justicedao/ipfs_state_laws huggingface dataset:
150-314-0398 Property Factor; Valuation of Owned Property (1) Property owned by the taxpayer shall be valued at its original cost. As a general rule “original cost” is deemed to be the basis of the property for federal income tax purposes (prior to any federal adjustments) at the time of acquisition by the taxpayer and adjusted by subsequent capital additions or improvements thereto and partial disposition thereof, by reason of sale, exchange, abandonment, etc. Example (i): The taxpayer acquired a factory building in this state at a cost of $500,000 and 18 months later expended $100,000 for major remodeling of the building. Taxpayer files its return for the current taxable year on the calendar year basis. Depreciation deduction in the amount of $22,000 was claimed on the building for its return for the current taxable year. The value of the building includable in the numerator and denominator of the property factor is $600,000 as the depreciation deduction is not taken into account in determining the value of the building for purposes of the factor. Example (ii): During the current taxable year, X Corporation merges into Y Corporation in a tax-free reorganization under the Internal Revenue Code. At the time of the merger, X Corporation owns a factory which X built five years earlier at a cost of $1,000,000. X has been depreciating the factory at the rate of two percent per year, and its basis in X’s hands at the time of the merger is $900,000. Since the property is acquired by Y in a transaction in which, under the Internal Revenue Code, its basis in Y’s hands is the same as its basis in X’s, Y includes the property in Y’s property factor at X’s original cost, without adjustment for depreciation, i.e., $1,000,000. Example (iii): Corporation Y acquires the assets of Corporation X in a liquidation by which Y is entitled to use its stock cost as the basis of the X assets under Section 338 of the 1986 Internal Revenue Code (i.e. stock possessing 80 percent of voting power and stock value is purchased within a 12 month period.) Under these circumstances, Y’s cost of the assets is the purchase price of the X stock, prorated over the X assets. (2) If original cost of property is unascertainable, the property is included in the factor at its fair market value as of the date of acquisition by the taxpayer. (3) Inventory of stock of goods shall be included in the factor in accordance with the valuation method used for federal income tax purposes. Payments for extracted natural resources shall be included in the property factor as inventory. (4) Property acquired by gift or inheritance shall be included in the factor at its basis for determining depreciation for federal income tax purposes. Statutory/Other Authority: ORS 305.100 Statutes/Other Implemented: ORS 314.655 History: Renumbered from 150-314.655(2)-(A), REV 35-2016, f. 8-12-16, cert. ef. 9-1-16 RD 9-1992, f. 12-29-92, cert. ef. 12-31-92 RD 11-1988, f. 12-19-88, cert. ef. 12-31-88 8-73 12-70
150-314-0402 Property Factor; Timber The property factor includes all standing timber which the taxpayer owns and which is situated on land owned by the taxpayer, and includes timber which has been cut and has become a part of inventory. The factor does not include any standing timber to which the taxpayer has acquired cutting rights under a contract, regardless of when title passes under the terms of the contract. Statutory/Other Authority: ORS 305.100 Statutes/Other Implemented: ORS 314.655 History: Renumbered from 150-314.655(2)-(C), REV 35-2016, f. 8-12-16, cert. ef. 9-1-16 12-31-81
150-314-0404 Property Factor; Intangible Drilling Costs Intangible drilling costs incurred by oil and gas producing companies in connection with producing oil and gas properties located within a taxing jurisdiction are included in the property factor. An election to expense intangible drilling costs for federal tax purposes has no effect on their inclusion in the property factor. Statutory/Other Authority: ORS 305.100 Statutes/Other Implemented: ORS 314.655 History: Renumbered from 150-314.655(2)-(E), REV 35-2016, f. 8-12-16, cert. ef. 9-1-16 RD 10-1986, f. & cert. ef. 12-31-86
150-314-0406 Property Factor; Averaging Property Value (1) As a general rule the average value of property owned by the taxpayer shall be determined by averaging the values at the beginning and ending of the tax period. However, the Department may require or allow averaging by monthly values if such method of averaging is required to properly reflect the average value of the taxpayer’s property for the tax period. Averaging by monthly values will generally be applied if substantial fluctuations in the values of the property exist during the tax period or where property is acquired after the beginning of the tax period or disposed of before the end of the tax period. Example: The monthly value of the taxpayer’s property was as follows: [Example not included. See ED. NOTE.] (2) Averaging with respect to rented property is achieved automatically by the method of determining the net annual rental rate of such property as set forth in OAR 150-314-0400. [ED. NOTE: To view attachments referenced in rule text, click here to view rule.] Statutory/Other Authority: ORS 305.100 Statutes/Other Implemented: ORS 314.655 History: REV 26-2017, f. & cert. ef. 7-21-17 Renumbered from 150-314.655(3), REV 35-2016, f. 8-12-16, cert. ef. 9-1-16 8-73 12-70
150-314-0417 Payroll Factor; Numerator (1) The numerator of the payroll factor is the total amount of compensation paid in this state during the tax period by the taxpayer. The tests in subsection (2) of ORS 314.660 to be applied in determining whether compensation is paid in this state are derived from the Model Unemployment Compensation Act. Accordingly, if compensation paid to employees is included in the payroll factor by use of the cash method of accounting or if the taxpayer is required to report such compensation under such method for unemployment compensation purposes, it shall be presumed that the total wages reported by the taxpayer to this state for unemployment compensation purposes constitutes compensation paid in this state except for compensation excluded under OAR 150-314-0415 above. The presumption may be overcome by satisfactory evidence that an employee’s compensation is not properly reportable to this state for unemployment compensation purposes. (2) Guaranteed payments which represent compensation for services are included in the numerator of the factor if the compensation would have been subject to Oregon unemployment insurance tax if paid to an employee. (3) Compensation is paid in this state if any one of the following tests, applied consecutively, are met: (a) The employee’s service is performed entirely within the state. (b) The employee’s service is performed both within and without the state, but the service performed without the state is incidental to the employee’s service within the state. The word “incidental” means any service which is temporary or transitory in nature, or which is rendered in connection with an isolated transaction. (c) If the employee’s services are performed both within and without this state, the employee’s compensation will be attributed to this state: (A) If the employee’s base of operations is in this state; or (B) If there is no base of operations in any state in which some part of the service is performed, but the place from which the service is directed or controlled is in this state; or (C) If the base of operations or the place from which the service is directed or controlled is not in any state in which some part of the service is performed but the employee’s residence is in this state. (4) The term “base of operations” is the place of more or less permanent nature from which the employee starts work and to which the employee customarily returns in order to receive instructions from the taxpayer or communications from customers or other persons, or to replenish stock or other materials, repair equipment, or perform any other functions necessary to the exercise of the trade or profession. (5) The term “place from which the service is directed or controlled” refers to the place from which the power to direct or control is exercised by the taxpayer. [Publications: Publications referenced are available from the agency.] Statutory/Other Authority: ORS 305.100 Statutes/Other Implemented: ORS 314.660 History: Renumbered from 150-314.660(2), REV 35-2016, f. 8-12-16, cert. ef. 9-1-16 RD 3-1995, f. 12-29-95, cert. ef. 12-31-95 RD 5-1994, f. 12-15-94, cert. ef. 12-31-94 12-70
150-314-0431 Sales Factor; Sales of Tangible Personal Property to United States Government in this State (1) Gross receipts from the sales of tangible personal property to the United States Government are in this state if the property is shipped from an office, store, warehouse, factory, or other place of storage in this state, except as prohibited in paragraph (2) of this rule. For the purposes of this rule, only sales for which the United States Government makes direct payment to the seller pursuant to the terms of its contract constitute sales to the United States Government. Thus, as a general rule, sales by a subcontractor to the prime contractor, the party to the contract with the United States Government, do not constitute sales to the United States Government. Example 1: A taxpayer contracts with General Services Administration to deliver X number of trucks which were paid for by the United States Government. The sale is a sale to the United States Government. Example 2: The taxpayer as a subcontractor to a prime contractor with the National Aeronautics and Space Administration contracts to build a component of a rocket for $1,000,000. A sale by the subcontractor to the prime contractor is not a sale to the United States Government. (2) For tax years beginning on or after January 1, 1994, gross receipts from the sales of tangible personal property to the United States Government are not in this state if: (a) The sales are properly included in the numerator of a formula used to apportion apportionable income to another state of the United States, a foreign country or the District of Columbia; and (b) The other state, foreign country or the District of Columbia has properly imposed a tax on or measured by the apportioned business income. 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 150-314.665(2)-(B), REV 35-2016, f. 8-12-16, cert. ef. 9-1-16 RD 7-1993, f. 12-30-93, cert. ef. 12-31-93 8-73 12-70
150-314-0437 Gross Receipts Related to Deferred Gain or Loss (1) In general. In all cases where gain or loss is realized for accounting purposes in the year of the associated transaction, but not fully recognized for tax purposes in that year, the total gross receipts from the transaction must be included in the sales factor for the year of the transaction if the associated gain or loss is considered apportionable income or loss under ORS 314.610, except where: (a) The gross receipts are excluded from “sales” under ORS 314.665(6)(a) and (6)(c); or (b) The net gain rather than gross receipts is included in the sales factor under ORS 314.665(6)(b). Also see OAR 150-314-0355 regarding the apportionment of installment sale income and OAR 150-314-0385 regarding apportionment of deferred gain subject to tax in a year after the year of disposition. Example 1: Big Equipment Sales Corporation (BESC) has locations in Oregon and Idaho. BESC sold a large piece of construction equipment in 2017 on an installment contract. The total sales price was $1,000,000. BESC must include the full sales price of $1,000,000 in the sales factor for tax year 2017. (2) Gross receipts from deferred gain on exchanges of property. In regard to exchanges of property qualifying for the deferral of tax on the gain or loss under section ORS 317.327 and sections 1031 or 1033 of the Internal Revenue Code, “gross receipts” means the fair market value of the property acquired on the date of exchange. Example 2: Major Manufacturing Corporation (MMC) exchanges tangible personal property used in its business activity in Oregon for property of like kind in California during tax year 2016. The fair market value of the acquired property is $800,000 on the date of the exchange. The gross receipts from the exchange of property are not excluded from MMC’s “sales” under ORS 314.665(6)(a) or (6)(c). MMC’s sales factor numerator and denominator for tax year 2016 must include $800,000, the gross receipts from the exchange as measured in 2016. [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).] Statutory/Other Authority: ORS 305.100 Statutes/Other Implemented: ORS 314.665 & 317.327 History: REV 68-2017, amend filed 12/22/2017, effective 01/01/2018 Renumbered from 150-314.665(5), REV 35-2016, f. 8-12-16, cert. ef. 9-1-16 REV 6-2004, f. 7-30-04, cert. ef. 7-31-04
150-314-0460 Apportionment of Net Loss (1) When a corporation or consolidated group of corporations is taxable both within and without this state, their Oregon net loss must be computed using the apportionment provisions in ORS 314.280, or 314.610 through 314.667. (2) If a corporation filed a combined return (prior to 1986) or a separate (not consolidated) return in the year of the loss, and files a consolidated return in the year to which the loss is carried, the net loss deduction may be limited. The allowable net loss deduction cannot exceed the Oregon net income attributed to the corporation with the net loss carryover. For the purpose of determining the net loss deduction allowable, the consolidated Oregon net income must be attributed to the corporation based on its share of the Oregon apportionment percentage. The following example demonstrates the application of this section: [Example not included. See ED NOTE]. (3) If a corporation was included in a consolidated return in the year of the net loss and now files a separate return, or is included in a different consolidated return in the year to which the net loss is carried, the consolidated Oregon net loss must be apportioned to the corporations included in the net loss return for purposes of determining the allowable net loss carryover. The consolidated Oregon net loss must be apportioned to the corporations with taxable activities in Oregon, based upon their Oregon apportionment percentages. The net losses computed can be carried forward and deducted in subsequent years’ returns (subject to the carryover limitations specified in OAR 150-317-0460. The following example demonstrates the application of this section: [Example not included. See ED NOTE]. (4) Net losses that are attributed to corporations which continue to be included in the same consolidated Oregon return can be deducted fully against the Oregon consolidated net income. [Example not included. See ED NOTE]. (5) Paragraphs (2), (3) and (4) of this rule apply to Oregon net losses carried forward and deducted in tax years beginning on or after January 1, 1986. (6) The net loss carryover to a consolidated return when the loss is from a separate return of a prior year in which the taxpayer should have filed a combined or consolidated return must be recalculated as if the taxpayer had filed a combined or consolidated return. Example: Corporation A reported a loss in 1999 on a separate return. Corporation A should have filed a consolidated return with Corporation B in 1999 A 1999 consolidated return would have resulted in net income. The net loss carryover for Corporation A from 1999 is zero. [ED. NOTE: To view attachments referenced in rule text, click here to view rule.] Statutory/Other Authority: ORS 305.100 Statutes/Other Implemented: ORS 314.675 History: REV 43-2017, f. & cert. ef. 8-2-17 Renumbered from 150-314.675, REV 34-2016, f. 8-12-16, cert. ef. 9-1-16 REV 5-2000, f. & cert. ef. 8-3-00 RD 7-1989, f. 12-18-89, cert. ef. 12-31-89 RD 15-1987, f. 12-10-87, cert. ef. 12-31-87 RD 10-1986, f. & cert. ef. 12-31-86 1-65
150-314-0466 Definition of Programming and Subscription Services (1) For purposes of Oregon Laws 2021, Chapter 74, Section 2(1)(a), broadcasting sales result from the transmission of programming in the course of “broadcasting” as defined by Oregon Laws 2021, Chapter 74, Section 2(1)(a). (2) Programming, as used by Oregon Laws 2021, Chapter 74, Section 2(1)(a), means one (1) or more performance, event, or production, or segments of performances, events, or productions, intended to be distributed for visual and/or auditory perception, including, but not limited to, news, entertainment, sporting events, plays, stories, or other literary, commercial, educational, or artistic works. EXAMPLE #1: National network XYZ transmits a televised version of the play Julius Caesar on March 15 every year. XYZ transmits over the air, through cable and on the internet. Julius Caesar is a performance that is intended to be distributed for visual and auditory perception by an audience. Therefore, Julius Caesar is programming. EXAMPLE #2: Game developer XYZ releases the game “23” as a tie in with the annual release of Julius Caesar. “23” is a multiplayer game that is streamed online with audio and visual components. However, “23” is not a performance, event or production for the purposes of this rule because “23” is not intended to be distributed for viewing or listening by an audience because the customers of “23” participate in the game. Accordingly, receipts from the streaming of “23” are not sourced using the broadcasting sales provisions. EXAMPLE #3: For profit Education provider XYZ streams a variety of college lectures over the internet. These lectures meet the definition of programming because the lectures are educational productions intended to be distributed for viewing and listening by an audience. (3) A subscription service, for purposes of Oregon Laws 2021, Chapter 74, Section 2(3), means a service provided by a cable service provider, a direct broadcast satellite system, an internet content distributor or any other distributor that charges viewers for access to any programming. (4) The election allowed under Oregon Laws 2021, Chapter 74, Section 2(4) is available to any taxpayer with any broadcasting sales. (5) The provisions of this rule apply to tax years beginning on or after January 1, 2020. [ Publications: C ontact the Oregon Department of Revenue for information about how to obtain a copy of the publication referred to or incorporated by reference in this rule pursuant to ORS 183.360(2) and ORS 183.355(1)(b).] Statutory/Other Authority: ORS 305.100 Statutes/Other Implemented: ORS 314.605 - 314.675 History: REV 19-2021, adopt filed 12/16/2021, effective 01/01/2022
150-314-0470 Interstate Broadcasters: Net Income Attributable to this State (1) The allocation and apportionment provisions in ORS 314.610 to 314.667 as modified by ORS 314.684, are required for interstate broadcasters unless the application of those provisions does not fairly and accurately reflect the extent of the taxpayer’s business activities in this state. The burden is on the taxpayer to show that the allocation and apportionment provisions do not fairly and accurately reflect their activities within the state. (2) If the application of the allocation and apportionment provisions do not fairly and accurately reflect the extent of the taxpayer’s business activities in this state, Oregon net income shall be computed using segregated accounting. Statutory/Other Authority: ORS 305.100 Statutes/Other Implemented: ORS 314.686 History: Renumbered from 150-314.686, REV 34-2016, f. 8-12-16, cert. ef. 9-1-16 RD 12-1990, f. 12-20-90, cert. ef. 12-31-90
150-314-0480 Publicly Traded Partnerships Taxed as Corporations (1) “Publicly traded partnership” means a partnership with interests traded on an established securities market or readily tradable on a secondary market (or its substantial equivalent), including master limited partnerships, under the provisions of IRC 7704. Oregon adopted the provisions of IRC 7704 retroactively. (2) Publicly traded partnerships deriving less than 90 percent of their gross income from qualifying passive-type income sources are treated as corporations for federal and Oregon tax purposes. Examples of qualifying income sources include interest, dividends, real property rents, gain from the disposition of real property, mining and natural resource income, and gain from the disposition of capital assets or IRC 1231(b) property held for the production of such income. (3) A publicly traded partnership that was not an existing partnership on December 17, 1987, shall be treated as a corporation for tax years beginning after December 31, 1987. (4) A publicly traded partnership that was an existing partnership on December 17, 1987, shall be treated as a corporation for tax years beginning after December 31, 1997. Statutory/Other Authority: ORS 305.100 Statutes/Other Implemented: ORS 314.722 History: Renumbered from 150-314.722, REV 34-2016, f. 8-12-16, cert. ef. 9-1-16 RD 9-1992, f. 12-29-92, cert. ef. 12-31-92
150-314-0485 Partnership Information Returns (1) Partnership required to file. A partnership must file for Oregon an information return of its business activity and include other information as required by section (2) of this rule if the partnership: (a) Has income that is derived from or connected with sources within Oregon; or (b) Has one or more Oregon resident partners during the taxable year of the partnership. (2) Information Required. Every partnership required to file a return under section (1) of this rule must file with Oregon: (a) An Oregon Form OR-65 (Oregon Partnership Return of Income). (b) An Oregon Depreciation Schedule if Oregon depreciation is different than federal. (c) A copy of federal Form 1065 (U.S. Partnership Return of Income) or federal Form 1065-B (U.S. Return of Income for Electing Large Partnerships) and all attachments filed for federal. See section (3) for information regarding the submission of federal Schedule K-1s (Partner’s Share of Income, Credits, Deductions, etc.). (d) A schedule showing the disposition of all assets and liabilities if this is the final return of a terminated partnership. The schedule must include each asset’s Oregon adjusted basis and fair market value. (3) Federal Schedule K-1. (a) The partnership must include a copy of each partner’s federal Schedule K-1 if any of the following occurs during the partnership’s taxable year: (A) The partnership incurs a net loss (including capital losses or passive losses); (B) There are changes to either the ownership structure or the profit/loss sharing percentages of the partnership; or (C) Any Oregon modifications or amounts shown on the federal Schedule K (including guaranteed payments) are not divided according to each partner’s partnership share of profits and losses. (b) Exception. Partnerships that have no income connected with or derived from sources within Oregon and have no activity within Oregon must file a copy of the partner’s federal Schedule K-1 only when: (A) The partner was an Oregon resident partner at some time during the taxable year of the partnership; and (B) Any of the situations described in paragraph (3)(a) occur. All other filing requirements of section (2) of this rule must still be satisfied. (c) Substitute Schedule K-1. If the number of Schedule K-1s required to be included with the Oregon return exceeds ten, the partnership must include a summary of partner information in lieu of submitting each partner’s Schedule K-1. The summary must include each partner’s name, social security number or federal identification number, address, and profit/loss sharing percentage. [Publications: Publications referenced are available from the agency.] Statutory/Other Authority: ORS 305.100 Statutes/Other Implemented: ORS 314.724 History: REV 85-2016, f. 12-28-16, cert. ef. 1-1-17 Renumbered from 150-314.724, REV 34-2016, f. 8-12-16, cert. ef. 9-1-16 RD 5-1997, f. 12-12-97, cert. ef. 12-31-97 RD 3-1995, f. 12-29-95, cert. ef. 12-31-95 RD 12-1990, f. 12-20-90, cert. ef. 12-31-90 RD 7-1989, f. 12-18-89, cert. ef. 12-31-89