Personal Property Assessment and Taxation
From the Oregon Department of Revenue
All personal property is, by law, valued at 100 percent of its real market value unless exempt by statutes. 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 307.020).
- 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 307.394).
- 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 307.394).
- 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.
- Major industrial properties appraised by the Department of Revenue will report on an industrial property return furnished by the department.
- For all other accounts appraised by the county assessor, 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.
The Bookkeeping Company will build a file and track your assets as your bookkeeping is being done. Then all you will need to do is review the asset list annually and give us the updates of items no longer in your control. We can then handle everything else for you.