Freightliner Corp. v. Department of Revenue

The plaintiff taxpayer is in the business of manufacturing and assembling heavy-duty, over-the-road trucks and tractors. The principal issue is whether certain automotive parts and materials in the taxpayer’s inventory are within the scope of the Oregon Free Port Act and, therefore, exempt from the assessment of the personal property tax. OBS 307.810 et seq.

All the parts involved come from out of state. They are assembled into a truck in Oregon; the completed truck is then shipped out of state. The parts for which the exemption is claimed are in two categories. In one are such parts as…