Oregon

Subscribe to Oregon

On October 25, 2019, the Oregon Tax Court upheld the Department of Revenue’s proposed increase in the real market value of Level 3’s centrally assessed property. Level 3 operated an optical fiber network and provided various communication services. It argued that the Oregon Department of Revenue should not have included in its “unit” certain “investment…

On February 26, 2019, the Oregon Tax Court held that an out-of-state cigarette manufacturer’s in-state activities violated Public Law 86-272, resulting in the manufacturer being subject to Oregon’s corporation excise tax. P.L. 86-272 prohibits any state from imposing a net income tax on out-of-state taxpayers that generally limit their in-state business activities to solicitation. The…

In another of the so-called “Compact” cases, the Oregon Supreme Court affirmed the decision of the Oregon Tax Court and held that: (1) the 1967 Oregon Legislature, in enacting Oregon Statute Section 305.655, did not clearly and unmistakably intend for Oregon to enter into a binding contract that would bind the states under the Oregon…

By Robert Merten and Madison Barnett

The Oregon Tax Court held that Oregon was not constitutionally prohibited from determining the applicable graduated income tax rate of a part-year resident individual based on the individual’s full-year taxable income, even though a majority of that income was earned outside of the state. The taxpayer argued that applying…

By Chris Mehrmann and Andrew Appleby

The Oregon Supreme Court held that property owned by DirecTV, Inc., a satellite television provider, was subject to central assessment because DirecTV was engaged in the business of providing “data transmission services,” making it a “communications” business. In reaching its decision, the court explained that data transmission services include…

By Hanish Patel and Open Weaver Banks

The Magistrate Division of the Oregon Tax Court held that an insurance company’s gain from the sale of a subsidiary and income from a holding company both constituted nonbusiness income. The court found that the acquisition and sale of a 40% owned subsidiary that operated as a third-party…

By Zack Atkins and Timothy Gustafson

The Oregon Tax Court held that the Multistate Tax Compact (Compact), which allows for an equally weighted, three-factor apportionment formula, was an illusory contract and its terms had been effectively disabled by the Oregon Legislature. The statute in question, ORS 314.606, provides that in case of conflict the provisions…