Food Safety

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:

  • Blanchers 
  • Peelers 
  • Freezers 
  • Dicers 
  • Conveyors 
  • Huskers 
  • Sorting equipment

There are special requirements to claim an exemption for qualified property:

  • For property first put into service during the calendar year of 2013, 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 2013 will be due on or before February 28, 2014. Submissions for machinery and equipment certification after February 28, 2014 will result in a late fee. 
  • The tax exemption program will continue until 2020.

Procedures and forms

  1. 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.
  2. 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.
  3. Fax or mail the completed ODA certification request form along with the DOR exemption forms to the ODA Food Safety Program.
  4. 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.
  5. 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.​

​Resources

Certification of Machinery Equipment for Property Tax Exemption Form

Document

Department of Revenue: Food Processors Exemption Claim

Website

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

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​Contact

Main Office
Food Safety
635 Capitol St NE
Salem, OR 97301
Phone: 503-986-4720