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.  
  • Property certified must be put into service in the prior calendar year from inspection to be eligible for exemption.​

Procedures and forms

  • Complete the required Department of Revenue (DOR) listing form(s). 
    If you have any questions about applying for exemptions, contact
    DOR at 503-378-4988 or questions.dor@state.or.us
  1. ​​Complete the Request for Certification of Machinery Equipment form.
    If you have any questions, review our Frequently Asked Questions
    or contact Gary Neuschwander at 503-551-1706 or gneuschwander@oda.state.or.us ​ 
  2. Email the completed ODA certification request form(s) along with the DOR exemption form(s) to gneuschwander@oda.state.or.us ​ ​
    You may also fax your form to 503-986-4737 or mail your completed form to:​
    Oregon Department of Agriculture
    M&E Certification Program
    Capitol Street NE, Suite 100
    Salem, OR 97301-2532 
  3. An ODA representative 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. 
  4. 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 representative will leave the signed original certification(s) with your firm for you to submit to DOR. 
  6. ​The ODA representative will generate a bill for the certification process. If you elect to pay through an invoicing system, please contact the 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 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

Laws and rules

Assessment of Property for Taxation (ORS 308)

Property tax assessment law

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

House Bill 3125

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

Gary Neuschwander
Phone: 503-551-1706

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