Klamath Irrigation District v. Employment Division

The central issue in this case is whether peti*71tioner is entitled to an exemption under ORS 657.045(1) and (2)(c) from payments in lieu of taxes required by ORS 657.505(6) of the Employment Division Law.

For exemption, petitioner relies solely on ORS 657.045(1) and (2) (c) which exempts services performed

“* * * in connection with the operation or maintenance of ditches, canals, reservoirs or waterways not owned or operated for profit used exclusively for supplying and storing water for farming purposes.” (Emphasis supplied.)

Two questions arise: First, what does “exclusively” mean? Second, does…