Contracts Requiring Certificate of Compliance with Oregon Tax Laws

# (1)

(1) An agency must obtain a certificate of compliance with Oregon tax laws from providers before entering into certain contracts. Those contracts or agreements under which goods, services, or real estate space will be provided directly to such agencies in the future require certification.

(a) For purposes of this rule, "agency" means any department, board, commission, division or authority of the State of Oregon, or any political subdivision of this state which imposes a local tax administered by the Department of Revenue under ORS 305.620. See ORS 305.380(1).

(b) For purposes of this rule, "tax" means those programs listed in ORS 305.380(4). Examples include the estate tax, personal income tax, withholding tax, corporation income and excise taxes, amusement device tax, timber taxes, cigarette tax, other tobacco tax, 9-1-1 emergency communications tax, and local taxes administered by the Department of Revenue (Lane Transit District Self-Employment Tax, Lane Transit District Employer Payroll Tax, Tri-Metropolitan Transit District Employer Payroll Tax, and Tri-Metropolitan Transit District Self-Employment Tax).

(c) For purposes of this rule, "provider" means any individual, corporation, association, firm, partnership, or joint stock company who contracts to supply goods, services, or real estate space to an agency. See ORS 305.380(3). Out of state and nonprofit entities are included in this definition. The term provider shall not include the United States, its territories or possessions, state, local, or foreign governments, and the political subdivisions and agencies thereof.

# (2)

(2) The following contracts do not require contractor certification:

(a) Purchase orders and contract release orders issued by state agencies to vendors or providers.

(b) Credit card purchases. The contract requiring a certificate of compliance with Oregon tax laws is between the agency in whose name the credit card is issued and the issuer of the credit card; not the agency and the vendor of goods and services purchased with the credit card.

(c) Third party contracts and purchases. Many agencies pay for goods or services that are provided to third parties. Some examples are:

(A) Adult and Family Services (AFS) pays physicians directly for service provided to AFS clients.

(B) Seniors and People with Physical Disabilities (SPPD) enters into "provider agreements" with nursing homes for the benefit of elderly residents of those nursing homes. Payment is made directly by SPPD to the nursing home.

(C) Reimbursement of travel expenses. State agencies make payments to their employees to reimburse travel expenses such as meals, lodging, airfare, and automobile expenses. The costs have been incurred by the employee directly.

(d) Contracts with a consideration of no more than $1,000.