ORS 317A.122: Exclusion for subcontracting payments.

An exclusion from taxable commercial activity shall be allowed for subcontracting payments for labor costs that are made by a general contractor, as defined in ORS 701.005, to a subcontractor, as defined in ORS 701.410, pursuant to a contract for residential real estate construction. The exclusion under this section:

      (1) Shall be allowed only for single-family residential construction located in Oregon;

      (2) Is not allowed for payment for materials, land or permits;

      (3) Is not allowed for payments between subcontractors; and

      (4) Shall be 15 percent of payments for labor by the general contractor.