Development and Marketing

Food processors exemption

The Oregon Legislature reinstated the property tax exemption in 2013 for certain types of property acquired and installed by Oregon food processors (ORS 307.453) by the passage of House Bill 2735. The program allows food processors to request a property tax exemption for qualified property machinery and equipment, and personal property. The tax exemption is 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. 

In 2015, House Bill 3125 amended the program to include grains, eggs, bakery products, and dairy products; and permitted the Oregon Department of Agriculture (ODA) to assess, fix, and collect, or cause to be collected, fees on food processors for the certification of qualified machinery and equipment for the purpose of identifying equipment eligible for the exemption. 

The following are examples of equipment and machinery that may qualify:

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

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

  • Submissions for machinery and equipment certification must be completed before the last day of February in any calendar year. Submissions after the last day of February will result in a late fee.  
  • For property first put into service during the calendar year of 2016, 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.

Procedures and forms

  1. ​​​Complete the required Department of Revenue (DOR) listing form(s), which can be found below under Resources. If you have any questions about applying for exemptions, contact DOR at 503-378-4988 or e-mail at questions.dor@state.or.us
  2. Print the completed Oregon Department of Agriculture (ODA) request for certification of machinery equipment form. Contact ODA with questions.
  3. Fax or mail the completed ODA certification request form(s) along with the DOR exemption form(s) to the ODA Agricultural Development & Marketing Program.
  4. An ODA Trade Development Manager will contact your firm to set up an appointment to visit your facility to conduct the certification of the machinery and equipment. At this time you will be informed of the estimated fee for the certification process.
    A representative from your firm who is familiar with the machinery and equipment on the list must be present to accompany ODA personnel through the plant and identify each piece of qualified machinery and equipment for exemption certification.
  5. After inspection, the ODA Trade Development Manager will leave the signed original certification(s) with your firm for you to submit to DOR. Make two copies for the ODA Agricultural Development & Marketing Program. 
  6. The ODA Trade Development Manager will generate a bill for the certification process. If you elect to pay through an invoicing system, please contact the ODA Accounts Receivable office at 503-986-4592. Upon payment, ODA will submit the completed forms to DOR. 
​​These fees are outlined in the Oregon Administrative Rules and in general include:
    • A standard application fee 
    • Charge of service 
    • Travel time 
    • Mileage 
    • And if applicable, lodging and per diem as per rates established by the Department of Administrative Services

​Resources

Assessment of Property for Taxation (ORS 308)

Property tax assessment law

Certification of Machinery Equipment for Property Tax Exemption Form

Equipment certification for property tax exemption form

Department of Revenue: Exemption Claim Form and Instructions

DOR exemption claim form

Department of Revenue: Leased Personal Property Form

DOR leased personal property form

Department of Revenue: Leased Real Property Form

DOR leased real property form

Department of Revenue: Owned Personal Property Form

DOR owned personal property form

Department of Revenue: Owned Real Property Form

DOR owned real property form

House Bill 3125: Exemption from property taxation for food processing equipment

House Bill 3125

Machinery and equipment certification FAQs

Frequently asked questions about machinery and equipment certification for tax exemption. FAQs about machinery and equipment certification

Oregon Food Processor Property Tax Exemption (OAR 150-307-0490)

Personal property valuation guidelines. Oregon food processor property tax exemption

Property Subject to Taxation; Exemptions (ORS 307)

Property subject to taxation exemptions

Property Tax Exemption for Qualified Machinery and Equipment (OAR 603-025-0151)

Property tax exemption for qualified machinery and equipment

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​Contact

Main Office - Portland
Agricultural Development & Marketing
1207 NW Naito Pkwy, Suite 104
Portland, OR 97209
Phone: 503-872-6600
Fax: 503-872-6601