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Department of Revenue: Property Tax

HB 2563


 Bill Number HB 2563 (2011 Oregon laws, chapter 656)
 ORSs Changed 307.175; 2005 Laws Ch. 637, sec. 7; and 1999 Laws Ch. 957, sec. 4 and 7.
 Effective Date September 28, 2011
 Applies to Food processing equipment, alternative energy systems, and logging equipment exemptions.
 DOR Contact Michael Olson  503-428-2319;  Greg Kramer  503-945-8262
 Summary Allows another two years for property to enter the food processing equipment exemption program. Modifies and extends the exemption for "alternative energy systems" and the property to which it is affixed. Removes the sunset date on logging equipment exemptions.
   

 
Section Old law  New law
1 2005 Laws Ch. 637, s. 7: The last tax year to obtain an initial year of exemption for food processing equipment was 2010-11.
 2005 Laws Ch. 637, s. 7: The last tax year to obtain an initial year of exemption for food processing equipment extended to 2012-13.
2 No provision.
 New provision: Application for a first year of exemption for the 2011-12 tax year must be filed with DOR by December 31, 2011. The application must include the Dept. of Agriculture certification and other information, and be accompanied by the late filing fee.

If exemption due to this application causes a need for refund of the tax and any interest paid, refund amount will be paid out of the county unsegregated or refund reserve account without refund interest.
3 ORS 307.175: Exempted the increase in real market value of property equipped with an alternative energy system as compared to the property before the installation of the alternative energy system from ad valorem taxation.

Did not apply to centrally assessed companies unless there was a net metering system.

Applied to tax years beginning before July 1, 2012.
 ORS 307.175: Amended to exempt the alternative energy system itself if it is a net metering system or is designed to primarily offset onsite electricity use.

If a qualifying exempt alternative energy system is placed on property that otherwise would be exempt, then it remains exempt despite that it otherwise would have become taxable (e.g., church property leased to the company that operates the alternative energy system).

Property equipped with an alternative energy system is exempt in an amount equal to the increase in real market value due to the addition of the system. This increase is calculated by comparing the real market value before the alternative energy system is installed to the real market value of property after the alternative energy system has been installed.
4 No provision.
 The alternative energy system amendments in section 3 apply to tax years beginning between July 1, 2011 and July 1, 2018.
5 1999 Laws Ch. 957 s. 4 (Note after ORS 307.827): Exemption for environmentally sensitive logging equipment expires after the 2017-18 tax year.

1999 Laws Ch. 957 s. 7 (Note after ORS 307.831): Exemption for skyline and swingline yarders expires after the 2017-18 tax year.
 1999 Laws Ch. 957 s. 4 (Note after ORS 307.827) is repealed, so there is no longer a sunset date on the environmentally sensitive logging equipment exemption.

1999 Laws Ch. 957 s. 7 (Note after ORS 307.831) is repealed, so there is no longer a sunset date on the skyline and swingline yarders exemption.
6 No provision.
 Effective date for the act is 91 days after adjournment sine die (effective September 28, 2011).