2017 ORS 308.677¹
Exemption for property of company that builds and operates qualified communication services project
  • application to Public Utility Commission
  • computation of exemption
  • exclusivity

(1) Subject to ORS 308.673 (Exemption grantable under ORS 308.674 or 308.677 but not both), the property of a company described in ORS 308.515 (Department to make annual assessment of designated utilities and companies) (1) shall be granted an exemption under subsection (5) of this section if the company builds, maintains and operates a qualified project in Oregon.

(2) A project is qualified under this section if:

(a) The project requires capital investment in newly constructed or installed real or tangible personal property constituting infrastructure that enables the company to offer communication services, including the capacity to provide, at least, approximately one gigabit per second symmetrical service, to a majority of the residential customers of the company’s broadband services; and

(b) With respect to communication services offered by the company using the infrastructure, the company does not deny access to the communication services to any group of residential customers because of the income level of the residential customers in the local service area in which the residential customers reside.

(3)(a) A company seeking the exemption granted under this section must submit an application to the Public Utility Commission, with a copy to the Department of Revenue, on or before January 15 preceding the first property tax year for which the exemption is sought.

(b) The application must include:

(A) A certification that the project meets the requirements of subsection (2) of this section; and

(B) An application fee of $50,000.

(c) The application fee shall be distributed evenly to the commission and the department to reimburse the commission for the costs of reviewing the application and the department for the costs of appraising the property of the company submitting the application.

(4)(a) On or before March 1 of the year in which the application is submitted under subsection (3) of this section, the commission shall determine whether the project is a qualified project.

(b) During the period in which the commission is making a determination under this subsection:

(A) The commission may discuss the information included in the application with the company and the department;

(B) The commission shall consult with any city with which the company has entered into a franchise fee agreement to provide services to which the application relates;

(C) The company may amend the application; and

(D) Upon request of the company, the commission may grant an extension of not more than two weeks for a determination under this subsection.

(c) If the commission determines that the project is not a qualified project, the application may not be approved. The commission shall notify the company of the negative determination and state the reasons.

(d) If the commission determines that the project is a qualified project:

(A) The application shall be approved.

(B) The commission shall notify the company, the department and the assessor of each county in which the project is located of the approval.

(C) Subject to ORS 308.673 (Exemption grantable under ORS 308.674 or 308.677 but not both), the property of the company shall be granted the exemption under subsection (5) of this section beginning with the first property tax year that begins after the date of the determination.

(5)(a) The property of a company described in subsection (1) of this section shall be granted an exemption for a property tax year in an amount equal to the positive value, if any, obtained by subtracting from the real market value of the company’s real property and tangible and intangible personal property, including property that would otherwise be assessed under ORS 308.519 (Local assessment of data center property), that is allocated to Oregon and included in the unit subject to central assessment, reduced by the portion of the value of any exemption elected under ORS 308.671 (Elective exemption of certain communication-related property) that is allocated to Oregon, an amount equal to the greater of $250 million or the real market value of the company’s real and tangible personal property located in Oregon as of the assessment date, without reduction for any exemption elected under ORS 308.671 (Elective exemption of certain communication-related property).

(b) The exemption shall be granted for the period during which an owner maintains and operates the qualified project.

(6) If the amount determined under subsection (5)(a) of this section is not positive, subject to ORS 308.673 (Exemption grantable under ORS 308.674 or 308.677 but not both), the real market value of the company’s real property and tangible and intangible personal property, excluding property that is assessed under ORS 308.519 (Local assessment of data center property), allocated to Oregon and included in the unit subject to central assessment, reduced by the portion of the value of any exemption elected under ORS 308.671 (Elective exemption of certain communication-related property) that is allocated to Oregon, shall be the real market value of the company’s property allocated to Oregon for the property tax year.

(7)(a) If the property of a company is granted an exemption under this section for a property tax year, the property is not eligible for any other exemption from ad valorem property taxation for the property tax year.

(b) Notwithstanding paragraph (a) of this subsection:

(A) An exemption granted under ORS 308.671 (Elective exemption of certain communication-related property) to property that is granted an exemption under this section shall be allowed in the manner provided under this section and ORS 308.671 (Elective exemption of certain communication-related property).

(B) An exemption granted under this section for a property tax year has no effect on the benefits that the property of the company or the company may be granted under ORS chapter 285C or ORS 307.123 (Property of strategic investment program eligible projects) for the property tax year. [2015 c.23 §5; 2015 c.31 §7]

Chapter 308

Notes of Decisions

Programs administered by Depart­ment of Revenue that allow preferential assess­ment for farm and forestland are not “programs affecting land use” and are not subject to require­ment of statewide goal and local comprehensive plan compliance under ORS 197.180 (State agency planning responsibilities). Springer v. LCDC, 111 Or App 262, 826 P2d 54 (1992), Sup Ct review denied

Atty. Gen. Opinions

Applica­tion of Article XI, sec­tion 11b of Oregon Constitu­tion to this chapter, (1990) Vol 46, p 388

Law Review Cita­tions

5 EL 516 (1975)

1 Legislative Counsel Committee, CHAPTER 308—Assessment of Property for Taxation, https://­www.­oregonlegislature.­gov/­bills_laws/­ors/­ors308.­html (2017) (last ac­cessed Mar. 30, 2018).
 
2 Legislative Counsel Committee, Annotations to the Oregon Revised Stat­utes, Cumulative Supplement - 2017, Chapter 308, https://­www.­oregonlegislature.­gov/­bills_laws/­ors/­ano308.­html (2017) (last ac­cessed Mar. 30, 2018).
 
3 OregonLaws.org assembles these lists by analyzing references between Sections. Each listed item refers back to the current Section in its own text. The result reveals relationships in the code that may not have otherwise been apparent.