2017 ORS 317.010¹
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 (Definitions for ORS 308.505 to 308.681) to 308.681 (Annual report to legislature on ORS 308.677).

(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 (Corporation tax return requirements) (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” has the meaning given that term in ORS 314.610 (Definitions for ORS 314.605 to 314.675) except that it does not include a credit union as defined in ORS 723.006 (“Credit union” defined), an interstate credit union as defined in ORS 723.001 (Definitions) or a federal credit union.

(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, 2016; 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 (Net losses of prior years), except as otherwise provided with respect to insurers in subsection (11) of this section and ORS 317.650 (Insurers) to 317.665 (Oregon net losses of insurer in prior years).

(9) “Oregon net loss” means taxable loss, except as otherwise provided with respect to insurers in subsection (11) of this section and ORS 317.650 (Insurers) to 317.665 (Oregon net losses of insurer in prior years).

(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 (Net losses of prior years) or 317.478 (Pre-change and built-in losses) and section 45b, chapter 293, Oregon Laws 1987, shall be allowed. If the corporation is a corporation to which ORS 314.280 (Allocation of income of financial institution or public utility from business within and without state) or 314.605 (Short title) to 314.675 (Apportionment of net loss) (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 nonapportionable income, or add nonapportionable loss, whichever is applicable.

(b) Multiply the amount determined under paragraph (a) of this subsection by the Oregon apportionment percentage defined under ORS 314.280 (Allocation of income of financial institution or public utility from business within and without state), 314.650 (Apportionment of income) or 314.667 (Additional methods to determine extent of business activity in this state), whichever is applicable. The resulting product shall be Oregon apportioned income or loss.

(c) To the amount determined as Oregon apportioned income or loss under paragraph (b) of this subsection, add nonapportionable income allocable entirely to Oregon under ORS 314.280 (Allocation of income of financial institution or public utility from business within and without state) or 314.625 (Certain nonapportionable income to be allocated) to 314.645 (Allocation to this state of patent and copyright royalties), or subtract nonapportionable loss allocable entirely to Oregon under ORS 314.280 (Allocation of income of financial institution or public utility from business within and without state) or 314.625 (Certain nonapportionable income to be allocated) to 314.645 (Allocation to this state of patent and copyright royalties). The resulting figure is “taxable income or loss” for those corporations carrying on taxable transactions or activities both within and without Oregon.

(11) As used in ORS 317.122 (Insurers) and 317.650 (Insurers) to 317.665 (Oregon net losses of insurer in prior years), “ insurer” means any domestic, foreign or alien insurer as defined in ORS 731.082 (“Domestic,” “foreign,” “alien” insurer) 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 (Exchange of reciprocal or interinsurance contracts), 731.462 (Nonassessable policies of reciprocal insurer), 731.466 (Power of attorney for reciprocal insurer) and 731.470 (Attorney for reciprocal insurer) for the reciprocal or interinsurance exchange. However, “insurer” does not include title insurers or health care service contractors operating pursuant to ORS 750.005 (Definitions) to 750.095 (Requirements of contract between provider and subscriber). [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; 2008 c.45 §14; 2009 c.5 §24; 2009 c.403 §2; 2009 c.909 §§26,27; 2010 c.82 §§27,28; 2011 c.7 §24; 2012 c.31 §23; 2013 c.377 §23; 2014 c.52 §25; 2015 c.442 §17; 2016 c.33 §20; 2017 c.43 §9; 2017 c.527 §23]

Notes of Decisions

Oregon corpora­tion excise tax is franchise tax on privilege of doing business in Oregon and not tax on prop­erty used to con­duct business. Pacific First Federal v. Dept. of Rev., 11 OTR 96 (1988), aff’d, 308 Or 332, 779 P2d 1033 (1989)

Chapter 317

Notes of Decisions

Congress is empowered by Commerce Clause, U.S. Const. Art. I, Sec­tion VIII, to place three year moratorium on “doing business” taxes imposed by states on federally insured savings and loan associa­tions which do not have their principal place of business in taxing state. Pac. First Fed. Savings & Loan v. Dept. of Rev., 293 Or 138, 645 P2d 27 (1982)

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

1 Legislative Counsel Committee, CHAPTER 317—Corporation Excise Tax, https://­www.­oregonlegislature.­gov/­bills_laws/­ors/­ors317.­html (2017) (last ac­cessed Mar. 30, 2018).
 
2 Legislative Counsel Committee, Annotations to the Oregon Revised Stat­utes, Cumulative Supplement - 2017, Chapter 317, https://­www.­oregonlegislature.­gov/­bills_laws/­ors/­ano317.­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.