Oregon Code § 305.653·Enacted ·Last updated March 01, 2026
Statute Text
Multistate Tax Compact.
The Multistate Tax Compact is hereby enacted into law and entered into on
behalf of this state with all other jurisdictions legally joining therein in a
form substantially as follows:
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ARTICLE I
PURPOSES
The purposes of
this compact are to:
1. Facilitate
proper determination of state and local tax liability of multistate taxpayers,
including the equitable apportionment of tax bases and settlement of
apportionment disputes.
2. Promote
uniformity or compatibility in significant components of tax systems.
3. Facilitate
taxpayer convenience and compliance in the filing of tax returns and in other
phases of tax administration.
4. Avoid
duplicative taxation.
ARTICLE II
DEFINITIONS
As used in this
compact:
1. State means
a state of the United States, the District of Columbia, the Commonwealth of
Puerto Rico, or any territory or possession of the United States.
2. Subdivision
means any governmental unit or special district of a state.
3. Taxpayer
means any corporation, partnership, firm, association, governmental unit or
agency or person acting as a business entity in more than one state.
4. Income tax
means a tax imposed on or measured by net income including any tax imposed on
or measured by an amount arrived at by deducting expenses from gross income,
one or more forms of which expenses are not specifically and directly related
to particular transactions.
5. Capital stock
tax means a tax measured in any way by the capital of a corporation considered
in its entirety.
6. Gross
receipts tax means a tax, other than a sales tax, which is imposed on or
measured by the gross volume of business, in terms of gross receipts or in
other terms, and in the determination of which no deduction is allowed which
would constitute the tax an income tax.
7. Sales tax
means a tax imposed with respect to the transfer for a consideration of
ownership, possession or custody of tangible personal property or the rendering
of services measured by the price of the tangible personal property transferred
or services rendered and which is required by state or local law to be
separately stated from the sales price by the seller, or which is customarily
separately stated from the sales price, but does not include a tax imposed
exclusively on the sale of a specifically identified commodity or article or
class of commodities or articles.
8. Use tax
means a nonrecurring tax, other than a sales tax, which (a) is imposed on or
with respect to the exercise or enjoyment of any right or power over tangible
personal property incident to the ownership, possession or custody of that
property or the leasing of that property from another including any
consumption, keeping, retention, or other use of tangible personal property and
(b) is complementary to a sales tax.
9. Tax means an
income tax, capital stock tax, gross receipts tax, sales tax, use tax, and any
other tax which has a multistate impact, except that the provisions of Article
V of this compact shall apply only to the taxes specifically designated
therein.
ARTICLE III
ELEMENTS OF INCOME TAX
LAWS
(Intentionally omitted)
ARTICLE IV
DIVISION OF INCOME
(Intentionally omitted)
ARTICLE V
ELEMENTS OF SALES AND
USE TAX LAWS
1.
Tax credit
.
Each purchaser liable for a use tax on tangible personal property shall be
entitled to full credit for the combined amount or amounts of legally imposed
sales or use taxes paid by him with respect to the same property to another
state and any subdivision thereof. The credit shall be applied first against
the amount of any use tax due the state, and any unused portion of the credit
shall then be applied against the amount of any use tax due a subdivision.
2.
Exemption
certificates, vendors may rely
. Whenever a vendor receives and accepts in
good faith from a purchaser a resale or other exemption certificate or other
written evidence of exemption authorized by the appropriate state or
subdivision taxing authority, the vendor shall be relieved of liability for a
sales or use tax with respect to the transaction.
ARTICLE VI
THE COMMISSION
1.
Organization
and management
. (a) The Multistate Tax Commission is hereby established. It
shall be composed of one member from each party state who shall be the head
of the state agency charged with the administration of the types of taxes to
which this compact applies. If there is more than one such agency the state
shall provide by law for the selection of the commission member from the heads
of the relevant agencies. State law may provide that a member of the commission
be represented by an alternate but only if there is on file with the commission
written notification of the designation and identity of the alternate. The
Attorney General of each party state or his designee, or other counsel if the
laws of the party state specifically provide, shall