Property tax exemptions at risk, lobbyist says

Published 8:52 am Wednesday, February 27, 2013

By MITCH LIES

Capital Press

SALEM — A long-standing personal property tax exemption for farmers is coming under the microscope and could be at risk in a bill lawmakers are considering this session.

House Bill 2504 calls for the state to end tax breaks on certain personal farm property — tax breaks that have been in place, in some cases, since the 1960s.

Among property identified in the bill are farm machinery, irrigation equipment livestock, grain, hay and seed. All currently are exempt from personal property taxation.

Roger Beyer, a lobbyist for dairy, grass seed and small woodlands owners, said the bill “is the worst bill for agriculture in the session.”

Speaking at the 2013 convention of Oregon Dairy Farmers in Salem, Beyer said lawmakers in the House Revenue Committee, which introduced the bill, have assured him the exemptions are not targeted for elimination, but only for review.

“They are saying that this is just a review process,” he said, “that they need to look and make sure the exemptions are doing what they are intended to do.”

Even so, he said, with lawmakers looking to create revenue wherever they can, the bill concerns him.

“Anything in a review process, if it has money attached to it, they are going to be very interested in taking a very close look at it and doing away with that exemption,” he said.

“We don’t need a review of these exemptions. These exemptions are doing exactly what they are supposed to do: They are helping keep you in business, and providing a safe and secure product for Oregon consumers and the world’s consumers, in your case,” Beyer said.

“Public enemy number one,” he said, “that is how I describe (HB2504) for agriculture.”

The bill has been assigned to the House Revenue Committee, which introduced the bill. As of press time, no hearing was scheduled.

Marketplace