Personal Property

# (1)

(1) Boats and vessels includes all floatable craft. See also ORS 308.260.

# (2)

(2) Merchandise and stock in trade, commonly referred to as inventories, include the following categories:

(a) Merchandise includes all classes of commodities which are obtained in a salable condition and held for sale in the ordinary course of business.

(b) Materials consist of goods purchased for use in manufacturing and upon which further work is necessary before they are available for disposal. Such goods may be raw materials or they may be partially fabricated commodities secured from others. Thus, things which are finished stock or merchandise for one establishment may be raw materials for another. However, when parts are manufactured and held for future use in manufacturing, they may be classed as finished parts but included in raw materials inventory.

(c) Supplies fall within two categories:

(A) Inventory Supplies consist of personal property owned by or in possession of the taxpayer, that are expended in the production of finished goods or will be consumed in the sale of the stock in trade of the taxpayer held for sale in the ordinary course of his business.

(B) Noninventory Supplies include those items which are not to be expended in the production of finished goods or not to be sold to customers.

(d) Work in process applies to all goods to which manufacturing services have been applied and on which further operation will be necessary before the product is normally ready for disposition. The value of work in process includes material and any labor and factory service (overhead) which have been exerted in bringing the work to the present state of completion.

(e) Finished stock consists of completed products which are available for disposal, comparable to a dealer's merchandise. See ORS 308.250 — Processor's Exemptions, and ORS 311.211 — Omitted Property Statutes.

# (3)

(3) Livestock consisting of all domesticated or confined animals, birds, bees, fish and reptiles.

# (4)

(4) Movable machinery, movable tools and movable equipment include items readily movable as opposed to apparently stationary or fixed items. See paragraph (2)(b) of OAR 150-307-0010.