1. (1) Tangible personal property is assessed and taxed unless statutes specifically grant an exemption.

2. (2) “Use” of the property is the determining factor for granting an exemption.

   1. (a) Tangible personal property used exclusively for personal use and enjoyment by the owner is granted exemption from property tax.
   2. (b) Tangible personal property used in a trade or business is taxable. A trade or business is an activity performed for any form of compensation, personal reward or gain.

   3. (c) Tangible personal property that is used both for the owner’s personal use and as part of a trade or business is taxable.

      Example: Household furnishings in a Bed and Breakfast or adult foster home are taxable when used by anyone other than the owner. Items used exclusively by the owner for personal enjoyment are exempt from property tax, such as the bed where the owner sleeps and the armoire or dresser that contains the owners clothes.

Statutory/Other Authority

ORS 305.100

Statutes/Other Implemented

ORS 307.190

History

Renumbered from 150-307.190, REV 55-2016, f. 8-13-16, cert. ef. 9-1-16
RD 1-1995, f. 12-29-95, cert. ef. 12-31-95