Kellogg Sales Co. v. Department of Revenue

Taxpayers appeal a decision of the Oregon Tax Court sustaining assessments of Oregon corporation excise taxes and Multnomah County Business Income Taxes for the years 1974 to 1981. The disagreement concerns the meaning of the phrase “Oregon portion of company net income” in a 1962 agreement settling a dispute between Kellogg Sales Company (KSC) and defendant’s predecessor, the Oregon State Tax Commission, over the apportionment of KSC income to Oregon during the years 1955 to 1959.

KSC is the sales arm of Kellogg Company. It is separately incorporated but has no storage facilities of its own,…