Or. Admin. R. 150-317-1170 - Farming Operations: Clarifying Definitions for Agricultural Commodities, Farming Operations, Out of State Sales Based on Industry Averages

Current through Register Vol. 61, No. 4, April 1, 2022

(1)
(a) General rule: A taxpayer that is engaged in a farming operation, as defined in Oregon Laws 2020 First Special Session, chapter 2, section 6(1)(c), that sells agricultural commodities to a broker or wholesaler may demonstrate the amount of the taxpayer's goods sold in this state compared to outside this state, for purposes of determining commercial activity, by:
(A) Obtaining an out-of-state resale certificate as provided in OAR 150-317-1400;
(B) Obtaining a certificate from the broker or wholesaler receiving an agricultural commodity from the taxpayer that states the percentage of the taxpayer's goods sold in this state compared to outside this state; or
(C) Using an industry average percentage for sales of the agricultural commodity made the previous tax year, based on the most recent information from the United States Department of Agriculture National Agricultural Statistics Service and other sources of sales information.
(b) The phrase "other sources of sales information" includes any publication by a governmental entity or trade association that publishes agricultural commodity sales information.
(2) Certificate Requirements: A farming operation taxpayer that seeks to demonstrate the percentage of the taxpayer's goods sold in this state compared to outside this state by obtaining a certificate, pursuant to section (1)(a(B) of this rule, from the broker or wholesaler, must obtain the certificate by the due date of the return, including extensions. The certificate provided by the broker or wholesaler to the seller must contain:
(a) The broker or wholesaler's legal name and Oregon address;
(b) The broker or wholesaler's federal tax identification number;
(c) The date of purchase;
(d) The total amount of purchased property;
(e) The purchase price paid by the broker or wholesaler;
(f) The percentage of purchased property that the broker or wholesaler will resell outside of Oregon; and
(g) The signature of the broker or wholesaler, their authorized representative, or employee, certifying that the person is a broker, as that term is defined in Oregon Laws 2020 First Special Session, chapter 2, section 6(1)(b), or a wholesaler, as that term is defined in ORS 317A.100(20).
(3) Industry Average Statistics: A farming operation taxpayer that seeks to demonstrate the percentage of the taxpayer's goods sold in this state compared to outside this state by using industry average statistics, pursuant to section (1)(a)(C) of this rule, must rely on statistics for the specific sub-type of agricultural commodity sold, where available, or may rely on statistics for the general type of agricultural commodity where sub-type statistics are unavailable for the specific agricultural commodity.

Notes

Or. Admin. R. 150-317-1170
REV 23-2020, adopt filed 11/30/2020, effective 12/1/2020

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

Statutes/Other Implemented: Oregon Laws 2020 First Special Session, chapter 2, section 6

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