09/16/2010 09:40:00 AM EST
CenturyTel, Inc. v. Dep’t of Revenue, 2010 Ore. Tax LEXIS 222 (Or. T.C. Aug. 9, 2010)
The taxpayer, domiciled outside of Oregon, and its subsidiaries were inthe wireline and wireless telecommunications business. When the taxpayer executed transactions related to the sale of stock, it was, for practical purposes, no longer engaged in wireless operations, and treated the gain on the stock sale as nonbusiness income, none allocated to Oregon. The assets deemed to have been sold were all assets that had been employed in a unitary business operating, in part, in Oregon. In CenturyTel, Inc. v. Dep't of Revenue, 2010 Ore. Tax LEXIS 222 (Or. T.C. Aug. 9, 2010), the court concluded that the gain was apportionable income under § 314.280 and the rules promulgated by the Department pursuant to that statute. Alternatively, the gain was business income under the Department's rules when measured against the statutory language of Or. Rev. Stat. § 314.610. By conceding that it operated a unitary business, the taxpayer also conceded that the assets located outside Oregon bore a constitutionally required relationship to the assets and business operations of the taxpayer's consolidated group located in Oregon.
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