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 1929, are incorporated herein by reference and made applicable to like sections of ORS Chapter 318.

Statutory/Other Authority: ORS 305.100
Statutes/Other Implemented: ORS 318.031
History:
Renumbered from 150-318.000, REV 52-2016, f. 8-13-16, cert. ef. 9-1-16
1-69
1-65
1955

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 domestic corporation which is authorized to do business within this state, having qualified with the Corporation Commissioner, which is not “doing business,” but nevertheless receives income ascribable to Oregon, is subject to ORS Chapter 318. There is no provision for election as to which Act is applicable as to what income; the facts will govern in each instance.

Statutory/Other Authority: ORS 305.100
Statutes/Other Implemented: ORS 318.020
History:
Renumbered from 150-318.020(1), REV 52-2016, f. 8-13-16, cert. ef. 9-1-16
1-65
1955

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 are insufficient to constitute “doing business.” “Doing business” is defined in ORS 317.010(4).

(2) Oregon’s jurisdiction to tax is limited by the Due Process Clause of the U.S. Constitution, which requires the existence of some minimum connection between the state and the person, property or transaction it seeks to tax. This minimum connection, making income subject to the Oregon income tax, may be satisfied by:

(a) Maintaining tangible or intangible property in Oregon;

(b) Entering into franchising or licensing agreements for use of a franchise or license in Oregon;

(c) Receiving franchise fees or royalties from Oregon sources;

(d) Selling or otherwise disposing of a franchise or license used in Oregon;

(e) Selling or otherwise transferring tangible personal property pursuant to a franchise or license to a franchisee or licensee within the state; or

(f) An isolated sale of real property in this state.

(3) A corporation with receipts from royalties or franchise fees or the sale or transfer of tangible personal property pursuant to franchise or license agreements may be subject to the Corporation Excise Tax if the corporation engages in activities that rise to the level of doing business in Oregon. Such activities include inspection of the franchisees’ businesses or records and providing training in Oregon to franchisees. Such a corporation is not subject to the Corporation Income Tax.

Statutory/Other Authority: ORS 305.100
Statutes/Other Implemented: ORS 318.020
History:
Renumbered from 150-318.020(2), REV 52-2016, f. 8-13-16, cert. ef. 9-1-16
REV 11-2006, f. 12-27-06, cert. ef. 1-1-07
REV 2-2003, f. & cert. ef. 7-31-03
REV 7-1998, f. 11-13-98, cert. ef. 12-31-98
RD 7-1989, f. 12-18-89, cert. ef. 12-31-89
RD 7-1983, f. 12-20-83, cert. ef. 12-31-83
1-65
1955

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 qualify and do not qualify for a subtraction from Oregon taxable income.

Statutory/Other Authority: ORS 305.100
Statutes/Other Implemented: ORS 318.060
History:
Renumbered from 150-318.060, REV 52-2016, f. 8-13-16, cert. ef. 9-1-16
REV 11-2006, f. 12-27-06, cert. ef. 1-1-07