Category: Oregon Tax Court Opinions

DEPARTMENT OF REVENUE, State of Oregon v. UNIVERSAL FOODS CORPORATION DEPARTMENT OF REVENUE, State of Oregon v. UNIVERSAL FROZEN FOODS CO. TC 2944 TC 2945In the Oregon Tax Court. June 10, 1992. Statutory construction — Administrative regulations 1. While ORS 305.190 contemplates the issuance of rules, it does not require them before the plaintiff may […]

ARCHIE HARRIS v. STATE TAX COMMISSION In the Oregon Tax Court. November 28, 1967. Personal property tax — Taxpayer aggrieved — Actual knowledge 1. Taxpayer’s receipt of his tax statement and information from the assessor that they couldn’t find his affidavit for assessment cancellation does not constitute actual knowledge of an act or omission by […]

RAYMOND J. MARTIN and DOLORES J. MARTIN v. DEPARTMENT OF REVENUE In the Oregon Tax Court. June 20, 1979. Taxation — Levy and assessment — Real property — Matters considered and methods of valuation 1. In determining market value, the relative efficacy of the three typical approaches to value, i.e., market data, income and cost, […]

IONE B. JONES, Individually, and IONE B. JONES and GRANT R. JONES, Personal Representatives of the Estate of VICTOR N. JONES, Deceased v. DEPARTMENT OF REVENUE In the Oregon Tax Court. December 20, 1974. Statutory construction — Administrative regulations and rulings 1. The regulations and rulings of an administrative agency are highly persuasive as to […]

TAFT CHURCH OF EVANGELICAL CHURCH OF NORTH AMERICA v. DEPARTMENT OF REVENUE TC 3997In the Oregon Tax Court. January 28, 1997 Property taxation — Tax roll — Addition of property — Notice 1. Statutes requiring the giving of notice to a taxpayer when property is added to the tax rolls only apply if the property […]

FINN et al v. DEPARTMENT OF REVENUE TC 2545In the Oregon Tax Court. March 11, 1987 Income tax — Deductions and exemptions — Trade or business 1. In order for travel expenses to be deductible they must (1) be incurred in connection with a trade or business, (2) while away from home, and (3) must […]

REYNOLDS METALS CO. v. STATE TAX COMMISSION In the Oregon Tax Court. January 18, 1966. Statutes of limitation — Notice of tax deficiencies — History — Prior to 1957 1. Prior to 1957 ORS 317.410(3), now ORS 314.410(4), imposed no time limit as to when the commission was required to mail the assessment of deficiency […]

WILLIAM C. MAYES v. COMMISSION In the Oregon Tax Court. August 19, 1968. Trial had July 30, 1968, in Curry County, Oregon. Sidney A. Milligan represented plaintiffs. Carl N. Byers, Assistant Attorney General, represented defendant. Decision for defendant rendered August 19, 1968. EDWARD H. HOWELL, Judge. The tax commission issued deficiency assessments against plaintiffs on […]

CITY OF EUGENE and Eugene Urban Renewal Agency v. DEPARTMENT OF REVENUE TC 3536In the Oregon Tax Court. July 13, 1994. Taxation — Authority of Department of Revenue 1. ORS 306.115(1) authorizes the Department of Revenue to do any act or give any order to any public officer or employee that the department deems necessary […]

FIELDS et al v. DEPARTMENT OF REVENUE TC 2552In the Oregon Tax Court. August 24, 1987. Taxation — Income taxes — Refund of taxes 1. Before amendment by 1987 Or. Laws, ORS 314.415(1)(a) required the department to pay interest on refunds “beginning four months after the due date of the return or the date the […]

AMERICAN REFRIGERATOR TRANSIT CO. v. STATE TAX COMMISSION In the Oregon Tax Court. September 26, 1963. Statutes — Construction — Legislative intent — Oregon Corporation Income Tax Act of 1955 1. This statute was enacted to fill the gap left by the 1951 case of Spector Motor Service, Inc. v. O’Connor, U.S. 602, 71 S […]

William B. GORDON, Jr. v. DEPARTMENT OF REVENUE TC 3193In the Oregon Tax Court. September 29, 1992. Property taxation — Taxpayer responsibilities 1. In the property tax system, the taxpayer audits the records and verifies that the assessment information is correct. Property taxation — Taxpayer responsibilities 2. When a taxpayer has reasonable notice that the […]

NORTHWEST NATURAL GAS COMPANY, Plaintiff, v. DEPARTMENT OF REVENUE, Defendant. No. TC 4751.In the Oregon Tax Court. Decision for Plaintiff rendered July 10, 2008. Defendant Department of Revenue (the department) filed a Motion for Reconsideration based on the Tax Court’s Order of November 19, 2007. The department raised several points that were addressed individually by […]

LINCOLN COUNTY, a political subdivision of the State of Oregon, and Ed Todd, Lincoln County Assessor v. DEPARTMENT OF REVENUE Harold GREGORY and Patricia Gregory, Intervenors TC 3312In the Oregon Tax Court. December 2, 1993. Property taxation — Description of property 1. ORS 308.240(1) requires the description of property to be made in such a […]

MULTNOMAH COUNTY, a home rule subdivision of the State of Oregon, by and through its Tax Collector, Janice Druian, and its Tax Assessor, Robert Ellis v. DEPARTMENT OF REVENUE and CORNERSTONE-COLUMBIA DEVELOPMENT COMPANY, Olympia York Properties (Portland) Company, and Pioneer Place Limited Partnership/Portland Development Commission, Intervenors TC 3626In the Oregon Tax Court. February 16, 1995. […]

ALIEN ENTERPRISES, INC., dba Time Out Amusements; Amusement Unlimited, Inc.; Amusement Unlimited of Southern Oregon, Inc.; Asterick’s Inc.; Beaver Amusement, Inc.; Coin Enterprises, Inc.; Great Western, Inc.; Gary L. Kilgore, dba Northwest Entertainment; Oregon Games and Vending, Inc.; Salem Amusement, Inc.; and Harvey J. Beeney, dba Tinker Enterprises v. DEPARTMENT OF REVENUE TC 3155In the […]

OREGON OYSTER COMPANY v. DEPARTMENT OF REVENUE In the Oregon Tax Court. January 5, 1978. Taxation — Liability of persons and property — Exemptions — General rules of construction 1. Even though there is infinite variety in the statutes relieving different kinds of personal property from taxation in whole or in part, the policy of […]

LLEWELLYN F. AND BETTY RENVILLE v. DEPARTMENT OF REVENUE In the Oregon Tax Court. March 20, 1973. Income tax — Federal tax deduction on state return 1. ORS 316.072 (1) is a specific exception to the policy set out in ORS 316.007 and 316.012, and specifically provides the procedure for treating a deduction which is […]

VALLEY RIVER CENTER, an Oregon general partnership, the sole and only members of which are W. H. SHIELDS, H. A. ANDERSEN, JOSEPH FOUGHT, EUGENE H. SILKE and ALLAN PENNEY; K. C. PROPERTIES, an Oregon general partnership, the sole and only members of which are CARLTON WOODARD, JOY WOODARD, KIM C. WOODARD, KRISTEN A. WOODARD and […]

E. Daniel and Joanne SEYMOUR v. DEPARTMENT OF REVENUE TC 2928In the Oregon Tax Court. July 16, 1990. Taxation — Tax liability — Net income 1. The Personal Income Tax Act of 1969 (Or Laws 1969, ch 493) made federal taxable income the measure of Oregon taxable income. Taxation — Inheritance and gift taxes — […]

AGRIPAC, INC. v. DEPARTMENT OF REVENUE TC 2740In the Oregon Tax Court. June 1, 1990. Taxation — Valuation — Matter considered 1. When an approach to valuation results in an unreasonable conclusion in view of economic realities, the approach will be given no weight. Taxation — Valuation — Market value; comparable sales 2. When large […]

JOSEPH T. HART AND MARY R. HART v. DEPARTMENT OF REVENUE In the Oregon Tax Court. July 25, 1969. Farm use assessment — Income requirement 1. Plaintiffs’ land was not entitled to special farm use assessment where the land had not produced a gross income of $500 in three of the last five years. Farm […]

Robert J. SAYLES v. DEPARTMENT OF REVENUE TC 3631In the Oregon Tax Court. July 14, 1995. Corporate withholding taxes — Employer liability 1. ORS 316.167 imposes an obligation upon every employer to withhold income taxes from wages and salaries paid to employees. Corporate withholding taxes — Personal liability 2. Recognizing that corporations must act through […]

YUNKER v. STATE TAX COMMISSION WIECKS v. STATE TAX COMMISSION In the Oregon Tax Court. June 28, 1965. Capital gains and losses — Adjustment to basis — Depreciation allowed 1. The basis of the property on a sale will be adjusted by the amount actually allowed for depreciation on returns to the state of Oregon. […]

CHARLES S. GAUGER, P.C. v. DEPARTMENT OF REVENUE and MULTNOMAH COUNTY, Intervenor TC 3578In the Oregon Tax Court. April 27, 1995. Multnomah County Business Income Tax — Net income 1. MCBIT’s express intent is to tax the business organization rather than the shareholders. MCBIT requires the tax on subchapter S corporations to be imposed on […]

NATIONAL MANUFACTURING, INC. v. DEPARTMENT OF REVENUE TC 2983In the Oregon Tax Court. April 16, 1991. Taxation — Levy and assessment — Assessment rolls —Amendment or alteration 1. Under certain conditions the Department of Revenue is authorized to correct the tax roll for the current assessment year and the two preceding years. ORS 306.115(3). Taxation […]

DAVIS v. STATE TAX COMMISSION In the Oregon Tax Court. August 4, 1966. Gross income — Recovery exclusion — Regulation — Double deduction 1. Reg. 316.110(5)-(A) refers to “income received and includible in gross income under the recovery exclusion provision”; the income involved cannot be both includible and excluded; the defendant can not rely on […]

Walter PELETT and City Liquidators, Inc. v. DEPARTMENT OF REVENUE TC 2839In the Oregon Tax Court. May 11, 1990. Income taxes — Payment and enforcement — Penalties 1. ORS 314.400 is mandatory and requires penalties if returns are filed late. Income taxes — Assessment, payment and enforcement —Administrative review 2. Defendant has discretionary authority to […]

Jan T. and Marsha M. BAISCH, Robert and Mary Borghorst, Michael T.H. and Ruth M. Brodeur, Remy W. and Barbara F. Fulsher, Richard F. and Mary J. Goos, Ronald W. and Jean A. Harriman, Janice O. Hayslip, Scott S. and Mary L. Hinsdale, Jonathan H. and Karen C. Hoppert, Wayne C. Kaesche, Thomas A. and […]

Joseph GALL and Darlene Gall, Plaintiffs, v. DEPARTMENT OF REVENUE, Defendant, and YAMHILL COUNTY ASSESSOR, Intervenor-Defendant. TC 4639.In the Oregon Tax Court. Regular Division. Decision for Defendant rendered November 17, 2003. Plaintiffs argued that under Article XI, section 11, of the Oregon Constitution (Measure 50) when there is a reduction in the real market value […]

PENN PHILLIPS LANDS, INC. v. COMMISSION In the Oregon Tax Court. March 21, 1969. Valuation — Uniformity 1. Where the assessor’s method of applying a valuation schedule discriminates against a taxpayer it can result in a lack of uniform valuation. Valuation — Uniformity 2. If the assessor is going to use a valuation schedule in […]

PAUL B. COLE AND NORMA F. COLE; JACOB KAINEN AND RUTH COLE KAINEN; ELIZABETH C. BUTLER; SPENCER R. COLLINS; R. T. WATTS AND MARTHA B. WATTS; ANNA W. ROSBOROUGH; MARY B. LINDSEY; WILLIAM H. LINDSEY, JR. AND JANE C. LINDSEY; JAMES BARLOW AND ELIZABETH ANN BARLOW; WILLIAM P. WATTS AND ELENOR WATTS; LOUIS SALMON AND […]

SEVEN-UP BOTTLING CO. OF SALEM, INC. v. DEPARTMENT OF REVENUE TC 2398In the Oregon Tax Court. March 13, 1987. Taxation — Real property in general 1. “Real property” includes “machinery, equipment or fixtures erected upon, under, above or affixed to the same.” (ORS 307.010(1)). Taxation — Personal property in general 2. “Personal property” includes “all […]

Carlton H. PERRY v. DEPARTMENT OF REVENUE TC 4238.In the Oregon Tax Court. November 3, 1998 INCOME TAXATION — BUSINESS EXPENSE — DEDUCTION 1. The Internal Revenue Code provides some basic rules governing deductible expenses. In this context, the code allows deductions for expenses incurred in a trade or business or expenses incurred for the […]

Maud G. KROM v. DEPARTMENT OF REVENUE TC 3808In the Oregon Tax Court. November 6, 1995. Property taxation — Valuation 1. The department’s sales comparison approach failed to adequately account for the quality and condition of the property because its derived value from the sales comparison approach was the same as the derived value from […]

MANTON A. AND FRANCES I. CARL v. DEPARTMENT OF REVENUE In the Oregon Tax Court. March 10, 1976. Taxation — Valuation — Timber and timberlands 1. Immediate harvest value of timber can be determined best by comparable sales of like stumpage or by the log return-conversion method. Evidence — Value of real property — Testimony […]

MENDELSON v. DEPARTMENT OF REVENUE TC 1439In the Oregon Tax Court. March 24, 1981. Contracts — Performance or breach — Performance of conditions 1. Performance of condition precedent is essential before parties become bound by an agreement. Contracts — Tender of performance — Necessity 2. A contract which rests upon a condition precedent cannot be […]

PERKINS AND WILEY an Oregon Partnership v. DEPARTMENT OF REVENUE TC 3714In the Oregon Tax Court. December 15, 1995. Property taxation — Supervisory appeals — Good and sufficientcause 1. The department’s administrative rule defining good and sufficient cause under ORS 306.115(3)(a) is not too narrowly drawn because it contains open-ended language that is not restrictive. […]

MEDICAL BUILDING LAND COMPANY AND GOOD SAMARITAN MEDICAL BUILDING v. DEPARTMENT OF REVENUE In the Oregon Tax Court. April 29, 1977. Taxation — Valuation — Cost approach 1. For a unique commercial property, where economic data are not available to the assessor through other local sources, the cost approach to value must be relied upon […]

Daniel M. WARREN and Pamela C. Warren v. DEPARTMENT OF REVENUE TC 3326In the Oregon Tax Court. November 18, 1993. 1. Income taxation — Severance pay By the terms of the agreement, taxpayer did not receive severance pay because the agreement provided for him to continue as an employee, and set his resignation date for […]

Kurt E. FREITAG and Rita H. Schaefer, Plaintiffs, v. DEPARTMENT OF REVENUE, Defendant, and LINCOLN COUNTY ASSESSOR, Intervenor. No. TC 4764.In the Oregon Tax Court. Decision for Intervenor rendered July 3, 2007. Plaintiffs (taxpayers) object to Intervener’s (the county’s) ORS 20.105 claim for attorney fees. Taxpayers assert that the county is not entitled to an […]

Robert SELLS and Clarana Sells v. DEPARTMENT OF REVENUE TC 3600In the Oregon Tax Court. November 7, 1994. Property taxation-Highest and best use 1. Highest and best use is the reasonably, probable and legal use of property which is physically possible, appropriately supported, financially feasible, and that results in the highest value. Property taxation-Highest and […]

DESCHUTES COUNTY ASSESSOR, Plaintiff, and DEPARTMENT OF REVENUE, Intervenor-Plaintiff, v. BROKEN TOP CLUB, LLC, Defendant. TC 4391In the Oregon Tax Court. October 16, 2000 Plaintiff appeals from a magistrate Decision that reduced the assessed value of Defendant’s golf course. Defendant’s appraisers valued the golf course as if encumbered by golf memberships. However, Plaintiff argued that […]

Byron SIDERAS and Nancy Sideras v. DEPARTMENT OF REVENUE and MULTNOMAH COUNTY, Intervenor TC 3630In the Oregon Tax Court. April 18, 1995. Tax Court procedure — Burden of proof 1. In the Tax Court, the burden of proof falls on the parties seeking affirmative relief. Plaintiffs failed to meet their burden of proof because they […]

DEPARTMENT OF REVENUE, State of Oregon, Plaintiff, v. JOSEPH W. JAY RAKOCY, Defendant. TC 4504In the Oregon Tax Court. Filed OCTOBER 4, 2001 Plaintiff requested reconsideration of the Tax Court’s award of attorney fees to Defendant. The court considered the scope of its discretion under ORS 305.490 (3)(a) and concluded that Defendant should not have […]

J. ALLAN and MARY KATHERINE HENDERSON v. DEPARTMENT OF REVENUE In the Oregon Tax Court. December 22, 1972. Gross income — Alimony v. child support 1. For payments between divorced spouses to be considered child support, rather than alimony, the divorce agreement must specifically designate the amount allocable to the support of the children. If […]

NICHOLS v. STATE TAX COMMISSION In the Oregon Tax Court. January 25, 1965. Capital gains and losses — Reinvestment — Special treatment 1. An investment in a personal residence is an investment in real property that qualifies and is entitled to the special capital gains treatment. Before the court on decisive demurrer. Thomas J. Lekas, […]

HAROLD GLEN AND ALBERTA Z. BROWN v. STATE TAX COMMISSION In the Oregon Tax Court. November 30, 1967. Gross income — Exemption — Minister’s dwelling 1. ORS 316.110(6) provides that gross income does not include the rental value of a dwelling house and appurtenances thereof furnished to a minister of the gospel as part of […]

SWAN LAKE MOULDING COMPANY v. DEPARTMENT OF REVENUE In the Oregon Tax Court. December 18, 1969. True cash value — Comparable sales — Commercial land 1. Proper method for determining true cash value of plaintiff’s commercial land was by comparable sales. Trial had October 22, 1969, in Klamath County Courthouse, Klamath Falls, Oregon. Ernest F. […]

Scott C. DENNEY v. DEPARTMENT OF REVENUE TC 3985In the Oregon Tax Court. January 13, 1997 Assessment — Notice 1. Mailing of notice to the person at the person’s last- known address shall constitute the giving of notice. ORS 305.265 (11). Tax Court procedure — Burden of proof 2. When claiming the department failed to […]

MULTNOMAH COUNTY, a home rule subdivision of the State of Oregon, by and through its Tax Collector, Janice Druian, and its Tax Assessor Robert Ellis v. DEPARTMENT OF REVENUE (Uptown Heights Associates) and SEATTLE-FIRST NATIONAL BANK, a national banking association, Intervenor TC 3571In the Oregon Tax Court. September 2, 1994. Property taxation — Exemption — […]

GEORGE TOLLEFSON, Administrator of the Estate of HILDA TOLLEFSON, deceased, v. DEPARTMENT OF REVENUE In the Oregon Tax Court. January 18, 1979. Taxation — Inheritance taxes — Valuation — In general 1. The value of property for inheritance tax purposes is its true cash value as of the date of the decedent’s death. ORS 118.150(1) […]

FRIENDLY CHEVROLET v. STATE TAX COMMISSION In the Oregon Tax Court. July 8, 1968. Quasi estoppel — Exemptions 1. Doctrine of quasi estoppel does not apply where evidence shows that plaintiff did not rely upon and was not misled by acts or conduct of assessor. Quasi estoppel 2. Doctrine of quasi estoppel should be rarely […]

AVISON LUMBER CO. v. DEPARTMENT OF REVENUE In the Oregon Tax Court. May 25, 1972. Trial had February 3 and 4, 1972, in Clackamas County Courthouse, Oregon City; continued on February 8 and 9, 1972, in Oregon Tax Court courtroom, Salem. Jerome S. Bischoff, Dusenberry, Martin, Bischoff Templeton, Portland, represented plaintiff. Glen V. Sorensen, Assistant […]

Edgar T. NUMRICH, Plaintiff, v. DEPARTMENT OF REVENUE, Defendant. TC 4640.In the Oregon Tax Court. Regular Division. Decision for Defendant rendered June 17, 2004. Plaintiff appealed notices of deficiency and assessment issued by Defendant Department of Revenue (the department) and related collection actions. Plaintiff also asserted the department’s actions had been tortious. After originally asserting […]

Jim GANGLE, Lane County Assessor v. DEPARTMENT OF REVENUE and EVERGREEN UNION RETIREMENT ASSOCIATION, INC., Intervenor TC 3384In the Oregon Tax Court. January 21, 1994. Property taxation — Real market value 1. Accounting depreciation is not related to real market value. The statute directs assessors to consider depreciation, thus the deduction of accounting depreciation is […]

URBAN OFFICE AND PARKING FACILITIES v. DEPARTMENT OF REVENUE In the Oregon Tax Court. September 22, 1971. Real property — Special assessment — Commercial facilities under construction 1. The language of ORS 307.340 requires the taxpayer to file documentary proof with the assessor to receive the claim for exemption under ORS 307.330. Trial had May […]

PACIFIC POWER LIGHT COMPANY v. DEPARTMENT OF REVENUE In the Oregon Tax Court. October 10, 1977. Taxation — Levy and assessment — Valuation — Particular real property 1. The value of a public utility’s “electric service property” is affected by public utility regulation. Taxation — Levy and assessment — Valuation — Matters considered and methods […]