Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 314 - INCOME TAXATION GENERALLY GENERAL PROVISIONS › Section 150-314-0084 - Modified Factors for Companies Involved in Interstate River Transportation Service

Current through Register Vol. 63, No. 7, July 1, 2024
(1) A taxpayer
			 involved in interstate river transportation will calculate its Oregon income
			 under the provisions of ORS
			 314.610 to
			 314.665 except as modified by
			 this rule. Apportionable income is apportioned to this state by the formula
			 provided in ORS 314.650 as it applies to the tax
			 year involved. For tax years beginning on or after July 1, 2005, ORS
			 314.650 provides for
			 apportionment using only the sales factor.
(2) Sales factor. The sales factor is a
			 fraction. The denominator of this factor includes all sales. The numerator of
			 this factor includes all sales not derived from interstate river
			 transportation, assigned to this state in accordance with ORS
			 314.665. The numerator also
			 includes all sales derived from vessels engaged in river transportation between
			 Oregon and other states as is determined by applying the Oregon Interstate
			 Mobile Allocation Formula (IMAF).
(3) Payroll factor. The payroll factor is a
			 fraction. The denominator is the amount of all compensation paid to officers
			 and employees, including personnel engaged in river transportation. The
			 numerator of this factor includes all compensation paid to officers and
			 employees not engaged in interstate river transportation, assigned to this
			 state in accordance with ORS
			 314.660. The numerator also
			 includes so much of the compensation to personnel engaged in river
			 transportation between Oregon and other states as is determined by applying the
			 Oregon IMAF.
(4) Property factor.
			 The property factor is a fraction. The denominator includes the value of all
			 real and tangible personal property, including vessels owned, rented, or leased
			 by the taxpayer and used in the business. The numerator of this factor includes
			 all real and personal property owned, rented, or leased by the taxpayer and
			 used in the business to the extent such assets are located in the state. The
			 numerator also includes so much of the value of vessels engaged in river
			 transportation between Oregon and other states and used in the business as is
			 determined by applying the Oregon IMAF. The value of vessels used in the
			 business but not owned by the user is the same as their value for insurance
			 purposes. Property rented by the taxpayer is valued at eight times its net
			 annual rental rate as set out in ORS
			 314.655 and OAR
			 150-314-0400.
(5) For purposes of
			 this rule, the Oregon IMAF is the average of two factors. The two factors are
			 the originating and terminating tons factor and the ton-miles factor. For
			 purposes of computing both factors, only mileage and tonnage from those vessels
			 that operate on some portion of a river that constitutes the border between
			 Oregon and other states is included in the computation. For example: The
			 ton-miles generated by vessels operating on the Mississippi River or
			 exclusively on the Willamette River would not be included in the computation.
(a) The originating and terminating tons
			 factor is a fraction. The denominator is the total number of tons handled by
			 the vessels engaged in river transportation between Oregon and other states.
			 The numerator is the number of tons assigned to Oregon. The tons attributed to
			 a voyage from one Oregon port to another Oregon port are credited wholly to
			 Oregon. The tons attributed to a voyage between ports in different states are
			 credited equally to the two states. For this purpose each trip between two
			 ports of call is treated as a separate voyage even though the cargo may be
			 scheduled for later movement to one or more ports.
(b) The ton-miles factor is a fraction. The
			 denominator is the total number of ton-miles generated by the vessels engaged
			 in river transportation between Oregon and other states. The numerator of the
			 fraction consists of those ton-miles assignable to Oregon. Ton-miles generated
			 on the Willamette are credited wholly to Oregon. Ton-miles generated on that
			 part of the Columbia above mile 309 are credited wholly to Washington. One-half
			 of those ton-miles generated on the portion of a river that forms the boundary
			 between Oregon and another state are credited to Oregon. Ton-miles are figured
			 by multiplying tons carried for each movement by miles traveled.
Example 1
:
[See PDF link
			 below.]