Or. Admin. R. 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.
(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.
(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, 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 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, the Food and Safety Division of 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.
(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(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.
Notes
Publications: Publications referenced are available from the agency.
Stat. Auth.: ORS 305.100, 307.459
Stats. Implemented: ORS 307.455
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