The 2015 Oregon Legislature will consider a bill to end farm property tax exemptions in 2018. Currently, farmland is taxed at a reduced value through a special assessment program, and crops, livestock, and farm machinery are exempt, as are many other on-farm items. If the bill passes, Oregon farmers will see a steep increase in their state tax liability.
On the federal front, the House passed the Tax Increase Prevention Act (H.R. 5771, aka Tax Extenders Bill) on December 3, 2014, and the Senate followed suit shortly thereafter. Farm machinery, equipment, and software qualify for the Section 179 Deduction, but real property such as land, fences, buildings, or permanent structures does not. Limits are expanded to a maximum deduction of $500,000 through Dec 31, 2014. This measure covers only tax year 2014.
Next year, farm property tax exemptions will likely be debated in both the Oregon Legislature and Congress.
Disclaimer: Articles featured on Oregon Report are the creation, responsibility and opinion of the authoring individual or organization which is featured at the top of every article.