- Court: Oregon Supreme Court
- Area(s) of Law: Tax Law
- Date Filed: 03-07-2013
- Case #: S059502
- Judge(s)/Court Below: Kistler, J. for the Court; En Banc
CenturyTel, Inc. (CenturyTel) appealed the Tax Court鈥檚 summary judgment in favor of the Department of Revenue (department) and ruling that the capital gain CenturyTel realized from the sale of its wireless assets was apportionable income under ORS 314.280. In 2002, CenturyTel sold its wireless assets and listed the capital gain in its 2002 state income return as 鈥渘onbusiness income,鈥 which is not apportionable to the states in which CenturyTel engages in business. In auditing the return, the department reclassified the gain as apportionable 鈥渂usiness income鈥 under OAR 150-314.280-(B). In its appeal, CenturyTel argued that the department鈥檚 rule for determining 鈥渂usiness income鈥 was inconsistent with the statutory definition of 鈥渂usiness income鈥 found in ORS 314.280 because the rule was too broad. The Court disagreed and held the 鈥渂usiness income鈥 definition found within rule OAR 150-314.280-(B) was reasonable and consistent with its statutory definition. In addition, the Court held that CenturyTel鈥檚 gain was apportionable 鈥渂usiness income鈥 as defined by both the rule and the statute. Affirmed.