Oregon

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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…

By Charles Capouet and Timothy Gustafson

The Oregon Supreme Court held that an out-of-state taxpayer providing voice and data telecommunications services over a global network was required to use a transactional approach to source sales of other than tangible personal property for Oregon sales factor purposes under Oregon’s costs of performance method. Sales are sourced…

By Derek Takehara and Pilar Mata

The Magistrate Division of the Oregon Tax Court held that for the tax year 2003, (1) Rent-A-Center, a rent-to-own operator, and its wholly-owned franchising subsidiary, ColorTyme, were not unitary; (2) ColorTyme did not have nexus with Oregon; and (3) Rent-A-Center and its captive insurance subsidiary, Legacy Insurance Co. (Legacy)…

By Mary Alexander and Timothy Gustafson

In an administrative order, the Oregon Department of Revenue (1) repealed a rule related to Oregon’s Multistate Tax Compact (MTC) statute, (2) changed the method for utility and telecommunication providers to elect a double-weighted sales factor and (3) provided instructions on the time to adjust a return based on…