claim the exemption, not the amount exempted each year. (2) The zone sponsor shall coordinate with the county assessor to track the amount of this limitation that former/ongoing exemptions have used and the remaining, unused portion. (If the assessor later disqualifies affected property and collects the property taxes back, then the initial RMV of the disqualified property increases the unused portion for future use in the same RREDZ) (3) The exemption limitation described in this rule equals the amount specified in the resolution(s) adopted by the city, county or counties in applying for the RREDZ, and any such specified amount must be: (a) Less than or equal to the maximum permitted under ORS 285C.353(4)(d); (b) Evenly divisible by $5 million; and (c) Greater than the unused portion of the previous RREDZ’s exemption limitation with a subsequent additional RREDZ as described in OAR 123-680-1200(4). (4) If any such resolution fails to specify an exemption limitation for the RREDZ, or if two or more such resolutions comprising a joint application disagree as to the amount, then the limitation for that RREDZ defaults to the maximum permitted. (5)(a) If new qualified property of an authorized business firm first subject to exemption in a single year will exhaust the exemption limitation, then the exemption or exemptions are allowed only up to the point at which the property’s RMV equals the unused portion; and (b) In the case of two or more such firms subject to simultaneous exemptions, the assessor shall pro-rate the unused portion among them commensurate with the total value of each one’s applicable qualified property.