Auto Adventure Inc v. Multnomah County Assessor

IN THE OREGON TAX COURT
MAGISTRATE DIVISION
Property Tax
AUTO ADVENTURE INC )
and GARY COE, )
)
Plaintiffs, ) TC-MD 150132C
)
v. )
)
MULTNOMAH COUNTY ASSESSOR, )
)
Defendant. ) FINAL DECISION
This Final Decision incorporates without change the court’s Decision, entered
September 24, 2015. The court did not receive a statement of costs and disbursements within 14
days after its Decision was entered. See TCR-MD 16 C(1).
Plaintiffs appealed the tax liability of personal property identified as Account P503861
(subject property) for the 2014-15 tax year. A trial by telephone was held on September 8, 2015.
Plaintiff Gary Coe (Coe) appeared on behalf of Plaintiffs. Lindsay Kandra (Kandra), Assistant
County Attorney, appeared on behalf of Defendant. Kandra did not put on any witnesses,
explaining that the issue was largely a legal question rather than a factual one. No exhibits were
received from Plaintiffs.
I. STATEMENT OF FACTS
Coe testified that Auto Adventure Inc (the company) operated in space leased from a
third party, and had been in operation for a number of years prior to 2014. The parties agreed at
the commencement of trial that the company filed a personal property tax return for the 2014-15
tax year, signed by Plaintiffs’ comptroller on February 28, 2014. (Def’s Ex A at 1-2.) That
return reported 32 assets that were being used by the company. (Id.) Coe testified on cross-
examination that all 32 items listed on page 2 of the personal property return were onsite and in
FINAL DECISION TC-MD 150132C 1
use by Plaintiffs on January 1, 2014. Coe testified that although the personal property was in use
on January 1, 2014, and did have value at that point, most of that property had no value after the
business closed in March of 2014. Coe testified that when the company closed in March, much
of the company’s personal property reported on its return for the tax year at issue was thrown
into a dumpster, although Plaintiffs retained some assets to sell after the company ceased
operating.
Plaintiffs have requested “waiver” of the January 1, 2014, assessment date because the
company was liquidated during March 2014, which is several months before the beginning of the
2014-15 tax year.
II. ANALYSIS
The issue in this case is whether taxpayers who own and use taxable personal property
for business purposes on the assessment date – but cease using and dispose of the property before
the beginning of the tax year – are legally responsible for payment of the taxes. Under
ORS 308.007,1 the “assessment year” is a 12-month calendar year beginning on January 1, but
the “tax year” is a 12-month fiscal year beginning six months later, on July 1.
Assessors are required to assess all personal property for taxation unless a statue
specifically provides otherwise. ORS 308.105(1). That assessment must take place “as of the
day and hour of assessment prescribed by law.” Id. The day and hour so prescribed falls each
year on January 1 at 1:00 a.m. ORS 308.250.
Personal property may be assessed to its owners, its possessors, or both.
ORS 308.105(2). It is assessed to “all persons * * * owning or having possession or control of
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1
The court’s references to the Oregon Revised Statutes (ORS) are to 2013.
FINAL DECISION TC-MD 150132C 2
taxable personal property on January 1, at 1:00 a.m. of the assessment year.”
ORS 308.215(1)(b)(A).
In the present case, the tax year at issue is 2014-15, and therefore the assessment date was
January 1, 2014. See ORS 308.007(1)(a); ORS 308.250. Plaintiffs do not dispute that the
company both owned and possessed the subject property on January 1, 2014. Because all
personal property must be assessed to its owner or possessor unless a statute specifically
provides otherwise, Defendant properly assessed the taxation of the subject property to the
company.
Plaintiffs’ argument hinges on their disposal of the majority of the subject property at
some point between the assessment date and the beginning of the 2014-15 tax year on July 1,
2014. However, Plaintiffs have not identified a statute that specifically exempts personal
property from taxation that has been disposed of after the assessment date but before the
beginning of the tax year, and the court is unaware of such a statute.2
III. CONCLUSION
The court concludes that Defendant properly assessed taxes on the subject personal
property, identified as Account P503861, to Plaintiff Auto Adventure, Inc, the property’s owner
as of the January 1, 2014, assessment date. The fact that Plaintiff Auto Adventure, Inc disposed
of the property before the commencement of the tax year, which started on July 1, 2014, does not
change the outcome. Now, therefore,
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2
Under ORS 308.428, taxpayers may apply to their county assessors to change the assessment date of real
or personal property “destroyed or damaged by fire or act of God” before the commencement of the tax year.
However, Plaintiffs have not alleged that their disposal of the subject property was due to either of these causes.
FINAL DECISION TC-MD 150132C 3
IT IS THE DECISION OF THIS COURT that Plaintiffs’ appeal is denied.
Dated this day of October 2015.
DAN ROBINSON
MAGISTRATE
If you want to appeal this Final Decision, file a Complaint in the Regular
Division of the Oregon Tax Court, by mailing to: 1163 State Street, Salem, OR
97301-2563; or by hand delivery to: Fourth Floor, 1241 State Street, Salem, OR.
Your Complaint must be submitted within 60 days after the date of the Final
Decision or this Final Decision cannot be changed. TCR-MD 19 B.
This document was filed and entered on October 12, 2015.
FINAL DECISION TC-MD 150132C 4