Title 29, Revenue and Taxation

(1)(a) For purposes of ORS chapter 316, returns shall be filed with the Department of Revenue on or before the due date of the corresponding federal return for the tax year as prescribed under the Internal Revenue Code and the regulations adopted pursuant thereto. (b) For purpose…

(1) The tax shall be paid to the Department of Revenue at the time fixed by ORS 314.385 for filing the return without regard to extensions. (2) When the time for filing a return of income is extended at the request of the taxpayer, interest at the rate established under ORS 305.2…

The tax may be paid with uncertified check under any rules as the Department of Revenue shall adopt, but if a check so received is not paid by the financial institution on which it is drawn, the taxpayer by whom the check is tendered remains liable for the payment of the tax and …

(1) If a taxpayer fails to file a report or return or fails to pay a tax by the date on which the filing or payment is due, the Department of Revenue shall add to the amount required to be shown as tax on the report or return a delinquency penalty of five percent of the amount of…

Notwithstanding ORS 314.395 and 314.400, if the balance of tax due as shown on the report or return filed by the taxpayer for the tax year is less than $1, payment of the amount shown shall not be required. [1999 c.73 §2]

(1) If the Department of Revenue determines that there is a substantial understatement of net tax for any tax year under any law imposing a tax on or measured by net income, there shall be added to the amount of tax required to be shown on the return a penalty equal to 20 percent…

(1) If a taxpayer has a listed transaction understatement for a tax year, there shall be added to the tax liability of the taxpayer for the tax year a penalty equal to 60 percent of the amount of the understatement. (2) The penalty imposed under this section applies to listed tra…

(1) If a taxpayer fails to report to the Department of Revenue a reportable transaction as required by ORS 314.308, there shall be added to the tax liability of the taxpayer for the tax year a penalty as follows: (a) Individual taxpayers, $3,300. (b) Corporation taxpayers, $16,70…

(1) A penalty shall be imposed on a person who promotes a tax shelter if: (a) The person is or would be subject to a penalty for promoting an abusive tax shelter under section 6700 of the Internal Revenue Code; and (b) The tax shelter satisfies any of the following conditions: (A…

For the purposes of this section and ORS 314.417 to 314.423: (1) In the case of a return submitted to the Department of Revenue with payment of less than the amount of tax computed to be due, the difference between the tax computed to be owing by the taxpayer and the tax submitte…

(1) At any time within three years after the return was filed, the Department of Revenue may give notice of deficiency as prescribed in ORS 305.265. (2) If the department finds that gross income equal to 25 percent or more of the gross income reported has been omitted from the ta…

Notwithstanding ORS 314.410, the period for issuing any notice of deficiency attributable to any part of the gain realized upon an involuntary conversion as provided in the federal Internal Revenue Code which applies to the Personal Income Tax Act of 1969 or as provided in the co…

(1) If the Department of Revenue determines pursuant to ORS 305.270 that the amount of the tax due is less than the amount theretofore paid, the excess shall be refunded by the department with interest at the rate established under ORS 305.220 for a period beginning 45 days after…

If any person neglects or refuses to pay an income tax at the time of assessment, or fails to pay to the Department of Revenue any amount required to be withheld under ORS 316.167 and 316.172, the amount of the unpaid tax including interest and penalty thereon shall be a lien in …

In addition to any other remedy provided by law the lien created by ORS 314.417 may be foreclosed in the following manner: (1) The Director of the Department of Revenue shall issue an order directed to the sheriff of the county in which the property or interest in property subjec…

The lien imposed by ORS 314.417 shall not be valid as against any purchaser, holder of a security interest, mechanic’s lienor or judgment creditor until a warrant is issued and recorded under ORS 314.430. [1971 c.215 §5; 1987 c.586 §40]

(1) After a warrant has been recorded under ORS 314.430, the lien imposed by ORS 314.417 shall be subordinate to: (a) Any interest in real property to the same extent that a judgment recorded in the County Clerk Lien Record under ORS 18.152 at the same time the warrant was record…

(1) The Department of Revenue, for the purpose of ascertaining the correctness of any return or for the purpose of making an estimate of the taxable income of any taxpayer, may examine or cause to be examined by an agent or representative designated by it for the purpose, any boo…

(1) If any tax imposed under ORS chapter 118, 316, 317 or 318 or any portion of the tax is not paid within 30 days after the date that the written notice and demand for payment required under ORS 305.895 is mailed (or within five days after the tax becomes due, in the case of the…

(1) Every tax imposed by any law imposing a tax upon or measured by net income, and all increases, interest and penalties thereon shall become, from the time such liability is incurred, a personal debt, due the State of Oregon, from the person or persons liable therefor. (2) If t…

The provisions of ORS chapter 305 as to the audit and examination of reports and returns, determination of deficiencies, assessments, claims for refund, conferences and appeals to the Oregon Tax Court, and the procedures relating thereto, shall apply to the determination of taxes…

Moneys collected under ORS 314.406 shall be considered net revenue from the tax imposed under ORS chapter 316 for purposes of ORS 316.502. [2007 c.568 §13]

(1) Every corporation expecting to have a tax liability under either ORS chapter 317 or 318 of $500 or more shall make an estimate of tax liability for the corporation’s tax year and pay the amount of tax determined as provided in ORS 314.515. (2) The Department of Revenue shall …

(1) A corporation required under ORS 314.505 to make payments of estimated tax shall make the payments to the Department of Revenue in installments as follows: (a) One-quarter or more of the estimated tax shall be paid on or before the 15th day of the fourth month of the taxable …

(1) A corporation required to make a payment of estimated tax under ORS 314.505 to 314.525 shall make the payment by means of electronic funds transfer if: (a) For payment periods beginning on or after July 1, 2001, and before January 1, 2002, the corporation’s annual total amoun…

ORS 314.505, 314.518 and 316.198 do not alter the authority under ORS 293.525 of a state agency to require by rule that certain payments to the agency be made by electronic funds transfer. [1997 c.299 §6; 2001 c.114 §39; 2005 c.28 §2] Note: 314.520 was enacted into law by the Leg…

(1) An underpayment of estimated tax under ORS 314.505 to 314.525 will be considered to have occurred if the estimated tax is not paid as required. (2) Notwithstanding subsection (1) of this section, there shall be no underpayment of estimated tax if the estimated tax paid equals…

(1) ORS 314.605 to 314.675 may be cited as the Uniform Division of Income for Tax Purposes Act. (2) ORS 314.610 to 314.667 shall be so construed as to effectuate its general purpose to make uniform the law of those states which enact it. [1965 c.152 §§20,21]

In any case in which the provisions of ORS 314.605 to 314.675 are inconsistent with the provisions of ORS 305.653, the provisions of ORS 314.605 to 314.675 shall control. [1993 c.726 §20; 2013 c.407 §3]

As used in ORS 314.605 to 314.675, unless the context otherwise requires: (1) “Apportionable income” means: (a)(A) Income arising from transactions and activity in the regular course of the taxpayer’s trade or business; (B) Income arising from the acquisition, management, employm…

Any taxpayer having income from business activity which is taxable both within and without this state, other than activity as a financial institution or public utility or the rendering of purely personal services by an individual, shall allocate and apportion the net income of th…

For purposes of allocation and apportionment of income under ORS 314.280 and 314.605 to 314.675, a taxpayer is taxable in another state if: (1) In that state the taxpayer is subject to a net income tax, a franchise tax measured by net income, a franchise tax for the privilege of …

Rents and royalties from real or tangible personal property, capital gains, interest, dividends, patent or copyright royalties, or prizes awarded by the Oregon State Lottery, to the extent that they constitute nonapportionable income, shall be allocated as provided in ORS 314.625…

(1) Net rents and royalties from real property located in this state are allocable to this state. (2) Net rents and royalties from tangible personal property are allocable to this state (a) if and to the extent that the property is utilized in this state, or (b) in their entirety…

(1) Capital gains and losses from sales of real property located in this state are allocable to this state. (2) Capital gains and losses from sales of tangible personal property are allocable to this state if (a) the property had a situs in this state at the time of the sale, or …

Interest and dividends are allocable to this state if the taxpayer’s commercial domicile is in this state. [1965 c.152 §8]

(1) Prizes awarded by the Oregon State Lottery are allocable to this state. (2) A prize awarded by a multistate lottery association of which the Oregon State Lottery is a member is allocable to this state if the ticket upon which the prize is awarded was sold in this state. [1999…

(1) Patent and copyright royalties are allocable to this state (a) if and to the extent that the patent or copyright is utilized by the payer in this state, or (b) if and to the extent that the patent or copyright is utilized by the payer in a state in which the taxpayer is not t…

The Legislative Assembly finds and declares it to be the policy of this state to carry out a comprehensive review of income apportionment whenever federal legislation changes the nexus standard for state imposition of taxes based on business activity within state borders. [2001 c…

All apportionable income shall be apportioned to this state by multiplying the income by the sales factor. [1965 c.152 §10; 1989 c.626 §5; 1989 c.1088 §1; 1995 c.79 §156; 2001 c.793 §1; 2003 c.739 §§1,5; 2005 c.832 §§48,49; 2009 c.842 §1; 2017 c.43 §4]

(1) For purposes of ORS 317.391, the property factor is a fraction, the numerator of which is the average value of the taxpayer’s real and tangible personal property owned or rented and used in this state during the tax period and the denominator of which is the average value of …

(1) For purposes of ORS 317.391, the payroll factor is a fraction, the numerator of which is the total amount paid in this state during the tax period by the taxpayer for compensation, and the denominator of which is the total compensation paid everywhere during the tax period. (…

(1) As used in ORS 314.650, the sales factor is a fraction, the numerator of which is the total sales of the taxpayer in this state during the tax period, and the denominator of which is the total sales of the taxpayer everywhere during the tax period. (2) Sales of tangible perso…

(1) A taxpayer’s market for sales is in this state: (a) In the case of the sale, rental, lease or license of real property, if and to the extent the property is located in this state. (b) In the case of the rental, lease or license of tangible personal property, if and to the ext…

(1) If the application of the allocation and apportionment provisions of ORS 314.605 to 314.675 do not fairly represent the extent of the taxpayer’s business activity in this state, the taxpayer may petition for and the Department of Revenue may permit, or the department may requ…

As used in ORS 314.668 to 314.673: (1) “Actual cost” means the costs of labor, materials, supplies, equipment rental, real or personal property acquisition, permits, engineering, financing, required fees, insurance, administration, accounting, maintenance, repair or replacement a…