OAR 150-314-0349: Apportionment and Allocation for a Taxpayer Carrying on a Unitary Business

Where the taxpayer’s Oregon business activities are a part of a unitary business carried on both within and without the state, use of the apportionment method is mandatory to determine the portion of the unitary apportionable income attributable to Oregon. If the business activities within Oregon are integrated with, dependent upon, or contribute to the business activities outside the state, the entire operation is unitary in character, and the income from Oregon business activities is determined by the apportionment method. Whether the Oregon activities engaged in for financial profit actually result in a financial profit or loss is not determinative. A unitary business may be carried on by a single corporation or by a group of affiliated corporations.