Oregon Department of Revenue Rule Rule 150-314-0086 Other Methods: Limited Application (1)For taxpayers that are taxable both within and without Oregon, the provisions of ORS 314.280 (Allocation of income of financial institution or public utility from business within and without state) will ordinarily require apportionment to arrive at a fair and accurate measure of net income from business activity in Oregon. If the taxpayer can show that no unitary relationship exists between its business activities within Oregon and those activities outside Oregon, then the taxpayer may use separate accounting. (2)If the allocation and apportionment provisions of OAR 150-314-0062 (Apportionment and Allocation of Income of Financial Organizations and Public Utilities from Business Activities Within and Without Oregon) to 150-314-0088 (Modified Factors for Financial Institutions) do not fairly and accurately reflect the net income of the business done within Oregon, based on the taxpayer’s business activity within Oregon, the department may require or the taxpayer may request an alternative method of apportionment and the department may approve that method of apportioning all or any part of the net income from the taxpayer’s business activity within Oregon: (3)The request to use an alternative method of apportionment shall be filed in writing with the department. The request must be signed by the taxpayer or the taxpayer’s authorized representative and shall be filed separately from the taxpayer’s return. The request shall include a complete explanation of the alternative method as well as an explanation why the apportionment factors in OAR 150-314-0062 (Apportionment and Allocation of Income of Financial Organizations and Public Utilities from Business Activities Within and Without Oregon) through 150-314-0088 (Modified Factors for Financial Institutions) should not be used. Upon receipt of the request, the department will review it and issue a letter either authorizing or denying the request. If denied, the taxpayer can appeal that action as provided in ORS 305.275 (Persons who may appeal due to acts or omissions). An alternative apportionment method may be used only after receiving written authorization from the department. The authorization may be revoked if, upon audit, it is determined that the alternative method does not arrive at a fair and accurate measure of net income from business activity in Oregon. Once an alternative method has been authorized, it shall be used until a request to change is made and approved by the department or until the authorization is revoked in an audit. (4)Examples of alternative methods of apportionment include: (a)The exclusion of any one or more of the factors; (b)The inclusion of one or more additional factors which will fairly and accurately reflect the taxpayer’s net income from business activity in Oregon; or (c)The employment of any other method to effectuate an equitable allocation and apportionment of the taxpayer’s income.