Most people know that property tax applies to real property, such as land and buildings. However, some may not know that property tax also applies to Business Personal Property. The characteristic that distinguishes Business Personal Property from real property is mobility. Business Personal Property is property that is not affixed to, or part of, real estate.
Business Personal Property may include but is not limited to furniture, fixtures, machinery, equipment, office equipment, etc.
For assessment and taxation purposes, when we speak of Personal Property we are effectively referring to Business Personal Property under current Oregon law. Taxable Business Personal Property includes machinery, equipment, furniture, etc. used by a business, including any property not currently being used, placed in storage, or held for sale. However, Business Personal Property taxes are not applicable to business inventories or intangible property such as copyrights and trademarks.
Business Personal Property is subject to the same levy rate as real property. By state law, the county assessor is responsible for the assessment of all taxable Business Personal Property. The Department of Revenue is also involved in the administration of property taxes and advises assessors on how to assess property to assure uniformity of assessment and taxation throughout the state.
Filing a Confidential Business Personal Property Return
If you are a business that owns, uses, or leases taxable Business Personal Property you must complete and file a Confidential Business Personal Property Return by
March 15. With your return you must provide a listing of all your taxable Personal Property that was located in the county at 1:00 a.m. on January 1. If you have multiple business locations, you must complete a separate return for each location. As a business owner, you are responsible for filing a Personal Property return each year that you have taxable property, even if you do not receive the form by mail.
Oregon law requires that Business Personal Property be valued at 100 percent of its real market value. The assessed value is allocated to the taxing district(s) based on where the property is located. If you need a blank return please refer to the forms section above.
Your return will help the Assessor assess your Business Personal Property accurately. In some cases an appraiser may inspect your property. Your return will remain confidential at all times.
If the return is filed late, there is a graduated late filing penalty. If the return is postmarked or received after March 15, but on or before June 1, a penalty of 5% of the tax is charged. If it is postmarked or received after June 1, but on or before August 1, the penalty is 25% of the tax. After August 1, the late filing penalty is 50% of the tax assessed. If you do not file, the penalty will be 50% of the tax.