150-102-020-1 (Rev. 10-15-21) 7 2021 Form OR-20 Instructions
broadcasting sales to Oregon. Taxpayers with broadcast-
ing sales may elect to apply their audience/subscriber
factor to all their gross receipts except sales of real prop-
erty and tangible personal property. In certain circum-
stances, taxpayers may source receipts from advertising
on or licensing to subscription services using a statuto-
rily prescribed 0.6% apportionment factor. See SB 136 for
more information.
If your corporation, or one or more of the affiliates filing
as part of your consoli dated return, is engaged in broad-
casting, check the box for Question M on your Form
OR-20.
Exempt organizations
If you’re an exempt organization under IRC §§501(c)
through (f), 501(j), 501(n), 521, or 529, you’re exempt from
Oregon corporation taxes [ORS 317.080 (1)–(8)]. Apply to
the IRS for exempt status, don’t apply to us. Two excep-
tions are nonprofit homes for the elderly and people’s
utility districts established under ORS Chapter 261.
If you’re exempt from Oregon tax and don’t have unre-
lated business taxable income (UBTI) as defined in IRC
§512, don’t file an Oregon tax return. UBTI is gross unre-
lated business income less allowable deductions, includ-
ing a special $1,000 deduction.
If you have UBTI, file Form OR-20 and include a copy
of your federal Form 990-T. Organizations exempt from
federal tax, but not exempt from Oregon tax, must also
file FormOR-20 and include a copy of federal Form 990-T.
An exempt organization filing Oregon Form OR-20 is
subject to the greater of calculated excise tax based on
UBTI apportioned or allocated to Oregon or Oregon
minimum tax. For minimum tax purposes, include in
“Oregon sales” only gross unrelated business income
apportioned or allocated to Oregon. Tax-exempt gross
income isn’t included.
Note: Some religious organizations that qualify under
IRC § 501(d) may file as partnerships.
Homeowners associations
A homeowners association organized and operated
under IRC §528(c) may elect to be treated as a tax-exempt
organization (ORS 317.080). The association must make
the election no later than the time prescribed by law for
filing the return. A copy of the federal Form 1120-H filed
with the IRS will constitute this election when filed with
us. Tax-exempt status will only exempt the association
from tax on the exempt function income, such as mem-
bership dues, fees, and assessments from member-own-
ers of residential units in the particular condominium or
subdivision involved. Oregon follows the federal defini-
tion of nonexempt function income.
Don’t file Form OR-20 if you don’t have nonexempt
function income for Oregon tax purposes. Only file a
copy of your federal Form 1120-H with us.
File an Oregon Form OR-20, with a copy of federal Form
1120-H, if the association has taxable income. Homeown-
ers association taxable income for Oregon is generally
the same as for federal purposes. It’s gross nonexempt
income less directly-related deductions, less the specific
$100 deduction. However, net capital gains are included
in the computation and receive no special treatment.
An association filing Oregon Form OR-20 is subject to
the greater of calculated excise tax or Oregon minimum
tax. For minimum tax purposes, include in “Oregon
sales” only Oregon nonexempt function income.
Insurers
Insurers that have a separate return filing require-
ment under ORS 317.710(5) and (7) can’t be included in
an Oregon consolidated return. Instead, they generally
determine Oregon corporate excise tax on a separate
basis. The remaining affiliates in the Oregon consoli-
dated return compute their modified federal consoli-
dated taxable income after exclusion of the insurer with
the separate return filing requirement. Also, the Oregon
consolidated return receives a 100 percent dividends-
received deduction if a dividend is paid by an insurer
that have a separate return filing requirement. See Form
OR-20-INS and instructions for more information about
insurance company filing requirements.
Interest charge domestic international sales
corporations (IC-DISCs) (ORS 317.283)
If your corporation is an IC-DISC, file Form OR-20 and
check the IC-DISC checkbox at the top of the form.
• An IC-DISC formed on or before January 1, 2014 is
exempt from minimum tax. Complete your Form
OR-20 using the instructions below.
• Commissions received by an IC-DISC formed on or
before January 1, 2014 are taxed at 2.5 percent.
• An IC-DISC formed after January 1, 2014 isn’t exempt
from minimum tax. However, it’s disregarded to the
extent it has transactions with related parties. If you
have transactions other than with related parties, com-
plete your Form OR-20 as a normal corporation filer,
and check the IC-DISC checkbox in the return header.
The Oregon IC-DISC return is due by the 15th day of the
month following the due date of the federal return. For
example, a calendar-year federal Form 1120-IC-DISC is
due nine months after the year-end (September 15). The
Oregon return for the IC-DISC is due October 15.
If the 15th falls on a Saturday, Sunday, or legal holiday,
the due date is the next business day. No extensions are
allowed for IC-DISC returns per federal and Oregon laws.