Maginnis v. Department of Revenue

CARL N. BYERS, Judge.

This appeal concerns whether proceeds from the assignment of a state lottery prize are subject to Oregon’s personal income tax. There is no dispute of material facts, and the matter has been submitted to the court on cross motions for summary judgment.

Plaintiffs (taxpayers) are husband and wife. On July 28, 1991, husband won a state lottery prize of $9,000,000, payable in 20 annual installments of $450,000 each. As of the date the prize was awarded, ORS 461.560 1 provided that:

“* * * No state or local taxes shall be imposed upon the sale of lottery tickets or shares of…