reglab/statecodes huggingface dataset:
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 314 - INCOME TAXATION GENERALLY GENERAL PROVISIONS › Section 150-314-0250 - Refunds; Net Operating Loss and Net Capital Loss Carryback Claims

Current through Register Vol. 63, No. 7, July 1, 2024
(1) Application.
			 For purposes of this rule, provisions applying to individuals also apply to
			 estates and trusts.
(2) Extended
			 period for refund claim.
(a) A special period
			 of limitations is provided under ORS
			 314.415(5)(a)
			 to claim a refund or credit attributable to an individual net operating loss
			 (NOL) or corporation net capital loss carryback. A refund claim for an
			 individual net operating loss or corporation net capital loss carryback year
			 must be filed within three years from the due date (including extensions) of
			 the taxable year of the net operating loss or net capital loss which results in
			 the carryback.
Example 1: Edward filed his 2007, 2008, 2009, 2010, and 2011
				returns by their respective due dates. On March 15, 2014, Edward filed his 2012
				return on which he claimed a net operating loss. The refund claims for the
				carryback years (2007 through 2011) must be filed by April 15, 2016, three
				years after the due date of the 2012 net operating loss year return.
(b) The provision allowing refunds
			 of tax within two years of the date of payment is not extended.
Example 2: Assume the same facts as in Example 1 except that
				the original 2012 return was not filed until March 15, 2016, was filed as a
				paid return and did not claim a net operating loss. On June 15, 2016, Edward
				filed an amended return (refund claim) for 2012 to claim an additional business
				expense. The amended return creates a net operating loss for 2012. Edward is
				allowed a refund for the 2012 taxes paid within the two years preceding his
				refund claim. Refund claims for the net operating loss carryback years (2007
				through 2011) must have been filed by April 15, 2016, three years after the due
				date of the 2012 net operating loss year return. The date of filing of the net
				operating loss claim (June 15, 2016) does not extend the date of filing of the
				refund claims for the carryback years beyond the three-year period.
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 314 - INCOME TAXATION GENERALLY GENERAL PROVISIONS › Section 150-314-0252 - Effect of Federal Extension of Period for Assessment

Current through Register Vol. 63, No. 7, July 1, 2024
If a taxpayer and the Commissioner of Internal Revenue enter
				into an agreement, or renewal thereof, extending the period of time for giving
				notices of deficiencies and assessing deficiencies of federal income tax for
				tax years beginning on or after January 1, 1969, the period within which a
				refund claim may be filed or a refund allowed if no claim is filed shall be
				within the limits set forth in subsections (1) to (5) of ORS
				314.415 or within six months
				from the expiration date of the federal agreement, whichever period expires the
				later.
Stat. Auth.: ORS
				  305.100
Stats. Implemented: ORS
				  314.415
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 314 - INCOME TAXATION GENERALLY GENERAL PROVISIONS › Section 150-314-0254 - Separate Refunds When a Joint Return Has Been Filed

Current through Register Vol. 63, No. 7, July 1, 2024
(1) The department may, as a convenience to
			 taxpayers, issue separate refunds when either spouse submits a signed request.
			 To issue separate refunds when a joint refund check has already been issued,
			 the check must be returned uncashed. If either spouse has an amount owing to
			 the state of Oregon, any refund due that person will be applied to the
			 liability and the balance, if any, issued in a separate refund check.
(2) For purposes of this rule, the separate
			 adjusted gross income (AGI) of each spouse is equal to each spouse's share of
			 Oregon adjusted gross income.
Example 1 : Ann
			 and her husband Ian, both Idaho residents, filed a joint Oregon return claiming
			 a $600. He owes a $500 debt to an Oregon city for unpaid parking tickets so the
			 department withheld part of the joint $600 refund to pay the $500 debt and
			 issued a $100 refund for the difference. Before they cashed the $100 refund,
			 Ann sent it back requesting her share of the amount paid to the city in Oregon
			 because she did not owe the debt. Ian reported $25,000 of wages of which he
			 earned $10,000 in Oregon. Ann reported $15,000 of wages of which $5,000 she
			 earned in Oregon. They had no other income to report. The department will
			 apportion her refund based on her share of Oregon AGI as follows:
Federal column Oregon Column
Ian's wages $25,000 $10,000
Ann's wages $15,000 $5,000
Federal AGI $40,000 $15,000 (Oregon AGI)
$5,000 ÷ $15,000 = 1/3
$600 x 1/3 = $200
The department will apportion the $600 refund and issue a $200
				refund to Ann. Ian's portion of the refund was $400 thus he still owes the City
				of Portland $100.
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 314 - INCOME TAXATION GENERALLY GENERAL PROVISIONS › Section 150-314-0256 - Refunds of Tax Overpayments to Spouse or Heirs

Current through Register Vol. 63, No. 7, July 1, 2024
(1) For deaths which occur on or after
			 September 9, 1995: Upon the death of a taxpayer entitled to a refund not in
			 excess of $10,000, when the estate is not probated, refunds may be made to
			 survivors by classes upon filing acceptable affidavits, in the following order
			 of precedence: Surviving spouse; the trustee of a revocable inter vivos trust;
			 children, and issue of a deceased child by right of representation (the
			 grandchildren dividing share and share alike what their deceased parent would
			 have taken if alive); parents; brothers and sisters; nephews and nieces. If a
			 small estate affidavit is filed, a refund may be made in the amount of the
			 difference between the value of other personal property in the small estate and
			 $50,000. See ORS 114.515,
			 293.490 to
			 293.500.
(2) For deaths which occur prior to September
			 9, 1995: The refund limitation amount is $1,000 or less, and trustees are not
			 allowed to claim the refund.
Stat. Auth.: ORS
				  305.100
Stats. Implemented: ORS
				  314.415
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 314 - INCOME TAXATION GENERALLY GENERAL PROVISIONS › Section 150-314-0265 - Model Recordkeeping and Retention

Current through Register Vol. 63, No. 7, July 1, 2024
(1) Definitions. For purposes of this rule,
			 these terms shall be defined as follows:
(a)
			 "Database management system" means a software system that controls, relates,
			 retrieves, and provides accessibility to data stored in a database.
(b) "Electronic data interchange" or "EDI
			 technology" means the computer-to-computer exchange of business transactions in
			 a standardized structured electronic format.
(c) "Hard copy" means any documents, records,
			 reports or other data printed on paper.
(d) "Machine-sensible record" means a
			 collection of related information in an electronic format. Machine-sensible
			 records do not include hard-copy records that are created or recorded on paper
			 or stored in or by an imaging system such as microfilm, microfiche, or
			 storage-only imaging systems.
(e)
			 "Storage-only imaging system" means a system of computer hardware and software
			 that provides for the storage, retention and retrieval of documents originally
			 created on paper. It does not include any system, or part of a system, that
			 manipulates or processes any information or data contained on the document in
			 any manner other than to reproduce the document in hard copy or as an optical
			 image.
(f) "Taxpayer" as used in
			 this rule means any natural person, estate, trust, or beneficiary whose income
			 is in whole or in part subject to the taxes administered by the department that
			 tie to provisions in ORS chapter 314.
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 314 - INCOME TAXATION GENERALLY GENERAL PROVISIONS › Section 150-314-0267 - Requirement to Provide Copies of Documents

Current through Register Vol. 63, No. 7, July 1, 2024
(1) Definitions for purposes of this rule.
(a) "Photocopy" (photocopied) means a copy or
			 reproduction of an original document including books and papers; to make a
			 photographic reproduction of any document, printed, pictorial, or other medium
			 of information or recordkeeping.
(b) "Books and papers" has the same meaning
			 as given in OAR 150-305.190.
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 314 - INCOME TAXATION GENERALLY GENERAL PROVISIONS › Section 150-314-0275 - Definition: Collection Charge

Current through Register Vol. 63, No. 7, July 1, 2024
As used in ORS
				314.430(1)"collection
				charge" includes:
(1) The fees and
			 costs listed in ORS 18.999(4),
			 related to recovery of expenses incurred in enforcing judgments, and
(2) All fees or charges of the Secretary of
			 State imposed under ORS
			 305.184 incurred in filing,
			 releasing, cancelling, or satisfying a warrant filed with the Secretary of
			 State under ORS 305.182.
Stat. Auth.: ORS
				  305.100
Stats. Implemented: ORS
				  314.430
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 314 - INCOME TAXATION GENERALLY GENERAL PROVISIONS › Section 150-314-0277 - Payment Secured by Bond, Deposit or Otherwise

Current through Register Vol. 63, No. 7, July 1, 2024
The issuance of a warrant to the sheriff to enforce collection
				of delinquent taxes will be stayed either by paying the amount of assessed
				taxes, penalties and accrued interest after it becomes due or by securing
				payment of that amount by bond, irrevocable letter of credit, deposit or
				otherwise. The bond or irrevocable letter of credit given by the taxpayer must
				be for an amount not less than the amount of the taxes assessed, plus
				penalties, plus interest for a reasonable period determined by the Department.
				The bond must be executed by a surety company which is registered with and
				under the supervision of the Insurance Commissioner of the State of Oregon; or
				by two or more individual sureties, each of whom shall be a resident and a
				householder or freeholder within the state and each of whom shall be worth the
				sum specified in the undertaking, exclusive of property exempt from execution
				and over and above all just debts and liabilities. However, the Department may
				allow more than two sureties to justify severally in amounts less than that
				expressed in the undertaking, if the whole justification is equivalent to that
				of two sufficient undertakings. The irrevocable letter of credit must be issued
				by a commercial bank as defined in ORS
				706.005. Any one of the
				following items, or combination of items acceptable to the Department, equal in
				amount to the taxes, penalties and accrued interest thereon may be deposited
				with the Department of Revenue:
(1) A
			 deposit of money;
(2) A certified
			 check or checks on any state or national bank within the State of Oregon
			 payable to the Department of Revenue;
(3) Satisfactory municipal bonds negotiable
			 by delivery, or obligations of the United States Government negotiable by
			 delivery; or
(4) Any other
			 security satisfactory to the Department. The Department of Revenue may require
			 additional security whenever in its opinion the value of the security pledged
			 is no longer sufficient to adequately secure the Payment of the taxes,
			 penalties and accrued interest thereon.
Stat. Auth.: ORS
				  305.100
Stats. Implemented: ORS
				  314.430
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 314 - INCOME TAXATION GENERALLY GENERAL PROVISIONS › Section 150-314-0279 - Statute of Limitation on Tax Collection

Current through Register Vol. 63, No. 7, July 1, 2024
No statute of limitation runs on a tax self-assessed or
				additionally assessed by the Department in the time allowed by ORS
				314.410 and collectible by
				warrant. However, the statute of 10 years limitation on judgment liens begins
				to run on a tax lien as soon as the tax warrant is filed pursuant to ORS
				314.430. Such lien may be
				renewed by court order without loss of priority.
Stat. Auth.: ORS
				  305.100
Stats. Implemented:
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 314 - INCOME TAXATION GENERALLY GENERAL PROVISIONS › Section 150-314-0290 - Estimated Tax: When Estimates Are Required; Refunds Prior to Filing of Return

Current through Register Vol. 63, No. 7, July 1, 2024
(1) Every
			 corporation or group of corporations required to file an Oregon excise or
			 income tax return and expecting to have a tax liability of $500 or more must
			 make estimated tax payments. Estimated tax liability means the tax as computed
			 under ORS Chapter 317 or 318, less allowable credits. For purposes of
			 determining whether estimated tax liability exceeds $500, a credit resulting
			 from overpayment of tax for a prior year is not taken into account.
(2) Generally, estimated tax payments will
			 not be refunded prior to the taxpayer's filing of the tax return for the year
			 for which the estimated tax payments were made. The fact that the estimated tax
			 payments made exceed the required payments based upon an exception to
			 underpayment is not sufficient cause to refund such excess prior to the filing
			 of the Oregon tax return. Where taxpayers establish to the satisfaction of the
			 department that the facts warrant a refund, a refund of estimated taxes can be
			 made prior to the filing of the tax return. Examples of fact situations that
			 may be considered sufficient to warrant a refund are as follows:
Example 1
:
Estimated tax
			 payments were made by a corporation that qualified as an S corporation for the
			 entire tax year through the date the refund is requested.
Example 2
:
Estimated tax
			 payments were made by a corporation that will not be required to file a return
			 for the tax year for which the estimated tax payments were made.
Example 3
:
The estimated tax
			 payments were intended for the Internal Revenue Service but were sent to the
			 Department of Revenue in error.
Example
			 4
:
Taxpayer provides proof that the taxpayer
			 intended the payment for another account or liability and the payment was
			 misapplied to their estimated tax by the department.
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 314 - INCOME TAXATION GENERALLY GENERAL PROVISIONS › Section 150-314-0292 - Estimated Tax: When Estimates Are Required For Tax Exempt Corporations

Current through Register Vol. 63, No. 7, July 1, 2024
Tax exempt corporations subject to tax on their "Unrelated
				Business Income" and that are required to file and pay federal income taxes,
				must also file an Oregon tax return. If their Oregon tax liability is more than
				$500, estimated tax payments must be made.
Stat. Auth.: ORS
				  305.100
Stats. Implemented: ORS
				  305.305
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 314 - INCOME TAXATION GENERALLY GENERAL PROVISIONS › Section 150-314-0294 - Estimated Tax: Affiliated Corporations

Current through Register Vol. 63, No. 7, July 1, 2024
(1) If two or more affiliated corporations
			 file a consolidated state return as described in ORS
			 317.710 through
			 317.725, each shall be jointly
			 and severally liable for the filing and payment of the estimated tax liability.
			 Estimated tax shall be made on a consolidated basis.
(2) See OAR 150-314.525(1)-(B) for an
			 explanation of how to compute an underpayment of estimated taxes for
			 corporations filing a consolidated Oregon return.
Stat. Auth.: ORS
				  305.100
Stats. Implemented: ORS
				  314.505
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 314 - INCOME TAXATION GENERALLY GENERAL PROVISIONS › Section 150-314-0300 - Estimated Tax: Due Dates of Payments for Short-Period Returns

Current through Register Vol. 63, No. 7, July 1, 2024
If a return is filed for a short period of less than 12 months,
				the estimated tax payments are due as follows:
(1) If the period covered is less than four
			 months, only one payment is required. It is equal to 100 percent of the
			 estimated tax and is payable on the due date of the return.
(2) If the period covered is four months or
			 longer but less than six months, two payments are required. One-half of the
			 estimated tax is due on the 15th day of the fourth month. The balance is due on
			 or before the due date of the tax return, not including extensions.
(3) If the period covered is six months or
			 longer but less than nine months, three payments are required. One-third of the
			 estimated tax is due on the 15th day of the fourth month, one-third on the 15th
			 day of the sixth month and the balance on or before the due date of the tax
			 return, not including extensions.
(4) If the period covered is nine months or
			 longer, but less than twelve months, four payments are required. One-fourth of
			 the estimated tax is due on the 15th day of the fourth month, one-fourth on the
			 15th day of the sixth month, one-fourth on the 15th day of the ninth month, and
			 the balance on or before the due date of the tax return, not including
			 extensions.
Stat. Auth.: ORS
				  305.100
Stats. Implemented: ORS
				  314.515
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 314 - INCOME TAXATION GENERALLY GENERAL PROVISIONS › Section 150-314-0302 - Estimated Tax: Application of Payments

Current through Register Vol. 63, No. 7, July 1, 2024
(1) Overpayments of tax
(a) Election. When a corporation files its
			 completed excise or income tax return and the tax shown due thereon is less
			 than the amounts previously paid for that year, the corporation may make an
			 irrevocable election to have the overpayment of tax either refunded or applied
			 as a payment of estimated tax. The election is made by entering the amount in
			 the appropriate space provided on the corporation excise tax return or
			 corporation income tax return.
(b)
			 Application to estimated tax installment. For tax years beginning on or after
			 January 1, 2016, the department will apply the elected overpayment, unless it
			 is subject to an offset under ORS
			 314.415 and related rules, to
			 the following year's estimated tax payment due on the fifteenth day of the
			 fourth month of the taxable year as described by ORS
			 314.515(1)(a),
			 to the extent that the overpayment of tax is attributable to estimated tax
			 payments received prior to the following year's first quarter estimated tax due
			 date. Payments received after the following year's first quarter estimated tax
			 due date will be applied to estimated tax as of the date the payment is
			 received. In the case of an amended or delinquent return, the amount will be
			 credited to the estimated tax installment as of the date the amended or
			 delinquent return was filed or the date a payment was received, whichever is
			 later.
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 314 - INCOME TAXATION GENERALLY GENERAL PROVISIONS › Section 150-314-0310 - Requirement to Use Electronic Funds Transfer

Current through Register Vol. 63, No. 7, July 1, 2024
(1) For tax years beginning on or after
			 January 1, 2002, corporations are required to make estimated Oregon Corporation
			 Excise or Income Tax payments by electronic funds transfer (EFT) if required to
			 pay federal corporation estimated taxes by EFT.
(2) A taxpayer disadvantaged by the
			 requirement to pay by EFT may request an exemption. The request must be in
			 writing and sent to the address for EFT registration. The request must explain
			 why the requirement to pay by EFT is a disadvantage to the taxpayer. An example
			 of a disadvantage to the taxpayer is when the taxpayer's bank or the bank of
			 the taxpayer's payroll service is unable to provide the service. Requests for
			 an exemption will be evaluated on a case by case basis. If granted, the
			 exemption will be for a period of 12 months, during which the taxpayer is
			 expected to make arrangements to comply with the requirement to use EFT. The
			 department will grant only one exemption period to a taxpayer.
(3) Corporations not meeting the requirement
			 to pay by EFT may do so voluntarily by completing and submitting to the
			 department an application for either ACH Debit or ACH Credit EFT. Applications
			 can be requested from the department.
(4) After beginning to make payments
			 electronically, a volunteer may discontinue electronic payments by sending a
			 written request to stop paying to EFT. The request must be sent at least 30
			 days prior to the date the volunteer wishes to stop paying by EFT. If the
			 volunteer has not reached the then current mandate threshold, the department
			 shall allow the employer to discontinue electronic payments. The volunteer
			 shall continue to make payments by EFT until 30 days after sending the request
			 to the department or the volunteer receives notice from the department agreeing
			 to the discontinuance, whichever occurs earlier.
Stat. Auth.: ORS
				  305.100
Stats. Implemented: ORS
				  314.518
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 314 - INCOME TAXATION GENERALLY GENERAL PROVISIONS › Section 150-314-0317 - Estimated Tax: Consolidated Return Underpayments

Current through Register Vol. 63, No. 7, July 1, 2024
(1) If a consolidated state return is filed,
			 any underpayment shall be computed on a consolidated basis. In computing the
			 underpayment on a consolidated basis, the tax and facts shown on the returns
			 for the preceding year shall be aggregated regardless of whether consolidated
			 or separate returns were filed.
Example 1
:
Corporation A and B file a consolidated state return in 1995.
			 They filed separate state returns in 1994 and for 1995 made separate estimated
			 tax payments. [Example not included. See ED. NOTE.]
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 314 - INCOME TAXATION GENERALLY GENERAL PROVISIONS › Section 150-314-0319 - Estimated Tax: Apportioned Returns

Current through Register Vol. 63, No. 7, July 1, 2024
Corporations that are required to apportion income between
				Oregon and other states, are required to use either the current period's actual
				or the prior full year's apportionment factor to meet the annualization
				exception to underpayment of estimated taxes. The prior year's apportionment
				factor may only be used if the prior year's return covered a full 12 months and
				the Oregon apportionment factor was greater than zero.
Stat. Auth.: ORS
				  305.100
Stats. Implemented: ORS
				  314.525
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 314 - INCOME TAXATION GENERALLY GENERAL PROVISIONS › Section 150-314-0321 - Estimated Tax: Application of Net Loss, Annualized Income Exception

Current through Register Vol. 63, No. 7, July 1, 2024
In computing the annualized income, the net loss from a prior
				year carried forward shall be applied in the same manner as in the Internal
				Revenue Service Revenue Ruling (RR) 67-93. The RR 67-93 provides that the net
				loss shall be applied in full against income for the appropriate period prior
				to annualization of the income for such period. For computation of the net loss
				to be carried forward refer to OAR 150-317.476(4) or
				150-314.675.
Stat. Auth.: ORS
				  305.100
Stats. Implemented: ORS
				  314.525
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 314 - INCOME TAXATION GENERALLY GENERAL PROVISIONS › Section 150-314-0323 - Estimated Tax: Interest on Underpayment

Current through Register Vol. 63, No. 7, July 1, 2024
(1) When an estimated tax payment is
			 underpaid, as defined in OAR 150-314.525(1)-(A), interest accrues on the
			 underpaid amount at the rate provided in OAR 150-305.220(1) from the due date
			 of the payment to the earlier of the date the tax is paid or the date the tax
			 return is due.
(2) Interest on
			 underpayment of estimated tax (under ORS
			 314.525) will not be imposed if
			 the tax on the prior year's return was not over $10. A large corporation, as
			 defined in ORS 314.525(5), may
			 only use the exception for the first installment required.
(3) Underpayment interest will not be imposed
			 for a quarter in which the annualized taxable income results in a net
			 annualized tax of $10 or less.
Stat. Auth.: ORS
				  305.100
Stats. Implemented: ORS
				  314.525
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 314 - INCOME TAXATION GENERALLY GENERAL PROVISIONS › Section 150-314-0325 - Estimated Tax: Computation of Underpayment

Current through Register Vol. 63, No. 7, July 1, 2024
(1) Underpayment charges shall be assessed on
			 the last filed return received before the due date for such return. That return
			 shall be considered the "original return," and the tax due shall be used as the
			 basis for computing the underpayment charges.
(2) Once underpayment charges are assessed on
			 the original return, an amended return, reducing the tax liability, shall not
			 reduce the underpayment charges.
Stat. Auth.: ORS
				  305.100
Stats. Implemented: ORS
				  314.525
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 314 - INCOME TAXATION GENERALLY GENERAL PROVISIONS › Section 150-314-0327 - Underpayment of Estimated Tax; First and Second Installment for Large Corporations

Current through Register Vol. 63, No. 7, July 1, 2024
(1) The
			 first required installment is the lowest payment computed under ORS
			 314.525(2)(a) through
			 (2)(d).
(2) If a large corporation qualifies for the
			 exception to paying interest on underpayment of estimated tax for the first
			 installment under ORS
			 314.525(2)(b),
			 the second required installment is calculated by adding:
(a) The reduction to the first installment
			 from using the amount determined under ORS
			 314.525(2)(b),
			 and
(b) The required second
			 installment determined without regard to ORS
			 314.525(2)(b).
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 314 - INCOME TAXATION GENERALLY GENERAL PROVISIONS › Section 150-314-0335 - Apportionable and Nonapportionable Income Defined

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. This rule applies to tax years beginning on or after
			 January 1, 2018.
(2) Apportionment
			 and Allocation. ORS 314.610(1) and
			 (5) require that every item of income be
			 classified either as apportionable income or nonapportionable income. Income
			 for purposes of classification as apportionable or nonapportionable includes
			 gains and losses. Apportionable income is apportioned among jurisdictions by
			 use of a formula. Nonapportionable income is specifically assigned or allocated
			 to one or more specific jurisdictions pursuant to express rules. An item of
			 income is classified as apportionable income if it falls within the definition
			 of apportionable income. An item of income is nonapportionable income only if
			 it does not meet the definitional requirements for being classified as
			 apportionable income.
(3)
			 Apportionable Income. Apportionable income means all income that is
			 apportionable under the Constitution of the United States and is not allocated
			 under the laws of this state, including:
(a)
			 Income arising from transactions and activity in the regular course of the
			 taxpayer's trade or business; and
(b) Income arising from tangible and
			 intangible property if the acquisition, management, employment, development or
			 disposition of the property is or was related to the operation of the
			 taxpayer's trade or business; and
(c) Any income that would be allocable to
			 this state under the Constitution of the United States, but that is apportioned
			 rather than allocated pursuant to the laws of this state. The classification of
			 income by the labels occasionally used, such as manufacturing income,
			 compensation for services, sales income, interest, dividends, rents, royalties,
			 gains, income derived from accounts receivable, operating income, non-operating
			 income, etc., is of no aid in determining whether income is apportionable or
			 nonapportionable income.
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 314 - INCOME TAXATION GENERALLY GENERAL PROVISIONS › Section 150-314-0339 - Proration of Deductions

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) Proration of deductions. In most cases an
			 allowable deduction of a taxpayer will be applicable only to the apportionable
			 income arising from a particular trade or business or to a particular item of
			 nonapportionable income. In some cases an allowable deduction may be applicable
			 to the apportionable incomes of more than one trade or business or to several
			 items of nonapportionable income. In such cases the deduction must be prorated
			 among such trades or businesses and such items of nonapportionable income in a
			 manner that fairly distributes the deduction among the classes of income to
			 which it is applicable.
(3) Year to
			 year consistency. In filing returns with this state, if the taxpayer departs
			 from or modifies the manner of prorating any such deduction used in returns for
			 prior years, the taxpayer must disclose in the return for the current year the
			 nature and extent of the modification.
(4) State to state consistency. If the
			 returns or reports filed by a taxpayer with all states to which the taxpayer
			 reports under the Multistate Tax Compact or the Uniform Division of Income for
			 Tax Purposes Act are not uniform in the application or proration of any
			 deduction, the taxpayer must disclose in its return to this state the nature
			 and extent of the variance.
Statutory/Other Authority: ORS
				  305.100
Statutes/Other Implemented: ORS
				  314.610
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 314 - INCOME TAXATION GENERALLY GENERAL PROVISIONS › Section 150-314-0345 - Apportionment and Allocation of Income Generally

Current through Register Vol. 63, No. 7, July 1, 2024
(1) If the business activity in respect to
			 any trade or business of a taxpayer occurs both within and without this state,
			 and if by reason of such business activity the taxpayer is taxable in another
			 state, the portion of net income (or net loss) arising from such trade or
			 business which is derived from sources within this state must be determined by
			 apportionment in accordance with ORS
			 314.615 to
			 314.675. In such cases, the
			 first step is to determine which portion of the taxpayer's entire net income
			 constitutes apportionable income and which portion constitutes nonapportionable
			 income. The various items of nonapportionable income are then directly
			 allocated to specific jurisdictions pursuant to the provisions of ORS
			 314.625 to
			 314.645. The apportionable
			 income (or loss) of the taxpayer is divided between the jurisdictions in which
			 the business is conducted pursuant to the property, payroll, and sales
			 apportionment factors set forth in ORS
			 314.650 to
			 314.665 and ORS
			 314.675. The sum of (1) the
			 items of nonapportionable income (or loss) directly allocated to this state,
			 plus (2) the amount of apportionable income (or loss) attributable to this
			 state by the apportionment formula constitutes the amount of the taxpayer's
			 entire net income which is subject to tax under the income tax laws of this
			 state.
(2) In filing returns with
			 this state, if the taxpayer departs from or modifies the manner in which income
			 has been classified as apportionable income or nonapportionable income in
			 returns for prior years, the taxpayer must disclose in the return for the
			 current year the nature and extent of the modification. If the returns or
			 reports filed by a taxpayer for 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 classification of income as
			 apportionable or nonapportionable income, the taxpayer must disclose in its
			 return to this state the nature and extent of the variance. ORS
			 314.605 to
			 314.667 exclude financial
			 organizations and public utilities (as defined in ORS
			 314.610). For financial
			 institutions not excluded, such as production credit associations and small
			 loan companies, the three factors ordinarily will be property, payroll, and
			 gross revenue. The definitions of "property" and "gross revenue" that appear in
			 OAR 150-314-0070 are incorporated herein by reference.
Statutory/Other Authority: ORS
				  305.100
Statutes/Other Implemented: ORS
				  314.615
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 314 - INCOME TAXATION GENERALLY GENERAL PROVISIONS › Section 150-314-0347 - Application of ORS 314.610 to 314.667: Allocation

Current through Register Vol. 63, No. 7, July 1, 2024
Any taxpayer subject to the taxing jurisdiction of this state
				shall allocate all of its nonapportionable income or loss within or without
				this state in accordance with ORS
				314.625 to
				314.645.
Statutory/Other Authority: ORS
				  305.100
Statutes/Other Implemented: ORS
				  314.615
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 314 - INCOME TAXATION GENERALLY GENERAL PROVISIONS › Section 150-314-0349 - Apportionment and Allocation for a Taxpayer Carrying on a Unitary Business

Current through Register Vol. 63, No. 7, July 1, 2024
Where the taxpayer's Oregon business activities are a part of a
				unitary business carried on both within and without the state, use of the
				apportionment method is mandatory to determine the portion of the unitary
				apportionable income attributable to Oregon. If the business activities within
				Oregon are integrated with, dependent upon, or contribute to the business
				activities outside the state, the entire operation is unitary in character, and
				the income from Oregon business activities is determined by the apportionment
				method. Whether the Oregon activities engaged in for financial profit actually
				result in a financial profit or loss is not determinative. A unitary business
				may be carried on by a single corporation or by a group of affiliated
				corporations.
Statutory/Other Authority: ORS
				  305.100
Statutes/Other Implemented: ORS
				  314.615
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 314 - INCOME TAXATION GENERALLY GENERAL PROVISIONS › Section 150-314-0355 - Special Rules: Installment Sales

Current through Register Vol. 63, No. 7, July 1, 2024
(1) Income from installment sales is reported
			 at least in part in a year other than the year in which the sale took place.
			 Apportionment of installment sale income on the basis of the factors in the
			 years other than the year of sale would result in such income being apportioned
			 by activities which had no connection with the earning of the income.
(2) This rule applies to taxpayers who use
			 the installment method of reporting income from the sale of property and whose
			 Oregon apportionment percentage for the year of the sale is different than that
			 for any year in which proceeds from that sale are received by the taxpayer. A
			 taxpayer shall apportion the income from the installment sale using the Oregon
			 apportionment percentage of the year of sale.
Example:
X is doing business in States A, B and C.
				During Year 1, the taxpayer sold a plant in State A and realized a $500,000
				gain on the sale. The taxpayer elected to report the sale under the installment
				basis since two equal payments ($250,000 each) are to be received in years 2
				and 3. The taxpayer's apportionment factors were as follows:
Year - Apportionment Factor
1 - 11%
2 - 1%
3 - 32%
State A would realize a taxable gain of $55,000 ($500,000 x
				11%) if the sale was not reported under the installment method. Since the
				apportionment factors have changed to 1 percent and 32 percent in years 2 and 3
				respectively, a taxable gain of $2,500 is reported to State A in year 2 and
				$80,000 in year 3.
Use of the year of sale factor results in $27,500 gain being
				reported to State A in years 2 and 3 (total: $55,000).
Tables referenced are not included in rule text.
Click here for PDF copy of
				  table(s)
.
Stat. Auth.: ORS
				  305.100
Stats. Implemented: ORS
				  314.615
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 314 - INCOME TAXATION GENERALLY GENERAL PROVISIONS › Section 150-314-0357 - Modified Factors for Motion Picture and Television Film Producers

Current through Register Vol. 63, No. 7, July 1, 2024
(1) This regulation
			 applies to motion picture and television film producers and producers of
			 television commercials.
(2)
			 Definitions.
(a) "Film" means the physical
			 embodiment of a play, story, or other literary, commercial, educational, or
			 artistic work, as a motion picture, video tape, disc, or other similar medium,
			 except that it does not include news or sports films produced for telecast.
			 "Film" does not include video cassettes or discs intended for home
			 viewing.
(b) Each episode of a
			 series of films produced for television must constitute a separate film
			 notwithstanding that the series relates to the same principal subject and is
			 produced during one or more television seasons.
(c) "Release date" means the date on which a
			 film is placed in service. A film is placed in service when it is first
			 telecast or exhibited to the primary audience for which the film was created.
			 Thus, a motion picture theater film is placed in service when it is first
			 publicly exhibited for entertainment purposes and an educational film is placed
			 in service when it is first exhibited for instructional purposes. Each episode
			 of a television series is placed in service when it is first telecast. A film
			 is not placed in service merely because it is completed and therefore in a
			 condition or state of readiness and availability for telecast or exhibition, or
			 merely because it is telecast or exhibited to prospective exhibitors, sponsors,
			 or purchasers, or is shown in a "sneak preview" before a select
			 audience.
(d) A "film" is deemed to
			 be tangible personal property.
(e)
			 "Rent" includes license fees for the exhibition or telecast of films.
(f) "Tangible personal property" used in the
			 business, whether owned or rented, includes but is not limited to sets, props,
			 wardrobes, and other similar equipment or property.
(g) A "subscriber" to a subscription
			 television telecaster is the individual residence or other outlet which is the
			 ultimate recipient of the transmission.
(h) "Telecast" means the transmission of an
			 electronic signal by radiowaves or microwaves or by wires, lines, coaxial
			 cables, wave guides, or other tangible conduits of communication.
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 314 - INCOME TAXATION GENERALLY GENERAL PROVISIONS › Section 150-314-0365 - Taxable in Another State; In General

Current through Register Vol. 63, No. 7, July 1, 2024
Under ORS
				314.615 the taxpayer is subject
				to the allocation and apportionment provisions of ORS
				314.610 to
				314.667 if it has income from
				business activity that is taxable both within and without this state. A
				taxpayer's income from business activity is taxable without this state if such
				taxpayer, by reason of such business activity (i.e., the transactions and
				activity occurring in the regular course of a particular trade or business), is
				taxable in another state within the meaning of ORS
				314.620. A taxpayer is "taxable
				in another state" if it meets either one of two tests:
(1) If by reason of business activity in
			 another state the taxpayer is subject to one of the types of taxes specified in
			 ORS 314.620(1),
			 namely: 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) If by reason of such business activity
			 another state has jurisdiction to subject the taxpayer to a net income tax,
			 regardless of whether or not that state imposes such a tax on the taxpayer. A
			 taxpayer is not taxable in another state with respect to a particular trade or
			 business merely because the taxpayer conducts activities in such other state
			 pertaining to the production of nonapportionable income or business activities
			 relating to a separate trade or business.
Statutory/Other Authority: ORS
				  305.100
Statutes/Other Implemented: ORS
				  314.620
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 314 - INCOME TAXATION GENERALLY GENERAL PROVISIONS › Section 150-314-0369 - Taxable in Another State; When a State has Jurisdiction to Subject a Taxpayer to a Net Income Tax

Current through Register Vol. 63, No. 7, July 1, 2024
The second test, that of ORS
				314.620(2),
				applies if the taxpayer's business activity is sufficient to give the state
				jurisdiction to impose a net income tax by reason of such business activity
				under the Constitution and statutes of the United States. Jurisdiction to tax
				is not present where the state is prohibited from imposing the tax by reason of
				the provisions of Public Law 86-272,
				15 USCA Sections
				381-385 . In the case of any "state" as
				defined in subsection (8) of ORS
				314.610, other than a state of
				the United States or political subdivision of such state, the determination of
				whether such "state" has jurisdiction to subject the taxpayer to a net income
				tax shall be made as though the jurisdictional standards applicable to a state
				of the United States applied in that "state." If jurisdiction is otherwise
				present, such "state" is not considered as without jurisdiction by reason of
				the provisions of a treaty between that state and the United States.
Example:
Corporation X is actively engaged in
				manufacturing farm equipment in State A and in foreign country B. Both State A
				and foreign country B impose a net income tax but foreign country B exempts
				corporations engaged in manufacturing farm equipment. Corporation X is subject
				to the jurisdiction of State A and foreign country B.
Stat. Auth.: ORS
				  305.100
Stats. Implemented:
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 314 - INCOME TAXATION GENERALLY GENERAL PROVISIONS › Section 150-314-0371 - Taxable in Another State; Washington Business and Occupation Tax

Current through Register Vol. 63, No. 7, July 1, 2024
For the purposes of Oregon taxation, the Washington Business
				and Occupation (B & O) tax qualifies as a tax described in ORS
				314.620(1). If
				the taxpayer is "subject to" the Washington B & O tax, it is not necessary
				that the business activity be of such a nature or of sufficient magnitude to
				cause the taxpayer to be subject to a net income tax. If the taxpayer is
				subject to the B & O tax, the requirement of taxability in Washington is
				met regardless of whether or not Public Law 86-272 would protect the taxpayer
				from an imposition of a Washington net income tax. It is important to note that
				the taxpayer must be "subject to" and not just making a minimal voluntary
				payment. OAR 150-314.620-(B) provides that the taxpayer will not be considered
				to be "subject to" the tax merely by making a voluntary minimal payment. The
				taxpayer must be filing returns and paying the tax. Oregon will follow the
				determinations by the State of Washington as to what activities create tax
				jurisdiction under the B & O tax.
Stat. Auth.: ORS
				  305.100
Stats. Implemented: ORS
				  314.620
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 314 - INCOME TAXATION GENERALLY GENERAL PROVISIONS › Section 150-314-0380 - Allocation of Interest and Dividends

Current through Register Vol. 63, No. 7, July 1, 2024
(1) Where it appears to the department that a
			 corporation using the apportionment method is improperly using interest
			 deductions to avoid Oregon tax, the corporation will be required to include in
			 apportionable income interest received to the extent of the deduction claimed
			 for interest paid. See U.P.R.R. Co. et al v. Oregon State Tax Comm., 240 Or
			 628, 402 P2d 519 (June 3, 1965).
(2) Nonapportionable dividends are subtracted
			 from modified federal income to compute apportionable income. The subtraction
			 is net of the Oregon dividend deduction claimed for such dividends under ORS
			 317.267. Nonapportionable
			 dividends allocated to Oregon, net of the Oregon dividend deduction, is added
			 to income apportioned to Oregon.
Example:
In 2017, Corporation D received $30,000 in
				dividends, $10,000 of which were nonapportionable dividends allocable to
				Oregon. Corporation D owned less than 20 percent of the stock in the
				corporations paying the dividends, so a 70 percent dividend received deduction
				is allowed on the Oregon return. In the computation of Oregon taxable income,
				$3,000 of nonapportionable dividends (net of the dividend deduction) are
				subtracted from net income before apportionment and then added to income
				apportioned to Oregon. The $3,000 is computed as follows:[See PDF link
				below.]
Publications: Contact the Oregon Department of Revenue to
				  learn how to obtain a copy of the publication referred to or incorporated by
				  reference in this rule pursuant to ORS
				  183.360(2) and
				  183.355(1)(b).
To view tables referenced in rule text,
click here to view
				  rule.
Statutory/Other Authority: ORS
				  305.100
Statutes/Other Implemented: ORS
				  314.640
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 314 - INCOME TAXATION GENERALLY GENERAL PROVISIONS › Section 150-314-0390 - Property Factor; In General

Current through Register Vol. 63, No. 7, July 1, 2024
The property factor of the apportionment formula for each trade
				or business of the taxpayer includes all real and tangible personal property
				owned or rented and used during the tax period in the regular course of such
				trade or business. The term "real and tangible personal property" includes
				land, buildings, machinery, stocks of goods, equipment, and other real and
				tangible personal property but does not include coin or currency. Property used
				in connection with the production of nonapportionable income is excluded from
				the property factor. Property used both in the regular course of taxpayer's
				trade or business and in the production of nonapportionable income is included
				in the factor only to the extent the property is used in the regular course of
				taxpayer's trade or business. The method of determining that portion of the
				value to be included in the factor will depend upon the facts of each case. The
				property factor must reflect the average value of property includable in the
				factor. See OAR 150-314-0406.
Statutory/Other Authority: ORS
				  305.100
Statutes/Other Implemented: ORS
				  314.665