Department of Revenue
Chapter 150
Division 317
CORPORATION EXCISE TAX ACT OF 1929: RULES AND GENERAL PROVISIONS
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 and transferred it into Oregon for use in the business of the person or unitary group within one year of receiving it outside Oregon, and
(b) The receipt of the property outside Oregon and its subsequent transfer into Oregon was intended, in whole or in part, to avoid the Corporate Activity Tax (CAT).
(2) A person or unitary group who intended to avoid the CAT must include the fair market value of property transferred into Oregon in their taxable commercial activity for the tax year the property was transferred into Oregon.
(3) Section (2) of this rule does not apply to the extent the sale of the property transferred into Oregon is excluded from the definition of commercial activity by law.
Example: Unitary group XYZ purchases motor vehicle fuel in Idaho on January 15, 2020 and transfers the motor vehicle fuel to Oregon on January 18, 2020. Unitary group XYZ would not include the fair market value of the motor vehicle fuel in their Oregon commercial activity because commercial activity excludes receipts from the sale of motor vehicle fuel.
(4) A person or unitary group should not include in their taxable commercial activity the fair market value of property transferred into Oregon within a year of receipt outside Oregon if the transfer of property into Oregon within a year of receipt outside Oregon was not intended to avoid the CAT in whole or in part.
(5) A person or unitary group who omits from commercial activity the fair market value of property transferred into Oregon within a year of receipt outside Oregon is required to include the fair market value upon a showing by the department that the taxpayer intended to avoid the CAT in whole or in part.
Statutory/Other Authority: ORS 305.100, 317A.109 & 317A.143
Statutes/Other Implemented: ORS 317A.109
History:
REV 11-2020, adopt filed 06/24/2020, effective 06/28/2020
REV 1-2020, temporary adopt filed 01/03/2020, effective 01/03/2020 through 06/28/2020
REV 15-2019, temporary adopt filed 12/30/2019, effective 01/01/2020 through 06/28/2020