Oregon Administrative Code

150-314-0321 Estimated Tax: Application of Net Loss, Annualized Income Exception 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 provi…

150-314-0323 Estimated Tax: Interest on Underpayment (1) When an estimated tax payment is underpaid, as defined in OAR 150-314-0315, interest accrues on the underpaid amount at the rate provided in OAR 150-305-0140 from the due date of the payment to the earlier of the date the t…

150-314-0325 Estimated Tax: Computation of Underpayment (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 computin…

150-314-0327 Underpayment of Estimated Tax; First and Second Installment for Large Corporations (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 u…

150-314-0335 Apportionable and Nonapportionable Income Defined (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) A…

150-314-0337 Apportionable and Nonapportionable Income; Application of Definitions (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 is applicable to tax years beginning on or af…

150-314-0339 Proration of Deductions (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 on…

150-314-0345 Apportionment and Allocation of Income Generally (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…

150-314-0347 Application of ORS 314.610 to 314.667: Allocation 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…

150-314-0349 Apportionment and Allocation for a Taxpayer Carrying on a Unitary Business 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 por…

150-314-0351 Two or More Businesses of a Single Taxpayer (1) A taxpayer may have more than one “trade or business”. In such cases, it is necessary to determine the apportionable income attributable to each separate trade or business. The income of each business is then apportione…

150-314-0353 Apportionment for Long-Term Construction Contracts (1) This rule adopts a model regulation recommended by the Multistate Tax Commission to promote uniform treatment of this item by the states. If a taxpayer elects to use the percentage of completion method of account…

150-314-0355 Special Rules: Installment Sales (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 w…

150-314-0357 Modified Factors for Motion Picture and Television Film Producers (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…

150-314-0365 Taxable in Another State; In General 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 fro…

150-314-0367 Taxable in Another State; When a Taxpayer is “Subject To” Tax Under ORS 314.620(1) (1) A taxpayer is “subject to” one of the taxes specified in ORS 314.620(1) only if it carries on business activity in such state and such state imposes such a tax thereon. Any taxpaye…

150-314-0369 Taxable in Another State; When a State has Jurisdiction to Subject a Taxpayer to a Net Income Tax 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…

150-314-0371 Taxable in Another State; Washington Business and Occupation Tax 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 no…

150-314-0380 Allocation of Interest and Dividends (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 rec…

150-314-0385 Apportionment Formula (1) All apportionable income of each trade or business of the taxpayer must be apportioned to this state by use of the apportionment formula set forth in ORS 314.650. The apportionment formula includes the property factor provided in ORS 314.655…

150-314-0390 Property Factor; In General 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. Th…

150-314-0392 Property Factor; Property Used for the Production of Apportionable Income Property is included in the property factor if it is actually used or is available for or capable of being used during the tax period in the regular course of the trade or business of the taxpa…

150-314-0394 Property Factor; Consistency in Reporting In filing returns with this state if the taxpayer departs from or modifies the manner of valuing property, or of excluding or including property in the property factor, used in returns for prior years, the taxpayer shall disc…

150-314-0396 Property Factor; Numerator The numerator of the property factor shall include the average value of the real and tangible personal property owned or rented by the taxpayer and used in this state during the tax period in the regular course of the trade or business of t…

150-314-0398 Property Factor; Valuation of Owned Property (1) Property owned by the taxpayer shall be valued at its original cost. As a general rule “original cost” is deemed to be the basis of the property for federal income tax purposes (prior to any federal adjustments) at the…

150-314-0400 Property Factor; Valuation of Rented Property (1) This rule adopts a model regulation recommended by the Multistate Tax Commission to promote uniform treatment of this item by the states. (2) Property rented by the taxpayer is valued at eight times its net annual ren…

150-314-0402 Property Factor; Timber The property factor includes all standing timber which the taxpayer owns and which is situated on land owned by the taxpayer, and includes timber which has been cut and has become a part of inventory. The factor does not include any standing t…

150-314-0404 Property Factor; Intangible Drilling Costs Intangible drilling costs incurred by oil and gas producing companies in connection with producing oil and gas properties located within a taxing jurisdiction are included in the property factor. An election to expense intan…

150-314-0406 Property Factor; Averaging Property Value (1) As a general rule the average value of property owned by the taxpayer shall be determined by averaging the values at the beginning and ending of the tax period. However, the Department may require or allow averaging by mo…

150-314-0415 Payroll Factor; In General (1) The payroll factor of the apportionment formula for each trade or business of the taxpayer includes the total amount of compensation paid by the taxpayer in the regular course of its trade or business during the tax period. (2) The tota…

150-314-0417 Payroll Factor; Numerator (1) The numerator of the payroll factor is the total amount of compensation paid in this state during the tax period by the taxpayer. The tests in subsection (2) of ORS 314.660 to be applied in determining whether compensation is paid in thi…

150-314-0425 Sales Factor; Definition of Gross Receipts (1) This rule adopts provisions of 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…

150-314-0427 Sales Factor; Numerator (1) For purposes of this rule: (a) “No activity” means that the foreign corporation has no property or employees carrying on the business of the corporation in Oregon. Telephone and catalog solicitation and delivery by common carrier of goods …

150-314-0429 Sales Factor; Sales of Tangible Personal Property in this State The rule adopts provisions of a model regulation recommended by the Multistate Tax Commission to promote uniform treatment of this item by the states. (1) For purposes of ORS 314.665 and the rules thereu…

150-314-0431 Sales Factor; Sales of Tangible Personal Property to United States Government in this State (1) Gross receipts from the sales of tangible personal property to the United States Government are in this state if the property is shipped from an office, store, warehouse, …

150-314-0435 Sales Factor; Sales Other Than Sales of Tangible Personal Property in This State (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 …

150-314-0437 Gross Receipts Related to Deferred Gain or Loss (1) In general. In all cases where gain or loss is realized for accounting purposes in the year of the associated transaction, but not fully recognized for tax purposes in that year, the total gross receipts from the tr…

150-314-0455 Modified Factors for Publishing (1) The following special rules are established with respect to the apportionment of income derived from the publishing, sale, licensing, or other distribution of books, newspapers, magazines, periodicals, trade journals, or other prin…

150-314-0460 Apportionment of Net Loss (1) When a corporation or consolidated group of corporations is taxable both within and without this state, their Oregon net loss must be computed using the apportionment provisions in ORS 314.280, or 314.610 through 314.667. (2) If a corpor…

150-314-0465 Sales Factor for Interstate Broadcasters This rule applies to tax years beginning before January 1, 2014. (1) In general, if a taxpayer broadcasts to subscribers or to an audience that is located both within and without this state and the broadcaster is taxable in an…

150-314-0466 Definition of Programming and Subscription Services (1) For purposes of Oregon Laws 2021, Chapter 74, Section 2(1)(a), broadcasting sales result from the transmission of programming in the course of “broadcasting” as defined by Oregon Laws 2021, Chapter 74, Section 2…

150-314-0470 Interstate Broadcasters: Net Income Attributable to this State (1) The allocation and apportionment provisions in ORS 314.610 to 314.667 as modified by ORS 314.684, are required for interstate broadcasters unless the application of those provisions does not fairly an…

150-314-0475 Consistent Treatment of Partnership Items (1) General Rule. (a) In general, the treatment of a partnership item on the partner’s return must be consistent with the treatment of that item by the partnership in all respects including the amount, timing, and characteriz…

150-314-0480 Publicly Traded Partnerships Taxed as Corporations (1) “Publicly traded partnership” means a partnership with interests traded on an established securities market or readily tradable on a secondary market (or its substantial equivalent), including master limited part…

150-314-0485 Partnership Information Returns (1) Partnership required to file. A partnership must file for Oregon an information return of its business activity and include other information as required by section (2) of this rule if the partnership: (a) Has income that is derive…

150-314-0487 Partnership Penalty (1) A penalty is assessable against a partnership that transacts business in Oregon, but fails to timely file a partnership return (including extensions) or fails to show the required information as defined in ORS 314.724. Under ORS 305.229, a pen…

150-314-0495 Corporation Tax Credits — Converting a C Corporation to an S Corporation Tax credits carried forward from a tax year of C corporation status are only available to offset corporate tax liabilities when S corporation status is elected. They are not available for pass t…

150-314-0497 Corporation Tax Credits — Converting an S Corporation to a C Corporation Tax credits passed through to shareholders and not used entirely to offset the shareholders’ tax liabilities in the year of pass-through shall be carried forward by the shareholders. Such unused…

150-314-0510 Definitions for Composite Tax Returns and Pass-through Entity Withholding The following definitions apply for purposes of ORS 314.775 to 314.784, this rule, and OAR 150-314-0515 to 150-314-0525: (1) “Apportionable income” means apportionable income as defined in ORS …

150-314-0515 Oregon Composite Tax Return (1) A pass-through entity (PTE) doing business in or deriving income from sources within this state is required to file an Oregon composite tax return if requested by one or more nonresident owners. (a) Computation of tax. Each PTE filing …