Oregon Revised Statutes

Or. Rev. Stat. § 305.620 (2026)

Collection and distribution of local taxes on income and sales; costs; court review of determinations and orders; appeals

✓ current as of May 2026
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      305.620 Collection and distribution of local taxes on income and sales; costs; court review of determinations and orders; appeals. (1)(a) Any state agency or department may enter into agreements with any political subdivision of this state for the collection, enforcement, administration and distribution of local taxes of the political subdivision imposed upon or measured by gross or net income, wages or net earnings from self-employment, local general sales and use taxes, local transient lodging taxes or taxes imposed under ORS 475C.453.

      (b) Notwithstanding ORS 314.835, a local government may disclose payment distribution amounts made pursuant to an agreement under this subsection to collect taxes imposed under ORS 475C.453.

      (2) The department or agency shall prescribe the rules by which the agreements entered into under subsection (1) of this section are administered.

      (3) The department or agency shall prescribe the rules by which the taxes described by subsection (1) of this section are administered, collected, enforced and distributed.

      (4) A political subdivision may appear as an intervenor at any conference held by the Department of Revenue or conference, hearing or proceeding held by another department or agency in connection with a local tax administered by the department or agency. The political subdivision may be represented by its own counsel. The department or agency shall adopt rules governing the procedures to be followed by the political subdivision in making an appearance.

      (5) Costs incurred by the department or agency in the administration, enforcement, collection and distribution of taxes under the agreements entered into under subsection (1) of this section shall be first deducted from the taxes collected before distribution is made to the political subdivision which is a party to the agreement.

      (6) The Oregon Tax Court shall have exclusive jurisdiction to review determinations of the Department of Revenue or orders of another department or agency relating to the collection, enforcement, administration and distribution of local taxes under agreements entered into under subsection (1) of this section.

      (7) A proceeding for refund or to set aside additional taxes or taxes assessed when no return was filed may be initiated before the state agency or department.

      (8) An appeal from a determination or an order may be taken by the taxpayer or by the political subdivision whose taxes are in issue, by filing a complaint with the clerk of the Oregon Tax Court at its principal office in Salem, Oregon, within 60 days after the notice of the determination of the Department of Revenue or the order of the department or agency is sent to the taxpayer or the political subdivision. The filing of the complaint in the Oregon Tax Court shall constitute perfection of the appeal. Service of the taxpayer’s complaint shall be accomplished by the clerk of the tax court by filing a copy of the complaint with the administrative head of the department or agency and a copy with the political subdivision. Service of the political subdivision’s complaint shall be accomplished by the clerk of the tax court by filing a copy of the complaint with the administrative head of the department or agency and mailing a copy of the complaint to the taxpayer. The complaint of a taxpayer shall be entitled in the name of the person filing as plaintiff and the department or agency as defendant. The complaint of a political subdivision shall be entitled in the name of the political subdivision as plaintiff and the taxpayer and the department or agency as defendants. A copy of the order of the department or agency shall be attached to the complaint. All procedures shall be in accordance with ORS 305.405 to 305.494. [1967 c.550 §§12,13,14,15; 1969 c.574 §5; 1971 c.261 §1; 1971 c.600 §3; 1973 c.98 §1; 1983 c.749 §4; 1985 c.407 §3; 1995 c.79 §112; 1995 c.650 §62; 1997 c.325 §15; 1999 c.21 §12; 2003 c.621 §78; 2005 c.225 §7; 2005 c.345 §10; 2009 c.33 §7; 2016 c.24 §32; 2017 c.74 §1; 2018 c.103 §1]

Notes of Decisions
Cited in 88 cases, 1972–2020 · leading case: Perkins v. Dept. of Rev., 22 Or. Tax 370 (Or. T.C. 2017).
Perkins v. Dept. of Rev., 22 Or. Tax 370 (Or. T.C. 2017). · cites it 3× “11 Second, ORS 305.620(1) provides that state agencies (including the department) and political subdivisions of the 11 At which time, the debtor may make any appropriate arguments as exist and are appropriate under that state’s laws, including exemptions.”
Jarvill v. City of Eugene, 613 P.2d 1 (Or. 1980). · cites it 2× “See ORS 305.620. Also, when a local tax levy is made contrary to the state local budget law (ORS 294.”
Nw. All. for Mkt. Equality v. Dep't of Revenue, 862 P.2d 1300 (Or. 1993). · cites it 2× ““(2) A taxpayer or political subdivision affected by an order of the Department of Revenue authorized under ORS 305.620 [distribution of local income and sales taxes by agreement between state and local governments] may appeal to the Oregon Tax Court as provided in ORS 305.”
Atkins v. Dep't of Revenue, 894 P.2d 449 (Or. 1995). · cites it 2× “100, if the amount of the tax shown as due on a report or return originally filed with the department with respect to a tax imposed under ORS chapter * * * 316 * * * or collected pursuant to ORS 305.620, or as corrected by the department, is less than the amount theretofore…”
Ragsdale v. Dep't of Revenue, 823 P.2d 971 (Or. 1992). “100, if the amount of the tax shown as due on a report or return originally filed with the department with respect to a tax imposed under ORS chapter 118,119, 308, 310, 314, 316, 317, 318 or 321, or collected pursuant to ORS 305.620, or as corrected by the department, is less…”
Bogdanski v. City of Portland, 21 Or. Tax 341 (Or. T.C. 2014). · cites it 2× “Accordingly, disputes about the Arts Tax do not arise under the tax laws of the State of Oregon and, all par- ties agreeing that there is no jurisdictional basis under ORS 305.620, this court has no jurisdiction over disputes about the Arts Tax.”
Comcast Corp. II v. Dept. of Rev. (TC 5265), 24 Or. Tax 250 (Or. T.C. 2020). “623 or from any notice of assess- ment or refund denial issued by the Department of Revenue with respect to a tax imposed under ORS chapter 118, 308, 308A, 310, 314, 316, 317, 318, 321 or this chapter, or collected pursuant to ORS 305.620, shall be filed within 90 days after the…”
Lucas v. Dep't of Revenue, 17 Or. Tax 9 (Or. T.C. 2003). “992 provides: “(1) If any returns required to be filed under ORS chapter 118, 314, 316, 317, 318, 321 or 323 or under a local tax administered by the Department of Revenue under ORS 305.620 are not filed for three consecutive years by the due date (including extensions) of the…”
Portland Distrib. Co. v. Dep't of Revenue, 763 P.2d 1189 (Or. 1988). “We hold that the MCBIT is not imposed in connection with any of the activities listed in ORS 473.190. ORS 473.190 does not preempt the MCBIT, and the plaintiff is not entitled to recover the deficiency assessment.”
Stan Wiley, Inc. v. Dep't of Revenue Tri-Cnty. Metro. Transit Dist., 9 Or. Tax 399 (Or. T.C. 1984). · cites it 3× “” Thereafter, pursuant to ORS 305.620(1), the defendant entered into an agreement with Tri-Met “for the collection, enforcement, administration and distribution of local taxes imposed upon or measured by * * * wages.”
Pacificorp v. Dept. of Energy, 21 Or. Tax 116 (Or. T.C. 2013). “See ORS 305.620. In each case, actions of the legislature have altered what might otherwise have been a conclusion derived from the basic statement of jurisdiction found in ORS 305.”
Union Pac. R.R. v. Dep't of Revenue, 10 Or. Tax 235 (Or. T.C. 1986). “690, required in the administration of any local tax pursuant to ORS 305.620, or required under a law imposing a tax upon or measured by net income.”
— Or. Rev. Stat. § 305.620(1) — 5 cases
Perkins v. Dept. of Rev., 22 Or. Tax 370 (Or. T.C. 2017). “11 Second, ORS 305.620(1) provides that state agencies (including the department) and political subdivisions of the 11 At which time, the debtor may make any appropriate arguments as exist and are appropriate under that state’s laws, including exemptions.”
Portland Distrib. Co. v. Dep't of Revenue, 763 P.2d 1189 (Or. 1988). “We hold that the MCBIT is not imposed in connection with any of the activities listed in ORS 473.190. ORS 473.190 does not preempt the MCBIT, and the plaintiff is not entitled to recover the deficiency assessment.”
Stan Wiley, Inc. v. Dep't of Revenue Tri-Cnty. Metro. Transit Dist., 9 Or. Tax 399 (Or. T.C. 1984). “” Thereafter, pursuant to ORS 305.620(1), the defendant entered into an agreement with Tri-Met “for the collection, enforcement, administration and distribution of local taxes imposed upon or measured by * * * wages.”
Feist v. Dep't of Revenue, 18 Or. Tax 471 (Or. T.C. 2003).
Multnomah Kennel Club v. Dep't of Revenue, 9 Or. Tax 183 (Or. T.C. 1982).
— Or. Rev. Stat. § 305.620(3) — 1 case
Stan Wiley, Inc. v. Dep't of Revenue Tri-Cnty. Metro. Transit Dist., 9 Or. Tax 399 (Or. T.C. 1984). “” Thereafter, pursuant to ORS 305.620(1), the defendant entered into an agreement with Tri-Met “for the collection, enforcement, administration and distribution of local taxes imposed upon or measured by * * * wages.”
— Or. Rev. Stat. § 305.620(6) — 1 case
Perkins v. Dept. of Rev., 22 Or. Tax 370 (Or. T.C. 2017). “11 Second, ORS 305.620(1) provides that state agencies (including the department) and political subdivisions of the 11 At which time, the debtor may make any appropriate arguments as exist and are appropriate under that state’s laws, including exemptions.”
— Or. Rev. Stat. § 305.620(8) — 1 case
Lane Transit Dist. v. Peacehealth, 17 Or. Tax 364 (Or. T.C. 2004).
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