ORS 317A.102 Determination of commercial activity of taxpayer engaged in farming operation

As used in this section:

“Agricultural commodity” includes all agricultural, horticultural, viticultural and vegetable products produced in this state, including bees and honey.

“Agricultural commodity” does not include timber or timber products.

“Broker” means any person, other than a dealer, commission merchant or cash buyer, that negotiates the purchase or sale of any agricultural commodity but does not handle the agricultural commodity.

“Farming operation” means an entity doing business in a sector described under codes 111, 112 or 115 of the North American Industry Classification System.

“Processor” means an entity doing business as a food processor, as defined in ORS 307.455, or as the operator of a custom processing establishment, as defined in ORS 603.010, or otherwise engaged in the business of preparing an agricultural commodity for first sale.

A taxpayer that is engaged in a farming operation that sells agricultural commodities to a broker, processor or wholesaler may demonstrate the percentage of the taxpayer’s goods sold in this state compared to outside this state, for purposes of determining commercial activity, by:

Obtaining, from the broker, processor or wholesaler receiving an agricultural commodity from the taxpayer, a certificate that states the percentage; or

Using an industry average percentage, for sales of the agricultural commodity made the previous tax year, that is based on the most recent information from the United States Department of Agriculture National Agricultural Statistics Service and other sources of sales information.