IN THE OREGON TAX COURT
JOHN E. BURAS,
DEPARTMENT OF REVENUE,
STATE OF OREGON,
An initial case management conference was held on June 7, 2001. John E.
Buras participated on his own behalf; Linwood E. Tracy, Jr. provided information for
Plaintiff. Bruce Hale represented the Defendant.
Subsequently, other status calls and conferences were held. The parties were
allowed to submit numerous written arguments and documents.
With the concurrence of the parties, this Decision is based on the pleadings and
current record before the court.
At issue are income tax assessments made for the five tax years: 1995 - 1999.
STATEMENT OF FACTS
Plaintiff is an Oregon resident. For the tax years at issue, he received pension
income from The Motion Picture Industry Pension Plan. There is no disagreement as to
the amount or receipt of these funds.
Plaintiff contends that since the retirement money was paid due to labors
expended while in California, it is unfair for Oregon to tax the distribution of the pension
Oregon imposes a tax on the "taxable income" of every resident. ORS 316.0371.
That taxable income includes pensions such as received by Mr. Buras. IRC 61 and 63.
ORS 316.022. Oregon residents are taxed on all income received, whatever the
source, unless specifically exempted. ORS 316.048. The benefits paid from California
are not specifically exempted by Oregon statutes. Therefore, they are properly taxable
A similar case was presented in Simpson v. Dept. of Rev., 12 OTR 455 (1993),
aff'd per curiam, 318 Or 579, 870 P2d 824 (1994). There, a former resident of Alaska
presented constitutional arguments. The court rejected all those claims and upheld
Oregon's taxation of Alaska retirement benefits. The court, at page 459, stated:
"(b)y moving to Oregon, plaintiffs subjected themselves
to Oregon's sovereign powers and entitled themselves
to participate in its political processes. In doing so, they
placed themselves on equal footing with the other citizens
Plaintiff's claims as to "fairness" are not supported by any citations to relevant
federal or state law.
IT IS THE DECISION OF THE COURT that this appeal must be denied.
All references to the Oregon Revised Statutes are to 1997.
Dated this ___day of April, 2002.
IF YOU WANT TO APPEAL THIS DECISION, FILE A COMPLAINT IN THE REGULAR
DIVISION OF THE OREGON TAX COURT, FOURTH FLOOR, 1241 STATE ST.,
SALEM, OR 97301-2563. YOUR COMPLAINT MUST BE SUBMITTED WITHIN 60
DAYS AFTER THE DATE OF THE DECISION OR THIS DECISION BECOMES FINAL
AND CANNOT BE CHANGED.
THIS DOCUMENT WAS SIGNED BY MAGISTRATE JEFF MATTSON ON APRIL 25,
2002. THE COURT FILED THIS DOCUMENT ON APRIL 25, 2002.