Time Warner Networks Are Taxable in Oregon as ‘Broadcasters’

HBO, CNN, and five other Time Warner Inc. affiliates qualify as interstate broadcasters with sufficient connections to Oregon to warrant the imposition of corporate excise tax, a state magistrate ruled.

Time Warner challenged the state’s tax assessment for 2011-2013, arguing the networks aren’t broadcasters subject to the state’s special apportionment formula and don’t have sufficient nexus with the state under the US Constitution’s due process and commerce clauses. The Oregon Department of Revenue’s conclusions on those points resulted in an apportionment of income to the state that doesn’t fairly represent the company’s business activity there, Time Warner argued.

Oregon Tax ...