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Schedule OR-21-AP Instructions 2022
Oregon Pass-through Entity Elective Tax
Apportionment of Income

Sales of tangible personal property
Purpose of Schedule OR-21-AP
In general, sales of tangible personal property are allocated
Any PTE with income from business activity that is taxable to Oregon if the property is:
by Oregon and one or more other states must apportion their
income according to Oregon’s Uniform Division of Income • Shipped or delivered to a purchaser in Oregon, other than
for Tax Purposes Act, ORS 314.605 to 314.675, unless the PTE the U.S. government.
is a financial institution or public utility. In that case, the • Shipped from an office, store, warehouse, factory, or other
PTE must apportion their income using the provisions of place of storage in Oregon, and the purchaser is the U.S.
ORS 314.280. PTEs doing all of their business within Oregon government or the PTE isn’t taxable in the purchaser’s
don’t need to use Schedule OR-21-AP. Include this schedule state.
when you file Form OR-21.
Taxability in another state. The PTE is taxable in another
state if the PTE is subject to a net income tax, a franchise tax
General information measured by net income, a franchise tax for the privilege of
Oregon income is the sum of the PTE’s Oregon apportioned doing business, or a corporate stock tax in that state. The PTE
income and income allocated to Oregon. is also taxable in another state if that state has jurisdiction to
subject the PTE to a tax that is imposed on or measured by
Apportionable income net income, even if the state doesn’t actually impose such a
Apportionable income is: tax on the PTE.
• Income from transactions and activity in the regular Other types of sales
course of the PTE’s business.
All other types of sales, including rentals, leases, licenses,
• Income from acquiring, managing, employing, develop- and charges for services, are in Oregon if the PTE’s market
ing, or disposing of tangible or intangible property if for sales is in Oregon.
related to the operation of the PTE’s business.
Market for sales in Oregon. A PTE’s market for sales is in
• Any other income that is apportionable under federal law Oregon in the following cases:
and not allocated under Oregon law or that is allocable
under federal law but is apportioned under Oregon law. • The sale, rental, lease, or license of real property, if the real
property is located in Oregon.
An apportionment formula is used to divide apportionable
income among the states where the PTE does business. The • The rental, lease, or license of tangible personal property
formula is based on the PTE’s sales factor. located in Oregon.
Sales factor. The sales factor is a fraction where the numera- • Charges for a service, if the service is delivered to a loca-
tor is the PTE’s total sales in Oregon and the denominator is tion in Oregon.
the PTE’s total sales everywhere during the tax year. For pur- Intangible property. The PTE’s market for sales of intangible
poses of the PTE-E tax, all of a PTE’s apportionable income
property that is sold by the PTE is in Oregon to the extent
must be apportioned using the sales factor.
that the property is used in Oregon. A contract right, gov-
Non-apportionable income. This is all income other than ernment license, or similar intangible property that autho-
apportionable income. Generally speaking, this includes rizes the holder to conduct a business activity in a specific
income from investments or other sources that are not geographic area is considered to be used in Oregon if the
related to the regular course of the PTE’s business. Non- geographic area includes all or part of Oregon.
apportionable income is allocated to a particular state based
upon the source of the income. The PTE’s market for sales of intangible property that is
rented, leased, or licensed is in Oregon to the extent that
Allocable income the property is used in Oregon. Sales of intangible property
Certain types of non-apportionable income are allocable that are contingent on the productivity, use, or disposition of
to Oregon under state law. Examples of income allocable the property are treated the same way as rented, leased, or
to Oregon include rents and royalties from real or tangible licensed property. If intangible property is used in market-
personal property, capital gains, interest, dividends, and ing goods or services to customers, it is used in Oregon if the
patent or copyright royalties. goods or services are purchased by a customer in Oregon.

150-107-111-1 (Rev. 09-13-22) 1 2022 Schedule OR-21-AP Instructions

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r. property that was used or considered to be used in Oregon
Line instructions during the tax year.
Line 1. Enter the total sales of tangible personal property Lines 7, 8, and 9. These lines are to be completed by insur-
that were shipped or delivered from outside the state to a ance companies only. For additional information about these
purchaser within Oregon other than the U.S. government items, see ORS 317.660, Oregon Administrative Rule (OAR)
during the tax year. 150-317-0480, and Schedule OR-AP Instructions.
Line 2. Enter the total sales of tangible personal property that Line 10. Add lines 1 through 9. These are the PTE’s total
were shipped from a store, warehouse or other place of stor- Oregon sales.
age within Oregon, other than sales to the U.S. government
Line 11. Enter the PTE’s total sales everywhere.
or to purchasers in a state where the PTE is not subject to tax.
Line 12. Divide the PTE’s total Oregon sales on line 10 by
Line 3. Enter the total sales to the U.S. government of tan-
the PTE’s total sales everywhere on line 11. Round to four
gible personal property that were shipped from a store,
decimal places and enter as a percentage. This is the PTE’s
warehouse, or other place of storage within Oregon.
apportionment percentage. Enter it on Form OR-21, line 19.
Line 4. Enter the total sales of tangible personal property
Include Schedule OR-21-AP when you file Form OR-21.
to purchasers in a state where the PTE is not subject to tax.
Line 5. Enter the PTE’s total Oregon sales from all partner-
ships of which the PTE is a partner. Use Schedule OR-PI as a Do you have questions or need help?

guide. The amount to enter would be the amount shown on www.oregon.gov/dor
Schedule OR-PI, line 3. (Note: Schedule OR-PI is a required 503-378-4988 or 800-356-4222
schedule for corporations that are partners in partnerships. questions.dor@dor.oregon.gov
It isn’t required to be filed with Form OR-21.)
Contact us for ADA accommodations or assistance in other
Line 6. Enter the total of all other business receipts, includ- languages.
ing charges for services delivered to a location in Oregon.
Include the rental, lease, license, or sale of intangible

150-107-111-1 (Rev. 09-13-22) 2 2022 Schedule OR-21-AP Instructions

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