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2017 Op. Or. Att'y Gen. 1 (2017)

handle is hein.sag/sagor0084 and id is 1 raw text is: 


ELLEN F. ROSENBLUM                                                                  FREDERICK M. BOSS
Attorney General                                                                       Deputy Attorney General



                                    DEPARTMENT OF JUSTICE
                                      GENERAL  COUNSEL  DIVISION

                                            April 14, 2017


        SENT  VIA EMAIL  ONLY:   Jason.LARIMER@state.or.us


        Jason Larimer
        Corporation and Estate Section
        Oregon Department of Revenue
        955 Center Street NE
        Salem, OR 97301

        Re:   Opinion Request OP-2017-1

        Dear Mr. Larimer:

              The Department of Revenue (department) asked a question relating to the use of corporate
       minimum   tax revenues. The department's question is set out below, followed by our short
       answer and a discussion.

                                             QUESTION

              Is the corporate minimum tax imposed under ORS 317.090 a tax levied on, with respect
       to, or measured by the sale of motor vehicle fuel for purposes of Article IX, section 3a, of the
       Oregon  Constitution as to receipts by corporations that sell motor vehicle fuel?

                                         SHORT ANSWER

              No. We  conclude that receipts from the minimum tax under ORS 317.090 are not the type
       of highway user taxes that are dedicated to highway purposes under Article IX, section 3a.

                                            DISCUSSION

       1.     Opinion Summary

              Corporations are subject to an excise tax for the privilege of doing business in Oregon.
       ORS  chapter 317 (Corporate Excise Tax Law). The tax generally is calculated as a percentage of
       Oregon taxable income. ORS 317.070. Sometimes corporations - even those with sizable
       Oregon sales - have little or no taxable income. Those corporations still must pay a
       cminimum tax for the privilege of doing business in Oregon. ORS 317.090.

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