Oregon Statutes 316.778 – Small city business development exemption; rules
(1) For each tax year in which a business firm receives an annual certification under ORS § 285C.506, the income of the taxpayer apportionable to the certified facility of the business firm shall be exempt from tax under this chapter.
Terms Used In Oregon Statutes 316.778
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Department: means the Department of Revenue. See Oregon Statutes 316.022
- nonresident: means an individual who is not a resident of this state. See Oregon Statutes 316.022
- Part-year resident: means an individual taxpayer who changes status during a tax year from resident to nonresident or from nonresident to resident. See Oregon Statutes 316.022
- Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
- Taxable income: means the taxable income as defined in subsection (a) or (b), section 63 of the Internal Revenue Code, with such additions, subtractions and adjustments as are prescribed by this chapter. See Oregon Statutes 316.022
- Taxpayer: means any natural person, estate, trust, or beneficiary whose income is in whole or in part subject to the taxes imposed by this chapter, or any employer required by this chapter to withhold personal income taxes from the compensation of employees for remittance to the state. See Oregon Statutes 316.022
(2) The income of a resident taxpayer that is exempt under this section shall be determined by:
(a) Multiplying the federal taxable income of the taxpayer by the ratio of the taxpayer’s federal adjusted gross income derived from the business firm over the taxpayer’s federal adjusted gross income; and
(b) Multiplying the amount determined under paragraph (a) of this subsection by the ratio of the business firm’s income derived from the firm’s activities at the certified facility over the business firm’s income from all business activities.
(3) The income of a nonresident or part-year resident taxpayer that is exempt under this section shall be determined by:
(a) Multiplying the Oregon-sourced federal taxable income of the taxpayer by the ratio of the taxpayer’s federal adjusted gross income derived from the business firm over the taxpayer’s federal adjusted gross income; and
(b) Multiplying the amount determined under paragraph (a) of this subsection by the ratio of the business firm’s income derived from the firm’s activities at the certified facility over the business firm’s income from all business activities.
(4) The Department of Revenue shall by rule prescribe a method by which a business firm determines the extent to which the firm’s income is derived from the firm’s activities at the certified facility.
(5)(a) A partnership or S corporation shall report the information necessary to compute exempt income under this section to the firm’s owners within 30 days following the issuance of the annual certification to the partnership or S corporation under ORS § 285C.506.
(b) The department may permit extensions of time for reporting the information required under this subsection.
(6) 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 § 6]
[1957 c.586 § 11; repealed by 1969 c.493 § 99]