reglab/statecodes huggingface dataset:
2023 Oregon Revised Statutes › Volume : 08 - Revenue and Taxation › Chapter 314 - Taxes Imposed Upon or Measured by Net Income › Section 314.671 - Qualifying investment contract; duration; remedies.

(1) The Governor, in consultation with the Director of the Oregon Business Development Department and the Director of the Department of Revenue, may enter into, on behalf of the State of Oregon, a qualifying investment contract with any taxpayer according to the provisions of ORS 314.668 to 314.673.
(2) Any contract executed pursuant to subsection (1) of this section on or after December 14, 2012, and before March 15, 2013, that meets the requirements of a qualifying investment contract is ratified by ORS 314.668 to 314.673.
(3) A taxpayer may not satisfy the requirement that a qualifying investment result in an increase in the number of employees of the taxpayer by gain of another entity’s existing Oregon employees through a merger or acquisition of any portion of that entity.
(4) A qualifying investment contract executed under ORS 314.668 to 314.673 may not be less than five years’ duration and may not exceed 30 years’ duration.
(5) The obligations of the State of Oregon under a qualifying investment contract:
(a) Include the promise of this state that, if the taxpayer commences a qualifying investment, the taxpayer’s Oregon corporate tax liability may not exceed the amount the taxpayer would pay or owe under the single sales factor method for each tax year that ends during the term of the qualifying investment contract; and
(b) May not be abridged, impaired, limited or modified by any subsequent law.
(6) If a taxpayer that has executed a qualifying investment contract files a report or return with the Department of Revenue for a tax year ending during the term of the qualifying investment contract and reporting personal income taxes or corporate excise or income taxes imposed under ORS chapter 316, 317 or 318, that are determined in whole or part by apportioning income using the single sales factor method, the department may not assess a deficiency against the taxpayer that is attributable to the use of a different method of apportionment.
(7) An action for a breach of a qualifying investment contract may be brought against the State of Oregon.
(8) The sole and exclusive remedies for the State of Oregon in an action for breach of a qualifying investment contract brought by the state shall be:
(a) A judgment rescinding the qualifying investment contract; and
(b) A judgment awarding an amount equal to the difference, if any, between:
(A) The amount of taxes due from the taxpayer under the single sales factor method from the date of breach through termination of the qualifying investment contract; and
(B) The amount of taxes due from the taxpayer during the same period using the method of apportioning income:
(i) Under the tax laws that would have applied to the taxpayer but for the qualifying investment contract; or
(ii) Identified in the judgment as fairly representing the extent of the taxpayer’s business activity in this state. [2012 s.s. c.1 §5; 2017 c.43 §8]
2023 Oregon Revised Statutes › Volume : 08 - Revenue and Taxation › Chapter 314 - Taxes Imposed Upon or Measured by Net Income › Section 314.673 - Rules; report to Legislative Assembly.

(1) The Oregon Business Development Department may, after consultation with the Department of Revenue, adopt rules to implement ORS 314.668 to 314.673, including rules that define terms consistently with ORS 314.668 to 314.673. Rules adopted under this section apply only to qualifying investment contracts executed on or after the date the rule is adopted.
(2) On or before February 15 of each odd-numbered year, the Oregon Business Development Department shall report to the Legislative Assembly in the manner provided in ORS 192.245 regarding the progress of qualifying investment contracts executed under ORS 314.668 to 314.673, including whether each taxpayer subject to a qualifying investment contract has complied with the employment requirement under ORS 314.668 (4). [2012 s.s. c.1 §6]
2023 Oregon Revised Statutes › Volume : 08 - Revenue and Taxation › Chapter 314 - Taxes Imposed Upon or Measured by Net Income › Section 314.674 - Apportionment of broadcasting sales.

(1) As used in this section:
(a) "Broadcasting" means the activity of transmitting programming through any one-way electronic signal by radio waves, microwaves, wires, coaxial cables, wave guides or other conduits of communications.
(b) "Total gross receipts" means all gross receipts of a person engaged in broadcasting from transactions and activities in the regular course of the person’s trade or business, except receipts from sales of real or tangible personal property.
(2)(a) In the case of broadcasting sales, a taxpayer’s market for sales for purposes of ORS 314.665 is in this state if the taxpayer’s audience or subscribers are in this state. The numerator of the sales factor based on audience or subscribers shall include sales determined using third-party ratings information where available and a taxpayer with sales from broadcasting shall make actual information from the taxpayer’s books, papers, records or memoranda available to the Department of Revenue to determine the taxpayer’s audience or subscribers.
(b) The denominator of the sales factor shall include the total gross receipts derived by the taxpayer from transactions in the regular course of the taxpayer’s trade or business, including receipts from real or tangible personal property.
(c) If information sufficient for the taxpayer to determine audience or subscribers is not available, the ratio of population in Oregon to population in the United States shall be used to apportion income.
(3) For broadcasting sales receipts that derive from licensing to subscription services or advertising on subscription services, if information sufficient for the taxpayer to determine audience or subscribers is not available, the taxpayer shall use 0.6 percent multiplied by the taxpayer’s receipts from licensing to subscription services and from advertising on subscription services in the numerator of the sales factor.
(4) A taxpayer engaged in broadcasting may elect to use subsection (2) of this section in apportioning the taxpayer’s total gross receipts. [2021 c.74 §2]
Note:
Section 5, chapter 74, Oregon Laws 2021, provides:
Sec. 5.
Section 2 of this 2021 Act [314.674], the amendments to ORS 314.665 by section 3 of this 2021 Act and the repeal of ORS 314.680, 314.682, 314.684, 314.686, 314.688 and 314.690 by section 4 of this 2021 Act apply to tax years beginning on or after January 1, 2020. [2021 c.74 §5]
2023 Oregon Revised Statutes › Volume : 08 - Revenue and Taxation › Chapter 314 - Taxes Imposed Upon or Measured by Net Income › Section 314.675 - Apportionment of net loss; net loss deduction; limitations.

If the operations of a taxpayer subject to ORS 314.280 or 314.615 result in a net loss, that net loss shall be apportioned in the same manner as the net income so as fairly and accurately to reflect the net loss of the business done within this state. The net loss applicable to Oregon income pursuant to this section shall then become the net loss deduction for subsequent years which may be deducted from apportioned net income in the same manner as set forth in the Personal Income Tax Act of 1969, and in ORS chapters 317 and 318. The limitations as to the amount deductible and the time limitations in those statutes shall apply to the apportioned net loss deduction computed pursuant to this section. [1965 c.152 §23; 1969 c.493 §89; 1983 c.162 §55]
2023 Oregon Revised Statutes › Volume : 08 - Revenue and Taxation › Chapter 314 - Taxes Imposed Upon or Measured by Net Income › Section 314.695 - Application of ORS 314.280 and 314.605 to 314.675.

The provisions of ORS 314.280 and 314.605 to 314.675 apply to the allocation and apportionment of the income of corporations and nonresident individuals, and do not apply to the income of resident individuals, resident estates, and resident trusts taxable as provided in the Personal Income Tax Act of 1969. [1967 c.60 §2; 1969 c.493 §90]
2023 Oregon Revised Statutes › Volume : 08 - Revenue and Taxation › Chapter 314 - Taxes Imposed Upon or Measured by Net Income › Section 314.698 - Treatment of global intangible low-taxed income.

For purposes of ORS 317.267, amounts of global intangible low-taxed income described in section 951A of the Internal Revenue Code and included in gross income shall be treated in the same manner as a dividend. [2019 c.556 §4]
2023 Oregon Revised Statutes › Volume : 08 - Revenue and Taxation › Chapter 314 - Taxes Imposed Upon or Measured by Net Income › Section 314.712 - Partnerships not subject to income tax; exceptions.

(1) Except as provided in ORS 314.722 or 314.731 to 314.737, a partnership as such is not subject to the tax imposed by ORS chapter 316, 317 or 318. Partnership income shall be computed pursuant to section 703 of the Internal Revenue Code, with the modifications, additions and subtractions provided in this chapter and ORS chapter 316. Persons carrying on business as partners are liable for the tax imposed by ORS chapter 316, 317 or 318 on their distributive shares of partnership income only in their separate or individual capacities.
(2) If a partner engages in a transaction with a partnership other than in the partner’s capacity as a member of the partnership, the transaction shall be treated in the manner described in section 707 of the Internal Revenue Code. [1989 c.625 §28 (enacted in lieu of 316.342); 1999 c.90 §5; 2019 c.132 §7]
2023 Oregon Revised Statutes › Volume : 08 - Revenue and Taxation › Chapter 314 - Taxes Imposed Upon or Measured by Net Income › Section 314.714 - Character of partnership income; procedure if partner’s treatment of item inconsistent with partnership treatment; rules.

(1) Each item of partnership income, gain, loss or deduction has the same character for a partner as it has for federal income tax purposes. If an item is not characterized for federal income tax purposes, it has the same character for a partner as if realized directly from the source from which realized by the partnership or incurred in the same manner as incurred by the partnership.
(2) A partner’s distributive share of an item of partnership income, gain, loss or deduction (or item thereof) shall be that partner’s distributive share of partnership income, gain, loss or deduction (or item thereof) for federal income tax purposes as determined under section 704 of the Internal Revenue Code and adjusted for the modifications, additions and subtractions provided in this chapter and ORS chapters 316, 317 and 318.
(3) A partner shall, on the partner’s return, treat a partnership item in a manner that is consistent with the treatment of the partnership item on the partnership return, unless the partner notifies the Department of Revenue of the inconsistency. The department shall prescribe by rule the method for notification of an inconsistency. [1989 c.625 §30 (enacted in lieu of 316.347); 1993 c.726 §22; 1999 c.90 §6; 2019 c.132 §8]
2023 Oregon Revised Statutes › Volume : 08 - Revenue and Taxation › Chapter 314 - Taxes Imposed Upon or Measured by Net Income › Section 314.716 - Basis of partner’s interest; gain or loss on sale; election to adjust basis.

(1) The adjusted basis of a partner’s interest in a partnership shall be determined pursuant to the method described in sections 704(c)(1)(B)(iii), 705 and 733 of the Internal Revenue Code, and shall be increased or decreased as provided in this chapter and ORS chapter 316, 317 or 318, whichever is applicable.
(2) Upon the sale or exchange of an interest in a partnership, gain or loss shall be recognized to the transferor partner pursuant to section 741 of the Internal Revenue Code.
(3) If a partnership elects to adjust the basis of its assets under section 754 of the Internal Revenue Code, then upon a transfer of an interest in the partnership by sale or exchange or upon a death of a partner, that election shall also be effective for Oregon income tax purposes. [1989 c.625 §36; 1991 c.457 §19]
2023 Oregon Revised Statutes › Volume : 08 - Revenue and Taxation › Chapter 314 - Taxes Imposed Upon or Measured by Net Income › Section 314.718 - Treatment of contributions to partnership.

(1) Amounts paid or incurred to organize a partnership may be deducted in the manner provided in section 709(b) of the Internal Revenue Code.
(2) No gain or loss shall be recognized upon a contribution of property to a partnership in exchange for an interest in a partnership, unless allowed pursuant to section 721(b) of the Internal Revenue Code.
(3) The partnership’s basis in property contributed to it by a partner is the adjusted basis of the property to that partner at the time of the contribution, plus the amount (if any) of gain recognized by that partner as a result of the transfer of property to the partnership. The partnership’s holding period includes the period during which the property was held by the partner.
(4) Any increase in a partner’s share of partnership liabilities shall be considered as a contribution of money by the partner to the partnership, pursuant to section 752 of the Internal Revenue Code.
(5) Section 724 of the Internal Revenue Code shall be applied in determining the character of gain or loss recognized by a partnership upon the disposition of contributed unrealized receivables, inventory items and capital loss property. [1989 c.625 §37]
2023 Oregon Revised Statutes › Volume : 08 - Revenue and Taxation › Chapter 314 - Taxes Imposed Upon or Measured by Net Income › Section 314.720 - Treatment of distributions from partnership.

(1) Gain or loss shall not be recognized by a partner upon a distribution by a partnership to that partner, except to the extent provided in section 731 of the Internal Revenue Code.
(2) The character of gain or loss on the disposition by a distributee partner of unrealized receivables or inventory items shall be determined pursuant to section 735 of the Internal Revenue Code.
(3) The basis of property (other than money) distributed by a partnership to a partner shall be determined pursuant to sections 704(c)(1)(B)(iii) and 732 of the Internal Revenue Code, and shall be increased or decreased as provided in ORS chapter 316.
(4) If a partnership makes the election to adjust the basis of its assets under section 754 of the Internal Revenue Code, then upon a distribution of property to a partner, that election shall also be effective for Oregon income tax purposes.
(5) Payments made by a partnership in liquidation of the interest of a retiring partner or a deceased partner shall be accorded the treatment provided under section 736 of the Internal Revenue Code.
(6) Any decrease in a partner’s share of partnership liabilities or any decrease in a partner’s individual liabilities by reason of the assumption by the partnership of the partner’s individual liabilities, shall be considered to be a distribution of money to the partner by the partnership under section 752 of the Internal Revenue Code. [1989 c.625 §38; 1991 c.457 §20; 1995 c.556 §29]
2023 Oregon Revised Statutes › Volume : 08 - Revenue and Taxation › Chapter 314 - Taxes Imposed Upon or Measured by Net Income › Section 314.722 - Publicly traded partnerships taxed as corporations.

(1) As used in this section, "publicly traded partnership" means a partnership treated as a corporation for federal income tax purposes under section 7704 of the Internal Revenue Code for the tax year.
(2) Persons carrying on business as partners in a publicly traded partnership are not subject to tax under ORS chapter 316, 317 or 318 on their distributive shares of partnership income, but the publicly traded partnership is taxable as a corporation under ORS chapter 317 or 318 as provided under ORS chapter 317 or 318. [1989 c.625 §39]
2023 Oregon Revised Statutes › Volume : 08 - Revenue and Taxation › Chapter 314 - Taxes Imposed Upon or Measured by Net Income › Section 314.724 - Information return; penalty; rules.

(1) Every partnership having a resident partner or having any income derived from sources in this state, determined in accordance with the applicable rules as in the case of a nonresident individual, shall make a return for the taxable year setting forth all items of income, gain, loss and deduction, and the names and addresses of the individuals (whether residents or nonresidents) who would be entitled to share in the net income, if distributed, and the amount of the distributive share of each individual, and any other pertinent information the Department of Revenue may prescribe by regulations and instructions. The return shall be filed on or before the due date of the corresponding federal return for the tax year as prescribed under the Internal Revenue Code and the regulations adopted pursuant thereto. For purposes of this section, "taxable year" means a year or period which would be a taxable year of the partnership if it were subject to tax under ORS chapter 316.
(2) If a partnership transacting business in this state is required to make a return under subsection (1) of this section and fails to file the return or files a return which fails to show the information required under subsection (1) of this section, the Department of Revenue shall assess a penalty against the partnership in the amount specified in subsection (3) of this section for each month or part of a month during which the failure continues.
(3) The amount of the penalty imposed under subsection (2) of this section shall be determined by the department by rule. However, the amount of the penalty imposed for each month may not exceed the product of $50 multiplied by the number of persons who were partners in the partnership during any part of the taxable year, and the total amount of the penalty may not exceed five times the monthly penalty.
(4) The penalty imposed under this section is in addition to any other penalty provided by law. Any partnership against which a penalty is assessed under this section may appeal to the tax court as provided in ORS 305.404 to 305.560. If the penalty is not paid within 10 days after the order of the tax court becomes final, the department may record the order and collect the amount assessed in the same manner as income tax deficiencies are recorded and collected under ORS 314.430.
(5) The department may waive all or any part of the penalty imposed under this section if the failure was due to reasonable cause. [Formerly 316.467; 1995 c.650 §35; 2016 c.33 §17b]
2023 Oregon Revised Statutes › Volume : 08 - Revenue and Taxation › Chapter 314 - Taxes Imposed Upon or Measured by Net Income › Section 314.725 - Privilege tax applicable to partnerships.

Each partnership transacting business in this state shall, for the privilege of carrying on or doing business by it within this state, include with the filing of the return required under ORS 314.724 payment of a minimum tax of $150. [2009 c.745 §3]
2023 Oregon Revised Statutes › Volume : 08 - Revenue and Taxation › Chapter 314 - Taxes Imposed Upon or Measured by Net Income › Section 314.727 - Disclosure of partnership items to partner.

The Department of Revenue may disclose to a partner of a partnership those items of partnership gain, loss or other particulars relating to the partnership that are necessary to determine or administer the tax imposed by ORS chapter 316, 317 or 318 if the department considers the disclosure necessary to facilitate the audit of the partner’s income or excise tax return. [1997 c.100 §5]
2023 Oregon Revised Statutes › Volume : 08 - Revenue and Taxation › Chapter 314 - Taxes Imposed Upon or Measured by Net Income › Section 314.731 - Definitions.

As used in ORS 314.731 to 314.737:
(1) "Adjustment" means a partnership adjustment, as defined in section 6241 of the Internal Revenue Code, whether that adjustment arises from action by the Internal Revenue Service or from the taxpayer’s filing of an amended federal return, a federal refund claim or similar report, including any report made under section 6225(c) of the Internal Revenue Code, or an administrative adjustment request.
(2) "Adjustments report" means a report used by a taxpayer to state adjustments to any partnership-related items.
(3) "Administrative adjustment request" means a request filed by a partnership under section 6227 of the Internal Revenue Code.
(4) "Audited partnership" means a partnership subject to a partnership-level audit from which an adjustment arises.
(5) "Corporate partner" means a partner that is subject to the tax imposed under ORS chapter 317 or 318.
(6) "Direct partner" means a partner that holds an interest directly in a partnership or pass-through entity.
(7) "Federal partnership representative" means the person that a partnership designates for the tax year as the partnership’s representative, or the person the Internal Revenue Service has appointed to act as the federal partnership representative, pursuant to section 6223(a) of the Internal Revenue Code.
(8) "Indirect partner" means a partner in a partnership or pass-through entity that holds an interest directly, or through another indirect partner, in a partnership or pass-through entity.
(9) "Nonresident partner" means a partner that is not a resident partner and is an individual, a trust or an estate.
(10) "Partnership-level audit" means an examination by the Internal Revenue Service at the partnership level pursuant to sections 6221 to 6241 of the Internal Revenue Code from which an adjustment arises.
(11) "Resident partner" means a partner that is an individual who is a resident of this state as defined in ORS 316.027 for the tax year or is a resident trust or a resident estate as defined in ORS 316.282.
(12) "Reviewed year" means the tax year of a partnership that is required to be or elects to be subject to a partnership-level audit from which adjustments arise.
(13) "Taxpayer" means:
(a) A partner that is subject to the tax imposed under ORS chapter 316, 317 or 318;
(b) A partnership that is subject to a partnership-level audit or that has made an administrative adjustment request; or
(c) A tiered partner of a partnership.
(14) "Tiered partner" means a partner that is a partnership or pass-through entity. [2019 c.132 §2]
2023 Oregon Revised Statutes › Volume : 08 - Revenue and Taxation › Chapter 314 - Taxes Imposed Upon or Measured by Net Income › Section 314.735 - Time limit for notice of deficiency.

The Department of Revenue shall assess additional tax, interest and penalties for adjustments arising from an audit by the Internal Revenue Service, including a partnership-level audit, or reported by the taxpayer on an amended federal return, federal refund claim or other similar report, including a report required under section 6225(c) of the Internal Revenue Code, or as part of an administrative adjustment request, by the following dates:
(1) If a taxpayer files with the department an adjustments report or an amended Oregon tax return as required within the period specified in ORS 314.733, the department may assess any amounts, including in-lieu-of amounts, taxes, interest or penalties arising from the adjustments. The department shall issue a notice of deficiency to the taxpayer on or before the later of:
(a) The expiration of the applicable limitations period specified in ORS 314.410; or
(b) Two years following the earlier of the date the department is notified by the Internal Revenue Service or the date the taxpayer files the adjustments report or amended Oregon tax return with the department.
(2) If the taxpayer fails to file an adjustments report within the period specified in ORS 314.733 or if the adjustments report filed by the taxpayer omits adjustments or understates the correct amount of tax owed, the department may assess any amounts, including in-lieu-of amounts, taxes, interest or penalties arising from the adjustments. The department shall issue a notice of deficiency to the taxpayer on or before the later of:
(a) The expiration of the applicable limitations period specified in ORS 314.410; or
(b) Two years following the earlier of the date the department is notified by the Internal Revenue Service or the date the taxpayer files the adjustments report with the department. [2019 c.132 §4]
2023 Oregon Revised Statutes › Volume : 08 - Revenue and Taxation › Chapter 314 - Taxes Imposed Upon or Measured by Net Income › Section 314.737 - Time limit for claim for refund or credit.

Except for adjustments required to be reported for federal purposes under section 6225(a)(2) of the Internal Revenue Code, a taxpayer shall file a claim for refund or credit of tax arising from adjustments made by the Internal Revenue Service on or before the later of:
(1) The expiration of the last date for filing a claim for refund pursuant to ORS 314.415; or
(2) Two years following the date of the federal notice of final partnership adjustment. [2019 c.132 §5]
2023 Oregon Revised Statutes › Volume : 08 - Revenue and Taxation › Chapter 314 - Taxes Imposed Upon or Measured by Net Income › Section 314.739 - Obligation or right of partner to report changes in taxable income or tax liability.

Nothing in ORS 314.731 to 314.737 or the amendments to ORS 305.242, 314.712, 314.714 or 314.778 by sections 6 to 9, chapter 132, Oregon Laws 2019, is intended to affect the obligation or right of a partner subject to the tax imposed under ORS chapter 316, 317 or 318 to report changes in the partner’s taxable income subject to taxation by this state or changes in a taxpayer’s tax liability paid to or owing to this state because of changes or corrections by, or as a result of original or amended returns accepted by:
(1) The Internal Revenue Service, in the case of a partner in a partnership that elects the application of section 6221(b) of the Internal Revenue Code; or
(2) The taxing authority of another state, in the case of any partner or partnership. [2019 c.132 §10]
Note:
314.739 was enacted into law by the Legislative Assembly but was not added to or made a part of ORS chapter 314 or any series therein by legislative action. See Preface to Oregon Revised Statutes for further explanation.
2023 Oregon Revised Statutes › Volume : 08 - Revenue and Taxation › Chapter 314 - Taxes Imposed Upon or Measured by Net Income › Section 314.752

[1991 c.877 §36; 1993 c.730 §5; 1997 c.170 §34; 1997 c.534 §2; 1999 c.21 §36; 2001 c.674 §11; 2001 c.868 §9; 2001 c.932 §10; 2001 c.957 §18; 2005 c.80 §1; 2005 c.94 §80; 2007 c.625 §13; 2007 c.739 §7; 2007 c.883 §3; 2009 c.33 §§14,15,16; 2010 c.76 §26; 2011 c.83 §11; 2011 c.474 §32; 2011 c.730 §19; 2011 c.732 §9; 2013 c.750 §25; 2015 c.701 §35; 2017 c.610 §21; 2017 c.638 §1; 2018 c.108 §7; 2019 c.579 §15; renumbered 314.772 in 2019]
2023 Oregon Revised Statutes › Volume : 08 - Revenue and Taxation › Chapter 314 - Taxes Imposed Upon or Measured by Net Income › Section 314.761 - "C corporation" and "S corporation" defined for this chapter and ORS chapters 316, 317 and 318.

For purposes of this chapter and ORS chapters 316, 317 and 318:
(1) "C corporation" means, with respect to any taxable year, a corporation which is not an S corporation for such year.
(2) "S corporation" means, with respect to any taxable year, a corporation for which an election under section 1362(a) of the Internal Revenue Code is in effect for such year. [Formerly 314.730]
2023 Oregon Revised Statutes › Volume : 08 - Revenue and Taxation › Chapter 314 - Taxes Imposed Upon or Measured by Net Income › Section 314.762 - Taxation of S corporation; application of Internal Revenue Code; carryforward and carryback.

(1) Except as otherwise provided in ORS 314.766, 314.767 and 317.090, an S corporation shall not be subject to the taxes imposed by ORS chapter 316, 317 or 318.
(2)(a) Subject to paragraphs (b) to (d) of this subsection, the taxable income of an S corporation shall be computed pursuant to section 1363(b) of the Internal Revenue Code, with the modifications, additions and subtractions provided in this chapter and ORS chapter 316.
(b) Except as otherwise provided under this chapter and ORS chapter 316, 317 or 318, and except as inconsistent with ORS 314.761 to 314.772, subchapter C, chapter 1, Internal Revenue Code, shall apply to an S corporation and its shareholders for Oregon tax purposes. For Oregon tax purposes, the provisions of section 1371 of the Internal Revenue Code shall apply, subject to the modifications, additions and subtractions under this chapter or ORS chapter 316, 317 or 318 and any provisions to the contrary in this chapter or ORS chapter 316, 317 or 318.
(c) Notwithstanding ORS 317.476, 317.478 or 317.479, no carryforward, arising for a taxable year for which a corporation is a C corporation, may be carried to a taxable year for which such corporation is an S corporation.
(d) Notwithstanding ORS 317.476 or other law, no carryforward, and no carryback, shall arise at the corporate level for a taxable year for which a corporation is an S corporation. [Formerly 314.732]
2023 Oregon Revised Statutes › Volume : 08 - Revenue and Taxation › Chapter 314 - Taxes Imposed Upon or Measured by Net Income › Section 314.763 - Taxation of shareholder’s income; computation; character of income, gain, loss or deduction.

(1) The shareholder’s pro rata share of the income of an S corporation is subject to tax under ORS chapter 316. In determining the tax imposed under ORS chapter 316 of a shareholder for the shareholder’s taxable year in which the taxable year of the S corporation ends (or for the final taxable year of a shareholder who dies, or of a trust or estate that terminates, before the end of the corporation’s taxable year), there shall be taken into account the shareholder’s pro rata share of the corporation’s separately stated items of income, loss or deduction and nonseparately computed income or loss, as determined under or for purposes of section 1366 of the Internal Revenue Code (including but not limited to section 1366(d) and (e) of the Internal Revenue Code), with the modifications, additions and subtractions provided under this chapter and ORS chapter 316.
(2) Each item of shareholder income, gain, loss or deduction has the same character for a shareholder under this chapter and ORS chapter 316 as it has for federal income tax purposes. If an item is not characterized for federal income tax purposes, it has the same character for a shareholder as if realized directly from the source from which realized by the S corporation or incurred in the same manner as incurred by the S corporation.
(3) In any case where it is necessary to determine the gross income of a shareholder for purposes of ORS chapter 316, such gross income shall include the shareholder’s pro rata share of the gross income of the S corporation.
(4) If any tax is imposed under ORS 314.766 for any taxable year on an S corporation, for purposes of subsection (1) of this section, the amount of each recognized built-in gain for such taxable year shall be reduced by its proportionate share of such tax.
(5) If any tax is imposed under ORS 314.767 on an S corporation, for purposes of subsection (1) of this section, each item of passive investment income shall be reduced by an amount which bears the same ratio to the amount of such tax as the amount of such item bears to the total passive investment income for the taxable year. [Formerly 314.734]
2023 Oregon Revised Statutes › Volume : 08 - Revenue and Taxation › Chapter 314 - Taxes Imposed Upon or Measured by Net Income › Section 314.764 - Treatment of distributions by S corporation.

A distribution of property made by an S corporation with respect to its stock shall be treated in the manner provided under section 1368 of the Internal Revenue Code, subject to modifications, additions and subtractions under ORS chapter 316, 317 or 318. [Formerly 314.736]
2023 Oregon Revised Statutes › Volume : 08 - Revenue and Taxation › Chapter 314 - Taxes Imposed Upon or Measured by Net Income › Section 314.765 - Employee fringe benefits; foreign income.

(1) For purposes of employee fringe benefits, and subject to this chapter and ORS chapters 305, 316, 317 and 318 and ORS 314.712 to 314.722, 314.726 and 316.124, section 1372 of the Internal Revenue Code shall apply to an S corporation and its shareholders.
(2) For purposes of foreign income, and subject to this chapter and ORS chapters 305, 316, 317 and 318 and ORS 314.712 to 314.722, 314.726 and 316.124, section 1373 of the Internal Revenue Code shall apply to an S corporation and its shareholders. [Formerly 314.738]
2023 Oregon Revised Statutes › Volume : 08 - Revenue and Taxation › Chapter 314 - Taxes Imposed Upon or Measured by Net Income › Section 314.766 - Tax on built-in gain.

(1) If, for any taxable year beginning in the recognition period, an S corporation has a net recognized built-in gain, there is hereby imposed a tax on the income of such corporation for such taxable year.
(2) The amount of the tax imposed under subsection (1) of this section shall be computed by applying the rate of tax specified in ORS 317.061 to the net recognized built-in gain of the S corporation for the taxable year.
(3) The tax imposed under subsection (1) shall be considered a tax imposed under ORS chapter 317 or 318, whichever is applicable, and shall be returned, estimated, assessed and collected and otherwise treated in the same manner as the tax imposed under ORS chapter 317 or 318. The allocation and apportionment rules of this chapter and ORS chapter 305 apply to the income subject to the tax imposed under this section. The proceeds from the tax shall be distributed in the same manner as the tax imposed under ORS chapter 317 or 318, whichever is applicable.
(4) ORS 317.476, 317.478 and 317.479 shall not apply to the tax imposed under this section. Notwithstanding ORS 314.762 (2)(c), any net operating loss carryforward arising in a taxable year for which the corporation was a C corporation shall be allowed for purposes of the tax imposed under this section as a deduction against the net recognized built-in gain of the S corporation for the taxable year. For purposes of determining the amount of any such loss which may be carried to any of the 15 subsequent taxable years, the amount of the net recognized built-in gain shall be treated as taxable income.
(5)(a) Except for estimated and other advance tax payments and except as provided under paragraph (b) of this subsection, no credits shall be allowed against the tax imposed under this section.
(b) Notwithstanding ORS 314.762 (2)(c), any credit carryforward under ORS chapter 317 or 318 arising in a taxable year for which the corporation was a C corporation shall be allowed as a credit against the tax imposed under this section in the same manner as if it were the tax imposed under ORS chapter 317 or 318.
(6) To the extent applicable, the definitions, special rules and interpretations and other provisions of section 1374 of the Internal Revenue Code that relate to the measurement of built-in gain shall apply to the tax imposed under this section. [Formerly 314.740]
2023 Oregon Revised Statutes › Volume : 08 - Revenue and Taxation › Chapter 314 - Taxes Imposed Upon or Measured by Net Income › Section 314.767 - Tax on excess net passive income.

(1) If for the taxable year an S corporation has the following, then there is hereby imposed a tax on the income of such corporation for the taxable year:
(a) Accumulated earnings and profits at the close of the taxable year; and
(b) Gross receipts more than 25 percent of which are passive investment income.
(2) The tax imposed under subsection (1) of this section shall be computed by multiplying the excess net passive income by the rate specified under ORS 317.061.
(3) The tax imposed under subsection (1) shall be considered a tax imposed under ORS chapter 317 or 318, whichever is applicable, and shall be returned, estimated, assessed and collected and otherwise treated in the same manner as the tax imposed under ORS chapter 317 or 318. The allocation and apportionment of income rules of this chapter and ORS chapter 305 apply to the income subject to the tax imposed under this section. The proceeds from the tax shall be distributed in the same manner as the tax imposed under ORS chapter 317 or 318, whichever is applicable.
(4) Notwithstanding subsection (6) of this section, the amount of passive investment income shall be determined by not taking into account any recognized built-in gain or loss of the S corporation for any taxable year in the recognition period. Terms used in the preceding sentence shall have the same respective meanings as when used in ORS 314.765.
(5) Except for estimated and other advance tax payments, no credits shall be allowed against the tax imposed under this section.
(6) To the extent applicable, the definitions, special rules and interpretations and other provisions of section 1375 of the Internal Revenue Code that relate to the measurement of excess net passive income shall apply to the tax imposed under this section.
(7) Section 1375(d) shall apply to the tax imposed under this section, except that "department" shall be substituted for the word "secretary" wherever that word appears. [Formerly 314.742]
2023 Oregon Revised Statutes › Volume : 08 - Revenue and Taxation › Chapter 314 - Taxes Imposed Upon or Measured by Net Income › Section 314.768 - S corporation or shareholder elections; rules.

(1) Subject to subsection (2) of this section, if the Internal Revenue Code requires or permits an election or revocation to be made by an S corporation, then that election or revocation shall apply for Oregon tax purposes. If the Internal Revenue Code requires or permits an election or revocation to be made by a shareholder or shareholders of an S corporation, then that election or revocation shall apply for Oregon tax purposes.
(2) The Department of Revenue may adopt rules that contravene subsection (1) of this section if the election or revocation does not carry out the purposes of this chapter and ORS chapter 305, 316, 317 or 318. [Formerly 314.744]
2023 Oregon Revised Statutes › Volume : 08 - Revenue and Taxation › Chapter 314 - Taxes Imposed Upon or Measured by Net Income › Section 314.769 - Application of sections 1377 and 1379 of Internal Revenue Code.

The definitions and special and transitional rules of sections 1377 and 1379 of the Internal Revenue Code apply for Oregon tax purposes. [Formerly 314.746]
2023 Oregon Revised Statutes › Volume : 08 - Revenue and Taxation › Chapter 314 - Taxes Imposed Upon or Measured by Net Income › Section 314.770 - Disclosure of S corporation items to shareholder.

The Department of Revenue may disclose to the shareholder of an S corporation those items of S corporation gain, loss or other particulars relating to the S corporation that are necessary to administer the tax imposed by ORS chapter 316, 317 or 318 if the department considers the disclosure necessary to facilitate the audit of the shareholder’s income tax return. [Formerly 314.749]
Note:
314.770 was added to and made a part of ORS chapter 314 by legislative action but was not added to any smaller series therein. See Preface to Oregon Revised Statutes for further explanation.
2023 Oregon Revised Statutes › Volume : 08 - Revenue and Taxation › Chapter 314 - Taxes Imposed Upon or Measured by Net Income › Section 314.771 - Recapture of LIFO benefits.

(1) Any increase in tax by reason of a recapture of LIFO benefits under section 1363(d) of the Internal Revenue Code shall be payable in four equal installments.
(2)(a) The first installment shall be paid on or before the due date for the return of the tax for the last taxable year for which the corporation was a C corporation and the three succeeding installments shall be paid on or before the due date for the corporation’s return for the three succeeding taxable years.
(b) For purposes of this subsection, the due date for returns shall be determined without regard to extensions.
(3) Notwithstanding ORS 314.400 (7), for purposes of ORS 314.400 (7), interest on each installment that is not paid on or before the date prescribed under subsection (2) of this section for payment of that installment shall accrue only from the due date for that installment.
(4) This section applies in the case of S corporation elections made after December 17, 1987. No refund or interest shall accrue to any taxpayer on account of the retroactive application under this subsection. [Formerly 314.750]
2023 Oregon Revised Statutes › Volume : 08 - Revenue and Taxation › Chapter 314 - Taxes Imposed Upon or Measured by Net Income › Section 314.775 - Definitions for ORS 314.775 to 314.784.

As used in ORS 314.775 to 314.784:
(1) "Distributive income" means the net amount of income, gain, deduction or loss of a pass-through entity for the tax year of the entity.
(2) "Lower-tier pass-through entity" means a pass-through entity, an ownership interest of which is held by another pass-through entity.
(3) "Nonresident" means:
(a) An individual who is not a resident of this state;
(b) A corporation, partnership or other business entity that has a commercial domicile, as defined in ORS 314.610, that is outside this state; or
(c) A trust that is not a resident trust or qualified funeral trust under ORS 316.282.
(4) "Owner" means a person that owns an interest in a pass-through entity.
(5) "Pass-through entity" means any entity that is recognized as a separate entity for federal income tax purposes, for which the owners are required to report income, gains, losses, deductions or credits from the entity for federal income tax purposes. "Pass-through entity" does not include any trust except a form of trust that the Department of Revenue has determined by rule to have been established or maintained primarily for tax avoidance purposes.
(6) "Upper-tier pass-through entity" means a pass-through entity that owns an interest in another pass-through entity. [2005 c.387 §1; 2009 c.33 §17]
2023 Oregon Revised Statutes › Volume : 08 - Revenue and Taxation › Chapter 314 - Taxes Imposed Upon or Measured by Net Income › Section 314.778 - Composite returns of pass-through entities; election; effect of election on nonresident owners.

(1)(a) A pass-through entity having distributive income attributable to Oregon sources shall file a composite return of personal income and corporate income and excise tax on behalf of owners that elect to be included in the composite return filed by the entity. Distributive income subject to this election does not include the distributive share that under this chapter or ORS chapter 317 or 318 must be included in the apportionable income of any direct partner that is a corporate partner, as defined in ORS 314.731, unless the corporate partner states in writing to the partnership that its distributive share of the partnership’s income and expenses is not required to be included in the corporate partner’s apportionable income. For purposes of this paragraph, a corporate partner’s distributive share is presumed to be included in the partner’s own apportionable income unless the partner provides the statement to the partnership representative.
(b) Distributive income subject to this election does not include the distributive share that under this chapter or ORS chapter 317 or 318 must be included in the apportionable income of an indirect partner that is a corporate partner, as defined in ORS 314.731, provided that the partnership can reasonably determine this.
(2) A pass-through entity shall file a composite return under this section only if one or more owners that are nonresidents make an election under this section.
(3) The election is irrevocable and shall be made by owners in the time, form and manner prescribed by the Department of Revenue.
(4) The composite return shall report the share of distributive income of each electing owner, the share of distributive income from Oregon sources of each electing owner and any other information required by the department. The composite return shall be filed with the department in the time, form and manner prescribed by the department. The pass-through entity shall file an amended composite return to report adjustments arising from an audit or other action by the Internal Revenue Service or to correct any item reported on the original composite return.
(5)(a) An electing owner may file a nonresident personal income tax return or a corporate excise or income tax return for the tax year of the electing owner in which the electing owner’s share of distributive income reported on the composite return is properly reportable.
(b) An electing owner that files a return under this subsection shall be allowed a subtraction under ORS chapter 316, 317 or 318 for its share of distributive income reported on the composite return.
(6)(a) A pass-through entity that files a composite return under this section is subject to the administrative provisions of this chapter and ORS chapter 305.
(b) The department may adopt rules to prevent double taxation or double deduction of any amount included in the computation of income under this section. [2005 c.387 §2; 2019 c.132 §9]
2023 Oregon Revised Statutes › Volume : 08 - Revenue and Taxation › Chapter 314 - Taxes Imposed Upon or Measured by Net Income › Section 314.781 - Withholding; required returns and statements; pass-through entity liability.

(1) A pass-through entity shall withhold tax as prescribed in this section if:
(a) The pass-through entity has distributive income from Oregon sources; and
(b) One or more owners of the entity are nonresidents and do not have other Oregon source income.
(2) For each taxpayer described in subsection (1)(b) of this section who is subject to tax under ORS chapter 316, the entity shall withhold tax at the highest marginal rate applicable for the tax year under ORS 316.037. The withheld tax shall be computed based on the taxpayer’s share of the entity’s distributive income from Oregon sources for the entity’s tax year.
(3) For each corporation described in subsection (1)(b) of this section, the entity shall withhold tax at the rate applicable for the tax year under ORS 317.061 and 318.020. The tax shall be computed based on the corporation’s share of the entity’s distributive income from Oregon sources for the entity’s tax year.
(4) A pass-through entity that is required to withhold tax under this section shall file a withholding return or report with the Department of Revenue setting forth the share of Oregon source distributive income of each nonresident owner, the amount of tax withheld under this section and any other information required by the department. The return shall be filed with the department on the form and in the time and manner prescribed by the department. Taxes withheld under this section shall be paid to the department in the time and manner prescribed by the department.
(5) A pass-through entity that is required to withhold tax under this section shall furnish a statement to each owner on whose behalf tax is withheld. The statement shall state the amount of tax withheld on behalf of the owner for the tax year of the entity. The statement shall be made on a form prescribed by the department and shall contain any other information required by the department.
(6) The department shall apply taxes withheld under this section by a lower-tier pass-through entity on distributions to an upper-tier pass-through entity to the withholding required by the upper-tier pass-through entity under this section.
(7) A pass-through entity is liable to the State of Oregon for amounts of tax required to be withheld and paid under this section. A pass-through entity is not liable to an owner of the pass-through entity for amounts required to be withheld under this section that were paid to the department as prescribed in this section. [2005 c.387 §3]