U.S. Bancorp v. Department of Revenue

This dispute concerns the Oregon corporate excise tax liability of U.S. Bancorp (taxpayer) for tax years 1988 through 1992. The primary question before us is whether, during the tax years at issue, the Department of Revenue (department) had authority to require taxpayer to depart from the rule prescribing the standard apportionment formula for financial organizations governed under ORS 314.280, 2 because that formula failed to provide an accurate reflection of taxpayer’s net income from business done within Oregon.

The department assessed additional taxes against taxpayer for tax years 1988…