ORS 308.256
Assessment, taxation and exemption of watercraft and materials of shipyards, ship repair facilities and offshore drilling rigs
(1)
Watercraft of water transportation companies shall be assessed as provided in ORS 308.505 (Definitions for ORS 308.505 to 308.674) to 308.674 (Exemption equal to difference between real market value of company’s centrally assessable property and 130 percent of cost of company’s centrally assessable real and tangible personal property).(2)
Watercraft described in ORS 308.260 (Watercraft used for reduction or processing of deep-sea fish) shall be assessed as provided in ORS 308.260 (Watercraft used for reduction or processing of deep-sea fish).(3)
The following watercraft shall be exempt from taxation:(a)
Watercraft not owned or operated by water transportation companies, as described in ORS 308.515 (Department to make annual assessment of designated utilities and companies), and that are customarily engaged in the transportation of persons or property for hire wholly outside the boundaries of this state.(b)
Watercraft owned or operated by water transportation companies, as described in ORS 308.515 (Department to make annual assessment of designated utilities and companies), and not assessed by the Department of Revenue, that are customarily engaged in the transportation of persons or property for hire wholly or in part outside the boundaries of this state. The exemption under this paragraph does not apply to watercraft that engage in the transportation for hire of persons on offshore trips that originate and terminate at the same port, and that have a valid marine document issued by the United States Coast Guard or any other federal agency that succeeds the United States Coast Guard in the duty of issuing marine documents.(c)
The assessed value of the property of a water transportation company, as described in ORS 308.515 (Department to make annual assessment of designated utilities and companies), that is not subject to assessment by the Department of Revenue under the provisions of ORS 308.550 (Valuing property of company operating both within and without state) (3).(4)
Intentionally left blank —Ed.(a)
Watercraft over 16 feet in length in the process of original construction, or undergoing major remodeling, renovation, conversion, reconversion or repairs on January 1 are exempt from taxation. For the purposes of this subsection, the term “major” shall include all remodeling, renovation, conversion, reconversion or repairs to a watercraft in which the expenditures for parts, materials, labor and accessorial services exceed 10 percent of the market value of the watercraft immediately prior to the remodeling, renovation, conversion, reconversion or repairs.(b)
Watercraft subject to assessment by the Department of Revenue under ORS 308.505 (Definitions for ORS 308.505 to 308.674) to 308.674 (Exemption equal to difference between real market value of company’s centrally assessable property and 130 percent of cost of company’s centrally assessable real and tangible personal property) are exempt under paragraph (a) of this subsection only if on or before the due date for filing the statement described in ORS 308.524 (Companies to file statements) for the year for which exemption is claimed, the owner or operator files with the department sufficient documentary evidence that the property qualifies for the exemption.(c)
The owner or operator of watercraft subject to local assessment shall file the documentary evidence required under paragraph (b) of this subsection with the county assessor on or before April 1 of the year for which exemption is claimed.(5)
All other watercraft not otherwise specifically exempt from taxation nor licensed in lieu thereof shall be assessed in the county in which they are customarily moored when not in service or if there is no customary place of moorage in the county in which their owner or owners reside or, if neither situs applies, then in the county in which any one of the owners maintains a place of business.(6)
Watercraft described in subsection (5) of this section shall be assessed at assessed value, except as follows:(a)
Ships and vessels whose home ports are in the State of Oregon and that ply the high seas or between the high seas and inland water ports or terminals shall be assessed at four percent of the assessed value thereof.(b)
Vessels that are self-propelled, offshore oil drilling rigs whose home ports are in the State of Oregon shall be assessed at four percent of the assessed value thereof.(c)
All other ships and vessels whose home ports are in the State of Oregon shall be assessed at 40 percent of the assessed value thereof.(7)
The assessor shall cancel the assessment in whole or proportionate part on all parts and materials in the inventory of shipyards and ship repair facilities as of January 1 of the assessment year, but only upon receipt prior to April 1 of the assessment year of sufficient documentary proof that prior to April 1 of the assessment year the parts or materials so assessed were physically attached to or incorporated in watercraft undergoing major remodeling, renovation, conversion, reconversion or repairs as described in subsection (4) of this section, within the boundaries of this state. [1957 c.342 §2 (enacted in lieu of 308.110 and 308.255); 1965 c.431 §1; 1967 c.293 §32; 1987 c.347 §1; 1991 c.459 §103; 1993 c.18 §69; 1993 c.270 §29; 1997 c.541 §164; 1999 c.398 §1; 2005 c.94 §45]
Source:
Section 308.256 — Assessment, taxation and exemption of watercraft and materials of shipyards, ship repair facilities and offshore drilling rigs, https://www.oregonlegislature.gov/bills_laws/ors/ors308.html.
Notes of Decisions
A dredge, which produces income by working gravel pits or river bottoms within the state’s boundaries, is to be fully assessed. Heenan and Domogalla v. Dept. of Rev., 5 OTR 78 (1972)
Attorney General Opinions
Ad valorem property taxation of maritime cargo containers, (1979) Vol 39, p 494
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