(1)
Definitions.
(a) "Purchaser
within Oregon" includes the ultimate recipient of property if the taxpayer, at
the designation of the purchaser, delivers property to the ultimate recipient
within Oregon.
(b) "Tangible
personal property" means personal property that can be seen, weighed, measured,
felt, or touched, or that is in any other manner perceptible to the senses.
"Tangible personal property" includes electricity, water, gas, steam, and
prewritten computer software.
(2) Gross receipts from the sales of tangible
personal property are sourced to Oregon if the property is delivered to a
purchaser within Oregon regardless of the f.o.b. point or other conditions of
sale, whether transported by seller, purchaser, or common carrier.
Example 1: A seller with a place
of business in State A is a distributor of merchandise to retail outlets in
multiple states. A purchaser with retail outlets in several states, including
Oregon, makes arrangements to hire a common carrier to pick up merchandise,
f.o.b. plant, at the seller's place of business and have it delivered to the
purchaser's outlet in Oregon. The seller must treat this as a sale of property
delivered to a purchaser in Oregon.
Example 2: A seller with a place
of business in Oregon is a distributor of merchandise to retail outlets in
multiple states. A purchaser with retail outlets in several states, including
State A, sends its own truck to pick up the merchandise at the seller's place
of business and have it transported to the purchaser's outlet in State A. The
seller must treat this as a sale of property delivered to a purchaser in State
A.
(3) Property is deemed
to be delivered to a purchaser within Oregon if the recipient is located in
Oregon, even though the property is ordered from outside of Oregon.
Example 3: A taxpayer in Oregon
sold merchandise to a purchaser in State A. Taxpayer directed the manufacturer
or supplier of the merchandise in State B to deliver the merchandise to the
purchaser's customer in Oregon pursuant to purchaser's instructions. The sale
by the taxpayer is in Oregon.
Example 4: The taxpayer, with
inventory in State A, sold $100,000 of its products to a purchaser having
branch stores in several states including Oregon. The order for the purchase
was placed by the purchaser's central purchasing department located in State B.
Of the total purchase order, $25,000 was shipped directly to purchaser's branch
store in Oregon. The branch store in Oregon is the "purchaser within Oregon"
with respect to $25,000 of the taxpayer's sales.
(4) Property is delivered to a purchaser
within Oregon if the delivery terminates in Oregon, even though the property is
subsequently transferred by the purchaser to another state.
Example 5: The taxpayer makes a
sale to a purchaser who maintains a central warehouse in Oregon at which all
merchandise purchases are received. The purchaser reships the goods to its
branch stores in other states for sale. All of taxpayer's products shipped to
the purchaser's warehouse in Oregon are property delivered to a "purchaser
within Oregon."
(5) When
property being delivered by a seller from the state of origin to a purchaser in
another state is diverted while enroute to a purchaser in Oregon, the sale is
in Oregon.
Example 6: The taxpayer, a
business in State A, begins shipment of their product to the purchaser's place
of business in State B. While enroute the product is diverted to the
purchaser's place of business in Oregon to package the merchandise with the
purchaser's logo. The sale by the taxpayer is in Oregon.
Notes
Or. Admin. Code §
150-317-1030
REV 15-2019,
temporary adopt filed 12/30/2019, effective 01/01/2020 through 06/28/2020;
REV
11-2020, adopt filed 06/24/2020, effective
6/28/2020
Statutory/Other Authority: ORS
305.100 &
317A.143
Statutes/Other Implemented: ORS
317A.128
