Oregon Revised Statutes (Tax Chapters)

ORS § 314.669

Legislative findings; purposes

Official textoregonlegislature.govlast amended 201713 subsections

# (1)

The Legislative Assembly finds that:

# (a)

The State of Oregon has a compelling interest in promoting and stimulating economic development within this state to better provide for the welfare of its residents, in encouraging businesses to make significant capital investments within this state and in creating certainty in the apportionment of income for purposes of income and corporate excise taxation that achieves these ends;

# (b)

Use of the single sales factor method to apportion income promotes an economic development climate that encourages businesses to locate and remain within this state, encourages existing Oregon businesses to expand their operations in Oregon and creates incentives for businesses to make significant capital investments within this state;

# (c)

Qualifying investments will create significant, long-term economic benefits and serve as the catalyst for additional economic expansion within the State of Oregon;

# (d)

It is in the interest of the State of Oregon to authorize the Governor, in consultation with the Director of the Oregon Business Development Department and the Director of the Department of Revenue, to enter into qualifying investment contracts for purposes of stimulating economic development through qualifying investments;

# (e)

In consideration for making qualifying investments, taxpayers should be entitled to rely on the continued application of the single sales factor method to apportion their income for tax purposes;

# (f)

Factors to be considered in determining the duration of the term of a qualifying investment contract should include, without limitation, the number of new employees to be added to the Oregon workforce of the taxpayer when the qualifying investment is complete, the duration and compensation of the new jobs created, other economic development incentives received by the company and the extent to which the qualifying investment will create employment opportunities in rural Oregon; and

# (g)

The State of Oregon has a compelling interest in contractually guaranteeing to taxpayers making qualifying investments that such taxpayers may rely on the single sales factor method as the applicable method to determine the portion of apportionable income subject to income or corporate excise tax in the State of Oregon.

# (2)

The purposes of ORS 314.668 to 314.673 are:

# (a)

To promote and stimulate economic development by creating an incentive for qualifying investments;

# (b)

To authorize the Governor, in consultation with the Director of the Oregon Business Development Department and the Director of the Department of Revenue, to enter into qualifying investment contracts on behalf of this state; and

# (c)

To ratify any qualifying investment contracts entered into on or after December 14, 2012.

# (3)

The intent of the Legislative Assembly is for ORS 314.668 to 314.673 to establish a contractually binding obligation under which taxpayers that execute qualifying investment contracts with the State of Oregon may rely on the single sales factor method of apportionment to apportion their apportionable income for each tax year of the taxpayer that ends during the term of the qualifying investment contract.

Amendment history

2012 s.s. c.1 §4; 2017 c.43 §7

Source: view the official text

In this chapter (40 sections)

Full table of contents →