Bill > HB2115

This bill modifies Oregon's tax code regarding the calculation of business income sales factors, specifically changing how sales are attributed to the state for tax purposes. Currently, sales to states where a taxpayer is not taxed were considered sales in Oregon, but the bill eliminates this rule. The bill removes language that previously allowed sales to be counted in Oregon's sales factor if they were not already included in another state's tax apportionment formula. The changes will apply to tax years beginning on or after January 1, 2026, and the bill will take effect 91 days after the 2025 legislative session adjourns. The modification impacts how businesses calculate their sales factor, which is a fraction used to determine the portion of a company's total sales that are attributed to Oregon for tax purposes. The bill aims to provide a more precise method of apportioning business income by removing the previous blanket rule about sales in non-taxable states. Technical terms like "sales factor," "f.o.b. point" (free on board), and references to Internal Revenue Code sections are used to define the specific tax calculation methodology.

Budget and Finance

https://olis.oregonlegislature.gov/liz/2025R1/Measures/Overview/HB2115