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City of Portland

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LIC-6.13 - De Minimus Business Activity for Tangible Personal Property

DE MINIMUS BUSINESS ACTIVITY FOR TANGIBLE PERSONAL PROPERTY
Administrative Rules Adopted by Bureau of Licenses Pursuant to Rule-Making Authority
ARB-LIC-6.13

 
"De Minimus" means activity that is trivial, of little importance or significance. Activity that is not routine and continuing or has little or no tie to the production of income is considered de minimus. De minimus activity does not create nexus in a jurisdiction. See, for example, Wisconsin Dept of Revenue v Wrigley _US_, 120 LEd2d 174, 172 SCt 2447 (1992)
Example 1: Snazzy Jacket Company manufactures and warehouses all manufactured goods in the City. Employees take orders by phone and mail at the City location. All orders are filled from that location and are shipped by a freight carrier to customers. All business activity is conducted within the City. Once a year an employee will call on a customer outside the City only for the purpose of seeing how the merchandise is displayed. No orders are taken. This activity is de minimus and does not create business activity outside the City and, therefore, no apportionment is allowed.
 
Example 2: Comfy Coats Company manufactures and warehouses all its manufactured goods outside the County. Employees take orders by phone and mail from the location outside the County. All orders are filled from that location and are shipped by a freight carrier to customers around the country, including Portland. All business activity is conducted outside the County. Once a year an employee will call on a Portland customer for the purpose of seeing how the merchandise is displayed. No orders are taken. This activity is de minimus and does not create business activity in the County. Comfy Coats Company does not file a business income tax return with the County.

 
REFERENCES
 
Portland City Code Section 7.02.610 A.
 
Multnomah County Code Section 12.610 A.
 

 
HISTORY
Submitted for inclusion in PPD September 17, 2002.
Originally adopted as Bureau of Licenses Administrative Rule 610.93-3 November 23, 1993, amended as 610.93-3A December 26, 2000.