ORS 305.437¹
Damages for frivolous or groundless appeal or appeal to delay

(1) Whenever it appears to the Oregon Tax Court that proceedings before it have been instituted or maintained by a taxpayer primarily for delay or that the taxpayer’s position in such proceeding is frivolous or groundless, damages in an amount not to exceed $5,000 shall be awarded to the Department of Revenue by the Oregon Tax Court in its judgment. Damages so awarded shall be paid within 10 days after the judgment becomes final. If the damages remain unpaid, the department may collect the amount awarded in the same manner as income taxes are collected under ORS 314.430 (Warrant for collection of taxes).

(2) As used in this section, a taxpayer’s position is "frivolous" if there was no objectively reasonable basis for asserting the position. [1987 c.843 §4; 1995 c.650 §6a]

Notes of Decisions

Damages were properly imposed against taxpayer under this sec­tion where taxpayer's posi­tion was "groundless" in that: (1) no evidence was offered that, if believed, would support a finding and resulting judg­ment for taxpayer; and (2) there was no caselaw, statute, rule or regula­tion that supported taxpayer's claim to relief. Detrick v. Dept. of Rev., 311 Or 152, 806 P2d 682 (1991)

Court may award damages under this sec­tion and attorney fees under ORS 20.105 (Attorney fees where party disobeys court order or asserts claim, defense or ground for appeal without objectively reasonable basis) in same case. Sesma v. Dept. of Revenue, 16 OTR 29 (2002)

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