OAR 150-317-0170
Minimum Tax

(1)

Intentionally left blank —Ed.

(a)

For tax years beginning on or after January 1, 2009, the tax liability of an affiliated group of corporations filing a consolidated return may not be less than the minimum tax as defined in ORS 317.090 (Minimum tax). Only one minimum tax is charged per return, regardless of the number of corporations in the group that are doing business in Oregon.
Example 1: X Corporation and its only subsidiary, Y Corporation, are doing business in Oregon and file a consolidated Oregon excise tax return showing a net loss for the 2009 tax year. The consolidated Oregon excise tax return properly shows Oregon sales for X of $500,000 and for Y of $250,000. The minimum tax for the year is $500 based on Oregon sales of $750,000.

(b)

For tax years beginning on or after January 1, 2006, and before January 1, 2009 the tax liability of an affiliated group of corporations filing a consolidated return may not be less than the $10 minimum tax multiplied by the number of corporations in the group that are doing business in Oregon.
Example 2: Alpha Corporation and its only subsidiary, Beta Corporation, are doing business in Oregon and file a consolidated Oregon excise tax return showing a net loss for the 2006 tax year. The Oregon minimum tax for the year is $20.

(c)

For consolidated returns filed for tax years beginning before January 1, 2006, the department determines that a $10 minimum tax is due for the consolidated group, and the $10 minimum tax due for each affiliate included in the return doing business in Oregon is cancelled. This determination is made under authority of ORS 305.145 (When interest required to be waived)(3).
Example 3: On July 1, 2006, Corporation A and affiliates filed an amended tax return for 2005. The return included three affiliates doing business in Oregon and showed a net loss for the tax year. Although ORS 317.090 (Minimum tax) provides that each of the four corporations owes $10 of minimum tax, the department will cancel the tax attributable to the affiliates and only one $10 tax is owed by Corporation A and affiliates.

(2)

For tax years beginning on or after January 1, 1999, the excise tax is measured by the corporation’s Oregon taxable income as computed in accordance with the provisions of the statute, but the tax cannot be less than the specified minimum. The minimum tax is due even though the corporation had a net loss and it must be paid in full even though the taxpayer was subject to the statute for only a part of the year, except that it may be apportioned in the case of a change of accounting periods. A corporation with no business activity in Oregon is not subject to the minimum tax.

(3)

For tax years beginning before January 1, 1999, the provisions of section (2) of this rule apply, except that a corporation qualified to do business in Oregon, but engaging in no business activity in the state, is subject to the $10 minimum tax.

(4)

Definition of “Oregon Sales”. For tax years beginning on or after January 1, 2009, the minimum excise tax is determined by referencing the taxpayer’s “Oregon sales.” Corporations using the apportionment method described in ORS 314.650 (Apportionment of income) to 314.665 (Determination of sales factor) compute Oregon sales as provided under ORS 314.665 (Determination of sales factor). For corporations that apportion apportionable income using a method different from that prescribed by ORS 314.650 (Apportionment of income) to 314.665 (Determination of sales factor), “Oregon sales” means the numerator of the sales factor for:

(a)

Carriers of freight or passengers in general, as provided in OAR 150-314-0074 (Modified Factors for Carriers of Freight or Passengers: General Rule);

(b)

Railroads, as provided in OAR 150-314-0076 (Modified Factors for Carriers of Freight or Passengers: Special Rules — Railroads);

(c)

Airlines, as provided in OAR 150-314-0078 (Modified Factors for Carriers of Freight or Passengers: Special Rules — Airlines);

(d)

Trucking companies, as provided in OAR 150-314-0080 (Modified Factors for Carriers of Freight or Passengers: Special Rules — Trucking Companies);

(e)

Companies engaged in sea transportation service, as provided in OAR 150-314-0082 (Modified Factors for Companies Engaged in Sea Transportation Service);

(f)

Companies involved in interstate river transportation service, as provided in OAR 150-314-0084 (Modified Factors for Companies Involved in Interstate River Transportation Service);

(g)

Public utilities (other than those provided for in subsections (a) through (f)), as provided in OAR 150-314-0070 (Apportionment Factors Generally), 150-314-0072 (Apportionment Factors), and ORS 314.650 (Apportionment of income);

(h)

Financial organizations, as defined in ORS 314.610 (Definitions for ORS 314.605 to 314.675)(4), as provided in OAR 150-314-0088 (Modified Factors for Financial Institutions);

(i)

Taxpayers with income from long-term construction contracts, as provided in OAR 150-314-0353 (Apportionment for Long-Term Construction Contracts);

(j)

Motion picture and television film producers, as provided in OAR 150-31-0357;

(k)

Publishers, as provided in OAR 150-314-0455 (Modified Factors for Publishing);

(L)

Interstate broadcasters, as provided in ORS 314.684 (Determination of sales factor);

(m)

Insurers (as defined in ORS 317.010 (Definitions)(11)), as provided in ORS 317.660 (Allocation of net income where insurer has both in-state and out-of-state business)(1); and

(n)

Title insurers, and health care service contractors not classed as insurers under ORS 317.010 (Definitions)(11), as provided in OAR 150-314-0070 (Apportionment Factors Generally), including gross premium receipts.

Source: Rule 150-317-0170 — Minimum Tax, https://secure.­sos.­state.­or.­us/oard/view.­action?ruleNumber=150-317-0170.

150‑317‑0010
Procedure for Handling State Surplus Refund 150‑317‑0020
Substantial Nexus Guidelines 150‑317‑0030
Definition: “Doing Business” 150‑317‑0040
Taxable Income of Regulated Investment Companies and Real Estate Investment Trusts 150‑317‑0050
Foreign Corporations Subject to Tax 150‑317‑0060
Capital Losses — Carrybacks and Carry-overs 150‑317‑0070
Administrative and Judicial Interpretations 150‑317‑0080
Adoption of Federal Law 150‑317‑0090
Policy — Application of Various Provisions of the Federal Internal Revenue Code 150‑317‑0100
Periods of Less than 12 Months Are Tax Years 150‑317‑0110
Tax Reform Act of 1984 Adjustments 150‑317‑0120
Farm Capital Gain 150‑317‑0130
Tax on Homeowner’s Association Income 150‑317‑0140
Imposition of the Tax: Mercantile, Manufacturing and Business Corporations 150‑317‑0150
Adoption of Federal Exempt Organizations 150‑317‑0160
Exemption and Return Requirements 150‑317‑0170
Minimum Tax 150‑317‑0190
Affordable Housing Credit 150‑317‑0200
Commercial Lending Institution Loans for Underground Storage Tanks or Soil Remediation 150‑317‑0210
Carryover of the Lender’s Credit for Weatherization Loans 150‑317‑0220
Lender’s Credit: Loans to Wood Heat and Fuel Oil Heat Customers 150‑317‑0230
Lender’s Credit: Computation 150‑317‑0240
Lender’s Credit: Definitions 150‑317‑0245
Commencement of Long Term Enterprise Zone Tax Credit 150‑317‑0250
Long Term Enterprise Zone Distributions 150‑317‑0260
Lender’s Credit for Agriculture Workforce Housing 150‑317‑0270
Credit for Contributions of Computers, Scientific Equipment, and Research 150‑317‑0280
Qualified Research Credit 150‑317‑0290
Research Tax Credit: Notice of Election 150‑317‑0300
Research Tax Credit: Alternative Computation 150‑317‑0310
Bad Debt Reserve of Financial Institutions Not Qualifying as Large Banks that Have Differences in Reserve for Federal and Oregon Tax Purposes 150‑317‑0320
Modification of Federal Taxable Income: Dividends from Certain Subsidiaries 150‑317‑0330
Modification for Dividends Received 150‑317‑0340
Modification of Federal Taxable Income: Internal Revenue Code Subpart F Income 150‑317‑0350
Oregon Subtraction Where Charitable Contribution Is Reduced Under Federal Law 150‑317‑0360
Definition of “State” 150‑317‑0370
Bad Debt Reserve of Financial Institutions that Have Changed From Reserve Method to Specific Charge-off Method 150‑317‑0380
Taxes on Net Income or Profits Imposed by any State or Foreign Country 150‑317‑0390
IRC Section 338: Application to Oregon 150‑317‑0400
Payments Received Under Federal Safe Harbor Lease Agreements For Transactions Entered Into in Tax Years Beginning on or After January 1, 1983 150‑317‑0410
Payments Received Under Federal Safe Harbor Lease Agreements for Transactions Entered Into in Tax Years Beginning Prior to 1983 150‑317‑0420
Modification of Federal Taxable Income: Difference Between Oregon and Federal Bases on Assets Sold, Exchanged or Otherwise Disposed Of 150‑317‑0430
Modification of Federal Taxable Income: Timber Cut but Unsold 150‑317‑0440
Depletion Allowance 150‑317‑0450
Depletion of Metal Mines 150‑317‑0460
Limitation on Oregon Net Loss Deduction 150‑317‑0470
Pre-change and Built-in Losses 150‑317‑0480
Definition of “Premiums” in the Insurance Sales Factor 150‑317‑0490
Insurers 150‑317‑0500
Applicable Date 150‑317‑0510
Unitary Business 150‑317‑0520
Direct or Indirect Relationships 150‑317‑0530
Corporations Doing Business Outside the United States 150‑317‑0540
Consolidated Oregon Return: Format and Information Required 150‑317‑0550
Consolidated Oregon Return: Affiliated Group 150‑317‑0560
Consolidated Oregon Return: Credits 150‑317‑0570
Different Apportionment Factors for Purposes of ORS 317.710(5)(b) 150‑317‑0580
Consolidated Oregon Return: Copy of Federal Return Required 150‑317‑0590
Interinsurance and Reciprocal Exchanges 150‑317‑0600
Limitations on Deduction of Group Losses 150‑317‑0610
Modified Federal Consolidated Taxable Income 150‑317‑0620
Modified Federal Consolidated Taxable Income — Contribution Deduction for the Oregon Consolidated Group 150‑317‑0630
Oregon Return: Apportionment Formula 150‑317‑0640
Member of a Unitary Group Incorporated in a Listed Foreign Jurisdiction 150‑317‑0650
Stakeholder feedback regarding listed jurisdictions 150‑317‑0651
Repatriation Tax Credit 150‑317‑0652
Modification for Listed Jurisdiction Amounts Previously Included in Income 150‑317‑0660
Computation of Taxable Income 150‑317‑0670
Application for Relief 150‑317‑0680
Tax Imposed on Unrelated Business Income of Certain Exempt Corporations 150‑317‑1000
Definition of Commercial Activity 150‑317‑1010
Substantial Nexus Guidelines for the Corporate Activity Tax (CAT) 150‑317‑1020
Corporate Activity Tax Unitary Business Factors, Common Ownership and Filing Requirements for Unitary Groups 150‑317‑1025
Corporate Activity Tax: Election to Exclude Non-U.S. Members from Unitary Group 150‑317‑1030
Sourcing Commercial Activity to Oregon from Sales of Tangible Personal Property 150‑317‑1040
Sourcing Commercial Activity to Oregon of Other than Sales of Tangible Personal Property 150‑317‑1050
Sourcing of Commercial Activity for Financial Institutions in This State 150‑317‑1060
Definition of Insurers’ Gross Premiums Receipts 150‑317‑1070
Sourcing of Motor Carrier Transportation Services 150‑317‑1100
Agent Exclusion 150‑317‑1120
Exclusion for subcontracting payments 150‑317‑1130
Property Brought into Oregon 150‑317‑1140
Wholesale Sale of Groceries Exclusion 150‑317‑1150
Retail Sale of Groceries Exclusion 150‑317‑1160
Farmer’s Sales to Agricultural Cooperatives 150‑317‑1170
Farming Operations: Clarifying Definitions for Agricultural Commodities, Farming Operations, Out of State Sales Based on Industry Averages 150‑317‑1200
Cost Input or Labor Cost Subtraction 150‑317‑1220
Employee Compensation: Labor Cost Subtraction 150‑317‑1300
Estimated Tax: When Estimated Payments Are Required 150‑317‑1310
Estimated Tax Payments: Delinquent or Underestimated Payment or Both, Constitutes Underpayment 150‑317‑1320
Estimated Tax: Unitary Groups and Apportioned Returns 150‑317‑1330
Extension of Time to File 150‑317‑1400
Determining Property Resold Out of State, and Methods of Determining 150‑317‑1410
Motor Vehicle Resale Certificate – Documentation Required 150‑317‑1420
Damages Received as the Result of Litigation 150‑317‑1500
Good Faith Effort
Last Updated

Jun. 8, 2021

Rule 150-317-0170’s source at or​.us