OAR 150-314-0466: Definition of Programming and Subscription Services

(1) For purposes of Oregon Laws 2021, Chapter 74, Section 2(1)(a), broadcasting sales result from the transmission of programming in the course of “broadcasting” as defined by Oregon Laws 2021, Chapter 74, Section 2(1)(a). (2) Programming, as used by Oregon Laws 2021, Chapter 74, Section 2(1)(a), means one (1) or more performance, event, or production, or segments of performances, events, or productions, intended to be distributed for visual and/or auditory perception, including, but not limited to, news, entertainment, sporting events, plays, stories, or other literary, commercial, educational, or artistic works. EXAMPLE #1: National network XYZ transmits a televised version of the play Julius Caesar on March 15 every year. XYZ transmits over the air, through cable and on the internet. Julius Caesar is a performance that is intended to be distributed for visual and auditory perception by an audience. Therefore, Julius Caesar is programming. EXAMPLE #2: Game developer XYZ releases the game “23” as a tie in with the annual release of Julius Caesar. “23” is a multiplayer game that is streamed online with audio and visual components. However, “23” is not a performance, event or production for the purposes of this rule because “23” is not intended to be distributed for viewing or listening by an audience because the customers of “23” participate in the game. Accordingly, receipts from the streaming of “23” are not sourced using the broadcasting sales provisions. EXAMPLE #3: For profit Education provider XYZ streams a variety of college lectures over the internet. These lectures meet the definition of programming because the lectures are educational productions intended to be distributed for viewing and listening by an audience. (3) A subscription service, for purposes of Oregon Laws 2021, Chapter 74, Section 2(3), means a service provided by a cable service provider, a direct broadcast satellite system, an internet content distributor or any other distributor that charges viewers for access to any programming. (4) The election allowed under Oregon Laws 2021, Chapter 74, Section 2(4) is available to any taxpayer with any broadcasting sales. (5) The provisions of this rule apply to tax years beginning on or after January 1, 2020. [ Publications: C ontact the Oregon Department of Revenue for information about how to obtain a copy of the publication referred to or incorporated by reference in this rule pursuant to ORS 183.360(2) and ORS 183.355(1)(b).]