75th OREGON LEGISLATIVE ASSEMBLY--2009 Regular Session
 
NOTE:  Matter within  { +  braces and plus signs + } in an
amended section is new. Matter within  { -  braces and minus
signs - } is existing law to be omitted. New sections are within
 { +  braces and plus signs + } .
 
LC 3338
 
                           B-Engrossed
 
                         House Bill 2904
                  Ordered by the Senate June 22
  Including House Amendments dated June 5 and Senate Amendments
                          dated June 22
 
Sponsored by Representative KOTEK (at the request of Fazio Farms)
 
 
                             SUMMARY
 
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure.
 
  Includes implementation of remediation plan to remediate or
mitigate severe adverse conditions on farmland as eligible farm
use for purposes of special assessment for property taxation.
Directs Director of   { - Oregon State University Extension
Service to adopt certification process for remediation plan. - }
 { + Department of Revenue to administer farm use special
assessment pursuant to remediation plan. Authorizes Director of
Oregon State University Extension Service to establish fees for
certifying remediation plans. + }
  Specifies procedures and criteria by which farmland that is
certified for remediation plan is disqualified from special
assessment and removed from disqualification.
  Exempts from property taxation machinery and equipment used to
implement plan.
   { +  Exempts from property taxation certain real property. + }
  Applies to tax years beginning on or after July 1, 2007.
Establishes additional procedures for certifying remediation plan
for tax years beginning before July 1, 2010.
  Takes effect on 91st day following adjournment sine die.
 
                        A BILL FOR AN ACT
Relating to property taxation; creating new provisions; amending
  ORS 307.394, 307.397, 308A.053, 308A.056, 308A.113, 308A.116,
  308A.703, 308A.706 and 308A.718; and prescribing an effective
  date.
Be It Enacted by the People of the State of Oregon:
  SECTION 1. ORS 308A.053 is amended to read:
  308A.053. As used in ORS 308A.050 to 308A.128:
  (1) 'Exclusive farm use zone' means a zoning district
established by a county or a city under the authority granted by
ORS chapter 215 or 227 that is consistent with the farm use zone
provisions set forth in ORS 215.203 to 215.311, 215.438, 215.448,
215.452, 215.455 or 215.700 to 215.780.
  (2) 'Exclusive farm use zone farmland' means land that
qualifies for special assessment under ORS 308A.062.
  (3) 'Homesite' means the land, including all tangible
improvements to the land under and adjacent to a dwelling and
other structures, if any, that are customarily provided in
conjunction with a dwelling.
  (4) 'Nonexclusive farm use zone farmland' means land that is
not within an exclusive farm use zone but that qualifies for farm
use special assessment under ORS 308A.068.
   { +  (5) 'Remediation plan' means a plan certified by an
extension agent of the Oregon State University Extension Service
to remediate or mitigate severe adverse conditions on farmland.
  (6) 'Severe adverse conditions on farmland' means conditions
that render impracticable continued farm use and that are not due
to an intentional or negligent act or omission by the owner,
tenant or lessee of the farmland or the applicant for
certification of a remediation plan. + }
  SECTION 2. ORS 308A.056 is amended to read:
  308A.056. (1) As used in ORS 308A.050 to 308A.128, 'farm use'
means the current employment of land for the primary purpose of
obtaining a profit in money by:
  (a) Raising, harvesting and selling crops  { - ; - }  { + . + }
  (b) Feeding, breeding, managing or selling livestock, poultry,
fur-bearing animals or honeybees or the produce thereof
 { - ; - }  { + . + }
  (c) Dairying and selling dairy products  { - ; - }  { + . + }
  (d) Stabling or training equines, including but not limited to
providing riding lessons, training clinics and schooling shows
 { - ; - }  { + . + }
  (e) Propagating, cultivating, maintaining or harvesting aquatic
species and bird and animal species to the extent allowed by the
rules adopted by the State Fish and Wildlife Commission
 { - ; - }  { + . + }
  (f) On-site constructing and maintaining equipment and
facilities used for the activities described in this subsection
 { - ; - }  { + . + }
  (g) Preparing, storing or disposing of, by marketing or
otherwise, the products or by-products raised for human or animal
use on land described in this section  { - ; or - }  { + .
  (h) Implementing a remediation plan previously presented to the
assessor for the county in which the land that is the subject of
the plan is located. + }
    { - (h) - }   { + (i) + } Using land described in this
section for any other agricultural or horticultural use or animal
husbandry or any combination thereof.
  (2) 'Farm use' does not include the use of land subject to
timber and forestland taxation under ORS chapter 321, except land
used exclusively for growing cultured Christmas trees or land
described in ORS 321.267 (3) or 321.824 (3) (relating to land
used to grow certain hardwood timber, including hybrid
cottonwood).
  (3) For purposes of this section, land is currently employed
for farm use if the land is:
  (a) Farmland, the operation or use of which is subject to any
farm-related government program;
  (b) Land lying fallow for one year as a normal and regular
requirement of good agricultural husbandry;
  (c) Land planted in orchards or other perennials, other than
land specified in paragraph (d) of this subsection, prior to
maturity;
  (d) Land not in an exclusive farm use zone that has not been
eligible for assessment at special farm use value in the year
prior to planting the current crop and has been planted in
orchards, cultured Christmas trees or vineyards for at least
three years;
  (e) Wasteland, in an exclusive farm use zone, dry or covered
with water, neither economically tillable nor grazeable, lying in
or adjacent to and in common ownership with farm use land and
that is not currently being used for any economic farm use;
 
  (f) Except for land under a single family dwelling, land under
buildings supporting accepted farming practices, including the
processing facilities allowed by ORS 215.213 (1)(x) and 215.283
(1)(u) and the processing of farm crops into biofuel as
commercial activities in conjunction with farm use under ORS
215.213 (2)(c) and 215.283 (2)(a);
  (g) Water impoundments lying in or adjacent to and in common
ownership with farm use land;
  (h) Any land constituting a woodlot, not to exceed 20 acres,
contiguous to and owned by the owner of land specially valued for
farm use even if the land constituting the woodlot is not
utilized in conjunction with farm use;
  (i) Land lying idle for no more than one year when the absence
of farming activity is the result of the illness of the farmer or
a member of the farmer's immediate family, including injury or
infirmity, regardless of whether the illness results in death;
  (j) Land described under ORS 321.267 (3) or 321.824 (3)
(relating to land used to grow certain hardwood timber, including
hybrid cottonwood);
  (k) Land used for the primary purpose of obtaining a profit in
money by breeding, raising, kenneling or training greyhounds for
racing;   { - or - }
   { +  (L) Land subject to a remediation plan previously
presented to the assessor for the county in which the land that
is the subject of the plan is located; or + }
    { - (L) - }   { + (m) + } Land used for the processing of
farm crops into biofuel, as defined in ORS 315.141, if:
  (i) Only the crops of the landowner are being processed;
  (ii) The biofuel from all of the crops purchased for processing
into biofuel is used on the farm of the landowner; or
  (iii) The landowner is custom processing crops into biofuel
from other landowners in the area for their use or sale.
  (4) As used in this section:
  (a) 'Accepted farming practice' means a mode of operation that
is common to farms of a similar nature, necessary for the
operation of these similar farms to obtain a profit in money and
customarily utilized in conjunction with farm use.
  (b) 'Cultured Christmas trees' means trees:
  (A) Grown on lands used exclusively for that purpose, capable
of preparation by intensive cultivation methods such as plowing
or turning over the soil;
  (B) Of a marketable species;
  (C) Managed to produce trees meeting U.S. No. 2 or better
standards for Christmas trees as specified by the Agricultural
Marketing Service of the United States Department of Agriculture;
and
  (D) Evidencing periodic maintenance practices of shearing for
Douglas fir and pine species, weed and brush control and one or
more of the following practices:
  (i) Basal pruning;
  (ii) Fertilizing;
  (iii) Insect and disease control;
  (iv) Stump culture;
  (v) Soil cultivation; or
  (vi) Irrigation.
  SECTION 3. ORS 308A.113 is amended to read:
  308A.113. (1) Land within an exclusive farm use zone shall be
disqualified from special assessment under ORS 308A.062 by:
  (a) Removal of the special assessment by the assessor upon the
discovery that the land is no longer being used as farmland;
  (b) Removal of the land from any exclusive farm use zone; or
  (c) Establishing a nonfarm dwelling on the land under ORS
215.236.
  (2) Notwithstanding subsection (1)(a) of this section, the
county assessor shall not disqualify land that has been receiving
special assessment if the land is not being farmed because:
  (a) The effect of flooding substantially precludes normal and
reasonable farming during the year; or
  (b) Severe drought conditions are declared under ORS 536.700 to
536.780.
   { +  (3)(a) Disqualification under subsection (1)(a) of this
section is reversed if the taxpayer:
  (A) Notifies the assessor in writing pursuant to ORS 308A.718
of the taxpayer's intention to seek certification for a
remediation plan; and
  (B) Presents a certified remediation plan to the assessor
within one year after the date of disqualification.
  (b) In addition to the grounds for disqualification under
subsection (1)(a) of this section, the assessor may disqualify
land granted farm use special assessment pursuant to a
remediation plan upon:
  (A) Discovery, or notice from an extension agent of the Oregon
State University Extension Service, that the plan is not being
implemented substantially as certified; or
  (B) Discovery, or notice from the owner, tenant or lessee or
from an extension agent of the Oregon State University Extension
Service, that the plan as certified is no longer necessary,
practicable or effective. + }
    { - (3)(a) - }   { + (4)(a) + } Notwithstanding ORS 308.210,
308A.062, 311.405 or 311.410, if disqualification occurs as a
result of the discovery that the land is no longer in farm use,
then, regardless of when during the assessment year discovery is
actually made, disqualification by the county assessor shall
occur as of the January 1 assessment date of the assessment year
in which discovery is made.
  (b) Paragraph (a) of this subsection shall apply only if the
notice of disqualification required under ORS 308A.718 is mailed
by the county assessor prior to August 15 of the tax year for
which the disqualification of the land is asserted.
    { - (4) - }   { + (5) + } Upon disqualification, additional
taxes shall be determined as provided in ORS 308A.700 to
308A.733.
  SECTION 4. ORS 308A.116 is amended to read:
  308A.116. (1) Nonexclusive farm use zone farmland qualified for
special assessment under ORS 308A.068 shall be disqualified from
such special assessment upon:
  (a) Notification by the taxpayer to the assessor to remove the
special assessment;
  (b) Sale or transfer to an ownership making it exempt from ad
valorem property taxation;
  (c) Removal of the special assessment by the assessor upon the
discovery that the land is no longer in farm use for failure to
meet the income requirements under ORS 308A.071 or is no longer
in farm use; or
  (d) The act of recording a subdivision plat under the
provisions of ORS chapter 92.
  (2) The county assessor shall not disqualify the land that has
been receiving special assessment upon the sale or transfer to a
new owner or transfer by reason of death of a former owner to a
new owner if the land continues to be used solely for farm use.
  (3) When, for any reason, the land or any portion thereof
ceases to be used solely for farm use, the owner at the time of
the change in use shall notify the assessor of the change prior
to the next January 1 assessment date.
  (4) If under subsection (1)(d) of this section, the county
assessor disqualifies land for special assessment upon the act of
platting the land, the land, or a part of the land, may be
requalified for special assessment upon:
  (a) Payment of all additional tax, interest or penalty that
remains due and owing on the land;
  (b) Submission by the owner of an application for special
assessment under ORS 308A.077;
  (c) Meeting all of the qualifications for farm use special
assessment under ORS 308A.068; and
  (d) Meeting the requirements, if any, of applicable local
government zoning ordinances with regard to minimum lot or parcel
acreage for farm use.
  (5) The county assessor shall not disqualify land that has been
receiving special assessment if the land is not being farmed
because:
  (a) The effect of flooding substantially precludes normal and
reasonable farming during the year; or
  (b) Severe drought conditions are declared under ORS 536.700 to
536.780.
   { +  (6)(a) Disqualification under subsection (1)(c) of this
section is reversed if the taxpayer:
  (A) Notifies the assessor in writing pursuant to ORS 308A.718
of the taxpayer's intention to seek certification for a
remediation plan; and
  (B) Files an application for a certified remediation plan with
the assessor within one year after the date of disqualification.
  (b) In addition to the grounds for disqualification under
subsection (1)(c) of this section, the assessor may disqualify
land granted farm use special assessment pursuant to a
remediation plan upon:
  (A) Discovery, or notice from an extension agent of the Oregon
State University Extension Service, that the plan is not being
implemented substantially as certified; or
  (B) Discovery, or notice from the owner, tenant or lessee or
from an extension agent of the Oregon State University Extension
Service, that the plan as certified is no longer necessary,
practicable or effective. + }
    { - (6)(a) - }   { + (7)(a) + } Notwithstanding ORS 308.210,
308A.068, 311.405 or 311.410, if disqualification occurs as a
result of the discovery that the land is no longer in farm use,
then, regardless of when during the assessment year discovery is
actually made, disqualification by the county assessor shall
occur as of the January 1 assessment date of the assessment year
in which discovery is made.
  (b) Paragraph (a) of this subsection shall apply only if the
notice of disqualification required under ORS 308A.718 is mailed
by the county assessor prior to August 15 of the tax year for
which the disqualification of the land is asserted.
    { - (7) - }   { + (8) + } Upon disqualification, additional
taxes shall be determined as provided in ORS 308A.700 to
308A.733.
  SECTION 5. ORS 308A.703 is amended to read:
  308A.703. (1) This section applies to land upon the land's
disqualification from special assessment under any of the
following sections:
  (a) Exclusive farm use zone farmland under ORS 308A.113;
  (b) Nonexclusive farm use zone farmland under ORS 308A.116;
  (c) Western Oregon designated forestland under ORS 321.359;
  (d) Eastern Oregon designated forestland under ORS 321.842;
  (e) Wildlife habitat special assessment under ORS 308A.430; or
  (f) Conservation easement special assessment under ORS
308A.465.
  (2) Following a disqualification listed in subsection (1) of
this section, an additional tax shall be added to the tax
extended against the land on the next assessment and tax roll, to
be collected and distributed in the same manner as other ad
valorem property tax moneys. The additional tax shall be equal to
the difference between the taxes assessed against the land and
the taxes that would otherwise have been assessed against the
land, for each of the number of years determined under subsection
(3) of this section.
  (3) The number of years for which additional taxes shall be
calculated shall equal the lesser of the number of consecutive
years the land had qualified for the special assessment program
for which disqualification has occurred or:
  (a) Ten years, in the case of exclusive farm use zone farmland,
but only if the land, immediately following disqualification,
remains outside an urban growth boundary;
  (b) Ten years, in the case of wildlife habitat special
assessment land within an exclusive farm use zone, but only if
the land, immediately following disqualification, remains outside
an urban growth boundary;
  (c) Ten years, in the case of conservation easement special
assessment land within an exclusive farm use zone, but only if
the land, immediately following disqualification, remains outside
an urban growth boundary; or
  (d) Five years, in the case of:
  (A) Nonexclusive farm use zone farmland;
  (B) Western Oregon designated forestland;
  (C) Eastern Oregon designated forestland;
  (D) Exclusive farm use zone farmland that is not described in
paragraph (a) of this subsection;
  (E) Wildlife habitat special assessment land that is not
described in paragraph (b) of this subsection; or
  (F) Conservation easement special assessment land that is not
described in paragraph (c) of this subsection.
   { +  (4)(a) Except as provided in paragraph (b) of this
subsection, if disqualification under subsection (1)(a) or (b) of
this section occurs within five years after the end of a period
of farm use special assessment pursuant to a remediation plan as
defined in ORS 308A.053, the number of years for which the
additional tax shall be calculated shall be the number of years
determined under subsection (3) of this section plus the number
of years during which farm use special assessment was granted
pursuant to the remediation plan.
  (b) Additional tax may not be collected for the number of years
during which farm use special assessment was granted pursuant to
the remediation plan if the plan:
  (A) Is implemented in good faith; and
  (B) Fails to render continued farm use practicable. + }
    { - (4) - }   { + (5) + } The additional taxes described in
this section shall be deemed assessed and imposed in the year to
which the additional taxes relate.
    { - (5) - }   { + (6) + } If the disqualification of the land
is the result of the sale or transfer of the land to an ownership
making the land exempt from ad valorem property taxation, the
lien for additional taxes shall attach as of the day preceding
the sale or transfer.
    { - (6) - }   { + (7) + } The amount determined to be due
under this section may be paid to the tax collector prior to the
time of the next general property tax roll, pursuant to the
provisions of ORS 311.370.
  SECTION 6. ORS 308A.706 is amended to read:
  308A.706. (1) Notwithstanding that land   { - may have been - }
 { + is + } disqualified from special assessment, the additional
taxes described under ORS 308A.703   { - shall - }   { + may + }
not be imposed and shall remain a potential tax liability if, as
of the date the disqualification is taken into account on the
assessment and tax roll, the land is any of the following:
  (a) Disqualified exclusive farm use zone farmland or
nonexclusive farm use zone farmland that:
  (A) Is not being used as farmland; and
  (B) Is not being used for industrial, commercial, residential
or other use that is incompatible with a purpose to return the
land to farm use.
  (b) Acquired by a governmental agency or body as a result of an
exchange of the land for land of approximately equal value held
by the governmental agency or body.
 
  (c) Acquired and used for natural heritage purposes and all of
the following additional requirements are met:
  (A) The land is registered under ORS 273.581 as a natural
heritage conservation area;
  (B) The land is acquired by a private nonprofit corporation;
  (C) The land is retained by the corporation, or transferred to
the state by the corporation, for the purpose of educational,
scientific and passive recreational use consistent with
conservation of the ecological values and natural heritage
elements of the area;
  (D) If the land is retained by the corporation, it remains open
to the public without charge for the uses described in
subparagraph (C) of this paragraph; and
  (E) The land is managed pursuant to a voluntary management
agreement under ORS 273.581 (5).
  (d) Qualified for special assessment under:
  (A) ORS 308A.062, relating to farm use special assessment of
land in an exclusive farm use zone;
  (B) ORS 308A.068, relating to farm use special assessment of
nonexclusive farm use zone farmland;
  (C) ORS 321.358, relating to classification as designated
forestland in western Oregon;
  (D) ORS 321.839, relating to classification as designated
forestland in eastern Oregon;
  (E) ORS 321.709, relating to qualification as small tract
forestland;
  (F) ORS 308A.424, relating to wildlife habitat special
assessment; or
  (G) ORS 308A.456, relating to conservation easement special
assessment.
  (e) Disqualified nonexclusive farm use zone farmland, to the
extent the additional taxes are deferred or abated as provided in
ORS 308A.119.
   { +  (2) This section does not apply to the additional taxes
imposed under ORS 308A.703 (4)(a) for the number of years during
which farm use special assessment was granted pursuant to a
remediation plan as defined in ORS 308A.053. + }
    { - (2) - }   { + (3) + } In any case where the additional
tax is deferred under the provisions of this section but may
subsequently be imposed under ORS 308A.712, the county assessor
shall continue to enter the notation 'potential additional tax
liability' on the assessment and tax roll.
  SECTION 7. ORS 308A.718 is amended to read:
  308A.718. (1) The county assessor shall send notice as provided
in this section if land is disqualified under any of the
following special assessment programs:
  (a) Farm use special assessment under ORS 308A.050 to 308A.128.
  (b) Farm or forest homesite special assessment under ORS
308A.250 to 308A.259.
  (c) Western Oregon designated forestland special assessment
under ORS 321.257 to 321.390.
  (d) Eastern Oregon designated forestland special assessment
under ORS 321.805 to 321.855.
  (e) Small tract forestland special assessment under ORS 321.700
to 321.754.
  (f) Wildlife habitat special assessment under ORS 308A.403 to
308A.430.
  (g) Conservation easement special assessment under ORS 308A.450
to 308A.465.
  (2) Notwithstanding that a change in use described in this
section is not a disqualification, the assessor shall send notice
as provided in this section when the highest and best use of land
changes from forestland to a different highest and best use.
  (3) Within 30 days after the date that land is disqualified
from special assessment, the assessor shall notify the taxpayer
 
in writing of the disqualification and shall state the reason for
the disqualification.
  (4) Following receipt of the notification, the taxpayer may
appeal the assessor's determination to the Oregon Tax Court
within the time and in the manner provided in ORS 305.404 to
305.560.
  (5)(a) When any land has been granted special assessment under
any of the special assessment laws listed in subsection (1) of
this section and the land is disqualified from such special
assessment, the county assessor shall furnish the owner with a
written explanation summarizing:
  (A) ORS 308A.706 (1)(d) (relating to change in special
assessment);
  (B) ORS 308A.727 (relating to change in use to open space use
special assessment for certain golf courses);
  (C) The administrative act necessary under ORS 308A.724 to
change the property to another classification described in this
paragraph; and
  (D) The imposition of any penalties that would result from the
disqualification if no requalification or reclassification is
made under one of the other special assessment laws listed in
this paragraph.
  (b) The written explanation required by this subsection shall
be given in conjunction either with the notice of
disqualification required under this section or with an order or
notice of disqualification otherwise provided by law.
  (c)(A) If no notice of disqualification is required to be made
by this section or other provision of law, the written
explanation required by this subsection shall be made by the
county assessor.
  (B) A written explanation made under this paragraph shall be
made by the assessor within 30 days of the effective date of the
disqualification.
  (6) Subsections (1) to (5) of this section do not apply if the
reason for the disqualification is:
  (a) The result of a request for disqualification by the
property owner; or
  (b) Because the property is being acquired by a government or
tax-exempt entity.
   { +  (7) Within 30 days after the date the notification
required under subsection (3) of this section is mailed, a
taxpayer intending to implement a remediation plan as defined in
ORS 308A.053 on the disqualified land that is the subject of the
notification must notify the assessor in writing of the
taxpayer's intention to seek certification for the remediation
plan. + }
  SECTION 8. ORS 307.394 is amended to read:
  307.394. (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;   { - or - }
   { +  (c) Machinery and equipment used primarily to implement a
remediation plan as defined in ORS 308A.053 for the period of
time for which the remediation plan is certified; or + }
    { - (c) - }   { + (d) + } Farm machinery and equipment used
primarily in any other agricultural or horticultural use or
animal husbandry or any combination of these activities.
  (2)(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.
  SECTION 9.  { + (1) The Director of the Department of Revenue
shall adopt rules necessary for administration of farm use
special assessment pursuant to a remediation plan under ORS
308A.056.
  (2) The Director of the Oregon State University Extension
Service may establish by rule a fee, payable by persons seeking
to implement remediation plans, in an amount necessary to
reimburse the Oregon State University Extension Service for the
costs of certifying the plans.
  (3) Only the portions of farmland on which the remediation plan
is actually implemented qualify for farm use special assessment
under ORS 308A.062 and 308A.068 pursuant to a remediation plan
under ORS 308A.056. + }
  SECTION 10. { +  (1) Farm use special assessment pursuant to a
remediation plan as defined in ORS 308A.053 may be granted for
tax years beginning on or after July 1, 2007.
  (2)(a) For tax years beginning before July 1, 2010:
  (A) Application for farm use special assessment pursuant to a
remediation plan as defined in ORS 308A.053 must be filed in
writing with the county assessor within 180 days after the
effective date of this 2009 Act.
  (B) A copy of the remediation plan must be submitted to the
assessor within 270 days after the effective date of this 2009
Act.
  (C) The remediation plan will be presumed to be certified
unless the plan is shown to be substantially impracticable,
ineffective or fraudulent.
  (b) Refund of property taxes under this subsection shall be
made under ORS 311.806 notwithstanding the time limitations in
ORS 311.806 and shall be paid without interest. + }
  SECTION 11. ORS 307.397 is amended to read:
  307.397.  { + (1) + } The following items of real property
machinery and equipment or tangible personal property are exempt
from ad valorem property taxation:
    { - (1) - }   { + (a) + } Frost control systems used in
agricultural or horticultural activities carried on by the
farmer;
    { - (2) - }   { + (b) + } Trellises used for hops, beans or
fruit or for other agricultural or horticultural purposes;
    { - (3) - }   { + (c) + } Hop harvesting equipment, including
but not limited to hop pickers;
    { - (4) - }   { + (d) + } Oyster racks, trays, stakes and
other in-water structures used to raise bivalve mollusks; or
    { - (5) - }   { + (e) + } Equipment used for the fresh shell
egg industry that is directly related and reasonably necessary to
produce, prepare, package and ship fresh shell eggs from the
place of origin to market, whether bolted to the floor, wired or
plumbed to interconnected equipment, including but not limited to
grain bins, conveyors for transporting grain, grain grinding
machinery, feed storage hoppers, cages, egg collection conveyors
 
and equipment for washing, drying, candling, grading, packaging
and shipping fresh shell eggs.
   { +  (2) A real property building, structure or improvement is
exempt from ad valorem property taxation if it:
  (a) Is used primarily to grow plants for agricultural or
horticultural production;
  (b) Is covered with polyethylene, fiberglass, corrugated
polycarbonate acrylic or any other transparent or translucent
material designed primarily to allow passage of solar heat and
light; and
  (c) Does not have a permanent heat source other than radiant
heating provided by direct sunlight. + }
  SECTION 12.  { + This 2009 Act takes effect on the 91st day
after the date on which the regular session of the Seventy-fifth
Legislative Assembly adjourns sine die. + }
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