Taxes Imposed Upon or Measured by Net Income

ORS 314.655
Determination of property factor


(1)

For purposes of ORS 317.391 (Small city business development exemption), the property factor is a fraction, the numerator of which is the average value of the taxpayer’s real and tangible personal property owned or rented and used in this state during the tax period and the denominator of which is the average value of all the taxpayer’s real and tangible personal property owned or rented and used during the tax period.

(2)

Property owned by the taxpayer is valued at its original cost. Property rented by the taxpayer is valued at eight times the net annual rental rate. Net annual rental rate is the annual rental rate paid by the taxpayer less any annual rental rate received by the taxpayer from subrentals.

(3)

The average value of property shall be determined by averaging the values at the beginning and ending of the tax period but the Department of Revenue may require the averaging of monthly values during the tax period if reasonably required to reflect properly the average value of the taxpayer’s property. [1965 c.152 §§11,12,13; 2001 c.793 §3; 2001 c.933 §2; 2009 c.842 §2]

Notes of Decisions

Intangible drilling and development costs (IDCs) should be included in "original cost" in establishing property factor. Atlantic Richfield Co. v. Dept. of Rev., 301 Or 242, 722 P2d 727 (1986)

§§ 314.605 to 314.670

Notes of Decisions

Interest income from long-term investments of an interstate corporation is not attributable to Oregon unless it arises from transactions in the regular course of the taxpayer's business within the state. Sperry & Hutchinson v. Dept. of Rev., 270 Or 329, 527 P2d 729 (1974)

It was not abuse of discretion for Revenue Department to require corporations to file combined rather than consolidated corporate excise tax returns where one corporation owned at least 95 percent of voting stock of other. Caterpillar Tractor Co. v. Dept. of Rev., 8 OTR 236 (1979), aff'd 289 Or 895, 618 P2d 1261 (1980)

The Supremacy Clause gives Congress the authority to impose a brief moratorium on the collection of taxes for "insured depositories" in order to permit the development of a uniform state taxing system. Pac. First Fed. Savings & Loan v. Dept. of Revenue, 8 OTR 466 (1980), aff'd 293 Or 138, 645 P2d 27 (1982)

Plaintiff's use of apportionment method was proper because separate accounting would not fairly represent extent of plaintiff's business activities in Oregon. Lane v. Dept. of Rev., 10 OTR 168 (1985)

Intangible drilling and development costs (IDCs) should be included in property factor for purposes of apportioning income to Oregon. Atlantic Richfield Co. v. Dept. of Rev., 301 Or 242, 722 P2d 727 (1986)

Exclusion of intangible property from formula to determine Oregon business income of California financial organization engaged in owning, leasing and financing tangible personal property did not represent fair apportionment of taxpayer's business activity in Oregon. Crocker Equipment Leasing, Inc. v. Dept. of Rev., 314 Or 122, 838 P2d 552 (1992)

Law Review Citations

17 WLR 487 (1981)

Chapter 314

Law Review Citations

9 WLJ 249 (1973); 5 EL 516 (1975)


Source

Last accessed
Jun. 26, 2021