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Oregon Judicial Department Appellate Court Opinions
IN THE OREGON TAX COURT
MAGISTRATE DIVISION
ROBERT KINTZ,
dba A1 PREFERRED CLEANING AND RESTORATION,
Plaintiff,
v.
WASHINGTON COUNTY ASSESSOR,
Defendant.
(TC-MD 021123A)

Plaintiff appealed the assessment of 100 percent penalties for failing to file timely personal property returns for the 1999-2000 and 2000-01 tax years. Plaintiff asked the court to modify the penalties because he was unaware of the need to file personal property returns and he filed the returns as soon as he learned of the requirement. Finding there was not good and sufficient cause for the failure to file timely returns, the court held it lacked discretion to modify the penalties.
Property Taxation - Personal Property - Penalties
1. The version of ORS 308.296 in effect during 1999 doubled the personal property tax due if the return was filed after August 1.
Property Taxation - Personal Property - Penalties
2. A revision of ORS 308.296 lowered the penalty to 50 percent of the amount of tax. However, that change was limited to penalties imposed for the failure to file returns due on or after January of 2001.
Property Taxation - Personal Property - Penalties - Good and Sufficient Cause
3. ORS 305.422 permits the Tax Court, in appeals under ORS 311.223(4), to waive the liability for all or a portion of the penalty upon a showing of "good and sufficient cause."
Property Taxation - Personal Property - Penalties - Good and Sufficient Cause
4. The term "good and sufficient cause" has never been interpreted to include instances where a taxpayer was unaware of the need to meet his, her, or its obligations. The great weight of precedent bears against the conclusion that lack of knowledge may be construed as good and sufficient cause.
Property Taxation - Personal Property - Penalties - Good and Sufficient Cause
5. At OAR 150-305.145(3)-(A) "good and sufficient cause" includes instances where a failure to file returns was due to incorrect professional advice. On the facts presented, taxpayers advisors were silent on the matter of personal property taxes and silence does not rise to the level of "advice" repeatedly mentioned in the administrative rule.
Property Taxation - Personal Property - Penalties - Good and Sufficient Cause
6. In seven other tax statues where "good and sufficient cause" occurs it has long been limited to instances where the
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Oregon Judicial Department Appellate Court Opinions
failure was due to instances beyond the control of the taxpayer, such as death or serious illness; unavoidable and unforseen absence; lapses in the assessor's performance of his or her duties; or fire, disaster, or other casualty.
A telephone trial was held October 29, 2002.
Robert Kintz, Plaintiff, argued the cause pro se.
Kathleen Southwick, Washington County, argued the cause for Defendant.
Decision for Defendant rendered December 27, 2002.
SCOT A. SIDERAS, Magistrate.
At issue is the assessment of penalties for failing to file a personal property tax return when due for the 1999-2000 and 2000-2001 tax years. The property is identified by Account P2108515. Robert Kintz (Kintz) appeared and made his arguments. Washington County was represented by Kathleen Southwick.
I. STATEMENT OF FACTS
A1 Preferred Cleaning and Restoration is a new business. During its incubation, Kintz turned to three different accountants and two business coaches for assistance. It was not until November of 2001 that one of them, in response to a query by Kintz, told him of the need to file a personal property tax return.
Kintz, upon learning of his responsibility, promptly contacted Washington County and filed returns. Washington County, upon receiving the returns, imposed a 100 percent penalty for the 1999-2000 and 2000-2001 tax years.
II. ANALYSIS
Once Kintz discovered that he had a duty to pay taxes upon his business property, he immediately did so. There was no intent to evade the tax. Under these circumstances should Washington County be required to impose, for each year, a penalty equal to the tax?
1-3. That is definitely what the version of ORS 308.296 (1) in effect during the time these returns were due dictates. By its terms, it doubles the tax if the return is filed after August 1. ORS 308.296(4). A subsequent revision of the statute lowered this penalty to 50 percent of the amount of tax. Or Laws 2001, ch 925,

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Oregon Law