Category: Oregon Tax Court Opinions

COMINCO PRODUCTS, INC. v. STATE TAX COMMISSION In the Oregon Tax Court. May 27, 1965. Constitutional law — Imported goods — Original package doctrine 1. Imported goods are not subject to state taxation until the articles are either sold, removed from the original package, or put to the use for which they were imported. Constitutional […]

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 […]

STIMSON LUMBER CO. v. COMMISSION In the Oregon Tax Court. January 31, 1969. Western Oregon ad valorem tax — Basis for additional tax 1. The timber harvested is the basis for the additional tax computed and imposed under ORS 321.645, 321.650 and 321.655, however, the additional tax after harvest refers back and is based upon […]

STUART V. HINSON v. DEPARTMENT OF REVENUE In the Oregon Tax Court. March 31, 1978. Taxation — Levy and assessment — Review, correction or setting aside of assessment — Time for filing 1. Since the plaintiff had actual knowledge of the act of the assessor, he was required to appeal within six months of such […]

KENNETH J. BYLUND v. DEPARTMENT OF REVENUE Intervenors: GERALD and MARGUERITE SAUNDERS In the Oregon Tax Court. November 30, 1978. Taxation — Levy and assessment — Review by courts —Valuation 1. The tax court is not confined in its decision to the values pled by the parties; rather, it is the court’s duty to determine […]

Douglas C. STRAIN v. DEPARTMENT OF REVENUE TC 2728In the Oregon Tax Court. December 13, 1988. Taxation — Gift taxes — Statutory provisions 1. In order to receive tax benefits of “gift-splitting,” an election must be made by April 15 following the calendar year in which the gift is made. (ORS 119.022.) Taxation — Gift […]

J. R. WIDMER, INC., an Oregon Corporation, and WALTER J. WIDMER v. DEPARTMENT OF REVENUE In the Oregon Tax Court. April 13, 1971. Definitions — “Market price” 1. Market price is best defined as the actual dollar price put on a property at time of a transaction. Definitions — “Market value” 2. Market value is […]

MAYTAG CORPORATION, a Delaware corporation v. DEPARTMENT OF REVENUE TC 3261In the Oregon Tax Court. August 26, 1993. Legislative intent — Jurisdiction to tax 1. The legislature intended to assert jurisdiction to tax to the full extent allowed by due process. Income taxation — Unitary business 2. If a subsidiary corporation is an integrated part […]

ROBERT E. TAYLOR v. DEPARTMENT OF REVENUE In the Oregon Tax Court. July 30, 1976. Taxation — Farm use assessment — Current use 1. Special “farm use” assessment for a portion of real property denied because area in question, although within boundaries of qualified farm operation, was not used for agricultural purposes. Taxation — Farm […]

VANDEVERT v. DEPARTMENT OF REVENUE TC 1596In the Oregon Tax Court. April 28, 1982. Executors and Administrators — Distribution of estate —Decree as conclusive 1. For the purpose of apportionment of property interests among the heirs and beneficiaries, a court’s decree is the conclusive determination of each person’s interest in an estate. ORS 116.113(4). Any […]

HANS CARL SHERRER, Plaintiff, v. DEPARTMENT OF REVENUE, State of Oregon, Defendant. TC 4439In the Oregon Tax Court. May 30, 2000 Plaintiff sought a declaratory ruling that would bar Defendant from seeking suspension of Plaintiff’s plumbing license for failure to pay income tax obligations. The court held that because Plaintiff failed to file an income […]

Mike COMEAUX, Roy Miller, Philip Busekist, Ramon L. Johnson, Dori L. Kite, Rick Arnold, James D. Knight, Sam Quitiquit, Sandy Quitiquit, Sandra Buhrmaster Jelinski, John A. Jelinski, C. H. Perrot, Margaret Perrot and James Plog v. WATER WONDERLAND IMPROVEMENT DISTRICT TC 3144In the Oregon Tax Court. January 17, 1992. Statutory construction — Unit of government […]

FREIGHTLINER CORPORATION v. DEPARTMENT OF REVENUE In the Oregon Tax Court. November 5, 1969. Free port law — Purpose 1. The purpose of the Oregon free port statute is to promote Oregon as a storage and distribution center. Free port law — Storage and distribution center 2. Plaintiff’s process of starting with frame rails and […]

THE GARTEN FOUNDATION, an Oregon not for profit corporation v. DEPARTMENT OF REVENUE TC 3417In the Oregon Tax Court. December 2, 1993. Property taxation — Exemption 1. ORS 307.130 exempts only property which is owned or being purchased by an organization. For purposes of that statute, it is irrelevant whether the property has been incorporated […]

SHELTON et al v. DEPARTMENT OF REVENUE TC 2187In the Oregon Tax Court. January 18, 1985. Income taxes — Deductions — Trade or business 1. In order for plaintiff’s expenses to be deductible they must be trade or business expenses incurred as part of that trade or business. Income taxes — Deductions — Ordinary and […]

NEIL VENTURACCI and MARY VENTURACCI, husband and wife v. DEPARTMENT OF REVENUE In the Oregon Tax Court. September 15, 1975. Statutory construction — ORS 305.090 and 306.111 (see Balderee v. Commission, 2 OTR 142 (1965)) — Department of Revenue — Supervisory powers — Property 1. ORS 305.090 and 306.111 provide broad supervisory powers to equalize […]

CHARLES A. ROGERS and H. M. ROGERS; C. A. REINHARDT and MARY REINHARDT; JOHN O. REINHARDT and LUCILLE I. REINHARDT; and GARY R. HOLMSTROM and SUSAN T. HOLMSTROM v. DEPARTMENT OF REVENUE In the Oregon Tax Court. June 27, 1975. Statutory interpretation — ORS 321.619 1. There is a continuing requirement upon the county assessor […]

Victor M. MASSE, Plaintiffs, v. DEPARTMENT OF REVENUE, Defendant. No. TC 4673.In the Oregon Tax Court. Decision for Defendant rendered December 22, 2004. Trial on remaining issues was held February 1, 2005. See Masse II v. Dept. of Rev., 18 OTR 240 (2005). Plaintiff (taxpayer) filed a third amended complaint in which he made three […]

DANIEL W. AND LEETA CREARY v. STATE TAX COMMISSION In the Oregon Tax Court. January 5, 1968. Capital gains — Losses offset 1. ORS 316.438 clearly means that all of the taxpayers’ losses recognized, whether capital losses or not, includes business or noncapital losses. Statutory construction 2. When an Oregon statute is clear and specific […]

AERO AIR, INC. v. DEPARTMENT OF REVENUE In the Oregon Tax Court. December 5, 1980. Taxation — Exemptions — Grant of exemptions 1. Plaintiff must prove that its improvement qualifies as a manufacturing facility in order to claim a tax exemption under ORS 307.330. Statutes — Construction and operation — Intention of legislature 2. Seeking […]

STATE ex rel NORTHWEST MEDICAL LABORATORIES, INC. v. WILCOX TC 2234In the Oregon Tax Court. December 11, 1985. Taxation — Mode of assessment — Omissions and defects 1. Upon receipt of “credible” information that a taxable property has been omitted from the tax rolls, an assessor shall give notice to the owner of intent to […]

EUSTON v. DEPARTMENT OF REVENUE TC 2337In the Oregon Tax Court. December 17, 1985. Taxation — Inheritance and Gift Taxes — Statutory provisions 1. The executor of an estate shall appraise the property of the estate at its true cash value as of the death of the decedent. (ORS 118.150) Administrative law — Rules and […]

ROMAN CATHOLIC ARCHDIOCESE OF THE ARCHBISHOP OF PORTLAND IN OREGON (fka Archdiocese of Portland) v. DEPARTMENT OF REVENUE TC 3561In the Oregon Tax Court. January 18, 1995. Property taxation — Exemptions — Property used for religiouspurposes 1. The relevant question in evaluating religious exemptions of living quarters is whether it is reasonably necessary for the […]

Hubert C. and Carole J. STOKES v. DEPARTMENT OF REVENUE TC 2679In the Oregon Tax Court. July 22, 1988. Taxation — Income taxes — Provisions for assessment andcollection 1. ORS 305.265(11) provides: “Mailing of notice [of a deficiency] to the person at the person’s last-known address shall constitute the giving of notice as prescribed in […]

THE ESTATE OF ETHEL LEONA McGEE v. DEPARTMENT OF REVENUE In the Oregon Tax Court. December 16, 1977. Wills — Construction — General rules — Intention of testator 1. Courts have always sought to carry out the testator’s intent, if lawful. Wills — Construction — Vested or contingent interests — Construction in favor of vesting […]

CHARLES D. AND MILDRED P. BRONSON v. DEPARTMENT OF REVENUE In the Oregon Tax Court. June 19, 1972. Personal income tax — Statute of limitations 1. ORS 314.410(3) extends the statute of limitations where there has been a federal correction of the taxpayer’s returns and the taxpayers have failed to file any report thereof or […]

SPOKANE, PORTLAND SEATTLE RAILWAY CO. v. STATE TAX COMMISSION In the Oregon Tax Court. June 13, 1966. Public utilities — Net income — Determination 1. Generally, the plaintiff’s income and deductions for Oregon excise tax are based on its federal return. State Tax Commission Reg. 7.074(2). Public utilities — Income and deductions — Federal law […]

HOPE VILLAGE, INC., Plaintiff, v. DEPARTMENT OF REVENUE, Defendant. TC 4602.In the Oregon Tax Court. Regular Division. Preliminary Ruling rendered May 28, 2004. Both parties requested preliminary rulings on the construction of ORS 308.490 to assist them in preparing for trial on the property value of nonprofit housing for the elderly. The court first found […]

Gordon and Joan BARRON v. DEPARTMENT OF REVENUE TC 2882In the Oregon Tax Court. October 20, 1989. Income taxes — Construction and operation of statutes 1. The Department of Revenue is prohibited from disclosing confidential tax information. (ORS 314.835.) Income taxes — Construction and operation of statutes 2. Department of Revenue employees are subject to […]

R. M. HARTSOCK v. COMMISSION In the Oregon Tax Court. May 22, 1969. Farm use — Regulations — Consistent with statute 1. Regulations defining farm use promulgated under ORS 308.380 must be consistent with the general definition of farm use in ORS 215.203(2). Farm use — Effect of gross income 2. If land produces gross […]

KATHLEEN L. EBY, Plaintiff, v. DEPARTMENT OF REVENUE, Defendant. TC 4423In the Oregon Tax Court. October 18, 2000 Pursuant to ORS 215.236, Defendant disqualified Plaintiff’s property from special farm-use assessment. Plaintiff appealed. The court held that because necessary prerequisite events had not yet occurred, the assessor did not have the power to disqualify Plaintiff’s property […]

BURLINGTON NORTHERN, INC., OREGON TRUNK RAILWAY, and OREGON ELECTRIC RAILWAY COMPANY v. DEPARTMENT OF REVENUE In the Oregon Tax Court. February 14, 1979 Taxation — Levy and assessment — Authority to make assessment — Railroads 1. It is the duty of the Department of Revenue to make an annual assessment of railroad operating property within […]

TEKTRONIX, INC. v. DEPARTMENT OF REVENUE TC 2682In the Oregon Tax Court. December 16, 1988. Taxation — Deductions and exemptions 1. ORS 317.265(1)(b) provides that taxes paid a foreign country upon dividends, interest and royalties from sources within that foreign country are deductible in computing net income. Taxation — Accounting — Allocation to state 2. […]

WHITE CITY, OREGON, WATER SYSTEM, INC. v. DEPARTMENT OF REVENUE In the Oregon Tax Court. November 23, 1977. Taxation — Liability of persons and property — Exemptions — Public property in general 1. Although the language of ORS 307.090(1) best equates with a title in fee simple, some support exists for the proposition that property […]

Leroy and Delores MOSER v. DEPARTMENT OF REVENUE TC 3028In the Oregon Tax Court. March 8, 1991. Income taxes — Regulations — Deductions 1. A theft loss is expressly limited to the lesser of fair market value or basis. IRC § 165. Income taxes — Regulations — Deductions 2. The amount deductible from a theft […]

Charles T. BOARDMAN v. DEPARTMENT OF REVENUE TC 3040In the Oregon Tax Court. June 7, 1991. Notice — Statutory requirements — Statute of limitations 1. The notice requirements of ORS 305.265(10) are technical and must be precisely met to start the statute of limitations running. Notice — Last-known address 2. Written notice sent to taxpayer […]

ROBERT E. and MARCINE HILYARD v. DEPARTMENT OF REVENUE In the Oregon Tax Court. October 25, 1974. Statutory construction — Int Rev Code, § 162 — Home 1. Where a taxpayer maintains a residence and works in a distant area, his “home” is his residence if the work is temporary and, therefore, a reasonable man […]

H. Bahari KASHANI v. DEPARTMENT OF REVENUE POLK COUNTY ASSESSOR, Intervenor TC 3105In the Oregon Tax Court. January 29, 1992. Property taxation — Valuation — Appeal 1. Where the value of property cannot be changed for five years except for the reasons specified in ORS 309.115(2), the court will disregard any evidence of value as […]

MULTNOMAH KENNEL CLUB v. DEPARTMENT OF REVENUE TC 1467In the Oregon Tax Court. July 8, 1982. Counties — Governmental powers 1. A municipality is entitled to exercise only those powers expressly granted, those necessarily or fairly implied or incidental to the powers expressly granted, or those necessary to the accomplishment of the declared objective and […]

CHRISTIAN PRE-SCHOOL AND STONE CHURCH, INC. v. DEPARTMENT OF REVENUE In the Oregon Tax Court. February 10, 1972. Exemptions — Schools of religious organizations — Definition of “educational purposes” 1. Once the “educational purposes” of ORS 307.145 are proved under the ownership and direction of an incorporated religious organization, the plain language of the statute […]

FREIGHTLINER CORPORATION v. DEPARTMENT OF REVENUE In the Oregon Tax Court. May 15, 1975. Statutory interpretation — ORS 311.207 — “Shall” 1. The use of the word “shall” in ORS 311.207 requires the mandatory assessment of all classes of omitted property within the scope of the statute. Department of Revenue — Assessment duties 2. Under […]

BRIGGS v. STATE TAX COMMISSION In the Oregon Tax Court. June 17, 1965. Withholding — Employer — Duty to perform 1. The mere fact of being president of a corporation is not sufficient to charge one with personal liability for employees’ withholding taxes, where the evidence established active control in a third party. Trial had […]

Joseph GALL and Darlene Gall, Plaintiffs, v. DEPARTMENT OF REVENUE, Defendant. No. TC 4725.In the Oregon Tax Court. Decision for Defendant rendered June 16, 2005. Plaintiffs (taxpayers) filed a Complaint requesting a writ of mandamus in the Regular Division of the Oregon Tax Court. Taxpayers appealed a decision of the Board of Property Tax Appeals […]

Allen FOREMAN and Teresa Foreman, Plaintiffs, v. DEPARTMENT OF REVENUE, Defendant. No. TC-MD 040844D.In the Oregon Tax Court. Decision for Defendant rendered May 16, 2005. Plaintiffs appeal personal income tax assessments for 2001 and 2002, claiming exemption from Oregon taxation under OES 316.777, which exempts from Oregon taxation income derived from sources within the boundaries […]

Clarence M. Bishop, Jr. and Mabel L. BISHOP v. DEPARTMENT OF REVENUE TC 3870In the Oregon Tax Court. July 22, 1996 Income taxation — S corporations — Qualifying shareholders 1. Under federal law, a QSST is a qualifying shareholder of an S corporation. IRC § 1361. Income taxation — S corporations — QSST beneficiaries 2. […]

Glen D. MARK v. DEPARTMENT OF REVENUE TC 3255In the Oregon Tax Court. January 28, 1993. Property taxation 1. Because taxes on real property are assessed against the property, not against the owner, it does not matter who owns the property. If the land is disqualified, the additional taxes are a lien upon the property. […]

PACIFIC BUILDING v. STATE TAX COMMISSION In the Oregon Tax Court. January 6, 1965. True cash value — Question of fact — Ten percent rule 1. True cash value is a question of fact in every case. No rule of law exists which holds that a variance of less than 10% in true cash value […]

PUBLISHERS PAPER COMPANY v. DEPARTMENT OF REVENUE In the Oregon Tax Court. November 8, 1973. True cash value — Mill and manufacturing plant — Evidence 1. Testimony based on hypothetical model realignment of mill structure failed to show that county’s appraisers had incorrectly discounted reproduction values of mill to allow for functional obsolescence. Trial had […]

Thelma C. MAGNO, Plaintiff, v. DEPARTMENT OF REVENUE, Defendant, and WASHINGTON COUNTY ASSESSOR, Intervenor-Defendant. No. TC 4720.In the Oregon Tax Court. Decision for Defendant and Intervenor rendered September 14, 2006. After prevailing in the underlying matter, Plaintiff requested attorney fees pursuant to ORS 305.490(4). The court held that an award of attorney fees when Plaintiff […]

STC SUBMARINE, INC. v. DEPARTMENT OF REVENUE TC 3426In the Oregon Tax Court. January 25, 1994. Property taxation-Valuation — Highest and best use 1. A highest and best use analysis is an economic study of market forces focused on the subject property. Highest and best use is determined by weighing market demand for the uses, […]

LELA K. MUNKERS, EXECUTRIX v. STATE TAX COMMISSION In the Oregon Tax Court. July 28, 1967. Gain taxable — Gain realized — Amount realized 1. It is fundamental that in order for gain to be taxable it must be “realized.” Gain from the sale of property is defined as the excess of the amount realized […]

TWENTIETH CENTURY-FOX FILM CORPORATION v. DEPARTMENT OF REVENUE TC 1987In the Oregon Tax Court. March 21, 1984. Evidence — Presumptions and burden of proof — Review bycourts — Burden of proof 1. Use of methods other than the three-factor apportionment formula should be exceptional and the party seeking to invoke ORS 314.670 has the burden […]