(1) Except as provided in subsection (4) of this section, real or personal property that the Oregon Business Development Commission, acting pursuant to ORS § 285C.606, has determined is an eligible project under ORS § 285C.600 to 285C.635 shall be subject to assessment and taxation as provided in this section.

(2)(a) The following portions of the real market value of the eligible project, increased annually for growth at the rate of three percent, shall be taxable at the taxable portion’s assessed value under ORS § 308.146:

(A) $100 million, adjusted annually for inflation since 2024 based on the Consumer Price Index for All Urban Consumers, West Region (All Items), as published by the Bureau of Labor Statistics of the United States Department of Labor, and rounded to the nearest multiple of $100,000; or

(B) If the project is located in a rural area as defined in ORS § 285C.600:

(i) $40 million for a project with a total cost of not more than $500 million.

(ii) $75 million for a project with a total cost of more than $500 million and not more than $1 billion.

(iii) $150 million for a project with a total cost of more than $1 billion.

(b) The taxable portion of real market value, as adjusted, shall be allocated as follows until the entire amount is assigned: first to land, second to buildings, third to real property machinery and equipment and last to personal property.

(c) The remainder of the real market value shall be exempt from taxation for a period of 15 years from the beginning of the tax year after the earliest of the following dates:

(A) The date the property is certified for occupancy or, if no certificate of occupancy is issued, the date the property is used to produce a product for sale; or

(B) The expiration of the exemption for commercial facilities under construction under ORS § 307.330.

(3) If the real market value of the property falls below the value determined under subsection (2)(a) of this section, the owner or lessee shall pay taxes only on the assessed value of the property.

(4) Notwithstanding subsection (1) of this section, real or personal property that has received an exemption under ORS § 285C.175 may not be assessed under this section.

(5) The Department of Revenue may adopt rules and prescribe forms that the department determines are necessary for administration of this section.

(6) The determination by the Oregon Business Development Commission that a project is an eligible project that may receive a tax exemption under this section shall be conclusive, so long as the property included in the eligible project is constructed and installed in accordance with the application approved by the commission.

(7) Notwithstanding subsection (1) of this section, if the owner or lessee of property exempt under this section fails to pay the fee required under ORS § 285C.609 (4)(b) by the end of the tax year in which it is due, the exemption shall be revoked and the property shall be fully taxable for the following tax year and for each subsequent tax year for which the fee remains unpaid. If an unpaid fee is paid after the exemption is revoked, the property shall again be eligible for the exemption provided under this section, beginning with the tax year after the payment is made. Reinstatement of the exemption under this subsection shall not extend the 15-year exemption period provided for in subsection (2)(c) of this section. [1993 c.737 § 5; 1995 c.698 § 8; 1997 c.325 § 19; 1997 c.541 § 412; 2003 c.662 § 12; 2017 c.490 § 1; 2023 c.298 § 39]

Section 41 (3), chapter 298, Oregon Laws 2023, provides:

(3) The amendments to ORS § 307.123 by section 39 of this 2023 Act apply to property determined to be an eligible project on or after the effective date of this 2023 Act [September 24, 2023] for property tax years beginning on or after July 1, 2024. [2022 c.298 § 41(3)]