Category: Oregon Tax Court Opinions

Edward PFANMULLER v. DEPARTMENT OF REVENUE TC 2764In the Oregon Tax Court. June 13, 1989. Taxation — Valuation — Methods of valuation 1. An overall capitalization rate reflects the relationship between estimated income and sales price of a property. Taxation — Valuation — Methods of valuation 2. The traditional approaches to valuation, cost, market and […]

FIRST NATIONAL BANK OF OREGON v. DEPARTMENT OF REVENUE TC 1457In the Oregon Tax Court. December 7, 1981. Taxation — Inheritance — Accrual of tax — Effect ofcompromise 1. Oregon inheritance tax accrues and the rights of interested persons become fixed on the date of the decedent’s death and these rights are unaffected by compromises […]

Edward B. and Florence W. GLICK v. DEPARTMENT OF REVENUE TC 3649In the Oregon Tax Court. June 6, 1995. Income taxation — Pension distribution 1. ORS 316.159 allows for the subtraction from income of distributions from plans or trusts under IRC § 408 or IRC § 401(c)(3), because plaintiffs’ pension distributions were from IRC § […]

ERIC THARALSON, Testamentary Trustee of Trust Established by Will of Agnes E. Tharalson, AND ESTATE OF GWENDOLYN MILLER, Deceased v. STATE OF OREGON AND DEPARTMENT OF REVENUE In the Oregon Tax Court. October 27, 1976. Constitutional law — Due process — Taxation of property 1. The operation of ORS 118.095, a part of the Oregon […]

FRED MEYER, INC. v. DEPARTMENT OF REVENUE TC 3049In the Oregon Tax Court. November 20, 1991. Property valuation — True cash value — Market test 1. The test of true cash value is a market test. It does not matter whether a particular owner underuses or overuses the property. Property valuation — Highest and best […]

EARL C. LATOURETTE, JR., TRUSTEE v. STATE TAX COMMISSION In the Oregon Tax Court. November 8, 1967. Trust — Revocable — Grantor taxed 1. Income is taxable to the grantors of a trust if the trust is revocable under ORS 316.830. Otherwise it is taxable to the trust under ORS 316.815(5). Trust — Grantor taxed […]

HUGH B. and HELEN L. WOOD v. OREGON STATE BOARD OF FORESTRY In the Oregon Tax Court. March 9, 1973. Timber tax — “Forest land” — Defined 1. “Forest land” does not have the same definition under ORS 321.605 (3) as under ORS 321.705 (3). Timber taxes — Declassification — Additional tax 2. Declassification of […]

ECUMENICAL MINISTRIES OF OREGON, a non-profit corporation v. DEPARTMENT OF REVENUE TC 3103In the Oregon Tax Court. October 7, 1992. Property taxation — Appeal rights — Exempt property 1. When an assessor determines that property is only partially exempt, the taxpayer must timely appeal if it does not agree. Property taxation — Appeal rights — […]

Noell WEBB, Plaintiff, v. DEPARTMENT OF REVENUE, Defendant. No. TC 4731.In the Oregon Tax Court. Decision for Plaintiff rendered December 6, 2005. Decision on merits rendered April 7, 2006. See Webb v. Dept. of Rev., 19 OTR 20 (2006). Plaintiff (taxpayer) failed to timely file her personal income tax return with Defendant Department of Revenue […]

J. R. SIMPLOT COMPANY v. DEPARTMENT OF REVENUE LAMB-WESTON, INC., Intervenor UMATILLA COUNTY v. DEPARTMENT OF REVENUE LAMB-WESTON, INC., Intervenor J. R. SIMPLOT COMPANY, Intervenor TC 2885 TC 2962In the Oregon Tax Court. March 19, 1993. Appraisal theory — Functional obsolescence 1. Functional obsolescence is depreciation or loss in value due to changes in technology […]

PENN PHILLIPS LANDS, INC. v. STATE TAX COMMISSION In the Oregon Tax Court. May 18, 1966. Jurisdiction — Parties 1. The court does not have jurisdiction to raise the valuation of private lands in the area other than the plaintiff’s if these other private owners are not parties to the suit and have had no […]

Emma E. TAYLOR and Eugene E. Feltz v. CLACKAMAS COUNTY ASSESSOR and DEPARTMENT OF REVENUE, Intervenor TC 4302.In the Oregon Tax Court. June 3, 1999. PROPERTY TAXATION — STATUTORY CONSTRUCTION — CONSTITUTIONALINTERPRETATION — DETERMINATION OF MAXIMUM ASSESSED VALUE 1. The court must turn to the constitution in determining a claim under ORS 308.146 because it […]

JOHNSON v. STATE TAX COMMISSION In the Oregon Tax Court. December 27, 1965. Partnerships — Taxation 1. Partnerships are not taxable entities and persons carrying on business as partners are liable for income tax only in their separate capacity. Partnerships — Taxation — Information returns 2. The partnership files no taxable return but rather an […]

BERRY v. STATE TAX COMMISSION In the Oregon Tax Court. March 10, 1964. Deductions — Connected with source 1. The plain meaning of ORS 316.360 requires a direct connection between the creation of Oregon source income and the claimed deduction. Deductions — Connected with source — Nonresidents 2. ORS 316.360(1) does not limit nonresident deductions […]

FIRST INTERSTATE BANK OF OREGON, N.A. v. DEPARTMENT OF REVENUE TC 2515In the Oregon Tax Court. July 10, 1987 Taxation — Valuation — Market value and sale price 1. The statutes mandate that taxable property be valued at its true cash value, which is defined by statute to mean “market value.” Taxation — Valuation — […]

Jim GANGLE, Lane County Assessor v. DEPARTMENT OF REVENUE and EVERGREEN UNION RETIREMENT ASSOCIATION, INC., Intervenor TC 3384In the Oregon Tax Court. August 9, 1995. Property taxation — Real market value 1. “Depreciation” under ORS 308.490(2)(b) means accounting or book depreciation. Property taxation — Real market value — Approaches tovaluation 2. Unless an estimate of […]

BENEVOLENT PROTECTIVE ORDER OF ELKS, LODGE NO. 1680 v. DEPARTMENT OF REVENUE In the Oregon Tax Court. July 27, 1976. Taxation — Valuation — Current use 1. A specialized building with an ongoing use, which is the highest and best use, should be valued at that use. Taxation — Valuation — Cost to owner 2. […]

GELDERMANN AND COMPANY, INC. v. DEPARTMENT OF REVENUE TC 2000In the Oregon Tax Court. July 2, 1985. Taxation — Corporate franchises and privileges 1. The statutory definition of doing business found in ORS 317.010 has remained essentially unchanged since its adoption. Taxation — Corporate franchises and privileges 2. Doing business has been judicially interpreted as […]

Jeffrey H. KING and Susan E. King v. DEPARTMENT OF REVENUE MULTNOMAH COUNTY, Intervenor TC 3318In the Oregon Tax Court. July 30, 1993. Property valuation — Burden of proof 1. In a dispute over the value of the property, it is not enough for a taxpayer to criticize an appraiser’s position. The taxpayer has the […]

MAZAMAS, a nonprofit Oregon corporation v. DEPARTMENT OF REVENUE TC 3294In the Oregon Tax Court. April 9, 1993. Property taxation — Charitable organization 1. In order for an organization to be considered charitable, it “must have charity as its primary, if not sole object.”SW Oregon Pub. Def. Services v. Dept. of Rev., 312 Or. 82, […]

KIM WORRELL v. DEPARTMENT OF REVENUE Intervenor: THE ARCHDIOCESE OF PORTLAND IN OREGON In the Oregon Tax Court. May 9, 1977. Statutes — Construction and operation — Statutes in pari materia 1. When ascertaining the legislative intent for a particular statute, other statutes in pari materia must be considered. Taxation — Exemptions — Power to […]

DISABLED AMERICAN VETERANS, PORTLAND CHAPTER NO. 1, INC. v. DEPARTMENT OF REVENUE TC 1431In the Oregon Tax Court. July 29, 1982. Gaming — Constitutional and statutory provisions —Construction 1. ORS 167.117 legalizes playing of bingo upon premises of fraternal organizations. Statutes — Construction and operation — Construction withreference to other statutes 2. ORS 307.136 does […]

John C. SURRETT v. DEPARTMENT OF REVENUE TC 3108In the Oregon Tax Court. November 14, 1991. Property valuation — Trending 1. ORS 309.115, the “freeze statute,” does not prevent the assessor from increasing assessed valuation based on trending. Property valuation — Land 2. When estimating the value of comparable land which also contains improvements, it […]

Gross Receipts Tax TVKO, a subdivision of Home Box Office, a division of Time Warner Entertainment Company, L.P., a Delaware limited partnership, Plaintiff, ORDER DENYING PLAINTIFF v. TVKO’S MOTION FOR AN AWARD OF ATTORNEYS’ FEES AND COST LERON R. HOWLAND, Superintendent of the Oregon Department of State Police; ADOLFO AKIL, Member of the Oregon State […]

EDGAR L. STONE v. DEPARTMENT OF REVENUE In the Oregon Tax Court. April 19, 1974. Homeowner’s property tax relief — Limitation period 1. Absent a showing of estoppel or other equitable foundation, there exists no power to waive the period of limitations for homeowner’s property tax relief. Trial had April 15, 1974, in the courtroom […]

THE FIRST EVANGELICAL UNITED BRETHREN CHURCH, LAWRENCE RICH, EARLE RIGGS, JOHN BEHRENS, FRED SCHARF, NICK LERUD, T. JACK KUNDERT AND WARREN PAHL, AS TRUSTEES v. STATE TAX COMMISSION In the Oregon Tax Court. April 4, 1963. Pleadings — Nonjoinder — Intervention 1. When defendant demurred and filed a plea in abatement contending the trustees were […]

COOK INDUSTRIES, INC. v. DEPARTMENT OF REVENUE In the Oregon Tax Court. October 24, 1979. Statutes — Construction and Operation — Contemporaneous construction in general 1. In construing a statute, its meaning as applied to a specific set of circumstances must be derived from a number of cases. Statutes — Construction and Operation — Contemporaneous […]

J. R. WIDMER, INC. v. DEPARTMENT OF REVENUE TC 2163In the Oregon Tax Court. January 24, 1985. Municipal corporation — Power to tax for general municipal purposes 1. ” ‘To do business’ means to engage in any activity in pursuit of gain.” MCC 5.70.010(B). Municipal corporation — Power to tax for general municipal purposes 2. […]

ANDREW C. LEAF, Plaintiff, v. DEPARTMENT OF REVENUE, State of Oregon, Defendant. TC 4332.In the Oregon Tax Court. October 4, 1999. Defendant moved for summary judgment seeking a determination that distributions from an IRA are subject to personal income tax. Plaintiff argued that distributions from his IRA are exempt because all contributions to the IRA […]

HOWARD McCLUNG v. DEPARTMENT OF REVENUE, State of Oregon, GERALD WHITLATCH and NICK OSTAPKEVICH In the Oregon Tax Court. July 16, 1979. Taxation — Levy and assessment — Real property — Timber and timberlands 1. The Eastern Oregon severance tax is imposed upon all owners of timber in Eastern Oregon at a rate of five […]

WILLARD MAXWELL ALDRICH AND MILDRED G. ALDRICH v. DEPARTMENT OF REVENUE In the Oregon Tax Court. February 17, 1970. Statutory construction — Federal revenue ruling 1. Administrative interpretation of federal statutes and regulations is informative only and not binding on the Court. Statutory construction — Exclusions from gross income — Minister’s housing allowance 2. Statute […]

ROY L. HOUCK SONS v. STATE TAX COMMISSION In the Oregon Tax Court. March 19, 1963. Exemptions — Fixed load vehicles 1. Component parts of asphalt and crushing plants to which frames with axles and wheels were bolted or welded were validly licensed as fixed load vehicles and exempt from ad valorem taxation under ORS […]

ROY MOBILE HOMES, INC. v. DEPARTMENT OF REVENUE In the Oregon Tax Court. March 16, 1977. Taxation — Income taxes — Constitutional provisions 1. Oregon Constitution, Article IV, Section 32, does not affect the interpretation of ORS chapter 317, which relates to corporate excise taxes. Taxation — Income taxes — Classification 2. The legislature’s power […]

H. E. THORNTON v. DEPARTMENT OF REVENUE In the Oregon Tax Court. December 7, 1970. True cash value — Market data approach — Contract sale 1. In a determination of the true cash value of land it is improper to assign an arbitrary percentage factor to a sale because it is made on a conditional […]

OLYMPIA BREWING COMPANY v. DEPARTMENT OF REVENUE In the Oregon Tax Court. September 25, 1972. Public Law 86-272 — Beyond permissible solicitation 1. If taxpayer’s activities in Oregon exceed the permissible solicitation of orders allowed by PL 86-272, taxpayer is subject to Oregon’s corporation income tax. Public Law 86-272 — Permissible solicitation 2. If taxpayer’s […]

Gary Alan CLARK, Plaintiff, v. DEPARTMENT OF REVENUE, Defendant. TC 4426In the Oregon Tax Court. September 8, 2000 Plaintiff motioned for reconsideration of a court order in which taxpayer’s wages were found to be subject to Oregon income taxation. The court granted that motion, cited authority showing Plaintiff’s wages as taxable, and ordered Plaintiff to […]

WESTERN STATES FIRE APPARATUS, INC. v. DEPARTMENT OF REVENUE In the Oregon Tax Court. December 12, 1969. Taxable situs — Personal property — Owner’s domicile 1. Generally the taxable situs of personal property is the owner’s domicile. Taxable situs — Personal property — Temporary absence from owner’s domicile 2. Personal property temporarily outside of owner’s […]

Noell WEBB, Plaintiff, v. DEPARTMENT OF REVENUE, Defendant. TC 4731.In the Oregon Tax Court. Decision for Defendant rendered April 27, 2006. Plaintiff (taxpayer) contends that the Department of Revenue (the department) was estopped from denying payment of taxpayer’s refund due to the department’s misleading oral communications. Without detailed memoranda written contemporaneously with the communications and […]

GEORGE W. KINGSLEY, Plaintiff, v. DEPARTMENT OF REVENUE, State of Oregon, Defendant. TC 4424In the Oregon Tax Court. JANUARY 5, 2001. Plaintiff appealed the assessment of additional income taxes deriving from disallowance of bad-debt losses, a dependent’s exemption, and certain income calculations. The court held that three of Plaintiff’s promissory notes became worthless in 1989 […]

EMERALD PEOPLE’S UTILITY DISTRICT v. DEPARTMENT OF REVENUE TC 2197 and 2357In the Oregon Tax Court. January 23, 1986. Taxation — Liability of persons and property — Property ofstate or municipality 1. The apparent intent of ORS 261.050 is to render PUDs property taxable just as privately owned property is taxable. Taxation — Levy and […]

MURRAY D. AGATE and EDITH M. AGATE v. DEPARTMENT OF REVENUE In the Oregon Tax Court. March 2, 1972. Trial had December 15, 1971, in Oregon Tax Court Courtroom, Salem. J. Ray Rhoten, Rhoten, Rhoten Speerstra, Salem, represented plaintiffs. G. F. Bartz, Assistant Attorney General, Salem, represented defendant. Decision for plaintiff rendered March 2, 1972. […]

EFFIE L. BREWSTER v. COMMISSION In the Oregon Tax Court. March 25, 1969. Trial had March 18, 1969, in Linn County, Albany, Oregon. Laurence Morley, Morley, Thomas, Orona Kingsley, Lebanon, Oregon, represented plaintiff. Alfred B. Thomas, Assistant Attorney General, represented the defendant. Decision for plaintiff rendered March 25, 1969. EDWARD H. HOWELL, Judge. The plaintiff […]

Lorraine M. ESTER v. CITY OF MONMOUTH TC 3528In the Oregon Tax Court. June 9, 1994. Constitutional interpretation 1. Article I, section 10, of the Oregon Constitution, does not guarantee the owner of property a remedy for violations of Article XI, section 11b, of the Oregon Constitution. Constitutional interpretation 2. The “ten interested taxpayers” requirement […]

HAZELTON v. STATE TAX COMMISSION In the Oregon Tax Court. October 15, 1964. Statutes — IRS interpretation of similar statutes — Legislative intent 1. Legislative intent is presumed in most income tax cases to follow the federal rulings when the statutes are similar. Deductions — Traveling expenses — Armed forces reserve duty 2. A National […]

LEWIS et al v. DEPARTMENT OF REVENUE TC 2205In the Oregon Tax Court. September 9, 1985. Taxation — Levy and assessment — Particular real property 1. ORS 94.285(1) requires separate assessment and taxation for properties subject to Oregon’s unit ownership laws. Taxation — Levy and assessment — Particular real property 2. By subjecting their property […]

CAMERON CLIFF v. DEPARTMENT OF REVENUE In the Oregon Tax Court. January 7, 1980. Levy and assessment — Mode of assessment in general — Real property 1. Income approach is the only reasonable method of ascertaining value when land is zoned for farm use purposes. Levy and assessment — Mode of assessment in general — […]

JAYNE v. STATE TAX COMMISSION In the Oregon Tax Court. January 22, 1965. Capital gains and losses — Reinvestment — Personal residence 1. A personal residence is a qualified investment for special capital gains treatment. Capital gains and losses — Qualifying corporations — Municipal corporations 2. The commission determines if a corporation qualifies by computing […]

JIM D. AND NANCY J. TALLMAN v. DEPARTMENT OF REVENUE In the Oregon Tax Court. December 20, 1973. Deduction — Net operating loss 1. Net operating loss carry-forward is only available to the extent it affects the federal taxable income for the relevant years and no carry-back is available on a state return filed before […]

COLUMBIA MOTOR HOTELS, INC. v. STATE TAX COMMISSION In the Oregon Tax Court. June 5, 1967. Statute unconstitutional — Fourteenth Amendment — Corporate liquidation 1. ORS 317.247(5) is clearly a violation of the equal protection clause of the Fourteenth Amendment for it discriminates against corporations with nonresident stockholders. Corporations — Equal protection rights 2. The […]

WEST FOODS, INC. v. DEPARTMENT OF REVENUE TC 1748In the Oregon Tax Court. January 15, 1985. Taxation — Exemptions — Statutory provisions 1. Inventory, defined as tangible personal property, including equipment, used in agricultural or horticultural use is exempt from ad valorem taxation. ORS 310.608. (Now ORS 307.400). Taxation — Levy and assessment — Rural […]

MITSUBISHI INTERNATIONAL CORPORATION v. DEPARTMENT OF REVENUE In the Oregon Tax Court. March 6, 1979. Commerce — Subjects of regulation — Exports 1. The Import-Export Clause of the U.S. Constitution prohibits any state, absent the consent of Congress, from levying taxes on imports or exports, except when absolutely necessary for executing that state’s inspection laws. […]

BUSH v. STATE TAX COMMISSION In the Oregon Tax Court. November 10, 1965. Bad debts — Requirement — Bona fide loan 1. Whether a bona fide loan existed is a question of fact. Bad debts — Bona fide loan — Burden of proof 2. Plaintiff fails to sustain the burden of proof when he fails […]

J. Michael MAGINNIS and Janet Y. Maginnis v. DEPARTMENT OF REVENUE. TC 4310.In the Oregon Tax Court. Decided January 25, 1999. INCOME TAXATION 1. To the extent practicable, Oregon follows federal income tax laws and principles. INCOME TAXATION — CHARACTER OF INCOME — ASSIGNMENTS 2. Under federal income tax laws, the character of income does […]

George H. BITTNER and Dorcas Jeanne Bittner, husband and wife v. DEPARTMENT OF REVENUE TC 4157In the Oregon Tax Court. July 20, 1999 Plaintiffs claimed the right to defer recognition of gain from the sale of their property, which consisted of a residence on 80.31 acres of land. They appealed additional income tax assessments when […]

Jack R. SCHMIDT, Jr. and Lynette M. Dupeé, Plaintiffs, v. DEPARTMENT OF REVENUE, Defendant. TC 4817.In the Oregon Tax Court. Decision for Defendant rendered September 23, 2008. Plaintiffs (taxpayers) appeal the denial of their 2006 income tax “kicker” refund by Defendant (the department). Under a general policy, the department would not make refund payments to […]

Philip SHERMAN and Vivian Sherman, Plaintiffs, v. DEPARTMENT OF REVENUE, Defendant. TC 4612.In the Oregon Tax Court. Regular Division. Decision for Defendant rendered July 24, 2003. Plaintiffs own a houseboat that is assessed as personal property; they seek reduction in the real market value and maximum assessed value for the property by reason of destruction […]