Or. Admin. Code § 150-314-0431

Current through Register Vol. 63, No. 11, November 1, 2024

Section 150-314-0431 - Sales Factor; Sales of Tangible Personal Property to United States Government in this State

(1) Gross receipts from the sales of tangible personal property to the United States Government are in this state if the property is shipped from an office, store, warehouse, factory, or other place of storage in this state, except as prohibited in paragraph (2) of this rule. For the purposes of this rule, only sales for which the United States Government makes direct payment to the seller pursuant to the terms of its contract constitute sales to the United States Government. Thus, as a general rule, sales by a subcontractor to the prime contractor, the party to the contract with the United States Government, do not constitute sales to the United States Government.

Example 1: A taxpayer contracts with General Services Administration to deliver X number of trucks which were paid for by the United States Government. The sale is a sale to the United States Government.

Example 2: The taxpayer as a subcontractor to a prime contractor with the National Aeronautics and Space Administration contracts to build a component of a rocket for $1,000,000. A sale by the subcontractor to the prime contractor is not a sale to the United States Government.

(2) For tax years beginning on or after January 1, 1994, gross receipts from the sales of tangible personal property to the United States Government are not in this state if:

(a) The sales are properly included in the numerator of a formula used to apportion apportionable income to another state of the United States, a foreign country or the District of Columbia; and

(b) The other state, foreign country or the District of Columbia has properly imposed a tax on or measured by the apportioned business income.

Or. Admin. Code § 150-314-0431

12-70; 8-73; RD 7-1993, f. 12-30-93, cert. ef. 12-31-93; Renumbered from 150-314.665(2)-(B), REV 35-2016, f. 8-12-16, cert. ef. 9/1/2016; REV 68-2017, amend filed 12/22/2017, effective1/1/2018

Statutory/Other Authority: ORS 305.100

Statutes/Other Implemented: ORS 314.665