Oregon Administrative Code

150-317-0660 Computation of Taxable Income; Excess Loss Accounts An Oregon subtraction is allowed for the amount of excess loss account included in federal taxable income under the provisions of Treasury Regulation subsection 1.1502-19 if: (1) The losses did not offset unitary in…

150-317-0670 Application for Relief If the application of ORS 317.715 is unduly burdensome or produces an inequitable or unreasonable result, the taxpayer may request relief under this section. The request for relief must be made in writing to the Oregon Department of Revenue, Bu…

150-317-0680 Tax Imposed on Unrelated Business Income of Certain Exempt Corporations (1) ORS 317.920 to ORS 317.950 apply to those corporations which earn unrelated business income although normally exempt under ORS 317.080. (2) For purposes of ORS 317.920, the term “unrelated bu…

150-317-1000 Definition of Commercial Activity (1) “Commercial activity” means the fair market value of all amounts realized in the regular course of a taxpayer’s trade or business that meet the “transactional test” in OAR 150-314-0335(5). (2) “Amounts realized” means all items o…

150-317-1010 Substantial Nexus Guidelines for the Corporate Activity Tax (CAT) (1) For purposes of ORS 317A.116, substantial nexus exists if a connection between the person and Oregon is sufficient to establish nexus under the U.S. Constitution. (2) “Substantial nexus” for corpor…

150-317-1015 Short Tax Period Return Requirements (1)(a) “Short tax period” means a period of less than 12 months. Taxpayers that were not in existence for an entire taxable year must determine their short period under subsection (b). For all other taxpayers, the short period beg…

150-317-1020 Corporate Activity Tax Unitary Business Factors, Common Ownership and Filing Requirements for Unitary Groups (1) Definition. As used in this rule, the term “entity” or “business entity” refers to any individual or legal entity described in ORS 317A.100(14). (2) The p…

150-317-1022 Unitary Group Tax Year (1) Effective Date. The provisions of this rule apply to tax years beginning on or after January 1, 2021. (2) Annual Accounting Period. A taxpayer’s method of accounting for commercial activity, costs inputs and labor costs for a tax year shall…

150-317-1023 Unitary Group Designated Reporting Entity (1) Effective Date. The provisions of this rule apply to tax years beginning on or after January 1, 2021. (2) General Rule. Unitary groups must designate a single member of the unitary group with substantial nexus to this sta…

150-317-1025 Corporate Activity Tax: Election to Exclude Non-U.S. Members from Unitary Group (1) General Rule. For purposes of the Corporate Activity Tax (CAT), a unitary group is defined as a group of persons with more than 50 percent common ownership, either direct or indirect,…

150-317-1030 Sourcing Commercial Activity to Oregon from Sales of Tangible Personal Property (1) Definitions. (a) “Purchaser within Oregon” includes the ultimate recipient of property if the taxpayer, at the designation of the purchaser, delivers property to the ultimate recipien…

150-317-1040 Sourcing Commercial Activity to Oregon of Other than Sales of Tangible Personal Property 1) General Rule. Receipts, other than receipts from sale of tangible personal property, are sourced to Oregon under ORS 317A.128, section (1)(a), (b), (d), and (e), as described …

150-317-1050 Sourcing of Commercial Activity for Financial Institutions in This State (1) General Rule. Commercial activity for financial institutions is sourced to this state if it is from business conducted in this state. Commercial activity for financial institutions is the it…

150-317-1060 Definition of Insurers’ Gross Premiums Receipts (1) For purposes of determining an insurer’s commercial activity subject to the Corporate Activity Tax, “insurance premiums” are the following premiums received by an insurer, unless otherwise excluded under ORS 317A.10…

150-317-1070 Sourcing of Motor Carrier Transportation Services (1) Definitions. For purposes of this rule, the following definitions apply: (a) “Highway” means any road, street, or way, whether on public or private property, open to public travel. “Open to public travel” means th…

150-317-1080 Sourcing of Rail Carrier Transportation Services (1) Definition. For purposes of this rule, “rail carrier” means a person providing railroad transportation of persons or property for compensation. (2) In General. Amounts realized from rail carrier transportation serv…

150-317-1090 Sourcing of Sea Transportation Services (1) Sea transportation services within this rule include the activities of steamship companies substantially engaged in interstate or international commerce which derive receipts within and partly from sources without the state…

150-317-1095 Sourcing of River Transportation Services (1) The Oregon commercial activity of a taxpayer involved in river transportation services during the tax period must be determined pursuant to ORS 317A.128 except as modified by this rule. (2) Receipts derived from interstat…

150-317-1100 Agent Exclusion (1) “Agent” means a person who is acting on behalf of another and is subject to that other person’s control. (2) All facts and circumstances must be considered to determine if a person is an agent. (3) An agent may exclude the fair market value of pro…

150-317-1120 Exclusion for subcontracting payments (1) Definition. For the purposes of ORS 317A.122, single-family residential construction means the construction of new single-family housing such as single-family detached or semidetached houses and townhouses or row houses where…

150-317-1130 Property Brought into Oregon (1) ORS 317A.109 requires a person or unitary group to include the value of property transferred into Oregon for use in the business of the person or unitary group if: (a) The person or unitary group received the property outside Oregon a…

150-317-1140 Wholesale Sale of Groceries Exclusion (1) Definitions. (a) “Processing” means transforming or changing the physical characteristics of an item, including incorporation or consumption of an item as an ingredient or component in the production or manufacture of another…

150-317-1150 Retail Sale of Groceries Exclusion (1) Definitions. For purposes of this rule, the following definitions apply: (a) “Store” means the location from which a taxpayer sells goods at retail to the final consumer for home consumption. “Store” includes both physical locat…

150-317-1160 Farmer’s Sales to Agricultural Cooperatives (1) For purposes of the exclusion provided under ORS 317A.100(1)(b)(TT), “farmer’s sales” means a taxpayer’s receipts from the sale of agricultural commodities, livestock, poultry, dairy products, and similar products or by…

150-317-1170 Farming Operations: Clarifying Definitions for Agricultural Commodities, Farming Operations, Out of State Sales Based on Industry Averages (1)(a) General rule: A taxpayer that is engaged in a farming operation, as defined in ORS 317A.102(1)(c), that sells agricultura…

150-317-1180 Eligible Pharmacy Exclusion (1) Definitions. For purposes of excluding receipts from the sales of prescription drugs from commercial activity, as provided under ORS 317A.123, the following definitions apply: (a) “Common ownership” has the meaning given that term in O…

150-317-1185 Definition of Precious Metal Dealer (1) A “dealer of precious metal” means a person or business engaged in the business of buying items of precious metal for the purpose of reselling such metal, regardless of its form. Statutory/Other Authority: ORS 305.100 & 317A.14…

150-317-1200 Cost Input or Labor Cost Subtraction (1) The subtraction provided in ORS 317A.119 includes all labor costs or cost inputs of a taxpayer, whichever is greater, regardless of the place the labor cost or cost input is incurred, except for cost inputs or labor costs that…

150-317-1220 Employee Compensation: Labor Cost Subtraction (1) Definitions. For purposes of the labor cost subtraction, as calculated under OAR 150-317-1200: (a) “Employee” has the meaning given that term in OAR 150-316-0255(5). “Employee” does not include: (A) Partners in a part…

150-317-1300 Estimated Tax: When Estimated Payments Are Required (1) Estimated tax liability means the tax as computed under ORS chapter 317A, less allowable credits. (2) Every person required to file an Oregon Corporate Activity Tax (CAT) return and expecting to have a tax liabi…

150-317-1310 Estimated Tax Payments: Delinquent or Underestimated Payment or Both, Constitutes Underpayment (1) An underpayment of Corporate Activity Tax (CAT) estimated tax exists when the payments received on or before a payment due date are less than the required installment d…

150-317-1320 Estimated Tax: Unitary Groups and Apportioned Returns (1) If two or more entities file a single Corporate Activity Tax (CAT) return as a unitary group, as described in ORS 317A.100(20), each shall be jointly and severally liable for the filing and payment of the esti…

150-317-1330 Extension of Time to File (1) Definition. (a) For purposes of this rule, “good cause” means: (A) Death or serious illness of the taxpayer or a member of the taxpayer’s immediate family; (B) Destruction by fire, a natural disaster, or other casualty of the taxpayer’s …

150-317-1400 Determining Property Resold Out of State, and Methods of Determining (1) Out-of-State Resale Certificate. A wholesaler purchasing property for the purpose of resale may, at the time the purchase is made, provide the seller of the property with an out-of-state resale …

150-317-1410 Motor Vehicle Resale Certificate – Documentation Required (1) Definition. For the purposes of this rule, “new vehicle” has the definition given to it in 15 U.S.C. Section 2821(8). (2) Receipts from the sale or transfer of a motor vehicle between motor vehicle dealers…

150-317-1420 Damages Received as the Result of Litigation (1) Damages, including settlement proceeds, received by a taxpayer as a result of litigation are commercial activity to the extent they reimburse the taxpayer for transactions and activity during the regular course of the …

150-317-1500 Good Faith Effort (1) Good Faith Effort. A taxpayer’s good faith effort to comply with ORS 317A.137(2) is demonstrated by the extent of the taxpayer’s efforts to accurately estimate and pay the quarterly installment as required under ORS 317A, and OARs 150-317-1300, …

150-318-0010 Incorporation by Reference of Rules of ORS Chapters 314, 316 and 317 So far as they may be pertinent, the rules approved by the Department of Revenue pertaining to ORS Chapter 314, Income Taxation generally, and to ORS Chapter 317, The Corporation Excise Tax Act of 1…

150-318-0020 Effective Date of Act ORS Chapter 318 became law on August 3, 1955. Statutory/Other Authority: ORS 305.100 Statutes/Other Implemented: ORS 318.010 History: Renumbered from 150-318.010, REV 52-2016, f. 8-13-16, cert. ef. 9-1-16 1955

150-318-0030 Relation of Act to ORS Chapter 317 If a corporation is “doing business” in Oregon and is therefore subject to ORS Chapter 317, The Corporation Excise Tax Act of 1929, the income taxed under Chapter 317 is not subject to taxation under ORS Chapter 318. A foreign or do…

150-318-0040 Income Subject to Tax Under ORS Chapter 318 (1) The Oregon Corporation Income Tax is imposed on corporations with income derived from sources within this state. The term “income derived from sources within this state” means income from activities in this state that a…

150-318-0050 U.S. Government Obligations According to Title 31, United States Code, section 3124, interest and dividend income from obligations of the federal government are exempt from state income tax. Oregon Administrative Rule 150-316-0509 identifies the types of income that …

150-320-0012 Location of Amusement Devices (1) For purposes of the increased tax on amusement devices imposed under ORS 320.012, the increased tax is imposed for each device present at a location as of the date the applicable net receipts threshold is reached under either ORS 320…

150-320-0030 Waiver of Penalty The provisions of OAR 150-305-0068 shall be followed to determine when the department may waive a penalty charged for failure to file or pay tax by the due date. Statutory/Other Authority: ORS 305.100 & 320.110 Statutes/Other Implemented: ORS 320.07…

150-320-0040 State Lodging Tax (1) Definitions. For purposes of ORS 320.305 and 320.308 and the rules thereunder: (a) The definitions contained in ORS 320.300 are incorporated herein and made a part of this rule. (b) “Managing agent” means a person that: (A) facilitates the renta…

150-320-0041 Liability for Unpaid State Lodging Taxes (1) For purposes of this rule, “transient lodging tax collector” has the meaning given under ORS 320.300 and includes, but is not limited to, an officer, member, or employee of the transient lodging tax collector that provides…

150-320-0050 State Lodging Tax Exemptions (1) The following are exempt from the state lodging tax: (a) Health care facilities certified, licensed or registered by the Department of Human Services. (b) Drug and alcohol abuse and mental health treatment facilities. (c) All dwelling…