Current through Register Vol. 61, No. 4, April 1, 2022
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
. Only one
minimum tax is charged per return, regardless of the number of corporations in
the group that are doing business in Oregon.
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
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.
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
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
(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.
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
compute Oregon sales as provided under ORS
For corporations that apportion apportionable income using a method different
from that prescribed by ORS
"Oregon sales" means the numerator of the sales factor for:
Carriers of freight or passengers in
general, as provided in OAR 150-314-0074
Companies engaged in sea transportation
service, as provided in OAR 150-314-0082
Companies involved in interstate river
transportation service, as provided in OAR 150-314-0084
Public utilities (other than those
provided for in subsections (a) through (f)), as provided in OAR 150-314-0070
, and ORS
Financial organizations, as defined in
as provided in OAR 150-314-0088
Taxpayers with income from long-term
construction contracts, as provided in OAR 150-314-0353
Motion picture and television film
producers, as provided in OAR 150-31-0357
broadcasters, as provided in ORS
(m) Insurers (as defined in ORS
as provided in ORS
Title insurers, and health
care service contractors not classed as insurers under ORS
as provided in OAR 150-314-0070
, including gross premium receipts.
Admin. R. 150-317-0170
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,
67-2016, f. 8-15-16, cert. ef.
68-2017, amend filed 12/22/2017, effective
Statutory/Other Authority: ORS
Statutes/Other Implemented: ORS