Category: Oregon Tax Court Opinions

ETHEL L. DRYER, AS EXECUTRIX OF THE ESTATE OF HORACE A. DRYER, DECEASED v. STATE TAX COMMISSION In the Oregon Tax Court. February 28, 1963. Statutes — Construction — Meaning of language 1. For tax purposes the essence of a transfer is the passage of control over the economic benefits of property rather than any […]

Carol R. KNAPP, Dee West, Gary West, Frank Crum, Georgeann Crum, Fred Miller, Marie Miller, Don Parker, Linda K. Bush, Carolyn Endeman, Paul Hayes, and Alvin K. Reiss, Plaintiffs, v. The CITY OF JACKSONVILLE, OREGON, Defendant. No. TC 4641.In the Oregon Tax Court. Decision rendered April 14, 2005. Parties stipulated to General Judgment filed July […]

GILBERTSON et al v. DEPARTMENT OF REVENUE TC 2276In the Oregon Tax Court. October 8, 1985. Taxation — Valuation — Market value and sale price;comparable sales 1. The use of vacant land as commercial parking lots is an interim use and their values are an indication of value of monthly parking lots. Appeal from the […]

KELLER v. DEPARTMENT OF REVENUE TC 1394In the Oregon Tax Court. April 8, 1981. Taxation — Income taxable — Source of income in general 1. An Oregon taxpayer whose spouse resides in a community property state is taxable upon his or her share of his or her spouse’s community property income. Civil rights — Rights […]

BEAR CREEK PLAZA, ORE., LTD., an Oregon Limited Partnership, v. DEPARTMENT OF REVENUE LAMONT’S APPAREL, INC. v. DEPARTMENT OF REVENUE TC 3089 TC 3085In the Oregon Tax Court. September 17, 1992. Property taxation — Assessor — Judicial capacity 1. When setting the value of a property, the assessor is acting in a judicial capacity. J. […]

ASSOCIATION OF UNIT OWNERS/SEVENTH MOUNTAIN SALES CORPORATION v. DEPARTMENT OF REVENUE TC 2994In the Oregon Tax Court. May 7, 1991. Taxation — Mode of assessment — Nature or ownership ofproperty 1. Condominium units located on leasehold estates are to be assessed to the owner as if the property were owned in fee simple. Income taxes […]

ZRZ PROPERTIES, LLC, Petitioner, v. CITY OF PORTLAND, Respondent, v. OREGON HEALTH AND SCIENCE UNIVERSITY and RIVER CAMPUS INVESTORS, LLC, Intervenors. No. TC 4701In the Oregon Tax Court. Decision rendered May 10, 2005. Respondent (the city) adopted an ordinance that classified local improvement district assessments (the ordinance). The city subsequently enacted an amended ordinance (the […]

SAWYER v. STATE TAX COMMISSION In the Oregon Tax Court. January 29, 1965. Valuation — Comparable sales — Abstraction of land value from the sale of improved realty 1. The application of opinion in the process of abstracting renders such comparable sales of less value and less weight, but without a showing of error the […]

GROSS v. STATE TAX COMMISSION In the Oregon Tax Court. June 22, 1964. Statutes — Construction — Legislative intent 1. It is the judge’s office, when construing statutes, to ascertain the intent of the legislature. ORS 174.020. Statutes — Construction — General rule 2. When several statutory provisions are involved, the construction should be adopted […]

DAVID B. WINNINGHAM v. DEPARTMENT OF REVENUE THE UNITED STATES NATIONAL BANK OF OREGON, PERSONAL REPRESENTATIVE OF THE ESTATE OF RAYMOND R. RETER, DECEASED v. DEPARTMENT OF REVENUE In the Oregon Tax Court. February 13, 1978. Taxation — Inheritance tax — Constitutionality — Equality and uniformity in general 1. Differentiating between the classes created by […]

MULTNOMAH COUNTY v. DEPARTMENT OF REVENUE MIDLAND-ROSS CORP., Intervenor In the Oregon Tax Court. February 28, 1974. Exemption — Commercial facilities under construction 1. When improvements constitute a structure, all components of which are essential for specific production activity and which is incapable of alternative use, incompletion for production purposes as of the assessment date […]

BROOKS RESOURCES CORPORATION v. DEPARTMENT OF REVENUE In the Oregon Tax Court. November 18, 1975. Statutory construction — ORS 91.505 et seq., and ORS 308.505 et seq. 1. ORS 308.505 et seq., granting to the Department of Revenue the power to tax water systems, has been implicitly repealed as to those water systems coming within […]

ARCHIE HARRIS, dba HARRIS FEEDLOT v. COMMISSION In the Oregon Tax Court. May 27, 1969. Estoppel — Application against the government 1. Equitable estoppel against taxing authorities should be applied only in rare instances. Estoppel — Application against government — Proof required 2. The facts were insufficient to evoke equitable estoppel against the assessor where […]

SLOCUM et al v. DEPARTMENT OF REVENUE TC 2363In the Oregon Tax Court. July 9, 1986. Taxation — Levy and assessment — Statutory provisions 1. ORS 310.810 through ORS 310.890 provides for the state to pay part of the property taxes levied against homesteads. Taxation — Nature or ownership of property 2. In order for […]

FRED A. DAYTON, SR., v. DEPARTMENT OF REVENUE J. H. BAXTER CO., Intervenor In the Oregon Tax Court. June 2, 1972. Oral arguments had May 4, 1972 in the courtroom of Oregon Tax Court, Salem. Donald H. Coulter, Myrick, Coulter, Seagraves Nealy, Grants Pass, appeared for plaintiff. Michael S. Killoran, Balderree, Calvert, Killoran Nelson, Grants […]

RAYMOND C. AND VIRGINIA I. LARSON v. DEPARTMENT OF REVENUE In the Oregon Tax Court. July 14, 1976. Evidence presumptions — Knowledge of law 1. A taxpayer is deemed to know that if a notice of increased assessment is mailed after the first Monday in May, the time for appearance before the board of equalization […]

JOHNSON v. STATE TAX COMMISSION In the Oregon Tax Court. October 18, 1965. Capital gains and losses — Allocation of purchase price — Leaseholds 1. Where an agreement of sale included no mention of a lease or an assignment of a lease, the sale constitutes a sale of a going business plus equipment and inventory; […]

WALTER D. and PATRICIA D. MILLER v. DEPARTMENT OF REVENUE In the Oregon Tax Court. February 20, 1974. Statutory construction — Incorporation by reference 1. The Personal Income Tax Act of 1969 did not incorporate by reference the Internal Revenue Code of 1954, but rather adopted, as a starting point for the Oregon return, the […]

NORMAN v. STATE TAX COMMISSION In the Oregon Tax Court. December 27, 1965. Capital gains and losses — Property used in trade or business 1. Gain from the sale of property used in the general trade or business of renting is not entitled to special treatment of capital gains under ORS 316.408. Trial had in […]

IN THE OREGON TAX COURT REGULAR DIVISION Edwin J. FACKLER and Joan A. Fackler, Plaintiffs, v. DEPARTMENT OF REVENUE, Defendant. No. TC 4667.In the Oregon Tax Court. Decision for Defendant rendered November 22, 2004. Defendant Department of Revenue (the department) determined that Plaintiff Edwin Fackler was responsible for the payment of withholding tax of a […]

Gery G. ELLIBEE, Plaintiff, v. DEPARTMENT OF REVENUE, Defendant. TC 4631.In the Oregon Tax Court. Regular Division. Decision for Defendant rendered October 9, 2003. Plaintiff appealed the Magistrate Division decision denying his claim for relief from additional taxes, interest, and penalties for tax years 1995 through 1998. As Defendant Department of Revenue (the department) had […]

Samuel F. NEWTON and Milca L. Newton, Plaintiffs, v. CLACKAMAS COUNTY ASSESSOR, and DEPARTMENT OF REVENUE, Defendants. No. TC 4739.In the Oregon Tax Court. Decision for Defendants rendered January 18, 2006. Plaintiffs (taxpayers) claimed that the assessed value of certain property was less than what Defendants determined. Taxpayers further claimed that Oregon’s imposition of a […]

DAVID W. SHEPHERD and GAIL M. SHEPHERD v. DEPARTMENT OF REVENUE In the Oregon Tax Court. April 24, 1979. Taxation — Levy and assessment — Farm use property 1. Under the Oregon statutory scheme for farm assessments, realty engaged in “farm use” is to be assessed, not on the basis of its “highest and best […]

CARL U. AND KATHERINE D. JONSSON v. DEPARTMENT OF REVENUE In the Oregon Tax Court. September 30, 1971. Constitutional law — U.S. Constitution, Art IV, § 2, Equal privileges and immunities — Nonresident taxpayers 1. Berry v. Tax Commission, 241 Or. 580 (1965), clearly established that although the equal privileges and immunities clause of the […]

LANE COUNTY v. DEPARTMENT OF REVENUE TC 3601In the Oregon Tax Court. October 19, 1994. Statutory construction 1. In construing statutes, this court must presume that the legislature intended what it said. The court cannot insert what has been omitted or omit what has been inserted, but must give effect to every word, phrase, sentence […]

OLYMPIA BREWING COMPANY v. DEPARTMENT OF REVENUE In the Oregon Tax Court. December 19, 1977. Taxation — Income taxes — Time for assessment and limitations 1. Proposed assessments of additional income taxes are nullified by defendant’s failure to ratify them within 12 months with the actual assessments required by ORS 314.410(4). Taxation — Income taxes […]

THE OREGON BANK v. DEPARTMENT OF REVENUE In the Oregon Tax Court. March 6, 1980. Taxation — Mode of assessment — Valuation in general 1. When the preferred market data approach cannot be utilized because of lack of comparable sales and the income approach is not applicable due to the lack of any history for […]

MARIE ARNOLD, Personal Representative of the Estate of Pauline Y. Foreman, Dec’d v. DEPARTMENT OF REVENUE In the Oregon Tax Court. August 2, 1978. Taxation — Inheritance and gift taxes — Statutory provisions — Constitutionality in general 1. The state of decedent’s domicile is not barred by the Fourteenth Amendment from taxing the transfer of […]

DEPARTMENT OF REVENUE v. CLIFFORD W. HOYT In the Oregon Tax Court. May 20, 1980. Constitutional law — Personal civil and political rights — Constitutional guaranties in general 1. The U.S. Constitution grants each citizen the personal right to refuse to answer a question which might be used to incriminate him. Income taxes — Persons […]

JARVIE v. STATE TAX COMMISSION In the Oregon Tax Court. June 6, 1962. Statutes — Construction — Legislative intent 1. The primary rule in statutory construction is ascertainment of legislative intent. ORS 174.020. Statutes — Construction — Meaning of language — Existence of ambiguity 2. It is only when the language is ambiguous and uncertain […]

Daniel Ray BEELER, Plaintiff, v. DEPARTMENT OF REVENUE, Defendant. No. TC 4746.In the Oregon Tax Court. Decision for Plaintiff rendered August 21, 2006. After prevailing in the underlying matter, Defendant submitted petition for an award of attorney fees under ORS 20.105. The statement of fees contained only general summaries of the amount of time spent […]

WILLIAM J. and DOROTHY G. LINFOOT v. DEPARTMENT OF REVENUE In the Oregon Tax Court. July 27, 1971. Farm use assessment — Leased land 1. In order for an owner of land to qualify for assessment for farm use, the farming operation of leased agricultural property carried on by the lessee must be for the […]

CONNOLLY v. STATE TAX COMMISSION In the Oregon Tax Court. February 8, 1967. Deductions — Bad debts — Uncollectible judgments 1. The courts are entitled to and do look behind uncollectible judgments to determine if the facts qualify the deduction as a bad debt. Deductions — Bad debts — Losses — Mutually exclusive 2. The […]

L. H. PIERCE AND LENA PIERCE v. COMMISSION In the Oregon Tax Court. October 11, 1968. Involuntary conversion — Reinvestment 1. Since plaintiffs had a valid extension to reinvest proceeds of an involuntary conversion during 1966, they should have reinvested during that year or applied for another extension. Involuntary conversion — Reinvestment — Extension 2. […]

CHESTER SWENSON, dba SWENSON LUMBER CO. v. DEPARTMENT OF REVENUE In the Oregon Tax Court. November 21, 1975. Statutory construction — ORS 321.240 (1971 Repl. Pt.) 1. Under ORS 321.340 (1971 Replacement Part) the Department of Revenue need only adopt rules and regulations it considers “necessary” to carry out the duties it has been given. […]

AVIS RENT A CAR SYSTEM, INC., BUDGET RENT A CAR SYSTEM, INC., DOLLAR RENT A CARE, and THE HERTZ CORPORATION v. DEPARTMENT OF REVENUE and MULTNOMAH COUNTY ASSESSOR, a political subdivision of the State of Oregon, Intervenor NATIONAL CAR RENTAL SYSTEMS, INC. v. DEPARTMENT OF REVENUE and MULTNOMAH COUNTY ASSESSOR, a political subdivision of the […]

JAMES C. and HELEN K. METZKER v. DEPARTMENT OF REVENUE In the Oregon Tax Court. March 2, 1971. Deductions — Business bad debt 1. For a taxpayer to prove a business bad debt in connection with his activity as a corporate officer, he must show facts from which it can be found that employment as […]

PETERSON et al v. DEPARTMENT OF REVENUE TC 2537In the Oregon Tax Court. September 29, 1987. Taxation — Deductions and exemptions — Losses 1. A shareholder’s portion of the net operating loss of an electing small business corporation shall not exceed the shareholder’s adjusted basis in stock or the adjusted basis of any indebtedness of […]

Michael S. LINDER and RaNea S. Linder, Plaintiffs, v. DEPARTMENT OF REVENUE, Defendant, and Brenda J. LINDER, Intervenor-Defendant. No. TC 4603.In the Oregon Tax Court. Decision for Defendant and Intervenor-Defendant rendered September 1, 2004. Michael and Brenda Linder divorced in 1998, sharing the custody of their three daughters. A circuit court judge ordered Michael Linder […]

SOUTHERN OREGON HEALTH SERVICE, INC. v. COMMISSION In the Oregon Tax Court. October 11, 1968. Judicial construction — Tax exemption statutes 1. Rules of judicial construction require strict but reasonable construction of tax exemption statutes; and one seeking the benefit of an exemption statute must show that he comes clearly within the legislative intent of […]

U-HAUL INTERNATIONAL, INC. v. DEPARTMENT OF REVENUE TC 1923In the Oregon Tax Court. March 7, 1985 Taxation — Mode of assessment of corporate stock, property orreceipts — Statutory provisions 1. Combined reporting is required of a corporation that is affiliated with a corporation subject to Oregon taxation if it is part of a unitary group […]

Russel L. WRIGHT v. DEPARTMENT OF REVENUE TC 3331In the Oregon Tax Court. August 3, 1993. Property taxation — Farm use 1. If a dwelling is not used in conjunction with an existing commercial farm use on the parcel, even if it is used in conjunction with farm use on another parcel, it does not […]

MORROW COUNTY GRAIN GROWERS v. DEPARTMENT OF REVENUE TC 2013In the Oregon Tax Court. October 21, 1985. Taxation — Mode of assessment — Market value and sale price 1. In a “comparable sales” approach to value, an isolated distress sale is not reliable but when majority of sales are “distress,” they may provide an accurate […]

McCONOUGHEY v. DEPARTMENT OF REVENUE TC 2279In the Oregon Tax Court. September 16, 1985. Taxation — Levy and assessment — Market value and sale price;comparable sales 1. True cash value is defined as market value and “[i]f the property has no immediate market value, its true cash value is the amount of money that would […]

GLAE C. and EVELYN GOULD v. DEPARTMENT OF REVENUE In the Oregon Tax Court. December 29, 1971. Capital gains — Timberland sale — Real property used in trade or business 1. Plaintiffs’ timberlands which were both actively operated and inactive parcels, constituted a source of readily available standing timber for their logging operations, and as […]

KELLOGG SALES COMPANY et al v. DEPARTMENT OF REVENUE TC 2533In the Oregon Tax Court. October 15, 1987. Statutes — Construction and operation — Evidence to aidconstruction 1. Court cannot read “intent” into an agreement without supporting language in the document or other evidence. Tax — Income taxes — Constitutional provisions in general 2. ORS […]

EDWIN BINNEY, 3d, PERSONAL REPRESENTATIVE OF THE ESTATE OF ELIZABETH PETERS BINNEY, DECEASED v. DEPARTMENT OF REVENUE In the Oregon Tax Court. May 10, 1977. Taxation — Inheritance and gift taxes — Statutory provisions 1. The characterization of a trust as a “conduit” type or an “operative” type is irrelevant in the application of the […]

Janine LEAPER, Plaintiff, v. DEPARTMENT OF REVENUE, Defendant, and MULTNOMAH COUNTY ASSESSOR, Intervener. No. TC 4786.In the Oregon Tax Court. Decision for Intervenor rendered January 16, 2008. Plaintiff (taxpayer) appeals the real market value of her property for the 2005-06 tax year. The court held that taxpayer’s testimony regarding value was sufficient to defeat a […]

FRANK LUMBER CO., INC. v. STATE OF OREGON, DEPARTMENT OF REVENUE, and JOHN J. LOBDELL, Director of the Department of Revenue In the Oregon Tax Court. December 20, 1978. Taxation — Levy and assessment — Proceedings for discovery and valuation of property 1. In order to carry out its duties under ORS 321.342(1) to administer, […]

Gordon LEITCH, JR. v. DEPARTMENT OF REVENUE TC 3582In the Oregon Tax Court. July 6, 1994. Property taxation — Legal tender 1. The United States Supreme Court held that Congress has the constitutional power to establish treasury notes of the United States as legal tender in payment of private debts. That determination is binding on […]

BRIGGS STRATTON CORPORATION v. COMMISSION In the Oregon Tax Court. February 2, 1968. Public Law 86-272 — Legislative intent 1. Congress in enacting PL 86-272 intended to exempt not only the specifically described phase of interstate sales efforts but also all lesser, included phases. PL 86-272 — Broad solicitation rejected 2. The Oregon Supreme Court […]

RAY v. STATE TAX COMMISSION In the Oregon Tax Court. January 13, 1965. Deductions — Bad debts — Definition 1. A debt is an unqualified obligation based upon a bona fide promise to pay given upon a valuable consideration. Deductions — Bad debts — Loans between members of family unit 2. When a parent and […]