Twentieth Century-Fox Film Corp. v. Department of Revenue

The Department of Revenue (department) appeals the decision of the Tax Court in favor of Twentieth Century Fox (taxpayer). There is one dispositive issue: whether the department proved that the statutory three-factor apportionment formula used to apportion income to Oregon for purposes of corporate excise taxation did not fairly represent the extent of taxpayer’s business activity in this state thus permitting the department to employ a different method.

Taxpayer produces and distributes motion pictures. Its only business activity in Oregon during the years in question was the licensing of…