Determination of sales factor
- use of market sourcing
- inclusions and exclusions
- definitions
Source:
Section 314.665 — Determination of sales factor; use of market sourcing; inclusions and exclusions; definitions, https://www.oregonlegislature.gov/bills_laws/ors/ors314.html.
Notes of Decisions
If consignee sells tangible personal property and is an independent taxable entity, then income from such sale is apportionable under this section. Northwest Textbook Depository v. Dept. of Rev., 11 OTR 280 (1989)
Goodwill, measured and disposed of in connection with disposition of all assets of business, it not intangible property under subsections (6)(a) and (b) of this section and cannot be appropriately included in sales factor computation. Tektronix, Inc. v. Dept. of Revenue, 20 OTR 468 (2012)
Taxpayer, in business of developing and selling electronic equipment, may exclude from income portion of proceeds from sale of division of company attributable to intangible assets because sale of division was not taxpayer’s primary business activity even though division itself was central to taxpayer’s operation. Tektronix, Inc. v. Dept. of Revenue, 354 Or 531, 316 P3d 276 (2013)
For purposes of this section, electricity is “tangible personal property.” Powerex Corporation v. Dept. of Revenue, 357 Or 40, 346 P3d 476 (2015)
Where taxpayer telephone company did not identify correct income-producing activities and did not correctly calculate costs of performance of those activities, taxpayer did not meet burden of proof and is not entitled to refund. AT&T Corporation v. Dept. of Revenue, 357 Or 691, 358 P3d 973 (2015)
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