reglab/statecodes huggingface dataset:
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 314 - INCOME TAXATION GENERALLY GENERAL PROVISIONS › Section 150-314-0392 - Property Factor; Property Used for the Production of Apportionable Income

Current through Register Vol. 63, No. 7, July 1, 2024
Property is included in the property factor if it is actually
				used or is available for or capable of being used during the tax period in the
				regular course of the trade or business of the taxpayer. Property held as
				reserves or standby facilities or property held as a reserve source of
				materials is included in the factor. For example, a plant temporarily idle or
				raw material reserves not currently being processed are includable in the
				factor. Property or equipment under construction during the tax period (except
				inventoriable goods in process) is excluded from the factor until such property
				is actually used in the regular course of the trade or business of the
				taxpayer. If the property is partially used in the regular course of the trade
				or business of the taxpayer while under construction, the value of the property
				to the extent used is included in the property factor. Property used in the
				regular course of the trade or business of the taxpayer remains in the property
				factor until its permanent withdrawal is established by an identifiable event
				such as its conversion to the production of nonapportionable income, its sale,
				or the lapse of an extended period of time (normally, five years) during which
				the property is held for sale.
Example
			 1
:
Taxpayer closed its manufacturing plant in State X
			 and held such property for sale. The property remained vacant until its sale
			 one year later. The value of the manufacturing plant is included in the
			 property factor until the plant is sold.
Example
			 2 Same as above except that the property was rented until the
			 plant was sold. The plant is included in the property factor until the plant is
			 sold.
Example 3 Taxpayer closed its
			 manufacturing plant and leased the building under a five-year lease. The plant
			 is included in the property factor until the commencement of the
			 lease.
Example 4 The taxpayer
			 operates a chain of retail grocery stores. Taxpayer closed Store A, which was
			 then remodeled into three small retail stores such as a dress shop, dry
			 cleaning, and barber shop, which were leased to unrelated parties. The property
			 is removed from the property factor on the date the remodeling of Store A
			 commenced.
Statutory/Other Authority: ORS
				  305.100
Statutes/Other Implemented: ORS
				  314.655
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 314 - INCOME TAXATION GENERALLY GENERAL PROVISIONS › Section 150-314-0394 - Property Factor; Consistency in Reporting

Current through Register Vol. 63, No. 7, July 1, 2024
In filing returns with this state if the taxpayer departs from
				or modifies the manner of valuing property, or of excluding or including
				property in the property factor, used in returns for prior years, the taxpayer
				shall disclose in the return for the current year the nature and extent of the
				modification. If the returns or reports filed by the taxpayer with all states
				to which the taxpayer reports under Article IV of the Multistate Tax Compact or
				the Uniform Division of Income for Tax Purposes Act are not uniform in the
				valuation of property and in the exclusion or inclusion of property in the
				property factor, the taxpayer shall disclose in its return to this state the
				nature and extent of the variance.
Stat. Auth.: ORS
				  305.100
Stats. Implemented:
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 314 - INCOME TAXATION GENERALLY GENERAL PROVISIONS › Section 150-314-0396 - Property Factor; Numerator

Current through Register Vol. 63, No. 7, July 1, 2024
The numerator of the property factor shall include the average
				value of the real and tangible personal property owned or rented by the
				taxpayer and used in this state during the tax period in the regular course of
				the trade or business of the taxpayer. Property in transit between locations of
				the taxpayer to which it belongs shall be considered to be at the destination
				for purposes of the property factor. Property in transit between a buyer and
				seller which is included by a taxpayer in the denominator of its property
				factor in accordance with its regular accounting practices shall be included in
				the numerator according to the state of destination. The value of mobile or
				movable property such as construction equipment, trucks or leased electronic
				equipment which are located within and without this state during the tax period
				shall be determined for purposes of the numerator of the factor on the basis of
				total time within the state during the tax period. An automobile assigned to a
				traveling employee shall be included in the numerator of the factor of the
				state to which the employee's compensation is assigned under the payroll factor
				or in the numerator of the state in which the automobile is
				licensed.
Stat. Auth.: ORS
				  305.100
Stats. Implemented:
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 314 - INCOME TAXATION GENERALLY GENERAL PROVISIONS › Section 150-314-0398 - Property Factor; Valuation of Owned Property

Current through Register Vol. 63, No. 7, July 1, 2024
(1) Property owned by the taxpayer shall be
			 valued at its original cost. As a general rule "original cost" is deemed to be
			 the basis of the property for federal income tax purposes (prior to any federal
			 adjustments) at the time of acquisition by the taxpayer and adjusted by
			 subsequent capital additions or improvements thereto and partial disposition
			 thereof, by reason of sale, exchange, abandonment, etc.
Example (i): The taxpayer acquired a factory
			 building in this state at a cost of $500,000 and 18 months later expended
			 $100,000 for major remodeling of the building. Taxpayer files its return for
			 the current taxable year on the calendar year basis. Depreciation deduction in
			 the amount of $22,000 was claimed on the building for its return for the
			 current taxable year. The value of the building includable in the numerator and
			 denominator of the property factor is $600,000 as the depreciation deduction is
			 not taken into account in determining the value of the building for purposes of
			 the factor.
Example (ii): During
			 the current taxable year, X Corporation merges into Y Corporation in a tax-free
			 reorganization under the Internal Revenue Code. At the time of the merger, X
			 Corporation owns a factory which X built five years earlier at a cost of
			 $1,000,000. X has been depreciating the factory at the rate of two percent per
			 year, and its basis in X's hands at the time of the merger is $900,000. Since
			 the property is acquired by Y in a transaction in which, under the Internal
			 Revenue Code, its basis in Y's hands is the same as its basis in X's, Y
			 includes the property in Y's property factor at X's original cost, without
			 adjustment for depreciation, i.e., $1,000,000.
Example (iii): Corporation Y acquires the
			 assets of Corporation X in a liquidation by which Y is entitled to use its
			 stock cost as the basis of the X assets under Section 338 of the 1986 Internal
			 Revenue Code (i.e. stock possessing 80 percent of voting power and stock value
			 is purchased within a 12 month period.) Under these circumstances, Y's cost of
			 the assets is the purchase price of the X stock, prorated over the X
			 assets.
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 314 - INCOME TAXATION GENERALLY GENERAL PROVISIONS › Section 150-314-0400 - Property Factor; Valuation of Rented Property

Current through Register Vol. 63, No. 7, July 1, 2024
(1) This rule adopts a model regulation
			 recommended by the Multistate Tax Commission to promote uniform treatment of
			 this item by the states.
(2)
			 Property rented by the taxpayer is valued at eight times its net annual rental
			 rate. The net annual rental rate for any item of rented property is the annual
			 rental rate paid by the taxpayer for such property, less the aggregate annual
			 subrental rates paid by subtenants of the taxpayer.
(3) Subrents are not deducted when the
			 subrents constitute apportionable income because the property that produces the
			 subrents is used in the regular course of a trade or business of the taxpayer
			 when it is producing such income. Accordingly there is no reduction in its
			 value.
Example 1
:
The taxpayer
			 receives subrents from a bakery concession in a food market operated by the
			 taxpayer. Since the subrents are apportionable income they are not deducted
			 from rent paid by the taxpayer for the food market.
Example 2: The taxpayer rents a five-story
			 office building primarily for use in its multistate business, uses three floors
			 for its offices, and subleases two floors to various other businesses on a
			 short-term basis because it anticipates it will need those two floors for
			 future expansion of its multistate business. The rental of all five floors is
			 integral to the operation of the taxpayer's trade or business. Since the
			 subrents are apportionable income, they are not deducted from the rent paid by
			 the taxpayer.
Example 3: The
			 taxpayer rents a 20-story office building and uses the lower two stories for
			 its general corporation headquarters. The remaining 18 floors are subleased to
			 others. The rental of the 18 floors is not integral to but rather is separate
			 from the operation of the taxpayer's trade or business. Since the subrents are
			 nonapportioable income they are to be deducted from the rent paid by the
			 taxpayer.
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 314 - INCOME TAXATION GENERALLY GENERAL PROVISIONS › Section 150-314-0402 - Property Factor; Timber

Current through Register Vol. 63, No. 7, July 1, 2024
The property factor includes all standing timber which the
				taxpayer owns and which is situated on land owned by the taxpayer, and includes
				timber which has been cut and has become a part of inventory. The factor does
				not include any standing timber to which the taxpayer has acquired cutting
				rights under a contract, regardless of when title passes under the terms of the
				contract.
Stat. Auth.: ORS
				  305.100
Stats. Implemented:
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 314 - INCOME TAXATION GENERALLY GENERAL PROVISIONS › Section 150-314-0404 - Property Factor; Intangible Drilling Costs

Current through Register Vol. 63, No. 7, July 1, 2024
Intangible drilling costs incurred by oil and gas producing
				companies in connection with producing oil and gas properties located within a
				taxing jurisdiction are included in the property factor. An election to expense
				intangible drilling costs for federal tax purposes has no effect on their
				inclusion in the property factor.
Stat. Auth.: ORS
				  305.100
Stats. Implemented: ORS
				  314.655
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 314 - INCOME TAXATION GENERALLY GENERAL PROVISIONS › Section 150-314-0406 - Property Factor; Averaging Property Value

Current through Register Vol. 63, No. 7, July 1, 2024
(1) As a general rule the average value of
			 property owned by the taxpayer shall be determined by averaging the values at
			 the beginning and ending of the tax period. However, the Department may require
			 or allow averaging by monthly values if such method of averaging is required to
			 properly reflect the average value of the taxpayer's property for the tax
			 period. Averaging by monthly values will generally be applied if substantial
			 fluctuations in the values of the property exist during the tax period or where
			 property is acquired after the beginning of the tax period or disposed of
			 before the end of the tax period.
Example:
The monthly value of the taxpayer's
				property was as follows: [Example not included. See ED. NOTE.]
(2) Averaging with respect to rented property
			 is achieved automatically by the method of determining the net annual rental
			 rate of such property as set forth in OAR 150-314-0400.
Tables referenced are not included in rule text.
Click here for PDF copy of
				  table(s)
.
Stat. Auth.: ORS
				  305.100
Stats. Implemented: ORS
				  314.655
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 314 - INCOME TAXATION GENERALLY GENERAL PROVISIONS › Section 150-314-0415 - Payroll Factor; In General

Current through Register Vol. 63, No. 7, July 1, 2024
(1)
			 The payroll factor of the apportionment formula for each trade or business of
			 the taxpayer includes the total amount of compensation paid by the taxpayer in
			 the regular course of its trade or business during the tax period.
(2) The total amount "paid" to employees is
			 determined upon the basis of the taxpayer's accounting method. If the taxpayer
			 has adopted the accrual method of accounting, all compensation properly accrued
			 is deemed to have been paid. Notwithstanding the taxpayer's method of
			 accounting, at the election of the taxpayer, compensation paid to employees may
			 be included in the payroll factor by use of the cash method if the taxpayer is
			 required to report such compensation under such method for unemployment
			 compensation purposes.
(3) The
			 compensation of any employee on account of activities which are connected with
			 the production of nonapportionable income is excluded from the factor.
Example 1
:
The taxpayer uses
			 some of its employees in the construction of a storage building which, upon
			 completion, is used in the regular course of taxpayer's trade or business. The
			 wages paid to those employees are treated as a capital expenditure by the
			 taxpayer. The amount of such wages is included in the payroll factor.
Example 2
:
The taxpayer owns
			 various securities which it holds as an investment separate and apart from its
			 trade or business. The management of the taxpayer's investment portfolio is the
			 only duty of Mr. X, an employee. The salary paid to Mr. X is excluded from the
			 payroll factor.
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 314 - INCOME TAXATION GENERALLY GENERAL PROVISIONS › Section 150-314-0417 - Payroll Factor; Numerator

Current through Register Vol. 63, No. 7, July 1, 2024
(1)
			 The numerator of the payroll factor is the total amount of compensation paid in
			 this state during the tax period by the taxpayer. The tests in subsection (2)
			 of ORS 314.660 to be applied in
			 determining whether compensation is paid in this state are derived from the
			 Model Unemployment Compensation Act. Accordingly, if compensation paid to
			 employees is included in the payroll factor by use of the cash method of
			 accounting or if the taxpayer is required to report such compensation under
			 such method for unemployment compensation purposes, it shall be presumed that
			 the total wages reported by the taxpayer to this state for unemployment
			 compensation purposes constitutes compensation paid in this state except for
			 compensation excluded under OAR 150-314.660(1) above. The presumption may be
			 overcome by satisfactory evidence that an employee's compensation is not
			 properly reportable to this state for unemployment compensation
			 purposes.
(2) Guaranteed payments
			 which represent compensation for services are included in the numerator of the
			 factor if the compensation would have been subject to Oregon unemployment
			 insurance tax if paid to an employee.
(3) Compensation is paid in this state if any
			 one of the following tests, applied consecutively, are met:
(a) The employee's service is performed
			 entirely within the state.
(b) The
			 employee's service is performed both within and without the state, but the
			 service performed without the state is incidental to the employee's service
			 within the state. The word "incidental" means any service which is temporary or
			 transitory in nature, or which is rendered in connection with an isolated
			 transaction.
(c) If the employee's
			 services are performed both within and without this state, the employee's
			 compensation will be attributed to this state:
(A) If the employee's base of operations is
			 in this state; or
(B) If there is
			 no base of operations in any state in which some part of the service is
			 performed, but the place from which the service is directed or controlled is in
			 this state; or
(C) If the base of
			 operations or the place from which the service is directed or controlled is not
			 in any state in which some part of the service is performed but the employee's
			 residence is in this state.
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 314 - INCOME TAXATION GENERALLY GENERAL PROVISIONS › Section 150-314-0427 - Sales Factor; Numerator

Current through Register Vol. 63, No. 7, July 1, 2024
(1)
			 For purposes of this rule:
(a) "No activity"
			 means that the foreign corporation has no property or employees carrying on the
			 business of the corporation in Oregon. Telephone and catalog solicitation and
			 delivery by common carrier of goods sold do not constitute activity in the
			 state.
(b) "Due process nexus"
			 arises, for purposes of this rule, when a corporation engages in activities in
			 this state that are protected from state taxation by Public Law 86-272. The
			 protection provided by Public Law 86-272 applies to taxpayers whose only Oregon
			 activity is the solicitation of sales of tangible personal property.
(c) "Jurisdiction to tax" is acquired by
			 Oregon, for purposes of this rule, when a corporation engages in activities in
			 this state that are not protected from state taxation by Public Law 86-272,
			 e.g., maintaining an office or warehouse in Oregon, salespersons who accept
			 orders or payment, etc.
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 314 - INCOME TAXATION GENERALLY GENERAL PROVISIONS › Section 150-314-0429 - Sales Factor; Sales of Tangible Personal Property in this State

Current through Register Vol. 63, No. 7, July 1, 2024
The rule adopts provisions of a model regulation recommended by
				the Multistate Tax Commission to promote uniform treatment of this item by the
				states.
(1) For purposes of ORS
			 314.665 and the rules
			 thereunder, "tangible personal property" means personal property that can be
			 seen, weighed, measured, felt, or touched, or that is in any other manner
			 perceptible to the senses. "Tangible personal property" includes electricity,
			 water, gas, steam, and prewritten computer software.
(2) For purposes of apportioning income under
			 ORS 314.665 and this rule, gross
			 receipts from the sales of tangible personal property (except sales to the
			 United States Government; see OAR 150-314.665(2)-(B)) are in this state:
(a) If the property is delivered or shipped
			 to a purchaser within this state (Oregon) regardless of the f.o.b. point or
			 other conditions of sale; whether transported by seller, purchaser, or common
			 carrier; or
(b) If the property is
			 shipped from an office, store, warehouse, factory, or other place of storage in
			 this state and the taxpayer is not taxable in the state of the purchaser.
Example 1
:
A seller with a
			 place of business in State A is a distributor of merchandise to retail outlets
			 in multiple states. A purchaser with retail outlets in several states,
			 including Oregon, makes arrangements to hire a common carrier to pick up
			 merchandise, f.o.b. plant, at the seller's place of business and have it
			 delivered to the purchaser's outlet in Oregon. The seller, who is subject to
			 Oregon excise tax, must treat this as a sale of property delivered or shipped
			 to a purchaser in Oregon.
Example 2
:
A seller with a place of business in Oregon is a distributor of
			 merchandise to retail outlets in multiple states. A purchaser with retail
			 outlets in several states, including State A, sends its own truck to pick up
			 the merchandise at the seller's place of business and have it transported to
			 the purchaser's outlet in State A. The seller is taxable in State A. The seller
			 must treat this as a sale of property delivered or shipped to a purchaser in
			 State A.
(c)
			 Notwithstanding subsection (2)(b) of this rule, for tax years beginning on or
			 after January 1, 2006, the sale of goods from a public warehouse is not
			 considered to take place in Oregon if:
(A)
			 The taxpayer's only activity in Oregon is the storage of the goods in a public
			 warehouse prior to shipment; or
(B) The taxpayer's only activities in Oregon
			 are the storage of the goods in the public warehouse prior to shipment and the
			 presence of employees within this state solely for purposes of soliciting sales
			 of the taxpayer's products.
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 314 - INCOME TAXATION GENERALLY GENERAL PROVISIONS › Section 150-314-0431 - Sales Factor; Sales of Tangible Personal Property to United States Government in this State

Current through Register Vol. 63, No. 7, July 1, 2024
(1) Gross
			 receipts from the sales of tangible personal property to the United States
			 Government are in this state if the property is shipped from an office, store,
			 warehouse, factory, or other place of storage in this state, except as
			 prohibited in paragraph (2) of this rule. For the purposes of this rule, only
			 sales for which the United States Government makes direct payment to the seller
			 pursuant to the terms of its contract constitute sales to the United States
			 Government. Thus, as a general rule, sales by a subcontractor to the prime
			 contractor, the party to the contract with the United States Government, do not
			 constitute sales to the United States Government.
Example
			 1
:
A taxpayer contracts with General Services
			 Administration to deliver X number of trucks which were paid for by the United
			 States Government. The sale is a sale to the United States
			 Government.
Example 2
:
The taxpayer as a subcontractor to a prime contractor with the National
			 Aeronautics and Space Administration contracts to build a component of a rocket
			 for $1,000,000. A sale by the subcontractor to the prime contractor is not a
			 sale to the United States Government.
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 314 - INCOME TAXATION GENERALLY GENERAL PROVISIONS › Section 150-314-0437 - Gross Receipts Related to Deferred Gain or Loss

Current through Register Vol. 63, No. 7, July 1, 2024
(1)
In general.
In all cases
			 where gain or loss is realized for accounting purposes in the year of the
			 associated transaction, but not fully recognized for tax purposes in that year,
			 the total gross receipts from the transaction must be included in the sales
			 factor for the year of the transaction if the associated gain or loss is
			 considered apportionable income or loss under ORS
			 314.610, except where:
(a) The gross receipts are excluded from
			 "sales" under ORS 314.665(6)(a) and
			 (6)(c); or
(b) The net gain rather than gross receipts
			 is included in the sales factor under ORS
			 314.665(6)(b).
			 Also see OAR 150-314-0355 regarding the apportionment of installment sale
			 income and OAR 150-314-0385 regarding apportionment of deferred gain subject to
			 tax in a year after the year of disposition.
Example
			 1
:
Big Equipment Sales Corporation (BESC) has
			 locations in Oregon and Idaho. BESC sold a large piece of construction
			 equipment in 2017 on an installment contract. The total sales price was
			 $1,000,000. BESC must include the full sales price of $1,000,000 in the sales
			 factor for tax year 2017.
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 314 - INCOME TAXATION GENERALLY GENERAL PROVISIONS › Section 150-314-0445

Current through Register Vol. 63, No. 7, July 1, 2024
Stat. Auth.: ORS
				  305.100,
				  305.653, Article I, section 2,
				  314.605 - 314.667
Stats. Implemented: ORS
				  315.164
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 314 - INCOME TAXATION GENERALLY GENERAL PROVISIONS › Section 150-314-0455 - Modified Factors for Publishing

Current through Register Vol. 63, No. 7, July 1, 2024
(1) The following special rules are
			 established with respect to the apportionment of income derived from the
			 publishing, sale, licensing, or other distribution of books, newspapers,
			 magazines, periodicals, trade journals, or other printed material. The rule
			 adopts a model regulation recommended by the Multistate Tax Commission to
			 promote uniform treatment of these items by the states.
(2) In General. Except as specifically
			 modified by this rule, when a person in the business of publishing, selling,
			 licensing, or distributing newspapers, magazines, periodicals, trade journals,
			 or other printed material has income from sources both within and without this
			 state, the amount of apportionable income from sources within this state from
			 such business activity will be determined pursuant to ORS
			 314.650 through
			 314.665 and the rules
			 thereunder.
(3) Definitions. The
			 following definitions are applicable to the terms contained in this rule.
(a) "Outer-jurisdictional property" means
			 certain types of tangible personal property, such as orbiting satellites,
			 undersea transmission cables and the like, that are owned or rented by the
			 taxpayer and used in the business of publishing, licensing, selling, or
			 otherwise distributing printed material, but that are not physically located in
			 any particular state.
(b) "Print or
			 printed material" includes, without limitation, the physical embodiment or
			 printed version of any thought or expression including, without limitation, a
			 play, story, article, column, or other literary, commercial, educational,
			 artistic, or other written or printed work. The determination of whether an
			 item is or consists of print or printed material will be made without regard to
			 its content. Printed material may take the form of a book, newspaper, magazine,
			 periodical, trade journal, or any other form of printed matter and may be
			 contained on any medium or property.
(c) "Purchaser" and "subscriber" mean the
			 individual, residence, business, or other outlet that is the ultimate or final
			 recipient of the print or printed material. Neither of such terms will mean or
			 include a wholesaler or other distributor of print or printed
			 material.
(d) "Terrestrial
			 facility" will include any telephone line, cable, fiber optic, microwave, earth
			 station, satellite dish, antennae, or other relay system or device that is used
			 to receive, transmit, relay, or carry any data, voice, image or other
			 information that is transmitted from or by any outer-jurisdictional property to
			 the ultimate recipient thereof.
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 314 - INCOME TAXATION GENERALLY GENERAL PROVISIONS › Section 150-314-0460 - Apportionment of Net Loss

Current through Register Vol. 63, No. 7, July 1, 2024
(1) When a
			 corporation or consolidated group of corporations is taxable both within and
			 without this state, their Oregon net loss must be computed using the
			 apportionment provisions in ORS
			 314.280, or
			 314.610 through
			 314.667.
(2) If a corporation filed a combined return
			 (prior to 1986) or a separate (not consolidated) return in the year of the
			 loss, and files a consolidated return in the year to which the loss is carried,
			 the net loss deduction may be limited. The allowable net loss deduction cannot
			 exceed the Oregon net income attributed to the corporation with the net loss
			 carryover. For the purpose of determining the net loss deduction allowable, the
			 consolidated Oregon net income must be attributed to the corporation based on
			 its share of the Oregon apportionment percentage. The following example
			 demonstrates the application of this section: [Example not included. See ED
			 NOTE].
(3) If a corporation was
			 included in a consolidated return in the year of the net loss and now files a
			 separate return, or is included in a different consolidated return in the year
			 to which the net loss is carried, the consolidated Oregon net loss must be
			 apportioned to the corporations included in the net loss return for purposes of
			 determining the allowable net loss carryover. The consolidated Oregon net loss
			 must be apportioned to the corporations with taxable activities in Oregon,
			 based upon their Oregon apportionment percentages. The net losses computed can
			 be carried forward and deducted in subsequent years' returns (subject to the
			 carryover limitations specified in OAR 150-317-0460. The following example
			 demonstrates the application of this section: [Example not included. See ED
			 NOTE].
(4) Net losses that are
			 attributed to corporations which continue to be included in the same
			 consolidated Oregon return can be deducted fully against the Oregon
			 consolidated net income. [Example not included. See ED NOTE].
(5) Paragraphs (2), (3) and (4) of this rule
			 apply to Oregon net losses carried forward and deducted in tax years beginning
			 on or after January 1, 1986.
(6)
			 The net loss carryover to a consolidated return when the loss is from a
			 separate return of a prior year in which the taxpayer should have filed a
			 combined or consolidated return must be recalculated as if the taxpayer had
			 filed a combined or consolidated return.
Example:
Corporation A reported a loss in 1999 on
				a separate return. Corporation A should have filed a consolidated return with
				Corporation B in 1999 A 1999 consolidated return would have resulted in net
				income. The net loss carryover for Corporation A from 1999 is
				zero.
Tables referenced are not included in rule text.
Click here for PDF copy of
				  table(s)
.
Stat. Auth.: ORS
				  305.100
Stats. Implemented: ORS
				  314.675
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 314 - INCOME TAXATION GENERALLY GENERAL PROVISIONS › Section 150-314-0466 - Definition of Programming and Subscription Services

Current through Register Vol. 63, No. 7, July 1, 2024
(1) For purposes of Oregon Laws 2021, Chapter
			 74, Section 2(1)(a), broadcasting sales result from the transmission of
			 programming in the course of "broadcasting" as defined by Oregon Laws 2021,
			 Chapter 74, Section 2(1)(a).
(2)
			 Programming, as used by Oregon Laws 2021, Chapter 74, Section 2(1)(a), means
			 one (1) or more performance, event, or production, or segments of performances,
			 events, or productions, intended to be distributed for visual and/or auditory
			 perception, including, but not limited to, news, entertainment, sporting
			 events, plays, stories, or other literary, commercial, educational, or artistic
			 works.
EXAMPLE #1: National network XYZ transmits a televised version
				of the play
Julius Caesar
on March 15 every year. XYZ
				transmits over the air, through cable and on the internet. Julius Caesar is a
				performance that is intended to be distributed for visual and auditory
				perception by an audience. Therefore, Julius Caesar is programming.
EXAMPLE #2: Game developer XYZ releases the game "23" as a tie
				in with the annual release of Julius Caesar. "23" is a multiplayer game that is
				streamed online with audio and visual components. However, "23" is not a
				performance, event or production for the purposes of this rule because "23" is
				not intended to be distributed for viewing or listening by an audience because
				the customers of "23" participate in the game. Accordingly, receipts from the
				streaming of "23" are not sourced using the broadcasting sales
				provisions.
EXAMPLE #3: For profit Education provider XYZ streams a variety
				of college lectures over the internet. These lectures meet the definition of
				programming because the lectures are educational productions intended to be
				distributed for viewing and listening by an audience.
(3) A subscription service, for purposes of
			 Oregon Laws 2021, Chapter 74, Section 2(3), means a service provided by a cable
			 service provider, a direct broadcast satellite system, an internet content
			 distributor or any other distributor that charges viewers for access to any
			 programming.
(4) The election
			 allowed under Oregon Laws 2021, Chapter 74, Section 2(4) is available to any
			 taxpayer with any broadcasting sales.
(5) The provisions of this rule apply to tax
			 years beginning on or after January 1, 2020.
Publications: Contact the Oregon Department of Revenue for
				  information about how to obtain a copy of the publication referred to or
				  incorporated by reference in this rule pursuant to ORS
				  183.360(2) and
				  ORS 183.355(1)(b).
Statutory/Other Authority: ORS
				  305.100
Statutes/Other Implemented: ORS
				  314.605 -
				  314.675
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 314 - INCOME TAXATION GENERALLY GENERAL PROVISIONS › Section 150-314-0470 - Interstate Broadcasters: Net Income Attributable to this State

Current through Register Vol. 63, No. 7, July 1, 2024
(1) The allocation
			 and apportionment provisions in ORS
			 314.610 to
			 314.667 as modified by ORS
			 314.684, are required for
			 interstate broadcasters unless the application of those provisions does not
			 fairly and accurately reflect the extent of the taxpayer's business activities
			 in this state. The burden is on the taxpayer to show that the allocation and
			 apportionment provisions do not fairly and accurately reflect their activities
			 within the state.
(2) If the
			 application of the allocation and apportionment provisions do not fairly and
			 accurately reflect the extent of the taxpayer's business activities in this
			 state, Oregon net income shall be computed using segregated
			 accounting.
Stat. Auth.: ORS
				  305.100
Stats. Implemented: ORS
				  314.686
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 314 - INCOME TAXATION GENERALLY GENERAL PROVISIONS › Section 150-314-0475 - Consistent Treatment of Partnership Items

Current through Register Vol. 63, No. 7, July 1, 2024
(1) General Rule.
(a) In general, the treatment of a
			 partnership item on the partner's return must be consistent with the treatment
			 of that item by the partnership in all respects including the amount, timing,
			 and characterization of the item. The following examples illustrate instances
			 of inconsistent treatment:
Example 1
:
B is a partner of Partnership P. Both B and P use the calendar
			 year as the taxable year. In December 1993, P receives an advance payment for
			 services to be performed in 1994 and reports this amount as income for calendar
			 year 1993. However, B reports B's distributive share of that amount on B's
			 income tax return for 1994 and not on B's return for 1993. B's treatment of
			 this partnership item is inconsistent with the treatment of the item by
			 P.
Example 2
:
Partnership P incurred certain start-up costs before P was actively engaged in
			 business. P capitalized these costs. C, a partner in P, deducted C's
			 proportionate share of these start-up costs. C's treatment of the partnership
			 expenditure is inconsistent with the treatment of the item by P.
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 314 - INCOME TAXATION GENERALLY GENERAL PROVISIONS › Section 150-314-0480 - Publicly Traded Partnerships Taxed as Corporations

Current through Register Vol. 63, No. 7, July 1, 2024
(1) "Publicly traded partnership" means a
			 partnership with interests traded on an established securities market or
			 readily tradable on a secondary market (or its substantial equivalent),
			 including master limited partnerships, under the provisions of IRC 7704. Oregon
			 adopted the provisions of IRC 7704 retroactively.
(2) Publicly traded partnerships deriving
			 less than 90 percent of their gross income from qualifying passive-type income
			 sources are treated as corporations for federal and Oregon tax purposes.
			 Examples of qualifying income sources include interest, dividends, real
			 property rents, gain from the disposition of real property, mining and natural
			 resource income, and gain from the disposition of capital assets or IRC 1231(b)
			 property held for the production of such income.
(3) A publicly traded partnership that was
			 not an existing partnership on December 17, 1987, shall be treated as a
			 corporation for tax years beginning after December 31, 1987.
(4) A publicly traded partnership that was an
			 existing partnership on December 17, 1987, shall be treated as a corporation
			 for tax years beginning after December 31, 1997.
Stat. Auth.: ORS
				  305.100
Stats. Implemented: ORS
				  314.722
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 314 - INCOME TAXATION GENERALLY GENERAL PROVISIONS › Section 150-314-0485 - Partnership Information Returns

Current through Register Vol. 63, No. 7, July 1, 2024
(1)
			 Partnership required to file. A partnership must file for Oregon an information
			 return of its business activity and include other information as required by
			 section (2) of this rule if the partnership:
(a) Has income that is derived from or
			 connected with sources within Oregon; or
(b) Has one or more Oregon resident partners
			 during the taxable year of the partnership.
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 314 - INCOME TAXATION GENERALLY GENERAL PROVISIONS › Section 150-314-0487 - Partnership Penalty

Current through Register Vol. 63, No. 7, July 1, 2024
(1) A penalty is
			 assessable against a partnership that transacts business in Oregon, but fails
			 to timely file a partnership return (including extensions) or fails to show the
			 required information as defined in ORS
			 314.724. Under ORS
			 305.229, a penalty will not be
			 imposed unless the partnership fails to file or to supply required filing
			 information after requested in writing by the department to do so.
(2) The penalty is $50 per month or part of a
			 month that the partnership return is late or incomplete up to a maximum of five
			 months. The penalty amount is multiplied by the total number of partners in the
			 partnership during any part of the tax year for which the return is due.
			 Although the penalty is assessed against the partnership each partner is
			 individually liable for the penalty to the extent that the partner is liable
			 for partnership debts generally.
Example 1
:
A partnership return for 2006 is due April 17, 2007. However,
			 the return is not filed until July 3, 2007. No penalty will be assessed even
			 though the partnership return is filed late.
Example 2
:
A partnership return
			 for 2006 is due April 17, 2007. After written requests to file by the
			 department, the partnership still does not file a return. The partnership has
			 one general partner and three limited partners. Penalty will be assessed for
			 failure to file a return. The penalty computation is shown below:
$50 - 5 months - 4 partners = $1,000 penalty
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 314 - INCOME TAXATION GENERALLY GENERAL PROVISIONS › Section 150-314-0495 - Corporation Tax Credits - Converting a C Corporation to an S Corporation

Current through Register Vol. 63, No. 7, July 1, 2024
Tax credits carried forward from a tax year of C corporation
				status are only available to offset corporate tax liabilities when S
				corporation status is elected. They are not available for pass through to S
				corporation shareholders. In addition, Oregon corporate taxes attributable to
				an S corporation's built-in gains or C corporation taxes following termination
				of S corporation status can be offset by such carryover credits. S corporation
				taxes attributable to excess net passive investment income cannot be offset by
				carryover credits.
Example:
Corporation Z is a C corporation in 1988
				with a $6,000 tax liability. Corporation Z qualifies for a $7,000 tax credit
				for investment in a dependent care facility. The $1,000 unused tax credit is
				carried forward to 1989. Corporation Z elects to be an S corporation in 1989
				and has a corporate tax liability of $5,000 from built-in gains. Corporation Z
				shall offset its tax with the $1,000 credit carry forward. The credit carry
				forward is not available for pass through to the
				shareholders.
Stat. Auth.: ORS
				  305.100
Stats. Implemented: ORS
				  314.732
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 314 - INCOME TAXATION GENERALLY GENERAL PROVISIONS › Section 150-314-0497 - Corporation Tax Credits - Converting an S Corporation to a C Corporation

Current through Register Vol. 63, No. 7, July 1, 2024
Tax credits passed through to shareholders and not used
				entirely to offset the shareholders' tax liabilities in the year of
				pass-through shall be carried forward by the shareholders. Such unused credits
				may not offset corporation tax liabilities in future years when C corporation
				status has been elected.
Stat. Auth.: ORS
				  305.100
Stats. Implemented: ORS
				  314.732
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 314 - INCOME TAXATION GENERALLY GENERAL PROVISIONS › Section 150-314-0510 - Definitions for Composite Tax Returns and Pass-through Entity Withholding

Current through Register Vol. 63, No. 7, July 1, 2024
The following definitions apply for purposes of ORS
				314.775 to
				314.784, this rule, and OAR
				150-314-0515 to 150-314-0525:
(1)
			 "Apportionable income" means apportionable income as defined in ORS
			 314.610(1).
(2) "Corporate owner" is an owner that is a
			 corporation taxed under ORS chapter 317 or 318.
(3) "Disregarded entity" is an entity that is
			 not recognized as a separate entity for income tax purposes such that all items
			 related to the entity are reported on the owner's income tax return. Examples
			 of disregarded entities are:
(a) Single
			 member limited liability company (LLC) that does not elect to be classified as
			 an association under Treasury Regulation section 301.7701-2, and
(b) Grantor trusts.
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 314 - INCOME TAXATION GENERALLY GENERAL PROVISIONS › Section 150-314-0515 - Oregon Composite Tax Return

Current through Register Vol. 63, No. 7, July 1, 2024
(1)
			 A pass-through entity (PTE) doing business in or deriving income from sources
			 within this state is required to file an Oregon composite tax return if
			 requested by one or more nonresident owners.
(a) Computation of tax. Each PTE filing a
			 composite return on behalf of electing nonresident owners must calculate the
			 tax for each owner. The tax liability for each nonresident owner included on
			 the composite return, determined without regard to the tax credits allowed
			 under subsection (1)(b) of this rule, is calculated by applying the Oregon tax
			 rates based on the owner's filing status to the difference between the owner's
			 share of the entity's Oregon-source distributive income for the taxable year
			 and, if applicable, the owner's self-employment tax deduction, as provided for
			 in subsection (1)(b) of this rule. If distributive income is apportioned, the
			 deduction must also be apportioned by multiplying the owner's federal deduction
			 for one-half self-employment tax (attributable to the owner's share of the
			 entity's net earnings from self-employment), if applicable, by the
			 apportionment percentage provided in ORS
			 314.650 through
			 314.675. The PTE will report on
			 the Oregon composite return the tax computed for each electing owner and total
			 amounts for all electing owners.
(b) Credits and deductions. Below is a list
			 of items that may or may not be allowed for the electing owners. [See PDF link
			 below]
(c) Net operating losses for
			 Oregon nonresidents subject to tax under ORS chapter 316 are computed under ORS
			 316.028. A PTE that has filed an
			 Oregon composite tax return on behalf of nonresident individual owners may file
			 amended returns to carry back the Oregon net operating losses incurred by the
			 PTE. A schedule must be retained by the PTE indicating the taxpayers affected
			 and calculations of the loss amounts and made available to the department upon
			 request. These losses may also be carried forward. The allowed carryback and
			 carryforward periods (including elections to forego the carryback period) are
			 the same as provided under Internal Revenue Code section 172. The election to
			 forego the carryback period must be made by attaching a statement to the Oregon
			 composite return filed on or before the due date (including extensions) of the
			 return for the loss year. Corporations are not allowed to carry back a net
			 operating loss (ORS 317.476).
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 314 - INCOME TAXATION GENERALLY GENERAL PROVISIONS › Section 150-314-0520 - Pass-through Entity Withholding Requirements

Current through Register Vol. 63, No. 7, July 1, 2024
(1) Withholding requirement. A pass-through
			 entity with Oregon-source distributive income and one or more nonresident
			 owners that have no other Oregon-source income, is required to withhold tax on
			 behalf of the owner unless that owner makes an election as described in OAR
			 150-314-0515, the pass-through entity elects to pay the pass-through entity
			 elective tax, or meets an exception described in 150-314-0525. "Tax payment" or
			 "owner payment" means pass-through entity withholding, which is an estimated
			 tax payment sent on behalf of the owner. The entity must withhold tax as
			 follows:
(a) For nonelecting owners subject
			 to tax under ORS Chapter 316, each owner's share of estimated Oregon-source
			 distributive income for the taxable year multiplied by the highest percent in
			 316.037; and
(b) For nonelecting
			 owners subject to tax under ORS Chapter 317 or 318, each owner's share of
			 estimated Oregon-source distributive income for the taxable year multiplied by
			 the rates in 317.061.