Personal Income Tax

ORS 316.162
Definitions for ORS 316.162 to 316.221

As used in ORS 316.162 (Definitions for ORS 316.162 to 316.221) to 316.221 (Disposition of withheld amounts):


“Employer” means:


A person who is in relation to another person such that the person may control the work of that other person and direct the manner in which the work is to be done; or


An officer or employee of a corporation, or a member or employee of a partnership, who as an officer, employee or member is under a duty to perform the acts required of employers by ORS 316.167 (Withholding of tax required), 316.182 (Withholding statement or exemption certificate), 316.197 (Payment to department by employer), 316.202 (Reports by employer) and 316.207 (Liability for tax).


“Wages” means remuneration for services performed by an employee for an employer, including the cash value of all remuneration paid in any medium other than cash, except that “wages” does not include remuneration paid:


For active service in the Armed Forces of the United States as to which no withholding is required by the Internal Revenue Code.


To an employee of a common carrier to the extent that 49 U.S.C. 14503 and 40116 prohibit the remuneration from withholding for state income taxes.


For domestic service in a private home, a local college club or a local chapter of a college fraternity or sorority.


For casual labor not in the course of the employer’s trade or business.


To an employee whose services to the employer consist solely of labor in connection with the planting, cultivating or harvesting of seasonal agricultural crops if the total amount paid to the employee is less than $300 annually.


To seamen who are exempt from garnishment, attachment or execution under title 46 of the United States Code.


To persons temporarily employed as emergency forest fire fighters.


To employees’ trusts exempt from tax under provisions of the federal Internal Revenue Code.


For services performed by a duly ordained, commissioned or licensed minister of a church in the exercise of the minister’s ministry or by a member of a religious order in the exercise of religious duties required by the order, which duties are not commercial in nature.


For services provided by an independent contractor, as defined in ORS 670.600 (Independent contractor defined).


To or on behalf of an employee, a beneficiary of an employee or an alternate payee under or to an eligible deferred compensation plan that, at the time of the payment, is a plan described in section 457(b) of the Internal Revenue Code and that is maintained by an eligible employer described in section 457(e)(1)(A) of the Internal Revenue Code.


When the remuneration is exempt from taxation under this chapter. [1969 c.493 §24; 1971 c.690 §1; 1973 c.229 §1; 1977 c.604 §1; 1981 c.705 §3; 1985 c.87 §3; 1989 c.762 §2; 1997 c.839 §15; 1999 c.21 §42; 1999 c.90 §13; 1999 c.580 §9; 2001 c.660 §40; 2003 c.77 §16; 2003 c.704 §6; 2005 c.533 §7; 2019 c.134 §1]

Notes of Decisions

One who exercises no day-to-day supervision or control of corporate affairs, despite offices or title held, is not personally liable for withholding taxes because that person is not the employer within the meaning of this section. Frutiger v. Dept. of Rev., 270 Or 821, 529 P2d 910 (1974); Bellotti v. Dept. of Rev., 12 OTR 543 (1993)

Corporate officer or employee "duty" to perform employer acts refers to duty owed to corporation, not legally imposed duty. Olson v. Dept. of Rev., 304 Or 241, 744 P2d 240 (1987)

Chapter 316

Notes of Decisions

Unless the divorce decree specifically designates that payments are for child support, payments will be treated as alimony. Henderson v. Dept. of Rev., 5 OTR 153 (1972)

The goal of this chapter is to incorporate all of the provisions of the federal Internal Revenue Code; taxable income should be adjusted whenever the result of the adjustment is to give effect to the policies or principles of the federal Internal Revenue Code, even though no express authority for the adjustment is present in the statutes. Christian v. Dept. of Rev., 269 Or 469, 526 P2d 538 (1974); Smith v. Dept. of Rev., 270 Or 456, 528 P2d 73 (1974)

By its enactment of this chapter, the legislature intended to adopt §172 of the federal Internal Revenue Code allowing for the carryback and carryforward of net operating losses. Christian v. Dept. of Rev., 269 Or 469, 526 P2d 538 (1974)

Where plaintiff failed to appeal timely as required by this section, appeal rights were not preserved so that cause could be considered on merits. Dela Rosa v. Dept. of Rev., 11 OTR 201 (1989), aff'd 313 Or 284, 832 P2d 1228 (1992)

Where taxpayers paid foreign income taxes on foreign income and claimed foreign taxes paid as federal tax credit and as state business expense deduction, taxpayers who claim federal foreign tax credit are entitled only to foreign tax deduction provided in ORS 316.690. Whipple v. Dept. of Rev., 309 Or 422, 788 P2d 994 (1990)

For purposes of claim preclusion, all issues regarding taxpayer's income tax liability for tax year constitute same claim. U.S. Bancorp v. Dept. of Revenue, 15 OTR 13 (1999)

Atty. Gen. Opinions

Political contributions as credit against Oregon tax return, (1974) Vol 37, p 159

Law Review Citations

57 OLR 309 (1978); 16 WLR 373 (1979)


Last accessed
Jun. 26, 2021