Article
Claim Oregon’s construction-in-process property tax exemption by April 1, 2021
March 18, 2021 · Authored by Rob O'Neill
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 Jan. 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 Jan. 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 Jan. 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 Jan. 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 Oregon-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.
The information provided here is of a general nature and is not intended to address the specific circumstances of any individual or entity. In specific circumstances, the services of a professional should be sought. Tax information, if any, contained in this communication was not intended or written to be used by any person for the purpose of avoiding penalties, nor should such information be construed as an opinion upon which any person may rely. The intended recipients of this communication and any attachments are not subject to any limitation on the disclosure of the tax treatment or tax structure of any transaction or matter that is the subject of this communication and any attachments.