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Bill Clarifying Farm-Processing Land Tax Break Advances; Requires 25% On-Farm Product Certification

Oregon Senate Committee on Rules · March 4, 2026
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Summary

House Bill 4130A, which clarifies when land under farm processing facilities qualifies for the farmland special assessment and requires a 25% on-farm product certification in the first year, passed the Rules Committee and will go to the floor.

House Bill 4130A, a technical measure to clarify how land under certain farm crop and processing facilities qualifies for the farmland special assessment, advanced from the Senate Rules Committee on Wednesday.

Representative Shelly Boshart Davis, sponsor of the bill, described the measure as a targeted fix to reduce litigation and provide predictability to family farms and county assessors. "This bill clarifies when land under and in conjunction with certain farm buildings qualifies for the farm tax special assessment," she told the committee, noting the bill relies on existing land-use definitions and requires a farmer seeking the special assessment to certify that at least 25% of the processed product comes from their own farm in the first year of application.

Rich Angstrom of the Oregon Property Owners Association said the proposal addresses an undefined legal distinction between "preparing" and "processing" and will reduce appeals and inconsistent assessor decisions. The committee noted the measure has no revenue impact and minimal fiscal effect for counties and asked no further questions.

In a subsequent work session, the committee moved HB 4130A to the floor with a 'do pass' recommendation; the motion passed by roll call. Senator Thatcher was identified as the carrier for the measure.

What's next: HB 4130A will proceed to the floor for further consideration.