305.220
Interest on deficiency, delinquency or refunds; adjustments in rates; rules;
computation. (1)
Unless specifically provided otherwise by statute or by rule of the Director of
the Department of Revenue adopted pursuant to subsection (3) of this section,
every deficiency or delinquency arising under any law administered by the
Department of Revenue shall bear simple interest at the rate of 10 percent per
annum, to be computed on a daily basis.
(2) Unless
specifically provided otherwise by statute or by rule of the director adopted
pursuant to subsection (3) of this section, every refund arising under any law
administered by the department shall, subject to subsections (3) and (5) of
this section and ORS 305.222, bear simple interest at the rate of 10 percent
per annum, to be computed on a daily basis.
(3)(a) If the
director determines that the rates of interest for deficiencies, delinquencies
and refunds established in subsections (1) and (2) of this section are at least
one percentage point more or less than the prevailing rates of interest
established by the Internal Revenue Service for underpayments arising under the
federal tax laws to which one percentage point has been added, the director may
adopt, by rule, adjusted interest rates. The director shall not adopt adjusted
interest rates more than once in a calendar year. Notice of intent to adopt
adjusted interest rates shall be given in the manner provided in ORS 183.335,
not less than three months before the proposed effective date of the adjusted
rates.
(b) In
establishing the adjusted interest rates to be adopted under this subsection:
(A) The director
shall take into consideration the current interest rates established by the
Internal Revenue Service for underpayments arising under the federal tax laws.
(B) To any
interest amount determined by taking into consideration the current interest
rates established by the Internal Revenue Service for underpayments under
subparagraph (A) of this paragraph, which interest amount shall be expressed at
a rate per annum, there shall be added one percent.
(4) If the
director adopts an adjusted interest rate for deficiencies and delinquencies,
the director shall adopt an adjusted interest rate for refunds that is equal to
the adjusted interest rate for deficiencies and delinquencies.
(5) Any change in
the rate of interest applicable to deficiencies, delinquencies or refunds
resulting from the adoption of adjusted interest rates by the director under
this section shall apply to deficiencies, delinquencies and refunds outstanding
on the effective date of the rule, or arising on or after that date, but only
with respect to interest periods beginning on or after that date. [1982 s.s.1
c.16 §2; 1987 c.647 §5; 2001 c.114 §§2,4; 2017 c.278 §3]
Notes of Decisions
Thomas Creek Lumber & Log Co. v. Dep't of Revenue, 178 P.3d 217 (Or. 2008).
· cites it 34× “The department applied the interest rate established under ORS 305.220 2 for the first 60 days of each deficiency and, for periods beyond 60 days, an interest rate that was one-third of one percent per month higher than that rate, pursuant to the penalty interest rate statute,…”
Ragsdale v. Dep't of Revenue, 823 P.2d 971 (Or. 1992).
“270 that the amount of the tax due is less than the amount theretofore paid, the excess shall be refunded by the department with interest at the rate established under ORS 305.220, for each month or fraction of a month during a period beginning 45 days after the due date of the…”
Okorn v. Dep't of Revenue, 818 P.2d 928 (Or. 1991).
“190, and to adjust interest rates for deficiencies, delinquencies, and refunds under specified circumstances, ORS 305.220.”
Log Co. v. Dept. of Rev., 19 Or. Tax 259 (Or. T.C. 2007).
“560 (6) states that the interest rate is to be that established by ORS 305.220(1)"a singular rate. Taxpayer also asserts that the department improperly relied on ORS 321.”
Lucas v. Dep't of Revenue, 17 Or. Tax 9 (Or. T.C. 2003).
“265(13) provides: “Every deficiency shall hear interest at the rate established under ORS 305.220 for each month or fraction of a month computed from the due date of the return to date of payment.”
Fields v. Dep't of Revenue, 10 Or. Tax 458 (Or. T.C. 1987).
· cites it 2× “270 that the amount of the tax due is less than the amount theretofore paid, the excess shall be refunded by the department with interest at the rate established under ORS 305.220, for each month or fraction of a month during a period beginning four months after the due date of…”
ABC Inc. & Combined Affiliates v. Dept. of Rev. (Or. T.C. 2025).
· cites it 10× “222(1) (emphasis added) provides: “In the case of a refund of tax ordered by the Oregon Tax Court or the Oregon Supreme Court and arising under any law administered by the Department of Revenue, if the refund is not paid by the department within 60 days after the date of the…”
Gorin v. Dep't of Revenue (Or. T.C. 2014).
· cites it 6× “992(1) for failure to file Oregon state returns for three consecutive years; (2) the penalty under Senate Bill (SB) 880 (2009), or Oregon Laws 2009, chapter 710, section 4, for failure to participate in the 2009 tax amnesty program;2 and (3) interest under ORS 305.220. (Def’s…”
Lynott v. Dept. of Rev. (Or. T.C. 2025).
· cites it 3× “Plaintiffs’ arguments under state statute Plaintiffs argue that Defendant’s offset of their 2023 state tax refund violated state statute, specifically ORS 293.”
Tektronix, Inc. II v. Dept. of Rev., 22 Or. Tax 12 (Or. T.C. 2014).
· cites it 5× “Relevant to the current dispute, it also provided (in provisions that will be referred to as the Interest Paragraph): “Post-judgment interest shall be owed on the entire money judgment at the rate established under ORS 305.220 beginning the date this judgment is entered.”
Ooma v. Dept. of Rev. (Or. T.C. 2018).
· cites it 2× “The department, by letter filed March 30, 2018, requested the court’s final decision affirm that—in addition to its total tax—Ooma owes “statutory interest thereon under ORS 305.220 computed from the due date of the return for each applicable period, and $299,175.”
— Or. Rev. Stat. § 305.220(1) — 7 cases
Thomas Creek Lumber & Log Co. v. Dep't of Revenue, 178 P.3d 217 (Or. 2008).
“The department applied the interest rate established under ORS 305.220 2 for the first 60 days of each deficiency and, for periods beyond 60 days, an interest rate that was one-third of one percent per month higher than that rate, pursuant to the penalty interest rate statute,…”
Log Co. v. Dept. of Rev., 19 Or. Tax 259 (Or. T.C. 2007).
“560 (6) states that the interest rate is to be that established by ORS 305.220(1)"a singular rate. Taxpayer also asserts that the department improperly relied on ORS 321.”
ABC Inc. & Combined Affiliates v. Dept. of Rev. (Or. T.C. 2025).
“222(1) (emphasis added) provides: “In the case of a refund of tax ordered by the Oregon Tax Court or the Oregon Supreme Court and arising under any law administered by the Department of Revenue, if the refund is not paid by the department within 60 days after the date of the…”
— Or. Rev. Stat. § 305.220(2) — 3 cases
Thomas Creek Lumber & Log Co. v. Dep't of Revenue, 178 P.3d 217 (Or. 2008).
“The department applied the interest rate established under ORS 305.220 2 for the first 60 days of each deficiency and, for periods beyond 60 days, an interest rate that was one-third of one percent per month higher than that rate, pursuant to the penalty interest rate statute,…”
Tektronix, Inc. II v. Dept. of Rev., 22 Or. Tax 12 (Or. T.C. 2014).
“Relevant to the current dispute, it also provided (in provisions that will be referred to as the Interest Paragraph): “Post-judgment interest shall be owed on the entire money judgment at the rate established under ORS 305.220 beginning the date this judgment is entered.”
— Or. Rev. Stat. § 305.220(3) — 1 case
Thomas Creek Lumber & Log Co. v. Dep't of Revenue, 178 P.3d 217 (Or. 2008).
“The department applied the interest rate established under ORS 305.220 2 for the first 60 days of each deficiency and, for periods beyond 60 days, an interest rate that was one-third of one percent per month higher than that rate, pursuant to the penalty interest rate statute,…”
Annotations are extracted automatically from the opinions in the
Syfert caselaw corpus and ranked by authority, recency, and
treatment. Dots show Syfertize treatment of the citing case itself.