Personal Property Assessment and Taxation

Oregon law requires all personal property to be valued at 100 percent of the real market value.  (ORS 308.232)  Personal Property is taxable in the county where it is located as of the assessment date, January 1 at 1 a.m.

TAXABLE PERSONAL PROPERTY

Taxable personal property includes machinery, equipment, furniture, etc., used previously or presently in a business (including any property not currently being used, placed in storage, or held for sale).

Examples of taxable personal property:

· Amusement devices/equipment.

· Non-inventory supplies.

· Barber and beauty furniture/equipment.

· Garage and service station tools/equipment.

· Leased equipment.

· Medical equipment.

· Movable machinery, tools, and equipment (such as logging and construction

Equipment, lift trucks, and equipment used in service industries).

· Office furniture/equipment.

· Store furniture/equipment.

· Libraries (such as repair manuals, electronic media, compact discs, videos, tapes, sample books, law books.

· Fixed load/mobile equipment.

· Floating property.

TAX-EXEMPT PERSONAL PROPERTY

These items are exempt from property tax:

·Intangible personal property, Money at interest, bonds, notes,

Shares of stock, business records, computer software, surveys and

designs, and the materials on which the data are recorded (paper,

tape, film, etc.) ORS 301-020

            ·All items held exclusively for personal use.  Household goods,

            furniture, clothing, tools, and equipment used exclusively for

            personal use in and around your home (ORS 307.190)

·Farm animals.  Livestock, poultry, fur-bearing animals, and bees

(ORS 307.400)

· Inventories.  Items of tangible personal property which are or will

be sold in the ordinary course of business (materials, containers, goods

in process, and finished goods) (ORS 307.400)

· Farm machinery and equipment (ORS 307.400)

· Licensed vehicles other than fixed load/mobile equipment (ORS 801.285)

FILING YOUR PERSONAL PROPERTY TAX RETURN

Each individual, partnership, firm, or corporation that has taxable personal property must file a return by March 1.  A return form may be mailed to you by the county assessor prior to January 1, if you were assessed the previous year.  You must report property you own or had in your possession as of January 1 at 1 A.M.  If you do not receive a form from the assessor, you are still obligated to obtain and file a personal property tax return.  There is a penalty for late filing.  If you need help completing the form, contact your county assessor’s office.

If you sell your business, notify the county assessor to avoid future liability on the personal property.

EXTENSION FOR LATE FIING

In certain circumstances, you may request an extension....All extension requests must be submitted in writing on or before March 1.  Contact your county assessor for further information.

PENALTY FOR LATE FILING

If you report your taxable personal property along with real property on an industrial property return and your return is filed late, a penalty for $10 for each $1,000 (or fraction) of assessed value will be assessed.  This penalty shall not be less than $10, and not more than $5,000. (ORS 308.295(3)

If you report only taxable personal property on your return, the penalty charge increases periodically.  If your return is filed after March 1 but on or before June 1, a penalty of 5% of the tax will be charged.  If the return is filed after June 1 but on or before August 1, the penalty increases to 25% of the tax.  After August 1, the penalty is 50% of the tax.

APPEALS

If you felt he county assessor has estimated the value of your property incorrectly, you have the right to appeal.  But your appeal must be based on the property’s value, not on the amount of taxes owed.  To receive a change in your assessment, you must convince your county board of property tax appeals that your property is incorrectly valued..  You must support your belief with evidence such as appraisal reports and comparable sales.  You also have the right to appeal if you believe you were charged a late filing penalty in error.  For more information on property value appeals, please call the Yamhill County Assessor at 503-434-7521 and ask for Personal Property.