reglab/statecodes huggingface dataset:
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 316 - PERSONAL INCOME TAX GENERAL PROVISIONS › Section 150-316-0565 - Basis of Depreciable Assets Moved into Oregon

Current through Register Vol. 63, No. 7, July 1, 2024
(1) For purposes of this rule taxpayer means
			 an individual, S corporation, or partnership.
(2) Taxpayers not subject to the
			 apportionment provision of ORS
			 314.280 or
			 314.605 to
			 314.675.
(a) For Assets First Brought into Oregon's
			 Taxing Jurisdiction in Tax Years Beginning After 1982 and Prior to Tax Years
			 Beginning January 1, 1985.
(A) If a taxpayer
			 first brings a depreciable asset into Oregon's taxing jurisdiction in tax years
			 beginning after December 31, 1982 and prior to tax years beginning January 1,
			 1985, the asset shall be treated as if it is being converted from personal use
			 to business use. The asset's Oregon basis shall be the lower of the federal
			 unadjusted basis or fair market value. However, in no instance shall the
			 asset's Oregon basis be greater than the lower of:
(i) The federal unadjusted basis less Oregon
			 depreciation previously allowed for Oregon tax purposes; or
(ii) The fair market value less Oregon
			 depreciation previously allowed for Oregon tax purposes.
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 316 - PERSONAL INCOME TAX GENERAL PROVISIONS › Section 150-316-0567 - Property Subject to Accelerated Cost Recovery System

Current through Register Vol. 63, No. 7, July 1, 2024
(1)
(a) In
			 general, the Accelerated Cost Recovery System (ACRS) is available to recovery
			 property placed in service in tax years beginning on or after January 1, 1985.
			 "Recovery Property" means tangible property of a character subject to the
			 allowance for depreciation. This property must be used in a trade or business
			 or be held for the production of income.
(b) Property is considered placed in service
			 when it is in a condition or state of readiness and availability for a
			 specifically assigned function whether in a trade or business, in the
			 production of income, in a tax-exempt activity, or in a personal activity.
			 Where property was placed in service for personal use in a tax year which
			 begins before 1985 and is thereafter converted to business or income producing
			 use, the property is not recovery property for Oregon purposes.
Example:
Beth Muhlenberg purchased her personal
				residence in 1978. She is a calendar year taxpayer. On November 15, 1985 she
				converted her residence to rental property. The residence is considered to be
				placed in service when it is in a condition of readiness for a specifically
				assigned function whether in a trade or business, for the production of income,
				in a personal activity, etc. This occurred in 1978. Thus, the rental property
				is not considered recovery property for Oregon purposes.
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 316 - PERSONAL INCOME TAX GENERAL PROVISIONS › Section 150-316-0569 - Adjustment to Income for Basis Differences

Current through Register Vol. 63, No. 7, July 1, 2024
On the return for the first taxable year beginning after
				December 31, 1995, federal taxable income shall be increased or decreased by an
				amount equal to the difference between the property's adjusted federal basis as
				determined for regular tax purposes and its adjusted Oregon basis due to the
				use of different federal and Oregon depreciation methods, periods, or
				conventions, as defined by IRC 168. If the adjusted Oregon basis is less than
				the adjusted federal basis, the modification shall be an addition. If the
				adjusted Oregon basis is greater than the adjusted federal basis, the
				modification shall be a subtraction. For tax years beginning after December 31,
				1996, no modifications to depreciation expense shall be made as a result of
				using different depreciation methods, periods, or conventions prior to January
				1, 1996.
Stat. Auth.: ORS
				  305.100
Stats. Implemented: ORS
				  316.707
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 316 - PERSONAL INCOME TAX GENERAL PROVISIONS › Section 150-316-0575 - Amount Specially Taxed Under Federal Law to Be Included in Computation of State Taxable Income: Accumulation Distributions

Current through Register Vol. 63, No. 7, July 1, 2024
(1) Oregon law contains no alternate method
			 of calculating tax in the manner provided by the Internal Revenue Code for the
			 federal tax treatment of accumulation distributions. Therefore, income from an
			 accumulation distribution must be added to Oregon taxable income.
(2) Distribution of a trust's income
			 accumulation must be included in the income of the Oregon resident beneficiary
			 for the taxable year that such income is distributed by the trust. The
			 distributions are included in Oregon income in the same manner and to the same
			 extent that the trust's income accumulations are includable in the taxable
			 income of the beneficiary under federal law. The change in the Oregon fiduciary
			 adjustment will also be distributed to the beneficiary.
Example 1
:
In 1987, the ABC
			 trust had $27,596 of gross income. Of this amount, $15,496 was included in
			 distributable net income (DNI). The other $12,100 was capital gain income,
			 which was not included in DNI. The trust made a distribution of $9,460 to the
			 beneficiary, leaving $6,036 in undistributed net income (UNI). After the $9,460
			 distribution deduction and the $100 exemption, the trust's federal taxable
			 income was $18,036 ($12,000 capital gain plus $6,036 UNI).
On the Oregon return, the total fiduciary adjustment was
				($10,862), of which the beneficiary's share was ($6,626), leaving ($4,236) as
				the fiduciary's share. The fiduciary's Oregon taxable income was $13,800
				($18,036 minus $4,236), and the Oregon tax was $1,102.
In 1993, the trust distributed more DNI to the beneficiary than
				the current year's DNI amount, resulting in a distribution of the 1987
				accumulated income. The addition to Oregon income is the taxable accumulation
				distribution as defined in the Internal Revenue Code, Sections 665-668. The
				beneficiary is also allowed an additional fiduciary adjustment amount, based on
				the additional 1987 DNI distributed in 1993. This additional amount is
				calculated as follows: [Formula not included. See ED.
				NOTE.]
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 316 - PERSONAL INCOME TAX GENERAL PROVISIONS › Section 150-316-0580 - Definition for Severely Disabled Exemption

Current through Register Vol. 63, No. 7, July 1, 2024
"Physical or mental condition" means an impairment of the body
				which is of such gravity as to prevent a person from engaging in normal
				activity without the aid of special equipment or assistance.
Examples of severe disabilities include cerebral palsy,
				multiple sclerosis, and brain damage. These disabilities may or may not be
				permanent. Disabilities due to surgery, hospitalization, disease, or injury or
				acute infectious diseases do not qualify where a person can be expected to
				resume a normal life within a generally accepted recovery period.
If the disabled person was employed in a substantially gainful
				occupation, the fact that a physical or mental condition will not permit the
				resumption in the same occupation will not, in and of itself, qualify the
				taxpayer for the exemption.
Example:
A baseball player was injured in an
				accident and was unable to resume that occupation. Subsequently, the player was
				employed full time as a sales representative of a sports company. The player
				received disability compensation from the former employer. The taxpayer is not
				eligible for the exemption.
"Orthopedic or medical equipment" means special equipment
				approved and recommended by a physician. The equipment should alleviate some or
				all of the difficulties which result from the physical or mental condition and
				contribute to the person's mobility and independence. Examples of such
				equipment includes, but are not limited to, wheelchairs, special braces,
				prosthesis or special crutches. Special equipment does not include: glasses,
				ordinary crutches, hearing aids and protective gloves.
Stat. Auth.: ORS
				  305.100
Stats. Implemented: ORS
				  316.752
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 316 - PERSONAL INCOME TAX GENERAL PROVISIONS › Section 150-316-0585 - Exemption for Blind and Severely Disabled

Current through Register Vol. 63, No. 7, July 1, 2024
(1) Oregon allows a personal exemption credit
			 (in the amount determined under ORS
			 316.085) multiplied by the
			 number of personal exemptions claimed under IRC Section 151. If a taxpayer or
			 spouse qualifies for the additional standard deduction for blindness as defined
			 under ORS 316.695(8)(d),
			 the taxpayer or spouse also qualifies for the credit for severely disabled as
			 defined under ORS 316.752(1)(c).
(2) The additional personal exemption will be
			 allowed even if the taxpayer can be claimed on another taxpayer's return and is
			 unable to claim their own personal exemption.
Example:
Sam is 23 years old and blind. He
				qualifies as a dependent on his parents' return. Because Sam is over the age of
				17, his parents cannot claim the additional exemption for their dependent
				disabled child allowed under ORS
				316.099. Sam invests in a
				partnership and is required to file a tax return for federal and state
				purposes. Since his parents are eligible to claim him on their return, he
				cannot claim his own personal exemption. Sam is allowed to claim the additional
				exemption for being severely disabled allowed under ORS
				316.758 and the additional
				standard deduction for being blind.
Stat. Auth.: ORS
				  305.100
Stats. Implemented: ORS
				  316.758
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 316 - PERSONAL INCOME TAX GENERAL PROVISIONS › Section 150-316-0590 - Substantiation for Permanently Severely Disabled

Current through Register Vol. 63, No. 7, July 1, 2024
(1) Upon audit, taxpayers who are permanently
			 severely disabled shall have available a letter from a physician, which
			 substantiates their disability. The letter must:
(a) State the nature and extent of the
			 physical disability in layman's terms; and
(b) Confirm that the disability is of a
			 permanent nature according to the requirements for permanent severe disability
			 stated below.
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 316 - PERSONAL INCOME TAX GENERAL PROVISIONS › Section 150-316-0595 - Exempt Income of Native Americans

Current through Register Vol. 63, No. 7, July 1, 2024
(1) ORS
			 316.777 exempts from Oregon
			 taxation certain income earned by an enrolled member of a federally recognized
			 Indian tribe. To qualify under these provisions, at the time the income is
			 earned the tribal member must reside in "Indian country" in Oregon, and the
			 income must be derived from sources within Indian country in Oregon. A tribal
			 member who resides outside of Indian country can not exclude income from Oregon
			 tax under the provisions of ORS
			 316.777. The person is subject
			 to the statutes and rules governing Oregon residents and nonresidents and is
			 taxed accordingly.
(2) Definitions:
			 For purposes of this rule:
(a) "Current
			 reservation boundaries" means the boundaries in existence at the time of the
			 transaction.
(b) "Indian country"
			 means any federally recognized Indian reservation in Oregon or other land in
			 Oregon that has been set aside for the residence of tribal Indians under
			 federal protection, and includes:
(A) Any
			 land within the current reservation boundaries of a federally recognized
			 reservation regardless of ownership.
(B) Tribal- or member-owned land outside
			 current reservation boundaries if held in trust for the benefit of the tribe or
			 its members.
(C) Land that the
			 federal government allotted to a tribal member that since the time of the
			 allotment has been continuously either:
(i)
			 Held in trust by the federal government for the benefit of an individual tribal
			 member(s), i.e. a trust allotment; or
(ii) Owned by a tribal member(s) with
			 continuing federal restrictions against sale of the land, i.e., a restricted
			 allotment.
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 316 - PERSONAL INCOME TAX GENERAL PROVISIONS › Section 150-316-0600 - Oregon Investment Advantage Apportionable Income Exemption

Current through Register Vol. 63, No. 7, July 1, 2024
(1) Definitions.
			 For purposes of ORS 316.778 and this rule, "business
			 firm's income" has the meaning given the term "apportionable income" in ORS
			 314.610(1) and
			 OAR 150-314-0335.
(2) Computing
			 exempt income. Any ratio contained in the formulas outlined in ORS
			 316.778 may not be greater than
			 100 percent or less than zero.
(3)
			 Method of determining the business firm's income derived from the activities at
			 the certified facility. A business firm's income derived from the firm's
			 activities at a certified facility is determined by multiplying the total
			 apportionable income of the business firm by a fraction, the numerator of which
			 is the total sales from the certified facility during the tax period, and the
			 denominator of which is the total sales of the business firm everywhere during
			 the tax period.
Example 1: Wee Company had
			 sales of $2,250,000 from its certified facility. Total sales of Wee Company
			 were $3,450,000. Apportionable income of Wee Company for the same fiscal year
			 equaled $500,000. Wee Company computes its income derived from the certified
			 facility as follows: $2,250,000 (Sales from certified facility) ·
			 $3,450,000 (Total firm sales) = 65.2 percent. $500,000 (Apportionable income) x
			 0.652 = $326,000 (Business firm's income derived from certified
			 facility).
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 316 - PERSONAL INCOME TAX GENERAL PROVISIONS › Section 150-316-0605 - Military Pay Subtraction

Current through Register Vol. 63, No. 7, July 1, 2024
(1)
			 Definitions.
(a) "Uniformed services" refers
			 only to services under the orders of the President of the United States and
			 means the commissioned corps of the National Oceanic and Atmospheric
			 Administration (i.e., the Coast and Geodetic Survey) and the Public Health
			 Service (regular and reserve), consistent with
			 10 USC §
										101(a)(5)(B) and (5)(C).
			 Other members of the National Oceanic and Atmospheric Administration and the
			 Public Health Service, or members of these organizations not under the orders
			 of the President, are not included in this definition and would not qualify for
			 an Oregon military pay subtraction.
(b) "Home of the taxpayer" is where the
			 taxpayer does any of the following:
(A)
			 Maintains his or her primary residence;
(B) Lives with his or her family;
			 or
(C) Incurs continuing living
			 expenses, such as mortgage or rent, utilities, and real and personal property
			 taxes and insurance.
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 316 - PERSONAL INCOME TAX GENERAL PROVISIONS › Section 150-316-0607 - First-time Home Buyer Savings Account

Current through Register Vol. 63, No. 7, July 1, 2024
(1) Annual statement. Financial institutions
			 must issue an annual statement (or certificate) to each account holder at the
			 end of each calendar tax year, by January 31 of the following year. The annual
			 statement must include all transactions that occurred during the calendar year,
			 along with the following information:
(a) A
			 title or account type indicating that the account is a first-time home buyer
			 savings account;
(b) The name of
			 the account holder, or account holders if a joint account;
(c) The date the account was
			 created;
(d) The date and amount of
			 each deposit into the account during the calendar year;
(e) The date and amount of each withdrawal
			 from the account during the calendar year;
(f) The amount of earnings accumulated in the
			 account; and
(g) The balance of the
			 account at the beginning and end of the calendar year.
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 316 - PERSONAL INCOME TAX GENERAL PROVISIONS › Section 150-316-0610 - Road Construction Worker's Travel Expenses

Current through Register Vol. 63, No. 7, July 1, 2024
(1) As used in ORS
			 316.806(1), the
			 term "construction job site" includes a roadway.
(2) As used in ORS
			 316.806(2), the
			 term "structure" includes a road or railway.
Stat. Auth.: ORS
				  305.100
Stats. Implemented: ORS
				  316.806
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 316 - PERSONAL INCOME TAX GENERAL PROVISIONS › Section 150-316-0615 - Substantiation Required for Construction Worker and Loggers Expenses

Current through Register Vol. 63, No. 7, July 1, 2024
Upon audit, the taxpayer may be required to provide the same
				substantiation that would be necessary for a travel expense deduction allowable
				under IRC 162(a).
Stat. Auth.: ORS
				  305.100
Stats. Implemented: ORS
				  316.818,
				  316.832
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 316 - PERSONAL INCOME TAX GENERAL PROVISIONS › Section 150-316-0625 - (Miscellaneous) Valuation of Forest Land or ''Farm Use'' Land for Oregon Inheritance Tax Purposes

Current through Register Vol. 63, No. 7, July 1, 2024
(1) Real
			 property appraised under ORS
			 308.370 as land for farm use and
			 passing by reason of death, is valued for purposes of Oregon inheritance tax as
			 farm use land and the value used is the same as appraised for ad valorem
			 purposes. ORS 308.370 provides for the
			 assessment of farmland as "farm use" rather than "the highest and best use."
			 See OAR 150-118.155.
(2) For deaths
			 occurring on or after October 3, 1979, land which received special assessment
			 as forest land or land classified under the Western Oregon small tract option
			 tax law is valued as provided in ORS
			 118.155(3) and
			 (4).
(3) The valuation for Oregon inheritance tax
			 purposes may not be the same as the valuation for federal estate tax purposes.
			 The difference in values may result in a required modification under this
			 section. Federal will value the land at fair market value upon the date of
			 death of the decedent under IRC Section 1014 or the alternate valuation date
			 under IRC Section 2032.
(4) If the
			 real property is subsequently disposed of, the difference in taxable gain or
			 loss computed from the disposition using the federal valuation and the taxable
			 gain or loss that would have been computed using the valuation for Oregon
			 inheritance tax purposes, must be added to federal taxable income as gain or
			 reduction of loss. The addition to a fiduciary return is not included as part
			 of the fiduciary adjustment. It is a separate adjustment to federal net income
			 of the fiduciary. In the case of forest land and Western Oregon small tract
			 option land, the addition is applicable only to dispositions occurring on or
			 after November 1, 1981.
(5) The
			 adjustment to federal taxable income is required not only when gain or loss is
			 realized by the beneficiary on the inherited property, but is also required
			 when:
(a) Gain or loss is realized on other
			 property which, in the computation of its basis, the basis of the inherited
			 property is used. Examples of this type of property is that received as a
			 result of a fully or partially nontaxed exchange or involuntary conversion
			 where there has been a proper reinvestment.
(b) A taxpayer, other than the beneficiary,
			 may realize gain or loss on the disposition of inherited property, or property
			 the basis of which is computed in whole or in part with respect to such
			 inherited property, when the basis of the beneficiary is used. For example:
			 property under this section received as a gift from a donor who acquired it by
			 inheritance. The adjustment must be made to the donee's tax return at the time
			 the donee disposes of the property in a manner that results in a taxable event.
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 316 - PERSONAL INCOME TAX GENERAL PROVISIONS › Section 150-316-0630 - Scholarship Awards used for Housing Expenses

Current through Register Vol. 63, No. 7, July 1, 2024
(1) If a scholarship award is used to pay
			 housing expenses, the taxpayer may subtract the amount paid for such expenses
			 from federal taxable income, but not in excess of the amount of the award
			 included in federal taxable income.
(2) For purposes of ORS
			 316.846 and this rule, "housing
			 expenses" are the reasonable expenses paid or incurred during the taxable year
			 by an individual for housing for the individual. The term includes expenses
			 attributable to the housing (such as utilities and insurance) and not otherwise
			 taken into account as a deduction on the federal income tax return of the
			 individual. Housing expenses will be treated as reasonable to the extent the
			 department determines the expenses are neither lavish nor extravagant under the
			 circumstances.
Example 1
:
Jasmine, a student at Oregon State University, receives a scholarship award
			 that she includes in her federal taxable income. She buys a house close to the
			 school. She uses part of the scholarship award to pay the mortgage interest and
			 property taxes. She also uses part of the scholarship award to buy food and to
			 fix the roof. Jasmine may subtract the mortgage interest and property taxes
			 from her federal taxable income on her Oregon return if she does not claim them
			 as itemized deductions on her federal return, but not in excess of the amount
			 of the award included in federal taxable income. She may not subtract the food
			 purchases and the cost of fixing the roof.
Example 2
:
Louis, a student at
			 Portland State University, receives a scholarship award that he includes in his
			 federal taxable income. He rents an apartment with a roommate about three
			 blocks from school. In addition to the rent he is responsible for half of the
			 electric bill and for a monthly parking fee at the apartment complex. He also
			 pays for half of the monthly fee to Rent-A-Center to rent a sofa and loveseat.
			 He uses part of the scholarship award to pay for these housing expenses. Louis
			 may subtract from his federal taxable income on his Oregon return the sum of
			 his portion of the rent, his portion of the electric bill, the parking fees,
			 and his portion of the monthly fees for renting a sofa and loveseat, to the
			 extent such sum does not exceed the amount of the award included in federal
			 taxable income.
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 316 - PERSONAL INCOME TAX GENERAL PROVISIONS › Section 150-316-0635 - Subtraction for Land Contributed to Educational Institutions

Current through Register Vol. 63, No. 7, July 1, 2024
(1)
General
. A taxpayer who
			 donates land, or who sells land at less than its fair market value, to a
			 qualified educational institution may claim a subtraction from income. The
			 subtraction is limited to a specific percentage of the taxpayer's contribution
			 base. Any subtraction not allowed because it exceeds the specified percentage
			 of the contribution base may be carried forward for a maximum of 15 years. An
			 individual's contribution base is defined in section
			 170 of the Internal Revenue Code
			 as federal adjusted gross income computed without regard to any net operating
			 loss carryback.
(2)
Donations of land
. If
			 land is donated to a qualified entity, the Oregon subtraction cannot exceed 50
			 percent of the taxpayer's contribution base.
Example
			 1
:
Sandy's contribution base is $100,000. Sandy
			 donates land with a fair market value of $60,000 to a public school district.
			 Sandy's subtraction on the Oregon return is limited to $50,000.
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 316 - PERSONAL INCOME TAX GENERAL PROVISIONS › Section 150-316-0640

Current through Register Vol. 63, No. 7, July 1, 2024
Publications: Publications referenced are available from the
				  agency.
Stat. Auth.: ORS
				  305.100,
				  316.856
Stats. Implemented: ORS
				  316.856
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 316 - PERSONAL INCOME TAX GENERAL PROVISIONS › Section 150-316-0650 - Waiver of Frivolous Return Penalty Imposed Under ORS 316.992

Current through Register Vol. 63, No. 7, July 1, 2024
The department will waive 50 percent of the $250 penalty if the
				taxpayer:
(1) Submits a timely written
			 request for waiver as required in OAR 150-305.145(4);
(2) Files a return for that same tax year
			 that is not frivolous under ORS
			 316.992; and
(3) Pays the balance of the account (other
			 than the penalty amount that may be waived under this rule) for the tax period
			 for which waiver is requested, or has entered into and is in compliance with a
			 department-approved plan for payment of the amounts.
Stat. Auth.: ORS
				  305.100
Stats. Implemented: ORS
				  316.992
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 316 - PERSONAL INCOME TAX GENERAL PROVISIONS › Section 150-316-0652 - Frivolous Return Penalty

Current through Register Vol. 63, No. 7, July 1, 2024
(1) A
			 $250 penalty shall be assessed if a taxpayer takes a "frivolous position" in
			 respect to preparing the taxpayer's return. A return is considered frivolous if
			 a taxpayer does not provide information on which the substantial correctness of
			 the self-assessment may be judged or if the return contains information that on
			 its face indicates that the self-assessment is substantially
			 incorrect.
(2) Some additional
			 examples where a "frivolous position" is considered to have been taken include
			 but are not limited to:
(a) An argument that
			 wages or salary are not included in taxable income. This can occur when the
			 taxpayer alters lines on the return to recharacterize wages or salary as
			 nontaxable or takes deductions on Schedule C equal to income and characterizes
			 the deductions as the total of business expenses or cost of goods sold.
(b) An argument that the law
			 directs "taxpayers" to file a return and they aren't a taxpayer.
(c) An argument that by filing a return their
			 rights of nonself-incrimination under the Fifth Amendment to the United States
			 Constitution will be violated. An example of this is when a taxpayer writes
			 "object" or "object - self-incrimination" in the amount columns or across the
			 face of the return.
(d) An
			 argument that requiring a taxpayer to file a return violates their right to
			 prohibition of involuntary servitude provided in the Thirteenth Amendment to
			 the United States Constitution.
(e) Submitting a return that may show an
			 address, be signed and have W-2's attached but has zeros, object, Fifth
			 Amendment or self-incriminating written in the columns or on the face of the
			 return.
(f) An argument that the
			 tax system is discriminatory.
(g)
			 An argument that the taxpayer's right to free speech as provided by the First
			 Amendment to the United States Constitution has been violated by requiring a
			 return or by providing the information required on the return.
(h) An argument that a check which can only
			 be redeemed in Federal Reserve Notes is not taxable income. The taxpayer's
			 argument is that only gold and silver can be taxed and that Federal Reserve
			 Notes are not income because they can't be redeemed for gold or silver. Also,
			 that the Federal Reserve Notes should be considered accounts receivable that do
			 not have to be reported as income until they are paid in gold or silver.
(i) An argument that a graduated
			 tax is unconstitutional.
(j)
			 Taking unauthorized deductions or credits based on a percentage of the national
			 debt used for defense (war tax) or abortions.
(k) Taking unauthorized deductions or credits
			 based on the declining value of the dollar to reflect the difference between
			 the face value and the fair market value of Federal Reserve Notes.
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 317 - CORPORATION EXCISE TAX ACT OF 1929: RULES AND GENERAL PROVISIONS › Section 150-317-0010 - Procedure for Handling State Surplus Refund

Current through Register Vol. 63, No. 7, July 1, 2024
(1) For purposes of determining underpayment
			 of estimated tax for tax years beginning on or after January 1, 1985 the credit
			 allowed for the state surplus refund shall be used to reduce the amount of the
			 current year "net excise or income tax" of the taxpayer. Net excise or income
			 tax means the total tax minus any credits against tax.
(2) Whenever the taxpayer's excise or income
			 tax liability for tax years beginning on or after January 1, 1985 is either
			 increased or decreased, the amount of the credit for the state surplus refund
			 shall be adjusted accordingly.
Stat. Auth.: ORS
				  305.100
Stats. Implemented: ORS
				  317.Note
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 317 - CORPORATION EXCISE TAX ACT OF 1929: RULES AND GENERAL PROVISIONS › Section 150-317-0020 - Substantial Nexus Guidelines

Current through Register Vol. 63, No. 7, July 1, 2024
(1) The
			 State of Oregon imposes taxes on or measured by net income to the extent
			 allowed under state statutes, federal Public Law 86-272, and the Oregon and
			 U.S. Constitutions. For purposes of determining whether Oregon has jurisdiction
			 to impose an excise tax for the privilege of doing business in the state under
			 ORS Chapter 317 or tax on income from sources within this state under ORS
			 Chapter 318, there must exist a substantial nexus between the state and the
			 activity or income it seeks to tax.
(2) "Substantial nexus" for corporate excise
			 and income tax jurisdiction purposes, under the Commerce Clause of the U.S.
			 Constitution, does not require a taxpayer to have a physical presence in
			 Oregon. Substantial nexus exists where a taxpayer regularly takes advantage of
			 Oregon's economy to produce income for the taxpayer and may be established
			 through the significant economic presence of a taxpayer in the state.
(3) In determining whether a
			 taxpayer has a substantial nexus with Oregon the department may consider
			 whether the taxpayer:
(a) Maintains
			 continuous and systematic contacts with Oregon's economy or market;
(b) Conducts deliberate marketing to or
			 solicitation of Oregon customers;
(c) Files or is required to file reports or
			 returns with Oregon regulatory bodies;
(d) Receives significant gross receipts
			 attributable to customers in Oregon;
(e) Receives significant gross receipts
			 attributable to the use of taxpayer's intangible property in Oregon; or
(f) Receives benefits provided by
			 the state, such as:
(A) Laws providing
			 protection of business interests or regulating consumer credit;
(B) Access to courts and judicial process to
			 enforce business rights, including debt collection and intellectual property
			 rights;
(C) Highway or
			 transportation system access for transport of taxpayer's goods or services;
(D) Access to educated workforce
			 in Oregon; or
(E) Police and fire
			 protection for property in Oregon that displays taxpayer's intellectual or
			 intangible property.
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 317 - CORPORATION EXCISE TAX ACT OF 1929: RULES AND GENERAL PROVISIONS › Section 150-317-0030 - Definition: "Doing Business"

Current through Register Vol. 63, No. 7, July 1, 2024
(1) A
			 taxpayer is doing business when it engages in any profit-seeking activity in
			 the State of Oregon. What transaction or transactions need be entered into
			 within this state in the course of such an activity to constitute the doing or
			 carrying on of business within the state is primarily a question of fact,
			 depending upon the circumstances in each case.
Example
			 1 : The taxpayer is clearly doing business within this state if it
			 occupies, has, maintains or operates an office, shop, store, warehouse,
			 factory, agency or other place within this state where some of its affairs are
			 systematically and regularly carried on, notwithstanding the fact that it may
			 also enter into transactions outside this state.
Example 2 : A corporation engaged in the sale
			 of tangible personal property is doing business within this state if sales
			 activities are regularly carried on within this state by an employee or agent
			 of the seller, and if either a stock of goods is maintained within this state,
			 or an office or other place of business where affairs of the corporation are
			 regularly carried on is maintained within this state.
Example 3 : A foreign corporation consigns
			 goods to one or more consignees within Oregon who then sell the goods. The
			 foreign corporation is doing business in Oregon since it has sales activity and
			 a stock of goods within Oregon.
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 317 - CORPORATION EXCISE TAX ACT OF 1929: RULES AND GENERAL PROVISIONS › Section 150-317-0040 - Taxable Income of Regulated Investment Companies and Real Estate Investment Trusts

Current through Register Vol. 63, No. 7, July 1, 2024
(1) In the case
			 of a corporation that is treated for federal tax purposes as a regulated
			 investment company under IRC Section 851, for purposes of ORS
			 317.010(10)
			 taxable income under Chapter 1, Subtitle A of the Internal Revenue Code means
			 "investment company taxable income," as defined in IRC Section 852.
(2) In the case of an entity that is treated
			 for federal tax purposes as a real estate investment trust under IRC Section
			 856, for purposes of ORS
			 317.010(10)
			 taxable income under Chapter 1, Subtitle A of the Internal Revenue Code means
			 "real estate investment trust taxable income" as defined in IRC Section
			 857(b)(2), except that the adjustments provided by IRC Sections 857(b)(2)(D)
			 and (F) shall not be allowed.
Stat. Auth.: ORS
				  305.100
Stats. Implemented: ORS
				  317.010
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 317 - CORPORATION EXCISE TAX ACT OF 1929: RULES AND GENERAL PROVISIONS › Section 150-317-0050 - Foreign Corporations Subject to Tax

Current through Register Vol. 63, No. 7, July 1, 2024
(1) Generally, foreign corporations doing
			 business in Oregon that are exempt from federal income taxes pursuant to
			 treaties between the United States and a foreign country are not exempt from
			 Oregon corporation excise and income taxes.
(2) For foreign corporations to be exempt
			 from the Oregon corporation excise or income tax, the federal treaty must
			 specifically contain a provision exempting them from state corporation taxes
			 upon or measured by net income.
(3) Oregon taxable income is determined by
			 calculating the corporation's federal taxable income as if the corporation was
			 subject to federal income taxes and making certain modifications as provided by
			 Oregon law. As provided under ORS
			 317.625, income from outside the
			 United States is accounted for in the computation of Oregon taxable income
			 without regard to IRC sections 861 to 864. Income classified as income from
			 outside the United States and excluded from federal taxable income must be
			 added to the federal taxable income calculation required by this rule as an
			 "other addition."
(4) Oregon has
			 adopted the federal IRC provisions for computing taxable income, but did not
			 adopt the federal provisions that define exempt corporations. Oregon law in ORS
			 317.080 lists those corporations
			 that are exempt from Oregon corporate taxes.
Stat. Auth.: ORS
				  305.100
Stats. Implemented: ORS
				  317.010
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 317 - CORPORATION EXCISE TAX ACT OF 1929: RULES AND GENERAL PROVISIONS › Section 150-317-0060 - Capital Losses - Carrybacks and Carry-overs

Current through Register Vol. 63, No. 7, July 1, 2024
(1) Federal law applies to capital losses.
(a) Capital losses are deducted to the extent
			 of capital gains in the same tax year.
(b) Capital losses in excess of capital gains
			 must be carried back three tax years. Capital losses that do not fully offset
			 capital gains for a year to which the losses are carried back may be carried
			 forward for up to five tax years after the tax year in which the capital losses
			 were incurred.
(c) Capital loss
			 carrybacks and carryovers can only be used to reduce capital gains in the tax
			 years to which they are carried.
(d) A capital loss carryback cannot be used
			 to create or increase a net loss in the tax year to which it is
			 carried.
(e) If a capital loss is
			 not carried to tax years in the order provided in subsections (1)(b) through
			 (1)(d), the amount of net capital loss that should have been utilized to
			 decrease capital gain net income cannot be used to offset capital gains in
			 other taxable years.
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 317 - CORPORATION EXCISE TAX ACT OF 1929: RULES AND GENERAL PROVISIONS › Section 150-317-0070 - Administrative and Judicial Interpretations

Current through Register Vol. 63, No. 7, July 1, 2024
As used in ORS
				317.013(2)"administrative
				and judicial interpretations of the federal income tax law" include
				interpretive regulations promulgated by the Secretary of the Treasury, Revenue
				Rulings and Revenue Procedures issued by the Commissioner of Internal Revenue,
				and decisions of the federal courts interpreting those provisions of the
				Internal Revenue Code that are incorporated into Oregon law under ORS
				317.013(1),
				regardless of the date of promulgation or issuance of the regulation, ruling,
				procedure or decision.
Stat. Auth.: ORS
				  305.100
Stats. Implemented: ORS
				  317.013
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 317 - CORPORATION EXCISE TAX ACT OF 1929: RULES AND GENERAL PROVISIONS › Section 150-317-0080 - Adoption of Federal Law

Current through Register Vol. 63, No. 7, July 1, 2024
Generally, Oregon corporation excise tax law, as related to the
				definition of taxable income, is tied to federal tax law as applicable to the
				tax year of the taxpayer. Changes enacted to the definition of federal taxable
				income are effective for Oregon tax purposes in the same manner as for federal
				tax purposes, unless otherwise provided in Oregon tax law.
Stat. Auth.: ORS
				  305.100
Stats. Implemented: ORS
				  317.018
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 317 - CORPORATION EXCISE TAX ACT OF 1929: RULES AND GENERAL PROVISIONS › Section 150-317-0090 - Policy - Application of Various Provisions of the Federal Internal Revenue Code

Current through Register Vol. 63, No. 7, July 1, 2024
(1) The policy of
			 the State of Oregon is to follow the Internal Revenue Code as closely as
			 possible relating to the computation of taxable income of corporations. Other
			 areas, such as tax credits, special tax computations, and administrative
			 provisions are not tied to federal law because they do not relate to the
			 computation of taxable income.
(2)
			 The provisions of this rule concerning "Claim of right" apply to tax years
			 beginning before January 1, 1998. For tax years beginning on or after January
			 1, 1998, a credit is allowed to a taxpayer for a claim of right income
			 repayment under section 2, Chapter 1007, Or Laws 1999.
(3)
Claim of right:
IRC
			 section 1341 allows a deduction on the federal return for amounts repaid by a
			 taxpayer on income previously reported under a claim of right. This deduction
			 is also allowed on the Oregon return. If the amount repaid exceeds $3,000 in
			 the year of repayment, IRC section 1341 allows the taxpayer to instead use a
			 special tax computation rather than claim a deduction. If the taxpayer uses
			 this special tax computation on the federal return, the taxpayer may not make a
			 special tax computation for Oregon. However, the taxpayer may claim any
			 repayments as a subtraction on the Oregon return.
Stat. Auth.: ORS
				  305.100
Stats. Implemented: ORS
				  317.018
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 317 - CORPORATION EXCISE TAX ACT OF 1929: RULES AND GENERAL PROVISIONS › Section 150-317-0100 - Periods of Less than 12 Months Are Tax Years

Current through Register Vol. 63, No. 7, July 1, 2024
(1) Under Oregon's tie to federal accounting
			 periods, an Oregon return shall cover the same period as the corresponding
			 federal return. See also OAR 150-314.085(2).
(2) Internal Revenue Code Regulation
			 1.1502-76 provides that any period of less than 12 months for which either a
			 separate return or a consolidated return is filed shall be considered as a
			 separate taxable year.
Example:
Corporation X and its federal
				consolidated subsidiaries have a fiscal year end of June 30. On January 31,
				1989, Corporation X sold Corporation Y (one of its 100 percent owned
				subsidiaries included in its consolidated returns) to Corporation Z.
				Corporation Z has a fiscal year ending May 31, 1988 and Corporation Y is
				required to change its tax year to be the same.
Corporation Y must file two short-period returns for federal
				and Oregon tax purposes (one for July 1, 1988, through January 31, 1989, and
				another for February 1 through May 31, 1989). Each short-period return shall
				count as a tax year for purposes of net operating loss and tax credit
				carryovers. If Corporation Y was not unitary with Corporation X or Corporation
				Z, it shall file separate Oregon returns for the two periods. For tax years
				beginning before January 1, 1986, Corporation Y was allowed by the department
				to file one Oregon return with the two short-period federal returns
				attached.
Publications: Publications referenced are available from the
				  agency.
Stat. Auth.: ORS
				  305.100
Stats. Implemented: ORS
				  317.018
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 317 - CORPORATION EXCISE TAX ACT OF 1929: RULES AND GENERAL PROVISIONS › Section 150-317-0110 - Tax Reform Act of 1984 Adjustments

Current through Register Vol. 63, No. 7, July 1, 2024
The rule under OAR 150-316.021 shall be followed in determining
				how adjustments due to adoption of effective dates in the federal Tax Reform
				Act of 1984 shall be reported.
Stat. Auth.: ORS
				  305.100
Stats. Implemented: ORS
				  317.021
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 317 - CORPORATION EXCISE TAX ACT OF 1929: RULES AND GENERAL PROVISIONS › Section 150-317-0120 - Farm Capital Gain

Current through Register Vol. 63, No. 7, July 1, 2024
(1) This
			 rule is effective July 31, 2010 and applies to all tax years open to
			 examination.
(2) Definitions. For
			 purposes of ORS 317.063 and this rule:
(a) "Substantially complete termination"
			 means the taxpayer is:
(A) No longer
			 involved, directly or indirectly, in a trade or business engaged in farming, or
(B) No longer owns, directly or
			 indirectly, property used in the trade or business of farming.
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 317 - CORPORATION EXCISE TAX ACT OF 1929: RULES AND GENERAL PROVISIONS › Section 150-317-0130 - Tax on Homeowner's Association Income

Current through Register Vol. 63, No. 7, July 1, 2024
Homeowners associations, such as condominium management
				associations and residential real estate management associations, may elect to
				be treated as tax-exempt organizations for taxable years beginning on and after
				January 1, 1978. But this tax-exempt status will protect the association from
				tax only on its exempt function income, such as membership dues, fees, and
				assessments received from member-owners of residential units in the particular
				condominium or subdivision involved. The homeowners association taxable income
				will be taxed at the corporate rates provided in ORS
				317.061. To qualify for the
				election, the association must meet the following conditions:
(1) A copy of the federal Form 1120-H filed
			 with the Internal Revenue Service must be filed with the Oregon Department of
			 Revenue no later than the time prescribed by law for filing the return.
(2) It must be organized and
			 operated as provided in section
			 528(c) of the
			 Internal Revenue Code.
(3)
			 "Homeowners association taxable income" is determined pursuant to section
			 528(d) of the
			 Internal Revenue Code and pertinent federal regulations. However, net capital
			 gains shall be included in the computation of homeowners association taxable
			 income and shall receive no special treatment.
(4) "Exempt function income" is determined
			 pursuant to section 528(d) of the
			 Internal Revenue Code and pertinent federal regulations.
(5) If a homeowners association that elects
			 to be treated as a tax exempt organization has positive homeowners association
			 taxable income, it shall be reported on an Oregon Corporation Excise Tax
			 Return, Form 20 and the association is subject to the greater of the calculated
			 corporation excise tax or the minimum tax.
(6) If a homeowners association that elects
			 to be treated as a tax-exempt organization does not have positive homeowners
			 association taxable income, the association is not required to file an Oregon
			 Corporation Excise Tax Return, Form 20 and is not subject to the minimum
			 tax.
Publications: Publications referenced are available from the
				  agency pursuant to ORS
				  183.360(2) and
				  183.355(1)(b).
Stat. Auth.: ORS
				  305.100
Stats. Implemented: ORS
				  317.067
Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 317 - CORPORATION EXCISE TAX ACT OF 1929: RULES AND GENERAL PROVISIONS › Section 150-317-0140 - Imposition of the Tax: Mercantile, Manufacturing and Business Corporations

Current through Register Vol. 63, No. 7, July 1, 2024
A corporation excise tax is imposed for the privilege of doing
				business in Oregon during the year prior to that in which the tax is due and
				payable. The tax is measured by the corporation's Oregon taxable income as
				computed in accordance with the provisions of this chapter. A foreign
				corporation is authorized to do business in this state if it is qualified to do
				business here. A domestic corporation is authorized to do business if a
				certificate of incorporation has been issued to it, even though the details of
				corporate organization have not been completed and no business has been
				transacted. If a corporation is subject to Oregon jurisdiction and is a part of
				a unitary group, as defined in ORS
				317.705, the determination of
				the taxable income attributable to Oregon shall be made in accordance with ORS
				314.605 to
				314.675,
				317.705 to
				317.720, and the rules
				thereunder, although the corporation itself may be taxable only by
				Oregon.
Stat. Auth.: ORS
				  305.100
Stats. Implemented: ORS
				  317.070