justicedao/ipfs_state_laws huggingface dataset:
150-314-0070 Apportionment Factors Generally (1) Apportionable income is apportioned to this state by use of the formula provided in ORS 314.650 as it applies to the tax year involved or the formula provided in ORS 314.280(3)(b) for qualifying utilities. For tax years beginning on or after July 1, 2005, ORS 314.650 provides for apportionment using only the sales factor. (2) For purposes of the sales factor as used in OAR 150-314-0074 through -0084, “sales” means all gross receipts and revenues included in the taxpayer’s apportionable income. (3) For financial organizations, the three factors are modified as provided in OAR 150-314-0088. (4) Title insurance companies and health care service contractors are not classed as “domestic insurers” under ORS 317.010(11) and so may not apportion their income under ORS 317.660. These companies must apportion their income under the provisions of ORS 314.610 to 314.665, except that “sales” includes “gross premium receipts.” (5) For public utilities (other than carriers of freight or passengers), companies engaged in sea transportation services, and companies engaged in interstate river transportation, the three factors are property, payroll, and sales. (6) For companies engaged in sea transportation services and companies engaged in interstate river transportation, the three factors are modified property, payroll, and sales. (7) For carriers of freight or passengers, the three factors are modified property, payroll, and sales. Modified factors for such carriers, sea transportation companies, and interstate river transportation companies are contained in OAR 150-314-0074 through 150-314-0084. Statutory/Other Authority: ORS 305.100 & 314.280 Statutes/Other Implemented: ORS 314.280 History: REV 68-2017, amend filed 12/22/2017, effective 01/01/2018 Renumbered from 150-314.280-(E), REV 33-2016, f. 8-12-16, cert. ef. 9-1-16 REV 10-2007, f. 12-28-07, cert. ef. 1-1-08 RD 7-1993, f. 12-30-93, cert. ef. 12-31-93 RD 3-1992, f. 5-28-92, cert. ef. 6-1-92 RD 11-1988, f. 12-19-88, cert. ef. 12-31-88 RD 12-1985, f. 12-16-85, cert. ef. 12-31-85 1-1-77 11-71 11-69 1-65
150-314-0072 Apportionment Factors Property factor. Unless otherwise provided by rule, the provisions of ORS 314.655 and the rules pertaining thereto, are by this reference incorporated herein and made a part of this OAR 150-314.280-(F). Payroll factor. Unless otherwise provided by rule, the provisions of ORS 314.660 and the rules pertaining thereto, are by this reference incorporated herein and made a part of this 150-314.280-(F). Sales factor. Unless otherwise provided by rule, the provisions of ORS 314.665 and the rules pertaining thereto, are by this reference incorporated herein and made a part of this OAR 150-314.280 Statutory/Other Authority: ORS 305.100 Statutes/Other Implemented: ORS 314.280 History: Renumbered from 150-314.280-(F), REV 33-2016, f. 8-12-16, cert. ef. 9-1-16 REV 4-2011, f. 12-30-11, cert. ef. 1-1-12 12-19-75 1-70 1-65
150-314-0074 Modified Factors for Carriers of Freight or Passengers: General Rule (1) Apportionable income is apportioned to this state by use of the formula provided in ORS 314.650 as it applies to the tax year involved. For tax years beginning on or after July 1, 2005, ORS 314.650 provides for apportionment using only the sales factor. (2) A substantial portion of the net income of taxpayers engaged in the transportation of freight or passengers within and without Oregon results from the movement of revenue-producing equipment, drivers, and other personnel. It is therefore necessary in calculating the apportionment factor of such carriers to reflect the results of the movement of such equipment and personnel by using revenue miles traveled both within and without the state. Thus, the apportionment formula of such transportation companies is to be computed as follows in tax years beginning before July 1, 2005: (a) Tangible Property. Fixed properties, such as buildings and land used in the business, shop equipment, and cars and trucks used in gathering or delivering local freight, are assigned to the state in which such properties are located. The value of trucks or other equipment used in over-the-road hauling or other transportation is assigned to this state on a revenue miles basis. For example, if ten percent of a taxpayer’s revenue miles are in Oregon, then ten percent of the value of the revenue-producing equipment is included as part of the Oregon property factor. (b) Payroll. The wages and salaries of employees assigned to fixed locations within this state are included in the Oregon payroll factor. The wages of over-the-road or other transportation equipment are assigned to this state upon the basis of revenue miles. The wages of such personnel are apportioned to Oregon in the proportion that revenue miles traveled within this state bear to total revenue miles traveled everywhere. (c) Sales. Sales are assigned to this state in the proportion that the revenue miles traveled within the state bear to the total revenue miles traveled everywhere. Statutory/Other Authority: ORS 305.100 & 314.280 Statutes/Other Implemented: ORS 314.280 History: REV 68-2017, amend filed 12/22/2017, effective 01/01/2018 Renumbered from 150-314.280-(G), REV 33-2016, f. 8-12-16, cert. ef. 9-1-16 REV 10-2007, f. 12-28-07, cert. ef. 1-1-08 RD 11-1992, f. 12-30-92, cert. ef. 12-31-92 RD 7-1983, f. 12-20-83, cert. ef. 12-31-83 12-31-82 12-19-75 12-70 1-65
150-314-0086 Other Methods: Limited Application (1) For taxpayers that are taxable both within and without Oregon, the provisions of ORS 314.280 will ordinarily require apportionment to arrive at a fair and accurate measure of net income from business activity in Oregon. If the taxpayer can show that no unitary relationship exists between its business activities within Oregon and those activities outside Oregon, then the taxpayer may use separate accounting. (2) If the allocation and apportionment provisions of OAR 150-314-0062 to 150-314-0088 do not fairly and accurately reflect the net income of the business done within Oregon, based on the taxpayer’s business activity within Oregon, the department may require or the taxpayer may request an alternative method of apportionment and the department may approve that method of apportioning all or any part of the net income from the taxpayer’s business activity within Oregon: (3) The request to use an alternative method of apportionment shall be filed in writing with the department. The request must be signed by the taxpayer or the taxpayer’s authorized representative and shall be filed separately from the taxpayer’s return. The request shall include a complete explanation of the alternative method as well as an explanation why the apportionment factors in OAR 150-314-0062 through 150-314-0088 should not be used. Upon receipt of the request, the department will review it and issue a letter either authorizing or denying the request. If denied, the taxpayer can appeal that action as provided in ORS 305.275. An alternative apportionment method may be used only after receiving written authorization from the department. The authorization may be revoked if, upon audit, it is determined that the alternative method does not arrive at a fair and accurate measure of net income from business activity in Oregon. Once an alternative method has been authorized, it shall be used until a request to change is made and approved by the department or until the authorization is revoked in an audit. (4) Examples of alternative methods of apportionment include: (a) The exclusion of any one or more of the factors; (b) The inclusion of one or more additional factors which will fairly and accurately reflect the taxpayer’s net income from business activity in Oregon; or (c) The employment of any other method to effectuate an equitable allocation and apportionment of the taxpayer’s income. Statutory/Other Authority: ORS 305.100 Statutes/Other Implemented: ORS 314.280 History: Renumbered from 150-314.280-(M), REV 33-2016, 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 RD 15-1987, f. 12-10-87, cert. ef. 12-31-87 Renumbered from 150-314.280-(I) 1-65
150-314-0090 Public Utilities: Sale of Commodities (1) The sale of a commodity such as electricity, water, steam, oil, oil products or gas, including but not limited to natural and liquid gas, which is delivered or shipped to a purchaser with a contractually specified point of physical delivery in Oregon, is a sale in this state. It does not matter whether the purchaser uses the property in Oregon, transfers the property to another state, or resells the property in Oregon. If the contract states the point of delivery is at the Oregon border with another state, the sale is presumed to be in Oregon unless the taxpayer can demonstrate to the satisfaction of the department that delivery occurred in some other place. Example 1: A provider of wholesale electricity enters into a contract to deliver a specified amount and duration of a supply of electricity to a purchaser who takes possession at a contractually specified point of physical delivery in Oregon. The sale is an Oregon sale. (2) A taxpayer who contracts to sell electricity to and also buy electricity from the same entity during the same period or partial period of time will have an offsetting contractual amount, also known as a book-out transaction. The gross sales of electricity, without regard to the offsetting purchase amount, are considered to be Oregon sales if the contractually specified point of physical delivery is in Oregon. Example 2: Company A signed a contract on January 2, 2016, to purchase 50 megawatts of electricity for a period of 10 hours starting November 15, 2016, from Company B with a delivery point of Malin, Oregon. For this same time period, Company A signed a contract on March 15, 2014, to sell 30 megawatts of electricity to Company B with a point of delivery at Malin, Oregon. The 30 megawatts of power is recorded as a book-out transaction on both companies’ books for reporting to Oregon. The offsetting transaction for the 30 megawatts is deemed to be delivered in Oregon for the purposes of computing the Oregon sales factor. Company A will report the sale of 30 megawatts in its Oregon sales factor numerator and Company B will report the sale of 50 megawatts (20 megawatts to complete the sales contract plus 30 megawatts from the book-out transaction) of electricity in its Oregon sales factor numerator. [Publications: Publications referenced are available from the agency.] Statutory/Other Authority: ORS 305.100 & 314.280 Statutes/Other Implemented: ORS 314.280 History: Renumbered from 150-314.280-(O), REV 33-2016, f. 8-12-16, cert. ef. 9-1-16 REV 5-2016, f. & cert. ef. 7-1-16 REV 1-2016(Temp), f. 1-25-16, cert. ef. 1-26-16 thru 7-23-16 REV 5-2015, f. 12-23-15, cert. ef. 1-1-16
150-314-0100 Disallowance of Certain Intercompany Transactions Involving Intangible Assets (1) The provisions of section (3) of this rule apply in situations where: (a) An intangible asset is owned by one corporation, organization, trade or business (the owner) and used by another (the user) for a royalty or other fee, (b) Both the owner and the user are "owned by the same interests," as defined in Treas. Reg.§1.469-4T, paragraph (j), (c) The owner and the user are not included in the same Oregon tax return, and (d) The separation of ownership of the intangible asset from the user of the intangible asset results in either: (A) Evasion of tax, or (B) A computation of Oregon taxable income that is not clearly reflective of Oregon apportionable income. (2) For purposes of this rule, separation of the ownership and use of an intangible asset is for "evasion of taxes" when such separation has no effect on the operations of the user beyond payment of the royalty or other fee. (3) The user of the intangible asset must add the royalty or other expense for such use to federal taxable income as an "other addition" on the Oregon tax return. The owner of the intangible asset must subtract the royalty or other income from such use from federal taxable income as an "other subtraction" on the Oregon tax return. The following example is for illustrative purposes only. Example: Alpha Corporation (Alpha) uses a number of trademarks in its retail sales business. After developing the value of the trademarks over a period of 30 years, Alpha incorporated a subsidiary, Beta, Inc. (Beta) in Bermuda and transferred the trademarks to Beta for shares of newly issued Beta stock. Alpha paid royalties to Beta for use of the trademarks. Beta is not included in Alpha's consolidated federal and Oregon tax returns. After the transfer of the trademarks to Beta, Alpha uses the trademarks as it had before the transfer and the only change in its business operation is the payment of the royalty. The transfer of the trademarks does not change Alpha's business operations as they are readily apparent to or as they affect relations with customers, vendors, or other external parties. Alpha requires that Beta manage the trademarks as Alpha had before the transfer. Alpha must add the royalty deduction back to federal taxable income on its Oregon Corporation Excise Tax return. If Beta is subject to Oregon taxation, the royalty income must be subtracted from its federal taxable income. [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 314.295 History: REV 68-2017, amend filed 12/22/2017, effective 01/01/2018 Renumbered from 150-314.280(3), REV 33-2016, f. 8-12-16, cert. ef. 9-1-16 Renumbered from 150-314.295, REV 32-2016, f. 8-12-16, cert. ef. 9-1-16 REV 3-2009, f. & cert. ef. 7-31-09 REV 4-2003, f. & cert. ef. 12-31-03
150-314-0115 Interest on Deferred Oregon Tax Liability with Respect to Installment Obligations (1) Corporations with income from business activity taxable both within and without this state must compute interest on deferred Oregon tax liability with respect to installment obligations using the relevant apportionment and allocation provisions of ORS Chapter 314. (2) Interest on deferred Oregon tax liability with respect to apportionable income from installment obligations must be computed using the Oregon apportionment factor for the year of the installment sale. (3) Interest on deferred Oregon tax liability with respect to nonapportionable income from installment obligations must be computed using the allocation provisions that apply to the income from the installment sale. Example 1: C Corp is a toy manufacturer doing business in Oregon and Washington. In 2016, C Corp sells a factory in Washington. The sales price is $11,000,000, the basis for Oregon tax purposes is $5,500,000, and the gross profit percentage is 50 percent. Under the terms of the sale, C Corp receives $1,000,000 in 2016 and a note for $10,000,000 (including $5,000,000 of unrecognized gain) to be paid in five equal annual installments. C Corp’s Oregon apportionment percentage for its 2016 calendar year return is 25 percent. The interest rules under IRC 453A and ORS 314.302 apply because the face amount of installment obligations remaining unpaid at the end of 2016 is greater than $5,000,000. The interest to report as tax on the 2016 Oregon return is computed as follows: [See PDF link below.] Example 2: Assume the same facts as Example 1. In addition, during 2017, C Corp receives a payment of $2,000,000 on the 2016 installment obligation. This leaves an unpaid balance of $8,000,000 at the end of 2017, including unrecognized gain of $4,000,000. C Corp’s Oregon apportionment percentage for 2017 is 34 percent. The interest to report as tax on C Corp’s 2017 Oregon return is computed as follows: [See PDF link below.] Example 3: Assume the same facts as in Examples 1 and 2, except that the property sold by C Corp in 2016 is nonbusiness property located in Washington. No interest on deferred Oregon tax liability will be reported to Oregon in either 2016 or 2017. Example 4: Assume the same facts as in Example 3, except that the nonbusiness property sold is located in Oregon. The amount of interest to report as tax on the 2016 and 2017 Oregon tax returns is calculated as follows: [See PDF link below.] [ED. NOTE: To view attachments referenced in rule text, click here to view rule.] Statutory/Other Authority: ORS 305.100 Statutes/Other Implemented: ORS 314.302 History: REV 68-2017, amend filed 12/22/2017, effective 01/01/2018 REV 37-2017, f. & cert. ef. 8-1-17 Renumbered from 150-314.302, REV 32-2016, f. 8-12-16, cert. ef. 9-1-16 RD 9-1992, f. 12-29-92, cert. ef. 12-31-92
150-314-0125 Listed Transaction Reporting Requirement (1) For tax years beginning on or after January 1, 2007, taxpayers who engage in or receive a tax benefit from participation in reportable transactions as defined under section 2, chapter 568, Oregon Laws 2007 are required to report their participation on the Oregon tax return for the tax year in which the participation took place. (2) In addition to any other applicable penalties, a taxpayer is subject to penalties as provided in section 9, chapter 568, Oregon Laws 2007 if the taxpayer fails to report the transaction as required on the Oregon return. Statutory/Other Authority: ORS 305.100 & 314.308 Statutes/Other Implemented: ORS 314.308 History: Renumbered from 150-314.308, REV 32-2016, f. 8-12-16, cert. ef. 9-1-16 REV 10-2007, f. 12-28-07, cert. ef. 1-1-08
150-314-0130 Definition: Final Determination An order of the director of the department or a court decision becomes final after all periods of appeal have expired. Statutory/Other Authority: ORS 305.100 Statutes/Other Implemented: ORS 314.330 History: Renumbered from 150-314.330(2), REV 32-2016, f. 8-12-16, cert. ef. 9-1-16 RD 5-1997, f. 12-12-97, cert. ef. 12-31-97 RD 1-1997(Temp), f. 6-13-97, cert. ef. 7-4-97 thru 12-31-97 RD 11-1988, f. 12-19-88, cert. ef. 12-31-88
150-314-0135 Returns When Accounting Period Changed (1) A return may not be made for a period of more than one year. A separate return for a fractional part of a year is therefore required whenever there is a change. If a change in accounting period requested by the taxpayer has been approved by the IRS for federal purposes, the change shall also be permitted for Oregon tax purposes. A copy of the approved application shall be sent to the Department. The Department will require proration of exemptions, dependency credits, etc., where the part-year return is based on a change of accounting periods. If the change is approved by the Internal Revenue Service, the return for the period necessary to effect the change shall be delinquent unless filed on or before the fifteenth day of the fourth month after the close of such period and the taxpayer shall thereafter make returns and compute income upon the basis of the new accounting period. (2) A taxpayer’s taxable year for Oregon income tax purposes shall be the same as the taxpayer’s taxable year for federal income tax purposes. Statutory/Other Authority: ORS 305.100 Statutes/Other Implemented: ORS 314.355 History: Renumbered from 150-314.355, REV 32-2016, f. 8-12-16, cert. ef. 9-1-16 12-31-84 1958
150-314-0142 Brokers’ Information Returns When required by the Department (but not otherwise), any person or organization that acted at any time as a broker or agent in stock, bond or commodity transactions (including a bank that cleared orders for depositors’ or custodians’ accounts) shall make a separate return of information for each customer, showing the total sales and the total purchases. In lieu of information with respect to each of the brokers’ customers, the Department may require returns of information with respect only to a specified customer or customers. [ED. NOTE: With the adoption of Oregon Laws 1984, Ch. 1, (Enrolled HB 3029), ORS 314.363 was repealed. The administrative rules under this section will no longer be in effect for taxable years beginning on or after January 1, 1986. For all prior years, the rules under this section shall remain in full force and effect.] [Publications: Publications referenced are available from the agency.] Statutory/Other Authority: ORS 305.100 Statutes/Other Implemented: ORS 314.360 History: Renumbered from 150-314.360(2), REV 32-2016, f. 8-12-16, cert. ef. 9-1-16 12-70 1958-1959
150-314-0150 Requirement to File Returns Electronically (Corporation E-file Mandate) (1) All corporations required to electronically file their federal corporation tax return are required to electronically file their Oregon corporation tax return. A paper tax return filed by a corporation required to electronically file its Oregon corporation tax return may be rejected, unless a waiver request has been approved by the department prior to the filing of the paper return. (2) Waivers. (a) A waiver of the electronic filing requirement granted by the Internal Revenue Service (IRS) will be accepted by the department as a waiver to the mandate under section (1). The corporation must notify the department in writing when such a waiver is granted in accordance with the department’s instructions. (b) In addition to a waiver allowed under subsection (a), the department may grant a waiver of the mandate in section (1) if the following conditions are met: (A) The corporation requests a waiver in accordance with the department’s instructions; and (B) The corporation’s facts and circumstances are such that complying with the mandate would cause the corporation an undue financial hardship. The corporation’s refusal to purchase or use the requisite software or computer equipment does not, in and of itself, satisfy the conditions for a waiver under this subsection. (c) When circumstances warrant, the department may issue an administrative waiver of the mandate in section (1) when the department determines it is necessary to promote the effective and efficient administration of the tax system. (3) If an electronic tax return cannot be accepted for processing electronically, the corporation must contact the department for assistance in correcting the rejected return errors. If the rejected return errors cannot be corrected, the corporation must receive authorization from the department prior to filing a paper return. (4) This rule is applicable to corporation tax returns filed for tax years beginning on or after January 1, 2011. Statutory/Other Authority: ORS 305.100 & 314.364 Statutes/Other Implemented: 314.364 History: REV 82-2016, f. 12-28-16, cert. ef. 1-1-17 Renumbered from 150-314.364(A), REV 32-2016, f. 8-12-16, cert. ef. 9-1-16 Renumbered from 150-314.HB2071(A), REV 6-2012, f. 7-20-12, cert. ef. 8-1-12 REV 4-2011, f. 12-30-11, cert. ef. 1-1-12