2017 ORS 314.666¹
Market for sales in this state

(1) A taxpayer’s market for sales is in this state:

(a) In the case of the sale, rental, lease or license of real property, if and to the extent the property is located in this state.

(b) In the case of the rental, lease or license of tangible personal property, if and to the extent the property is located in this state.

(c) In the case of the sale of a service, if and to the extent the service is delivered to a location in this state.

(2) A taxpayer’s market for sales is in this state in the case of intangible property that is rented, leased or licensed, if and to the extent the property is used in this state. Intangible property utilized in marketing a good or service to a consumer is deemed to be used in this state if that good or service is purchased by a consumer that is in this state.

(3) A taxpayer’s market for sales is in this state in the case of intangible property that is sold, if and to the extent the property is used in this state. Under this subsection:

(a) A contract right, government license or similar intangible property that authorizes the holder to conduct a business activity in a specific geographic area is deemed to be used in this state if the geographic area includes all or part of this state.

(b) Intangible property sales that are contingent on the productivity, use or disposition of the intangible property shall be treated as the rental, lease or licensing of such intangible property under subsection (2) of this section.

(c) All other intangible property sales shall be excluded from the sales factor.

(4) If the state or states of assignment under subsections (1) to (3) of this section cannot be determined, the state or states of assignment shall be reasonably approximated. [2017 c.549 §2]

Note: 314.666 (Market for sales in this state) was added to and made a part of 314.605 (Short title) to 314.675 (Apportionment of net loss) by legislative action but was not added to any smaller series therein. See Preface to Oregon Revised Statutes for further explanation.

Notes of Decisions

Interest income from long-term invest­ments of an interstate corpora­tion is not attributable to Oregon unless it arises from transac­tions in the regular course of the taxpayer’s business within the state. Sperry & Hutchinson v. Dept. of Rev., 270 Or 329, 527 P2d 729 (1974)

It was not abuse of discre­tion for Revenue Depart­ment to require corpora­tions to file combined rather than consolidated corporate excise tax returns where one corpora­tion owned at least 95 percent of voting stock of other. Caterpillar Tractor Co. v. Dept. of Rev., 8 OTR 236 (1979), aff’d 289 Or 895, 618 P2d 1261 (1980)

The Supremacy Clause gives Congress the authority to impose a brief moratorium on the collec­tion of taxes for “insured depositories” in order to permit the develop­ment of a uniform state taxing system. Pac. First Fed. Savings & Loan v. Dept. of Revenue, 8 OTR 466 (1980), aff’d 293 Or 138, 645 P2d 27 (1982)

Plaintiff’s use of appor­tion­ment method was proper because separate accounting would not fairly represent extent of plaintiff’s business activities in Oregon. Lane v. Dept. of Rev., 10 OTR 168 (1985)

Intangible drilling and develop­ment costs (IDCs) should be included in prop­erty factor for purposes of appor­tioning income to Oregon. Atlantic Richfield Co. v. Dept. of Rev., 301 Or 242, 722 P2d 727 (1986)

Exclusion of intangible prop­erty from formula to determine Oregon business income of California financial organiza­tion engaged in owning, leasing and financing tangible per­sonal prop­erty did not represent fair appor­tion­ment of taxpayer’s business ac­tivity in Oregon. Crocker Equip­ment Leasing, Inc. v. Dept. of Rev., 314 Or 122, 838 P2d 552 (1992)

Law Review Cita­tions

17 WLR 487 (1981)

Chapter 314

Law Review Cita­tions

9 WLJ 249 (1973); 5 EL 516 (1975)

1 Legislative Counsel Committee, CHAPTER 314—Taxes Imposed Upon or Measured by Net Income, https://­www.­oregonlegislature.­gov/­bills_laws/­ors/­ors314.­html (2017) (last ac­cessed Mar. 30, 2018).
 
2 Legislative Counsel Committee, Annotations to the Oregon Revised Stat­utes, Cumulative Supplement - 2017, Chapter 314, https://­www.­oregonlegislature.­gov/­bills_laws/­ors/­ano314.­html (2017) (last ac­cessed Mar. 30, 2018).
 
3 OregonLaws.org assembles these lists by analyzing references between Sections. Each listed item refers back to the current Section in its own text. The result reveals relationships in the code that may not have otherwise been apparent.