DIRECTV, Inc. v. Department of Revenue

Summary

The Oregon Supreme Court held that DIRECTV’s satellite television services constitute “data transmission services” and therefore are communication services subject to central property assessment under Oregon law. The court relied on its prior decision in Comcast Corp. v. Dept. of Rev., which defined data transmission services to include transmitting data whether supplied by the service provider or a third party. The court reversed the Oregon Tax Court’s decision and remanded for further proceedings.

Holdings

1. DIRECTV's services are data transmission services because they provide the means to send electronically coded data from one computer or computer-like device to another across a transmission network. It is immaterial that DIRECTV owns or licenses the data or transmits it by satellite rather than cable.
2. Because DIRECTV provides data transmission services, it is a communications business whose Oregon property is subject to central assessment under ORS 308.515(1).
3. Remand was required because reversal of the Tax Court's ruling reopened DIRECTV's remaining arguments for consideration; those arguments had been implicitly treated as moot rather than dismissed with prejudice.

Questions Presented

1. Whether DIRECTV's satellite television services constitute data transmission services under ORS 308.505(3).
2. Whether DIRECTV is a communications business whose Oregon property is subject to central assessment under ORS 308.515(1).
3. Whether the case should be remanded for consideration of DIRECTV's remaining arguments after reversal of the Tax Court's general judgment.

Disposition

reversed_and_remanded