Oregon Revised Statutes

Or. Rev. Stat. § 314.610 (2026)

Definitions for ORS 314.605 to 314.675

✓ current as of May 2026
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      314.610 Definitions for ORS 314.605 to 314.675. As used in ORS 314.605 to 314.675, unless the context otherwise requires:

      (1) “Apportionable income” means:

      (a)(A) Income arising from transactions and activity in the regular course of the taxpayer’s trade or business;

      (B) Income arising from the acquisition, management, employment, development or disposition of tangible and intangible property if the acquisition, management, employment, development or disposition is related to the operation of the taxpayer’s trade or business; and

      (C) Any other income that is apportionable under the Constitution of the United States and not allocated under the laws of this state; and

      (b) Any income that would be allocable to this state under the Constitution of the United States, but that is apportioned rather than allocated pursuant to the laws of this state.

      (2) “Commercial domicile” means the principal place from which the trade or business of the taxpayer is directed or managed.

      (3) “Compensation” means wages, salaries, commissions and any other form of remuneration paid to employees for personal services.

      (4) “Financial institution” means a person, corporation or other business entity that is any of the following:

      (a) A bank holding company under the laws of this state or under the federal Bank Holding Company Act of 1956, 12 U.S.C. 1841 et seq., as amended.

      (b) A savings and loan holding company under the National Housing Act, 12 U.S.C. 1701 et seq., as amended.

      (c) A national bank organized and existing as a national bank association under the National Bank Act, 12 U.S.C. 21 et seq., as amended.

      (d) A savings association, as defined in 12 U.S.C. 1813(b)(1), as amended.

      (e) A bank or thrift institution incorporated or organized under the laws of any state.

      (f) An entity organized under the provisions of 12 U.S.C. 611 to 631, as amended.

      (g) An agency or branch of a foreign bank, as defined in 12 U.S.C. 3101, as amended.

      (h) A state credit union with loan assets that exceed $50,000,000 as of the first day of the taxable year of the state credit union.

      (i) A production credit association subject to 12 U.S.C. 2071 et seq., as amended.

      (j) A corporation, more than 50 percent of the voting stock of which is owned, directly or indirectly, by a person, corporation or other business entity described in paragraphs (a) to (i) of this subsection, provided that the corporation is not an insurer taxable under ORS 317.655.

      (k) An entity that is not otherwise described in this subsection, that is not an insurer taxable under ORS 317.655 and that derives more than 50 percent of its gross income from activities that a person, corporation or entity described in paragraph (c), (d), (e), (f), (g), (h), (i) or (L) of this subsection is authorized to conduct, not taking into account any income derived from nonrecurring extraordinary sources.

      (L) A person that derives at least 50 percent of the person’s annual average gross income, for financial accounting purposes for the current tax year and the two preceding tax years, from finance leases, excluding any gross income from incidental or occasional transactions. For purposes of this paragraph, “finance lease” means:

      (A) A lease transaction that is the functional equivalent of an extension of credit and that transfers substantially all of the benefits and risks of the ownership of the leased property;

      (B) A direct financing lease or a leverage lease that meets the criteria of Financial Accounting Standards Board Statement No. 13; or

      (C) Any other lease that is accounted for as a financing by a lessor under generally accepted accounting principles.

      (5) “Nonapportionable income” means all income other than apportionable income.

      (6) “Public utility” means any business entity whose principal business is ownership and operation for public use of any plant, equipment, property, franchise, or license for the transmission of communications, transportation of goods or persons, or the production, storage, transmission, sale, delivery, or furnishing of electricity, water, steam, oil, oil products or gas.

      (7) “Sales” means all gross receipts of the taxpayer that are not allocated under ORS 314.615 to 314.645 and that are received from transactions and activity occurring in the regular course of the taxpayer’s trade or business, except:

      (a)(A) Receipts from hedging transactions and from the maturity, redemption, sale, exchange, loan or other disposition of cash or securities;

      (B) Property or money received or acquired by an agent, intermediary, fiduciary or other person acting in a similar capacity on behalf of another in excess of the recipient’s commission, fee or other remuneration; or

      (C) Amounts received from others and held in trust by the taxpayer; or

      (b) Other exceptions designated by rule by the Department of Revenue.

      (8) “State” means any state of the United States, the District of Columbia, the Commonwealth of Puerto Rico, any territory or possession of the United States, and any foreign country or political subdivision thereof. [1965 c.152 §2; 1997 c.631 §452; 2009 c.403 §1; 2017 c.43 §1; 2017 c.622 §1]

Notes of Decisions
Cited in 75 cases (6 in the last 5 years), 1970–2024 · leading case: Crystal Commc'ns, Inc. v. Dep't of Revenue, 297 P.3d 1256 (Or. 2013).
Crystal Commc'ns, Inc. v. Dep't of Revenue, 297 P.3d 1256 (Or. 2013). · cites it 14× “2 The terms “financial organization” and “public utility are defined by ORS 314.610. That statute defines “public utility as “any business entity whose principal business is ownership and operation for public use of any plant, equipment, property, franchise, or license for the…”
Simpson Timber Co. v. Dep't of Revenue, 953 P.2d 366 (Or. 1998). · cites it 21× “The Tax Court granted the department's motion for summary judgment to tax the entire amount of delay compensation. Ibid. Taxpayer appeals. To consider whether the delay compensation is business income of taxpayer's unitary business, we examine the statute defining "business…”
Oracle Corp. & Subsidiaries II v. Dept. of Rev., 24 Or. Tax 359 (Or. T.C. 2021). · cites it 10× “parties now agree that the Dividends and the Subpart F Income are business income, the court sets forth the definition of that term here because the court finds its components relevant for purposes of the later discussion of the 1995 law at issue: “ ‘Business income’ means…”
Tektronix, Inc. & Subsidiaries v. Dep't of Revenue, 316 P.3d 276 (Or. 2013). · cites it 5× “” ORS 314.610(1). Business income is apportioned among the relevant states using a formula — basically, one in which the total business income is multiplied by a fraction representing the share of income that can properly be attributed to each state.”
Powerex Corp. v. Dept. of Rev., 24 Or. Tax 146 (Or. T.C. 2020). · cites it 15× “In summarizing several of the definitions now codified in ORS 314.610, Roberts gave the following over- view of the UDITPA definition of “public utility” and the pro- posed change: “Public utilities, as in Oregon law, are placed in a special category.”
At&T Corp. & Includible Subsidiaries v. Dep't of Revenue, 358 P.3d 973 (Or. 2015). · cites it 5× “280 provides, in part: “(1) If a taxpayer has income from business activity * * * as a public utility (as defined respectively in ORS 314.610 *** (6)) which is taxable both within and without this state (as defined in ORS 314.”
Twentieth Century-Fox Film Corp. v. Dep't of Revenue, 700 P.2d 1035 (Or. 1985). · cites it 5× “670 (Section 18 of UDITPA), which provides: “If the allocation and apportionment provisions of ORS 314.610 to 314.665 do not fairly represent the extent of the taxpayer’s business activity in this state, the taxpayer may petition for and the department may permit, or the…”
Willamette Indus., Inc. v. Dep't of Revenue, 15 P.3d 18 (Or. 2000). · cites it 9× “” In this instance, the pertinent legislative enactment, ORS 314.610(1), defines “business income” as follows: “ ‘Business income’ means income arising from transactions and activity in the regular course of the taxpayer’s trade or business and includes income from tangible and…”
Polaroid Corp. v. Offerman, 507 S.E.2d 284 (N.C. 1998). · cites it 2× “2d at 369 (quoting Or. Rev. Stat. § 314.610 (1) (1987)). The Oregon court concluded that since the timber and the land on which it was growing were assets admittedly acquired and used as integral parts of Simpson Timber’s business, the income received from those assets, no…”
Pennzoil Co. v. Dep't of Revenue, 33 P.3d 314 (Or. 2001). · cites it 3× ““Business income” is “income arising from transactions and activity in the regular course of the taxpayer’s trade or business and includes income from tangible and intangible property if the acquisition, the management, use or rental, and the disposition of the property…”
Capital One Auto Fin., Inc. v. Dept. of Rev., 22 Or. Tax 326 (Or. T.C. 2016). · cites it 2× “090 apply prospectively and to any periods open to audit for the entities listed in amended ORS 314.610(4) (a) through (i). The entities at issue here are financial institutions as listed in ORS 314.”
Pennzoil Co. v. Dep't of Revenue, 15 Or. Tax 101 (Or. T.C. 2000). · cites it 9× “Accordingly, the legislature directs that: “(2) ORS 314.610 to 314.670 shall be so construed as to effectuate its general purpose to make uniform the law of those states which enact it.”
— Or. Rev. Stat. § 314.610(1) — 29 cases
Crystal Commc'ns, Inc. v. Dep't of Revenue, 297 P.3d 1256 (Or. 2013). “2 The terms “financial organization” and “public utility are defined by ORS 314.610. That statute defines “public utility as “any business entity whose principal business is ownership and operation for public use of any plant, equipment, property, franchise, or license for the…”
Simpson Timber Co. v. Dep't of Revenue, 953 P.2d 366 (Or. 1998). “The Tax Court granted the department's motion for summary judgment to tax the entire amount of delay compensation. Ibid. Taxpayer appeals. To consider whether the delay compensation is business income of taxpayer's unitary business, we examine the statute defining "business…”
Willamette Indus., Inc. v. Dep't of Revenue, 15 P.3d 18 (Or. 2000). “” In this instance, the pertinent legislative enactment, ORS 314.610(1), defines “business income” as follows: “ ‘Business income’ means income arising from transactions and activity in the regular course of the taxpayer’s trade or business and includes income from tangible and…”
Tektronix, Inc. & Subsidiaries v. Dep't of Revenue, 316 P.3d 276 (Or. 2013). “” ORS 314.610(1). Business income is apportioned among the relevant states using a formula — basically, one in which the total business income is multiplied by a fraction representing the share of income that can properly be attributed to each state.”
Oracle Corp. & Subsidiaries II v. Dept. of Rev., 24 Or. Tax 359 (Or. T.C. 2021). “parties now agree that the Dividends and the Subpart F Income are business income, the court sets forth the definition of that term here because the court finds its components relevant for purposes of the later discussion of the 1995 law at issue: “ ‘Business income’ means…”
— Or. Rev. Stat. § 314.610(4) — 10 cases
Capital One Auto Fin., Inc. v. Dept. of Rev., 22 Or. Tax 326 (Or. T.C. 2016). “090 apply prospectively and to any periods open to audit for the entities listed in amended ORS 314.610(4) (a) through (i). The entities at issue here are financial institutions as listed in ORS 314.”
US Bancorp v. Dep't of Revenue, 13 Or. Tax 84 (Or. T.C. 1994).
Oracle Corp. & Subsidiaries II v. Dept. of Rev., 24 Or. Tax 359 (Or. T.C. 2021). “parties now agree that the Dividends and the Subpart F Income are business income, the court sets forth the definition of that term here because the court finds its components relevant for purposes of the later discussion of the 1995 law at issue: “ ‘Business income’ means…”
Stonebridge Life Ins. v. Dep't of Revenue, 18 Or. Tax 423 (Or. T.C. 2006).
U.S. Bancorp v. Dep't of Revenue, 103 P.3d 85 (Or. 2004).
— Or. Rev. Stat. § 314.610(4)(a) — 1 case
Capital One Auto Fin., Inc. v. Dept. of Rev., 22 Or. Tax 326 (Or. T.C. 2016). “090 apply prospectively and to any periods open to audit for the entities listed in amended ORS 314.610(4) (a) through (i). The entities at issue here are financial institutions as listed in ORS 314.”
— Or. Rev. Stat. § 314.610(5) — 10 cases
Oracle Corp. & Subsidiaries II v. Dept. of Rev., 24 Or. Tax 359 (Or. T.C. 2021). “parties now agree that the Dividends and the Subpart F Income are business income, the court sets forth the definition of that term here because the court finds its components relevant for purposes of the later discussion of the 1995 law at issue: “ ‘Business income’ means…”
Crystal Commc'ns, Inc. v. Dep't of Revenue, 297 P.3d 1256 (Or. 2013). “2 The terms “financial organization” and “public utility are defined by ORS 314.610. That statute defines “public utility as “any business entity whose principal business is ownership and operation for public use of any plant, equipment, property, franchise, or license for the…”
Pennzoil Co. v. Dep't of Revenue, 33 P.3d 314 (Or. 2001). ““Business income” is “income arising from transactions and activity in the regular course of the taxpayer’s trade or business and includes income from tangible and intangible property if the acquisition, the management, use or rental, and the disposition of the property…”
Simpson Timber Co. v. Dep't of Revenue, 953 P.2d 366 (Or. 1998). “The Tax Court granted the department's motion for summary judgment to tax the entire amount of delay compensation. Ibid. Taxpayer appeals. To consider whether the delay compensation is business income of taxpayer's unitary business, we examine the statute defining "business…”
Comcast Corp. II v. Dept. of Rev. (TC 5265), 24 Or. Tax 250 (Or. T.C. 2020).
— Or. Rev. Stat. § 314.610(6) — 12 cases
Powerex Corp. v. Dept. of Rev., 24 Or. Tax 146 (Or. T.C. 2020). “In summarizing several of the definitions now codified in ORS 314.610, Roberts gave the following over- view of the UDITPA definition of “public utility” and the pro- posed change: “Public utilities, as in Oregon law, are placed in a special category.”
At&T Corp. & Includible Subsidiaries v. Dep't of Revenue, 358 P.3d 973 (Or. 2015). “280 provides, in part: “(1) If a taxpayer has income from business activity * * * as a public utility (as defined respectively in ORS 314.610 *** (6)) which is taxable both within and without this state (as defined in ORS 314.”
Crystal Commc'ns, Inc. v. Dep't of Revenue, 297 P.3d 1256 (Or. 2013). “2 The terms “financial organization” and “public utility are defined by ORS 314.610. That statute defines “public utility as “any business entity whose principal business is ownership and operation for public use of any plant, equipment, property, franchise, or license for the…”
Fisher Broad., Inc. v. Dep't of Revenue, 13 Or. Tax 32 (Or. T.C. 1994).
At&T v. Dep't of Revenue, 15 Or. Tax 202 (Or. T.C. 2000).
— Or. Rev. Stat. § 314.610(7) — 20 cases
Oracle Corp. & Subsidiaries II v. Dept. of Rev., 24 Or. Tax 359 (Or. T.C. 2021). “parties now agree that the Dividends and the Subpart F Income are business income, the court sets forth the definition of that term here because the court finds its components relevant for purposes of the later discussion of the 1995 law at issue: “ ‘Business income’ means…”
Tektronix, Inc. & Subsidiaries v. Dep't of Revenue, 316 P.3d 276 (Or. 2013). “” ORS 314.610(1). Business income is apportioned among the relevant states using a formula — basically, one in which the total business income is multiplied by a fraction representing the share of income that can properly be attributed to each state.”
The Sherwin-Williams Co. v. Dep't of Rev., 14 Or. Tax 384 (Or. T.C. 1998).
At&T Corp. & Includible Subsidiaries v. Dep't of Revenue, 358 P.3d 973 (Or. 2015). “280 provides, in part: “(1) If a taxpayer has income from business activity * * * as a public utility (as defined respectively in ORS 314.610 *** (6)) which is taxable both within and without this state (as defined in ORS 314.”
— Or. Rev. Stat. § 314.610(8) — 10 cases
Crystal Commc'ns, Inc. v. Dep't of Revenue, 297 P.3d 1256 (Or. 2013). “2 The terms “financial organization” and “public utility are defined by ORS 314.610. That statute defines “public utility as “any business entity whose principal business is ownership and operation for public use of any plant, equipment, property, franchise, or license for the…”
At&T Corp. & Includible Subsidiaries v. Dep't of Revenue, 358 P.3d 973 (Or. 2015). “280 provides, in part: “(1) If a taxpayer has income from business activity * * * as a public utility (as defined respectively in ORS 314.610 *** (6)) which is taxable both within and without this state (as defined in ORS 314.”
US Bancorp v. Dep't of Revenue, 13 Or. Tax 84 (Or. T.C. 1994).
Gilmore Steel Corp. v. Dep't of Revenue, 9 Or. Tax 210 (Or. T.C. 1982).
Dep't of Revenue v. Penn Indep. Corp., 15 Or. Tax 68 (Or. T.C. 1999).
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