Thomas Creek Lumber & Log Co. v. Department of Revenue, 344 Or. 131

Summary

The Oregon Supreme Court held that the Department of Revenue properly applied the penalty interest rate under ORS 305.222(2) to timber-tax deficiencies that remained unpaid more than 60 days after notice of assessment. The court concluded that ORS 305.222 specifically provides a higher rate for purposes of determining the rate under ORS 305.220 and rejected the taxpayer’s interpretation because it would render ORS 305.222(2) ineffective. The court affirmed the Oregon Tax Court’s decision.

Holdings

1. ORS 305.222(2) specifically provides otherwise from the ordinary rate in ORS 305.220(1) and therefore authorizes the Department of Revenue to apply the one-third-of-one-percent-per-month higher interest rate to deficiencies and delinquencies beginning 61 days after the notice of assessment.

Questions Presented

1. Whether ORS 305.222(2) authorizes the Department of Revenue to apply a penalty interest rate to timber-tax deficiencies that remain unpaid more than 60 days after notice of assessment.
2. Whether the reference in ORS 305.220(2) to ORS 305.222, coupled with the absence of an express reference in ORS 305.220(1), excludes the penalty interest rate from deficiencies and delinquencies.

Disposition

affirmed