Oregon Department of Revenue

Rule Rule 150-307-0920
Long Term Rental Agreements


(1) Definitions set forth in ORS 307.870 (Definitions for ORS 307.870 to 307.890) are incorporated herein by reference.
(2) For purposes of this rule, “rental agreement” means an agreement between a qualified heavy equipment rental provider and a renter for the use of qualified heavy equipment for a single defined term of less than 365 consecutive days, an open-ended term, or an undefined term. When determining the length of a rental agreement, each term and any extensions or amendments extending the agreement beyond the initial term are considered separately.
(3) Qualified heavy equipment rented for a single defined term of 365 consecutive days or more is not subject to the heavy equipment rental tax and, therefore, no longer qualifies for the exemption from ad valorem property tax provided in ORS 307.872 (Heavy equipment rental tax).
(a) The qualified heavy equipment rental provider must notify the County Assessor according to ORS 308.290 (Returns) and ORS 311.410 (Effect of property transfer or lease termination on lien and on taxability of property). The heavy equipment must be added to the property tax rolls.
(b) Any qualified heavy equipment rented under an agreement for a defined term of 365 consecutive days or more on July 1 is subject to ad valorem property tax as provided by ORS 311.410 (Effect of property transfer or lease termination on lien and on taxability of property)(1).
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Last accessed
Jun. 8, 2021