(2) The provisions of subsection (1) of this section dealing with the apportionment of income earned from sources both within and without the State of Oregon are designed to allocate to the State of Oregon on a fair and equitable basis a proportion of such income earned from sources both within and without the state. Any taxpayer may submit an alternative basis of apportionment with respect to the income of the taxpayer and explain that basis in full in the return of the taxpayer. If approved by the department that method will be accepted as the basis of allocation.
(3)(a) Apportionment rules adopted by the department under this section must apply the weightings used in ORS 314.650 to comparable factors used to apportion income from business activity of taxpayers subject to this section.
(b) Notwithstanding paragraph (a) of this subsection, a taxpayer primarily engaged in utilities or telecommunications may elect to have income from business activity apportioned by applying the weightings used in ORS 314.650 (1999 Edition) to comparable factors used to apportion such income.
(c) The election shall be made in the time and manner prescribed by the department by rule. The election shall continue in force and effect for the tax year for which the election is made and for each subsequent tax year until the year in which the taxpayer revokes the election.
(d) An electing taxpayer may revoke the taxpayer’s election by filing a revocation of election in the time and manner prescribed by the department. The revocation shall apply to the tax year following the year in which the election is made and to each subsequent tax year.
(e) As used in this subsection:
(A) "Telecommunications" means business operations that conduct, maintain or provide for the transmission of voice data and text between network termination points and telecommunications reselling. Transmission facilities may be based on one technology or a combination of technologies.
(B) "Utilities" means business operations that provide electric power, natural gas, steam supply, water supply or sewage removal through a permanent infrastructure of lines, mains and pipes. [1957 c.632 §4 (enacted in lieu of 316.205 and 317.180); 1963 c.319 §1; 1965 c.152 §22; 2001 c.933 §1; 2009 c.403 §5]
Structure 2021 Oregon Revised Statutes
Volume : 08 - Revenue and Taxation
Chapter 314 - Taxes Imposed Upon or Measured by Net Income
Section 314.011 - Definitions; conformance with federal income tax law.
Section 314.033 - Application of federal Tax Reform Act of 1986 (P.L. 99-514).
Section 314.059 - Application of American Recovery and Reinvestment Act of 2009 (P.L. 111-5).
Section 314.075 - Evading requirements of law prohibited.
Section 314.085 - Taxable year; rules.
Section 314.091 - Abeyance of tax during periods of active duty military service.
Section 314.105 - Definitions for ORS 314.105 to 314.135.
Section 314.115 - Adjustment to correct effect of certain errors; use limited.
Section 314.125 - When adjustment may be made.
Section 314.256 - Lobbying expenditures; proxy tax; rules.
Section 314.258 - Withholding in certain conveyances of real estate; rules.
Section 314.260 - Taxation of real estate mortgage investment conduits.
Section 314.276 - Method of accounting.
Section 314.287 - Costs allocable to inventory.
Section 314.300 - Passive activity loss; determination; treatment; rules.
Section 314.306 - Income from discharge of indebtedness; bankruptcy; insolvency.
Section 314.307 - Definitions; reportable transactions.
Section 314.308 - Reportable transactions; rules.
Section 314.310 - Liability of transferee of taxpayer for taxes imposed on taxpayer.
Section 314.330 - Lien if grantor or other person determined to be owner of trust.
Section 314.360 - Information returns; penalties.
Section 314.362 - Filing return on magnetic media or other machine-readable form; rules.
Section 314.364 - Authority of department to require filing of returns by electronic means; rules.
Section 314.385 - Form of returns; time for filing; alternative filing formats; rules.
Section 314.395 - Time for payment of tax; interest on delayed return.
Section 314.402 - Understatement of net tax; penalty; cost-of-living adjustment; waiver of penalty.
Section 314.403 - Listed transaction understatement; penalty.
Section 314.404 - Penalty for failure to report reportable transaction.
Section 314.406 - Penalty for promotion of abusive tax shelter.
Section 314.415 - Refunds; interest; credits.
Section 314.419 - Foreclosure of lien.
Section 314.423 - Status of lien.
Section 314.425 - Examining books, records or persons.
Section 314.430 - Warrant for collection of taxes.
Section 314.440 - Tax as debt; termination of taxable period and immediate assessment of tax.
Section 314.505 - Estimate of tax liability by corporations; rules.
Section 314.515 - Installment schedule for payment of estimated tax.
Section 314.518 - Estimated tax payments by electronic funds transfer; phase-in; rules.
Section 314.520 - State agency authority over certain electronic funds transfer payments.
Section 314.525 - Underpayment of estimated tax; interest; nonapplicability of penalties.
Section 314.605 - Short title; construction.
Section 314.610 - Definitions for ORS 314.605 to 314.675.
Section 314.620 - When taxpayer is considered taxable in another state.
Section 314.630 - Allocation to this state of net rents and royalties.
Section 314.635 - Allocation to this state of capital gains and losses.
Section 314.642 - Allocation to this state of lottery prizes.
Section 314.645 - Allocation to this state of patent and copyright royalties.
Section 314.655 - Determination of property factor.
Section 314.660 - Determination of payroll factor.
Section 314.666 - Market for sales in this state.
Section 314.667 - Additional methods to determine extent of business activity in this state; rules.
Section 314.668 - Definitions.
Section 314.669 - Legislative findings; purposes.
Section 314.671 - Qualifying investment contract; duration; remedies.
Section 314.673 - Rules; report to Legislative Assembly.
Section 314.674 - Apportionment of broadcasting sales.
Section 314.712 - Partnerships not subject to income tax; exceptions.
Section 314.716 - Basis of partner’s interest; gain or loss on sale; election to adjust basis.
Section 314.718 - Treatment of contributions to partnership.
Section 314.720 - Treatment of distributions from partnership.
Section 314.722 - Publicly traded partnerships taxed as corporations.
Section 314.724 - Information return; penalty; rules.
Section 314.731 - Definitions.
Section 314.735 - Time limit for notice of deficiency.
Section 314.737 - Time limit for claim for refund or credit.
Section 314.765 - Employee fringe benefits; foreign income.
Section 314.766 - Tax on built-in gain.
Section 314.767 - Tax on excess net passive income.
Section 314.768 - S corporation or shareholder elections; rules.
Section 314.770 - Disclosure of S corporation items to shareholder.
Section 314.771 - Recapture of LIFO benefits.
Section 314.772 - Business tax credits; allowance to shareholders.
Section 314.775 - Definitions for ORS 314.775 to 314.784.
Section 314.781 - Withholding; required returns and statements; pass-through entity liability.
Section 314.784 - Circumstances when pass-through entity withholding is not required; rules.
Section 314.835 - Divulging particulars of returns and reports prohibited.
Section 314.840 - Disclosure of information; persons to whom information may be furnished.
Section 314.843 - Reporting of information to consumer reporting agency; rules.
Section 314.865 - Use of certain information for private benefit prohibited.
Section 314.870 - Time for performing certain acts postponed by reason of service in a combat zone.