| Temporary rules for the new food processing property tax exemption (SB 479) |
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December 20, 2005
The Oregon Department of Agriculture (ODA) is preparing to adopt a set of temporary administrative rules governing the process of certifying eligible machinery and equipment (M&E) for property tax exemption under a new law (SB 479) passed by the 2005 Legislature. The Department of Agriculture established these temporary rules after consulting with the Oregon Department of Revenue and members of the food processing industry. By adopting these temporary rules through emergency rulemaking, food processors will have time to certify their M&E before the exemption claim filing deadline in March 2006. Certification of M&E will begin as soon as possible after the emergency rules are in place.
There is also a formal rule making process, which includes public hearings within 180 days of the implementation of these new temporary rules (January 1, 2006). During the formal rulemaking process, input from the public could result in modifications of the temporary rules adopted during this emergency rulemaking process.
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| Step #1 |
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The food processor makes a written request to ODA for certification of M&E that is eligible for tax exemption. ODA provides the request forms. These forms are also available from the Department of Revenue Web pages at http://www.oregon.gov/DOR/PTD/303-085.shtml
Send you written request to:
ODA Food Safety Division
635 Capitol St NE
Salem, OR 97301-2532
Still have questions?
Go to the FAQ page or call the Food Safety Division at 503-986-4720.
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| Step #2 |
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The completed request form is received by the Food Safety Division and a certification visit is scheduled with the food processor. The certification visit will be scheduled only after the form is correctly and completely filled out. Forms that are incorrectly or incompletely filled out will be returned, possibly delaying scheduling of the certification visit. The request forms provided by ODA have been developed and patterned after the property tax filings to simplify the request/certification/exemption process for you.
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| Step #3 |
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During the M&E certification visit to the food processor, ODA verifies that all pieces of M&E qualify for the tax exemption. The food processor should assign a company representative to assist ODA during the certification visit who is familiar with the tax exemption request and the location of all the machinery and equipment listed on the request form. ODA signs the appropriate paperwork stating that the M&E listed is certified for this tax exemption. The original form is left with the food processor and ODA sends a copy to the Department of Revenue, Valuation Section.
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| Step #4 |
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The food processor files its exemption claim report (including list of M&E) by March 1 to the appropriate agency.
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| Step #5 |
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The food processor files its annual real property return with the county or the industrial property return with the state by the appropriate deadline. The county/state checks the RPR/IPR against the listing filed with the exemption claim report and adjusts the real market value to reflect the exemption of the certified M&E.
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| Step #6 |
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Each year (for the next five years) following the M&E certification, the food processor signs a form informing ODA of changes, if any, to the list of certified M&E.
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| More information |
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We are proposing a simple process. Your help in correctly listing M&E for certification and prompt scheduling of a certification visit with an ODA inspector will greatly reduce the time in completing the process. In addition, early filing of the request form is encouraged due to possible backlog in the certification visit schedule as the March 1 deadline approaches.
If you have specific questions, please call Ron McKay or Mike Govro at the Oregon Department of Agriculture at 503-986-4720.
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