H-P Ventures, Inc. v. Department of Revenue

CARL N. BYERS, Judge.

The Wasco County assessor determined that certain video tapes owned by taxpayer are not exempt as “inventory” and assessed them as omitted property for the 1991-92 through 1993-94 tax years. Taxpayer appeals from the Department of Revenue’s (department) opinion and order sustaining the omitted property assessments.

FACTS

Taxpayer began operating a small video store in December 1990 in The Dalles. It purchased the bulk of its 2,500 video tapes from a broker in Portland. Ninety percent of the tapes purchased were older movies costing $7.50 and $8.50 each and the remaining 10…