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Schedule OR-TSE-AP Instructions
Oregon Transit Self-Employment 2022
Tax Apportionment
This publication is a guide, not a complete statement, of Oregon Revised Statutes (ORS) and Oregon Administrative Rules (OAR).
For possible updates and more information, visit www.oregon.gov/dor/business.
use Schedule AP-1, unless you meet the exception below.
Purpose of Schedule OR-TSE-AP
Exception: Use Schedule AP-2 if you’re an electing utility or
Schedule OR-TSE-AP is used for all self-employed indi- telecommunications taxpayer.
viduals that are doing business both in and out of the transit
district. Use this schedule with Forms OR-TM and OR-LTD. Remember: If you meet the exception and elect this option,
please check the box "Utility or telecommunications" on the
Each individual carrying on business both inside and outside front of Form OR-TM or Form OR-LTD.
the district must complete this form and include it when
filing their return. The election is for taxpayers primarily engaged in utilities
and telecommunications to apportion income using the
double-weighted sales factor formula provided in ORS
Apportionment and allocation 314.650 (1999 edition). This election may be revoked later.
Apportionment is dividing apportionable income inside and
outside the district by use of a formula. Allocation is the as- Apportionment factors
signment of specific nonapportionable income to the district.
Most individuals with self-employment income and busi- 1. Property factor
ness activities both inside and outside the district must use Business property within the district is entered on line 1a.
the apportionment and allocation methods provided in the All owned or rented business property should be entered
Uniform Division of Income for Tax Purpose Act (UDITPA) on line 1b.
(ORS 314.605 through 314.690 and supporting administra-
tive rules). • Owned property is valued at original cost. Show the
average value during the taxable year of real and tan-
Rounding to whole dollars. Enter amounts as whole dol- gible personal property used in the business. This is the
lars only. Example: $4,681.55 becomes $4,682; and $8,775.22 average of property values at the beginning and the end
becomes $8,775. of the tax period. An average of the monthly values may
Rounding percentages. When computing the property, be required if a more reasonable value results.
payroll, and sales factor percentages, round the percentage • Rented property is valued at eight times the annual
to four decimal places. For example, 12.34558 percent should rent you pay. The annual rent paid must be reduced by
be 12.3456 percent. nonbusiness subrentals.
2. Payroll factor
Partnership apportionment Compensation to employees for services performed must
be included in the payroll factor. Payroll is assigned to the
If a partnership elects to file and pay the transit self-employ- district if:
ment tax for all of its participating individual partners, the
• The services are performed entirely inside the district;
partnership must use net earnings from self-employment
or
as reported on federal Form 1065 to figure the tax. The ap-
• The services are performed both in and out of the district,
portionment is based on the partnership as a whole, not the
but those services performed outside are only incidental;
individual partner.
or
Example: Self-employment earnings from partnership • Some of the services are performed in the district and, (a)
the base of operation or control is located in the district
Form 1065 ..............................................................$ 2,000,000
or, (b) the base of operation or control isn’t in the district
Sales within transit district .................................$ 35,000
or in any district where the employee’s services are per-
Total partnership sales .........................................$ 3,000,000
formed, but the employee’s residence is in the district.
Transit apportionment ......................................... .011667
Net self-employment earnings ...........................$ 23,334 3. Sales factor
Complete Schedule OR-TSE-AP, Schedules AP-1 or AP-2, to The sales factor is the percentage that sales or other self-
determine the apportionment percent. Most taxpayers will employment gross receipts within the district compare to
150-500-051-1 (Rev. 10-04-22) 1 2022 Schedule OR-TSE-AP Instructions
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