Food processors exemption
The 2013 Oregon Legislature reinstated the property tax exemption for certain types of property acquired and installed by Oregon food processors (ORS 307.453). Under 2013 HB 2735, the Oregon Legislative Assembly allows food processors to declare a property tax exemption for qualified real property machinery and equipment, and personal property. The bill provides this tax exemption for food processors engaged in the business of processing, repacking, freezing, canning, dehydrating, concentrating, or preserving raw or fresh fruit, vegetables, nuts, legumes, or seafood for human consumption before the point of the first sale by the processor.
The following, are examples of equipment and machinery that may qualify:
- Sorting equipment
- Filling equipment
There are special requirements to claim an exemption for qualified property:
- For property first put into service during the calendar year of 2014, the filing process for claiming exemption will require filing the completed exemption claim with the county assessor or the Department of Revenue, whichever appraises the property.
- Such claims for equipment installed in 2014 will be due on or before February 28, 2015. Submissions for machinery and equipment certification after February 28, 2015 will result in a late fee.
- The tax exemption program will continue until 2020.
Procedures and forms
- Complete the required Department of Revenue (DOR) listing forms, which can be found on the DOR website. If you have questions about applying for exemptions, contact DOR.
- Print the completed Oregon Department of Agriculture (ODA) request for certification of machinery and equipment for property tax exemption form. If you have questions about this form, contact ODA.
- Fax or mail the completed ODA certification request form along with the DOR exemption forms to the ODA Food Safety Program.
- ODA will contact your firm to set up an appointment to visit your facility and inspect the machinery and equipment. A representative from your firm who is familiar with the machinery and equipment must be present to accompany ODA and identify each piece of qualified machinery and equipment for exemption certification.
- After inspection, the ODA Food Safety Specialist will leave signed original certification with your firm for you to submit to DOR. You also will make two copies for the ODA Food Safety Program.
Certification of Machinery Equipment for Property Tax Exemption Form
Department of Revenue: Food Processors Exemption Claim
House Bill 2735: Exemption from property taxation for food processing equipment
Law or rule
Machinery and equipment certification FAQs
Frequently asked questions about machinery and equipment certification for tax exemption. Document
Property Subject to Taxation; Exemptions - ORS 307
Law or rule