1. (1) Definitions:

   1. (a) “Dairy” means a farm or the department of farming that is concerned with the production of milk, butter, cheese or other dairy products (from a cow or other domestic animal, such as a goat).
   2. (b) “Dairy Products” means butter; all varieties of cheese; frozen dessert mixes containing milk; cream or nonfat milk solids; evaporated, condensed, concentrated, powdered, dried or fermented milk; whey; cream and skimmed milk.
   3. (c) “Off-site” means all dairying related activities not located or occurring at the site of the dairy.
   4. (d) “On-site” means all dairying related activities located or occurring at the site of the dairy.
   5. (e) “Processing” means altering or modifying raw milk in any way to produce dairy products for human consumption.
   6. (f) “Site” means a farm, whether a single parcel or several contiguous parcels under common ownership in a location whose zoning permits farming that is used for an integrated purpose and appraised as a single unit, whether that property is taxed as a single account or multiple accounts.
2. (2) All machinery and equipment in on-site use or held for such use for the raising of dairy animals, or the processing, storage, and sale of milk or dairy products, up until the point it is first sold or otherwise leaves the site, is exempt from taxation.
3. (3) For a dairy that uses off-site operations for the processing, storage and/or sale of milk or dairy products, the equipment used off-site is taxable, unless otherwise exempt. Only equipment used on-site up until the milk or dairy product is sold or otherwise leaves the on-site dairy is exempt from taxation under this rule.

Statutory/Other Authority

ORS 305.100

Statutes/Other Implemented

ORS 307.394

History

REV 4-2025, adopt filed 07/16/2025, effective 07/16/2025