2007 Oregon Code - Chapter 317 :: Chapter 317 - Corporation Excise Tax
Chapter 317 —
Corporation Excise Tax
2007 EDITION
CORPORATION EXCISE TAX
REVENUE AND TAXATION
GENERAL PROVISIONS
317.005Â Â Â Â Short
title
317.010Â Â Â Â Definitions
317.013Â Â Â Â Adoption
of parts of Internal Revenue Code and application of federal laws and regulations
317.018Â Â Â Â Statement
of purpose
317.019Â Â Â Â Application
of Payment-in-kind Tax Treatment Act of 1983
317.025Â Â Â Â Omission
of previously enacted savings clauses from Oregon Revised Statutes
317.030Â Â Â Â Effect
of chapter
317.035Â Â Â Â Effect
of subsequent repeal of chapter
317.038Â Â Â Â Computation
of
IMPOSITION OF TAX
317.056Â Â Â Â Financial
corporations; applicable taxes
317.057Â Â Â Â Exemption
of certain out-of-state financial institutions from tax; exception
317.061Â Â Â Â Tax
rate
317.063Â Â Â Â Tax
rate imposed on certain long-term capital gain from farming; requirements
317.067Â Â Â Â Tax
on homeowners association income
317.070Â Â Â Â Tax
on centrally assessed, mercantile, manufacturing and business corporations
317.080Â Â Â Â Exempt
corporations
317.090Â Â Â Â Minimum
tax
317.092Â Â Â Â Exemption
of payments to tenant of manufactured dwelling park upon termination of rental
agreement
CREDITS
(Generally)
317.097Â Â Â Â Lending
institution loans for housing
317.111Â Â Â Â Weatherization
loan interest; commercial lending institutions
317.112Â Â Â Â Energy
conservation loans to residential fuel oil customers or wood heating residents;
rules
317.115Â Â Â Â Alternative
fuel vehicle fueling stations
317.122Â Â Â Â Insurers;
amounts paid for certain taxes and assessments
(Temporary provisions relating to mile-based or time-based motor
vehicle insurance are compiled as notes following ORS 317.122)
(Long Term Enterprise Zones)
317.124Â Â Â Â Long
term enterprise zone facilities
317.125Â Â Â Â Other
tax credits limited; exception
317.127Â Â Â Â Long
Term Enterprise Zone Fund
317.129Â Â Â Â Tax
payments of long term enterprise zone facilities credit claimants
317.131Â Â Â Â Distribution
of funds to local governments
(Farmworker Housing)
317.147Â Â Â Â Farmworker
housing loans; credit transfers; rules
(Education and Research)
317.151Â Â Â Â Contributions
of computers or scientific equipment for research to educational organizations
317.152Â Â Â Â Qualified
research activities credit
317.153Â Â Â Â Qualified
research activities; election between credits; rules
317.154Â Â Â Â Alternative
qualified research activities credit
DISSOLUTION OF TAXPAYER
317.190Â Â Â Â Effect
on reporting income
317.195Â Â Â Â Effect
on deductions allowed
MODIFICATIONS TO TAXABLE INCOME
317.259Â Â Â Â Modifications
generally
317.267Â Â Â Â Dividends
received by corporation from certain other corporations
317.273Â Â Â Â Dividend
income received by domestic corporation from certain foreign corporations
317.283Â Â Â Â Nonrecognition
of transactions with related domestic international sales corporation
317.286Â Â Â Â Nonrecognition
of transactions with related foreign sales corporation
317.303Â Â Â Â Deduction
or adjustment for certain federal credits
317.304Â Â Â Â Addition
for unused qualified business credits
317.307Â Â Â Â Reduction
for charitable contribution deduction under federal law; subtraction
317.309Â Â Â Â Interest
and dividends received from obligations of state or political subdivision
317.310Â Â Â Â Balance
in bad debt reserve of financial institution which has changed from reserve
method to specific charge-off method of accounting
317.311Â Â Â Â Application
of section 243 of Tax Reform Act of 1986
317.312Â Â Â Â Federal
depreciation expenses of certain health care service contractors
317.314Â Â Â Â Taxes
on net income or profits imposed by any state or foreign country; nondeductible
taxes and license fees; taxes paid to foreign country for certain income
317.319Â Â Â Â Capital
Construction Fund; deferred income; nonqualified withdrawals
317.322Â Â Â Â Addition
of long term care insurance premiums if credit is claimed
317.327Â Â Â Â Modification
of taxable income when deferred gain is recognized as result of out-of-state
disposition of property; rules
317.329Â Â Â Â Basis
for stock acquisition
317.344Â Â Â Â Net
operating loss carryback and carryover
317.349Â Â Â Â Transaction
treated as lease purchase under federal law
317.351Â Â Â Â ORS
317.349 not applicable to finance leases
317.356Â Â Â Â Basis
on disposition of asset; adjustments to reflect depreciation, depletion, other
cost recovery, federal credits and other differences in
317.362Â Â Â Â Reversal
of effect of gain or loss in case of timber, coal, domestic iron ore
317.374Â Â Â Â Depletion
317.379Â Â Â Â Exemption
of income from exercise of Indian fishing rights
317.383Â Â Â Â Underground
storage tank pollution prevention or essential services grant
317.386Â Â Â Â Energy
conservation payments exempt
317.388Â Â Â Â Claim
of right income repayment adjustment when credit is claimed
317.391Â Â Â Â Small
city business development exemption
317.394Â Â Â Â Qualifying
film production labor rebates
317.398Â Â Â Â Qualified
production activities income
317.401Â Â Â Â Addition
for federal prescription drug plan subsidies excluded for federal tax purposes
(Temporary provisions relating to exemption for certain sales of
manufactured dwelling parks are compiled as notes following ORS 317.401)
317.476Â Â Â Â Net
losses of prior years
317.478Â Â Â Â Pre-change
and built-in losses
317.479Â Â Â Â Limitation
on use of preacquisition losses to offset built-in gain
317.485Â Â Â Â Loss
carryforward after reorganization; construction
317.488Â Â Â Â Qualified
donations and sales to educational institutions
RETURNS AND PAYMENT OF TAX
317.504Â Â Â Â Date
return considered filed or advance payment considered made
317.510Â Â Â Â Requiring
additional reports and information
FOREIGN INCOME; DOMESTIC INTERNATIONAL SALES CORPORATIONS; INSURERS
317.625Â Â Â Â Income
from sources without the
317.635Â Â Â Â Domestic
international sales corporation
317.650Â Â Â Â Insurers;
depreciation and basis provisions; confidentiality of returns; calendar year
filing of returns required
317.655Â Â Â Â Taxable
income of insurer; computation; exclusion for certain life insurance or annuity
accounts
317.660Â Â Â Â Allocation
of net income where insurer has both in-state and out-of-state business
317.665Â Â Â Â
UNITARY TAX
317.705Â Â Â Â Definitions
317.710Â Â Â Â Corporation
tax return requirements
317.713Â Â Â Â Group
losses as offset to income of subsidiary paying preferred dividends
317.715Â Â Â Â Tax
return of corporation in affiliated group making consolidated federal return
317.720Â Â Â Â Computation
of taxable income; excess loss accounts
317.725Â Â Â Â Adjustments
to prevent double taxation or deduction; rules
DISPOSITION OF REVENUE
317.850Â Â Â Â Disposition
of revenue
UNRELATED BUSINESS INCOME OF CERTAIN EXEMPT
CORPORATIONS
317.920Â Â Â Â Tax
imposed on unrelated business income of certain exempt corporations
317.930Â Â Â Â Exceptions
and limitations
317.950Â Â Â Â Assessment
of deficiency
PENALTIES
317.991Â Â Â Â Civil
penalty; noncompliance with ORS 317.097 relating to credit for housing
rehabilitation loans
GENERAL PROVISIONS
     317.005
Short title. This chapter
may be cited as the Corporation Excise Tax Law. [Amended by 2005 c.94 §83]
     317.010
Definitions. As used in this
chapter, unless the context requires otherwise:
     (1) “Centrally assessed corporation” means
every corporation the property of which is assessed by the Department of
Revenue under ORS 308.505 to 308.665.
     (2) “Department” means the Department of
Revenue.
     (3)(a) “Consolidated federal return” means
the return permitted or required to be filed by a group of affiliated
corporations under section 1501 of the Internal Revenue Code.
     (b) “Consolidated state return” means the
return required to be filed under ORS 317.710 (5).
     (4) “Doing business” means any transaction
or transactions in the course of its activities conducted within the state by a
national banking association, or any other corporation; provided, however, that
a foreign corporation whose activities in this state are confined to purchases
of personal property, and the storage thereof incident to shipment outside the
state, shall not be deemed to be doing business unless such foreign corporation
is an affiliate of another foreign or domestic corporation which is doing
business in Oregon. Whether or not corporations are affiliated shall be
determined as provided in section 1504 of the Internal Revenue Code.
     (5) “Excise tax” means a tax measured by
or according to net income imposed upon national banking associations, all
other banks, and financial, centrally assessed, mercantile, manufacturing and
business corporations for the privilege of carrying on or doing business in
this state.
     (6) “Financial institution” or “financial
corporation” means a bank or trust company organized under ORS chapter 707,
national banking association or production credit association organized under
federal statute, building and loan association, savings and loan association,
mutual savings bank, and any other corporation whose principal business is in direct
competition with national and state banks.
     (7) “Internal Revenue Code,” except where
the Legislative Assembly has provided otherwise, refers to the laws of the
United States or to the Internal Revenue Code as they are amended and in
effect:
     (a) On December 31, 2006; or
     (b) If related to the definition of
taxable income, as applicable to the tax year of the taxpayer.
     (8) “Oregon taxable income” means taxable
income, less the deduction allowed under ORS 317.476, except as otherwise
provided with respect to insurers in subsection (11) of this section and ORS
317.650 to 317.665.
     (9) “
     (10) “Taxable income or loss” means the
taxable income or loss determined, or in the case of a corporation for which no
federal taxable income or loss is determined, as would be determined, under
chapter 1, Subtitle A of the Internal Revenue Code and any other laws of the United
States relating to the determination of taxable income or loss of corporate
taxpayers, with the additions, subtractions, adjustments and other
modifications as are specifically prescribed by this chapter except that in
determining taxable income or loss for any year, no deduction under ORS 317.476
or 317.478 and section 45b, chapter 293, Oregon Laws 1987, shall be allowed. If
the corporation is a corporation to which ORS 314.280 or 314.605 to 314.675
(requiring or permitting apportionment of income from transactions or
activities carried on both within and without the state) applies, to derive
taxable income or loss, the following shall occur:
     (a) From the amount otherwise determined
under this subsection, subtract nonbusiness income, or add nonbusiness loss,
whichever is applicable.
     (b) Multiply the amount determined under
paragraph (a) of this subsection by the
     (c) To the amount determined as
     (11) As used in ORS 317.122 and 317.650 to
317.665, “ insurer” means any domestic, foreign or alien insurer as defined in
ORS 731.082 and any interinsurance and reciprocal exchange and its attorney in
fact with respect to its attorney in fact net income as a corporate attorney in
fact acting as attorney in compliance with ORS 731.458, 731.462, 731.466 and
731.470 for the reciprocal or interinsurance exchange. However, “insurer” does
not include title insurers or health care service contractors operating
pursuant to ORS 750.005 to 750.095. [Amended by 1953 c.385 §9; 1959 c.631 §1;
1963 c.571 §1; subsection (18) enacted as 1969 c.600 §2; 1975 c.368 §4; 1977
c.866 §2; 1983 c.162 §3; 1984 c.1 §5; 1985 c.802 §20; 1987 c.293 §31; 1989
c.625 §15; 1991 c.457 §8; 1993 c.726 §38; 1995 c.556 §12; 1995 c.786 §12; 1997
c.154 §49; 1997 c.839 §26; 1999 c.224 §8; 2001 c.660 §46; 2003 c.77 §19; 2005
c.832 §31; 2007 c.614 §14]
     317.013
Adoption of parts of Internal Revenue Code and application of federal laws and
regulations. (1) Those
portions of the Internal Revenue Code, and any other laws of the
     (2) Insofar as is practicable in the
administration of this chapter, the Department of Revenue shall apply and
follow the administrative and judicial interpretations of the federal income
tax law. When a provision of the federal income tax law is the subject of
conflicting opinions by two or more federal courts, the department shall follow
the rule observed by the United States Commissioner of Internal Revenue until
the conflict is resolved. Nothing contained in this section limits the right or
duty of the department to audit the return of any taxpayer or to determine any
fact relating to the tax liability of any taxpayer.
     (3) When portions of the Internal Revenue
Code incorporated by reference as provided in subsection (1) of this section
refer to rules or regulations prescribed by the Secretary of the Treasury, they
are regarded as rules adopted by the department under and in accord with the
provisions of this chapter, whenever they are prescribed or amended.
     (4)(a) When portions of the Internal
Revenue Code incorporated by reference as provided in subsection (1) of this
section are later corrected by an Act or Title within an Act of the United States
Congress designated as an Act or Title making technical corrections, then
notwithstanding the date that the Act or Title becomes law, those portions of
the Internal Revenue Code, as so corrected, shall be the portions of the
Internal Revenue Code incorporated by reference as provided in this section or
ORS 317.010 or 317.018 and shall take effect, unless otherwise indicated by the
Act or Title (in which case the provisions shall take effect as indicated in
the Act or Title) as if originally included in the Act being technically
corrected. If, on account of this subsection, any adjustment is required to an
     (b) As used in this subsection, “Act or
Title” includes any subtitle, division or other part of an Act or Title. [1983
c.162 §11; 1984 c.1 §6; 1985 c.802 §32; 1987 c.293 §32; 1997 c.839 §27; 2003
c.77 §20]
     317.015 [Repealed by 1957 c.632 §1 (314.075 and
314.080 enacted in lieu of 316.025, 316.030, 317.015 and 317.020)]
     317.016 [1967 c.274 §§2,3,5; 1975 c.705 §10;
repealed by 1983 c.162 §57]
     317.017 [1985 c.802 §48; repealed by 1997 c.839 §69]
     317.018
Statement of purpose. It is
the intent of the Legislative Assembly:
     (1) To make the Oregon corporate excise
tax law, insofar as it relates to the measurement of taxable income, identical
to the provisions of the federal Internal Revenue Code, as in effect and
applicable for the tax year of the taxpayer, to the end that taxable income of
a corporation for Oregon purposes is the same as it is for federal income tax
purposes, subject to OregonÂ’s jurisdiction to tax, and subject to the
additions, subtractions, adjustments and modifications contained in this
chapter.
     (2) To achieve the results desired under
subsection (1) of this section by application of the various provisions of the
federal Internal Revenue Code relating to the definitions for corporations, of
income, deductions, accounting methods, accounting periods, taxation of
corporations, basis and other pertinent provisions relating to gross income. It
is not the intent of the Legislative Assembly to adopt federal Internal Revenue
Code provisions dealing with the computation of tax, tax credits or any other
provisions designed to mitigate the amount of tax due.
     (3) To impose on each corporation doing
business within this state an excise tax for the privilege of carrying on or
doing that business measured by its federal taxable income as adjusted in this
chapter. [1983 c.162 §2; 1984 c.1 §7; 1985 c.802 §21; 1987 c.293 §33; 1989
c.625 §16; 1991 c.457 §9; 1993 c.726 §39; 1995 c.556 §13; 1997 c.839 §28]
     317.019
Application of Payment-in-kind Tax Treatment Act of 1983. The Payment-in-kind Tax Treatment Act of
1983 (P.L. 98-4, as amended by section 1061 of P.L. 98-369) shall apply in
deriving
     317.020 [Repealed by 1957 c.632 §1 (314.075 and
314.080 enacted in lieu of 316.025, 316.030, 317.015 and 317.020)]
     317.021 [1985 c.802 §60; 1987 c.293 §34; renumbered
314.031 in 1993]
     317.022 [1983 c.162 §41; 1984 c.1 §8; repealed by
2005 c.94 §84]
     317.025
Omission of previously enacted savings clauses from
     317.030
Effect of chapter. Nothing
in this chapter shall be construed to repeal the present capital stock tax or
annual corporation license fee otherwise provided for by law.
     317.035
Effect of subsequent repeal of chapter. In the event of repeal of this chapter, unless otherwise specifically
provided in the repeal, this chapter shall remain in full force for the
assessment, imposition and collection of the tax and all interest, penalty or
forfeitures which have accrued or may accrue in relation to any such tax for
the calendar year in which the tax is repealed.
     317.038
Computation of
     (2) The changes to the corporate excise
and income tax laws by chapter 162, Oregon Laws 1983, shall not be applied to
preclude a corporation from taking into account a deduction or a loss to which
it otherwise would be entitled.
     (3) The changes to the corporate excise
and income tax laws by chapter 162, Oregon Laws 1983, shall not be applied to
preclude a corporation from including income which it otherwise would be
required to include. [1983 c.162 §40; 1985 c.802 §21e]
     317.045 [1989 c.625 §19; repealed by 1991 c.457 §24]
     317.055 [Amended by 1957 c.607 §1; subsection (2) of
1961 Replacement Part derived from 1957 c.607 §11 and 1957 s.s. c.5 §1; 1963
c.571 §2; repealed by 1975 c.368 §8]
IMPOSITION OF
TAX
     317.056
Financial corporations; applicable taxes. Except as otherwise required by federal law, every financial
corporation located within this state shall be subject to county, city,
district, political subdivision and all other local taxes imposed generally on
a nondiscriminatory basis throughout the jurisdiction of the taxing authority,
at the same rates and in all respects in the same manner and to the same extent
as are mercantile, manufacturing and business corporations, and shall pay
annually to the state an excise tax according to or measured by its Oregon
taxable income, to be computed in the manner provided by this chapter at the
rate provided in ORS 317.061. [1975 c.368 §3; 1983 c.162 §4; 1999 c.21 §43]
     317.057
Exemption of certain out-of-state financial institutions from tax; exception. (1) As used in this section:
     (a) “Extranational institution” has the
meaning given that term in ORS 706.008;
     (b) “Foreign association” means a foreign
association as defined in ORS 722.004 or a federal association as defined in
ORS 722.004, the home state of which is a state other than Oregon; and
     (c) “Out-of-state bank” has the meaning
given that term in ORS 706.008.
     (2) Except as provided in this section and
ORS 713.300, an out-of-state bank, extranational institution or foreign
association described in ORS 713.300, that engages in activities authorized
under ORS 713.300, is not subject to any tax, license fee or charge for the
privilege of doing business in this state or to any tax measured by net or
gross income.
     (3) If the out-of-state bank,
extranational institution or foreign association acquires any property given as
security for a mortgage or trust deed, all income accruing to the out-of-state
bank, extranational institution or foreign association solely from the
ownership, sale or other disposition of such property is subject to taxation in
the same manner and on the same basis as income of corporations doing business
in this state. [1999 c.30 §2]
     317.060 [Amended by 1957 c.607 §2; subsection (2) of
1961 Replacement Part derived from 1957 c.607 §11 and 1957 s.s. c.5 §1; 1963
c.571 §3; repealed by 1975 c.368 §8]
     317.061
Tax rate. The rate of the
tax imposed by and computed under this chapter is six and six-tenths percent. [1975
c.368 §2; 1983 c.162 §5; 1987 c.293 §34a]
     317.063
Tax rate imposed on certain long-term capital gain from farming; requirements. (1) As used in this section:
     (a) “Farming” means:
     (A) Raising, harvesting and selling crops;
     (B) Feeding, breeding, managing or selling
livestock, poultry, fur-bearing animals or honeybees or the produce thereof;
     (C) Dairying and selling dairy products;
     (D) Stabling or training equines,
including but not limited to providing riding lessons, training clinics and
schooling shows;
     (E) Propagating, cultivating, maintaining
or harvesting aquatic species and bird and animal species to the extent allowed
by the rules adopted by the State Fish and Wildlife Commission;
     (F) On-site constructing and maintaining
equipment and facilities used for the activities described in this subsection;
     (G) Preparing, storing or disposing of, by
marketing or otherwise, the products or by-products raised for human or animal
use on land employed in activities described in this subsection; or
     (H) Any other agricultural or
horticultural activity or animal husbandry, or any combination of these
activities, except that “farming” does not include growing and harvesting trees
of a marketable species other than growing and harvesting cultured Christmas
trees or certain hardwood timber described in ORS 321.267 (3) or 321.824 (3).
     (b) “Section 1231 gain” has the meaning
given that term in section 1231 of the Internal Revenue Code.
     (2) Notwithstanding ORS 317.061, taxable
income that consists of net long-term capital gain shall be subject to tax
under this chapter at a rate of five percent if all of the following conditions
apply:
     (a) The gain is:
     (A) Derived from the sale or exchange of
capital assets consisting of ownership interests in a corporation, partnership
or other entity in which, prior to the sale or exchange, the taxpayer owned at
least a 10 percent ownership interest; or
     (B) Section 1231 gain.
     (b) The property that was sold or
exchanged consisted of:
     (A) Ownership interests in a corporation,
partnership or other entity that is engaged in the trade or business of farming;
or
     (B) Property that is predominantly used in
the trade or business of farming.
     (c) The sale or exchange is to a person
who is not related to the taxpayer under section 267 of the Internal Revenue
Code.
     (d) The sale or exchange constitutes a
substantially complete termination of all of the taxpayerÂ’s ownership interests
in a trade or business that is engaged in farming or a substantially complete
termination of all of the taxpayerÂ’s ownership interests in property that is
employed in the trade or business of farming.
     (3) If the taxpayer has net long-term
capital gain derived in part from the sale or exchange of property described in
subsection (2)(b) of this section and in part from the sale or exchange of all
other property, the net long-term capital gain that is subject to tax under
this section shall be determined as follows:
     (a) Compute the net long-term capital gain
derived from all property described in subsection (2)(b) of this section that
was sold or exchanged during the tax year.
     (b) Compute the net capital gain or loss
from the sale or exchange of all other property during the tax year.
     (c) If the amount determined under
paragraph (b) of this subsection is a net capital gain, the gain that is
subject to tax under subsection (2) of this section shall be the amount
determined under paragraph (a) of this subsection.
     (d) If the amount determined under
paragraph (b) of this subsection is a net capital loss, the gain that is
subject to tax under subsection (2) of this section shall be the amount determined
under paragraph (a) of this subsection minus the amount determined under
paragraph (b) of this subsection. [2001 c.545 §4; 2003 c.454 §124; 2003 c.621 §99a]
     317.065 [Repealed by 1975 c.368 §8]
     317.066 [1977 c.597 §2; repealed by 1983 c.162 §57]
     317.067
Tax on homeowners association income. (1) A tax is hereby imposed for each taxable year on the homeowners
association taxable income of every homeowners association at the rate provided
in ORS 317.061 and as though the homeowners association were a corporation.
     (2) As used in this section, “homeowners
association” has the meaning given that term in section 528(c) of the Internal
Revenue Code. [1977 c.597 §3; 1983 c.162 §6; 1999 c.21 §44; 1999 c.90 §22a]
     317.070
Tax on centrally assessed, mercantile, manufacturing and business corporations. Every centrally assessed corporation, the
property of which is assessed by the Department of Revenue under ORS 308.505 to
308.665, and every mercantile, manufacturing and business corporation doing
business within this state, except as provided in ORS 317.080 and 317.090,
shall annually pay to this state, for the privilege of carrying on or doing
business by it within this state, an excise tax according to or measured by its
Oregon taxable income, to be computed in the manner provided by this chapter,
at the rate provided in ORS 317.061. [Amended by 1957 c.607 §3; 1957 c.709 §1;
subsection (3) of 1963 Replacement Part derived from 1957 c.607 §11; 1957 c.709
§2 and 1957 s.s. c.5 §1; 1959 c.631 §2; 1963 c.627 §22 (referred and rejected);
1965 c.322 §1; 1965 c.544 §1; 1971 c.247 §1; 1975 c.368 §5; 1977 c.866 §3; 1982
1 c.16 §11; 1983 c.162 §7; 1985 c.565 §55; 1997 c.154 §50; 1999 c.21 §45; 1999
c.60 §1]
     317.071 [1977 c.887 §8; 1981 c.778 §40; 1981 c.894 §30;
renumbered 317.111]
     317.072 [1967 c.592 §9; 1969 c.340 §3; 1973 c.831 §9;
1977 c.795 §12; 1977 c.866 §11; 1981 c.408 §2; 1983 c.637 §7; renumbered
317.116]
     317.073 [1959 c.631 §6; repealed by 1969 c.520 §49]
     317.074 [1955 c.592 §2; 1957 c.607 §4; subsection
(5) derived from 1957 c.607 §11 and 1957 s.s. c.5 §1; repealed by 1969 c.520 §49]
     317.075 [Repealed by 1955 c.592 §4]
     317.076 [1969 c.600 §9; renumbered 317.122]
     317.077 [1977 c.839 §10; 1979 c.439 §2; renumbered
317.128]
     317.078 [1969 c.600 §5; 1983 c.162 §35; renumbered
317.650]
     317.080
Exempt corporations. The
following corporations are exempt from the taxes imposed by this chapter:
     (1) Organizations described in subsection
(c) and subsection (j) of section 501 of the Internal Revenue Code unless the
exemption is denied under subsection (h), (i) or (m) of section 501 or under
section 502, 503 or 505 of the Internal Revenue Code.
     (2) Organizations described in section
501(d) of the Internal Revenue Code, unless the exemption is denied under
section 502 or 503 of the Internal Revenue Code.
     (3) Organizations described in section
501(e) of the Internal Revenue Code.
     (4) Organizations described in section
501(f) of the Internal Revenue Code.
     (5) Charitable risk pools described in
section 501(n) of the Internal Revenue Code.
     (6) Organizations described in section 521
of the Internal Revenue Code.
     (7) Qualified state tuition programs
described in section 529 of the Internal Revenue Code.
     (8) Foreign or alien insurance companies,
but only with respect to the underwriting profit derived from writing wet
marine and transportation insurance subject to tax under ORS 731.824 and
731.828.
     (9) Corporations, organized and operated
primarily for the purpose of furnishing permanent residential, recreational and
social facilities primarily for elderly persons, which:
     (a) Are corporations not for profit,
authorized to transact business in this state pursuant to ORS chapter 65 or any
statute repealed by chapter 580, Oregon Laws 1959;
     (b) Receive not less than 95 percent of
their operating gross income (excluding any investment income) solely from
payments for living, medical, recreational, and social services and facilities,
paid by or on behalf of the elderly persons using the facilities of such corporation;
     (c) Permit no part of their net earnings
to inure to the benefit of any private stockholder or individual; and
     (d) Provide in their articles or other
governing instrument that, upon dissolution, the assets remaining after
satisfying all lawful debts and liabilities shall be distributed to one or more
corporations exempt from taxation under this chapter as corporations organized
and operated exclusively for religious, charitable, scientific, literary or
educational purposes.
     (10) People’s utility districts
established under ORS chapter 261. [Amended by 1953 c.207 §1; 1953 c.653 §3;
1955 c.592 §5; last sentence of 1959 Replacement Part derived from 1955 c.592 §6;
1957 c.553 §1; 1959 c.215 §1; 1961 c.473 §1; subsection (17) enacted as 1961
c.473 §2; 1963 c.286 §1; 1967 c.359 §689; 1969 c.600 §11; 1971 c.637 §1; 1985
c.802 §28a; 1987 c.293 §36; 1987 c.838 §20; 1989 c.626 §9; 1995 c.786 §13; 1997
c.839 §29]
     317.083 [1981 c.778 §36; renumbered 317.386]
     317.084 [1987 c.911 §8e; repealed by 2005 c.80 §7]
     317.085 [Repealed by 1957 c.607 §10]
     317.087 [1981 c.720 §18; renumbered 317.133]
     317.090
Minimum tax. Each taxpayer
named in ORS 317.056 or 317.070 shall pay annually to the state, for the
privilege of carrying on or doing business by it within this state, a minimum
tax of $10. The minimum tax shall not be apportionable (except in the case of a
change of accounting periods), but shall be payable in full for any part of the
year during which a corporation is subject to tax. [Amended by 1975 c.368 §6]
     317.092
Exemption of payments to tenant of manufactured dwelling park upon termination
of rental agreement. Amounts
received by a taxpayer under ORS 90.645 (1) are exempt from the taxes imposed
by this chapter. [2007 c.906 §14]
     Note: Section 1, chapter 4, Oregon Laws 2007,
provides:
     Sec.
1. (1) For a tax year that
begins on or after January 1, 2007, and before January 1, 2008, a taxpayer that
is a C corporation as defined in ORS 314.730 and that has Oregon sales for the
tax year of less than $5 million shall be allowed a credit against taxes that
would otherwise be due under ORS chapter 317 or 318 equal to 67 percent of
those taxes.
     (2) As used in this section, “
     (a) If the taxpayer apportions business
income under ORS 314.650 to 314.665 for
     (b) If the taxpayer does not apportion
business income for Oregon income tax purposes, the total sales in this state
during the tax year that the taxpayer would have had, as determined for
purposes of ORS 314.665, if the taxpayer were required to apportion business
income for Oregon income tax purposes; or
     (c) If the taxpayer apportions business
income using a method different from that prescribed by ORS 314.650 to 314.665,
     317.095 [1955 c.592 §§3,6; repealed by 1965 c.479 §1
(317.096 enacted in lieu of 317.095)]
     317.096 [1965 c.479 §2 (enacted in lieu of 317.095);
repealed by 1983 c.162 §57]
CREDITS
(Generally)
     317.097
Lending institution loans for housing. (1) A credit against taxes otherwise due under this chapter for the
taxable year shall be allowed to a lending institution in an amount equal to
the difference between:
     (a) The amount of finance charge charged
by the lending institution during the taxable year at an annual rate less than
the market rate for a loan that is made before January 1, 2020, that complies
with the requirements of this section; and
     (b) The amount of finance charge that
would have been charged during the taxable year by the lending institution for
the loan for housing construction, development, acquisition or rehabilitation
measured at the annual rate charged by the lending institution for
nonsubsidized loans made under like terms and conditions at the time the loan
for housing construction, development, acquisition or rehabilitation is made.
     (2) The maximum amount of credit for the
difference between the amounts described in subsection (1)(a) and (b) of this
section may not exceed four percent of the average unpaid balance of the loan
during the tax year for which the credit is claimed.
     (3) Any tax credit otherwise allowable
under this section that is not used by the taxpayer in a particular year may be
carried forward and offset against the taxpayerÂ’s tax liability for the next
succeeding tax year. Any credit remaining unused in the next succeeding tax
year may be carried forward and used in the second succeeding tax year, and
likewise, any credit not used in that second succeeding tax year may be carried
forward and used in the third succeeding tax year, and any credit not used in
that third succeeding tax year may be carried forward and used in the fourth
succeeding tax year, and any credit not used in that fourth succeeding tax year
may be carried forward and used in the fifth succeeding tax year, but may not
be carried forward for any tax year thereafter.
     (4) In order to be eligible for the tax credit
allowed under subsection (1) of this section, the loan shall be:
     (a) Made to an individual or individuals
who own the dwelling, participate in an owner-occupied community rehabilitation
program and are certified by the local government or its designated agent as
having an income level at the time the loan is made of less than 80 percent of
the area median income;
     (b)(A) Made to a qualified borrower;
     (B) Used to finance construction,
development, acquisition or rehabilitation of housing; and
     (C) Accompanied by a written certification
by the Housing and Community Services Department that the:
     (i) Housing created by the loan is or will
be occupied by households earning less than 80 percent of the area median
income; and
     (ii) Full amount of savings from the
reduced interest rate provided by the lending institution is or will be passed
on to the tenants in the form of reduced housing payments, regardless of other
subsidies provided to the housing project;
     (c)(A) Made to a qualified borrower;
     (B) Used to finance construction,
development, acquisition, or acquisition and rehabilitation of housing
consisting of a manufactured dwelling park; and
     (C) Accompanied by a written certification
by the Housing and Community Services Department that the housing will continue
to be operated as a manufactured dwelling park during the period for which the
tax credit is allowed; or
     (d)(A) Made to a qualified borrower;
     (B) Used to finance acquisition, or
acquisition and rehabilitation, of housing consisting of a preservation
project; and
     (C) Accompanied by a written certification
by the Housing and Community Services Department that the housing preserved by
the loan:
     (i) Is or will be occupied by households
earning less than 80 percent of the area median income; and
     (ii) Has a rent assistance contract with
the United States Department of Housing and Urban Development or the United
States Department of Agriculture that will be maintained by the qualified
borrower.
     (5) A loan made to refinance a loan that
meets the criteria stated in subsection (4) of this section shall be treated
the same as a loan that meets the criteria stated in subsection (4) of this
section.
     (6) In order to be eligible for the tax
credit allowed under subsection (1) of this section, the loan also shall be
accompanied by a written certification by the Housing and Community Services
Department that:
     (a) Specifies the period, as determined by
the Housing and Community Services Department, during which the loan is
eligible for the tax credit under subsection (1) of this section; and
     (b) States that the loan is within the
limitation imposed by subsection (7) of this section.
     (7)(a) The Housing and Community Services
Department may certify loans that are eligible under subsection (4) of this
section if the total credits attributable to all loans eligible for credits
under subsection (1) of this section and then outstanding do not exceed $13
million for any fiscal year. In making loan certifications, the Housing and
Community Services Department shall attempt to distribute the tax credits
statewide, but shall concentrate the tax credits in those areas of the state
that are determined by the State Housing Council to have the greatest need for
affordable housing.
     (b) The certification under subsection (6)
of this section shall state the period for which the credit will be allowed,
which may not exceed 20 years.
     (8) The applicant’s receipt of a credit
under section 42 of the Internal Revenue Code does not affect the credit
allowed under this section.
     (9) A loan meeting the requirements of
subsections (4) and (6) of this section may be sold to a qualified assignee
with or without the lending institutionÂ’s retaining servicing of the loan so
long as a designated lending institution maintains records annually verified by
a loan servicer that establish the amount of tax credit earned by the taxpayer
throughout each year of eligibility.
     (10) As used in this section:
     (a) “Annual rate” means the yearly
interest rate specified on the note, and not the annual percentage rate, if
any, disclosed to the applicant to comply with the federal Truth in Lending
Act.
     (b) “Finance charge” means the total of
all interest, loan fees, interest on any loan fees financed by the lending
institution, and other charges related to the cost of obtaining credit.
     (c) “Lending institution” means any
insured institution, as that term is defined in ORS 706.008, any mortgage
banking company that maintains an office in this state or any community
development corporation that is organized under the Oregon Nonprofit
Corporation Law.
     (d) “Manufactured dwelling park” has the
meaning given that term in ORS 446.003.
     (e) “Nonprofit corporation” means a
corporation that is exempt from income taxes under section 501(c)(3) or (4) of
the Internal Revenue Code as amended and in effect on December 31, 2006.
     (f) “Preservation project” means housing
that was previously developed as affordable housing with a contract for rent
assistance from the United States Department of Housing and Urban Development or
the United States Department of Agriculture and that is being acquired by a
sponsoring entity.
     (g) “Qualified assignee” means any
investor participating in the secondary market for real estate loans.
     (h) “Qualified borrower” means any
borrower that is a sponsoring entity that has a controlling interest in the
real property that is financed by the loan described in subsection (4) of this
section. Such a controlling interest includes, but is not limited to, a
controlling interest in the general partner of a limited partnership that owns
the real property.
     (i) “Sponsoring entity” means a nonprofit
corporation, nonprofit cooperative, state governmental entity, local unit of
government as defined in ORS 466.706, housing authority or any other person,
provided that the person has agreed to restrictive covenants imposed by a
nonprofit corporation, nonprofit cooperative, state governmental entity, local
unit of government or housing authority.
     (11) Notwithstanding any other provision
of law, a lending institution that is a community development corporation
organized under the Oregon Nonprofit Corporation Law may transfer any part or
all of any tax credit arising under subsection (1) of this section to one or
more other lending institutions that are stockholders or members of the
community development corporation or that otherwise participate through the
community development corporation in the making of one or more loans that
generate the tax credit under subsection (1) of this section.
     (12) The lending institution shall file an
annual statement with the Housing and Community Services Department, specifying
that it has conformed with all requirements imposed by law to qualify for this
tax credit.
     (13) The Housing and Community Services
Department and the Department of Revenue may adopt rules to carry out the
provisions of this section. [1989 c.1045 §2; 1991 c.737 §1; 1993 c.813 §8; 1995
c.746 §43; 1997 c.425 §1; 1997 c.631 §458; 1997 c.839 §31; 1999 c.21 §46; 1999
c.90 §23; 1999 c.857 §§1,4; 2001 c.660 §§47,48; 2005 c.476 §§1,3; 2007 c.843 §61]
     Note: Section 62, chapter 843, Oregon Laws 2007,
provides:
     Sec.
62. The amendments to ORS
317.097 by section 61 of this 2007 Act apply to tax credit certifications
issued on or after the effective date of this 2007 Act [September 27, 2007].
[2007 c.843 §62]
     317.098 [1979 c.561 §6; 1983 c.162 §8; renumbered
317.392]
     317.099 [1989 c.1071 §§10,10a; repealed by 1991
c.863 §69]
     317.100 [1979 c.483 §2; repealed by 1989 c.626 §12]
     317.102 [1979 c.578 §9; 1985 c.749 §2; 1987 c.605 §2;
1989 c.887 §2; 1991 c.714 §7; 1991 c.877 §24; repealed by 1993 c.730 §7
(315.104 enacted in lieu of 316.094, 317.102 and 318.110)]
     317.103 [1981 c.894 §§15,16; 1989 c.765 §4; 1991
c.457 §10; repealed by 1993 c.730 §35 (315.356 enacted in lieu of 316.141,
316.142 and 317.103)]
     317.104 [1979 c.512 §14; 1981 c.894 §13; 1989 c.765 §5;
1991 c.711 §7; repealed by 1993 c.730 §33 (315.354 enacted in lieu of 316.140
and 317.104)]
     317.105 [Repealed by 1983 c.162 §57]
     317.106 [1985 c.684 §14; 1989 c.765 §6; 1989 c.958 §11;
repealed by 1993 c.730 §31 (315.324 enacted in lieu of 316.103 and 317.106)]
     317.110 [Amended by 1953 c.385 §9; 1973 c.233 §1;
repealed by 1983 c.162 §57]
     317.111
Weatherization loan interest; commercial lending institutions. (1) A credit against taxes otherwise due
under this chapter for the taxable year shall be allowed commercial lending
institutions in an amount equal to the difference between:
     (a) The maximum amount of interest allowed
to be charged during the taxable year under section 6b, chapter 887, Oregon
Laws 1977, for loans made before November 1, 1981, by the lending institution
to space-heating customers for the purpose of financing weatherization
services; and
     (b) The amount of interest which would
have been charged during the taxable year by the lending institution for such
loans at an annual interest rate which is the lesser of the following:
     (A) The average interest rate charged by
the commercial lending institution for home improvement loans made during the
calendar year immediately preceding the year in which the loans for
weatherization services are made; or
     (B) Twelve percent.
     (2) Any tax credit otherwise allowable
under this section which is not used by the taxpayer in a particular year may
be carried forward and used in each of the 15 years following the unused tax
credit year. However, the entire amount of the unused credit for an unused
credit year shall be carried forward to the earliest of the 15 years to which
it may be carried.
     (3) No credit shall be allowed under this
section for loans made on or after November 1, 1981. [Formerly 317.071; 1985
c.712 §1]
     317.112
Energy conservation loans to residential fuel oil customers or wood heating
residents; rules. (1) A
credit against taxes otherwise due under this chapter for the taxable year
shall be allowed to a commercial lending institution in an amount equal to the
difference between:
     (a) The amount of finance charge charged
during the taxable year including interest on the loan and interest on any loan
fee financed at an annual rate of six and one-half percent, by the lending
institution to a dwelling owner who is or who rents to a residential fuel oil
customer, or who is or who rents to a wood heating resident for the purpose of
financing energy conservation measures; and
     (b) The amount of finance charge that
would have been charged during the taxable year, including interest on the loan
and interest on any loan fee financed by the lending institution for the loan
for energy conservation measures at an annual rate that is the lesser of the
following:
     (A) The annual rate charged by the
commercial lending institution for nonsubsidized loans made under like terms
and conditions at the time the loan for energy conservation measures is made;
or
     (B) An upper limit established by rule by
the Director of the State Department of Energy.
     (2) Any tax credit otherwise allowable
under this section that is not used by the taxpayer in a particular year may be
carried forward and offset against the taxpayerÂ’s tax liability for the next
succeeding tax year. Any credit remaining unused in the next succeeding tax
year may be carried forward and used in the second succeeding tax year, and
likewise until the 15th succeeding tax year. The credit may not be carried forward
beyond the 15th succeeding tax year.
     (3) In order to be eligible for the tax
credit allowed under subsection (1) of this section, the loan shall:
     (a) Be made only to an owner of an
oil-heated or wood-heated dwelling who presents the results of an energy audit
pursuant to ORS 469.631 to 469.645, 469.649 to 469.659, 469.673 to 469.683 or
469.685 that is conducted by a fuel oil dealer, investor-owned utility or
publicly owned utility or through the State Department of Energy, regardless of
whether that fuel oil dealer or utility provides the dwellingÂ’s space heating
energy.
     (b) Be subject to an annual rate not to
exceed six and one-half percent and have a term not exceeding 10 years.
     (c) Not finance any materials installed in
the construction of a new dwelling, additions to existing structures or
remodeling that adds living space.
     (d) Finance only those energy conservation
measures that are recommended as cost-effective in the energy audit, and any
loan fee that is included in the body of the loan.
     (4) The credit allowed under this section
may not be allowed to the extent that the loan exceeds $5,000 for a single
dwelling unit, or, if the dwelling owner is a corporation described in ORS
307.375, to the extent that the loan exceeds $2,000 for a single dwelling unit.
     (5) A commercial lending institution may
charge, finance and collect a nonrefundable front-end loan fee, and such a fee
does not affect the eligibility of the loan for a tax credit under this
section. The fee, if any, may not exceed that charged by the lending
institution for nonsubsidized loans made under like terms and conditions at the
time the loan for energy conservation measures is made.
     (6) Nothing in this section or in rules
adopted under this section shall be construed to cause a loan to violate the
usury laws of this state.
     (7) As used in this section, “annual rate,”
“commercial lending institution,” “cost-effective,” “dwelling,” “dwelling
owner,” “energy audit,” “energy conservation measures,” “finance charge,” “fuel
oil dealer,” “residential fuel oil customer,” “space heating” and “wood heating
resident” have the meaning given those terms in ORS 469.710. [1981 c.894 §28;
1987 c.749 §1; 1991 c.718 §1; 1995 c.746 §21; 2001 c.584 §3]
     317.113 [1987 c.591 §15; 1989 c.381 §§9,12,15; 1991
c.877 §§25,26,27; 1991 c.916 §§21,22,23; 1993 c.18 §§83,84,85; repealed by 1997
c.170 §33]
     317.114 [1987 c.682 §6; 1991 c.877 §28; 1991 c.929 §2;
repealed by 1993 c.730 §23 (315.208 enacted in lieu of 316.132, 317.114 and
318.160)]
     317.115
Alternative fuel vehicle fueling stations. (1) A business tax credit is allowed against the taxes otherwise due
under this chapter based upon costs paid or incurred for construction or
installation in a dwelling of a fueling station necessary to operate an alternative
fuel vehicle. The credit is allowed to the contractor who constructs the
dwelling in which the fueling station is incorporated or installs the fueling
station in the dwelling but may be taken by any person under the circumstances
described in ORS 469.170 (9) and the rules adopted thereunder.
     (2) The credit is 25 percent of the cost
of the fueling station but the total credit shall not exceed $750 if the
fueling station is placed in service on or after January 1, 1998.
     (3) To qualify for a credit under this
section, all of the following are required:
     (a) The fueling station must be
constructed, installed and operated in accordance with ORS 469.160 to 469.180
and a certificate issued thereunder.
     (b) The contractor must present with the
claim for credit a verification form signed not only by the contractor but by
the owner, contract purchaser or tenant authorizing the contractor to claim the
credit and indicating that the owner, contract purchaser or tenant will not
claim a credit based upon the cost of the same fueling station under ORS
316.116 or this section.
     (c) The credit must be claimed for the tax
year in which the fueling station that has been certified under ORS 469.160 to
469.180 first is placed in service or the immediately succeeding tax year.
     (4) The credit allowed under this section
shall not affect the computation of basis for purposes of this chapter, nor
shall the credit affect the computation or be in lieu of any depreciation
deduction for the fueling station.
     (5) The credit allowed under this section
in any one year shall not exceed the tax liability of the taxpayer for that
year.
     (6) Any tax credit otherwise allowable
under this section that is not used by the taxpayer in a particular year may be
carried forward and offset against the taxpayerÂ’s tax liability for the next
succeeding tax year. Any credit remaining unused in such next succeeding tax
year may be carried forward and used in the second succeeding tax year, and
likewise any credit not used in that second succeeding tax year may be carried
forward and used in the third succeeding tax year, and any credit not used in
that third succeeding tax year may be carried forward and used in the fourth
succeeding tax year, and any credit not used in that fourth succeeding tax year
may be carried forward and used in the fifth succeeding tax year, but may not
be carried forward for any tax year thereafter.
     (7) The certificate and verification form
described under ORS 469.170 may be transferred by the contractor to the first
purchaser of the dwelling that incorporates the fueling station if the
purchaser intends to use the dwelling as a principal or secondary residence or,
in the case of construction or installation of a fueling station in an existing
dwelling, the current owner, if the current owner intends to use, or uses, the
dwelling as a principal or secondary residence. A certificate and verification
form so transferred may be used by the purchaser to claim a credit under ORS
316.116. [1997 c.534 §15; 1999 c.21 §47; 2001 c.584 §8]
     317.116 [Formerly 317.072; 1987 c.596 §3; 1989 c.802
§3; repealed by 1993 c.730 §29 (315.304 enacted in lieu of 316.097 and
317.116)]
     317.120 [1969 c.681 §5; repealed by 1983 c.162 §57]
     317.122
Insurers; amounts paid for certain taxes and assessments. (1) A credit against taxes imposed by this
chapter shall be allowed insurers for the gross premium tax paid on fire
insurance premiums in accordance with ORS 731.820.
     (2) A credit against the taxes otherwise
due under this chapter shall be allowed to an insurer. The amount of the credit
shall be the lesser of:
     (a) The amount of any assessments paid by
the insurer during the tax year pursuant to ORS 656.612; or
     (b) The total profit attributable to the
workersÂ’ compensation line of business, net of reinsurance and including all
investment gain attributable to the workersÂ’ compensation line of business,
determined in the manner prescribed under ORS 731.574 by the Director of the
Department of Consumer and Business Services, with the modifications under ORS
317.655 attributable to the workersÂ’ compensation line of business, and then
apportioned in accordance with ORS 317.660 and multiplied by the corporate tax
rate set forth in ORS 317.061. In making the apportionment under ORS 317.660
for purposes of this paragraph, the insurance sales factor shall be determined
using only items attributable to the workersÂ’ compensation line of business. [Formerly
317.076; 1995 c.786 §14; 2007 c.716 §2]
     Note: Section 5, chapter 716, Oregon Laws 2007,
provides:
     Sec.
5. The amendments to ORS
317.122 and 317.660 by sections 2 and 3 of this 2007 Act apply to tax years
beginning on or after January 1, 2007. [2007 c.716 §5]
(Temporary
provisions relating to mile-based or time-based motor vehicle insurance)
     Note: Sections 2 to 4, chapter 545, Oregon Laws
2003, provide:
     Sec.
2. (1) As used in this
section:
     (a) “Mile-based rating plan” means a
rating plan for which a unit of exposure is one mile traveled by the insured
motor vehicle.
     (b) “Time-based rating plan” means a
rating plan for which a unit of exposure is one minute or one hour traveled by
the insured motor vehicle.
     (c) “Unit of exposure” means a unit that
measures the loss exposure assumed by an insurer, the total of such units of
which is multiplied by the policy rate, or rates, to produce the policy
premium.
     (2) A corporation shall be allowed a
credit against the taxes that are otherwise due under this chapter or ORS
chapter 318 for providing motor vehicle insurance policies in this state that
are at least 70 percent based on a mile-based rating plan or a time-based
rating plan.
     (3) The amount of the credit shall equal
$100 for each vehicle insured under a policy described in subsection (2) of
this section that is issued in this state during the tax year.
     (4) The credit may not exceed $300 for
each policy described in subsection (2) of this section that is issued by the
taxpayer.
     (5) The total amount of credit allowed
under this section in a tax year may not exceed the tax liability of the
taxpayer and may not be carried forward to another tax year.
     (6) In order for credit to be claimed for
a policy under this section, the taxpayer must obtain a verified statement from
the policyholder stating that the policy for which a credit is claimed covers
all vehicles used at the household of the policyholder and owned, leased or
regularly operated by the policyholder or by an individual who is legally
related to the policyholder or who otherwise regularly shares vehicles with the
policyholder.
     (7) The credit may not be claimed with
respect to a policy for which a credit was allowed in a previous tax year.
[2003 c.545 §2]
     Sec.
3. Notwithstanding section 2
of this 2003 Act, if a credit claimed under section 2 of this 2003 Act, when
added to all previous credits allowed under section 2 of this 2003 Act by all
taxpayers for all tax years, exceeds $1 million, the credit shall be
disallowed. [2003 c.545 §3]
     Sec.
4. Sections 2 and 3 of this
2003 Act apply to tax years beginning on or after January 1, 2005, and before
January 1, 2010. [2003 c.545 §4]
(Long Term
Enterprise Zones)
     317.124
Long term enterprise zone facilities. (1) As used in this section:
     (a) “Facility” has the meaning given that
term in ORS 285C.400.
     (b) “Payroll costs” means the costs of
paying employee salary, wages and other remuneration in cash or property, and
employee benefit costs, including but not limited to workersÂ’ compensation,
health, life or other insurance premium payments, payroll taxes and
contributions to pension or other retirement plans.
     (2) A taxpayer that owns a facility that
is exempt from property tax under ORS 285C.409 may claim a tax credit under
this section against the taxes that are otherwise due under this chapter.
     (3) The credit may be claimed over a
period of consecutive tax years elected by the taxpayer:
     (a) That must commence on or after the tax
year in which the facility is placed in service and no later than the tax year
beginning in the third calendar year after the year in which the facility is
placed in service;
     (b) The duration of which must be at least
five tax years and no more than 15 tax years; and
     (c) The duration of which must be
established in writing by the Governor (pursuant to a request made by the
taxpayer) prior to the date on which a return claiming the credit is filed.
     (4) The amount of the credit for a tax
year shall equal 62.5 percent of the payroll costs of the taxpayer for that tax
year that are attributable to employment at the facility.
     (5) The credit computed under subsection
(4) of this section may be offset only against the qualified tax liability of
the taxpayer, as determined under this subsection. To compute the qualified tax
liability of the taxpayer:
     (a) Subtract the tax credit threshold
amount determined under subsection (7) of this section from the tax liability
of the taxpayer under this chapter; and
     (b) Multiply the difference determined
under paragraph (a) of this subsection by the apportionment factor determined
under subsection (6) of this section.
     (6)(a) The apportionment factor to be used
in computing the qualified tax liability of the taxpayer under subsection (5)
of this section shall be a fraction, the numerator of which is income of the
facility for the fiscal year of the taxpayer that ends in the tax year for
which the qualified tax liability of the taxpayer is being computed, and the
denominator of which is the total Oregon income of the taxpayer for the fiscal
year of the taxpayer that ends in the tax year for which the qualified tax
liability of the taxpayer is being computed. For purposes of this computation,
income shall be determined in accordance with generally accepted accounting
principles and shall be reviewed by an independent public accountant in a
review that is conducted in accordance with the Statements on Standards for
Accounting and Review Services issued by the American Institute of Certified
Public Accountants.
     (b)(A) If no data are prepared that meet
the accounting and review standards set forth in paragraph (a) of this
subsection, the apportionment factor shall be a fraction, the numerator of
which is the sum of the intrastate payroll factor and the intrastate property
factor, and the denominator of which is two.
     (B) The intrastate payroll factor is a
fraction, the numerator of which is the total amount paid for compensation at
the qualifying facility during the tax year for which the qualified tax
liability of the taxpayer is being computed, and the denominator of which is
the total amount of compensation paid in this state during that tax year.
     (C) The intrastate property factor is a
fraction, the numerator of which is the average net book value of the facility
for the tax year for which the qualified tax liability of the taxpayer is being
computed, and the denominator of which is the average net book value of all
real and tangible personal property owned or rented by the taxpayer in this
state for that tax year.
     (7) The tax credit threshold amount for
the tax year for which the qualified tax liability of the taxpayer is being
computed equals:
     (a) $1 million; or
     (b) If the facility is one described in
ORS 285C.412 (2) or (3), the lesser of $1 million or:
     (A) If the facility is one described in
ORS 285C.412 (2)(c)(A), $10,000 multiplied by the number of verified full-time
employees at the facility;
     (B) If the facility is one described in
ORS 285C.412 (2)(c)(B), $12,500 multiplied by the number of verified full-time
employees at the facility; or
     (C) If the facility is one described in
ORS 285C.412 (3) but not otherwise described under this paragraph, $15,000 multiplied
by the number of verified full-time employees at the facility.
     (8) A tax credit computed under this
section for any one tax year may not exceed the qualified tax liability of the
taxpayer for the tax year.
     (9) Any tax credit otherwise allowable under
this section that is not used by the taxpayer in a particular tax year may be
carried forward and offset against the taxpayerÂ’s qualified tax liability for
the next succeeding tax year. Any credit remaining unused in the next
succeeding tax year may be carried forward and used against the taxpayerÂ’s
qualified tax liability for the second succeeding tax year. Any credit
remaining unused in the second succeeding tax year may be carried forward and
used against the taxpayerÂ’s qualified tax liability for the third succeeding
tax year. Any credit remaining unused in the third succeeding tax year may be
carried forward and used against the taxpayerÂ’s qualified tax liability for the
fourth succeeding tax year. Any credit remaining unused in the fourth succeeding
tax year may be carried forward and used against the taxpayerÂ’s qualified tax
liability for the fifth succeeding tax year, but may not be used in any tax
year thereafter.
     (10) A tax credit allowed under this
section is not in lieu of any deduction for depreciation, amortization, payroll
costs or any other expense to which the taxpayer may be entitled. [2001 c.292 §8]
     317.125
Other tax credits limited; exception. Notwithstanding any other provision of law creating a tax credit
against corporate excise or income taxes, a taxpayer claiming a tax credit
under ORS 317.124 may not claim any type of tax credit otherwise authorized by
law against taxes that are otherwise due under this chapter that are equal to
or less than the tax credit threshold amount computed under ORS 317.124 (7), to
the extent the taxpayer offsets the taxpayerÂ’s tax liability for the tax year
with a credit allowed under ORS 317.124. Notwithstanding ORS 314.078, a
taxpayer may forgo using a tax credit otherwise allowed under ORS 317.124 in
order to use other tax credits in a tax year. [2001 c.292 §9; 2005 c.667 §4]
     317.127
Long Term Enterprise Zone Fund.
(1) The Long Term Enterprise Zone Fund is established, separate and distinct
from the General Fund.
     (2) Amounts credited to the Long Term
Enterprise Zone Fund are continuously appropriated to the Department of Revenue
for the purpose of making the distributions to local taxing districts described
in ORS 317.131.
     (3) Amounts in the Long Term Enterprise
Zone Fund remaining unexpended on June 30 of the end of a biennium are
transferred to the General Fund. [2001 c.292 §11]
     317.128
[Formerly 317.077; repealed
by 1987 c.769 §20]
     317.129
Tax payments of long term enterprise zone facilities credit claimants. Notwithstanding ORS 317.850, corporate
income or excise tax payments of a taxpayer allowed a tax credit under ORS
317.124 shall be deposited in the Long Term Enterprise Zone Fund established in
ORS 317.127, to the extent those payments do not exceed an amount estimated by
the Department of Revenue to equal 30 percent of the tax credit threshold
amount determined under ORS 317.124 (7) plus 30 percent of any remaining
qualified tax liability of the taxpayer under ORS 317.124 after allowance of
the credit. [2001 c.292 §10]
     317.131
Distribution of funds to local governments. (1) For each tax year in which a taxpayer is allowed a credit under
ORS 317.124, the Department of Revenue shall distribute to the local taxing
districts in which the facility that is the basis of the credit is located an
amount of tax payments that corresponds to the amount of payments deposited
under ORS 317.129.
     (2)(a) Amounts to be distributed under
subsection (1) of this section shall be distributed to the local taxing
districts of the code area in which the facility is located that are not school
districts, education service districts, community college districts or
community college service districts.
     (b) If the facility is located in more
than one code area, amounts to be distributed under subsection (1) of this section
shall be allocated to each code area in which the facility is located, based on
the ratio of the real market value of the facility in each code area to the
total real market value of the facility.
     (c) The amount distributed to each
district under subsection (1) of this section shall be the amount that bears
the same proportion to the total amount to be distributed under this section as
the proportion of the operating tax billing rate of the district receiving
distribution bears to the total operating tax billing rate of all of the local
taxing districts described in paragraph (a) of this subsection.
     (d) Notwithstanding paragraph (b) of this
subsection, the amount distributed to a local taxing district under subsection
(1) of this section for a fiscal year may not exceed the amount of property
taxes forgone by that district as a result of the exemption from property tax
under ORS 285C.409 in that year.
     (3) If any moneys described in subsection
(1) of this section remain following computation of the distributions to local
taxing districts under subsection (2) of this section, the moneys shall be
distributed to the zone sponsor.
     (4) Distributions shall be made under this
section on or before June 1 of each fiscal year. [2001 c.292 §12; 2005 c.667 §6]
     317.133 [Formerly 317.087; 1985 c.802 §22; 1991
c.877 §29; repealed by 1993 c.730 §9 (315.134 enacted in lieu of 316.084,
317.133 and 318.080)]
     317.134 [1991 c.928 §4; repealed by 1993 c.730 §25
(315.234 enacted in lieu of 316.133 and 317.134)]
     317.135 [1987 c.682 §5; 1989 c.625 §20; 1991 c.457 §11;
1991 c.877 §31; repealed by 1993 c.730 §21 (315.204 enacted in lieu of 316.134,
317.135 and 318.175)]
     317.140 [1987 c.911 §8d; 1991 c.877 §32; repealed by
1993 c.730 §37 (315.504 enacted in lieu of 316.104 and 317.140)]
     317.141 [1991 c.859 §6; repealed by 1993 c.730 §27
(315.254 enacted in lieu of 316.151, 317.141 and 318.085)]
     317.142 [1989 c.893 §§5,6; repealed by 1991 c.877 §41]
     317.145 [1989 c.924 §4; 1991 c.858 §11; 1991 c.877 §33;
repealed by 1993 c.730 §11 (315.138 enacted in lieu of 316.139 and 317.145)]
     317.146 [1989 c.963 §4; 1991 c.766 §4; 1991 c.877 §34;
repealed by 1993 c.730 §19 (315.164 enacted in lieu of 316.154 and 317.146)]
(Farmworker
Housing)
     317.147
Farmworker housing loans; credit transfers; rules. (1) As used in this section:
     (a) “Farmworker housing” has the meaning
given that term in ORS 315.163.
     (b) “Lending institution” means a bank,
mortgage banking company, trust company, savings bank, savings and loan
association, credit union, national banking association, federal savings and
loan association, federal credit union maintaining an office in this state,
nonprofit community development financial institution or nonprofit public
benefit corporation operating as a lending institution.
     (2)(a) A lending institution shall be
allowed a credit against the taxes otherwise due under this chapter for the tax
year equal to 50 percent of the interest income earned during the tax year on
loans to finance only costs directly associated with construction or
rehabilitation of farmworker housing if, at the time the loan is made, the
borrower certifies, to the satisfaction of the lender, that upon completion of
the construction or rehabilitation and first occupation by farmworkers, the housing
will comply with all occupational safety or health laws, rules, regulations and
standards applicable for farmworker housing and that the housing will be
occupied only by farmworkers and their immediate families.
     (b) A copy of the certification described
under paragraph (a) of this subsection shall be submitted to the Department of
Revenue at the time that a credit under this section is first claimed.
     (3) The credit allowed under this section
applies only to loans to construct or rehabilitate farmworker housing located
within this state.
     (4) This credit applies only to loans made
on or after January 1, 1990.
     (5) The credit allowed in any one year may
not exceed the tax liability of the taxpayer.
     (6) If the loan has a term of longer than
10 years, then the credit shall be allowed only for the tax year of the
taxpayer during which the loan is made and the nine tax years immediately
following.
     (7) The credit allowed under this section
does not apply to loans in which the interest rate charged exceeds 13-1/2
percent per annum.
     (8) The credit allowed under this section
applies only to interest income from the loan and does not apply to any other
loan fees or other charges collected by the lending institution with respect to
the loan.
     (9) The credit allowed under this section
applies only to interest income actually collected by the lending institution
during the tax year.
     (10)(a) Except as provided in paragraph
(b) of this subsection, if the lending institution sells the loan to another
lending institution, then the credit shall pass to the assignee or transferee
of the loan, subject to the same conditions and limitations as set forth in
this section.
     (b) A lending institution may assign, sell
or otherwise transfer the loan to another person and retain the right to claim
the credit granted under this section if the lending institution also retains
responsibility for servicing the loan.
     (c)(A) A lending institution that is not
subject to taxation under this chapter may sell or otherwise transfer the credit
allowed to the lending institution under this section to a taxpayer that is
subject to taxation under this chapter.
     (B) A transferee of a credit under this
section shall be allowed the credit for the tax years that would have been
allowable to the transferor had the transfer not occurred.
     (C) The Department of Revenue shall by
rule establish procedures for transferring a credit under this section. [1989
c.963 §5; 1991 c.766 §1; 1995 c.746 §54; 2001 c.613 §15; 2001 c.868 §6; 2003
c.46 §44; 2003 c.588 §16]
     317.148 [1985 c.521 §2; 1991 c.877 §30; repealed by
1993 c.730 §17 (315.156 enacted in lieu of 316.091, 317.148 and 318.104)]
     317.149 [1991 c.652 §10; repealed by 1993 c.730 §39
(315.604 enacted in lieu of 316.155 and 317.149)]
     317.150 [1985 c.438 §4; 1991 c.877 §23; repealed by
1993 c.730 §13 (315.148 enacted in lieu of 316.098, 317.150 and 318.102)]
(Education
and Research)
     317.151
Contributions of computers or scientific equipment for research to educational
organizations. (1) A credit
is allowed against the taxes otherwise due under this chapter. The amount of
the credit shall equal 10 percent of the fair market value of certain qualified
charitable contributions, as described in this section.
     (2) To qualify for the credit allowed
under subsection (1) of this section, the charitable contribution must:
     (a) Be a charitable contribution of
tangible personal property described in section 1221(a)(1) of the Internal
Revenue Code that has as its original use, use by the donee for education of
students in this state, and that is a computer or other scientific equipment or
apparatus; and
     (b) Be a charitable contribution made
during the tax year for which the credit is claimed to an educational
organization that is located in this state and that is:
     (A) An institution of higher education
described in section 170 (b)(1)(A)(ii) of the Internal Revenue Code; or
     (B) A public educational institution
offering instruction in prekindergarten through grade 12 or any portion of that
instruction.
     (3) Notwithstanding subsection (2) of this
section, a charitable contribution shall qualify for the credit allowed under
subsection (1) of this section, if:
     (a) The charitable contribution would
otherwise qualify for the credit under subsection (2) of this section except
that the charitable contribution is of a contract or agreement for the
maintenance of the computer or other scientific equipment or apparatus; or
     (b) The charitable contribution is a
contribution of moneys made under a contract or agreement during the tax year
for scientific or engineering research to an educational organization that is
located in this state and that is:
     (A) An institution of higher education
described in section 170 (b)(1)(A)(ii) of the Internal Revenue Code; or
     (B) A public educational institution
offering instruction in prekindergarten through grade 12 or any portion of that
instruction.
     (4) The credit allowed under this section
is in lieu of any deduction otherwise allowable under this chapter. No
deduction shall be allowed under this chapter for any amount upon which the
credit allowed under this section is based. However, nothing in this section
shall affect the basis of the property in the hands of the donee or any other
taxpayer. The basis of the property in the hands of the donee or other person
shall be determined as if this section did not exist.
     (5)(a) Except as provided in paragraph (b)
of this subsection, the credit allowed under this section shall not exceed the
tax liability of the taxpayer and shall not be allowed against the tax imposed
under ORS 317.090. To qualify for a credit under this section, the charitable
contribution must be made without consideration and be accepted by the donee
institution or school.
     (b) Any tax credit otherwise allowable
under this section that is not used by the taxpayer in a particular year may be
carried forward and offset against the taxpayerÂ’s tax liability for the next
succeeding tax year. Any credit remaining unused in that next succeeding tax
year may be carried forward and used in the second succeeding tax year, and
likewise any credit not used in that second succeeding tax year may be carried
forward and used in the third succeeding tax year, and any credit not used in
that third succeeding tax year may be carried forward and used in the fourth
succeeding tax year, and any credit not used in that fourth succeeding tax year
may be carried forward and used in the fifth succeeding tax year, but may not
be carried forward for any tax year thereafter.
     (6) For purposes of this section, “fair
market value” shall be determined at the time the property or services are
contributed and shall be substantiated by whatever information the Department
of Revenue requires. A requirement for substantiation may be waived partially,
conditionally or absolutely, as provided under ORS 315.063. [1985 c.695 §2;
1993 c.22 §1; 1995 c.54 §15; 1997 c.373 §1; 1997 c.839 §32; 1999 c.90 §24; 2001
c.660 §49]
     Note: Section 5, chapter 695, Oregon Laws 1985,
provides:
     Sec.
5. (1) Except as provided in
subsection (2) of this section, ORS 317.151 and 318.106 apply to contributions
made in tax years beginning prior to January 1, 2010.
     (2) With respect to the credit allowed for
a contribution as described in ORS 317.151 (3)(b) if a written contract or
other written agreement to make the contribution is entered into prior to
January 1, 2010, and the moneys contributed after that date are contributed
pursuant to the contract or agreement, then notwithstanding subsection (1) of
this section, the credit allowed as described in ORS 317.151 (3)(b) shall be
allowed for those contributions made pursuant to the written contract or other
written agreement entered into prior to January 1, 2010. [1985 c.695 §5; 1989
c.989 §1; 1997 c.373 §2; 2003 c.318 §1]
     317.152
Qualified research activities credit. (1) A credit against taxes otherwise due under this chapter shall be
allowed to eligible taxpayers for increases in qualified research expenses and
basic research payments. The credit shall be determined in accordance with
section 41 of the Internal Revenue Code, except as follows:
     (a) The applicable percentage specified in
section 41(a) of the Internal Revenue Code shall be five percent.
     (b) “Qualified research” and “basic
research” shall consist only of research conducted in
     (c) The following do not apply to the
credit allowable under this section:
     (A) Section 41(c)(4) of the Internal
Revenue Code (relating to the alternative incremental credit).
     (B) Section 41(h) of the Internal Revenue
Code (relating to termination of the federal credit).
     (2) For purposes of this section, “eligible
taxpayer” means a corporation, other than a corporation excluded under Internal
Revenue Code section 41(e)(7)(E).
     (3) The Income Tax Regulations as
prescribed by the Secretary of the Treasury under authority of section 41 of
the Internal Revenue Code apply for purposes of this section, except as
modified by this section or as provided in rules adopted by the Department of
Revenue.
     (4) The maximum credit under this section
may not exceed $2 million.
     (5) Any tax credit that is otherwise
allowable under this section and that is not used by the taxpayer in that year
may be carried forward and offset against the taxpayerÂ’s tax liability for the
next succeeding tax year. Any credit remaining unused in such next succeeding
tax year may be carried forward and used in the second succeeding tax year, and
likewise any credit not used in that second succeeding tax year may be carried
forward and used in the third succeeding tax year, and any credit not used in
that third succeeding tax year may be carried forward and used in the fourth
succeeding tax year, and any credit not used in that fourth succeeding tax year
may be carried forward and used in the fifth succeeding tax year, but may not
be carried forward for any tax year thereafter. [1989 c.911 §2; 1991 c.457 §12;
1993 c.726 §42; 1993 c.813 §11; 1995 c.79 §167; 1995 c.556 §14; 1995 c.746 §9;
1997 c.839 §33; 1999 c.90 §25; 2001 c.660 §50; 2003 c.739 §12; 2005 c.832 §51]
     317.153
Qualified research activities; election between credits; rules. A taxpayer may elect to claim the credit
allowed under ORS 317.152 or the credit allowed under ORS 317.154, but may not
claim both credits in the same tax year. The election shall be made in the
manner and within the time adopted by the Department of Revenue by rule. [1989
c.911 §3]
     317.154
Alternative qualified research activities credit. (1) A credit against taxes otherwise due
under this chapter shall be allowed for qualified research expenses that exceed
10 percent of
     (2) For purposes of this section:
     (a) “
     (b) “Qualified research” has the meaning
given the term under section 41(d) of the Internal Revenue Code and shall
consist only of research conducted in
     (3) The credit under this section is equal
to five percent of the amount by which the qualified research expenses exceed
10 percent of
     (4) The credit under this section shall
not exceed $10,000 times the number of percentage points by which the
qualifying research expenses exceed 10 percent of
     (5) The maximum credit under this section
may not exceed $2 million.
     (6) Any tax credit that is otherwise
allowable under this section and that is not used by the taxpayer in that year
may be carried forward and offset against the taxpayerÂ’s tax liability for the
next succeeding tax year. Any credit remaining unused in such next succeeding
tax year may be carried forward and used in the second succeeding tax year, and
likewise any credit not used in that second succeeding tax year may be carried
forward and used in the third succeeding tax year, and any credit not used in that
third succeeding tax year may be carried forward and used in the fourth
succeeding tax year, and any credit not used in that fourth succeeding tax year
may be carried forward and used in the fifth succeeding tax year, but may not
be carried forward for any tax year thereafter. [1989 c.911 §4; 1995 c.746 §10;
2001 c.660 §51; 2003 c.739 §13; 2005 c.832 §52]
     Note: Section 6, chapter 911, Oregon Laws 1989,
provides:
     Sec.
6. ORS 317.152 to 317.154
[series became 317.152, 317.153 and 317.154] apply to amounts paid or incurred
in tax years beginning on or after January 1, 1989, and before January 1, 2012.
[1989 c.911 §6; 1995 c.746 §14; 2001 c.548 §1; 2003 c.739 §15; 2005 c.94 §86]
     317.155 [Amended by 1969 c.600 §10; repealed by 1983
c.162 §57]
     317.156 [1967 c.274 §4; repealed by 1983 c.162 §57]
     317.160 [Repealed by 1983 c.162 §57]
     317.165 [Amended by 1981 c.812 §2; repealed by 1983
c.162 §57]
     317.170 [Amended by 1955 c.99 §1; subsection (3)
derived from 1955 c.99 §2; 1981 c.812 §1; repealed by 1983 c.162 §57]
     317.175 [Amended by 1955 c.128 §1; subsection (4)
derived from 1955 c.128 §2; repealed by 1983 c.162 §57]
     317.180 [Repealed by 1957 c.632 §1 (314.280 enacted
in lieu of 316.205 and 317.180)]
     317.185 [Repealed by 1957 c.632 §1 (314.285 enacted
in lieu of 316.210 and 317.185)]
DISSOLUTION
OF TAXPAYER
     317.190
Effect on reporting income.
In the case of the dissolution of a taxpayer, gains, profits and income are to
be returned for the tax year in which they are received by the taxpayer, unless
they have been reported at an earlier period in accordance with the approved
method of accounting followed by the taxpayer. If a taxpayer is dissolved,
there shall also be included in computing Oregon taxable income of the taxpayer
for the taxable period in which it is dissolved amounts accrued up to the date
of dissolution if not otherwise properly includable in respect of such period
or a prior period, regardless of the fact that the taxpayer may have kept its
books and made its returns on the basis of cash receipts and disbursements.
This section shall not apply with respect to crops not harvested within said
taxable period or to livestock. [1955 c.205 §2; 1983 c.162 §9]
     317.195
Effect on deductions allowed.
In the case of the dissolution of a taxpayer there shall be allowed as
deductions for the taxable period in which the taxpayer dissolved, regardless
of the fact that the taxpayer may have kept its books and made its returns on
the basis of cash receipts and disbursements, amounts accrued up to the date of
dissolution if not otherwise properly allowable in respect of such period or a
prior period under this chapter. [1955 c.205 §3]
     317.197 [1969 c.600 §§3,4,6; 1973 c.402 §22; 1981
c.705 §4; 1983 c.162 §32; renumbered 317.655]
     317.199 [1969 c.600 §7; 1983 c.162 §33; renumbered
317.660]
     317.205 [Repealed by 1959 c.389 §1 (317.206 enacted
in lieu of 317.205)]
     317.206 [1959 c.389 §2 (enacted in lieu of 317.205);
subsection (4) derived from 1959 c.389 §11; 1971 c.283 §3; repealed by 1983
c.162 §57]
     317.210 [Repealed by 1983 c.162 §57]
     317.215 [Amended by 1953 c.385 §9; 1957 c.338 §1;
part of subsections (10) and (11) of 1957 Replacement Part derived from 1957
c.338 §3; repealed by 1959 c.389 §3 (317.216 enacted in lieu of 317.215)]
     317.216 [1959 c.389 §4 (enacted in lieu of 317.215);
last sentence derived from 1959 c.389 §11; 1969 c.103 §2; 1969 c.493 §92; 1971
c.283 §4; 1977 c.866 §5; repealed by 1983 c.162 §57]
     317.220 [Amended by 1953 c.385 §9; 1975 c.650 §3;
1977 c.795 §13; repealed by 1983 c.162 §57]
     317.225 [Amended by 1981 c.705 §5; repealed by 1983
c.162 §57]
     317.228 [1969 c.681 §6; repealed by 1983 c.162 §57]
     317.230 [Amended by 1953 c.385 §9; repealed by 1959
c.389 §5 (317.231 enacted in lieu of 317.230)]
     317.231 [1959 c.389 §6 (enacted in lieu of 317.230);
subsection (9) derived from 1959 c.389 §11; repealed by 1983 c.162 §57]
     317.235 [Repealed by 1959 c.389 §7 (317.236 enacted
in lieu of 317.235 and 317.240)]
     317.236 [1959 c.389 §8 (enacted in lieu of 317.235
and 317.240); subsection (7) derived from 1959 c.389 §11; repealed by 1983
c.162 §57]
     317.238 [1965 c.460 §2; 1981 c.812 §3; repealed by
1983 c.162 §57]
     317.239 [1965 c.460 §§3,4; repealed by 1981 c.812 §4]
     317.240 [Repealed by 1959 c.389 §7 (317.236 enacted
in lieu of 317.235 and 317.240)]
     317.241 [1959 c.389 §10 (enacted in lieu of
317.242); subsection (4) derived from 1959 c.389 §11; 1969 c.493 §93; repealed
by 1983 c.162 §57]
     317.242 [1953 c.385 §9; repealed by 1959 c.389 §9
(317.241 enacted in lieu of 317.242)]
     317.245 [Repealed by 1983 c.162 §57]
     317.247 [1955 c.354 §2; 1957 c.338 §2; part of
subsection (4) derived from 1957 c.338 §3; subsection (5) enacted as 1963 c.180
§2; 1969 c.128 §1; repealed by 1983 c.162 §57]
     317.248 [1971 c.283 §2; repealed by 1983 c.162 §57]
     317.249 [1953 c.385 §9; 1975 c.705 §5; repealed by
1983 c.162 §57]
     317.250 [Amended by 1953 c.385 §9; repealed by 1975
c.705 §12]
     317.251 [1965 c.154 §4; 1969 c.493 §94; 1979 c.580 §1;
repealed by 1983 c.162 §57]
     317.252 [1965 c.178 §4; repealed by 1983 c.162 §57]
     317.255 [Amended by 1953 c.385 §9; 1979 c.517 §1;
repealed by 1983 c.162 §57]
     317.256 [1955 c.609 §2; 1979 c.517 §2; repealed by
1983 c.162 §57]
MODIFICATIONS
TO TAXABLE INCOME
     317.259
Modifications generally.
Federal taxable income, adopted under ORS 317.013 and 317.018, shall be
modified as provided by law. Each modification authorized under law shall be
allowed only to the extent that the modification is allocated and apportioned
to
     317.260 [Repealed by 1983 c.162 §57]
     317.262 [1953 c.385 §9; repealed by 1983 c.162 §57]
     317.265 [Amended by 1955 c.422 §1; subsection (4)
derived from 1955 c.422 §2; 1957 c.607 §5; subsection (5) derived from 1957
c.607 §11 and 1957 s.s. c.5 §1; repealed by 1983 c.162 §57]
     317.267
Dividends received by corporation from certain other corporations. (1) To derive Oregon taxable income, there
shall be added to federal taxable income amounts received as dividends from
corporations deducted for federal purposes pursuant to section 243 or 245 of
the Internal Revenue Code, except section 245(c) of the Internal Revenue Code,
amounts paid as dividends by a public utility or telecommunications utility and
deducted for federal purposes pursuant to section 247 of the Internal Revenue
Code or dividends eliminated under Treasury Regulations adopted under section
1502 of the Internal Revenue Code that are paid by members of an affiliated
group that are eliminated from a consolidated federal return pursuant to ORS
317.715 (2).
     (2) To derive Oregon taxable income, after
the modification prescribed under subsection (1) of this section, there shall
be subtracted from federal taxable income an amount equal to 70 percent of
dividends (determined without regard to section 78 of the Internal Revenue
Code) received or deemed received from corporations if such dividends are
included in federal taxable income. However:
     (a) In the case of any dividend on
debt-financed portfolio stock as described in section 246A of the Internal
Revenue Code, the subtraction allowed under this subsection shall be reduced
under the same conditions and in same amount as the dividends received deduction
otherwise allowable for federal income tax purposes is reduced under section
246A of the Internal Revenue Code.
     (b) In the case of any dividend received
from a 20 percent owned corporation, as defined in section 243(c) of the
Internal Revenue Code, this subsection shall be applied by substituting “80
percent” for “70 percent.”
     (c) A dividend that is not treated as a
dividend under section 243(d) or 965(c)(3) of the Internal Revenue Code may not
be treated as a dividend for purposes of this subsection.
     (d) If a dividends received deduction is
not allowed for federal tax purposes because of section 246(a) or (c) of the
Internal Revenue Code, a subtraction may not be made under this subsection for
received dividends that are described in section 246(a) or (c) of the Internal
Revenue Code.
     (3) There shall be excluded from the sales
factor of any apportionment formula employed to attribute income to this state
any amount subtracted from federal taxable income under subsection (2) of this
section. [1983 c.162 §13; 1984 c.1 §9; 1985 c.802 §33; 1987 c.293 §38; 1987
c.447 §119; 1987 c.911 §8i; 1989 c.625 §21; 2003 c.77 §21; 2005 c.80 §2; 2005
c.832 §33]
     317.270 [Amended by 1957 c.88 §1; repealed by 1983
c.162 §57]
     317.273
Dividend income received by domestic corporation from certain foreign
corporations. To derive
     317.275 [Repealed by 1983 c.162 §57]
     317.277 [1977 c.506 §2; repealed by 1983 c.162 §57]
     317.280 [Amended by 1953 c.385 §9; 1955 c.584 §1;
repealed by 1983 c.162 §57]
     317.281 [1983 c.162 §14a; 1985 c.802 §22a; repealed
by 1989 c.625 §81]
     317.283
Nonrecognition of transactions with related domestic international sales
corporation. (1) To derive
     (a) No deduction shall be allowed to any
taxpayer for any payment to a related domestic international sales corporation;
     (b) No income or expense that would be
attributed to a taxpayer but for the provisions of sections 991 to 996 of the
Internal Revenue Code shall be treated as attributable to a related domestic
international sales corporation; and
     (c) No deduction shall be allowed to a
taxpayer for interest on DISC-related deferred tax liability paid pursuant to
section 995 (f) of the Internal Revenue Code.
     (2) As used in this section, “domestic
international sales corporation” means a domestic international sales
corporation as defined in section 992 of the Internal Revenue Code. [1985 c.802
§22d]
     317.285 [Amended by 1957 s.s. c.15 §9; 1971 c.724 §1;
1977 c.89 §1; 1981 c.613 §4; 1983 c.162 §29; renumbered 317.368]
     317.286
Nonrecognition of transactions with related foreign sales corporation. (1) To derive
     (a) No deduction shall be allowed to a
taxpayer for any payment to a related foreign sales corporation; and
     (b) No income or expense that would be
attributed to a taxpayer but for the provisions of sections 921 to 927 of the
Internal Revenue Code shall be treated as attributable to a related foreign sales
corporation.
     (2) As used in this section, “foreign
sales corporation” means a foreign sales corporation as defined in section 922
of the Internal Revenue Code. [1985 c.802 §22e]
     317.287 [1961 c.608 §4; repealed by 1975 c.705 §12]
     317.288 [1983 c.162 §15; repealed by 1984 c.1 §18]
     317.290 [Amended by 1983 c.162 §30; renumbered
317.374]
     317.292 [1957 c.19 §2; repealed by 1983 c.162 §57]
     317.295 [Amended by 1953 c.385 §9; 1955 c.722 §1;
1961 c.565 §1; subsection (4) enacted as 1961 c.565 §2; 1971 c.246 §1; repealed
by 1983 c.162 §57]
     317.296 [1983 c.162 §16; repealed by 1984 c.1 §18]
     317.297 [1957 s.s. c.15 §§11,12; 1959 c.92 §2; 1983
c.162 §36; renumbered 317.476]
     317.298 [1961 c.505 §§2,3; 1969 c.493 §95; 1979
c.580 §2; repealed by 1983 c.162 §57]
     317.299 [1969 c.600 §8; 1983 c.162 §34; renumbered
317.665]
     317.300 [Amended by 1953 c.385 §9; repealed by 1983
c.162 §57]
     317.303
Deduction or adjustment for certain federal credits. If a taxpayer has taken a federal credit,
which requires as a condition of the use of the federal credit the reduction of
a corresponding deduction or basis, and the federal credit is not allowable for
     317.304
Addition for unused qualified business credits. There shall be added to federal taxable
income the amount taken as a deduction on the taxpayerÂ’s federal return for
unused qualified business credits under section 196 of the Internal Revenue
Code. [1995 c.556 §16]
     317.305 [1957 c.74 §2; repealed by 1983 c.162 §57]
     317.307
Reduction for charitable contribution deduction under federal law; subtraction. There shall be subtracted from federal
taxable income the amount by which a corporation must reduce its charitable
contribution deduction under section 170(d)(2)(B) of the Internal Revenue Code
(relating to carryovers of excess contributions for corporations). [1995 c.556 §17;
1997 c.839 §35]
     317.309
Interest and dividends received from obligations of state or political
subdivision. (1) To derive
Oregon taxable income, there shall be added to federal taxable income the
amount of any interest or dividends received during the taxable year from
obligations of a state or any political subdivision of a state (including
Oregon), exempt from federal taxation under the Internal Revenue Code. However,
the amount added under this subsection shall be reduced by any interest on
indebtedness incurred to carry the obligations or securities described in this
subsection, and by any expenses incurred in the production of interest or
dividend income described in this subsection.
     (2) A regulated investment company as
defined in section 851 of the Internal Revenue Code which distributes dividends
in excess of those deducted in the computation of federal taxable income, shall
to the extent of the amount added under subsection (1) of this section, deduct
such distributed excess in arriving at Oregon taxable income.
     (3) To derive Oregon taxable income, and
subject to the other provisions of this chapter, discount and gain or loss on
retirement or disposition of obligations described under subsection (1) of this
section issued on or after January 1, 1985, shall be treated in the same manner
as under sections 1271 to 1283 and other pertinent sections of the Internal
Revenue Code as if the obligations, although issued by a state or a political
subdivision of a state, were not tax exempt under the Internal Revenue Code. [1983
c.162 §18; 1985 c.802 §23; 1987 c.293 §39]
     317.310
Balance in bad debt reserve of financial institution which has changed from
reserve method to specific charge-off method of accounting. (1) To derive Oregon taxable income of a
financial institution which has changed from the reserve method of accounting
to the specific charge-off method of accounting for federal tax purposes, there
shall be subtracted from federal taxable income amounts which the financial
institution recognized pursuant to section 585(c)(3) of the Internal Revenue
Code.
     (2) To derive Oregon taxable income, after
the modification prescribed in subsection (1) of this section, the balance in
the reserve for bad debts, as determined under ORS 317.333 (2) (1985
Replacement Part), shall be taken into income using the same method as the
financial institution used for federal tax purposes pursuant to section
585(c)(3) of the Internal Revenue Code.
     (3) Subsections (1) and (2) of this
section shall not apply to bad debt reserves for which an election under section
585(c)(4) of the Internal Revenue Code has been made. A financial institution
which uses the method described in section 585(c)(4) of the Internal Revenue
Code shall apply that same method to the balance in the reserve for bad debts,
as determined under ORS 317.333 (2) (1985 Replacement Part), and adjust its
Oregon taxable income accordingly. [1987 c.293 §44]
     317.311
Application of section 243 of Tax Reform Act of 1986. Section 243 of the Tax Reform Act of 1986
(P.L. 99-514) does not apply for purposes of determining taxable income under
this chapter. [1987 c.293 §44a; 2005 c.94 §88]
     317.312
Federal depreciation expenses of certain health care service contractors. To derive Oregon taxable income, for certain
health care service contractors for which federal tax exempt status was denied
by section 501(m) of the Internal Revenue Code, and for which all assets owned
by the health care service contractor prior to the effective date of the denial
of exempt status are treated as placed in service on such effective date for
federal tax purposes, no adjustment shall be made to federal depreciation
expense. [1987 c.293 §44b]
     317.314
Taxes on net income or profits imposed by any state or foreign country;
nondeductible taxes and license fees; taxes paid to foreign country for certain
income. (1) To derive Oregon
taxable income, there shall be added to federal taxable income taxes upon or
measured by net income or profits imposed by any foreign country (including
withholding taxes upon the payment of dividends arising from sources within
such foreign country), this state or any state or territory deducted in
computing federal taxable income.
     (2) There shall be subtracted from federal
taxable income the taxes and license fees imposed by counties, cities and other
political subdivisions of this state and other states, if such taxes and fees
are not deductible in arriving at federal taxable income.
     (3) There shall be subtracted from federal
taxable income the taxes paid to a foreign country upon the payment of interest
or royalties arising from sources within such foreign country, if such taxes
are not deductible in arriving at federal taxable income and if the interest or
royalties are included in arriving at
     317.319
Capital Construction Fund; deferred income; nonqualified withdrawals. To derive
     (1) There shall be added to federal
taxable income an amount equal to the amount of income which the taxpayer
defers under section 607 of the Merchant Marine Act of 1936 -- Capital
Construction Fund (46 U.S.C. 1177), as amended, or under section 7518 of the
Internal Revenue Code.
     (2) There shall be subtracted from federal
taxable income all nonqualified withdrawals considered to be ordinary income or
capital gain under section 607 of the Merchant Marine Act of 1936 -- Capital
Construction Fund (46 U.S.C. 1177), as amended, or under section 7518 of the
Internal Revenue Code, and included in income for federal income tax purposes.
     (3) No adjustments to basis shall be made
for Oregon tax purposes to property on account of section 607 of the Merchant
Marine Act of 1936 -- Capital Construction Fund (46 U.S.C. 1177), as amended,
or under section 7518 of the Internal Revenue Code. There shall be added to or
subtracted from federal taxable income those amounts necessary to carry out the
purposes of this subsection. [1983 c.162 §20; 1987 c.293 §40]
     317.320 [1969 c.493 §73; 1973 c.402 §23; repealed by
1983 c.162 §57]
     317.322
Addition of long term care insurance premiums if credit is claimed. The amount of any long term care insurance
premiums paid or incurred by a taxpayer during the tax year shall be added to
taxable income if:
     (1) The amount is taken into account as a
deduction on the taxpayerÂ’s federal return for the tax year; and
     (2) The taxpayer claims the credit allowed
under ORS 315.610 for the tax year. [1999 c.1005 §5]
     317.325 [1973 c.115 §5; repealed by 1983 c.162 §57]
     317.326 [1983 c.162 §21; repealed by 2001 c.509 §19]
     317.327
Modification of taxable income when deferred gain is recognized as result of
out-of-state disposition of property; rules. (1) If gain is deferred upon the voluntary or involuntary disposition
of property in an exchange that qualifies for deferral under section 1031 or
1033 of the Internal Revenue Code, and the property acquired in the exchange
has a situs outside of this state, upon the sale or other disposition of the
acquired property in a transaction in which gain or loss is recognized for
federal tax purposes but is not taken into account in computing taxable income
for Oregon tax purposes, there shall be added to taxable income the difference
between:
     (a) The adjusted basis of the acquired
property on the date the exchange under section 1031 or 1033 of the Internal
Revenue Code was completed; and
     (b) The lesser of:
     (A) The fair market value of the acquired
property on the date the exchange under section 1031 or 1033 of the Internal
Revenue Code was completed; or
     (B) The fair market value of the acquired
property on the date gain or loss from the sale or other disposition of the
acquired property is recognized for federal tax purposes.
     (2) If the adjusted basis described in
subsection (1)(a) of this section is larger than either value described in
subsection (1)(b) of this section, the difference computed under subsection (1)
of this section shall be subtracted from taxable income instead of being added
to taxable income.
     (3) The Department of Revenue may require
taxpayers owning property acquired in an exchange under section 1031 or 1033 of
the Internal Revenue Code that has a situs outside of this state to file an
annual report on the acquired property, and may adopt rules to implement
reporting requirements under this section. [2001 c.509 §17]
     317.328 [1979 c.414 §4; 1983 c.162 §31; renumbered
317.381]
     317.329
Basis for stock acquisition.
A corporation shall have the same basis for state excise or income tax purposes
as for federal income tax purposes for assets:
     (1) If the corporation engages in a
qualified stock purchase on or after August 31, 1982, and elects (or is treated
as having elected) section 338 of the Internal Revenue Code; or
     (2) If the corporation, before August 31,
1982, engaged in the purchase of stock which was treated as a purchase of assets
(a purchase and liquidation or similar transaction) resulting in the
recognition of gain or loss for
     317.330 [1973 c.753 §5; repealed by 1979 c.414 §7]
     317.333 [1983 c.162 §22; repealed by 1987 c.293 §70]
     317.335 [1973 c.753 §6; repealed by 1979 c.414 §7]
     317.339 [1983 c.162 §23; repealed by 1984 c.1 §18]
     317.342 [1985 c.802 §49; repealed by 1997 c.839 §69]
     317.344
Net operating loss carryback and carryover. There shall be added to federal taxable income the amount of any net
operating loss carryback or carryover allowed in arriving at federal taxable
income. [1983 c.162 §24; 1984 c.1 §11]
     317.349
Transaction treated as lease purchase under federal law. To derive Oregon taxable income, federal
taxable income shall be modified to the extent necessary to not treat as a
lease purchase or in any other way recognize for Oregon tax purposes a
transaction entered into pursuant to section 168(f) (8) of the Internal Revenue
Code as that section was in effect prior to January 1, 1987, or as applicable
under section 204(b) of the Tax Reform Act of 1986 (Public Law 99-514) on and after
January 1, 1987 (relating to certain leases of qualified farm property or
automotive manufacturing equipment). [1983 c.162 §25; 1997 c.99 §4]
     317.350 [1959 c.631 §§4,5; repealed by 1983 c.162 §57]
     317.351
ORS 317.349 not applicable to finance leases. Notwithstanding ORS 317.349, finance leases as described in section
168(f)(8) of the Internal Revenue Code, as that section was amended and in
effect for purposes of ORS 317.349, shall be accorded the same treatment for
Oregon tax purposes as they are for federal tax purposes. [1987 c.293 §45; 2003
c.77 §22]
     317.355 [Repealed by 1957 c.632 §1 (314.385 enacted
in lieu of 316.545 and 317.355)]
     317.356
Basis on disposition of asset; adjustments to reflect depreciation, depletion,
other cost recovery, federal credits and other differences in
     (a) The difference in basis that results
from the difference in depreciation, depletion or other cost recovery, or
expense claimed under section 179 of the Internal Revenue Code, allowed or
allowable on the Oregon return and that allowed or allowable on the federal
return for that asset;
     (b) The difference in basis that results
when a taxpayer has taken a federal credit that requires as a condition of the
use of the federal credit the reduction of the basis of an asset, and the
federal credit is not allowable for Oregon purposes;
     (c) The difference in basis as a result of
any deferral of gain that has been granted under federal tax law but not under
Oregon law or granted under Oregon law but not granted under federal law;
     (d) The difference in basis under federal
and
     (e) For certain health care service
contractors for which federal tax exempt status was denied by section 501(m) of
the Internal Revenue Code, any adjustment to the basis of an asset for purposes
of calculating federal taxable gain or loss on sale, exchange or other
disposition as permitted by the Tax Reform Act of 1986.
     (2) There shall be added to or subtracted
from federal taxable income any amount necessary to carry out the purposes of
subsection (1) of this section. [1983 c.162 §26; 1985 c.802 §24; 1987 c.293 §45e;
1993 c.726 §44; 2001 c.114 §41]
     317.360 [Repealed by 1975 c.760 §3]
     317.362
Reversal of effect of gain or loss in case of timber, coal, domestic iron ore. To derive
     317.365 [Repealed by 1957 c.632 §1 (314.365 enacted
in lieu of 316.550 and 317.365)]
     317.368 [Formerly 317.285; 1984 c.1 §12; 1985 c.802 §26;
repealed by 1999 c.580 §10]
     317.370 [Repealed by 1957 c.632 §1 (314.420 enacted
in lieu of 316.620, 317.370 and 317.420)]
     317.374
Depletion. (1) To the extent
that the amount allowed as a deduction for depletion under section 611 of the
Internal Revenue Code exceeds, or is less than, the amount determined as the
Oregon depletion allowance under subsection (2) or (3) of this section, to
derive Oregon taxable income, the difference shall be added to or subtracted
from federal taxable income.
     (2) For purposes of subsection (1) of this
section, in the case of timber, mines, oil and gas wells, and other natural
deposits, except in the case of metal mines as provided in subsection (3) of
this section, the
     (3) In the case of metal mines, the Oregon
depletion allowance may be the amount allowed under subsection (2) of this
section or an amount equal to 15 percent of the gross income from the property
during the taxable year, not to exceed 50 percent of the net income of the
taxpayer (computed without allowance for depletion) from the property. In its
first return made under this chapter, the taxpayer must state as to each
property with respect to which the taxpayer has any item of income or deduction
(in case of metal mines), whether it elects to have depletion allowance for
each such property for the taxable year computed with or without reference to
percentage depletion. An election once exercised under this section cannot
thereafter be changed by the taxpayer, and the depletion allowance in respect
to each such property will for all succeeding taxable years be computed in
accordance with the election so made. [Formerly 317.290]
     317.375 [Repealed by 1957 c.632 §1 (314.295 enacted
in lieu of 316.560 and 317.375)]
     317.377 [1989 c.625 §23; 1993 c.726 §45; renumbered
317.479 in 1995]
     317.379
Exemption of income from exercise of Indian fishing rights. Income derived from the exercise of rights
of any Indian tribe to fish secured by treaty, Executive order or Act of
Congress is exempt from the tax imposed by this chapter if section 7873 of the
Internal Revenue Code does not permit a like federal tax to be imposed on such
income. [1989 c.625 §18]
     317.380 [Repealed by 1957 c.632 §1 (314.380 enacted
in lieu of 316.565 and 317.380)]
     317.381 [Formerly 317.328; 1985 c.802 §27; repealed
by 1987 c.293 §70]
     317.383
Underground storage tank pollution prevention or essential services grant. In addition to the modifications to federal
taxable income contained in this chapter, there shall be subtracted from
federal taxable income the amount of any underground storage tank pollution
prevention or essential services grant made by the Department of Environmental
Quality under section 6, chapter 863, Oregon Laws 1991, to any taxpayer. [1991
c.863 §35]
     317.386
Energy conservation payments exempt. Any amount received as a cash payment for energy conservation measures
under ORS 469.631 to 469.687 is exempt from the tax imposed under this chapter.
[Formerly 317.083; 1985 c.802 §28]
     317.388
Claim of right income repayment adjustment when credit is claimed. There shall be added to federal taxable
income any amount taken as a deduction under section 1341 of the Internal
Revenue Code in computing federal taxable income for the tax year, if the
taxpayer has claimed a credit for claim of right income repayment adjustment
under ORS 315.068. [1999 c.1007 §5]
     317.390 [Amended by 1957 c.607 §6; 1959 c.156 §2;
subsection (3) derived from 1959 c.156 §3; repealed by 1969 c.166 §8]
     317.391
Small city business development exemption. (1) For each tax year in which a business firm has received an annual
certification for a facility under ORS 285C.506, the income of the business
firm that is apportionable to the certified facility shall be exempt from tax
under this chapter.
     (2) The income of a business firm that is
exempt under this section shall be determined by multiplying the taxable income
of the business firm (as determined before application of this section) by the
sum of:
     (a) 50 percent of the ratio of the payroll
of the business firm from employment at the certified facility over total
statewide payroll of the business firm, as determined under ORS 314.660; and
     (b) 50 percent of the ratio of the average
value of the property of the business firm at the certified facility over the
average value of the property of the business firm statewide, as determined
under ORS 314.655.
     (3) The sum computed under subsection (2)
of this section shall be the amount of the business firmÂ’s income that is
exempt from tax under this chapter.
     (4) As used in this section:
     (a) “Business firm” has the meaning given
that term in ORS 285C.500.
     (b) “Certified facility” means a facility,
as defined in ORS 285C.500, for which an annual certification under ORS
285C.506 has been issued. [2001 c.944 §8]
     317.392 [Formerly 317.098; repealed by 1993 c.475 §3]
     317.394
Qualifying film production labor rebates. If the amount received as a labor rebate under section 1, chapter 559,
Oregon Laws 2005, is included in federal taxable income for federal tax
purposes, then the amount shall be subtracted from federal taxable income for
purposes of determining
     317.395 [Amended by 1957 c.607 §7; renumbered
317.504]
     317.398
Qualified production activities income. A taxpayer that is allowed a deduction for qualified production
activities income under section 199 of the Internal Revenue Code for federal
tax purposes shall add the amount deducted to federal taxable income for
purposes of the tax imposed by this chapter. [2005 c.832 §44]
     317.401
Addition for federal prescription drug plan subsidies excluded for federal tax
purposes. A taxpayer that is
allowed an exclusion from gross income under section 139A of the Internal
Revenue Code for federal tax purposes shall add the amount excluded to federal
taxable income for purposes of the tax imposed by this chapter. [2005 c.832 §45]
(Temporary
provisions relating to exemption for certain sales of manufactured dwelling
parks)
     Note: Sections 9 and 10, chapter 826, Oregon Laws
2005, provide:
     Sec.
9. Amounts received as a
result of the sale of a manufactured dwelling park to a tenantsÂ’ association,
facility purchase association or tenantsÂ’ association supported nonprofit
organization as described in ORS 90.820, to a community development corporation
as described in ORS 458.210 or to a housing authority as defined in ORS 456.005
are exempt from the tax imposed by this chapter [ORS chapter 317]. [2005 c.826 §9]
     Sec.
10. Section 9, chapter 826,
Oregon Laws 2005, applies to tax years beginning on or after January 1, 2006,
and before January 1, 2014. [2005 c.826 §10; 2007 c.906 §22]
     317.405 [Amended by 1955 c.587 §1; repealed by 1957
c.632 §1 (314.405 enacted in lieu of 316.605 and 317.405)]
     317.410 [Amended by 1953 c.385 §9; 1955 c.581 §2;
1957 c.20 §1; repealed by 1957 c.632 §1 (314.410 enacted in lieu of 316.610 and
317.410)]
     317.415 [Amended by 1953 c.385 §9; 1955 c.581 §1;
repealed by 1957 c.632 §1 (314.415 enacted in lieu of 316.615 and 317.415)]
     317.420 [Amended by 1955 c.356 §1; repealed by 1957
c.632 §1 (314.420 enacted in lieu of 316.620, 317.370 and 317.420)]
     317.425 [Repealed by 1957 c.632 §1 (314.425 enacted
in lieu of 316.625 and 317.425)]
     317.430 [Repealed by 1957 c.632 §1 (314.430 enacted
in lieu of 316.630 and 317.430)]
     317.435 [Repealed by 1957 c.632 §1 (314.435 enacted
in lieu of 316.635 and 317.435)]
     317.440 [Repealed by 1957 c.632 §1 (314.440 enacted
in lieu of 316.640, 317.440 and 317.445)]
     317.445 [Repealed by 1957 c.632 §1 (314.440 enacted
in lieu of 316.640, 317.440 and 317.445)]
     317.450 [Amended by 1957 c.607 §8; 1961 c.504 §4;
repealed by 1969 c.166 §8]
     317.455 [Repealed by 1957 c.632 §1 (314.445 enacted
in lieu of 316.650 and 317.455)]
     317.460 [Repealed by 1957 c.632 §1 (subsections (1)
and (2) of 314.450 enacted in lieu of 316.655 and 317.460)]
     317.465 [Repealed by 1957 c.632 §1 (314.455 enacted
in lieu of 316.660 and 317.465)]
     317.470 [Amended by 1953 c.385 §9; 1955 c.585 §1;
repealed by 1957 c.632 §1 (314.460 enacted in lieu of 316.665 and 317.470)]
     317.475 [Repealed by 1957 c.632 §1 (314.465 enacted
in lieu of 316.670 and 317.475)]
     317.476
Net losses of prior years.
(1) In computing
     (2) As used in this section, “
     (3) In computing
     (4)(a) The
     (b) The amount of the Oregon net loss
deductible in any taxable year shall be the Oregon net loss of a prior year
reduced by the net income (computed without the Oregon net loss deduction) of
any intervening taxable year or years between the year of loss and the
succeeding taxable year in which the Oregon net loss deduction is claimed.
     (c) The
     (5) No deduction shall be allowed under
this section to a business trust which qualifies as a “real estate investment
trust” under sections 856, 857 and 858 of the Internal Revenue Code. [Formerly
317.297; 1987 c.293 §45d]
     317.478
Pre-change and built-in losses.
(1) That portion of the pre-change and built-in losses which the taxpayer
deducted pursuant to section 382 of the Internal Revenue Code shall be added to
federal taxable income under ORS 317.344 or otherwise.
     (2) Pre-change losses and recognized
built-in losses, subject to the limitation under section 382 of the Internal
Revenue Code, shall not be considered in determining the taxable loss and taxable
loss carry forward under ORS 317.010 and 317.476.
     (3) Any pre-change losses and built-in
losses, to the extent apportioned or allocated to Oregon, with the additions,
subtractions, modifications and other adjustments required for purposes of this
chapter, shall be carried forward and subtracted in computing Oregon taxable
income as provided under subsections (4) to (6) of this section.
     (4) The amount of loss allowable under
subsection (3) of this section in any tax year shall not exceed the lesser of
the Oregon source taxable income of the new loss corporation or the Oregon
percentage of the section 382 limitation determined, or in the case of a
corporation for which no section 382 limitation is determined, as would be
determined under section 382 (b) of the Internal Revenue Code. The
     (5) In computing
     (6)
     317.479
Limitation on use of preacquisition losses to offset built-in gain. (1) Preacquisition losses, as described
under section 384 of the Internal Revenue Code, to the extent allocated or
apportioned to
     (2) If any preacquisition loss, as
described in subsection (1) of this section, may not offset a recognized
built-in gain by reason of section 384 of the Internal Revenue Code, such gain
shall not be taken into account in determining under ORS 317.476 the amount of
such loss which may be carried to other taxable years.
     (3) In any case in which a preacquisition
loss, as described in subsection (1) of this section, for any taxable year is
subject to limitation under subsection (1) of this section and a taxable loss
from such taxable year is not subject to such limitation, taxable income shall
be treated as having been offset first by the loss subject to such limitation.
     (4) The definitions contained in section
384(c) of the Internal Revenue Code shall apply for purposes of this section,
except that where appropriate, gain, loss and items of income shall be
determined as allocated or apportioned to
     (5) Section 384(b) and (c)(5) and (6) of
the Internal Revenue Code shall be applied for purposes of this section in a
manner consistent with ORS 317.705 to 317.715, 317.720 and 317.725. [Formerly
317.377; 2007 c.323 §2]
     Note: Section 3, chapter 323, Oregon Laws 2007,
provides:
     Sec.
3. The amendments to ORS
317.705 and 317.479 by sections 1 and 2 of this 2007 Act apply to tax years
beginning on or after January 1, 2007. [2007 c.323 §3]
     317.480 [Repealed by 1957 c.632 §1 (314.470 enacted
in lieu of 316.675 and 317.480)]
     317.485
Loss carryforward after reorganization; construction. Unless specifically required otherwise under
this chapter, nothing in this chapter shall be construed to require that after
a reorganization a loss carryforward may be allowed only if the income against
which the loss is offset is from substantially the same business activities or
assets which incurred the loss. [1991 c.457 §9b]
     317.488
Qualified donations and sales to educational institutions. (1) As used in this section:
     (a) “Educational institution” means:
     (A) A public common or union high school
district;
     (B) A private school that has been
registered under ORS 345.505 to 345.575 and that is an organization described
in section 501(c)(3) of the Internal Revenue Code;
     (C) An accredited public community
college, college or university located in this state; or
     (D) An accredited private community
college, college or university located in this state that is an organization
described in section 501(c)(3) of the Internal Revenue Code.
     (b) “Qualified donation” means a transfer
of a fee estate in land from a taxpayer to an educational institution without
consideration of any kind given to the taxpayer by the educational institution
in exchange for the land.
     (c) “Qualified reduced sale” means a
transfer of a fee estate in land by a taxpayer to an educational institution
for consideration paid by the educational institution that is less than the
fair market value of the land at the time of transfer.
     (2) There shall be added to federal
taxable income the amount that otherwise would be taken into account as a
charitable contribution deduction for a qualified donation or a qualified
reduced sale pursuant to section 170 of the Internal Revenue Code.
     (3) In the case of a qualified donation
made by the taxpayer during the tax year, the fair market value of the
qualified donation shall be subtracted from federal taxable income.
     (4) In the case of a qualified reduced
sale made by the taxpayer during the tax year, the difference between the fair
market value of the land and the sale price of the land shall be subtracted
from federal taxable income.
     (5) Notwithstanding subsections (3) and
(4) of this section, the subtraction allowed under this section may not exceed:
     (a) In the case of a qualified donation,
50 percent of Oregon taxable income computed without regard to this section,
ORS 317.476 or section 170 of the Internal Revenue Code; or
     (b) In the case of a qualified reduced
sale, 25 percent of
     (6) Any subtraction not allowed because of
the limitations imposed under subsection (5) of this section may be carried
forward and claimed as a subtraction in the next succeeding tax year. Any
amount remaining unused in the next succeeding tax year may be carried forward
and used in the second succeeding tax year, and likewise until the 15th
succeeding tax year, but may not be carried beyond the 15th succeeding tax
year. [1999 c.358 §4]
     Note: Section 6, chapter 358, Oregon Laws 1999,
provides:
     Sec.
6. Sections 2 and 4 of this
1999 Act [316.852 and 317.488] apply to donations and reduced sales occurring
in tax years beginning on or after January 1, 2000, and before January 1, 2008.
[1999 c.358 §6]
RETURNS AND
PAYMENT OF TAX
     317.504
Date return considered filed or advance payment considered made. A return filed before the last day
prescribed by law for the filing thereof shall be considered as filed on the
last day. An advance payment of any portion of the tax made at the time the
return was filed shall be considered as made on the last day prescribed by law
for the payment of the tax. The last day prescribed by law for filing the
return or paying the tax shall be determined without regard to any extension of
time granted the taxpayer by the Department of Revenue. [Formerly 317.395]
     317.505 [Repealed by 1957 c.632 §1 (314.805 enacted
in lieu of 316.705 and 317.505; and 314.815 enacted in lieu of 316.720 and
317.505)]
     317.510
Requiring additional reports and information. The Department of Revenue may order additional reports or such other
information it deems necessary in addition to the regular reports provided in
this chapter. All reports and returns, as provided in this chapter, shall be
upon standard forms, adopted by the department, with no more detailed
information relating to the taxpayerÂ’s business than is necessary to enable the
department to administer fully the provisions of this chapter.
     317.514 [1983 c.162 §37; repealed by 1984 c.1 §18]
     317.515 [Renumbered 317.845]
     317.520 [Repealed by 1957 c.632 §1 (314.820 enacted
in lieu of 316.725 and 317.520)]
     317.525 [Repealed by 1957 c.632 §1 (314.825 enacted
in lieu of 316.730 and 317.525)]
     317.530 [Repealed by 1957 c.632 §1 (314.830 enacted
in lieu of 316.735 and 317.530)]
     317.535 [Amended by 1957 c.76 §1; repealed by 1957
c.632 §1 (314.835 enacted in lieu of 316.740 and 317.535)]
     317.540 [Repealed by 1957 c.632 §1 (314.840 enacted
in lieu of 316.745 and 317.540)]
     317.545 [Repealed by 1957 c.632 §1 (314.845 enacted
in lieu of 316.750 and 317.545)]
     317.550 [Repealed by 1957 c.632 §1 (314.855 enacted
in lieu of 316.760 and 317.550)]
     317.590 [Amended by 1953 c.309 §2; 1955 c.35 §1;
1957 c.528 §4; renumbered 317.850]
     317.605 [Amended by 1953 c.331 §2; renumbered
314.210]
     317.610 [Renumbered 314.220]
     317.615 [Renumbered 314.230]
FOREIGN
INCOME; DOMESTIC INTERNATIONAL SALES CORPORATIONS; INSURERS
     317.625
Income from sources without the
     317.635
Domestic international sales corporation. Except as provided in ORS 317.283, a domestic international sales
corporation, commonly referred to as “DISC,” as defined in section 992 of the
Internal Revenue Code, shall be taxed in the manner provided for other
corporations under this chapter and without regard to sections 991 to 996 of
the Internal Revenue Code. [1983 c.162 §39; 1985 c.802 §22b]
     317.650
Insurers; depreciation and basis provisions; confidentiality of returns;
calendar year filing of returns required. (1) ORS 317.356, relating to depreciation and basis, shall be
applicable to every insurer.
     (2) Notwithstanding ORS 314.835 or 314.840
or any other law concerning confidentiality of tax returns, the Department of
Consumer and Business Services and the Department of Revenue may disclose to
each other returns and all other information necessary to carry out ORS 731.854
and 731.859 and otherwise to administer the corporate excise tax imposed by
this chapter on insurers.
     (3) Notwithstanding ORS 314.085 or other
law, for purposes of this chapter, each of the following insurers shall file a
return on a calendar year basis:
     (a) A foreign or alien insurer; or
     (b) A domestic insurer organized after
January 1, 1971, the ownership or control of which is exercised, directly or
indirectly, by a foreign insurer or other foreign corporation owning or
controlling directly or indirectly, a foreign insurer. [Formerly 317.078; 1995
c.556 §52; 1995 c.786 §15; 2005 c.185 §7]
     317.655
Taxable income of insurer; computation; exclusion for certain life insurance or
annuity accounts. (1) For
purposes of the tax imposed under ORS 317.070, the Oregon taxable income of an
insurer shall be the insurer’s “net gain from operations” or “net income”
determined in the manner prescribed by the Department of Consumer and Business
Services on its Annual Statement Form for the taxable year, as adjusted
pursuant to ORS 317.010 (11), 317.122 and 317.650 to 317.665.
     (2) The
     (a) Add the amount of federal and state
income taxes deducted by the insurer in computing its net gain from operations.
     (b) Add penalty interest received by the
insurer arising out of prepayment of loans made by the insurer.
     (c) Add realized gains and losses on sales
or exchanges by the insurer of property.
     (d) Subtract, if the insurer so elects,
additional or accelerated depreciation on real and personal property that is in
excess of the depreciation deducted by the method used in computing the insurerÂ’s
net gain from operations.
     (e) Subtract that amortized portion of the
contribution for past service credits made to qualified plans and exempt trusts
for employees allowed as a deduction.
     (f) Add or subtract, as appropriate,
increases or decreases in mandatory reserves that the insurer is required to
maintain by law or by rules or directives of the Director of the Department of
Consumer and Business Services or the insurance director or commissioner of the
state of domicile of the foreign or alien insurer, other than increases or
decreases that (A) are deducted in arriving at the insurerÂ’s net gain from
operations, or (B) result from net gains or losses, realized or unrealized, in
the value of the insurerÂ’s property and investments.
     (g) Add or subtract, as appropriate,
increases or decreases in reserves for policies and obligations outstanding
before the beginning of the taxable year resulting from changes in the bases
and methods of computing such reserves that are justified by accounting and
actuarial practices applicable to or accepted by the insurance industry,
commonly known as “reserve strengthening” or “reserve weakening.”
     (3) Income, expenses, gains, losses,
exclusions, deductions, assets, reserves, liabilities and other items properly
attributable to one or more separate accounts authorized under ORS 733.220
shall not be taken into account in determining taxable income of an insurer
under ORS 317.010 (11), 317.122 and 317.650 to 317.665 until such amounts or items
are returned to and reflected on the general accounts of such insurer so as to
be available generally to or for the benefit of contract and policyholders of
the insurer. [Formerly 317.197; 1995 c.786 §16]
     317.660
Allocation of net income where insurer has both in-state and out-of-state
business. (1)(a) If the
income of an insurer is derived from business done both within and without this
state, the determination of
     (b) The insurance sales factor shall
consist of a fraction, the numerator of which is the amount of direct premiums
(excluding reinsurance accepted and without deduction of reinsurance ceded)
received or earned by the insurer during the tax year on policies and contracts
that are allocated to this state and to other jurisdictions in which the
insurer is not authorized to do business, and the denominator of which is the
total of such premiums received or earned by the insurer during the tax year on
policies and contracts that had been sold within and without this state.
     (2) For purposes of this section:
     (a) “Net income” means net income properly
recorded in the statement of income reported in the annual statement filed by
the insurer with the Director of the Department of Consumer and Business
Services.
     (b) “Premiums” means sums properly
included in those schedules of the annual statement filed by the insurer with
the Director of the Department of Consumer and Business Services that
appropriately allocate premiums by jurisdiction. If the exclusion of
reinsurance premiums results in an insurance sales factor that does not fairly
represent the extent of the taxpayerÂ’s activity in this state, the taxpayer may
petition for and the Department of Revenue may permit, or the Department of
Revenue may require, the inclusion of reinsurance premiums in the insurance
sales factor. If the annual statement of the insurer does not report received
premiums then the insurance sales factor shall be determined based on earned
premiums.
     (3) If application of the apportionment
formula described in subsection (1) of this section results in an apportionment
that does not fairly and equitably represent the taxpayerÂ’s insurance business
activity in this state, the taxpayer may petition the Department of Revenue for
and the department may permit, or the department may require, to achieve an
apportionment that fairly and equitably represents the taxpayerÂ’s insurance
business activity:
     (a)(A) The exclusion of the insurance
sales factor; and
     (B) The inclusion of one or more
additional factors that will fairly and equitably represent the taxpayerÂ’s
business activity in this state;
     (b) The inclusion of the insurance sales
factor and one or more additional factors that will fairly and equitably
represent the taxpayerÂ’s business activity in this state; or
     (c) The employment of any other method to
achieve a fair and equitable apportionment of the taxpayerÂ’s income. [Formerly
317.199; 1995 c.786 §17; 1999 c.143 §11; 2007 c.716 §§1,3]
     Note: See first note under 317.122.
     317.665
UNITARY TAX
     317.705
Definitions. As used in ORS
317.705 to 317.715:
     (1) “Affiliated group” means an affiliated
group of corporations as defined in section 1504 of the Internal Revenue Code.
     (2) “Unitary group” means a corporation or
group of corporations engaged in business activities that constitute a unitary
business.
     (3)(a) “Unitary business” means a business
enterprise in which there exists directly or indirectly between the members or
parts of the enterprise a sharing or exchange of value as demonstrated by:
     (A) Centralized management or a common
executive force;
     (B) Centralized administrative services or
functions resulting in economies of scale; or
     (C) Flow of goods, capital resources or
services demonstrating functional integration.
     (b) “Unitary business” may include, but is
not limited to, a business enterprise the activities of which:
     (A) Are in the same general line of
business (such as manufacturing, wholesaling or retailing); or
     (B) Constitute steps in a vertically
integrated process (such as the steps involved in the production of natural
resources, which might include exploration, mining, refining and marketing).
     (c) Whether two or more corporations that
are included in the same consolidated federal return are engaged in a unitary
business may be determined by making reference to corporations that are doing
business in the United States and are subject to federal income taxation,
whether or not those corporations are includable in the consolidated return. No
other corporations may be taken into consideration in making such a
determination, except in a case in which the transactions or relationships
between such corporations are made in an attempt to evade or avoid taxation. [1984
c.1 §4; 1985 c.802 §30a; 1997 c.325 §45; 2007 c.323 §1]
     Note: See note under 317.479.
     317.710
Corporation tax return requirements. (1) A corporation shall make a return with respect to the tax imposed
by this chapter as provided in this section.
     (2) If the corporation is a member of an
affiliated group of corporations making a consolidated federal return, it shall
file a return and determine its
     (3) If the corporation makes a separate
return for federal income tax purposes, it shall file a separate return under
this chapter. The corporation shall determine its
     (4) For purposes of subsection (3) of this
section, if the corporation is not subject to taxation under the Internal Revenue
Code a return for federal income tax purposes includes any form of return
required to be made in lieu of an income tax return under the Internal Revenue
Code or regulations thereunder.
     (5)(a) If two or more corporations subject
to taxation under this chapter are members of the same affiliated group making
a consolidated federal return and are members of the same unitary group, they
shall file a consolidated state return. The Department of Revenue shall
prescribe by rule the method by which a consolidated state return shall be
filed.
     (b) If any corporation that is a member of
an affiliated group is permitted or required to determine its Oregon taxable
income on a separate basis under ORS 314.670, or if any corporation is
permitted or required by statute or rule to use different apportionment factors
than a corporation with which it is affiliated, the corporation shall not be
included in a consolidated state return under paragraph (a) of this subsection.
     (c) Whenever two or more corporations are
required to file a consolidated state return under paragraph (a) of this
subsection, any reference in this chapter to a corporation for purposes of
deriving
     (6) If so directed by the department, by
rule or instructions on the state tax return form, every corporation required
to make a return under this chapter shall also file with the return a true copy
of the corporationÂ’s federal income tax return for the same taxable year. For
purposes of this subsection, the corporationÂ’s federal income tax return
includes a consolidated federal return for an affiliated group of which the
corporation is a member. The department may, by rule or instructions, permit a
corporation to submit specified excerpts from its federal return in lieu of
submitting a copy of the entire federal return. The federal return or any part
thereof required to be filed with the state return is incorporated in and shall
be a part of the state return.
     (7) Each foreign or alien insurer and each
domestic insurer owned and controlled, directly or indirectly, by one or more
foreign insurers shall determine its
     317.713
Group losses as offset to income of subsidiary paying preferred dividends. If the use of group losses to offset income
of a subsidiary paying dividends on preferred stock is limited under section
1503(f) of the Internal Revenue Code, a like limitation shall apply for purposes
of this chapter. For purposes of applying section 1503(f) of the Internal
Revenue Code, “group losses” and “separately computed taxable income” shall be
determined by taking into consideration only that income and loss which is
allocated or apportioned to Oregon, with the additions, subtractions,
modifications and other adjustments under this chapter and ORS chapter 314. [1991
c.457 §14]
     317.715
Tax return of corporation in affiliated group making consolidated federal
return. (1) If a corporation
required to make a return under this chapter is a member of an affiliated group
of corporations making a consolidated federal return under sections 1501 to
1505 of the Internal Revenue Code, the corporationÂ’s
     (2) If the affiliated group, of which the
corporation subject to taxation under this chapter is a member, consists of
more than one unitary group, before the additions, subtractions, adjustments
and modifications to federal taxable income provided for in this chapter are
made, and before allocation and apportionment as provided in ORS 317.010 (10),
if any, modified federal consolidated taxable income shall be computed.
Modified federal consolidated taxable income shall be determined by eliminating
from the federal consolidated taxable income of the affiliated group the
separate taxable income, as determined under Treasury Regulations adopted under
section 1502 of the Internal Revenue Code, and any deductions or additions or
items of income, expense, gain or loss for which consolidated treatment is
prescribed under Treasury Regulations adopted under section 1502 of the
Internal Revenue Code, attributable to the member or members of any unitary
group of which the corporation is not a member.
     (3)(a) After modified federal consolidated
taxable income is determined under subsection (2) of this section, the
additions, subtractions, adjustments and modifications prescribed by this
chapter shall be made to the modified federal consolidated taxable income of
the remaining members of the affiliated group, where applicable, as if all such
members were subject to taxation under this chapter. After those modifications
are made,
     (b) In the computation of the Oregon
apportionment percentage for a corporation that is a member of an affiliated
group filing a consolidated federal return, there shall be taken into
consideration only the property, payroll, sales or other factors of those
members of the affiliated group whose items of income, expense, gain or loss
remain in modified federal consolidated taxable income after the eliminations
required under subsection (2) of this section. Those members of an affiliated
group making a consolidated federal return or a consolidated state return shall
not be treated as one taxpayer for purposes of determining whether any member
of the group is taxable in this state or any other state with respect to
questions of jurisdiction to tax or the composition of the apportionment
factors used to attribute income to this state under ORS 314.280 or 314.605 to
314.675. [1984 c.1 §3; 1985 c.802 §30; 1987 c.293 §46]
     317.720
Computation of taxable income; excess loss accounts. (1) To derive Oregon taxable income, there
shall be subtracted from federal taxable income the amount of the excess loss
account included under Treasury Regulations adopted under section 1502 of the
Internal Revenue Code to the extent that the excess losses have not offset
unitary income. However, in no event shall excess losses be recaptured on
account of Treasury Regulations adopted under section 1502 of the Internal
Revenue Code for purposes of this chapter if the losses were deducted for a
taxable year beginning before January 1, 1986.
     (2) As used in this section, “unitary
income” means income of a unitary group, as that term is defined in ORS
317.705, that includes the subsidiary to which excess losses are attributable,
and a member of which is subject to taxation under this chapter. [1984 c.1 §11b;
1987 c.293 §47]
     317.725
Adjustments to prevent double taxation or deduction; rules. (1)(a) If any provision of the Internal Revenue
Code or of ORS 317.705 to 317.715, relating to the use of consolidated federal
returns, requires that any amount be added to or deducted from federal
consolidated taxable income or the Oregon taxable income subject to taxation
under this chapter or ORS chapter 318 that previously had been added to or
deducted from income upon or with respect to which tax liability was measured
under the Oregon law in effect prior to the taxpayerÂ’s taxable year as to which
ORS 317.705 to 317.715, are first effective, an appropriate adjustment shall be
made to the income for the year or years subject to ORS 317.705 to 317.715, so
as to prevent the double taxation or double deduction of any such amount that
previously had entered into the computation of income upon or with respect to
which tax liability was measured.
     (b) If it appears to the Department of
Revenue that a corporation making a return under this chapter or ORS chapter
318 is required to make any adjustment to federal consolidated taxable income
pursuant to ORS 317.715, that is unduly burdensome or that produces an
inequitable or unreasonable result, the department, upon application by the
corporation, may relieve the corporation of the requirement and may permit or
require any other adjustment to be made to fairly reflect income and produce an
equitable result. The department shall adopt rules prescribing the method by
which a corporation may apply for relief under this paragraph.
     (2) Notwithstanding the provisions of ORS
317.013, any regulation promulgated pursuant to sections 1501 to 1505 of the
Internal Revenue Code which makes reference to provisions of the Internal
Revenue Code with respect to which modifications to federal taxable income are
prescribed under this chapter shall not be applied to the extent the regulation
conflicts with the provisions of this chapter.
     (3) The Department of Revenue shall not
make any adjustment under this section if the resulting increase or decrease in
tax liability would be less than $250. [1984 c.1 §19; 1985 c.802 §31]
     317.845 [Formerly 317.515; repealed by 1985 c.761 §27]
DISPOSITION
OF REVENUE
     317.850
Disposition of revenue. The
net revenue from the tax imposed by this chapter, after deduction of refunds,
shall be paid over to the State Treasurer and held in the General Fund as
miscellaneous receipts available generally to meet any expense or obligation of
the State of
     317.910 [1959 c.356 §3; repealed by 1983 c.162 §57]
UNRELATED
BUSINESS INCOME OF CERTAIN EXEMPT CORPORATIONS
     317.920
Tax imposed on unrelated business income of certain exempt corporations. (1) Notwithstanding ORS 317.080, a
corporation otherwise exempt from tax under ORS 317.080 (1), (2), (3), (4), (7)
or (9) shall be subject to the tax imposed by and in accordance with the
provisions of this chapter, but only as to its unrelated business taxable
income, as defined under the Internal Revenue Code.
     (2) Subsection (1) of this section shall
not apply to an organization described in section 501(c)(1) of the Internal
Revenue Code.
     (3) In the case of unrelated business
income of a private foundation described in section 509 of the Internal Revenue
Code, the first quarter of estimated tax due under ORS 314.515 (1)(a) shall be
paid on or before the 15th day of the fifth month of the taxable year. [1959
c.356 §2; 1975 c.652 §90; 1983 c.162 §42; 1985 c.802 §28b; 1987 c.293 §48; 1997
c.839 §37; 1999 c.90 §25a]
     317.930
Exceptions and limitations.
In addition to the exclusions and modifications contained in section 512(b) of
the Internal Revenue Code, in determining unrelated business taxable income:
     (1) There shall be excluded, in the case
of any school, college or university, which rents real property to its students
or faculty, all rents derived therefrom, providing that such property is
actually a part of the school and that the continued presence of the students
and faculty thereon is necessary to the educative function of the institution.
     (2) There shall be subtracted any amount
treated as derived from the conduct of an unrelated trade or business under
section 995(g) of the Internal Revenue Code (relating to distributions to DISC
tax-exempt shareholders). [1959 c.356 §4; 1979 c.580 §3; 1983 c.162 §43; 1991
c.457 §14a]
     317.940 [1959 c.356 §5; repealed by 1983 c.162 §57]
     317.950
Assessment of deficiency. If
the Department of Revenue finds that unrelated business taxable income, or any
portion thereof, has not been assessed, it may, at any time within three years
after the return was filed, or in case no return was filed within five years
from the time the return should have been filed, compute the tax and give
notice to the corporation of the amount due, including penalty and interest
thereon. These limitations to the assessment of such tax or additional tax,
including penalty and interest thereon, do not apply to the assessment of
additional taxes, and penalty and interest thereon, upon false or fraudulent
returns or in cases where with a fraudulent intent no return has been filed.
ORS 314.410 is also applicable to the extent that it is not inconsistent with
the provisions of this section. [1959 c.356 §6]
PENALTIES
     317.990 [Repealed by 1957 c.632 §1 (314.991 enacted
in lieu of 316.990 and 317.990)]
     317.991
Civil penalty; noncompliance with ORS 317.097 relating to credit for housing
rehabilitation loans. (1)
The Director of the Housing and Community Services Department may assess a
civil penalty against any project owner in an amount not to exceed three times
the value of the tax credit available in any year on a project during which the
owner does not comply with the provisions of ORS 317.097 and the rules
promulgated thereunder.
     (2) Notwithstanding the provisions of any
other law, an order of the director assessing such a civil penalty shall be
deemed final, unless review from the director is requested in writing within 30
days of receipt of notice thereof. The request shall specify the grounds upon
which the project owner contests the proposed order of assessment.
     (3) The issuance of orders assessing civil
penalties pursuant to this section, the conduct of hearings and the judicial
review thereof shall be as provided in ORS chapter 183.
     (4) When an order assessing a civil
penalty becomes final by operation of law or on appeal, unless the amount of
penalty is paid within 10 days after the order becomes final, the order
constitutes a judgment and may be recorded with the county clerk in any county
of this state. The clerk shall thereupon record the name of the project owner
incurring the penalty and the amount of the penalty in the County Clerk Lien
Record. The penalty provided in the order so recorded shall become a lien upon
the title to any interest in property owned by the project owner against whom
the order is entered, and execution may be issued upon the order in the same
manner as execution upon a judgment of a court of record.
     (5) Civil penalties, and judgments entered
thereon, due to the director under this section from any project owner shall be
deemed preferred to all general claims in all bankruptcy proceedings, trustee
proceedings and proceedings for the administration of estates and receiverships
involving the project owner liable therefor or the property of such project
owner.
     (6) All moneys collected under this
section shall be paid into the Housing Finance Fund.
     (7) All costs of enforcement and
collection, including attorney fees, may be paid by the director directly from
the Housing Finance Fund without further authorization of law.
     (8) As used in this section, “director”
means the Director of the Housing and Community Services Department. [1991
c.737 §4; 1999 c.21 §48]
_______________
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