Willamette Law Online

Oregon Court of Appeals


3P Delivery, Inc. v. Employment Dept. Tax Section

Summarized by: 

Date Filed: 12-19-2012
Case #: A144953
Wollheim, J. for the Court; Schuman, P.J.; and Nakamoto, J.
Full Text Opinion: http://www.publications.ojd.state.or.us/docs/A144953.pdf

Tax Law: A lease-leaseback arrangement does not constitute furnishable title to qualify for a tax exemption under ORS 657.047(1)(b).

3P Delivery (3PD), an interstate motor carrier, appealed a final order by an administrative law judge (ALJ) which upheld an unemployment tax assessed by the Employment Department. 3PD assigned error to the ALJ finding that the lease-leaseback arrangement which made the vehicle drivers "owner-operators," constituted taxable employment. 3PD argued that they are exempt from the unemployment tax pursuant to ORS 657.047(1)(b) which excludes from the definition of employment drivers under lease to a motor carrier. The Court disagreed with 3PD, finding, as the ALJ did, that the drivers did not have furnishable title to the vehicles to satisfy ORS 657.047(1)(b), because the vehicles were owned by 3PD. Affirmed.