Category: Oregon Tax Court Opinions

CRIV INVESTMENTS, INC. v. DEPARTMENT OF REVENUE TC 4046In the Oregon Tax Court. April 23, 1997 Corporate income tax — Corporate partners 1. Corporate partners are liable for the tax imposed by ORS chapter 318 on their distributive shares of partnership income. Corporate income taxation — Activities in Oregon 2. ORS chapter 318 imposes a […]

ESTATE OF LACKEY v. STATE TAX COMMISSION In the Oregon Tax Court. January 28, 1965. Appeal — Tax Court — Filing fee 1. The clerk is entitled to reject the proffered filing if not accompanied by the correct filing fee. Appeal — Tax Court — Filing fee 2. If the proffered document is filed without […]

ENTERPRISE RENT-A-CAR COMPANY OF OREGON, an Oregon corporation v. DEPARTMENT OF REVENUE TC 3174In the Oregon Tax Court. July 6, 1992. Property taxation — Appeals — Subsequent owner 1. If a property owner does not have an interest in the property until after the appeal period has expired, that owner can never show good and […]

MORAVEK’S CONCRETE, INC. v. DEPARTMENT OF REVENUE L. P. COMPANY v. DEPARTMENT OF REVENUE In the Oregon Tax Court. March 21, 1978. Statutes — Construction and operation — Meaning of language — Particular words and phrases 1. The difficulty in ascertaining the range or compass of the statutory language, “self-propelled mobile cranes,” grows out of […]

LOTTIS v. STATE TAX COMMISSION In the Oregon Tax Court. August 31, 1966. Accounting methods — Involuntary change — Income adjustments 1. ORS 314.275 does not provide in cases of involuntary change that the adjustments be restricted to the period from 1957, the effective date of the Oregon statute, to the date of the change […]

MT. HOOD MEADOWS OREG., LTD. v. DEPARTMENT OF REVENUE In the Oregon Tax Court. May 20, 1974. True cash value — Cost approach — Use 1. If a choice is present, appraisers should generally use the cost approach to value only as a check on the other methods of valuation. True cash value — Income […]

BAILEY v. STATE TAX COMMISSION In the Oregon Tax Court. June 28, 1966. Statutes — Federal interpretation 1. While the federal decisions on the same issues are not binding on the State of Oregon they are instructive. Deductions — Expenses — Wages — Unemancipated minor children — Regulation — Federal 2. Since 1944 when § […]

THEATRE WEST OF LINCOLN CITY, LTD., an Oregon nonprofit corporation v. DEPARTMENT OF REVENUE TC 3317In the Oregon Tax Court. July 20, 1993. Property taxation — Exemptions — Literary organization 1. Applying the rule of strict construction, the term “literary” refers to literature or written words, and not to movies, theatre, television or opera. Property […]

Albert M. and Catherine A. JENSEN v. DEPARTMENT OF REVENUE TC 3455In the Oregon Tax Court. January 20, 1994. Property taxation — Farm use assessment 1. For property to be qualified for special farm use assessment, it must be exclusively used for farm use. “Exclusively used” is defined as primarily used, and because plaintiffs’ primary […]

CHARLES C. ERWIN v. STATE OF OREGON, COUNTY OF MULTNOMAH and TAX ASSESSOR, DEPARTMENT OF ASSESSMENT AND TAXATION FOR MULTNOMAH COUNTY In the Oregon Tax Court. December 13, 1978. Courts — Nature, extent and exercise of jurisdiction — Determination 1. A court must take judicial notice of its own jurisdiction and must decline any case […]

Edward W. ARNOLD and Edith M. Arnold v. DEPARTMENT OF REVENUE TC 3084In the Oregon Tax Court. November 8, 1991. Income tax — Assessments — Appeal time 1. ORS 305.280(2) provides a 90-day period to appeal from a notice of assessment. If there is no appeal within 90 days, the assessment becomes final. Income tax […]

ESTATE OF FRANCES TATE v. DEPARTMENT OF REVENUE TC 2479In the Oregon Tax Court. January 14, 1987. Taxation — Inheritance tax — In general 1. ORS 305.280(13) dictates that assessments and billings of taxes shall be final after appeal period specified in ORS 305.280. Taxation — Inheritance tax — In general 2. ORS 305.280(2) requires […]

Arvilla SCOGGIN v. DEPARTMENT OF REVENUE TC 3679In the Oregon Tax Court. March 9, 1995. Income taxation — Contribution to capital 1. Plaintiff did not follow the form of a sale because the real estate contract was not recorded and the deed was released or delivered before the contract was satisfied. Thus the corporation had […]

BAKER PRODUCTION CREDIT ASSOCIATION v. DEPARTMENT OF REVENUE KLAMATH PRODUCTION CREDIT ASSOCIATION v. DEPARTMENT OF REVENUE TC 2333 TC 2334In the Oregon Tax Court. February 13, 1986. Taxation — Corporate business, earnings or receipts — Baddebt reserves 1. At time ORS 317.277 was enacted, many PCAs had reached the federally required minimum total reserve of […]

MERCY MEDICAL CENTER, INC., an Oregon nonprofit corporation v. DEPARTMENT OF REVENUE TC 3213In the Oregon Tax Court. October 21, 1992. Property taxation — Exemption 1. In the property tax system, exemption statutes are strictly construed. Property taxation — Exemption — Hospital 2. The fact that nonprofit hospitals charge for their services will not deprive […]

JOYCE RITCH, SPECIAL ASSESSOR OF MORROW COUNTY, OREGON, v. C. H. MACK, DIRECTOR, DEPARTMENT OF REVENUE In the Oregon Tax Court. November 18, 1970. Farm use — Purpose 1. The purpose of the special farm use assessment classification was to give tax relief to owners of farmlands who were using their property for that purpose […]

Thomas P. DENNEHY v. DEPARTMENT OF REVENUE TC 2395In the Oregon Tax Court. February 6, 1989. Taxation — Constitutional restrictions — Limitation of rate 1. The practice of “rounding up” in calculating the tax rate under ORS 320.090 was violative of Article I, section 1, of the Oregon Constitution. Taxation — Constitution restrictions — Limitation […]

Michael J. RAU v. DEPARTMENT OF REVENUE TC 3541In the Oregon Tax Court. November 7, 1994. Income taxation — Self-assessment 1. The taxpayer’s obligation is to self-assess the individual’s personal income tax liability and to file a return with the department. If there are extenuating circumstances which prevent the timely filing of a return, the […]

Mario A. NEGRETE, Plaintiff, v. DEPARTMENT OF REVENUE, Defendant. No. TC 4760.In the Oregon Tax Court. Decision for Defendant rendered September 12, 2006. Plaintiff appealed the Magistrate Division decision that denied his appeal of a 2003 personal income tax deficiency. Plaintiff argued that his wages are not subject to income taxation. The court held that […]

BEN W. TANNLER v. DEPARTMENT OF REVENUE In the Oregon Tax Court. November 18, 1976. Taxation — Valuation — Real property 1. In valuation of unimproved property, cost to a potential buyer of development and probability of obtaining proper zoning must be considered by an appraiser. Taxation — Review of assessment — Weight and sufficiency […]

ASTORIA PLYWOOD CORPORATION v. DEPARTMENT OF REVENUE In the Oregon Tax Court. April 21, 1975. Property valuation — Exhibits — Hearsay 1. Where an expert witness attempts to testify to values derived from various exhibits which were not prepared by the expert, and which involve various trending multipliers and depreciation multipliers, the derivation of which […]

PLYWOOD VENEER WORKERS LOCAL 2554 v. STATE TAX COMMISSION In the Oregon Tax Court. March 14, 1967. Exemptions — Legislative grace 1. Exemptions for taxation do not originate with the courts — they are privileges accorded as a matter of legislative grace. Exemptions — Property tax — Fraternal organizations — Legislative intent — Labor temples […]

THOMAS CREEK LUMBER AND LOG COMPANY, Plaintiff, v. DEPARTMENT OF REVENUE, Defendant. No. TC 4761.In the Oregon Tax Court. Decision for Defendant rendered January 31, 2007. Plaintiff (taxpayer) appeals the application of the two-tiered interest rate set forth in ORS 305.222 to its deficiencies of Forest Harvest Privilege Tax and Western Oregon Privilege Tax. Applying […]

CONNECTICUT GENERAL LIFE INSURANCE COMPANY v. DEPARTMENT OF REVENUE TC 3249In the Oregon Tax Court. June 21, 1993. Property taxation — Highest and best use 1. Highest and best use is the reasonably probable and legal use of vacant land or improved property, which is physically possible, appropriately supported, financially feasible, and that results in […]

PRATUM CO-OP WAREHOUSE v. DEPARTMENT OF REVENUE In the Oregon Tax Court. June 27, 1975. Administrative agencies — Discretion 1. Where discretion has been vested in an administrative officer by the legislature, the court’s review of the officer’s actions must be confined to the consideration of whether or not the officer exercised his discretion judiciously […]

LAKE COUNTY BOARD OF EQUALIZATION v. DEPARTMENT OF REVENUE AND ZX RANCH, INC. In the Oregon Tax Court. December 12, 1969. True cash value — Ranch land — Cow units 1. Evidence supports taxpayer’s finding of animal units but does not justify deductions for grasses and alfalfa. Trial had October 21, 1969, in the Lake […]

Kay C. VAN NATTA and Robert P. Van Natta, dba Van Natta Brothers v. DEPARTMENT OF REVENUE TC 3076In the Oregon Tax Court. December 5, 1991. Timber severance tax — Agreement — License 1. An agreement under a license for logging services only will not result in title to the timber passing to the logger. […]

SISTERS OF CHARITY v. WASHINGTON COUNTY BOARD OF COMMISSIONERS In the Oregon Tax Court. August 10, 1967. Property taxes — County court — Refunds 1. ORS 311.806 provides that the county court shall refund property taxes to the taxpayer in certain instances. Property Taxes — County assessor — Exemptions 2. To be exempt from property […]

Robert RONDEAU, Benton County Assessor v. DEPARTMENT OF REVENUE WITHAM HILL INVESTORS, Intervenor TC 2804In the Oregon Tax Court. October 9, 1989. Taxation — Levy and assessment — Valuation 1. The income approach and the market approach (deriving a gross rent multiplier) requires an adequate allowance for the physical condition of the property. Taxation — […]

FRANK H. AND MARIE E. SCHULTZ v. COMMISSION In the Oregon Tax Court. February 21, 1968. Contract construction — Protection to seller 1. A contract would not afford sufficient protection to the seller if it provided that the unpaid balance would be paid from profits without a specific provision for payments to be due and […]

DEPARTMENT OF REVENUE v. Walter FROMAN, Sheila Froman, and Clackamas County Assessor. TC 4304.In the Oregon Tax Court. Decided April 8, 1999. APPEAL AND ERROR — NONDISPOSITIVE ORDER 1. An order denying a motion to dismiss that is not a dispositive order is not appealable. APPEAL AND ERROR — JUDGEMENTS 2. Because the Oregon Tax […]

IRON FIREMAN MANUFACTURING CO. v. STATE TAX COMMISSION In the Oregon Tax Court. May 24, 1967. Public Law 86-272 — Contract approved situs 1. Taxpayer is not within the purview of Public Law 86-272 if the contract order is in fact approved in the state where the order is solicited. Public Law 86-272 — Beyond […]

CASCADE MANOR, INC. and EVERGREEN UNION RETIREMENT ASSOCIATION, INC. v. DEPARTMENT OF REVENUE In the Oregon Tax Court. March 28, 1974. Exemption — Nonprofit homes for elderly — Procedure 1. ORS 307.380 does not require the county assessor to take affirmative steps to place exemption forms in the hands of nonprofit homes for the elderly. […]

PENNZOIL COMPANY AND SUBSIDIARIES, Plaintiff v. DEPARTMENT OF REVENUE, Defendant TC 4301In the Oregon Tax Court. March 17, 2000 Plaintiff appealed from Defendant’s assessment of corporate excise taxes. Plaintiff claimed that proceeds received from a tort suit settlement did not constitute business income subject to apportionment. The court held that the proceeds were business incoem […]

ROGUE RIVER PACKING CORPORATION v. DEPARTMENT OF REVENUE In the Oregon Tax Court. January 21, 1976. Administrative law — Scope of review — Discretion of agency 1. The legislature in ORS 307.475 has vested in the Director of the Department of Revenue the discretion to determine whether there has been “hardship” and the courts may […]

SCHNITZER STEEL PRODUCTS CO. v. DEPARTMENT OF REVENUE In the Oregon Tax Court. February 14, 1977. Taxation — Income taxes — Construction and operation of statutes 1. The informal proceeding provided in ORS 314.405(2) affords an opportunity to protest or correct a proposed deficiency assessment; the formal proceeding provided in ORS 314.455 relates to appeal […]

WILL H. BARBER, DECEASED AND GRACE S. BARBER v. DEPARTMENT OF REVENUE In the Oregon Tax Court. October 30, 1973. Definition — “Taxpayer” 1. A person who takes property upon death of her spouse is not the “taxpayer” or agent required, for application purposes, by the property tax relief statute unless she was the “taxpayer” […]

CARMICHAEL COLUMBIA OIL, INC., an Oregon corporation, and Don Bretthauer Oil Company, an Oregon corporation v. DEPARTMENT OF REVENUE TC 3538In the Oregon Tax Court. May 18, 1994. Oregon Tax Court — Jurisdiction 1. The requirement that taxpayers exhaust their administrative remedies is mandatory and failure to comply in good faith can result in dismissal […]

Hildur E. FITZWATER v. DEPARTMENT OF REVENUE TC 2990In the Oregon Tax Court. August 12, 1991. Statutory construction 1. ORS 215.213 sets forth certain activities, including boarding of horses for profit, that may be established within an exclusive farm use zone. While originally all such uses were nonfarm, the “nonfarm” language has since been removed […]

VINTON H. AND FERN L. LOVENESS v. STATE TAX COMMISSION In the Oregon Tax Court. May 5, 1967. Process — Service — Statutory requirements 1. Under ORS 314.460(1) requiring service by registered or certified mail the United States Postal Service is the delivery agent. Process — Service — Jurisdiction 2. Service on the commission must […]

ARCHDIOCESE OF PORTLAND IN OREGON v. DEPARTMENT OF REVENUE TC 4114In the Oregon Tax Court. October 5, 1998 Property taxation — Exemption — Administrative rule 1. The department cannot, by rule, limit an applicant for property tax exemption to one statute when the property may qualify under either. Property taxation — Charitable objectives — Reasonablynecessary […]

George VAN NATTA v. DEPARTMENT OF REVENUE TC 3612In the Oregon Tax Court. January 26, 1995. Tax Court procedure — Burden of proof 1. In all proceedings before the Tax Court, a preponderance of the evidence shall suffice to sustain the burden of proof. The burden of proof shall fall upon the parties seeking affirmative […]

Jack C. UTTERBACK and Dixie A. Utterback, Plaintiffs, v. DEPARTMENT OF REVENUE, Defendant. TC 4634.In the Oregon Tax Court. Regular Division. Decision for Defendant rendered December 22, 2003. Plaintiffs claimed their real property was exempt from taxation either because their title ultimately traces to the federal government or because the State of Oregon has no […]

Charles A. KELLER v. DEPARTMENT OF REVENUE Michael McCASLIN and Elizabeth McCaslin v. DEPARTMENT OF REVENUE Richard B. KELLER, II v. DEPARTMENT OF REVENUE Richard B. KELLER and Ruth E. Keller v. DEPARTMENT OF REVENUE Dennis B. KRANZ v. DEPARTMENT OF REVENUE TC 3163 TC 3164 TC 3165 TC 3166 TC 3194In the Oregon Tax […]

RAINIER MANUFACTURING CO. v. DEPARTMENT OF REVENUE In the Oregon Tax Court. March 7, 1974. Statute of limitations — Refund claim 1. When the statutory period has run for making a refund, the agency is powerless lawfully to accede to the claim. Submitted on Decisive Demurrer and briefs. Plaintiff represented by Charles P. Duffy and […]

GWENDOLYN ROGERS v. DEPARTMENT OF REVENUE In the Oregon Tax Court. November 1, 1977. Statutes — Construction and operation — Retroactive — Statutes imposing liabilities 1. A retroactive tax is one which is imposed on past transactions or for past periods. Taxation — Gift taxes — In general 2. The making of a gift is […]

STONEBRIDGE LIFE INSURANCE COMPANY, Plaintiff, v. DEPARTMENT OF REVENUE, Defendant. No. TC 4705.In the Oregon Tax Court. Decision for Defendant rendered April 20, 2006. Defendant (the department) filed a motion for reconsideration, urging the court to revisit its earlier order in this case. Both the department and Plaintiff (taxpayer) requested that the court use its […]

CHAMBERLIN v. STATE TAX COMMISSION In the Oregon Tax Court. May 12, 1965. Allocation of income — Apportionment — “Doing business” — Definition 1. “Doing business” means engaging in activities in the pursuit of gain. Hearing held in Salem, Oregon. Denton G. Burdick, Jr., Portland, argued the cause for plaintiff. Theodore W. de Looze, Assistant […]

JIMMY L SESMA and LAURA D. SESMA, sui juris, natural individuals, Plaintiffs, v. DEPARTMENT OF REVENUE, State of Oregon, Defendant. No. 4551.In the Oregon Tax Court. Decision for Defendant rendered April 9, 2002. Defendant filed a motion for dismissal, requesting damages and attorney fees. The court dismissed Plaintiffs’ Complaint with prejudice for failure to state […]

Edward R. CHADWICK v. Linda ALEXANDER, Multnomah County Tax Collector; Department of Revenue; Portland Development Commission TC 2873In the Oregon Tax Court. September 27, 1989. Administrative law — Judicial powers — Exhaustion ofadministrative remedies 1. ORS 305.275(4) mandates that no person shall appeal to the Tax Court on any matter arising under the revenue and […]

NORTHWEST ACCEPTANCE CORP. v. COMMISSION In the Oregon Tax Court. January 14, 1969. Financial institution — Statutory construction 1. In order to determine whether plaintiff is a financial institution within the meaning of ORS 317.010(10) it is not necessary to look to decisions interpreting other state or federal statutes which are not the same as […]

MULTNOMAH COUNTY, a home rule subdivision of the State of Oregon, by and through its Tax Collector, Kathleen A. Tuneberg and its Tax Assessor Robert Ellis v. DEPARTMENT OF REVENUE, and Villa St. Clair, Inc. TC 4329.In the Oregon Tax Court. February 25, 1999. PROPERTY TAXATION — LIMITED ASSESSMENT PROPERTIES 1. While land and improvements […]

Larry WRIGHT and Cheryl Wright, Plaintiffs, v. DEPARTMENT OF REVENUE, Defendant. TC 4736.In the Oregon Tax Court. Decision for Defendant rendered April 27, 2006. Plaintiffs (taxpayers) contend that both their state and federal 1998 personal income tax returns were mailed on August 1, 2001. Because the state return was never received by the Department of […]