ORS 305.419¹
Tax, penalty and interest payable before appeal
  • how determined
  • waiver
  • refund

(1) Except as provided in subsection (3) of this section, in any appeal from an order, act, omission or determination of the Department of Revenue involving a deficiency of taxes imposed upon or measured by net income, the tax assessed, and all penalties and interest due, shall be paid to the department on or before the filing of a complaint with the regular division of the Oregon Tax Court under ORS 305.560 (Appeals procedure generally) or before a complaint specially designated for hearing in the regular division under ORS 305.501 (Appeals to tax court to be heard by magistrate division) is heard. The complaint shall be filed as a claim for refund.

(2) Penalty and interest due under subsection (1) of this section are the amounts stated in the order, notice of assessment, notice of refund denial or proposed adjustment under ORS 305.270 (Refund of excess tax paid) by the department from which the appeal is taken.

(3) Where payment of the tax, penalties and interest would be an undue hardship, plaintiff may file an affidavit alleging undue hardship with the complaint. If the tax court finds undue hardship, the tax court judge may stay all or any part of the payment of tax, penalty and interest required under subsection (1) of this section. If the tax court judge finds no undue hardship, the tax court judge may grant the plaintiff up to 30 days from the date of determination to pay the taxes, penalties and interest. Failure by the plaintiff to pay the taxes, penalties and interest or to establish undue hardship will be cause for dismissing the complaint.

(4) If, in any appeal to the Oregon Tax Court for which payment of tax, penalty and interest assessed is required before filing of a complaint, the tax court orders that all or any part of the amount paid be refunded by the department, the amount so ordered to be refunded shall bear interest at the rate established for refunds in ORS 305.220 (Interest on deficiency, delinquency or refunds). Interest shall be computed from the date of payment to the department. [1982 s.s.1 c.29 §§2, 3; 1985 c.407 §1; 1995 c.650 §17; 1997 c.872 §19]

Notes of Decisions

Taxpayer's failure to pay taxes assessed and all penalties and interest due on or before filing complaint constituted jurisdic­tional defect. Leffler Industries v. Dept. of Revenue, 299 Or 481, 704 P2d 97 (1985); Lowry v. Dept. of Revenue, 15 OTR 221 (2000)

Chapter 305

Notes of Decisions

Policy of efficient and effective tax collec­tion makes doctrine of estoppel against govern­ment in tax cases one of rare applica­tion. Pacific Conference v. Dept. of Rev., 7 OTR 429 (1978)

Law Review Cita­tions

9 WLJ 193-260 (1973)

1 Legislative Counsel Committee, CHAPTER 305—Administration of Revenue and Tax Laws; Appeals, https://­www.­oregonlegislature.­gov/­bills_laws/­Archive/­2007ors305.­pdf (2007) (last ac­cessed Feb. 12, 2009).
2 Legislative Counsel Committee, Annotations to the Oregon Revised Stat­utes, Cumulative Supplement - 2007, Chapter 305, https://­www.­oregonlegislature.­gov/­bills_laws/­ors/­305ano.­htm (2007) (last ac­cessed Feb. 12, 2009).
3 OregonLaws.org assembles these lists by analyzing references between Sections. Each listed item refers back to the current Section in its own text. The result reveals relationships in the code that may not have otherwise been apparent. Currency Information