OAR 150-314-0076
Modified Factors for Carriers of Freight or Passengers: Special Rules — Railroads

(1)

In General. Where a railroad has income from sources both within and without this state, the amount of apportionable income from sources within this state must be determined pursuant to ORS 314.610 (Definitions for ORS 314.605 to 314.675) to 314.665 (Determination of sales factor) except as modified by this rule. In such cases, the first step is to determine what portion of the railroad’s income constitutes apportionable income and which portion constitutes nonapportionable income under ORS 314.610 (Definitions for ORS 314.605 to 314.675) and OAR 150-314-0335 (Apportionable and Nonapportionable Income Defined) and 150-314-0337 (Apportionable and Nonapportionable Income; Application of Definitions). Nonapportionable income is directly allocable to specific states under ORS 314.625 (Certain nonapportionable income to be allocated) to 314.645 (Allocation to this state of patent and copyright royalties). Apportionable income is apportioned among the states in which the business is conducted pursuant to the property, payroll, and sales apportionment factors set forth in this rule. The sum of (1) the items of nonapportionable income directly allocated to this state, plus (2) the amount of apportionable income attributable to this state constitutes the amount of the taxpayer’s entire net income which is subject to tax by this state.

(2)

Apportionable and Nonapportionable Income. For definitions, rules, and examples for determining apportionable and nonapportionable income, see OAR 150-314-0335 (Apportionable and Nonapportionable Income Defined) and 150-314-0337 (Apportionable and Nonapportionable Income; Application of Definitions).

(3)

Apportionment of Apportionable Income. Apportionable income is apportioned to this state by use of the formula provided in ORS 314.650 (Apportionment of income) as it applies to the tax year involved. For tax years beginning on or after July 1, 2005, ORS 314.650 (Apportionment of income) provides for apportionment using only the sales factor.

(a)

In General. The property factor must be determined in accordance with ORS 314.655 (Determination of property factor), the payroll factor in accordance with ORS 314.660 (Determination of payroll factor), and the sales factor in accordance with ORS 314.665 (Determination of sales factor), except as modified in this rule.

(b)

The Property Factor.

(A)

Property Valuation. Owned property is valued at its original cost and property rented from others is to be valued at eight (8) times the net annual rental rate in accordance with ORS 314.655 (Determination of property factor) and OAR 150-314-0400 (Property Factor; Valuation of Rented Property). Railroad cars owned and operated by other railroads and temporarily used by the taxpayer in its business and for which a per diem or mileage charge is made are not included in the property factor as rented property. Railroad cars owned and operated by the taxpayer and temporarily used by other railroads in their business and for which a per diem charge is made by the taxpayer are included in the property factor of the taxpayer.

(B)

General Definitions. The following definitions are applicable to the numerator and denominator of the property factor:
(i)
“Original cost” is deemed to be the basis of the property for federal income tax purposes (prior to any federal income tax adjustments except for subsequent capital additions, improvements thereto or partial dispositions); or, if the property has no such basis, the valuation of such property for Interstate Commerce Commission purposes. If the original cost of property is unascertainable under the foregoing valuation standards, the property is included in the property factor at its fair market value as of the date of acquisition by the taxpayer. (OAR 150-314-0398 (Property Factor; Valuation of Owned Property))
(ii)
“Rent” does not include the per diem and mileage charges paid by the taxpayer for the temporary use of railroad cars owned or operated by another railroad.
(iii)
The “value” of owned real and tangible personal property means its original cost. (ORS 314.655 (Determination of property factor) and OAR 150-314-0398 (Property Factor; Valuation of Owned Property))
(iv)
“Average value” of property means the amount determined by averaging the values at the beginning and ending of the tax period, but the department may require the averaging of monthly values during the tax period or such averaging as necessary to properly reflect the average value of the railroad’s property. (ORS 314.655 (Determination of property factor) and OAR 150-314-0406 (Property Factor; Averaging Property Value))
(v)
The “value” of rented real and tangible personal property means the product of eight (8) times the net annual rental rate. (ORS 314.655 (Determination of property factor) and OAR 150-314-0400 (Property Factor; Valuation of Rented Property))
(vi)
“Net annual rental rate” means the annual rental rate paid by the taxpayer less any annual rental rate received by the taxpayer from subrentals.
(vii)
“Property used during the tax period” includes property which is available for use in the taxpayer’s trade or business during the tax period.
(viii)
A “locomotive-mile” is the movement of a locomotive (a self-propelled unit of equipment designed solely for moving other equipment) a distance of one mile under its own power.
(ix)
A “car-mile” is a movement of a loaded or unloaded unit of car equipment a distance of one mile.

(C)

The Denominator and Numerator of the Property Factor. The denominator of the property factor is the average value of all of the taxpayer’s real and tangible personal property owned or rented and used during the tax period. The numerator of the property factor 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. In determining the numerator of the property factor, all property except mobile or movable property such as passenger cars, freight cars, locomotives, and freight containers which are located within and without this state during the tax period is included in the numerator of the property factor in accordance with ORS 314.655 (Determination of property factor) and OAR 150-314-0396 (Property Factor; Numerator). Mobile or movable property such as passenger cars, freight cars, locomotives, and freight containers which are located within and without this state during the tax period is included in the numerator of the property factor in the ratio which “locomotive-miles” and “car-miles” in the state bear to the total everywhere.

(c)

The Payroll Factor. The denominator of the payroll factor is the total compensation paid everywhere by the taxpayer during the tax period for the production of apportionable income (ORS 314.660 (Determination of payroll factor) and OAR 150-314-0415 (Payroll Factor; In General)). The numerator of the payroll factor is the total amount paid in this state during the tax period by the taxpayer for compensation. With respect to all personnel except the engine crew and train crew performing services on interstate trains, compensation paid to such employees is included in the numerator as provided in ORS 314.660 (Determination of payroll factor) and OAR 150-314-0417 (Payroll Factor; Numerator). With respect to the engine crew and train crew performing services on interstate trains, compensation paid to such employees is included in the numerator of the payroll factor in the ratio which their services performed in this state bear to their services performed everywhere. Compensation for services performed in this state is deemed to be the compensation reported or required to be reported by such employees for determination of their income tax liability to this state.

(d)

The Sales Factor.

(A)

In General. All sales derived from transactions and activities in the regular course of the trade or business of the taxpayer which produces apportionable income are included in the denominator of the sales factor. (ORS 314.665 (Determination of sales factor) and OAR 150-314-0425 (Sales Factor; Definition of Gross Receipts)) Per diem and mileage charges that are collected by the taxpayer are excluded from both the numerator and denominator of the sales factor. The numerator of the sales factor is the total sales of the taxpayer in this state during the tax period. The total sales of the taxpayer in this state during the tax period, other than sales from hauling freight, passengers, mail, and express, are attributable to this state in accordance with ORS 314.665 (Determination of sales factor) and OAR 150-314-0429 (Sales Factor; Sales of Tangible Personal Property in this State).

(B)

Numerator of Sales Factor from Freight, Mail, and Express. The total sales of the taxpayer in this state during the tax period for the numerator of the sales factor from hauling freight, mail, and express are attributable to this state as follows:
(i)
All sales from shipments which both originate and terminate within this state; and
(ii)
That portion of the sales from each movement or shipment passing through, into, or out of this state is determined by the ratio which the miles traveled by such movement or shipment in this state bears to the total miles traveled by such movement or shipment from point of origin to destination.

(C)

Numerator of Sales Factor from Passengers. The numerator of the sales factor includes:
(i)
All sales from the transportation of passengers (including mail and express handled in passenger services) which both originate and terminate within this state; and
(ii)
That portion of sales from the transportation of interstate passengers (including mail and express handled in passenger service) determined by the ratio which revenue passenger miles in this state bear to the total everywhere.

Source: Rule 150-314-0076 — Modified Factors for Carriers of Freight or Passengers: Special Rules — Railroads, https://secure.­sos.­state.­or.­us/oard/view.­action?ruleNumber=150-314-0076.

150‑314‑0005
Period of Computation of Taxable Income 150‑314‑0010
Mitigation of Effect of Limitations and Other Provisions 150‑314‑0012
Determination by Agreement 150‑314‑0025
Pollution Control Facilities: Revocation of Certificate 150‑314‑0027
Pollution Control Facilities: Facilities Not Eligible for Tax Credit 150‑314‑0035
Formula for Apportionment of Lobbying Expenses Subject to Proxy Tax 150‑314‑0040
Withholding on Real Property Conveyances 150‑314‑0045
REMIC Filing Requirements 150‑314‑0047
REMIC Income Taxable to Nonresidents 150‑314‑0055
Change in Methods of Accounting or Reporting 150‑314‑0060
Election to Use Alternative Apportionment Weightings by Taxpayers Engaged in Utilities or Telecommunications 150‑314‑0062
Apportionment and Allocation of Income of Financial Organizations and Public Utilities from Business Activities Within and Without Oregon 150‑314‑0064
Definitions 150‑314‑0066
Apportionment and Allocation of Income Generally 150‑314‑0068
Allocation of Income 150‑314‑0070
Apportionment Factors Generally 150‑314‑0072
Apportionment Factors 150‑314‑0074
Modified Factors for Carriers of Freight or Passengers: General Rule 150‑314‑0076
Modified Factors for Carriers of Freight or Passengers: Special Rules — Railroads 150‑314‑0078
Modified Factors for Carriers of Freight or Passengers: Special Rules — Airlines 150‑314‑0080
Modified Factors for Carriers of Freight or Passengers: Special Rules — Trucking Companies 150‑314‑0082
Modified Factors for Companies Engaged in Sea Transportation Service 150‑314‑0084
Modified Factors for Companies Involved in Interstate River Transportation Service 150‑314‑0086
Other Methods: Limited Application 150‑314‑0088
Modified Factors for Financial Institutions 150‑314‑0090
Public Utilities: Sale of Commodities 150‑314‑0100
Disallowance of Certain Intercompany Transactions Involving Intangible Assets 150‑314‑0105
Farm Income Averaging 150‑314‑0110
Allocation of Oregon Modifications to Passive Activity Losses 150‑314‑0115
Interest on Deferred Oregon Tax Liability with Respect to Installment Obligations 150‑314‑0120
Reduction of Tax Attributes after Discharge of Debt 150‑314‑0125
Listed Transaction Reporting Requirement 150‑314‑0130
Definition: Final Determination 150‑314‑0135
Returns When Accounting Period Changed 150‑314‑0140
Information Returns 150‑314‑0142
Brokers’ Information Returns 150‑314‑0150
Requirement to File Returns Electronically (Corporation E-file Mandate) 150‑314‑0152
Requirement to File Returns Electronically 150‑314‑0160
Report of Changes in Federal Taxable Income 150‑314‑0165
Filing Returns of Income: Due date 150‑314‑0167
Filing Returns of Income: Extensions, Chapters 316, 317 and 318 150‑314‑0169
Standards for Substitute Tax Forms 150‑314‑0171
Alternative Filing Methods 150‑314‑0173
Time Limitations Affected by Military Service 150‑314‑0175
Time Limitations for Persons Outside United States 150‑314‑0185
Payment of Tax 150‑314‑0187
Responsibility for Tax Payments 150‑314‑0195
Delinquency Penalty 150‑314‑0197
Failure to File Penalty 150‑314‑0199
Interest on Deficiencies and Delinquencies 150‑314‑0205
Substantial Understatement Penalty (SUP) 150‑314‑0207
Waiver of 20 Percent Substantial Understatement of Net Tax Penalty Imposed under ORS 314.402 150‑314‑0209
Substantial Authority, Adequate Disclosure and Reasonable Basis 150‑314‑0215
Listed Transaction Understatement 150‑314‑0220
Additional Assessments 150‑314‑0222
Five-Year Statute of Limitations 150‑314‑0224
Time Limit to Make Adjustment 150‑314‑0226
Notification of Gain Realized Upon the Sale or Exchange of a Principal Residence 150‑314‑0228
Extension of Period for Assessment 150‑314‑0230
Effect of Federal Extension of Period for Assessment 150‑314‑0240
Refunds Generally 150‑314‑0242
Refunds 150‑314‑0244
Minimum Offset Amount 150‑314‑0246
Interest Computation — Offset 150‑314‑0248
Refund Offset Priority 150‑314‑0250
Refunds 150‑314‑0252
Effect of Federal Extension of Period for Assessment 150‑314‑0254
Separate Refunds When a Joint Return Has Been Filed 150‑314‑0256
Refunds of Tax Overpayments to Spouse or Heirs 150‑314‑0265
Model Recordkeeping and Retention 150‑314‑0267
Requirement to Provide Copies of Documents 150‑314‑0275
Definition: Collection Charge 150‑314‑0277
Payment Secured by Bond, Deposit or Otherwise 150‑314‑0279
Statute of Limitation on Tax Collection 150‑314‑0285
Assessment of Withholding Tax Against Liable Officers 150‑314‑0290
Estimated Tax: When Estimates Are Required 150‑314‑0292
Estimated Tax: When Estimates Are Required For Tax Exempt Corporations 150‑314‑0294
Estimated Tax: Affiliated Corporations 150‑314‑0300
Estimated Tax: Due Dates of Payments for Short-Period Returns 150‑314‑0302
Estimated Tax: Application of Payments 150‑314‑0310
Requirement to Use Electronic Funds Transfer 150‑314‑0315
Corporation Estimated Tax: Delinquent or Underestimated Payment or Both, Constitutes Underpayment 150‑314‑0317
Estimated Tax: Consolidated Return Underpayments 150‑314‑0319
Estimated Tax: Apportioned Returns 150‑314‑0321
Estimated Tax: Application of Net Loss, Annualized Income Exception 150‑314‑0323
Estimated Tax: Interest on Underpayment 150‑314‑0325
Estimated Tax: Computation of Underpayment 150‑314‑0327
Underpayment of Estimated Tax 150‑314‑0335
Apportionable and Nonapportionable Income Defined 150‑314‑0337
Apportionable and Nonapportionable Income 150‑314‑0339
Proration of Deductions 150‑314‑0345
Apportionment and Allocation of Income Generally 150‑314‑0347
Application of ORS 314.610 to 314.667: Allocation 150‑314‑0349
Apportionment and Allocation for a Taxpayer Carrying on a Unitary Business 150‑314‑0351
Two or More Businesses of a Single Taxpayer 150‑314‑0353
Apportionment for Long-Term Construction Contracts 150‑314‑0355
Special Rules: Installment Sales 150‑314‑0357
Modified Factors for Motion Picture and Television Film Producers 150‑314‑0365
Taxable in Another State 150‑314‑0367
Taxable in Another State 150‑314‑0369
Taxable in Another State 150‑314‑0371
Taxable in Another State 150‑314‑0380
Allocation of Interest and Dividends 150‑314‑0385
Apportionment Formula 150‑314‑0390
Property Factor 150‑314‑0392
Property Factor 150‑314‑0394
Property Factor 150‑314‑0396
Property Factor 150‑314‑0398
Property Factor 150‑314‑0400
Property Factor 150‑314‑0402
Property Factor 150‑314‑0404
Property Factor 150‑314‑0406
Property Factor 150‑314‑0415
Payroll Factor 150‑314‑0417
Payroll Factor 150‑314‑0425
Sales Factor 150‑314‑0427
Sales Factor 150‑314‑0429
Sales Factor 150‑314‑0431
Sales Factor 150‑314‑0435
Sales Factor 150‑314‑0437
Gross Receipts Related to Deferred Gain or Loss 150‑314‑0455
Modified Factors for Publishing 150‑314‑0460
Apportionment of Net Loss 150‑314‑0465
Sales Factor for Interstate Broadcasters 150‑314‑0470
Interstate Broadcasters: Net Income Attributable to this State 150‑314‑0475
Consistent Treatment of Partnership Items 150‑314‑0480
Publicly Traded Partnerships Taxed as Corporations 150‑314‑0485
Partnership Information Returns 150‑314‑0487
Partnership Penalty 150‑314‑0495
Corporation Tax Credits — Converting a C Corporation to an S Corporation 150‑314‑0497
Corporation Tax Credits — Converting an S Corporation to a C Corporation 150‑314‑0510
Definitions for Composite Tax Returns and Pass-through Entity Withholding 150‑314‑0515
Oregon Composite Tax Return 150‑314‑0520
Pass-through Entity Withholding Requirements 150‑314‑0525
Exceptions to Pass-through Entity Withholding Requirements 150‑314‑0530
Divulging Particulars of Returns and Reports Prohibited 150‑314‑0535
Information That May Be Furnished 150‑314‑0540
Rewards for Information 150‑314‑0545
Combat Zone Benefits 150‑314‑0733
Partnership Pays Election After Federal Centralized Partnership Audit Adjustments
Last Updated

Jun. 8, 2021

Rule 150-314-0076’s source at or​.us