Or. Admin. R. 150-317-1095

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

Section 150-317-1095 - Sourcing of River Transportation Services

(1) The Oregon commercial activity of a taxpayer involved in river transportation services during the tax period must be determined pursuant to ORS 317A.128 except as modified by this rule.

(2) Receipts derived from interstate river transportation are sourced to this state using a sales factor. The sales factor is a fraction, the denominator of which includes all sales. The numerator of this factor includes all sales not derived from interstate river transportation. The numerator also includes all sales derived from vessels engaged in river transportation between Oregon and other states as is determined by applying the Oregon Interstate Mobile Allocation Formula (IMAF).

(3) For purposes of this rule, the Oregon IMAF is the average of two factors. The two factors are the originating and terminating tons factor and the ton-miles factor. For purposes of computing both factors, only mileage and tonnage from those vessels that operate on some portion of a river that constitutes the border between Oregon and other states is included in the computation. For example: The ton-miles generated by vessels operating on the Mississippi River or exclusively on the Willamette River would not be included in the computation.

(a) The originating and terminating tons factor is a fraction. The denominator is the total number of tons handled by the vessels engaged in river transportation between Oregon and other states. The numerator is the number of tons assigned to Oregon. The tons attributed to a voyage from one Oregon port to another Oregon port are credited wholly to Oregon. The tons attributed to a voyage between ports in different states are credited equally to the two states. For this purpose, each trip between two ports of call is treated as a separate voyage even though the cargo may be scheduled for later movement to one or more ports.

(b) The ton-miles factor is a fraction. The denominator is the total number of ton-miles generated by the vessels engaged in river transportation between Oregon and other states. The numerator of the fraction consists of those ton-miles assignable to Oregon. Ton-miles generated on the Willamette are credited wholly to Oregon. Ton-miles generated on that part of the Columbia above mile 309 are credited wholly to Washington. One-half of those ton-miles generated on the portion of a river that forms the boundary between Oregon and another state are credited to Oregon. Ton-miles are figured by multiplying tons carried for each movement by miles traveled.

Or. Admin. R. 150-317-1095

REV 16-2021, adopt filed 12/15/2021, effective 1/1/2022

Statutory/Other Authority: ORS 305.100, 317A.128 & 317A.143

Statutes/Other Implemented: ORS 317A.128