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

(1)

Definitions:

(a)

“Assessor” means the county assessor, or the Oregon Department of Revenue (DOR) if DOR is responsible for the appraisal of the facility under ORS 306.126 (Appraisal of industrial property by department).

(b)

“Certified” means that Oregon Department of Agriculture (ODA) has inspected the qualified machinery and equipment (M&E) and has provided written verification to the food processor that the M&E is eligible for exemption under ORS 307.455 (Definitions for ORS 307.453 to 307.459).

(c)

“Newly acquired” means new or used M&E that is first purchased or leased by a food processor not more than two years (24 months) prior to placing it into service. Leased equipment may be exempt only if the food processor is responsible for the payment of the property taxes under the terms of the lease agreement. Newly acquired property does not include existing equipment that has been refurbished or reconditioned in the time frame provided by this rule.

(d)

“Placed into service” means the date the M&E is first used or in such condition that it is readily available and operational for its intended commercial use. It does not include property that is being tested or is in the process of being erected or installed on the January 1 assessment date.

(e)

“Qualified M&E” means property, whether new or used, that is newly acquired by a food processor and placed into service prior to January 1 preceding the first tax year for which an exemption under this section is sought, and that consists of:

(A)

Real property M&E that is used by a food processor in the primary processing of raw or fresh fruit, vegetables, nuts, legumes, grains, bakery products, dairy products, eggs or seafood; or

(B)

Personal property M&E that is used in an integrated processing line for the primary processing of raw or fresh fruit, vegetables, nuts, legumes, grains, bakery products, dairy products, eggs or seafood.

(f)

“Real Market Value” (RMV) of the property, for the purpose of determining the late filing fee pursuant to ORS 307.455 (Definitions for ORS 307.453 to 307.459), means the invoice cost of the qualified M&E, installation, engineering, and all miscellaneous costs including machinery process piping, foundations, power wiring, interest during installation, and freight.

(2)

A food processor seeking an exemption under ORS 307.455 (Definitions for ORS 307.453 to 307.459) must make a request to ODA for certification. The request must:

(a)

Be made in writing on a form provided by ODA and pursuant to ODA administrative rules;

(b)

Include a listing on the Food Processor Certification of Qualified Machinery and Equipment form provided by DOR of all qualified M&E for which certification is sought;

(c)

Be made at any time after M&E becomes “qualified M&E”; and

(d)

Be filed with ODA at least two weeks prior to March 1 in order that ODA may certify the property prior to the March 1 deadline for timely filing of the exemption claim with the assessor. Later requests for certification may be made, but the resulting certification may be after the March 1 claim filing deadline.

(3)

Upon receiving the request for certification, ODA will:

(a)

Schedule a site visit with the food processor;

(b)

Inspect the M&E that is the subject of the listing submitted to ODA for which certification is sought;

(c)

Determine if the subject M&E constitutes qualified M&E; and

(d)

Provide written certification to the food processor approving or denying the subject M&E as qualified M&E. The written certification is provided by ODA on the listing of qualified M&E submitted by the food processor.

(e)

Denial of certification of certain property by the ODA is a contested case for the purpose of ORS Chapter 183 (Administrative Procedures Act).

(4)

Following the certification process, the food processor must file an exemption claim form with the assessor. The claim must:

(a)

Be filed on a completed Food Processor Exemption Claim form provided by DOR;

(b)

Include the written certification signed and dated by ODA; and

(c)

Be filed on or before March 1, or under section (8) of this rule.

(5)

The filing of an exemption claim form is separate from the filing of a property tax return.

(6)

The assessor will return any exemption claim form not meeting the requirements of subsection (4)(a) and (b) of this rule to the food processor.

(7)

If the assessor returns an exemption claim form for completion, the food processor must return the exemption claim form to the assessor by March 1 for the claim to be considered as timely filed.

(8)

An exemption claim form that is filed after March 1, and on or before December 31 of the assessment year during which the exemption is claimed, must be accompanied by a late filing fee pursuant to ORS 307.455 (Definitions for ORS 307.453 to 307.459)(2)(b). If the late filing fee is not included with the claim form, no exemption will be allowed.

(a)

The late filing fee is the greater of $200 or one-tenth of one percent of RMV of the property that is the subject of the claim form.

(b)

The certified listing required by subsection (4)(b) of this rule that is included with a late filed exemption claim must show the RMV of each piece of qualified M&E. The RMV is reported on the certified listing form, as directed by that form’s instructions.

(9)

Upon the assessor’s receipt of a completed exemption claim form, and late filing fee if applicable, the assessor will compare the certified listing of all qualified M&E with the schedule of real and personal property M&E included on the property tax return. The property tax return must clearly identify the M&E that has been certified as qualified M&E by ODA.

(10)

Eligible M&E is exempt for the first qualifying tax year and the following four tax years as long as it continues to qualify as of January 1 of each year.

(a)

Qualified M&E that is used to process grains or bakery products must in total, based on the certifications for the site for the initial exemption year, have a cost of initial investment of $100,000 or more to be exempted.

(b)

In addition to subsection (10)(a), qualified M&E that is used to process bakery products may be exempted:

(A)

Based on processing to create bakery products, even if not from raw or fresh ingredients,

(B)

If not used to additionally process or re-process previously created bakery products, and

(C)

If processed at a site where 10 percent or less of total sales at the site are retail sales.

(c)

The food processor must notify the assessor if any of the exempt M&E becomes ineligible for the exemption. Property becomes ineligible when it no longer constitutes qualified M&E as defined in this rule.

(d)

The assessor may require verification of the M&E’s continued qualification for exemption.

(11)

Denial of the exemption may be appealed to the Oregon Tax Court pursuant to 305.275 (Persons who may appeal due to acts or omissions).
[Publications: Publications referenced are available from the agency.]

Source: Rule 150-307-0490 — Oregon Food Processor Property Tax Exemption, https://secure.­sos.­state.­or.­us/oard/view.­action?ruleNumber=150-307-0490.

150‑307‑0010
Real Property 150‑307‑0020
Personal Property Definitions 150‑307‑0030
Personal Property 150‑307‑0040
Taxation of Property Associated with Mining Claims on Federal Land 150‑307‑0050
Public Property Leased or Rented by Taxable Owner 150‑307‑0060
Property Held Under Lease 150‑307‑0070
Property Used for Public Park or Recreation 150‑307‑0080
Guidelines for Exempt Port Property Subject to In Lieu Tax 150‑307‑0090
Request For Computation of In Lieu Tax Payment 150‑307‑0100
Strategic Investment Program 150‑307‑0120
Review Required in Determining Exempt Status of Property for Charitable Institutions 150‑307‑0130
Literary Institution Defined 150‑307‑0140
Minimum Criteria Required in Determining Exempt Status of Property for Religious Organizations 150‑307‑0150
Parsonage and Caretaker Residence Exemption Guidelines 150‑307‑0160
Definition of Schools and Academies 150‑307‑0170
Senior Center Property Exemption 150‑307‑0180
Burial Grounds, Cemeteries, Crematories 150‑307‑0190
Application Process for Property Tax Exemption 150‑307‑0200
Property of Exempt Entities Leased to Other Exempt Entities 150‑307‑0210
Property Tax Status of Alternative Energy Systems 150‑307‑0220
Qualifications for Exemption of Indian Properties 150‑307‑0230
Valuation of Summer Home Properties 150‑307‑0240
Exception To Taxable Personal Property 150‑307‑0250
Water Association Qualifications 150‑307‑0260
Water Association Exemption Under ORS 307.210 Is Assessor’s Responsibility 150‑307‑0270
Jurisdiction Over Assessment of Telephonic Companies 150‑307‑0280
Qualifications for Exemption of Mutual or Cooperative Telephone Associations 150‑307‑0290
Jurisdiction over Assessment of Non-public Telephonic Systems 150‑307‑0300
Qualifications for Exemption for Privately Owned Telephone Systems 150‑307‑0310
Application for Exemption Under ORS 307.220 or 307.230 150‑307‑0320
Definition of Elderly 150‑307‑0330
Exemption Claim Procedures 150‑307‑0340
Defining "Surviving Spouse” of a Veteran 150‑307‑0350
Veteran’s Exemption for Surviving Spouse 150‑307‑0360
Physician Certification of Disability for Exemption 150‑307‑0370
Property to Which Veteran’s Exemption Applies 150‑307‑0380
Transfer of Veteran’s Exemption to a Different Property Requires Refiling 150‑307‑0390
Veterans Property Held in Trust 150‑307‑0400
Oregon Active Military Service Member’s Exemption — Eligibility 150‑307‑0410
Oregon Active Military Service Member’s Exemption Claimed By Lawful Occupant 150‑307‑0420
Agricultural Land Devoted to Agricultural Purposes as Real Property 150‑307‑0430
Exemption of Buildings, Structures and Machinery or Equipment during Construction 150‑307‑0440
War Veterans Filing a Claim for Exemption if Living in a Nonprofit Home for the Elderly 150‑307‑0450
Nonprofit Home for the Elderly 150‑307‑0460
Personal Property Used for Placing Farm Crops in Storage 150‑307‑0480
Pollution Control Facilities 150‑307‑0490
Oregon Food Processor Property Tax Exemption 150‑307‑0500
Hardship Situations 150‑307‑0510
Agricultural Workforce Housing and Farm Labor Camp Assessment 150‑307‑0520
Filing a Claim for Exemption When a Farm Labor Camp or Child Care Facility is Acquired 150‑307‑0530
Certification of Nonprofit Corporation Low Income Housing Exemption to County Assessor 150‑307‑0700
Rural Health Care Facilities 150‑307‑0710
Definitions 150‑307‑0720
Filing Requirements 150‑307‑0800
Vertical Housing Development Zone Program 150‑307‑0900
Qualified Heavy Equipment and Qualified Heavy Equipment Rental Providers - Definitions and Responsibilities 150‑307‑0905
Equipment and Tools Subject to the Heavy Equipment Rental Tax 150‑307‑0910
Cost of Heavy Equipment Operator’s Service Not Subject to Rental Tax 150‑307‑0915
Heavy Equipment Rental Tax Exemptions 150‑307‑0920
Long Term Rental Agreements
Last Updated

Jun. 8, 2021

Rule 150-307-0490’s source at or​.us