Oregon Statutes 317A.116 – Corporate activity tax imposed on commercial activity
(1) A corporate activity tax is imposed on each person with taxable commercial activity for the privilege of doing business in this state. The tax is imposed upon persons with substantial nexus with this state. The tax imposed under this section is not a transactional tax and is not subject to the Interstate Income Act of 1959 (P.L. 86-272). The tax imposed under this section is in addition to any other taxes or fees imposed under the tax laws of this state. The tax imposed under this section is imposed on the person with the commercial activity and is not a tax imposed directly on a purchaser. The tax imposed under this section is an annual privilege tax for the tax year and shall be remitted quarterly to the Department of Revenue. A taxpayer is subject to the annual corporate activity tax for doing business during any portion of such tax year.
Terms Used In Oregon Statutes 317A.116
- Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
- Person: includes individuals, corporations, associations, firms, partnerships, limited liability companies and joint stock companies. See Oregon Statutes 174.100
(2) Returns and allowances, as those terms are applicable to section 448 of the Internal Revenue Code, are allowed as an offset against commercial activity in the tax year that the returns or allowances are made.
(3) A person has substantial nexus with this state if any of the following applies. The person:
(a) Owns or uses a part or all of its capital in this state.
(b) Holds a certificate of existence or authorization issued by the Secretary of State authorizing the person to do business in this state.
(c) Has bright-line presence in this state.
(d) Otherwise has nexus with this state to an extent that the person can be required to remit the tax imposed under ORS § 317A.100 to 317A.158 under the United States Constitution.
(4) A person has bright-line presence in this state for the tax year if any of the following applies. The person:
(a) Owns at any time during the tax year property in this state with an aggregate value of at least $50,000. For purposes of this paragraph, owned property is valued at original cost and rented property is valued at eight times the net annual rental charge.
(b) Has during the tax year payroll in this state of at least $50,000. Payroll in this state includes the following:
(A) Any amount subject to withholding by the person under ORS § 316.167 and 316.172;
(B) Any other amount the person pays as compensation to an individual under the supervision or control of the person for work done in this state; and
(C) Any amount the person pays for services performed in this state on the person’s behalf by another.
(c) Has during the tax year commercial activity, sourced to this state under ORS § 317A.128, of at least $750,000.
(d) Has at any time during the tax year within this state at least 25 percent of the person’s total property, total payroll or total commercial activity.
(e) Is a resident of this state or is domiciled in this state for corporate, commercial or other business purposes.
(5) Notwithstanding subsection (1) of this section, a vehicle dealer may collect from the purchaser of a motor vehicle the estimated portion of the tax imposed under this section that is attributable to commercial activity from the sale or lease of the vehicle. [2019 c.122 § 63; 2019 c.579 § 52; 2020 s.s.1 c.2 § 3; 2021 c.572 § 4]