Oregon Can Adjust Legal Theory in Apple Apportionment Tax Suit

The state Department of Revenue was allowed to change its legal theory in the middle of a lawsuit to determine how much Apple Inc. owes in corporation excise taxes, the Oregon Tax Court held.

In a previous ruling, the court held that Apple’s subsidiary can exclude service sales from Oregon taxes. The department’s new theory wasn’t detailed in the order but it changed the amount the tax agency sought to $10.47 million, an increase of about $7,700.

• The judgment and tax bill can be adjusted to reflect the arguments based on the changed legal theory, Judge Robert T. Manicke said ...