OAR 150-317-0150: Adoption of Federal Exempt Organizations

NOTE: Health Maintenance Organizations. With the adoption of Oregon Laws 1987, Ch. 293, Section 36, (Enrolled HB 2225), Oregon exempts the same organizations from Oregon corporation income or excise tax as tax exempt for federal tax purposes, with the exception of health maintenance organizations (HMOs). HMOs are not exempt from the Oregon Corporation income or excise tax for tax years beginning prior to January 1, 1989, if a substantial part of their activities consists of providing commercial type insurance. For tax years beginning on or after January 1, 1989, HMOs are exempt for Oregon tax purposes to the same extent they are exempt for federal tax purposes. For taxable years beginning prior to January 1, 1987, the law and corresponding rules applicable for those years shall remain in full force and effect. Insurance Companies. For tax years beginning on or after January 1, 1987 and before January 1, 1997, corporations exempt from Oregon corporation excise or income tax include; 1) Foreign or alien insurance companies and foreign or alien interinsurance and reciprocal exchanges, upon which a tax on premiums is levied; 2) Domestic insurance companies organized after January 1, 1971, owned or controlled by a foreign insurance company or by a foreign corporation owning or controlling a foreign insurance company, upon which a tax on premiums is levied. Effective for tax years beginning on or after January 1, 1997, foreign or alien insurance companies are exempt from the corporation excise tax only with respect to the underwriting profit derived from writing wet marine and transportation insurance subject to tax under ORS 731.824 and ORS 731.828. Other Exempt Corporation. Oregon specifically exempts those corporations listed under ORS 317.080, including: 1) Corporations organized and operated primarily for the purpose of furnishing permanent residential, recreational and social facilities primarily for elderly persons; 2) People’s utility districts established under ORS Chapter 261; 3) Charitable risk pools described in section 501(n) of the Internal Revenue Code; and 4) Qualified state tuition programs described in section 529 of the Internal Revenue Code.