Oregon Department of Revenue

Rule Rule 150-314-0371
Taxable in Another State; Washington Business and Occupation Tax


For the purposes of Oregon taxation, the Washington Business and Occupation (B & O) tax qualifies as a tax described in ORS 314.620 (When taxpayer is considered taxable in another state)(1). If the taxpayer is “subject to” the Washington B & O tax, it is not necessary that the business activity be of such a nature or of sufficient magnitude to cause the taxpayer to be subject to a net income tax. If the taxpayer is subject to the B & O tax, the requirement of taxability in Washington is met regardless of whether or not Public Law 86-272 would protect the taxpayer from an imposition of a Washington net income tax. It is important to note that the taxpayer must be “subject to” and not just making a minimal voluntary payment. OAR 150-314-0367 (Taxable in Another State; When a Taxpayer is “Subject To” Tax Under ORS 314.620(1)) provides that the taxpayer will not be considered to be “subject to” the tax merely by making a voluntary minimal payment. The taxpayer must be filing returns and paying the tax. Oregon will follow the determinations by the State of Washington as to what activities create tax jurisdiction under the B & O tax.
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Last accessed
Jun. 8, 2021