Allows property tax special assessment for land under processing facilities.
Summary
HB 4130 expands Oregon’s farm-use property tax rules to expressly include land used under or in conjunction with certain agricultural processing facilities. The bill amends the definition of “farm use” in ORS 308A.056 to add land under processing facilities, adjacent land used with those facilities, and related application requirements for property owners seeking special assessment. It also clarifies that farm-use land can include activities such as preparing, storing, donating, or otherwise disposing of farm products, and it preserves existing treatment for a range of agricultural uses including crops, livestock, dairying, equines, aquaculture, remediation plans, woodlots, and biofuel processing in specified circumstances.
Impact
The bill changes Oregon property tax law by allowing otherwise eligible exclusive and nonexclusive farm-use land to qualify for special assessment when it is used under or in conjunction with a qualifying processing facility. It amends ORS 308A.056, 308A.062, and 308A.077 to define “processing facility,” require owners to file applications with county assessors by April 1, and require documentation showing the facility meets the statutory definition. The changes apply to property tax years beginning on or after July 1, 2027, and are intended to broaden eligibility for farm-use valuation for certain on-farm or farm-related processing operations.
Sentiment
The bill appears to have been broadly supported and noncontroversial in the legislative process. It passed the House committee 6-0, the House floor 54-0, the Senate committee 4-0, and the Senate floor 29-0, indicating unanimous or near-unanimous approval at each stage. The available record does not include committee testimony, but the vote history suggests a consensus that the bill provides a useful clarification or expansion of farm-use tax treatment for agricultural processing.
Contention
No major opposition is reflected in the available materials. The main policy issue implicit in the bill is whether land tied to processing facilities should receive the same special property tax treatment as traditional farm-use land, which could affect county tax rolls and the scope of agricultural tax preferences. Any practical concerns would likely center on how assessors verify that a facility qualifies and whether the new definition could be applied too broadly, but no specific objections or dissenting viewpoints appear in the record.