Gross Income of Nonresidents: Waterway Workers
(1)General Policy. The State of Oregon imposes taxes on Oregon source income of nonresidents to the extent allowed under Oregon and federal law and exempts Oregon source income of nonresidents to the extent provided under federal law: 46 USCA 11108. Under both federal and state law, compensation of a nonresident waterway worker is exempt from Oregon taxation to the extent the compensation is paid to an individual engaged on a vessel and performing assigned duties as a licensed pilot in more than one State or to an individual performing regularly assigned duties while engaged as a master, officer, or crewman on a vessel operating on the navigable waters in two or more states.
(2)For purposes of ORS 316.127 (Income of nonresident from Oregon sources)(10) and this rule:
(a)“Master” is the commander of a merchant vessel, who is in charge of the vessel, its crew, its passengers, and the care and control of the vessel and cargo.
(b)“Member of a crew” or “crew member” is an individual carried on board a vessel who is not required to obtain a license (though they may be required to obtain certification) who provides services such as navigation and maintenance of the vessel, its machinery, systems, or services essential for propulsion and safe navigation or to provide services for passengers on board.
(c)“Navigable waters” are waters that are subject to the ebb and flow of the tide and waters that are presently used, or were used in the past, to transport interstate or foreign commerce.
(d)“Officer” is an individual carried on board the vessel who must obtain a specialized license and who provides navigation and maintenance of the vessel, its machinery, systems, and arrangements essential for propulsion and safe navigation.
(e)“Passenger” is a person on board a vessel other than:
(A)The master, a member of the crew, or other person employed or engaged in any capacity in the business of the vessel; or
(B)A child under one year of age.
(f)“Regularly assigned duties” are those duties performed on a regular basis (i.e. daily, weekly, or monthly). Duties that are performed on sporadically or intermittently as occurs when serving on an “on-call” or “as-needed” basis are not “regularly assigned duties.”
(g)“Vessel” is watercraft used, or capable of being used, as a means of transportation on navigable waters in 2 or more states for business purposes.
(h)“Waterway worker” is a nonresident who is:
(A)Engaged on a vessel to perform assigned duties in more than one State as a pilot licensed under section 7101 of Title 46 of the United States Code or licensed or authorized under the laws of a State, or
(B)An individual who performs regularly assigned duties while engaged as a master, officer, or member of a crew on a vessel operating on the navigable waters in two or more states.
Rule 150-316-0185 — Gross Income of Nonresidents: Waterway Workers,