(1) For purposes of ORS § 317A.100 to 317A.158, commercial activity shall be sourced to this state as follows:

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Terms Used In Oregon Statutes 317A.128

  • Intangible property: Property that has no intrinsic value, but is merely the evidence of value such as stock certificates, bonds, and promissory notes.
  • 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
  • Personal property: All property that is not real property.
  • Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
  • Statute of limitations: A law that sets the time within which parties must take action to enforce their rights.

(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 tangible personal property, if and to the extent the property is delivered to a purchaser in this state.

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

(e) In the case of the sale, rental, lease or license of intangible property, if and to the extent the property is used in this state. If the receipts are not based on the amount of use of the property, but rather on the right to use the property, and the payor has the right to use the property in this state, the receipts shall be sourced to this state to the extent the receipts are based on the right to use the property in this state.

(f) In the case of a financial institution or an insurer, commercial activity not otherwise described in this section is sourced to this state if it is from business conducted in this state.

(2) If the sourcing provisions of subsection (1) of this section do not fairly represent the extent of a person‘s commercial activity attributable to this state, the person may request, or the Department of Revenue may require or permit, an alternative method. A request under this subsection by a person must be made within the statute of limitations applicable to ORS § 317A.100 to 317A.158.

(3) The department may adopt rules to provide additional guidance to the application of this section, and to provide alternative methods of sourcing commercial activity that apply to financial institutions and to insurers, and to any other persons, or a subset of persons, that are engaged in similar business or trade activities. [2019 c.122 § 66; 2019 c.579 § 54]