Oregon Administrative Rules
Chapter 150 - DEPARTMENT OF REVENUE
Division 307 - PROPERTY SUBJECT TO TAXATION
Section 150-307-0460 - Personal Property Used for Placing Farm Crops in Storage
Current through Register Vol. 63, No. 9, September 1, 2024
(1) Definitions:
Example: If an unlicensed farm vehicle is used 45 percent of the time to move cleaned, sorted, washed and bagged carrots ready for market (PRODUCT); 30 percent of the time to move freshly-picked carrots from the field to the warehouse or cold storage facility; and 25 percent of the time sitting idle, then the vehicle is used primarily in a nonexempt status and is fully assessable, even though that use is not 50 percent or more of the time available.
(2) Machinery and equipment used to place a farm crop in storage are exempt from taxation. However, once processing of the crop is begun, it is no longer a crop, but a product. When the same machinery and equipment are used for both placing in storage and processing the primary use is what determines its assessment status.
Example: Apples are picked and go directly into cold storage. This would be considered "placing in storage of farm crops." When these same apples are sorted, washed or boxed it becomes a product and placing back into cold storage until sold is not considered "placing in storage of a farm crops." At this point apples change from a crop to a product.
Stat. Auth.: ORS 305.100
Stats. Implemented: ORS 307.400
