OAR 150-314-0357
Modified Factors for Motion Picture and Television Film Producers

(1)

This regulation applies to motion picture and television film producers and producers of television commercials.

(2)

Definitions.

(a)

“Film” means the physical embodiment of a play, story, or other literary, commercial, educational, or artistic work, as a motion picture, video tape, disc, or other similar medium, except that it does not include news or sports films produced for telecast. “Film” does not include video cassettes or discs intended for home viewing.

(b)

Each episode of a series of films produced for television must constitute a separate film notwithstanding that the series relates to the same principal subject and is produced during one or more television seasons.

(c)

“Release date” means the date on which a film is placed in service. A film is placed in service when it is first telecast or exhibited to the primary audience for which the film was created. Thus, a motion picture theater film is placed in service when it is first publicly exhibited for entertainment purposes and an educational film is placed in service when it is first exhibited for instructional purposes. Each episode of a television series is placed in service when it is first telecast. A film is not placed in service merely because it is completed and therefore in a condition or state of readiness and availability for telecast or exhibition, or merely because it is telecast or exhibited to prospective exhibitors, sponsors, or purchasers, or is shown in a “sneak preview” before a select audience.

(d)

A “film” is deemed to be tangible personal property.

(e)

“Rent” includes license fees for the exhibition or telecast of films.

(f)

“Tangible personal property” used in the business, whether owned or rented, includes but is not limited to sets, props, wardrobes, and other similar equipment or property.

(g)

A “subscriber” to a subscription television telecaster is the individual residence or other outlet which is the ultimate recipient of the transmission.

(h)

“Telecast” means the transmission of an electronic signal by radiowaves or microwaves or by wires, lines, coaxial cables, wave guides, or other tangible conduits of communication.

(3)

Apportionment of Apportionable Income. The property, payroll, and sales factor of the apportionment formula for Motion Picture and Television Film Producers shall be computed pursuant to ORS 314.655 (Determination of property factor) through 314.665 (Determination of sales factor) and the regulations thereunder except as provided in this regulation.

(a)

Property Factor.

(A)

In General.
(i)
In the case of rented studios, the net annual rental rate includes only the amount of the basic or flat rental charge by the studio for the use of a stage and other permanent equipment such as sound recording equipment, etc., except that additional equipment rented from other sources or from the studio not covered in the basic or flat rental charge and used for one week or longer (even though rented on a day-to-day basis) must be included. Lump-sum net rental payments for a period which encompasses more than a single income year is assigned ratably over the rental period.
(ii)
The value of films must:

(I)

Be the original cost of producing the film as determined for federal income tax purposes, before any adjustment for federal credits which have not been claimed for state purposes, and

(II)

Include talent salaries.
(iii)
The value of a film is not in the property factor until its release date.
(iv)
Video cassettes and discs are in the property factor at their inventory cost as shown in the taxpayer’s books and records.

(B)

Denominator.
(i)
All real property and tangible personal property (other than films) whether owned or rented, which is used in the business, is included in the denominator.
(ii)
Films, other than films the cost of which is expensed for Oregon tax purposes at the time of production, is included in the property factor at original cost for twelve years beginning with the release date.
(iii)
Films of a topical nature including news or current event programs, sporting events or interview shows, the cost of which is expensed for Oregon tax purposes at the time of production, is included in the property factor at original cost for one year beginning with the release date.
(iv)
All films, other than those included in the denominator under clause (ii) or (iii) of this subparagraph, are aggregated and treated as a single film property which must be included in the property factor. Such property is valued at eight times the gross receipts generated during the income year from theater distribution, television syndication, cable television, subscription television, and the marketing of video cassettes and discs through licensing or direct selling, or similar receipts, but in no event in an amount greater than the total original cost of such aggregated film property.

(C)

Numerator.
(i)
If tangible personal property (other than films) is located or used in this state for part of the income year, its value is determined by applying the ratio which the number of days the property is located or used in this state bears to the total number of days such property was owned or rented during the income year.
(ii)
The total value of films that are included in the property factor under subparagraph (B) of paragraph (3)(a) is attributed to this state in the same ratio in which the total Oregon receipts from such films as determined in subparagraphs (A), (B), and (C) of paragraph (3)(c) pertaining to the sales factor bears to the total of such receipts everywhere.
(iii)
If a film producer sells copies of a film to an affiliated corporation for distribution, at a price which does not reflect the actual cost of producing the film, the cost of the film in the hands of the distributor is redetermined under the provisions in subparagraph (A)(ii) of this paragraph, as if the distributor was the producer.

(b)

Payroll Factor.

(A)

Denominator. The denominator includes all compensation paid to employees during the income years, including talent salaries. Residual and profit participation payments constitute compensation paid to employees.

(B)

Numerator. Compensation of employees engaged in the production of a film on location is attributed to the state where the services are or were performed. Compensation of all other employees is governed by OAR 150-314-0417 (Payroll Factor; Numerator).

(c)

Sales Factor Numerator. The numerator includes all gross receipts of the taxpayer from sources within this state including the following:

(A)

Gross receipts from films in release to theaters and television stations located in this state.

(B)

Gross receipts from films in syndicated release is attributed to this state in the ratio that the audience for such films located in Oregon bears to the total audience for the syndicated film everywhere. The audience is determined by rate card values published annually in the Television & Cable Factbook, Vol I, “Stations Volume,” Television Digest, Inc., Washington, D.C., if available, or by other published market surveys, or, if none is available, by population data published by the U.S. Bureau of the Census.

(C)

Gross receipts from films in release to subscription television telecasters is attributed to this state in the ratio of the subscribers for such telecaster located in Oregon to the total subscribers of such telecaster everywhere. If the number of subscribers cannot be determined accurately from records maintained by the taxpayer, the ratio is determined on the basis of the applicable year’s statistics on subscribers published in Cable Vision, International Thompson Communications Inc., Denver, Colorado, if available, or by other published market surveys, or, if none is available, by population data published by the U.S. Bureau of the Census for all states in which the telecaster has subscribers.

(D)

Receipts from sales and rentals of video cassettes and discs is included in the sales factor as provided in the rules under ORS 314.665 (Determination of sales factor).
[Publications: Contact the Oregon Department of Revenue to learn how to obtain a copy of the publication referred to or incorporated by reference in this rule pursuant to ORS 183.360 (Publication of rules and orders)(2) and 183.355 (Filing and taking effect of rules)(1)(b).]

Source: Rule 150-314-0357 — Modified Factors for Motion Picture and Television Film Producers, https://secure.­sos.­state.­or.­us/oard/view.­action?ruleNumber=150-314-0357.

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 150-314-0357’s source at or​.us