justicedao/ipfs_state_laws huggingface dataset:
150-317-1220 Employee Compensation: Labor Cost Subtraction (1) Definitions. For purposes of the labor cost subtraction, as calculated under OAR 150-317-1200: (a) “Employee” has the meaning given that term in OAR 150-316-0255(5). “Employee” does not include: (A) Partners in a partnership who receive guaranteed payments or distributive income; (B) Members in a Limited Liability Company (LLC) who receive guaranteed payments or distributive income; (C) Statutory employees described in the Internal Revenue Code (IRC) section 3121(d)(3); or (D) Independent contractors, as defined in ORS 670.600. (b) “Compensation” has the meaning given that term in ORS 317A.100(1)(b)(H). (2) The labor cost subtraction, as calculated under OAR 150-317-1200, does not include: (a) Compensation in excess of $500,000 paid to any single employee; (b) Payroll taxes, including but not limited to, Social Security, Medicare, and Federal unemployment. Example 1 : A2zk Tech Inc. employs 50 workers who meet the requirements to be considered employees. Each employee receives a base annual salary of $375,000. In addition, the company pays commissions and bonuses based on performance. The company also provides its employees with fringe benefits, including health insurance and employer-provided retirement contributions, at a total cost of $15,000 per employee. Assume that A2zk also pays $25,000 in payroll taxes for each employee. Although A2zk Tech pays taxes for each employee, any tax amount paid for its employees is not used to calculate the total compensation. During 2020, 10 of the employees earned $150,000 each in commission and bonuses. Because the total compensation of each of those 10 employees exceeds $500,000, ($375,000 + $15,000 + $150,000 = $540,000), A2zk Tech calculates the total labor cost as [(40 * $390,000) (base salary plus benefits) + (10 * $500,000)] = $20,600,000. Statutory/Other Authority: ORS 305.100 & 317A.100 Statutes/Other Implemented: ORS 316.167, 317A.100 & 670.600 History: REV 11-2020, adopt filed 06/24/2020, effective 06/28/2020 REV 3-2020, temporary adopt filed 03/04/2020, effective 03/06/2020 through 09/01/2020
150-317-1320 Estimated Tax: Unitary Groups and Apportioned Returns (1) If two or more entities file a single Corporate Activity Tax (CAT) return as a unitary group, as described in ORS 317A.100(20), each shall be jointly and severally liable for the filing and payment of the estimated tax liability. Estimated tax payments shall be made on a combined basis. (2) See OAR 150-317-1310 for an explanation of how to compute an underpayment of estimated tax for entities filing a single CAT return as a unitary group. (3) Persons that are required to apportion the amount of the cost input or labor cost subtraction under ORS 317A.119 between Oregon and other states, are required to use either the current period’s actual or the prior full-year’s apportionment factor, as calculated under OAR 150-317-1200, to meet the annualization exception to underpayment of estimated taxes. The prior year’s apportionment factor may only be used if the prior year’s return covered a full 12 months. Statutory/Other Authority: ORS 305.100 & 317A.143 Statutes/Other Implemented: ORS 314.505, 314.525, 317A.106, 317A.113, 317A.137 & 317A.149 History: REV 5-2023, minor correction filed 01/26/2023, effective 01/26/2023 REV 11-2020, adopt filed 06/24/2020, effective 06/28/2020 REV 15-2019, temporary adopt filed 12/30/2019, effective 01/01/2020 through 06/28/2020
150-317-1410 Motor Vehicle Resale Certificate – Documentation Required (1) Definition. For the purposes of this rule, “new vehicle” has the definition given to it in 15 U.S.C. Section 2821(8) . (2) Receipts from the sale or transfer of a motor vehicle between motor vehicle dealers are excluded from commercial activity, provided that the transfer occurs for the purpose of resale and is based on the transferee’s need to meet a specific customer’s preference or the transfer is of a new vehicle between franchised dealerships. (3) Motor vehicle dealers excluding receipts from the sale or transfer of a motor vehicle between dealers for resale to meet a specific customer’s preference must retain a resale certificate documenting the excluded transaction provided under ORS 317A.100(1)(b)(W). A resale certificate is not required for transfers of new vehicles between franchised dealerships. (4) Any document provided before or at the time the seller bills the purchaser may serve as a resale certificate if it contains the following information: (a) The seller’s name, address, federal identification number, and dealer license number from the appropriate licensing jurisdiction; (b) The purchaser’s name, address, federal identification number, and dealer license number from the appropriate licensing jurisdiction; (c) A description of the vehicle, including the vehicle identification number, serial number, or other identifying number, and the make, model, and year of the vehicle; (d) A statement, signed by the purchaser, their employee, or authorized representative, affirming that the vehicle described in the document is purchased or transferred for resale to meet a specific customer’s preference; and (e) The date ownership of the vehicle is transferred. Statutory/Other Authority: ORS 305.100 & 317A.143 Statutes/Other Implemented: ORS 317A.100(1)(b)(W) History: REV 17-2021, amend filed 12/15/2021, effective 01/01/2022 REV 11-2020, adopt filed 06/24/2020, effective 06/28/2020 REV 2-2020, temporary adopt filed 01/27/2020, effective 02/01/2020 through 07/29/2020
150-317-1420 Damages Received as the Result of Litigation (1) Damages, including settlement proceeds, received by a taxpayer as a result of litigation are commercial activity to the extent they reimburse the taxpayer for transactions and activity during the regular course of the taxpayer’s trade or business. (2) To the extent receipts stem from damages received as the result of litigation and those receipts are in excess of what would have been received had the taxpayer not been involved in litigation, the taxpayer may exclude the amount in excess from its calculation of commercial activity. (3) Damages not excluded by ORS 317A.100(1)(b)(L) are subject to the corporate activity tax in the year those amounts are realized, regardless of when the litigation was initiated. (4) All facts and circumstances may be considered to determine if the damages were received as result of litigation. Example 1: Widget Co., a business with Oregon commercial activity, sues Items Inc. for selling defective equipment in Oregon. Widget Co. wins the lawsuit and is awarded $1 million for the cost of the defective equipment and $2 million for the loss of business income in Oregon. Widget Co. includes the $2 million amount received for the loss of business income in its commercial activity. Example 2: In the regular course of its business, Widget Co. allows other manufacturers to use its patented process in exchange for a royalty. Widget Co. discovers that Items Inc. is using its patented process without paying the royalty fee. Widget Co. files a lawsuit for patent infringement. Widget Co. wins the lawsuit and is awarded compensatory damages of $2 million for the loss of business income in Oregon, $500,000 for punitive damages, and $60,000 for attorney fees. Widget Co. includes $2 million in its commercial activity because that is the amount Items Inc. would have paid in royalties. The $500,000 of punitive damages and the $60,000 of attorney fees are not included in Widget Co.’s commercial activity because those amounts would have never been received, had there not been a lawsuit. Example 3 : Widget Co. and Items Inc. enter into settlement negotiations over Items Inc.’s alleged breach of a contract. As a result of the settlement, Items Inc. agrees to pay Widget Co. $1 million for the cost of the contract in Oregon and $50,000 as a penalty for the breach of contract. Widget Co. includes the $1 million for the breach of contract as commercial activity and excludes the $50,000 penalty. Statutory/Other Authority: ORS 305.100 & 317A.143 Statutes/Other Implemented: ORS317A.100(1)(b)(L) History: REV 4-2023, minor correction filed 01/26/2023, effective 01/26/2023 REV 27-2020, adopt filed 12/23/2020, effective 01/01/2021
150-317-1500 Good Faith Effort (1) Good Faith Effort. A taxpayer’s good faith effort to comply with ORS 317A.137(2) is demonstrated by the extent of the taxpayer’s efforts to accurately estimate and pay the quarterly installment as required under ORS 317A, and OARs 150-317-1300, 150-317-1310, and 150-317-1320. (a) For tax years beginning on or after January 1, 2020, the following circumstance demonstrates good faith: The taxpayer made a reasonable estimate of the quarterly installment based on information available to the taxpayer at the time the quarterly installment was due. (b) For the tax year beginning January 1, 2020 and ending before January 1, 2021, the following circumstances demonstrate good faith: (A) The taxpayer cannot reasonably determine, at the time the quarterly installment is due, whether the taxpayer will have CAT liability for the 2020 tax year, due to the negative impact of COVID-19, after taking into consideration the exclusions and subtractions provided in ORS 317A; (B) The taxpayer did not have sufficient funds to pay the required installment for the quarter, due to the impact of the COVID-19 pandemic on the taxpayer’s business; or (C) The taxpayer cannot reasonably calculate the required quarterly installment or annual tax liability due to the impact of the COVID-19 pandemic on the taxpayer’s business. (2) The department will not assess the penalty imposed under ORS 317A.161(2) for nonpayment, underpayment, or underreporting of the estimated tax installment for any quarter of tax year 2020 if the taxpayer demonstrates a good faith effort, as defined in Section 1 of this rule, to accurately estimate and pay the quarterly installment required under ORS 317A.137. (3) Documentation. The department may require documentary proof to substantiate assertions of good faith. Taxpayers must retain documentation showing good faith effort as defined in section (1). Taxpayers are not required to submit this documentation to the department, unless requested by the department. Statutory/Other Authority: ORS 305.100 & 317A.143 Statutes/Other Implemented: ORS 317A.137 & 317A.161 History: REV 23-2020, adopt filed 11/30/2020, effective 12/01/2020 REV 10-2020, temporary adopt filed 06/04/2020, effective 06/05/2020 through 12/01/2020
150-318-0010 Incorporation by Reference of Rules of ORS Chapters 314, 316 and 317 So far as they may be pertinent, the rules approved by the Department of Revenue pertaining to ORS Chapter 314, Income Taxation generally, and to ORS Chapter 317, The Corporation Excise Tax Act of 1929, are incorporated herein by reference and made applicable to like sections of ORS Chapter 318. Statutory/Other Authority: ORS 305.100 Statutes/Other Implemented: ORS 318.031 History: Renumbered from 150-318.000, REV 52-2016, f. 8-13-16, cert. ef. 9-1-16 1-69 1-65 1955
150-318-0020 Effective Date of Act ORS Chapter 318 became law on August 3, 1955. Statutory/Other Authority: ORS 305.100 Statutes/Other Implemented: ORS 318.010 History: Renumbered from 150-318.010, REV 52-2016, f. 8-13-16, cert. ef. 9-1-16 1955
150-318-0030 Relation of Act to ORS Chapter 317 If a corporation is “doing business” in Oregon and is therefore subject to ORS Chapter 317, The Corporation Excise Tax Act of 1929, the income taxed under Chapter 317 is not subject to taxation under ORS Chapter 318. A foreign or domestic corporation which is authorized to do business within this state, having qualified with the Corporation Commissioner, which is not “doing business,” but nevertheless receives income ascribable to Oregon, is subject to ORS Chapter 318. There is no provision for election as to which Act is applicable as to what income; the facts will govern in each instance. Statutory/Other Authority: ORS 305.100 Statutes/Other Implemented: ORS 318.020 History: Renumbered from 150-318.020(1), REV 52-2016, f. 8-13-16, cert. ef. 9-1-16 1-65 1955
150-318-0040 Income Subject to Tax Under ORS Chapter 318 (1) The Oregon Corporation Income Tax is imposed on corporations with income derived from sources within this state. The term “income derived from sources within this state” means income from activities in this state that are insufficient to constitute “doing business.” “Doing business” is defined in ORS 317.010(4). (2) Oregon’s jurisdiction to tax is limited by the Due Process Clause of the U.S. Constitution, which requires the existence of some minimum connection between the state and the person, property or transaction it seeks to tax. This minimum connection, making income subject to the Oregon income tax, may be satisfied by: (a) Maintaining tangible or intangible property in Oregon; (b) Entering into franchising or licensing agreements for use of a franchise or license in Oregon; (c) Receiving franchise fees or royalties from Oregon sources; (d) Selling or otherwise disposing of a franchise or license used in Oregon; (e) Selling or otherwise transferring tangible personal property pursuant to a franchise or license to a franchisee or licensee within the state; or (f) An isolated sale of real property in this state. (3) A corporation with receipts from royalties or franchise fees or the sale or transfer of tangible personal property pursuant to franchise or license agreements may be subject to the Corporation Excise Tax if the corporation engages in activities that rise to the level of doing business in Oregon. Such activities include inspection of the franchisees’ businesses or records and providing training in Oregon to franchisees. Such a corporation is not subject to the Corporation Income Tax. Statutory/Other Authority: ORS 305.100 Statutes/Other Implemented: ORS 318.020 History: Renumbered from 150-318.020(2), REV 52-2016, f. 8-13-16, cert. ef. 9-1-16 REV 11-2006, f. 12-27-06, cert. ef. 1-1-07 REV 2-2003, f. & cert. ef. 7-31-03 REV 7-1998, f. 11-13-98, cert. ef. 12-31-98 RD 7-1989, f. 12-18-89, cert. ef. 12-31-89 RD 7-1983, f. 12-20-83, cert. ef. 12-31-83 1-65 1955
150-318-0050 U.S. Government Obligations According to Title 31, United States Code, section 3124, interest and dividend income from obligations of the federal government are exempt from state income tax. Oregon Administrative Rule 150-316-0509 identifies the types of income that qualify and do not qualify for a subtraction from Oregon taxable income. Statutory/Other Authority: ORS 305.100 Statutes/Other Implemented: ORS 318.060 History: Renumbered from 150-318.060, REV 52-2016, f. 8-13-16, cert. ef. 9-1-16 REV 11-2006, f. 12-27-06, cert. ef. 1-1-07
150-320-0012 Location of Amusement Devices (1) For purposes of the increased tax on amusement devices imposed under ORS 320.012, the increased tax is imposed for each device present at a location as of the date the applicable net receipts threshold is reached under either ORS 320.012(1) or (2). (2) A video lottery game terminal that is not operating because the terminal has been disabled for consumer play by the Oregon Lottery and that has not been removed by Oregon Lottery from the amusement device operator’s premises is not considered “present at a location” for purposes of the increased tax imposed under ORS 320.012. (3) This rule applies to increased taxes that become due on or after April 1, 2020. Statutory/Other Authority: ORS 305.100, 320.012 & 320.110 Statutes/Other Implemented: ORS 320.012 History: REV 46-2020, adopt filed 12/23/2020, effective 01/01/2021 REV 12-2020, temporary adopt filed 07/24/2020, effective 07/29/2020 through 01/24/2021
150-320-0030 Waiver of Penalty The provisions of OAR 150-305-0068 shall be followed to determine when the department may waive a penalty charged for failure to file or pay tax by the due date. Statutory/Other Authority: ORS 305.100 & 320.110 Statutes/Other Implemented: ORS 320.075 & 320.080 History: REV 4-2019, amend filed 12/11/2019, effective 01/01/2020 Renumbered from 150-320.080, REV 36-2016, f. 8-12-16, cert. ef. 9-1-16 RD 7-1985, f. 12-26-85, cert. ef. 12-31-85
150-320-0041 Liability for Unpaid State Lodging Taxes (1) For purposes of this rule, “transient lodging tax collector” has the meaning given under ORS 320.300 and includes, but is not limited to, an officer, member, or employee of the transient lodging tax collector that provides the sale, service, or furnishing of transient lodging, if, among other duties, that individual has: (a) Authority to see that the state lodging taxes are paid when due; (b) Authority to prefer one creditor over another; (c) Authority to hire and dismiss employees; (d) Authority to set employees’ working conditions and schedules; (e) Authority to sign or co-sign checks; (f) Authority to compute and sign state lodging tax returns; (g) Authority to make fiscal decisions for the business; or (h) Authority to incur debt on behalf of the business. (2) It is the duty of a transient lodging tax collector to hold in trust any amount of state lodging tax collected from the sale, service, or furnishing of transient lodging and to assume custodial liability for amounts to be paid to the department. Any transient lodging tax collector who fails to pay the state lodging tax when due is subject to penalties, as provided by law, as any other taxpayer who fails to file a return or pay a tax when due. (3) If a transient lodging tax collector fails to file returns or to pay any collected tax when due, any or all officers, members, and employees may be held personally responsible, as provided in this rule, for the returns and payments together with any interest and penalties, that are due. (4) To be held personally liable for unpaid states lodging tax, a person must be a transient lodging tax collector. In addition, the person must be in a position to pay the state lodging tax or direct the payment of the state lodging tax at the time the duty arises to collect or pay over the state lodging taxes. The person may be held personally liable if the individual was, or should have been aware, that the state lodging taxes were not paid to the department. A transient lodging tax collector cannot avoid personal liability by delegating their responsibilities to another. (5) The following factors do not preclude a finding that an individual is liable for the payment of state lodging taxes: (a) Lack of willfulness in failing to pay over the required state lodging tax; (b) The individual’s receipt of remuneration; (c) Maintenance of full-time employment elsewhere; (d) Another individual is also liable for the same state lodging taxes; (e) A corporate bylaw or partnership agreement position description to the contrary; (f) Absence of signatory authority on a business bank account; (g) Absence of bookkeeping or recordkeeping duties; (h) Absence of authority to hire, fire, and to set working conditions and schedules; or (i) Delegation to another person any functions indicating liability. Statutory/Other Authority: ORS 305.100 Statutes/Other Implemented: ORS 320.325 History: REV 6-2022, adopt filed 06/03/2022, effective 06/03/2022
150-320-0060 Lodging Tax Information Sharing with Local Governments (1) The Department of Revenue and units of local government will exchange transient lodging tax information quarterly as authorized in ORS 320.332. (2)(a) A unit of local government may receive access to information received by the department under ORS 320.305 to 320.340 upon written request. The request must be on the form provided by the department. (b) By submitting the written request, the unit of local government agrees this is a reciprocal exchange of transient lodging tax information. (3) The unit of local government will comply with the Department of Administrative Services Statewide Information Security Standards. (4) A unit of local government that receives state transient lodging tax information is required to notify the state transient lodging taxpayers, in the event that there is a breach of the local government’s computer as required in ORS 646A.604. (5) The unit of local government may use state transient lodging tax information described in ORS 320.332 for the administration of the local transient lodging tax. Unlawful use of the information is prohibited as a violation of ORS 314.835 and ORS 320.332. Such use will terminate participation in the transient lodging tax information exchange. Conditions of the termination will be determined on a case by case basis. (6) The unit of local government will limit access to the state transient lodging tax information to those officers, employees, and agents with a need to know in order to perform their duties. (7)(a) The unit of local government will provide the department with valid secrecy certificates signed by all officers, employees, and agents who may have access to the state transient lodging tax information before the department will allow access. (b) To maintain compliance with ORS 320.332, the unit of local government must provide the department with the valid signed secrecy certificates within 30 days for all newly hired officers, employees, and agents who may have access to the state transient lodging tax information. (c) The secrecy certificate must be on a form provided by the department and must be renewed annually. (8)(a) The department will provide the unit of local government a limited number of accesses for the purpose of exchanging transient lodging tax information. (b) The unit of local government must electronically access their account to download the state transient lodging tax information and upload the local government’s transient lodging tax information using a template provided by the department. (c) The file will remain available until it is replaced with the next quarterly file. (9) The unit of local government must submit a written request to cease participation in the transient lodging tax information exchange on a form prescribed by the department unless automatically terminated by a violation of any provision of this rule. Statutory/Other Authority: ORS 305.100 & 320.332 Statutes/Other Implemented: ORS 314.835, 314.840 & 320.332 History: REV 29-2018, adopt filed 12/28/2018, effective 01/01/2019
150-320-0365 Administration of Local Lodging Taxes Unless the context requires otherwise, the department will apply the same rules to administer local transient lodging taxes under agreements with local governments as are used in the administration of the state transient lodging tax program. See OAR 150-320-0040 to OAR 150-320-0060 for rules adopted under ORS 320.300 to 320.330. In addition, the provisions of rules adopted pursuant to ORS Chapters 305, 314, or 320 as to the audit and examination of reports and returns, periods of limitation, determination of and notices of deficiencies, assessments, collections, liens, delinquencies, claims for refund and refunds, conferences, appeals to the Oregon Tax Court, stays of collection pending appeal, confidentiality of returns and penalties related thereto, and the procedures relating thereto, apply to the determination of taxes, penalty, and interest under local transient lodging taxes statutes and ordinances. Statutory/Other Authority: ORS 305.100 & 320.065 Statutes/Other Implemented: ORS 305.620 & 305.365 History: REV 6-2021, adopt filed 06/28/2021, effective 07/01/2021 REV 2-2021, temporary adopt filed 01/07/2021, effective 01/07/2021 through 07/05/2021