justicedao/ipfs_state_laws huggingface dataset:
150-314-0323 Estimated Tax: Interest on Underpayment (1) When an estimated tax payment is underpaid, as defined in OAR 150-314-0315, interest accrues on the underpaid amount at the rate provided in OAR 150-305-0140 from the due date of the payment to the earlier of the date the tax is paid or the date the tax return is due. (2) Interest on underpayment of estimated tax (under ORS 314.525) will not be imposed if the tax on the prior year’s return was not over $10. A large corporation, as defined in ORS 314.525(5), may only use the exception for the first installment required. (3) Underpayment interest will not be imposed for a quarter in which the annualized taxable income results in a net annualized tax of $10 or less. Statutory/Other Authority: ORS 305.100 Statutes/Other Implemented: ORS 314.525 History: Renumbered from 150-314.525(2)-(A), REV 30-2016, f. 8-12-16, cert. ef. 9-1-16 RD 3-1995, f. 12-29-95, cert. ef. 12-31-95 RD 11-1992, f. 12-30-92, cert. ef. 12-31-92 RD 12-1990, f. 12-20-90, cert. ef. 12-31-90 RD 15-1987, f. 12-10-87, cert. ef. 12-31-87 Renumbered from 150-314.525(2)?, RD 12-1985, f. 12-16-85, cert. ef. 12-31-85 RD 7-1983, f. 12-20-83, cert. ef. 12-31-83 TC 9-1981, f. 12-7-81, cert. ef. 12-31-81 1-1-77 12-19-75 9-74
150-314-0325 Estimated Tax: Computation of Underpayment (1) Underpayment charges shall be assessed on the last filed return received before the due date for such return. That return shall be considered the “original return,” and the tax due shall be used as the basis for computing the underpayment charges. (2) Once underpayment charges are assessed on the original return, an amended return, reducing the tax liability, shall not reduce the underpayment charges. Statutory/Other Authority: ORS 305.100 Statutes/Other Implemented: ORS 314.525 History: Renumbered from 150-314.525(2)-(B), REV 30-2016, f. 8-12-16, cert. ef. 9-1-16 RD 11-1992, f. 12-30-92, cert. ef. 12-31-92 RD 10-1986, f. & cert. ef. 12-31-86
150-314-0327 Underpayment of Estimated Tax; First and Second Installment for Large Corporations (1) The first required installment is the lowest payment computed under ORS 314.525(2)(a) through (2)(d). (2) If a large corporation qualifies for the exception to paying interest on underpayment of estimated tax for the first installment under ORS 314.525(2)(b), the second required installment is calculated by adding: (a) The reduction to the first installment from using the amount determined under ORS 314.525(2)(b), and (b) The required second installment determined without regard to ORS 314.525(2)(b). (3) The reduction to the first installment from using the amount determined under ORS 314.525(2)(b) is: (a) The lowest first installment determined under ORS 314.525(2) without regard to 314.525(2)(b), less (b) The first installment determined under ORS 314.525(2)(b). Example: Big, Inc. (Big) qualifies as a “large corporation” under ORS 314.525(5) and had tax, payments, and required payments under ORS 314.525(2) as follows: [Table not included. See ED. NOTE.] [ED. NOTE: To view attachments referenced in rule text, click here to view rule.] Statutory/Other Authority: ORS 305.100 Statutes/Other Implemented: ORS 314.525 History: REV 24-2017, f. & cert. ef. 6-28-17 Renumbered from 150-314.525(5), REV 30-2016, f. 8-12-16, cert. ef. 9-1-16 REV 2-2003, f. & cert. ef. 7-31-03
150-314-0339 Proration of Deductions (1) This rule adopts a model regulation recommended by the Multistate Tax Commission to promote uniform treatment of this item by the states. (2) Proration of deductions. In most cases an allowable deduction of a taxpayer will be applicable only to the apportionable income arising from a particular trade or business or to a particular item of nonapportionable income. In some cases an allowable deduction may be applicable to the apportionable incomes of more than one trade or business or to several items of nonapportionable income. In such cases the deduction must be prorated among such trades or businesses and such items of nonapportionable income in a manner that fairly distributes the deduction among the classes of income to which it is applicable. (3) Year to year consistency. In filing returns with this state, if the taxpayer departs from or modifies the manner of prorating any such deduction used in returns for prior years, the taxpayer must disclose in the return for the current year the nature and extent of the modification. (4) State to state consistency. If the returns or reports filed by a taxpayer with all states to which the taxpayer reports under the Multistate Tax Compact or the Uniform Division of Income for Tax Purposes Act are not uniform in the application or proration of any deduction, the taxpayer must disclose in its return to this state the nature and extent of the variance. Statutory/Other Authority: ORS 305.100 Statutes/Other Implemented: ORS 314.610 History: REV 68-2017, amend filed 12/22/2017, effective 01/01/2018 Renumbered from 150-314.610(1)-(C), REV 30-2016, f. 8-12-16, cert. ef. 9-1-16 REV 4-2003, f. & cert. ef. 12-31-03 8-73 12-70
150-314-0345 Apportionment and Allocation of Income Generally (1) If the business activity in respect to any trade or business of a taxpayer occurs both within and without this state, and if by reason of such business activity the taxpayer is taxable in another state, the portion of net income (or net loss) arising from such trade or business which is derived from sources within this state must be determined by apportionment in accordance with ORS 314.615 to 314.675. In such cases, the first step is to determine which portion of the taxpayer’s entire net income constitutes apportionable income and which portion constitutes nonapportionable income. The various items of nonapportionable income are then directly allocated to specific jurisdictions pursuant to the provisions of ORS 314.625 to 314.645. The apportionable income (or loss) of the taxpayer is divided between the jurisdictions in which the business is conducted pursuant to the property, payroll, and sales apportionment factors set forth in ORS 314.650 to 314.665 and ORS 314.675. The sum of (1) the items of nonapportionable income (or loss) directly allocated to this state, plus (2) the amount of apportionable income (or loss) attributable to this state by the apportionment formula constitutes the amount of the taxpayer’s entire net income which is subject to tax under the income tax laws of this state. (2) In filing returns with this state, if the taxpayer departs from or modifies the manner in which income has been classified as apportionable income or nonapportionable income in returns for prior years, the taxpayer must disclose in the return for the current year the nature and extent of the modification. If the returns or reports filed by a taxpayer for all states to which the taxpayer reports under Article IV of the Multistate Tax Compact or the Uniform Division of Income for Tax Purposes Act are not uniform in the classification of income as apportionable or nonapportionable income, the taxpayer must disclose in its return to this state the nature and extent of the variance. ORS 314.605 to 314.667 exclude financial organizations and public utilities (as defined in ORS 314.610). For financial institutions not excluded, such as production credit associations and small loan companies, the three factors ordinarily will be property, payroll, and gross revenue. The definitions of “property” and “gross revenue” that appear in OAR 150-314-0070 are incorporated herein by reference. Statutory/Other Authority: ORS 305.100 Statutes/Other Implemented: ORS 314.615 History: REV 68-2017, amend filed 12/22/2017, effective 01/01/2018 Renumbered from 150-314.615-(A), REV 30-2016, f. 8-12-16, cert. ef. 9-1-16 12-19-75 8-73 12-70 1-65
150-314-0347 Application of ORS 314.610 to 314.667: Allocation Any taxpayer subject to the taxing jurisdiction of this state shall allocate all of its nonapportionable income or loss within or without this state in accordance with ORS 314.625 to 314.645. Statutory/Other Authority: ORS 305.100 Statutes/Other Implemented: ORS 314.615 History: REV 68-2017, amend filed 12/22/2017, effective 01/01/2018 Renumbered from 150-314.615-(C), REV 30-2016, f. 8-12-16, cert. ef. 9-1-16 8-73 12-70 1-65
150-314-0349 Apportionment and Allocation for a Taxpayer Carrying on a Unitary Business Where the taxpayer’s Oregon business activities are a part of a unitary business carried on both within and without the state, use of the apportionment method is mandatory to determine the portion of the unitary apportionable income attributable to Oregon. If the business activities within Oregon are integrated with, dependent upon, or contribute to the business activities outside the state, the entire operation is unitary in character, and the income from Oregon business activities is determined by the apportionment method. Whether the Oregon activities engaged in for financial profit actually result in a financial profit or loss is not determinative. A unitary business may be carried on by a single corporation or by a group of affiliated corporations. Statutory/Other Authority: ORS 305.100 Statutes/Other Implemented: ORS 314.615 History: REV 68-2017, amend filed 12/22/2017, effective 01/01/2018 Renumbered from 150-314.615-(D), REV 30-2016, f. 8-12-16, cert. ef. 9-1-16 REV 10-2007, f. 12-28-07, cert. ef. 1-1-08 12-31-77 8-73 12-70 1-65
150-314-0355 Special Rules: Installment Sales (1) Income from installment sales is reported at least in part in a year other than the year in which the sale took place. Apportionment of installment sale income on the basis of the factors in the years other than the year of sale would result in such income being apportioned by activities which had no connection with the earning of the income. (2) This rule applies to taxpayers who use the installment method of reporting income from the sale of property and whose Oregon apportionment percentage for the year of the sale is different than that for any year in which proceeds from that sale are received by the taxpayer. A taxpayer shall apportion the income from the installment sale using the Oregon apportionment percentage of the year of sale. Example: X is doing business in States A, B and C. During Year 1, the taxpayer sold a plant in State A and realized a $500,000 gain on the sale. The taxpayer elected to report the sale under the installment basis since two equal payments ($250,000 each) are to be received in years 2 and 3. The taxpayer’s apportionment factors were as follows: Year — Apportionment Factor 1 — 11% 2 — 1% 3 — 32% State A would realize a taxable gain of $55,000 ($500,000 x 11%) if the sale was not reported under the installment method. Since the apportionment factors have changed to 1 percent and 32 percent in years 2 and 3 respectively, a taxable gain of $2,500 is reported to State A in year 2 and $80,000 in year 3. Use of the year of sale factor results in $27,500 gain being reported to State A in years 2 and 3 (total: $55,000). Statutory/Other Authority: ORS 305.100 Statutes/Other Implemented: ORS 314.615 History: REV 42-2017, f. & cert. ef. 8-2-17 Renumbered from 150-314.615-(G), REV 30-2016, f. 8-12-16, cert. ef. 9-1-16 Renumbered from 150-314.670-(E), 12-31-85 12-31-84 12-5-84
150-314-0365 Taxable in Another State; In General Under ORS 314.615 the taxpayer is subject to the allocation and apportionment provisions of ORS 314.610 to 314.667 if it has income from business activity that is taxable both within and without this state. A taxpayer’s income from business activity is taxable without this state if such taxpayer, by reason of such business activity (i.e., the transactions and activity occurring in the regular course of a particular trade or business), is taxable in another state within the meaning of ORS 314.620. A taxpayer is “taxable in another state” if it meets either one of two tests: (1) If by reason of business activity in another state the taxpayer is subject to one of the types of taxes specified in ORS 314.620(1), namely: a net income tax, a franchise tax measured by net income, a franchise tax for the privilege of doing business, or a corporate stock tax; or (2) If by reason of such business activity another state has jurisdiction to subject the taxpayer to a net income tax, regardless of whether or not that state imposes such a tax on the taxpayer. A taxpayer is not taxable in another state with respect to a particular trade or business merely because the taxpayer conducts activities in such other state pertaining to the production of nonapportionable income or business activities relating to a separate trade or business. Statutory/Other Authority: ORS 305.100 Statutes/Other Implemented: ORS 314.620 History: REV 68-2017, amend filed 12/22/2017, effective 01/01/2018 Renumbered from 150-314.620-(A), REV 35-2016, f. 8-12-16, cert. ef. 9-1-16 8-73 12-70 1-65
150-314-0369 Taxable in Another State; When a State has Jurisdiction to Subject a Taxpayer to a Net Income Tax The second test, that of ORS 314.620(2), applies if the taxpayer’s business activity is sufficient to give the state jurisdiction to impose a net income tax by reason of such business activity under the Constitution and statutes of the United States. Jurisdiction to tax is not present where the state is prohibited from imposing the tax by reason of the provisions of Public Law 86-272, 15 USCA Sections 381-385. In the case of any “state” as defined in subsection (8) of ORS 314.610, other than a state of the United States or political subdivision of such state, the determination of whether such “state” has jurisdiction to subject the taxpayer to a net income tax shall be made as though the jurisdictional standards applicable to a state of the United States applied in that “state.” If jurisdiction is otherwise present, such “state” is not considered as without jurisdiction by reason of the provisions of a treaty between that state and the United States. Example: Corporation X is actively engaged in manufacturing farm equipment in State A and in foreign country B. Both State A and foreign country B impose a net income tax but foreign country B exempts corporations engaged in manufacturing farm equipment. Corporation X is subject to the jurisdiction of State A and foreign country B. Statutory/Other Authority: ORS 305.100 Statutes/Other Implemented: ORS 314.620 History: Renumbered from 150-314.620-(C), REV 35-2016, f. 8-12-16, cert. ef. 9-1-16 8-73 12-70
150-314-0371 Taxable in Another State; Washington Business and Occupation Tax For the purposes of Oregon taxation, the Washington Business and Occupation (B & O) tax qualifies as a tax described in ORS 314.620(1). If the taxpayer is “subject to” the Washington B & O tax, it is not necessary that the business activity be of such a nature or of sufficient magnitude to cause the taxpayer to be subject to a net income tax. If the taxpayer is subject to the B & O tax, the requirement of taxability in Washington is met regardless of whether or not Public Law 86-272 would protect the taxpayer from an imposition of a Washington net income tax. It is important to note that the taxpayer must be “subject to” and not just making a minimal voluntary payment. OAR 150-314-0367 provides that the taxpayer will not be considered to be “subject to” the tax merely by making a voluntary minimal payment. The taxpayer must be filing returns and paying the tax. Oregon will follow the determinations by the State of Washington as to what activities create tax jurisdiction under the B & O tax. Statutory/Other Authority: ORS 305.100 Statutes/Other Implemented: ORS 314.620 History: Renumbered from 150-314.620-(D), REV 35-2016, f. 8-12-16, cert. ef. 9-1-16 RD 7-1991, f. 12-30-91, cert. ef. 12-31-91
150-314-0380 Allocation of Interest and Dividends (1) Where it appears to the department that a corporation using the apportionment method is improperly using interest deductions to avoid Oregon tax, the corporation will be required to include in apportionable income interest received to the extent of the deduction claimed for interest paid. See U.P.R.R. Co. et al v. Oregon State Tax Comm., 240 Or 628, 402 P2d 519 (June 3, 1965). (2) Nonapportionable dividends are subtracted from modified federal income to compute apportionable income. The subtraction is net of the Oregon dividend deduction claimed for such dividends under ORS 317.267. Nonapportionable dividends allocated to Oregon, net of the Oregon dividend deduction, is added to income apportioned to Oregon. Example: In 2017, Corporation D received $30,000 in dividends, $10,000 of which were nonapportionable dividends allocable to Oregon. Corporation D owned less than 20 percent of the stock in the corporations paying the dividends, so a 70 percent dividend received deduction is allowed on the Oregon return. In the computation of Oregon taxable income, $3,000 of nonapportionable dividends (net of the dividend deduction) are subtracted from net income before apportionment and then added to income apportioned to Oregon. The $3,000 is computed as follows:[See PDF link below.] [Publications: Contact the Oregon Department of Revenue to learn how to obtain a copy of the publication referred to or incorporated by reference in this rule pursuant to ORS 183.360(2) and 183.355(1)(b).] [ED. NOTE: To view attachments referenced in rule text, click here to view rule.] Statutory/Other Authority: ORS 305.100 Statutes/Other Implemented: ORS 314.640 History: REV 68-2017, amend filed 12/22/2017, effective 01/01/2018 REV 25-2017, f. & cert. ef. 6-28-17 Renumbered from 150-314.640, REV 35-2016, f. 8-12-16, cert. ef. 9-1-16 RD 9-1992, f. 12-29-92, cert. ef. 12-31-92 6-68 1-65
150-314-0390 Property Factor; In General The property factor of the apportionment formula for each trade or business of the taxpayer includes all real and tangible personal property owned or rented and used during the tax period in the regular course of such trade or business. The term “real and tangible personal property” includes land, buildings, machinery, stocks of goods, equipment, and other real and tangible personal property but does not include coin or currency. Property used in connection with the production of nonapportionable income is excluded from the property factor. Property used both in the regular course of taxpayer’s trade or business and in the production of nonapportionable income is included in the factor only to the extent the property is used in the regular course of taxpayer’s trade or business. The method of determining that portion of the value to be included in the factor will depend upon the facts of each case. The property factor must reflect the average value of property includable in the factor. See OAR 150-314-0406. Statutory/Other Authority: ORS 305.100 Statutes/Other Implemented: ORS 314.665 History: REV 68-2017, amend filed 12/22/2017, effective 01/01/2018 Renumbered from 150-314.655(1)-(A), REV 35-2016, f. 8-12-16, cert. ef. 9-1-16 8-73 12-70
150-314-0392 Property Factor; Property Used for the Production of Apportionable Income Property is included in the property factor if it is actually used or is available for or capable of being used during the tax period in the regular course of the trade or business of the taxpayer. Property held as reserves or standby facilities or property held as a reserve source of materials is included in the factor. For example, a plant temporarily idle or raw material reserves not currently being processed are includable in the factor. Property or equipment under construction during the tax period (except inventoriable goods in process) is excluded from the factor until such property is actually used in the regular course of the trade or business of the taxpayer. If the property is partially used in the regular course of the trade or business of the taxpayer while under construction, the value of the property to the extent used is included in the property factor. Property used in the regular course of the trade or business of the taxpayer remains in the property factor until its permanent withdrawal is established by an identifiable event such as its conversion to the production of nonapportionable income, its sale, or the lapse of an extended period of time (normally, five years) during which the property is held for sale. Example 1: Taxpayer closed its manufacturing plant in State X and held such property for sale. The property remained vacant until its sale one year later. The value of the manufacturing plant is included in the property factor until the plant is sold. Example 2: Same as above except that the property was rented until the plant was sold. The plant is included in the property factor until the plant is sold. Example 3: Taxpayer closed its manufacturing plant and leased the building under a five-year lease. The plant is included in the property factor until the commencement of the lease. Example 4: The taxpayer operates a chain of retail grocery stores. Taxpayer closed Store A, which was then remodeled into three small retail stores such as a dress shop, dry cleaning, and barber shop, which were leased to unrelated parties. The property is removed from the property factor on the date the remodeling of Store A commenced. Statutory/Other Authority: ORS 305.100 Statutes/Other Implemented: ORS 314.655 History: REV 68-2017, amend filed 12/22/2017, effective 01/01/2018 Renumbered from 150-314.655(1)-(B), REV 35-2016, f. 8-12-16, cert. ef. 9-1-16 8-73 12-70
150-314-0394 Property Factor; Consistency in Reporting In filing returns with this state if the taxpayer departs from or modifies the manner of valuing property, or of excluding or including property in the property factor, used in returns for prior years, the taxpayer shall disclose in the return for the current year the nature and extent of the modification. If the returns or reports filed by the taxpayer with all states to which the taxpayer reports under Article IV of the Multistate Tax Compact or the Uniform Division of Income for Tax Purposes Act are not uniform in the valuation of property and in the exclusion or inclusion of property in the property factor, the taxpayer shall disclose in its return to this state the nature and extent of the variance. Statutory/Other Authority: ORS 305.100 Statutes/Other Implemented: ORS 314.655 History: Renumbered from 150-314.655(1)-(C), REV 35-2016, f. 8-12-16, cert. ef. 9-1-16 8-73 12-70
150-314-0396 Property Factor; Numerator The numerator of the property factor shall include the average value of the real and tangible personal property owned or rented by the taxpayer and used in this state during the tax period in the regular course of the trade or business of the taxpayer. Property in transit between locations of the taxpayer to which it belongs shall be considered to be at the destination for purposes of the property factor. Property in transit between a buyer and seller which is included by a taxpayer in the denominator of its property factor in accordance with its regular accounting practices shall be included in the numerator according to the state of destination. The value of mobile or movable property such as construction equipment, trucks or leased electronic equipment which are located within and without this state during the tax period shall be determined for purposes of the numerator of the factor on the basis of total time within the state during the tax period. An automobile assigned to a traveling employee shall be included in the numerator of the factor of the state to which the employee’s compensation is assigned under the payroll factor or in the numerator of the state in which the automobile is licensed. Statutory/Other Authority: ORS 305.100 Statutes/Other Implemented: ORS 314.655 History: Renumbered from 150-314.655(1)-(D), REV 35-2016, f. 8-12-16, cert. ef. 9-1-16 8-73 12-70