Kellogg Sales Co. v. Department of Revenue

CARL N. BYERS, Judge.

Plaintiffs have appealed assessments for Oregon corporation excise taxes and Multnomah County Business Income Taxes for the years 1974 through 1981. The pleadings raised three issues, each of which will be discussed separately.

The first and most significant issue arises from a written agreement entered into between Kellogg Sales Company and defendant’s predecessor, the Oregon State Tax Commission. In order to understand this issue, it is necessary to review some history.

Plaintiff, Kellogg Sales Company (KSC), a Michigan corporation, is a wholly owned subsidiary of Kellogg…