Alert

Claim Oregon’s Construction-in-Process Property Tax Exemption by April 1, 2019

If your business has buildings or structures in the state of Oregon that are under construction as of January 1, 2019, you may qualify for a construction-in-process (CIP) property-tax exemption. 

Applications must be filed by April 1, 2019, for a business to qualify, and deadline extensions aren’t allowed. This means businesses risk missing a year of tax relief if they file late.

How to Claim the Exemption

Oregon provides a CIP property-tax exemption for qualifying property for up to two years, with the exception of centrally assessed utility property.

Qualifying Property

The CIP exemption is allowed if a building or structure meets the following criteria as of January 1, 2019:

  • It’s under construction
  • It isn’t in use or occupancy—meaning, for example, a certificate of occupancy hasn’t been issued
  • It hasn’t been in use or occupancy at any time prior to January 1, 2019
  • It’s being constructed for income production
Nonmanufacturing Facilities

In the case of nonmanufacturing facilities, a building or structure qualifies for the exemption if it’s first used or occupied more than one year after the time construction commences.

Machinery or Equipment

If the property qualifies for the CIP exemption, the exemption will also apply to machinery or equipment located at the construction site that is—or will be—installed or affixed to the building, structure, or addition.

Next Steps

To apply for an exemption for the 2019–2020 property tax year, companies must file the Form OR-AP-CACFC, Application for Cancellation of Assessment on Commercial Facilities Under Construction, with the county assessor on or before April 1, 2019.

Businesses that missed the April 2, 2018, deadline for the 2018–2019 property-tax year should still consider applying for the 2019–2020 CIP exemption if their construction project has continued past January 1, 2019, and meets the qualifying criteria.

We’re Here to Help

For more information or help determining if your organization qualifies for the Oregon CIP property tax exemption, contact your Moss Adams professional or email statetax@mossadams.com.