Taxes Imposed Upon or Measured by Net Income

ORS 314.712
Partnerships not subject to income tax

  • exceptions


Except as provided in ORS 314.722 (Publicly traded partnerships taxed as corporations) or 314.731 (Definitions) to 314.737 (Time limit for claim for refund or credit), a partnership as such is not subject to the tax imposed by ORS chapter 316, 317 or 318. Partnership income shall be computed pursuant to section 703 of the Internal Revenue Code, with the modifications, additions and subtractions provided in this chapter and ORS chapter 316. Persons carrying on business as partners are liable for the tax imposed by ORS chapter 316, 317 or 318 on their distributive shares of partnership income only in their separate or individual capacities.


If a partner engages in a transaction with a partnership other than in the partner’s capacity as a member of the partnership, the transaction shall be treated in the manner described in section 707 of the Internal Revenue Code. [1989 c.625 §28 (enacted in lieu of 316.342); 1999 c.90 §5; 2019 c.132 §7]

Notes of Decisions

Guaranteed distributions to nonresident partners are subject to apportionment and taxation as part of distributive share of partnership income. Pratt & Larsen Tile v. Dept. of Rev., 13 OTR 270 (1995)

Tax on distributive share of partnership income applies to both general and limited partners. CRIV Investments, Inc. v. Dept. of Revenue, 14 OTR 181 (1997)


Last accessed
May 26, 2023