reglab/statecodes huggingface dataset:
2023 Oregon Revised Statutes › Volume : 08 - Revenue and Taxation › Chapter 314 - Taxes Imposed Upon or Measured by Net Income › Section 314.385 - Form of returns; time for filing; alternative filing formats; rules.

(1)(a) For purposes of ORS chapter 316, returns shall be filed with the Department of Revenue 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.
(b) For purposes of ORS chapters 317 and 318, returns shall be filed with the department on or before the 15th day of the month following 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.
(c) The department may allow further time for filing returns equal in length to the extension periods allowed under the Internal Revenue Code and its regulations.
(d) If no return is required to be filed for federal income tax purposes, the due date or extension period for a return shall be the same as the due date, or extension period, would have been if the taxpayer had been required to file a return for federal income tax purposes for the tax year. However, the due date for returns filed for purposes of ORS chapter 317 or 318 shall be on or before the 15th day of the month following what would have been the federal return due date for the tax year.
(2) There shall be annexed to the return a statement verified as provided under ORS 305.810 by a declaration of the taxpayer making the return to the effect that the statements contained therein are true.
(3) Returns shall be in the form the department may, from time to time, prescribe. The department shall prepare blank forms for the returns and distribute them throughout the state. The forms shall be furnished the taxpayer upon request, but failure to receive or secure a form does not relieve the taxpayer from the obligation of making any return required by law.
(4)(a) The department may by rule authorize the filing of a return in alternative formats to those described in subsection (3) of this section and may prescribe the conditions, requirements and technical standards for a filing under this subsection.
(b) Notwithstanding subsections (1) to (3) of this section, the department may by rule prescribe a different due date for a return filed in an alternative format.
(c) The policy of the Legislative Assembly in granting the department rulemaking authority under paragraph (b) of this subsection is to have the department prescribe due dates that mirror the due dates that apply to federal returns filed in alternative formats for federal tax purposes. [1957 c.632 §12 (enacted in lieu of 316.545 and 317.355); 1959 c.156 §1; last sentence of subsection (1) derived from 1959 c.156 §3; 1963 c.281 §1; 1987 c.293 §59a; 1989 c.625 §55; 1991 c.457 §17a; 1997 c.84 §1; 1997 c.839 §56; 2003 c.77 §10a; 2016 c.33 §17a]
2023 Oregon Revised Statutes › Volume : 08 - Revenue and Taxation › Chapter 314 - Taxes Imposed Upon or Measured by Net Income › Section 314.395 - Time for payment of tax; interest on delayed return.

(1) The tax shall be paid to the Department of Revenue at the time fixed by ORS 314.385 for filing the return without regard to extensions.
(2) When the time for filing a return of income is extended at the request of the taxpayer, interest at the rate established under ORS 305.220, from the time the return was originally required to be filed to the time of payment, shall be added and paid. [1969 c.166 §2; 1971 c.354 §3; 1973 c.402 §17; 1975 c.593 §13; 1980 c.20 §24; 1982 s.s.1 c.16 §6; 1987 c.293 §59b; 2017 c.278 §7]
2023 Oregon Revised Statutes › Volume : 08 - Revenue and Taxation › Chapter 314 - Taxes Imposed Upon or Measured by Net Income › Section 314.397 - Manner of payment.

The tax may be paid with uncertified check under any rules as the Department of Revenue shall adopt, but if a check so received is not paid by the financial institution on which it is drawn, the taxpayer by whom the check is tendered remains liable for the payment of the tax and for all legal penalties the same as if the check had not been tendered. [1989 c.625 §61 (enacted in lieu of 316.407); 1997 c.631 §451]
2023 Oregon Revised Statutes › Volume : 08 - Revenue and Taxation › Chapter 314 - Taxes Imposed Upon or Measured by Net Income › Section 314.401 - De minimis tax payment not required.

Notwithstanding ORS 314.395 and 314.400, if the balance of tax due as shown on the report or return filed by the taxpayer for the tax year is less than $1, payment of the amount shown shall not be required. [1999 c.73 §2]
2023 Oregon Revised Statutes › Volume : 08 - Revenue and Taxation › Chapter 314 - Taxes Imposed Upon or Measured by Net Income › Section 314.403 - Listed transaction understatement; penalty.

(1) If a taxpayer has a listed transaction understatement for a tax year, there shall be added to the tax liability of the taxpayer for the tax year a penalty equal to 60 percent of the amount of the understatement.
(2) The penalty imposed under this section applies to listed transaction understatements discovered or reported on or after January 1, 2008, and is in addition to and not in lieu of any other penalty.
(3) As used in this section, "listed transaction understatement" means the sum of:
(a) The amount determined by multiplying the highest rate of tax imposed on the taxpayer under ORS chapter 316 or, if the taxpayer is a corporation, under ORS chapter 317 or 318, by any net increase in taxable income that results from a difference between the proper tax treatment of a listed transaction and the treatment of the transaction on the return of the taxpayer; and
(b) The amount of any decrease in the aggregate amount of credits determined for purposes of ORS chapter 316 or, if the taxpayer is a corporation, for purposes of ORS chapter 317 or 318, that results from the taxpayer’s treatment of a listed transaction and the proper tax treatment of that transaction.
(4) The Department of Revenue may by rule further define "listed transaction understatement" consistent with ORS 314.307 and subsection (3) of this section. [2007 c.568 §8]
2023 Oregon Revised Statutes › Volume : 08 - Revenue and Taxation › Chapter 314 - Taxes Imposed Upon or Measured by Net Income › Section 314.404 - Penalty for failure to report reportable transaction.

(1) If a taxpayer fails to report to the Department of Revenue a reportable transaction as required by ORS 314.308, there shall be added to the tax liability of the taxpayer for the tax year a penalty as follows:
(a) Individual taxpayers, $3,300.
(b) Corporation taxpayers, $16,700.
(2) If the reportable transaction is a listed transaction, in lieu of the penalty provided in subsection (1) of this section, the penalty shall be as follows:
(a) Individual taxpayers, $33,000.
(b) Corporation taxpayers, $66,000.
(3) This section applies to tax years beginning on or after January 1, 2007. [2007 c.568 §9]
2023 Oregon Revised Statutes › Volume : 08 - Revenue and Taxation › Chapter 314 - Taxes Imposed Upon or Measured by Net Income › Section 314.406 - Penalty for promotion of abusive tax shelter.

(1) A penalty shall be imposed on a person who promotes a tax shelter if:
(a) The person is or would be subject to a penalty for promoting an abusive tax shelter under section 6700 of the Internal Revenue Code; and
(b) The tax shelter satisfies any of the following conditions:
(A) The tax shelter is organized in this state.
(B) The tax shelter is doing business in this state.
(C) The tax shelter derives income from sources in this state.
(D) At least one investor in the tax shelter is an Oregon personal income taxpayer or an Oregon corporate excise or income taxpayer.
(2) The amount of the penalty shall equal 100 percent of the amount of gross income derived by the person in promoting the tax shelter.
(3) A penalty imposed under this section shall be in addition to and not in lieu of any other penalty. [2007 c.568 §12]
2023 Oregon Revised Statutes › Volume : 08 - Revenue and Taxation › Chapter 314 - Taxes Imposed Upon or Measured by Net Income › Section 314.407 - Assessment of taxes owing but not submitted with return; time of assessment; recording of warrant.

For the purposes of this section and ORS 314.417 to 314.423:
(1) In the case of a return submitted to the Department of Revenue with payment of less than the amount of tax computed to be due, the difference between the tax computed to be owing by the taxpayer and the tax submitted with the return is considered as assessed on the due date of the original return (determined without regard to any extension of time granted for the filing of the return) or the date the return is filed, whichever is later.
(2) The term "time of assessment" means:
(a) In the case of an assessment made under ORS 305.265 and 314.410, 30 days after the date the notice of assessment is mailed to the taxpayer;
(b) In the case of an assessment made under ORS 314.440, five days after the date the notice of assessment is mailed to the taxpayer; or
(c) In the case of a tax assessed as described in subsection (1) of this section, the due date of the original return (determined without regard to any extension of time granted for the filing of the return) or the date the return is filed, whichever is later.
(3) Unless a warrant has been recorded in the County Clerk Lien Record in the county in which property is located, no warrant shall be considered as a lien with respect to that property. [1971 c.215 §2; 1977 c.870 §42; 1987 c.586 §39; 1995 c.79 §154; 2017 c.23 §1]
2023 Oregon Revised Statutes › Volume : 08 - Revenue and Taxation › Chapter 314 - Taxes Imposed Upon or Measured by Net Income › Section 314.412 - Issuing of notice of deficiency attributable to involuntary conversion; time limit.

Notwithstanding ORS 314.410, the period for issuing any notice of deficiency attributable to any part of the gain realized upon an involuntary conversion as provided in the federal Internal Revenue Code which applies to the Personal Income Tax Act of 1969 or as provided in the corporate excise tax or corporate income tax laws, shall not expire prior to the expiration of three years from the date the Department of Revenue is notified by the taxpayer of:
(1) The replacement of the converted property which the taxpayer claims results in nonrecognition of any part of such gains; or
(2) The taxpayer’s intention not to replace such property; or
(3) A failure of the taxpayer to replace the property within the period prescribed in the federal Internal Revenue Code which applies to the Personal Income Tax Act of 1969, in the corporation excise tax laws or in the corporation income tax laws, whichever is applicable. [1975 c.705 §2; 1989 c.626 §3]
2023 Oregon Revised Statutes › Volume : 08 - Revenue and Taxation › Chapter 314 - Taxes Imposed Upon or Measured by Net Income › Section 314.417 - Unpaid tax or withholding lien at time of assessment.

If any person neglects or refuses to pay an income tax at the time of assessment, or fails to pay to the Department of Revenue any amount required to be withheld under ORS 316.167 and 316.172, the amount of the unpaid tax including interest and penalty thereon shall be a lien in favor of the State of Oregon upon all property and rights to property, whether real or personal, belonging to the person. The lien shall arise at the time of assessment or the time the amount withheld is to be paid to the department and the lien shall continue until the liability for the taxes, with interest and penalty, is satisfied. [1971 c.215 §3; 1981 c.546 §1]
2023 Oregon Revised Statutes › Volume : 08 - Revenue and Taxation › Chapter 314 - Taxes Imposed Upon or Measured by Net Income › Section 314.419 - Foreclosure of lien.

In addition to any other remedy provided by law the lien created by ORS 314.417 may be foreclosed in the following manner:
(1) The Director of the Department of Revenue shall issue an order directed to the sheriff of the county in which the property or interest in property subject to the lien is located, describing the property subject to the lien, and commanding the sheriff to seize the property specified and sell it to pay the amount shown on the order to be due. In the discretion of the director an order of like terms, force and effect may be issued and directed to any agent authorized to collect income taxes, and in the execution thereof the agent shall have all the powers conferred by law upon sheriffs but is entitled to no fee or compensation in excess of actual expenses paid in the performance of such duty.
(2) If the property seized by the sheriff is personal property the sheriff shall utilize the procedures under ORS 311.644 to effect collection of the amount due.
(3) If the property seized by the sheriff is real property the sheriff shall proceed to sell the real property in the same manner that real property is sold under a writ of execution.
(4) Any property which has been sold under this section may be redeemed from the purchaser by the taxpayer or any junior lienor within 120 days from the date of the sale by paying to the purchaser the full purchase price paid plus an additional 20 percent of the purchase price.
(5) In any proceeding under this section to sell property to foreclose a lien, the taxpayer may claim any exemption to which the taxpayer is entitled under the laws of this state relating to property exempt from execution. [1971 c.215 §4]
2023 Oregon Revised Statutes › Volume : 08 - Revenue and Taxation › Chapter 314 - Taxes Imposed Upon or Measured by Net Income › Section 314.421 - When lien valid.

The lien imposed by ORS 314.417 shall not be valid as against any purchaser, holder of a security interest, mechanic’s lienor or judgment creditor until a warrant is issued and recorded under ORS 314.430. [1971 c.215 §5; 1987 c.586 §40]
2023 Oregon Revised Statutes › Volume : 08 - Revenue and Taxation › Chapter 314 - Taxes Imposed Upon or Measured by Net Income › Section 314.423 - Status of lien.

(1) After a warrant has been recorded under ORS 314.430, the lien imposed by ORS 314.417 shall be subordinate to:
(a) Any interest in real property to the same extent that a judgment recorded in the County Clerk Lien Record under ORS 18.152 at the same time the warrant was recorded would be subordinate to the interest; and
(b) Any interest in personal property to the same extent that a security agreement filed under the Uniform Commercial Code at the same time the warrant was filed would be subordinate to the interest.
(2) After a warrant has been recorded under ORS 314.430, the lien imposed by ORS 314.417 shall not be valid as to a purchaser, security interest holder or lienholder in a sale, security agreement or lien arising out of the following types of property or property transactions unless the purchaser, security interest holder or lienholder had actual knowledge of the lien:
(a) Securities as defined in ORS 78.1020;
(b) Retail purchases in the ordinary course of business;
(c) Casual sales of personal property;
(d) Attorney’s liens;
(e) Insurance contract loans; or
(f) Passbook loans. [1971 c.215 §§6,7; 1987 c.586 §41; 1997 c.325 §36; 2003 c.576 §230]
2023 Oregon Revised Statutes › Volume : 08 - Revenue and Taxation › Chapter 314 - Taxes Imposed Upon or Measured by Net Income › Section 314.425 - Examining books, records or persons.

(1) The Department of Revenue, for the purpose of ascertaining the correctness of any return or for the purpose of making an estimate of the taxable income of any taxpayer, may examine or cause to be examined by an agent or representative designated by it for the purpose, any books, papers, records or memoranda bearing upon the matter required to be included in the return, and may require the attendance of the taxpayer or officer or agent or any other person having knowledge in the premises, and may take testimony and require proof material for the information, with power to administer oaths to such persons. The department shall have authority, by order or subpoena to be served with the same force and effect and in the same manner that a subpoena is served in a civil action in the tax court, to require the production at any time and place it may designate of any books, papers, accounts or other information necessary to the carrying out of any law imposing tax on or measured by net income.
(2) If any person fails to comply with any subpoena or order of the department or to produce or permit the examination or inspection of any books, papers or documents pertinent to any investigation or inquiry under this section, or to testify to any matter regarding which the person may be lawfully interrogated, the department may apply to the tax court for the county in which the person resides for an order to the person to attend and testify, or otherwise comply with the demand or request of the department. The application to the court shall be by ex parte motion upon which the court shall make an order requiring the person against whom it is directed to comply with the request on demand of the department within 10 days after service of the order (or such further time as the court may grant) or to justify the failure within that time. The order shall be served upon the person to whom it is directed in the manner required by this state for service of process, which service shall be required to confer jurisdiction upon the court. Failure to obey any order issued by the court under this section is contempt of court. The remedy provided by this section shall be in addition to other remedies, civil or criminal, existing under the tax laws or other laws of this state. [1957 c.632 §17 (enacted in lieu of 316.625 and 317.425); 1995 c.650 §33]
2023 Oregon Revised Statutes › Volume : 08 - Revenue and Taxation › Chapter 314 - Taxes Imposed Upon or Measured by Net Income › Section 314.430 - Warrant for collection of taxes.

(1) If any tax imposed under ORS chapter 118, 316, 317 or 318 or any portion of the tax is not paid within 30 days after the date that the written notice and demand for payment required under ORS 305.895 is mailed (or within five days after the tax becomes due, in the case of the termination of the tax year by the Department of Revenue under the provisions of ORS 314.440), or any amount payable by a transferee under ORS 311.695 is not paid as required under ORS 311.686, and no provision is made to secure the payment thereof by bond, deposit or otherwise, pursuant to regulations promulgated by the department, the department may issue a warrant for the payment of the amount of the tax or amount payable under ORS 311.695, with the added penalties, interest and any collection charge incurred. A copy of the warrant shall be mailed or delivered to the taxpayer or transferee by the department at the taxpayer’s or transferee’s last-known address.
(2) At any time after issuing a warrant under this section, the department may record the warrant in the County Clerk Lien Record of any county of this state. Recording of the warrant has the effect described in ORS 205.125. After recording a warrant, the department may direct the sheriff for the county in which the warrant is recorded to levy upon and sell the real and personal property of the taxpayer or transferee found within that county, and to levy upon any currency of the taxpayer or transferee found within that county, for the application of the proceeds or currency against the amount reflected in the warrant and the sheriff’s cost of executing the warrant. The sheriff shall proceed on the warrant in the same manner prescribed by law for executions issued against property pursuant to a judgment, and is entitled to the same fees as provided for executions issued against property pursuant to a judgment. The fees of the sheriff shall be added to and collected as a part of the warrant liability.
(3) In the discretion of the department a warrant under this section may be directed to any agent authorized by the department to collect taxes, and in the execution of the warrant the agent has all of the powers conferred by law upon sheriffs, but is entitled to no fee or compensation in excess of actual expenses paid in the performance of such duty.
(4) Until a warrant issued under this section is satisfied in full, the department has the same remedies to enforce the claim for taxes against the taxpayer or for amounts payable by the transferee as if the state had recovered judgment against the taxpayer for the amount of the tax or against the transferee for the amount payable under ORS 311.695. [1957 c.632 §18 (enacted in lieu of 316.630 and 317.430); 1959 c.74 §1; 1959 c.234 §1; 1975 c.593 §17; 1983 c.696 §12; 1985 c.85 §12; 1985 c.761 §15; 1987 c.586 §42; 1989 c.625 §62; 1997 c.99 §52; 2011 c.389 §1; 2011 c.723 §29]
2023 Oregon Revised Statutes › Volume : 08 - Revenue and Taxation › Chapter 314 - Taxes Imposed Upon or Measured by Net Income › Section 314.440 - Tax as debt; termination of taxable period and immediate assessment of tax.

(1) Every tax imposed by any law imposing a tax upon or measured by net income, and all increases, interest and penalties thereon shall become, from the time such liability is incurred, a personal debt, due the State of Oregon, from the person or persons liable therefor.
(2) If the Department of Revenue finds that a taxpayer designs quickly to depart from the state or to remove the property of the taxpayer therefrom, or to do any other act tending to prejudice or to render wholly or partially ineffectual proceedings to collect the tax for any past tax year or the tax year then current unless such proceedings be brought without delay, the department shall declare the current taxable period for such taxpayer immediately terminated and shall cause notice of such finding and declaration to be given the taxpayer. Simultaneously, the department, on the basis of the best information available to it, shall assess a tax for such terminated period and for the preceding tax year (if no return has been filed therefor, whether or not the time otherwise allowed by law for filing such return and paying the tax has expired), and shall assess additional tax for any years open to assessment under the provisions of the applicable law. The department shall give notice to the taxpayer of all taxes so assessed. Such taxes shall thereupon become immediately due and payable as soon as the notice and findings are issued to the taxpayer or mailed to the last-known address of the taxpayer. In any proceeding in court brought to enforce payment of taxes made due and payable by virtue of the provisions of this section the findings of the department, made as provided in this section, whether made after notice to the taxpayer or not, shall be for all purposes presumptive evidence of the taxpayer’s design and the certificate of the department of the mailing or issuing of the notice and findings specified in this section is presumptive evidence that the notice and findings were mailed or issued. [1957 c.632 §20 (enacted in lieu of 316.640, 317.440 and 317.445)]
2023 Oregon Revised Statutes › Volume : 08 - Revenue and Taxation › Chapter 314 - Taxes Imposed Upon or Measured by Net Income › Section 314.450

[Subsections (1) and (2) enacted as 1957 c.632 §22 (enacted in lieu of 316.655 and 317.460); subsection (3) enacted as 1957 c.545 §2; 1959 c.650 §1; 1969 c.520 §40; 1971 c.418 §11; repealed by 1973 c.402 §30]
2023 Oregon Revised Statutes › Volume : 08 - Revenue and Taxation › Chapter 314 - Taxes Imposed Upon or Measured by Net Income › Section 314.466 - Audits, deficiencies, assessments, refunds and appeals governed by ORS chapter 305.

The provisions of ORS chapter 305 as to the audit and examination of reports and returns, determination of deficiencies, assessments, claims for refund, conferences and appeals to the Oregon Tax Court, and the procedures relating thereto, shall apply to the determination of taxes, penalties and interest imposed under this chapter and ORS chapters 315, 316, 317 and 318, except where the context requires otherwise. [1977 c.870 §23 (enacted in lieu of 314.405, 314.455, 314.460 and 314.465); 1995 c.650 §34]
2023 Oregon Revised Statutes › Volume : 08 - Revenue and Taxation › Chapter 314 - Taxes Imposed Upon or Measured by Net Income › Section 314.469 - Treatment of moneys collected under ORS 314.406.

Moneys collected under ORS 314.406 shall be considered net revenue from the tax imposed under ORS chapter 316 for purposes of ORS 316.502. [2007 c.568 §13]
2023 Oregon Revised Statutes › Volume : 08 - Revenue and Taxation › Chapter 314 - Taxes Imposed Upon or Measured by Net Income › Section 314.505 - Estimate of tax liability by corporations; rules.

(1) Every corporation expecting to have a tax liability under either ORS chapter 317 or 318 of $500 or more shall make an estimate of tax liability for the corporation’s tax year and pay the amount of tax determined as provided in ORS 314.515.
(2) The Department of Revenue shall by rule provide for the payment of estimated tax liability by a group of affiliated corporations filing a consolidated return.
(3) As used in ORS 314.505 to 314.525, the term "estimated tax liability" means the tax computed under ORS chapter 317 or 318 less the credits allowed for purposes of ORS chapter 317 or 318. [1973 c.292 §1; 1984 c.1 §16; 1993 c.730 §41; 1997 c.299 §5]
2023 Oregon Revised Statutes › Volume : 08 - Revenue and Taxation › Chapter 314 - Taxes Imposed Upon or Measured by Net Income › Section 314.515 - Installment schedule for payment of estimated tax.

(1) A corporation required under ORS 314.505 to make payments of estimated tax shall make the payments to the Department of Revenue in installments as follows:
(a) One-quarter or more of the estimated tax shall be paid on or before the 15th day of the fourth month of the taxable year.
(b) One-quarter or more of the estimated tax shall be paid on or before the 15th day of the sixth month of the taxable year.
(c) One-quarter or more of the estimated tax shall be paid on or before the 15th day of the ninth month of the taxable year.
(d) The balance of the estimated tax shall be paid on or before the 15th day of the 12th month of the taxable year.
(2) Any payment of estimated tax received by the department for which the corporation has made no designation of the quarterly installment to which the payment is to be applied, shall first be applied to underpayments of estimated tax due for any prior quarter of the taxable year. Any excess amount shall be applied to the installment that next becomes due after the payment was received. [1973 c.292 §2; 1981 c.678 §4; 1985 c.603 §2]
2023 Oregon Revised Statutes › Volume : 08 - Revenue and Taxation › Chapter 314 - Taxes Imposed Upon or Measured by Net Income › Section 314.518 - Estimated tax payments by electronic funds transfer; phase-in; rules.

(1) A corporation required to make a payment of estimated tax under ORS 314.505 to 314.525 shall make the payment by means of electronic funds transfer if:
(a) For payment periods beginning on or after July 1, 2001, and before January 1, 2002, the corporation’s annual total amount of estimated tax liability exceeds $50,000.
(b) For payment periods beginning on or after January 1, 2002, the corporation is required to make federal estimated tax payments electronically.
(2) The Department of Revenue may adopt rules that provide exemptions from the requirement that estimated tax be paid by electronic funds transfer when the taxpayer is disadvantaged by required payment by electronic funds transfer.
(3) The Department of Revenue may accept electronically filed payments voluntarily submitted by a corporation that is not required to pay by means of electronic funds transfer.
(4) As used in this section, "electronic funds transfer" has the meaning given that term in ORS 293.525. [1997 c.299 §4; 1999 c.21 §35; 2001 c.28 §5; 2001 c.114 §30]
2023 Oregon Revised Statutes › Volume : 08 - Revenue and Taxation › Chapter 314 - Taxes Imposed Upon or Measured by Net Income › Section 314.520 - State agency authority over certain electronic funds transfer payments.

ORS 314.505, 314.518 and 316.198 do not alter the authority under ORS 293.525 of a state agency to require by rule that certain payments to the agency be made by electronic funds transfer. [1997 c.299 §6; 2001 c.114 §39; 2005 c.28 §2]
Note:
314.520 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 314.605 - Short title; construction.

(1) ORS 314.605 to 314.675 may be cited as the Uniform Division of Income for Tax Purposes Act.
(2) ORS 314.610 to 314.667 shall be so construed as to effectuate its general purpose to make uniform the law of those states which enact it. [1965 c.152 §§20,21]
2023 Oregon Revised Statutes › Volume : 08 - Revenue and Taxation › Chapter 314 - Taxes Imposed Upon or Measured by Net Income › Section 314.606 - Status of ORS 314.605 to 314.675 when in conflict with Multistate Tax Compact.

In any case in which the provisions of ORS 314.605 to 314.675 are inconsistent with the provisions of ORS 305.653, the provisions of ORS 314.605 to 314.675 shall control. [1993 c.726 §20; 2013 c.407 §3]
2023 Oregon Revised Statutes › Volume : 08 - Revenue and Taxation › Chapter 314 - Taxes Imposed Upon or Measured by Net Income › Section 314.615 - When allocation and apportionment of net income from business activity required.

Any taxpayer having income from business activity which is taxable both within and without this state, other than activity as a financial institution or public utility or the rendering of purely personal services by an individual, shall allocate and apportion the net income of the taxpayer as provided in ORS 314.605 to 314.675. Taxpayers engaged in activities as a financial institution or public utility shall report their income as provided in ORS 314.280 and 314.675. [1965 c.152 §3; 2001 c.793 §6; 2001 c.933 §5; 2009 c.403 §6]
2023 Oregon Revised Statutes › Volume : 08 - Revenue and Taxation › Chapter 314 - Taxes Imposed Upon or Measured by Net Income › Section 314.620 - When taxpayer is considered taxable in another state.

For purposes of allocation and apportionment of income under ORS 314.280 and 314.605 to 314.675, a taxpayer is taxable in another state if:
(1) In that state the taxpayer is subject to a net income tax, a franchise tax measured by net income, a franchise tax for the privilege of doing business, or a corporate stock tax; or
(2) That state has jurisdiction to subject the taxpayer to a net income tax regardless of whether, in fact, the state does or does not. [1965 c.152 §4]
2023 Oregon Revised Statutes › Volume : 08 - Revenue and Taxation › Chapter 314 - Taxes Imposed Upon or Measured by Net Income › Section 314.625 - Certain nonapportionable income to be allocated.

Rents and royalties from real or tangible personal property, capital gains, interest, dividends, patent or copyright royalties, or prizes awarded by the Oregon State Lottery, to the extent that they constitute nonapportionable income, shall be allocated as provided in ORS 314.625 to 314.645. [1965 c.152 §5; 1995 c.79 §155; 1999 c.143 §1; 2017 c.43 §2]
2023 Oregon Revised Statutes › Volume : 08 - Revenue and Taxation › Chapter 314 - Taxes Imposed Upon or Measured by Net Income › Section 314.630 - Allocation to this state of net rents and royalties.

(1) Net rents and royalties from real property located in this state are allocable to this state.
(2) Net rents and royalties from tangible personal property are allocable to this state (a) if and to the extent that the property is utilized in this state, or (b) in their entirety if the taxpayer’s commercial domicile is in this state and the taxpayer is not organized under the laws of or taxable in the state in which the property is utilized.
(3) The extent of utilization of tangible personal property in a state is determined by multiplying the rents and royalties by a fraction, the numerator of which is the number of days of physical location of the property in the state during the rental or royalty period in the taxable year and the denominator of which is the number of days of physical location of the property everywhere during all rental or royalty periods in the taxable year. If the physical location of the property during the rental or royalty period is unknown or unascertainable by the taxpayer, tangible personal property is utilized in the state in which the property was located at the time the rental or royalty payer obtained possession. [1965 c.152 §6]
2023 Oregon Revised Statutes › Volume : 08 - Revenue and Taxation › Chapter 314 - Taxes Imposed Upon or Measured by Net Income › Section 314.635 - Allocation to this state of capital gains and losses.

(1) Capital gains and losses from sales of real property located in this state are allocable to this state.
(2) Capital gains and losses from sales of tangible personal property are allocable to this state if (a) the property had a situs in this state at the time of the sale, or (b) the taxpayer’s commercial domicile is in this state and the taxpayer is not taxable in the state in which the property had a situs.
(3) Except in the case of the sale of a partnership interest, capital gains and losses from sales of intangible personal property are allocable to this state if the taxpayer’s commercial domicile is in this state.
(4) Gain or loss from the sale of a partnership interest is allocable to this state in the ratio of the original cost of partnership tangible property in the state to the original cost of partnership tangible property everywhere, determined at the time of the sale. In the event that more than 50 percent of the value of a partnership’s assets consists of intangibles, gain or loss from the sale of the partnership interest shall be allocated to this state in accordance with the sales factor of the partnership for its first full tax year immediately preceding its tax year during which the partnership interest was sold. [1965 c.152 §7; 1989 c.625 §64]
2023 Oregon Revised Statutes › Volume : 08 - Revenue and Taxation › Chapter 314 - Taxes Imposed Upon or Measured by Net Income › Section 314.642 - Allocation to this state of lottery prizes.

(1) Prizes awarded by the Oregon State Lottery are allocable to this state.
(2) A prize awarded by a multistate lottery association of which the Oregon State Lottery is a member is allocable to this state if the ticket upon which the prize is awarded was sold in this state. [1999 c.143 §2]
2023 Oregon Revised Statutes › Volume : 08 - Revenue and Taxation › Chapter 314 - Taxes Imposed Upon or Measured by Net Income › Section 314.645 - Allocation to this state of patent and copyright royalties.

(1) Patent and copyright royalties are allocable to this state (a) if and to the extent that the patent or copyright is utilized by the payer in this state, or (b) if and to the extent that the patent or copyright is utilized by the payer in a state in which the taxpayer is not taxable and the taxpayer’s commercial domicile is in this state.
(2) A patent is utilized in a state to the extent that it is employed in production, fabrication, manufacturing, or other processing in the state or to the extent that a patented product is produced in the state. If the basis of receipts from patent royalties does not permit allocation to states or if the accounting procedures do not reflect states of utilization, the patent is utilized in the state in which the taxpayer’s commercial domicile is located.
(3) A copyright is utilized in a state to the extent that printing or other publication originates in the state. If the basis of receipts from copyright royalties does not permit allocation to states or if the accounting procedures do not reflect states of utilization, the copyright is utilized in the state in which the taxpayer’s commercial domicile is located. [1965 c.152 §9]
2023 Oregon Revised Statutes › Volume : 08 - Revenue and Taxation › Chapter 314 - Taxes Imposed Upon or Measured by Net Income › Section 314.647 - Policy.

The Legislative Assembly finds and declares it to be the policy of this state to carry out a comprehensive review of income apportionment whenever federal legislation changes the nexus standard for state imposition of taxes based on business activity within state borders. [2001 c.793 §12; 2017 c.43 §3]
Note:
314.647 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 314.650 - Apportionment of income.

All apportionable income shall be apportioned to this state by multiplying the income by the sales factor. [1965 c.152 §10; 1989 c.626 §5; 1989 c.1088 §1; 1995 c.79 §156; 2001 c.793 §1; 2003 c.739 §§1,5; 2005 c.832 §§48,49; 2009 c.842 §1; 2017 c.43 §4]
2023 Oregon Revised Statutes › Volume : 08 - Revenue and Taxation › Chapter 314 - Taxes Imposed Upon or Measured by Net Income › Section 314.655 - Determination of property factor.

(1) For purposes of ORS 317.391, the property factor is a fraction, the numerator of which is the average value of the taxpayer’s real and tangible personal property owned or rented and used in this state during the tax period and the denominator of which is the average value of all the taxpayer’s real and tangible personal property owned or rented and used during the tax period.
(2) Property owned by the taxpayer is valued at its original cost. Property rented by the taxpayer is valued at eight times the net annual rental rate. Net annual rental rate is the annual rental rate paid by the taxpayer less any annual rental rate received by the taxpayer from subrentals.
(3) The average value of property shall be determined by averaging the values at the beginning and ending of the tax period but the Department of Revenue may require the averaging of monthly values during the tax period if reasonably required to reflect properly the average value of the taxpayer’s property. [1965 c.152 §§11,12,13; 2001 c.793 §3; 2001 c.933 §2; 2009 c.842 §2]
2023 Oregon Revised Statutes › Volume : 08 - Revenue and Taxation › Chapter 314 - Taxes Imposed Upon or Measured by Net Income › Section 314.660 - Determination of payroll factor.

(1) For purposes of ORS 317.391, the payroll factor is a fraction, the numerator of which is the total amount paid in this state during the tax period by the taxpayer for compensation, and the denominator of which is the total compensation paid everywhere during the tax period.
(2) Compensation is paid in this state if:
(a) The individual’s service is performed entirely within the state;
(b) The individual’s service is performed both within and without the state, but the service performed without the state is incidental to the individual’s service within the state; or
(c) Some of the service is performed in the state and (A) the base of operations or, if there is no base of operations, the place from which the service is directed or controlled is in the state, or (B) the base of operations or the place from which the service is directed or controlled is not in any state in which some part of the service is performed, but the individual’s residence is in this state. [1965 c.152 §§14,15; 2001 c.793 §4; 2001 c.933 §3; 2009 c.842 §3]
2023 Oregon Revised Statutes › Volume : 08 - Revenue and Taxation › Chapter 314 - Taxes Imposed Upon or Measured by Net Income › Section 314.666 - Market for sales in this state.

(1) A taxpayer’s market for sales is in this state:
(a) In the case of the sale, rental, lease or license of real property, if and to the extent the property is located in this state.
(b) In the case of the rental, lease or license of tangible personal property, if and to the extent the property is located in this state.
(c) In the case of the sale of a service, if and to the extent the service is delivered to a location in this state.
(2) A taxpayer’s market for sales is in this state in the case of intangible property that is rented, leased or licensed, if and to the extent the property is used in this state. Intangible property utilized in marketing a good or service to a consumer is deemed to be used in this state if that good or service is purchased by a consumer that is in this state.
(3) A taxpayer’s market for sales is in this state in the case of intangible property that is sold, if and to the extent the property is used in this state. Under this subsection:
(a) A contract right, government license or similar intangible property that authorizes the holder to conduct a business activity in a specific geographic area is deemed to be used in this state if the geographic area includes all or part of this state.
(b) Intangible property sales that are contingent on the productivity, use or disposition of the intangible property shall be treated as the rental, lease or licensing of such intangible property under subsection (2) of this section.
(c) All other intangible property sales shall be excluded from the sales factor.
(4) If the state or states of assignment under subsections (1) to (3) of this section cannot be determined, the state or states of assignment shall be reasonably approximated. [2017 c.549 §2]
Note:
314.666 was added to and made a part of 314.605 to 314.675 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 314.667 - Additional methods to determine extent of business activity in this state; rules.

(1) If the application of the allocation and apportionment provisions of ORS 314.605 to 314.675 do not fairly represent the extent of the taxpayer’s business activity in this state, the taxpayer may petition for and the Department of Revenue may permit, or the department may require, in respect to all or any part of the taxpayer’s business activity:
(a) Separate accounting;
(b) The exclusion of any one or more of the factors;
(c) The inclusion of one or more additional factors which will fairly represent the taxpayer’s business activity in this state; or
(d) The employment of any other method to effectuate an equitable allocation and apportionment of the taxpayer’s income.
(2) The department may adopt rules to promote uniformity and consistency with other states in the application of the Uniform Division of Income for Tax Purposes Act. [Formerly 314.670]
2023 Oregon Revised Statutes › Volume : 08 - Revenue and Taxation › Chapter 314 - Taxes Imposed Upon or Measured by Net Income › Section 314.668 - Definitions.

As used in ORS 314.668 to 314.673:
(1) "Actual cost" means the costs of labor, materials, supplies, equipment rental, real or personal property acquisition, permits, engineering, financing, required fees, insurance, administration, accounting, maintenance, repair or replacement and debt service, and all other direct or indirect costs incurred by a person in order to undertake a capital project, or of more than one capital project undertaken by the same taxpayer as part of the same qualifying investment.
(2) "Capital project" means a project within this state for the construction, modification, replacement, repair, remodeling or renovation of a structure or structures, addition to a structure or structures, or other capital improvement, that qualifies as a qualifying investment, including but not limited to:
(a) Acquisition of a legal interest or right in land or property in conjunction with the capital improvement, including but not limited to the purchase, lease or occupancy of real property, including the buildings, structures, infrastructure and leasehold improvements on the land or property;
(b) Acquisition of existing structures, or legal interests or rights in structures, in conjunction with the capital improvement;
(c) Acquisition and installation of machinery or equipment, furnishings, fixtures or other personal property or materials, in conjunction with the capital improvement; or
(d) Services and activities performed in relation to the capital improvement, including planning, design, authorizing, issuing, carrying or repaying interim or permanent financing, research, study of land use and environmental impacts, acquiring permits or licenses, or other services connected with the capital improvement, and costs associated with the performance of these services and activities.
(3) "Debt service" includes debt service payments or payments into reserve accounts for debt service and payment of amounts necessary to meet debt service coverage requirements.
(4) "Qualifying investment" means expenditures made by the taxpayer relating to a capital project:
(a) The actual cost of which exceeds $150 million within a five-year period measured from the commencement of the term of the qualifying investment contract; and
(b) That result in the taxpayer employing at least 500 more full-time equivalent employees in this state than the taxpayer employed in this state when the qualifying investment was commenced.
(5) "Qualifying investment contract" means a contract between the State of Oregon and a taxpayer that meets the requirements of ORS 314.671.
(6) "Single sales factor method" means the method of income apportionment required under ORS 314.650 and 314.665 and the rules adopted thereunder, as in effect on the date a qualifying investment contract is executed.
(7) "Term of the qualifying investment contract" means the duration of the parties’ obligations under a qualifying investment contract. [2012 s.s. c.1 §3; 2017 c.43 §6]
2023 Oregon Revised Statutes › Volume : 08 - Revenue and Taxation › Chapter 314 - Taxes Imposed Upon or Measured by Net Income › Section 314.670

[1965 c.152 §19; 1984 c.1 §17; 1995 c.79 §157; 1999 c.143 §9; renumbered 314.667 in 2013]