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California Company Owes Service Tax on Oregon Phone Lines (1)

Dec. 27, 2021, 8:09 PMUpdated: Dec. 27, 2021, 9:49 PM

Internet phone service provider Ooma Inc. intentionally accessed the Oregon market to attract customers and must collect and remit a tax for emergency services placed on each of its phone lines in the state, the Oregon Supreme Court said.

The California company owes the tax of 75 cents per line per month on $2.2 million in revenue it generated between January 2013 and March 2016, when it had between 6,633 and 13,467 Oregon customers. The court rejected Ooma’s argument that the Department of Revenue’s tax violated the Due Process Clause and Commerce Clause of the U.S. Constitution ...