Or. Admin. R. 150-317-0170

Current through Register Vol. 63, No. 6, June 1, 2024

Section 150-317-0170 - Minimum Tax

(1)

(a) For tax years beginning on or after January 1, 2009, the tax liability of an affiliated group of corporations filing a consolidated return may not be less than the minimum tax as defined in ORS 317.090. Only one minimum tax is charged per return, regardless of the number of corporations in the group that are doing business in Oregon.

Example 1: X Corporation and its only subsidiary, Y Corporation, are doing business in Oregon and file a consolidated Oregon excise tax return showing a net loss for the 2009 tax year. The consolidated Oregon excise tax return properly shows Oregon sales for X of $500,000 and for Y of $250,000. The minimum tax for the year is $500 based on Oregon sales of $750,000.

(b) For tax years beginning on or after January 1, 2006, and before January 1, 2009 the tax liability of an affiliated group of corporations filing a consolidated return may not be less than the $10 minimum tax multiplied by the number of corporations in the group that are doing business in Oregon.

Example 2: Alpha Corporation and its only subsidiary, Beta Corporation, are doing business in Oregon and file a consolidated Oregon excise tax return showing a net loss for the 2006 tax year. The Oregon minimum tax for the year is $20.

(c) For consolidated returns filed for tax years beginning before January 1, 2006, the department determines that a $10 minimum tax is due for the consolidated group, and the $10 minimum tax due for each affiliate included in the return doing business in Oregon is cancelled. This determination is made under authority of ORS 305.145(3).

Example 3: On July 1, 2006, Corporation A and affiliates filed an amended tax return for 2005. The return included three affiliates doing business in Oregon and showed a net loss for the tax year. Although ORS 317.090 provides that each of the four corporations owes $10 of minimum tax, the department will cancel the tax attributable to the affiliates and only one $10 tax is owed by Corporation A and affiliates.

(2) For tax years beginning on or after January 1, 1999, the excise tax is measured by the corporation's Oregon taxable income as computed in accordance with the provisions of the statute, but the tax cannot be less than the specified minimum. The minimum tax is due even though the corporation had a net loss and it must be paid in full even though the taxpayer was subject to the statute for only a part of the year, except that it may be apportioned in the case of a change of accounting periods. A corporation with no business activity in Oregon is not subject to the minimum tax.

(3) For tax years beginning before January 1, 1999, the provisions of section (2) of this rule apply, except that a corporation qualified to do business in Oregon, but engaging in no business activity in the state, is subject to the $10 minimum tax.

(4) Definition of "Oregon Sales". For tax years beginning on or after January 1, 2009, the minimum excise tax is determined by referencing the taxpayer's "Oregon sales." Corporations using the apportionment method described in ORS 314.650 to 314.665 compute Oregon sales as provided under ORS 314.665. For corporations that apportion apportionable income using a method different from that prescribed by ORS 314.650 to 314.665, "Oregon sales" means the numerator of the sales factor for:

(a) Carriers of freight or passengers in general, as provided in OAR 150-314-0074;

(b) Railroads, as provided in OAR 150-314-0076;

(c) Airlines, as provided in OAR 150-314-0078;

(d) Trucking companies, as provided in OAR 150-314-0080;

(e) Companies engaged in sea transportation service, as provided in OAR 150-314-0082;

(f) Companies involved in interstate river transportation service, as provided in OAR 150-314-0084;

(g) Public utilities (other than those provided for in subsections (a) through (f)), as provided in OAR 150-314-0070, 150-314-0072, and ORS 314.650;

(h) Financial organizations, as defined in ORS 314.610(4), as provided in OAR 150-314-0088;

(i) Taxpayers with income from long-term construction contracts, as provided in OAR 150-314-0353;

(j) Motion picture and television film producers, as provided in OAR 150-31-0357;

(k) Publishers, as provided in OAR 150-314-0455;

(L) Interstate broadcasters, as provided in ORS 314.684;

(m) Insurers (as defined in ORS 317.010(11)), as provided in ORS 317.660(1); and

(n) Title insurers, and health care service contractors not classed as insurers under ORS 317.010(11), as provided in OAR 150-314-0070, including gross premium receipts.

Or. Admin. R. 150-317-0170

1953; TC 19-1979, f. 12-20-79, cert. ef. 12-31-79; RD 7-1983, f. 12-20-83, cert. ef. 12-31-83; RD 15-1987, f. 12-10-87, cert. ef. 12-31-87; REV 12-1999, f. 12-30-99, cert. ef. 12-31-99; REV 8-2006(Temp), f. 11-20-06, cert. ef. 11-21-06 thru 12-31-06; REV 11-2006, f. 12-27-06, cert. ef. 1-1-07; REV 2-2010, f. & cert. ef. 2-19-10; Renumbered from 150-317.090, REV 67-2016, f. 8-15-16, cert. ef. 9/1/2016; REV 68-2017, amend filed 12/22/2017, effective1/1/2018

Statutory/Other Authority: ORS 305.100 & 317.090

Statutes/Other Implemented: ORS 317.090