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.
In 2023, House Bill 2080 Sections 11 and 12 amended the program to include machinery and equipment that is used to process meat or wild game. The amendment applies to machinery and equipment placed in service from 2023 and is applicable to property tax years beginning on or after July 1, 2024.
The following are examples of equipment and machinery that may qualify:
- Sorting equipment
- Filling equipment
- Packaging equipment
There are special requirements to claim an exemption for qualified property:
Procedures and forms
- Complete the Request for Certification of Machinery Request Form.
- Complete the Property Asset Form.
- If you have any questions, review our Frequently Asked Questions or contact Gary Neuschwander at 503-551-1706 or firstname.lastname@example.org
- Email the Certification of Machinery Request Form and Property Asset Form to email@example.com . You may also mail your completed form to Oregon Department of Agriculture, Market Access Program, Capitol Street NE, Suite 100, Salem, OR 97301-2532.
- ODA will contact your firm to set up an appointment to visit your facility to inspect the machinery and equipment.
- After certification is completed, the signed original certification will be left with your firm.
- Complete the required Department of Revenue (DOR) Exemption Claim Form & Instructions. If you have any questions about claiming your exemption, contact DOR at 503-378-4988 or email DOR.IPR@dor.oregon.gov.
- Email the signed Certification Form and Exemption Claim Form to DOR.IPR@dor.oregon.gov or mail to Oregon Department of Revenue, Property Tax, 955 Center Street NE, Salem, OR 97301-2555.
- ODA will issue a receipt for the certification process and will issue a bill for service in the next billing cycle.
The fees and charges are established for the administration and certification of machinery and equipment in OAR 603-025-0152. The fees may be charged and assessed regardless if machinery and equipment is qualified for the exemption. The scale of fees may vary according to the location of the qualified machinery and equipment.
The cost of such services may include:
- A charge of service at the rate of $95 per hour;
- Travel time at the rate of $95 per hour;
- Mileage, lodging, and per diem reimbursed at rates established by the Department of Administrative Services (DAS); and
- Application fees at $100 for each request for certification received by the Department.
Laws and rules
House Bill 3125: Exemption from property taxation for food processing equipment
House Bill 3125