- Court: Oregon Supreme Court
- Area(s) of Law: Tax Law
- Date Filed: 09-15-2025
- Case #: S070564
- Judge(s)/Court Below: Garrett, J.
- Full Text Opinion
The Department of Revenue cross-appealed a prior ruling by the Oregon Tax Court which determined the value of the electric power company PacifiCorp. PacifiCorp v. Department of Revenue, 25 OTR 227 (2023). The Department argued that the Tax Court abused its discretion by not deferring to a Department-promulgated rule for assessing a property's real market value. Oregon's Constitution provides that the legislature may define how properties' real market value is calculated. See Or. Const. Article XI, section 11 (11)(a)(A). The Oregon state legislature delegated authority to the Department of Revenue to define the "methods and procedures" used "to determine real market value 'in all cases.'" See ORS 308.205(2). The Department of Revenue then adopted an industry handbook (the WSATA Handbook) as the methods and procedures which would apply to property valuation in all cases.
At issue on appeal is whether the Tax Court is required to follow the Department of Revenue's rule to use the WSATA Handbook when calculating property value. The Oregon Supreme Court found that the Tax Court erred when it found the Department's rule non-binding and when it failed to use the WSATA Handbook for its property valuation. The WSATA Handbook is considered a binding source of law unless it produces a result contrary to the constitution, statute, or other legal standards. "The judgment of the Tax Court is reversed, and the case is remanded to the Tax Court for further proceedings."