OAR 150-317-1150
Retail Sale of Groceries Exclusion

(1) Definition. For purposes of this rule, “store” means the location from which a taxpayer sells goods at retail to the final consumer for home consumption. “Store” includes both physical locations and online storefronts.
(2) Excludable receipts from retail sales. Receipts from retail sales of groceries are excludable from a taxpayer’s commercial activity under ORS 317A.100 (Definitions)(1)(b)(EE). The exclusion applies only to receipts from the sale of groceries as that term is defined in ORS 317A.100 (Definitions)(8), which are sold at retail to the final consumer for home consumption. The determination as to whether an item is sold to a consumer for home consumption is based on the type of item sold and the circumstances of the sale. The determination is based on whether the seller typically expects that the sale of food from a specific store is purchased for home consumption.
(3) Factors indicating home consumption. The determination as to whether a store typically sells groceries at retail rests on specific facts and circumstances. When determining whether a store typically makes grocery retail sales, the department will consider factors such as (but not limited to):
(a) Whether the store’s average gross receipts from the sale of hot food is greater than the average gross receipts from the sale of groceries.
(b) Whether the store offers on-site dining facilities, and if so, whether the percentage of total floor space allotted to dining facilities for customers is greater than the percentage of floor space dedicated to shelves displaying groceries available to customers for retail sale.
(c) Whether the store advertises itself as being engaged in the sale of hot food or ready-to-eat food.
(4) The list of factors in section (3) is nonexclusive, and the factors will be considered only to the extent that they are relevant. The department may consider any other relevant facts and circumstances.
(5) Examples.
(6) Safe Harbor for Stores Authorized as Retail Food Stores or Qualifying as Retail Food Stores for Purposes of the Supplemental Nutrition Assistance Program (SNAP). The sale of a grocery item, as defined in ORS 317A.100 (Definitions)(8), by a store authorized as a retail food store under 7 U.S.C. 2012(o), with a valid permit as a SNAP qualified retail food store from the U.S. Department of Agriculture, is considered the retail sale of groceries for home consumption, and excluded from the taxpayer’s commercial activity. Receipts from the sale of groceries realized by a store that meets the requirements to qualify as a retail food store under 7 U.S.C. 2012(o), regardless of whether the store holds a permit as a SNAP qualified retail food store from the U.S. Department of Agriculture, are also considered the retail sales of groceries for home consumption and are excluded from the taxpayer’s commercial activity, provided that the taxpayer can demonstrate that the store meets the requirements to qualify as a retail food store under 7 U.S.C. 2012(o).
(7) A store may not exclude receipts under ORS 317A.100 (Definitions)(1)(b)(EE), if the store’s receipts from the sale of hot food or hot prepared food constitutes 80 percent or more of the total receipts that the store realized from the sale of all food items. The fact that the store’s receipts are at least 80 percent from sales of hot food or hot prepared food is evidence that the store does not intend to sell, or typically sell, groceries to the final consumer for home consumption; therefore, sales from the store are not excludable as retail sales of groceries.
[Publications: Contact the Oregon Department of Revenue for information about 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 ORS 183.355 (Filing and taking effect of rules)(1)(b).]

Source: Rule 150-317-1150 — Retail Sale of Groceries Exclusion, https://secure.­sos.­state.­or.­us/oard/view.­action?ruleNumber=150-317-1150.

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 150-317-1150’s source at or​.us