Allocation of income of financial institution or public utility from business within and without state
- rules
- alternative apportionment for electing utilities or telecommunications taxpayers
Source:
Section 314.280 — Allocation of income of financial institution or public utility from business within and without state; rules; alternative apportionment for electing utilities or telecommunications taxpayers, https://www.oregonlegislature.gov/bills_laws/ors/ors314.html.
Notes of Decisions
The Department of Revenue was free to change its rules relating to the three factor formula for financial organizations when such change did not result in an improper allocation to Oregon. Equitable Sav. and Loan Assn. v. Dept. of Rev., 5 OTR 661 (1975)
Use of presumption that allocation method of reporting fairly represents net income from in-state business activities of utilities is invalid. Fisher Broadcasting, Inc. v. Dept. of Rev., 321 Or 341, 898 P2d 1333 (1995)
Department of Revenue is required to adopt rules for default method of reporting resulting in fair and accurate reflection of net income in advance of taxpayer filing return. U.S. Bancorp and Subsidiaries v. Dept. of Revenue, 19 OTR 266 (2007)
Department of Revenue may not undertake application of alternative method of apportioning income on department’s own motion. U.S. Bancorp and Subsidiaries v. Dept. of Revenue, 19 OTR 266 (2007)
By permitting Department of Revenue to apply either segregation method or apportionment method of allocation, this provision creates dichotomy between unitary and nonunitary businesses, not between business and nonbusiness income under Uniform Division of Income for Tax Purposes Act. Crystal Communications, Inc. v. Dept. of Revenue, 353 Or 300, 297 P3d 1256 (2013)
This provision does not preclude apportionment of gain from assets sold in course of liquidation. Crystal Communications, Inc. v. Dept. of Revenue, 353 Or 300, 297 P3d 1256 (2013)
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