suggest answering the question as asked:
Report the part of the following income that you received while you were an Oregon resident or that you've earned from Oregon source
Were you a resident of Oregon when you actually received the payment?
Type the information on the Form 1099 EXACTLY as it was presented to you
it could turn out that while the withholdings went to Arizona it could result in significant taxes owed to Oregon but a significant refund from Arizona.
suggestion / advise: don't confuse "taxes owed" and "withholdings" - they are horses of a different color 🙂
