ORS 307.394
Farm machinery and equipment

  • personal property used in farm operations
  • limitation

(1)

The following tangible personal property is exempt from ad valorem property taxation:

(a)

Farm machinery and equipment used primarily in the preparation of land, planting, raising, cultivating, irrigating, harvesting or placing in storage of farm crops;

(b)

Farm machinery and equipment used primarily for the purpose of feeding, breeding, management and sale of, or the produce of, livestock, poultry, fur-bearing animals or bees or for dairying and the sale of dairy products;

(c)

Machinery and equipment used primarily to implement a remediation plan as defined in ORS 308A.053 (Definitions for ORS 308A.050 to 308A.128) for the period of time for which the remediation plan is certified; or

(d)

Farm machinery and equipment used primarily in any other agricultural or horticultural use or animal husbandry or any combination of these activities.

(2)

Intentionally left blank —Ed.

(a)

Items of tangible personal property, including but not limited to tools, machinery and equipment that are used predominantly in the construction, reconstruction, maintenance, repair, support or operation of farm machinery, and equipment and other real or personal farm improvements that are used primarily in animal husbandry, agricultural or horticultural activities, or any combination of these activities, are exempt from ad valorem property taxation.

(b)

An item of tangible personal property described in paragraph (a) of this subsection is exempt from ad valorem property taxation only if the person that owns, possesses or controls the item also:

(A)

Owns, possesses or controls the farm machinery, equipment and other real and personal farm improvements for which the item is used; and

(B)

Carries on the animal husbandry, agricultural or horticultural activity, or combination of activities, in which the farm machinery, equipment or other real and personal farm improvements are used. [2001 c.753 §15; 2009 c.776 §8]

Source: Section 307.394 — Farm machinery and equipment; personal property used in farm operations; limitation, https://www.­oregonlegislature.­gov/bills_laws/ors/ors307.­html (accessed May 26, 2025).

Notes of Decisions

Where taxpayer, who owned pumpkin patch that held pumpkins grown on and brought from land other than patch and who used trains and boats to transport customers and pumpkins from patch, did not use trains and boats to harvest pumpkins from patch. Lakeview Farms, Ltd. v. Dept. of Revenue, 21 OTR 161 (2013)

307.010
Definitions of “land” and “real property” for state property tax laws 307.020
Definitions of “intangible personal property” and “tangible personal property” for state property tax laws 307.021
Definition of “manufactured structure” for ORS chapters 305, 307, 308, 310 and 311 307.022
Qualification for exemption of property of certain limited liability companies 307.030
Property subject to assessment generally 307.032
Maximum assessed value and assessed value of partially exempt property and specially assessed property 307.035
Publishing summary of certain exempt real property 307.040
Property of the United States 307.050
Property of the United States held under contract of sale 307.060
Property of the United States held under lease or other interest less than fee 307.070
Settled or claimed government land 307.080
Mining claims 307.090
Property of the state, counties and other municipal corporations 307.092
Property of housing authority 307.095
State property rented for parking subject to ad valorem taxation 307.100
Public property held by taxable owner under contract of purchase 307.107
Property used for natural gas pipeline extension project 307.110
Public property leased or rented by taxable owner 307.112
Property held under lease, sublease or lease-purchase by institution, organization or public body other than state 307.115
Property of nonprofit corporations held for public parks or recreation purposes 307.118
Wastewater and sewage treatment facilities 307.120
Property owned or leased by municipalities, dock commissions, airport districts or ports 307.123
Property of strategic investment program eligible projects 307.125
Property of forest protection agencies 307.130
Property of certain museums, volunteer fire departments and literary, benevolent, charitable and scientific institutions 307.134
Definition of fraternal organization 307.136
Property of fraternal organizations 307.140
Property of religious organizations 307.145
Certain child care facilities, schools and student housing 307.147
Senior services centers 307.150
Property used for burial, cremation or alternative disposition 307.155
When land exempt under ORS 97.660, 307.140 or 307.150 taxable 307.157
Cemetery or crematory land acquired by eleemosynary or charitable institution 307.158
Continued exemption for former cemetery or crematory land used for exempt low income housing 307.160
Property of public libraries 307.162
Claiming exemption 307.166
Property leased by exempt institution, organization or public body to another exempt institution, organization or public body 307.168
State land under lease 307.171
Sports facility owned by large city 307.175
Alternative energy systems and community solar projects 307.180
Property of Indians 307.181
Land acquired or owned by Indian tribe 307.182
Federal land used by recreation facility operators under permit 307.183
Summer homes on federal land occupied under permit 307.184
Summer homes on federal land occupied under lease 307.190
Tangible personal property held for personal use 307.195
Household furnishings owned by nonprofit organization furnishing housing for students attending institutions of higher education 307.197
Equipment used for certain emergencies in navigable waters 307.200
Public ways 307.203
Mobile home or manufactured dwelling parks financed by Housing and Community Services Department revenue bonds 307.210
Property of nonprofit mutual or cooperative water associations 307.241
Policy 307.242
Property of nonprofit corporation providing housing to elderly persons 307.243
Property to which exemption applies 307.244
Funded exemption 307.245
Denial of exemption for failure to reflect exemption by rent reduction 307.248
Suspense account 307.250
Property of veterans or surviving spouses 307.260
Claiming exemption 307.262
Tax years for which exemption may be claimed upon receipt of federal certification of disability 307.270
Property to which exemption of ORS 307.250 applies 307.280
Effect of exemption under ORS 307.250 on prior tax levied 307.283
Homesteads of unmarried surviving spouses of veterans of Civil War or Spanish War 307.286
Homestead exemption 307.289
Claiming homestead exemption 307.295
Property of surviving spouses of certain public safety officers killed in line of duty 307.315
Nursery stock 307.320
Deciduous trees, shrubs, plants, crops, cultured Christmas trees or hardwood on agricultural land 307.325
Agricultural products in possession of farmer 307.330
Commercial facilities under construction 307.340
Filing proof for cancellation of assessment 307.370
Property of nonprofit homes for elderly persons 307.375
Type of corporation to which exemption under ORS 307.370 applicable 307.380
Claiming exemption under ORS 307.370 307.385
Credit to resident’s account with share of tax exemption 307.390
Mobile field incinerators 307.391
Field burning smoke management equipment 307.394
Farm machinery and equipment 307.397
Certain machinery and equipment used in agricultural, aquacultural or fresh shell egg industry operations 307.398
Irrigation equipment 307.402
Beverage containers 307.405
Pollution control facilities 307.420
Filing claim and environmental certificate for exemption 307.430
Correction of assessment and tax rolls 307.450
Certain beach lands 307.453
Findings for food processing machinery and equipment exemption 307.455
Definitions for ORS 307.453 to 307.459 307.457
Certification of eligibility of machinery and equipment 307.458
Local option to reduce exemption 307.459
Rules 307.471
Student housing exempt from school district taxes 307.475
Hardship relief for failure to file for exemption, cancellation of assessment or redetermination of value 307.480
Definitions for ORS 307.480 to 307.510 307.485
Exemption 307.490
Payments in lieu of taxes 307.495
Claiming exemption 307.500
Review of claim by Department of Revenue 307.505
Inspection of farm labor camps 307.510
Appeal to tax court by taxpayer 307.512
Filing deadline for certain housing-related exemption and special assessment programs 307.513
Eligibility for exemption 307.515
Definitions for ORS 307.515 to 307.523 307.517
Criteria for exemption 307.518
Alternative criteria for exemption 307.519
Exemption limited to tax levy of governing body that adopts ORS 307.515 to 307.523 307.520
Limited equity cooperative property 307.521
Application for exemption 307.523
Application deadlines 307.525
Action against landlord for failure to reduce rent 307.527
Ordinance or resolution approving or disapproving application 307.529
Notice of proposed termination of exemption 307.530
Termination if property held for future development or other purpose 307.531
Termination of exemption without notice 307.533
Review 307.535
Extension of deadline for completion 307.540
Definitions for ORS 307.540 to 307.548 307.541
Nonprofit corporation low income housing 307.543
Exemption limited to levy of governing body adopting ORS 307.540 to 307.548 307.545
Application for exemption 307.547
Determination of eligibility 307.548
Termination of exemption 307.555
Property burdened by affordable housing covenant used for owner-occupied housing 307.558
Termination of exemption for noncompliance 307.580
Property of industry apprenticeship or training trust 307.590
Definitions for ORS 307.590 to 307.596 307.592
Application process 307.594
Approval or rejection of application 307.596
Assessment upon expiration or termination of exemption 307.600
Legislative findings 307.603
Definitions for ORS 307.600 to 307.637 307.606
Exemption limited to tax levy of city or county that adopts ORS 307.600 to 307.637 307.609
Applicability of ORS 307.600 to 307.637 in cities and certain counties 307.612
Duration of exemption 307.615
City or county to provide application forms 307.618
City or county findings required for approval 307.621
Approval or denial of applications 307.624
Termination of exemption for failure to complete construction or comply with law 307.627
Termination of exemption 307.631
Review of denial of application or termination of exemption 307.634
Extension of deadline for completion of construction, addition or conversion 307.637
Deadlines for actions required for exemption 307.651
Definitions for ORS 307.651 to 307.687 307.654
Legislative findings 307.657
Local government action to provide exemption 307.661
Median sales price 307.664
Exemption 307.667
Application for exemption 307.671
Approval criteria 307.674
Application, approval and denial procedures 307.677
Extension of construction period 307.681
Termination of exemption for failure to meet requirements 307.684
Immediate termination of exemption 307.687
Review of denial of application 307.804
Rural health care facilities 307.806
Exemption limited to taxes of district adopting ORS 307.804 307.808
Findings and declarations 307.811
Essential community provider long term care facilities 307.815
Exemption limited to taxes of district adopting ORS 307.811 307.818
Beach access sites 307.821
Disqualification 307.824
Findings and declarations 307.827
Environmentally sensitive logging equipment 307.831
Skyline and swing yarders 307.835
Cargo containers 307.841
Definitions for ORS 307.841 to 307.867 307.844
Zone designation 307.854
Acquisition, disposition and development of real property within zone 307.857
Application for exemption 307.858
Project certification requirements 307.861
Monitoring of certified projects 307.864
Partial property tax exemption 307.866
Decertification of project 307.867
Termination of zone 307.870
Definitions for ORS 307.870 to 307.890 307.872
Heavy equipment rental tax 307.875
Heavy equipment provider registration 307.878
Collection of tax 307.880
Refunds 307.883
Taxes held in trust 307.885
Applicability of other provisions of tax law 307.888
Distribution of moneys received 307.890
Exemption from disclosure 307.990
Penalties
Green check means up to date. Up to date

Current through early 2026

§ 307.394’s source at oregon​.gov