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:
- Sorting equipment
- Filling equipment
There are special requirements to claim an exemption for qualified property:
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 firstname.lastname@example.org
- Complete the Request for Certification of Marchinery Equipment form. If you have any questions, review our Frequently Asked Questions document or contact Gary Neuschwander at 503-551-1706 or email@example.com .
- Email the completed ODA certification request form(s) along with the DOR exemption form(s) to ADMP@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.
- 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.
- 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.
- After inspection, the ODA representative will leave the signed original certification(s) with your firm for you to submit to DOR.
- 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
- And if applicable, lodging and per diem as per rates established by the Department of Administrative Services
House Bill 3125: Exemption from property taxation for food processing equipment
House Bill 3125