73rd OREGON LEGISLATIVE ASSEMBLY--2005 Regular Session
Enrolled
Senate Bill 479
Sponsored by COMMITTEE ON REVENUE (at the request of Oregon Food
Processors Council)
CHAPTER ................
AN ACT
Relating to taxation.
Be It Enacted by the People of the State of Oregon:
SECTION 1. { + Sections 2 to 5 of this 2005 Act are added to
and made a part of ORS chapter 307. + }
SECTION 2. { + The Legislative Assembly finds that food
processing activities make significant contributions to the
economy of this state and are important in supporting and
maintaining a high level of agricultural diversity, upon which
consistent economic performance is based. The Legislative
Assembly declares that a property tax exemption for qualified
real property machinery and equipment encourages continued
operation and expansion of the food processing industry in this
state. + }
SECTION 3. { + (1) As used in this section and section 4 of
this 2005 Act:
(a) 'Assessor' means the county assessor, or the Department of
Revenue if under ORS 306.126 the department is responsible for
appraisal of the facility at which the qualified machinery and
equipment is located.
(b) 'Food processor':
(A) Means a person engaged in the business of freezing,
canning, dehydrating, concentrating, preserving, processing or
repacking for human consumption raw or fresh fruit, vegetables,
nuts, legumes or seafood in any procedure that occurs prior to
the point of first sale by the processor.
(B) Does not include persons engaged in the business of
producing alcoholic beverages.
(c) 'Integrated processing line' does not include forklifts,
trucks or other rolling stock used to transport material to or
from a point of manufacture or assembly.
(d) 'Qualified machinery and equipment' 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 machinery and equipment that is used by a
food processor in the primary processing of raw or fresh fruit,
vegetables, nuts, legumes or seafood; or
(B) Personal property machinery and equipment that is used in
an integrated processing line for the primary processing of raw
or fresh fruit, vegetables, nuts, legumes or seafood.
Enrolled Senate Bill 479 (SB 479-C) Page 1
(2)(a) On or before March 1 preceding the first tax year for
which property is to be exempt from taxation under this section,
a food processor seeking an exemption under this section shall
apply to the assessor for exemption. The application shall be on
a form prescribed by the Department of Revenue and shall include
any information required by the department, including a schedule
of the qualified machinery and equipment for which certification
is sought.
(b) Notwithstanding paragraph (a) of this subsection, the
assessor may approve an application that is filed after March 1,
and on or before December 31 of the assessment year, if the
statement is accompanied by a late filing fee of the greater of
$200 or one-tenth of one percent of the real market value of the
property that is the subject of the application.
(c) The assessor shall review the application and, if the
machinery and equipment that is the subject of the application
constitutes qualified machinery and equipment certified by the
State Department of Agriculture under section 4 of this 2005 Act,
shall approve the application and exempt the qualified machinery
and equipment.
(d) If any of the machinery and equipment that is the subject
of the application does not constitute qualified machinery and
equipment certified by the State Department of Agriculture under
section 4 of this 2005 Act, the assessor shall exclude the
nonqualified machinery and equipment from the application.
(3) Qualified machinery and equipment for which an application
has been approved under subsection (2) of this section shall be
exempt for the tax year for which the application was approved
and for the next four succeeding tax years, if as of the
assessment date for each year the property constitutes qualified
machinery and equipment.
(4) The duration of the exemption under subsection (3) of this
section may not be extended as the result of the value of changes
to qualified machinery and equipment that are attributable to
rehabilitation, reconditioning or ongoing maintenance or
repair. + }
SECTION 4. { + (1) At the request of a food processor or under
the State Department of Agriculture's own initiative, the
department shall certify qualified machinery and equipment as
eligible for exemption under section 3 of this 2005 Act.
(2) The method of certification under this section shall be
provided by rules adopted by the State Department of Agriculture,
after consultation with the Department of Revenue.
(3) A decision by the State Department of Agriculture to deny
certification of certain property may be appealed to the Director
of Agriculture as a contested case under ORS chapter 183. + }
SECTION 5. { + The Department of Revenue and the State
Department of Agriculture may adopt rules to implement the
provisions of sections 3 and 4 of this 2005 Act. + }
SECTION 6. { + Section 3 of this 2005 Act applies to tax years
beginning on or after July 1, 2006. + }
SECTION 7. { + Notwithstanding section 3 of this 2005 Act,
property may not qualify for a first year of exemption under
section 3 of this 2005 Act for a tax year beginning on or after
July 1, 2011. + }
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Enrolled Senate Bill 479 (SB 479-C) Page 2
Passed by Senate June 13, 2005
Repassed by Senate July 13, 2005
...........................................................
Secretary of Senate
...........................................................
President of Senate
Passed by House July 11, 2005
...........................................................
Speaker of House
Enrolled Senate Bill 479 (SB 479-C) Page 3
Received by Governor:
......M.,............., 2005
Approved:
......M.,............., 2005
...........................................................
Governor
Filed in Office of Secretary of State:
......M.,............., 2005
...........................................................
Secretary of State
Enrolled Senate Bill 479 (SB 479-C) Page 4