Seymour v. Department of Revenue

Taxpayers’ appeal from an Oregon Tax Court decision presents two issues: (1) whether federal income tax law governs Oregon inheritance tax law in view of Article IV, section 32, of the Oregon Constitution1 and (2) whether it is permissible under Oregon statutes to tax as income a gain in value that may also be taxable for Oregon inheritance tax purposes.

The parties stipulated to the following facts. The taxpayers are husband and wife. In May of 1981, wife’s father gave her corporate stock which the father had purchased for $3,100. In March of 1984, wife’s father died. In June of 1984,…