justicedao/ipfs_state_laws huggingface dataset:
150-317-0520 Direct or Indirect Relationships In determining whether a unitary business exists, all direct and indirect relationships may be considered. This is true even when the relationships extend to corporations not includable in the consolidated return. Example 1: Corporation M is a U.S. company engaged in the marketing of oil and oil products. It has two wholly-owned domestic subsidiaries, Corporations E and R. Corporation E is a drilling company involved in exploration for oil. Corporation R buys the crude oil from E, refines it, and sells the refined oil to M. Although the operations of Corporations E and M are not directly related, they are part of a unitary business by virtue of their indirect relationship through Corporation R. Example 2: Assume the same facts as in Example 1, except that the refining company, Corporation R, is jointly owned by Corporation M and another oil company (50 percent each). Although Corporation R is no longer includable in the consolidated return (due to less than 80 percent ownership), Corporations E and M are still considered part of a unitary business. Example 3: Assume the same facts as in Example 1, except that the refining company, Corporation R, is a foreign subsidiary of Corporation M doing business only in Mexico. In determining whether Corporations E and M are part of a unitary business, the relationships and transactions with Corporation R may be considered. Statutory/Other Authority: ORS 305.100 Statutes/Other Implemented: ORS 317.705 History: REV 71-2017, amend filed 12/22/2017, effective 01/01/2018 Renumbered from 150-317.705(3)(b), REV 69-2016, f. 8-15-16, cert. ef. 9-1-16 REV 10-2007, f. 12-28-07, cert. ef. 1-1-08 12-31-86 12-31-85, Renumbered from 150-317.705 10-7-85
150-317-0530 Corporations Doing Business Outside the United States A corporation included in a consolidated federal return shall not be excluded from a consolidated Oregon return simply because its business operations are conducted outside the United States. Statutory/Other Authority: ORS 305.100 Statutes/Other Implemented: ORS 317.705 History: Renumbered from 150-317.705(3)(c), REV 69-2016, f. 8-15-16, cert. ef. 9-1-16 RD 5-1994, f. 12-15-94, cert. ef. 12-31-94
150-317-0540 Consolidated Oregon Return: Format and Information Required (1) Generally, the consolidated Oregon return must be filed by and in the name of the common parent corporation. If the common parent corporation is not a member of the affiliated group filing the consolidated Oregon return or is not subject to Oregon taxation, the return must be filed in the name of a member of the affiliated group doing business in Oregon as defined under ORS 317.010(4). If more than one member is doing business in Oregon, the name of the member having the greatest presence in Oregon must be used. If the name under which a prior year’s consolidated Oregon return was filed is changed, a statement must be attached to the current year’s return advising the department of the name change. (2) If the affiliated group filing a consolidated federal return consists of more than one unitary group, each unitary group that includes an Oregon taxpayer must file a separate consolidated Oregon return. (3) For purposes of this section “having the greatest presence” means having the largest Oregon property value as determined under ORS 314.655. (4) The consolidated Oregon return must be prepared in columnar form reflecting separately, for each member of the affiliated group, and in total, the federal consolidated taxable income, the modifications required by ORS 317.259, the tax credits, and any other information requested by the department. If taxable income is determined under ORS 317.010(10)(a) to (c), the nonapportionable income or loss and apportionment formula must also be reflected separately for each member of the affiliated group and in total. (5) A schedule of corporations subject to Oregon’s jurisdiction to tax must be attached to the consolidated Oregon return. Statutory/Other Authority: ORS 305.100 Statutes/Other Implemented: ORS 317.710 History: REV 68-2017, amend filed 12/22/2017, effective 01/01/2018 Renumbered from 150-317.710(5)(a)-(A), REV 69-2016, f. 8-15-16, cert. ef. 9-1-16 RD 7-1989, f. 12-18-89, cert. ef. 12-31-89 RD 10-1986, f. & cert. ef. 12-31-86 RD 12-1985, f. 12-16-85, cert. ef. 12-31-85, Renumbered from 150-317.710(5)(a)-(A)
150-317-0550 Consolidated Oregon Return: Affiliated Group (1) A corporation filing a consolidated federal return must file a consolidated Oregon return. The consolidated Oregon return must include the same affiliated group included in the consolidated federal return, except as provided in this section. (2) The following taxpayers included in consolidated federal returns must not file consolidated Oregon returns: (a) A corporation that is not a member of a unitary group (as defined under ORS 317.705(2)) with any other corporation included in the consolidated federal return; (b) A corporation that is permitted or required under ORS 314.667 to determine its Oregon taxable income on a separate basis; (c) A corporation that is permitted or required by rule or statute to use different apportionment factors than are applicable to other members of the affiliated group; or (d) Alien, domestic, or foreign insurers required by ORS 317.710 (5) or (7) to file separately from the taxpayer’s federal consolidated group. (3) Insurance companies that are unitary members of a federal consolidated return but neither do business in Oregon nor file an annual statement with the Oregon Insurance Division of the Department of Consumer and Business Services must be included in an Oregon consolidated return. (4) A newly organized member of a unitary group, included in an affiliated group filing a consolidated federal return, must be included in the consolidated Oregon return in the taxable year the new member is organized. (5) A newly acquired member of an affiliated group must be excluded from the consolidated Oregon return until completion of the first full taxable year in which the new member is a unitary member of the affiliated group. However, if a newly acquired member is unitary on or near the acquisition date, it must be included in the consolidated Oregon return. (a) The newly acquired member’s net income, for the period from the acquisition date to the end of the affiliated group’s taxable year, must be included in Oregon consolidated net income. (b) The newly acquired member’s property, payroll, and sales, for the period from the acquisition date to the end of the affiliated group’s taxable year, must be included in the computation of the Oregon apportionment percentage. The average value of the newly acquired member’s assets in the property factor must be computed as provided in OAR 150-314-0406. The monthly property value must be zero for the newly acquired member for each of the months prior to acquisition. Statutory/Other Authority: ORS 305.100 Statutes/Other Implemented: ORS 317.710 History: REV 71-2017, amend filed 12/22/2017, effective 01/01/2018 Renumbered from 150-317.710(5)(a)-(B), REV 69-2016, f. 8-15-16, cert. ef. 9-1-16 REV 7-1998, f. 11-13-98, cert. ef. 12-31-98 RD 12-1990, f. 12-20-90, cert. ef. 12-31-90 RD 11-1988, f. 12-19-88, cert. ef. 12-31-88 RD 10-1986, f. & cert. ef. 12-31-86
150-317-0560 Consolidated Oregon Return: Credits The amount of credit that may offset tax on a consolidated Oregon return is not limited to the tax attributable to the corporation earning the credit. This provision applies to credits carried forward from years in which a separate or combined report is filed to years in which a consolidated return is filed, as well as current year credits. Statutory/Other Authority: ORS 305.100 Statutes/Other Implemented: ORS 317.710 History: Renumbered from 150-317.710(5)(a)-(C), REV 69-2016, f. 8-15-16, cert. ef. 9-1-16 RD 7-1993, f. 12-30-93, cert. ef. 12-31-93
150-317-0570 Different Apportionment Factors for Purposes of ORS 317.710(5)(b) (1) An Oregon taxpayer that is permitted or required to use different apportionment factors under Oregon law cannot be included in an Oregon consolidated return with another Oregon taxpayer using the standard apportionment factor provided in ORS 314.650. This restriction only applies when both corporations using different apportionment factors are subject to Oregon tax under ORS Chapters 317 or 318. The only corporations that are permitted or required to use different apportionment factors are: (a) Insurers required to apportion income as provided in ORS 317.660; and (b) Taxpayers primarily engaged in utilities or telecommunications that elect to have income from business activity apportioned by applying the weightings used in ORS 314.650 (1999 Edition) for tax years beginning on or after May 1, 2003. (2) Corporations other than those listed in subsections 1(a) and 1(b) of this rule use specific applications of the standard apportionment factor provided in ORS 314.650. Statutory/Other Authority: ORS 305.100 Statutes/Other Implemented: ORS 317.710 History: REV 5-2019, amend filed 12/11/2019, effective 01/01/2020 Renumbered from 150-317.710(5)(b), REV 69-2016, f. 8-15-16, cert. ef. 9-1-16 REV 4-2011, f. 12-30-11, cert. ef. 1-1-12 REV 5-2006, f. & cert. ef. 7-31-06 REV 7-1998, f. 11-13-98, cert. ef. 12-31-98 RD 11-1988, f. 12-19-88, cert. ef. 12-31-88 RD 12-1985, f. 12-16-85, cert. ef. 12-31-85
150-317-0580 Consolidated Oregon Return: Copy of Federal Return Required (1) A complete copy of the taxpayer’s federal return must be attached to the Oregon return. (2) If an affiliated group filing a consolidated federal return is required to file more than one Oregon return under ORS 317.710(5), a copy of the consolidated federal return need not be attached to each Oregon return. Instead, one complete copy of the consolidated federal return may be attached to one of the Oregon returns filed. A statement shall be attached to the other Oregon returns advising the department that a copy of the complete consolidated federal return is being provided with the Oregon return of another taxpayer. The statement must include the corporation’s name and federal identification number used on the Oregon return to which the complete copy of the consolidated federal return is attached. Statutory/Other Authority: ORS 305.100 Statutes/Other Implemented: ORS 317.710 History: Renumbered from 150-317.710(6), REV 69-2016, f. 8-15-16, cert. ef. 9-1-16 RD 10-1986, f. & cert. ef. 12-31-86
150-317-0590 Interinsurance and Reciprocal Exchanges (1) Affiliated interinsurance and reciprocal exchanges may elect to file a consolidated return under ORS 317.710(7). The election shall be made by attaching a statement to the timely filed (including extensions) consolidated tax return for the tax year in question. The statement shall contain the names and identifying number of the members, and shall clearly indicate that the members are electing to file a consolidated tax return. (2) An election, once made, shall remain in effect until revoked. Revocation of the election shall be clearly indicated on a statement attached to each timely filed (including extensions) separate excise tax return filed by the members. The statement shall also include a scheduled allocating consolidated estimated tax payment to the members. Statutory/Other Authority: ORS 305.100 Statutes/Other Implemented: ORS 317.710 History: Renumbered from 150-317.710(7), REV 69-2016, f. 8-15-16, cert. ef. 9-1-16 REV 7-1998, f. 11-13-98 cert. ef. 12-31-98
150-317-0600 Limitations on Deduction of Group Losses (1) Oregon has adopted the provisions of IRC Section 1503(f) that apply to corporations filing consolidated returns and limit the use of group losses to offset income of a subsidiary paying dividends on preferred stock. (2) The new limitations apply in tax years ending after November 17, 1989. (3) Only the income or losses of those corporations included in the Oregon consolidated return will be included in the computation of the “group losses” and “separately computed taxable income.” (4) Oregon modifications that apply should be made prior to computing “group losses,” and “separately computed taxable income.” (5) The following examples demonstrate the application of the limitation for Oregon: Example 1: An affiliated group filing a consolidated federal return consists of Corporation P (the parent corporation) and Corporations R and S (subsidiaries of P). All three corporations are unitary and the consolidated Oregon apportionment percentage is 50 percent. Corporation S issues IRC Section 1504(a)(4) preferred stock. In 1991, Corporation P has federal income of $900 and an Oregon addition modification of $100. Corporation R has a federal loss of $1,500 with no Oregon modifications. Corporation S has federal “separately computed taxable income” of $1,000, no Oregon modifications, and pays a dividend of $900 on the preferred stock. For both federal and Oregon purposes, R’s loss is a group loss. It can be offset against P’s Oregon net income of $1,000 leaving a balance of $500. The $500 balance of R’s loss can be offset against S’s net income to the extent it was not distributed to preferred stockholders ($100). The remaining $400 cannot be deducted in 1991. Therefore, the Oregon consolidated taxable income of the group is computed as follows: [See PDF link below.] Example 2: Assume the same facts as in Example 1, except that corporations R and S are unitary but P is not. Without corporation P in the consolidated Oregon return, the Oregon apportionment percentage increases to 75 percent. In this case, R’s loss cannot be offset against P’s income since they are not unitary. Corporation R’s loss can only be offset against S’s net income to the extent it was not distributed to preferred stockholders ($100). Therefore, $1,400 of the loss cannot be deducted in 1991 and the Oregon consolidated taxable income of the group would be computed as follows: [See PDF link below.] [Publications: The publication(s) referred to or incorporated by reference in this rule is available from the Department of Revenue pursuant to ORS 183.360(2) and ORS 183.355(6).] [ED. NOTE: To view attachments referenced in rule text, click here to view rule.] Statutory/Other Authority: ORS 305.100 Statutes/Other Implemented: ORS 317.713 History: REV 82-2017, minor correction filed 12/28/2017, effective 12/28/2017 REV 55-2017, f. & cert. ef. 8-3-17 Renumbered from 150-317.713, REV 69-2016, f. 8-15-16, cert. ef. 9-1-16 RD 9-1992, f. 12-29-92, cert. ef. 12-31-92 RD 7-1991, f. 12-30-91, cert. ef. 12-31-91
150-317-0610 Modified Federal Consolidated Taxable Income Federal consolidated taxable income must be modified if the affiliated group of corporations consists of more than one unitary group or includes any alien, domestic, or foreign insurer that is excluded from the consolidated state return under ORS 317.710 (5) or (7). The separate taxable income determined under the provisions set forth in the treasury regulations under Internal Revenue Code (IRC) section 1502 attributable to an affiliated corporation, which does not belong to the unitary group of which the corporation subject to tax under this chapter is a member, or attributable to insurers excluded from the federal consolidated state return under ORS 317.710 (5) or (7), must be subtracted from federal consolidated taxable income. Example: Corporations M, G, P, and W file a consolidated federal return. Corporations M, P, and W are engaged in a single unitary business. Corporation G's business activities are separate and unrelated. Corporation P is an insurance company doing business in Oregon and is required to be excluded from the federal consolidated return by ORS 317.710. Modified federal consolidated taxable income is computed by subtracting, from federal consolidated taxable income, Corporation G and P’s separate taxable incomes and by reversing the necessary adjustments pursuant to the provisions set forth in the treasury regulations under IRC section 1502 attributable to Corporations G and P. [ Publications : Contact 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 183.355(1)(b).] Statutory/Other Authority: ORS 305.100 Statutes/Other Implemented: ORS 317.715 History: REV 71-2017, amend filed 12/22/2017, effective 01/01/2018 Renumbered from 150-317.715(3)-(A), REV 69-2016, f. 8-15-16, cert. ef. 9-1-16 Renumbered from 150-317.715(2)-(A), REV 2-2014, f. & cert. ef. 7-31-14 Renumbered from 150-317.715(2), RD 7-1991, f. 12-30-91, cert. ef. 12-31-91 RD 15-1987, f. 12-10-87, cert. ef. 12-31-87 RD 12-1985, f. 12-16-85, cert. ef. 12-31-85
150-317-0630 Oregon Return: Apportionment Formula (1) Each member of an affiliated group of corporations must be treated as a separate corporation for purposes of determining whether it is subject to the tax jurisdiction of Oregon. A corporation is subject to the tax jurisdiction of Oregon if it is "doing business" in Oregon as defined under ORS 317.010(4) or has income from Oregon sources taxable under 318.020. (2) In applying the apportionment provisions of ORS 314.280 or 314.605 to 314.667, each corporation subject to the tax jurisdiction of Oregon must be considered separately. Example: Corporations A, B and C are members of the same unitary group and file a consolidated federal return. Corporation C is "doing business" in Oregon as defined under ORS 317.010(4) while Corporations A and B have no activities in Oregon. Since Corporation C is the only member of the affiliated group subject to the tax jurisdiction of Oregon, the Oregon amounts included in the numerator of the apportionment formula are determined by applying the provisions of 314.605 to 314.667 to the business activities of Corporation C. The denominator of the apportionment formula will include the everywhere amounts for Corporations A, B and C as determined by applying the provisions of 314.655 to 314.667. See OAR 150-314-0439 and 150-314-0441 for an explanation regarding how ORS 317.715(3) and this rule work with the "primary business activity" provisions of 314.665(6). (3) The factors included in the apportionment formula of an Oregon return must be computed by eliminating transactions between members of the affiliated group filing the Oregon return. See OAR 150-314-0385 regarding transactions between members of an affiliated group filing an Oregon return and related pass-through entities such as partnerships and S corporations owned by other members of that affiliated group. Statutory/Other Authority: ORS 305.100 Statutes/Other Implemented: ORS 317.715 History: REV 18-2021, amend filed 12/15/2021, effective 01/01/2022 Renumbered from 150-317.715(4)(b), REV 69-2016, f. 8-15-16, cert. ef. 9-1-16 Renumbered from 150-317.715(3)(b), REV 2-2014, f. & cert. ef. 7-31-14 REV 11-2004, f. 12-29-04, cert. ef. 12-31-04 REV 1-2001, f. 7-31-01, cert. ef. 8-1-01 RD 10-1986, f. & cert. ef. 12-31-86 RD 12-1985, f. 12-16-85, cert. ef. 12-31-85
150-317-0640 Member of a Unitary Group Incorporated in a Listed Foreign Jurisdiction The following provisions are intended as guidance for any corporation doing business in this state that is part of a unitary group that includes a member incorporated in a foreign jurisdiction listed in subsection (2)(b) of ORS 317.715. (1) To determine the computation of income (or loss) for a unitary corporation that is incorporated in a listed foreign jurisdiction and that is not otherwise required to file a consolidated federal return, use the foreign corporation’s net income (or loss) as reported on line 18, Schedule C of federal Form 5471. (2) Unless specifically prescribed by other law, the income of the foreign corporation is not to be double taxed by this state. If any portion of the foreign corporation’s income that is added to federal taxable income pursuant to subsection (2)(a) of ORS 317.715 was already included in the taxpayer’s Oregon taxable income, the taxpayer is allowed a subtraction for the portion of the income that previously was included in Oregon taxable income. The taxpayer must attach a schedule to the return and explain how the income was previously included in Oregon taxable income and how the subtraction amount was determined. (3) Unless specifically prescribed by other law, items of expense or loss of the foreign corporation are not to be double deducted by the taxpayer. If any portion of the foreign corporation’s loss or expense that is required to be included in the determination of federal taxable income pursuant to subsection (2)(a) of ORS 317.715 was already included in the computation of the taxpayer’s Oregon taxable income, the taxpayer must reduce the loss or expense by the amount previously included in the computation of Oregon taxable income. The taxpayer must attach a schedule to the return and explain how the loss was previously included in the computation of Oregon taxable income and how the reduction amount was determined. [Publications: Contact 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 183.360(2) and 183.355(1)(b).] Statutory/Other Authority: ORS 305.100 & 317.715 Statutes/Other Implemented: ORS 317.715 History: Renumbered from 150-317.715(5), REV 69-2016, f. 8-15-16, cert. ef. 9-1-16 REV 2-2014, f. & cert. ef. 7-31-14
150-317-0660 Computation of Taxable Income; Excess Loss Accounts An Oregon subtraction is allowed for the amount of excess loss account included in federal taxable income under the provisions of Treasury Regulation subsection 1.1502-19 if: (1) The losses did not offset unitary income in the year incurred; or (2) The excess losses were attributable to losses incurred in tax years beginning prior to January 1, 1986. Example 1: Corporation P purchased 100 percent of the stock of Corporation S for $1,000 on January 1, 1986. P and S were not unitary and S had negative earning and profits (E&P) of $1,000 in the tax year ending December 31, 1986. They filed a consolidated federal and separate Oregon returns in 1986. P and S were unitary and filed consolidated federal and Oregon returns in 1987. During 1987, S realized another negative E&P of $1,000. P sold S to an unrelated buyer for $1,000 on January 1, 1988. [Table not included. See PDF link below.] Example 2: Same facts as Example (1), except that all events took place two years earlier. The 1986 Oregon return would show a subtraction of $2,000,000 because both losses, even the 1985 loss which did offset unitary income, were incurred in tax years beginning before January 1, 1986. [ED. NOTE: To view attachments referenced in rule text, click here to view rule.] Statutory/Other Authority: ORS 305.100 Statutes/Other Implemented: ORS 317.720 History: REV 83-2017, minor correction filed 12/28/2017, effective 12/28/2017 REV 61-2017, f. & cert. ef. 8-8-17 Renumbered from 150-317.720, REV 69-2016, f. 8-15-16, cert. ef. 9-1-16 RD 7-1993, f. 12-30-93, cert. ef. 12-31-93
150-317-0670 Application for Relief If the application of ORS 317.715 is unduly burdensome or produces an inequitable or unreasonable result, the taxpayer may request relief under this section. The request for relief must be made in writing to the Oregon Department of Revenue, Business Division. The request for relief must be filed within 180 days after the beginning of the tax year for which the relief is being requested, and must include the following information: (1) A statement that the request for relief is made under the provisions of ORS 317.725(1)(b); (2) A concise statement of the facts on which the request is based; (3) A statement of the proposed solution; and (4) A statement of the impact of the proposed solution on the tax liability of the taxpayer. Statutory/Other Authority: ORS 305.100 Statutes/Other Implemented: ORS 317.725 History: Renumbered from 150-317.725(1)(b), REV 69-2016, f. 8-15-16, cert. ef. 9-1-16 REV 12-2000, f. 12-29-00, cert. ef. 12-31-00 RD 12-1985, f. 12-16-85, cert. ef. 12-31-85