Final answer:
Interest income from the sale of real property located in Oregon is taxable to Oregon, even if the individual receiving the income is not a resident of Oregon.
Step-by-step explanation:
The statement that interest income received by a non-resident of Oregon from a contract of sale of real property located in Oregon is taxable to Oregon is True. Generally, states impose taxes on income generated from sources within their borders, and this includes income from the sale of real estate. If an individual, resident or non-resident, sells property located in Oregon and finances the sale (i.e., holds a note), the interest income derived from that financing is considered Oregon-source income and is subject to Oregon state taxes.
For example, if you are a resident of another state but sell a piece of property located in Oregon and agree to receive payments over time with interest, the interest payments received would typically be subject to Oregon income tax. Each state has its own rules, but income from the sale of property is often taxed in the state where the property is located, regardless of the owner's residence.