State v. Pipkin

• Court: Oregon Court of Appeals
• Area(s) of Law: Tax Law
• Date Filed: 12-12-2013
• Case #: S060912
• Judge(s)/Court Below: Walters, J.

A one time sale of intangible assets is excluded from the definition of "sales" under ORS 314.665(6)(a) and is not included in that definition under the "unless" clause of that statute.

In 2006, the Department of Revenue issued a notice of deficiency against Tektronix, Inc. for the 1999 tax year. The company contended that (1) the statute of limitations barred the department from assessing that deficiency, and (2) in any event, the department had incorrectly calculated its tax liability by including the one time sale of a division of their company as taxable sales under ORS 314.665(6)(a). The tax court granted partial summary judgment for the taxpayer on both grounds. The department appealed, arguing the sale of a division of the taxpayer's company should be taxed under ORS 314.665(6)(a). Because the sale of the division was a one-time sale, and did not constitute a "primary business" activity, the sale was not taxable under ORS 314.665(6)(a). Affirmed.

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