Construction-in-process (CIP) property tax exemption applications for the state of Oregon are due by April 1, 2021.
Organizations in the state with new buildings or structures under construction as of January 1, 2021, could miss out on a year of tax relief if they file late. It’s important to note that no filing extensions are allowed.
How the Oregon CIP Tax Exemption Works
Oregon provides a CIP property tax exemption for qualifying property for up to two years, with the exception of centrally assessed utility property.
What Defines Qualifying Property
The CIP exemption is allowed if, as of January 1, 2021, a building or structure:
- Is in the process of construction
- Isn’t in use or occupancy
- Hasn’t been in use or occupancy at any time before January 1, 2021
- Is being constructed for income production
In the case of nonmanufacturing facilities, a building or structure is allowed the exemption if it’s going to be first used or occupied more than one year from the time construction commences.
If the property qualifies, the CIP 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
If You Missed the Previous Deadline
Even organizations that missed the April 1, 2020, deadline for the 2020–2021 property tax year should still consider applying for the CIP exemption if their construction project has continued past January 1, 2021, and otherwise meets the qualifying criteria. They can still apply before April 1, 2021, and could claim an exemption for the 2020–2021 property tax year.
To Qualify for an Exemption
Form OR-AP-CACFC, Application for Cancellation of Assessment on Commercial Facilities Under Construction, must be filed with the county assessor on or before April 1, 2021.
We’re Here to Help
For more information or for help determining if your locations will qualify your organization for the Oregon CIP property tax exemption, contact your Moss Adams professional or email statetax@mossadams.com.