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Oregon Tax Court upholds substantial nexus for banks lacking in-state physical presence

On Dec. 23, 2016, the Oregon Tax Court held that two out-of-state financial institution corporations had substantial nexus in Oregon and were subject to either the corporate income tax or excise tax. The financial institutions did not have a physical presence in Oregon, but purposefully solicited Oregon customers, extended credit, loaned money, pursued collections and utilized the court system in Oregon. The Court determined that subjecting the financial institutions to taxation in Oregon did not violate the Commerce Clause.