Crystal Communications, Inc. v. Department of Revenue

The primary question in this case is whether the Oregon Department of Revenue (the department) properly classified income resulting from the sale of Crystal Communication’s assets as “business income.” Crystal operated as a multistate business providing wireless cellular telecommunications services and, in the relevant tax years, sold its assets related to those services. It reported the gain from the asset sale as “nonbusiness income” and allocated that gain to Florida, its state of commercial domicile. See OAR 150-314.280-(D). On audit, the department reclassified the gain as apportionable…