Detail, Mount Hood sunset photo, courtesy Miles Hochstein / Portland Ground.





Meter updates every 30 seconds. Click here for
an instant update.
Our complete Portland debt series linked here.



Clearance sale
The bojack bumper sticker -- only $1.50!

To order, click here.









Excellent tunes -- free! And on your browser right now. Just click on Radio Bojack!






E-mail us here.

About

This page contains a single entry from the blog posted on September 8, 2010 8:40 AM. The previous post in this blog was Beisbol be berry, berry gone long time. The next post in this blog is Make me do right, or make me do wrong. Many more can be found on the main index page or by looking through the archives.

Links

Law and Taxation
How Appealing
Bag and Baggage
TaxProf Blog
Mauled Again
A Taxing Matter
TaxVox
Tax.com
Josh Marquis
Native America, Discovered and Conquered
The Yin Blog
OrCon Law
Ernie the Attorney
Conglomerate
Above the Law
The Volokh Conspiracy
Going Concern
Wealth Strategies Journal
Jim Hamilton's World of Securities Regulation
myCorporateResource.com
World of Work
The Faculty Lounge
Lowering the Bar

Hap'nin' Guys
Tony Pierce
Parkway Rest Stop
Utterly Boring.com
Dwight Jaynes
Bob Borden
Dingleberry Gazette
The Red Electric
Iced Borscht
Positively Glorious
The Rural Bus Route
Another Blogger
OregonGuy
The World of Today
Izzle Pfaff
Jeremy Blachman
Dean's Rhetorical Flourish
Straight White Guy
Lost in the Details
Penultimate Life
HinesSight
Onfocus
AntSaint
Jalpuna
MTPolitics
Rise Above
Beerdrinker.org
As Time Goes By
Dave Wagner
Jeff Selis
Alas, a Blog
Whitman Boys
Misterblue
Two Pennies
Scott Hendison
Sansego
The View Through the Windshield
Mikeyman's Computer Treehouse
Appliance Blog
The Bleat
Rosenblog

Hap'nin' Gals
My Whim is Law
Lelo in Nopo
Attorney at Large
Linda Kruschke
The Non-Consumer Advocate
10 Steps to Finding Your Happy Place
A Pig of Success
Attorney at Large
Margaret and Helen
Kimberlee Jaynes
Cornelia Seigneur
Evidently
And Sew It Goes
Mile 73
Rainy Day Thoughts
That Black Girl
Posie Gets Cozy
{AE}
Cat Eyes
Kerianne
Melissa Lion
Rhi in Pink
Althouse
GirlHacker
Ragwaters, Bitters, and Blue Ruin
Heather Bea
Gina Rau
Chantel Williams
Frytopia
I Count to 4 (Nth of Pril)
Rose City Journal
Ready or Not
Lao Ocean Girl
Type Like the Wind

Portland and Oregon
Isaac Laquedem
StumptownBlogger
Rantings of a [Censored] Bus Driver
Jeff Mapes
Another Portland Blog
The Portlander
Gail Achterman
South Waterfront
Amanda Fritz
O City Hall Reporters
Guilty Carnivore
Old Town by Larry Norton
The Alaunt
Bend Blogs
Lost Oregon
Cafe Unknown
Tin Zeroes
David's Oregon Picayune
Mark Nelsen's Weather Blog
Travel Oregon Blog
Portland Housing Blog
Portland Daily Photo
Portland Building Ads
Portland Food and Drink.com
Dave Knows Portland
Idaho's Portugal
Alameda Old House History
MLK in Motion
LoveSalem

Retired from Blogging
Various Observations...
The Daily E-Mail
Saving James
Portland Freelancer
Furious Nads (b!X)
The Grich
Kevin Allman
AboutItAll - Oregon
Worldwide Pablo
Tales from the Stump
This Stony Planet
1221 SW 4th
Twisty
I am a Fish
Here Today
What If...?
Superinky Fixations
Pinktalk
Mellow-Drama

Wonderfully Wacky
Dave Barry
Borowitz Report
Blort
Stuff White People Like
Probably Bad News
The Dullest Blog in the World
Worst of the Web
The Ultimate Insult
Scrabo's Mad World
Lancow's E-mail

Valuable Time-Wasters
My Gallery of Jacks
Litterbox, On the Prowl
Litterbox, Bag of Bones
Litterbox, Scratch
Maukie
Ride That Donkey
Singin' Horses
Rally Monkey
Simon Swears
Strong Bad's E-mail

Oregon News
KGW-TV
The Oregonian
Portland Tribune
KOIN
Willamette Week
KATU
The Sentinel
Southeast Examiner
Northwest Examiner
Sellwood Bee
Mid-County Memo
Vancouver Voice
Eugene Register-Guard
OPB
Topix.net - Portland
Salem Statesman-Journal
Oregon Capitol News
Portland Business Journal
Daily Journal of Commerce
Oregon Business
KPTV
Portland Info Net
McMinnville News Register
Lake Oswego Review
The Daily Astorian
Bend Bulletin
Corvallis Gazette-Times
Roseburg News-Review
Medford Mail-Tribune
Ashland Daily Tidings
Newport News-Times
Albany Democrat-Herald
The Eugene Weekly
Portland IndyMedia
The Columbian

Music-Related
The Beatles
Bruce Springsteen
Seal
Sting
Joni Mitchell
Ella Fitzgerald
Steve Earle
Joe Ely
Stevie Wonder
Lou Rawls

E-mail, Feeds, 'n' Stuff

Wednesday, September 8, 2010

Did Dudley really live in Washington?

The flap over GOP gubernatorial candidate Chris Dudley's avoidance of Oregon income taxes while a pro basketball player takes a wicked turn today, as Willamette Week's intrepid muckraker, Nigel Jaquiss, insinuates that Dudley may have in fact underpaid his Oregon income taxes, as opposed to legally avoiding them.

Jaquiss suggests that although he bought a home in Camas, Washington, Dudley, who also continued to own a home in Northwest Portland out toward Kyronland, might have still been an Oregon resident for tax purposes. Dudley, of course, claimed that his domicile for tax purposes was in Washington. Even Jaquiss admits that tax residency can be a tough call sometimes, but the question he's raising is potentially quite troublesome, and WW, which will surely endorse Kitzhaber come November, isn't shy about asking it.

As a tax lawyer, I find it interesting that the electorate is being treated to such a prolonged inquiry into Dudley's state tax situation from well over than a decade ago. Apparently, he isn't giving the Kitzhaber camp much else to shoot at. Meanwhile, the criminal investigation into state contracts held by Kitz's significant other passed onto and off of the news pages in a couple of days. That little problem is a lot more current, a lot more relevant, and a lot more serious.

Comments (28)

No surprise at all that the ultra-liberal portland press hammers on meaningless little factoids about the scary republican candidates while coddling the dems.

Just look at the Obama administration for a better example. There have been dozens of things committed by his administration that barely get a mention, but would have been front page scandals if Bush was in office.

Did Kitz live property tax free in the governor's mansion during his eight years in Salem? And then he moved to the Pearl to live property tax free up there, right?

I bet Dudley paid more Oregon income tax during those years than Kitzhaber did.

Except that the WWeek piece raises it from tax avoidance strategies (what tax lawyers are supposed to encourage) to tax fraud, which is a huge deal, right? I was hoping you'd put in something about your view of Nigel's analysis ...

I'm sure hope Nigel will follow up on Kitz's Pearl District Condo and a full analysis of all the tax subsidies, and property tax reliefs he employed there. And I wonder if Kitz claimed his residency in Bend versus the Pearl to avoid TriMet, Multnomah Co, and surcharge taxes of Multnomah Co. that we recently passed. What's good for the goose is good for the gander.

I wouldn't hold it against Dudley himself if his tax avoidance were ultimately proven illegal; he was following the advice he was given.

What I will hold against, him, however, is that he sought to benefit from living in Oregon while shirking paying his share of the bill. Now on a lark he wants to be governor of a state he has heretofore shown no visible interest in leading and has devoted no time working in the trenches trying to make better.

I'm sure he's a nice guy and has worked hard at what he chose to devote his life to, and I agree that Kitzhaber himself and his ideas are tired retreads. I really wish the Dems had found some fresh blood. But at least Kitz has devoted the latter part of his career to public service in Oregon, lives in Oregon, and understands it intimately.

What a lame story.
Of all the things for Nigel to dig into that's got to be one of the least suspicious, least interesting and most useless.
Has he been body snatched by BlueOregon?
And why does such a long term critic of all things Goldshmidt and his still around cronies appear to want to keep it all entrenched?
If there were ever a time where some healthy probing of the statsu quo could reap some big rewards for Oregon it is now.
Yet the beat goes on with Nigel taking a pass at the opportunity? Marvelous.
Throw a dart at the goverment listings and there's more to look at than Dudley's residencey 10 years ago.
Take JPACT last week.
TriMet GM Neil McFarland waltzed in there and repeated TriMet's lie that only at the end of this July did they find out the feds would not fund more than 50% of Milwaukie Light Rail. It's documented that the feds told TriMet over a year ago and warned them not to plan on the 60% they were peddling.
In November 2008 Trimet knew.
http://trimet.org/pdfs/pm/Steering_Committee/Nov_2008/Finance_Table.pdf

In 2009 they were told.
http://portlandafoot.org/documents/OrangeLineFTALetter.pdf

Just yesterday I heard a radio newscast report the recent added funding raid by JPACT. The stoyr reported that reason for the hole to fill and urgency was that TtriMet only found out recently about the fed fudning. The lying is institutionlized around here.

Mcfarland also told the wholy corrupted JPACT rubber stampers that Milwaukie Light Rail is the catalyst for OHSU/OUS Life Sciences Collaborative Center in SoWa.
Just like the The Tram is the Linchpin line.
The Joint Policy Advisory Committee on Transportation then went on to approve the raiding of $27 million from the region's transportation revenue stream to help pay for Milwaukie Light Rail, Lake Oswego Streetcar and Barbur Blvd/99 MAX line. That's $27 million less for future routine infrastrucure projects

How can TriMet, Metro et al, lie about anything and everything, involving the misappropriation of billions, rob millions from essential services and cover up failure on a grand scale and it's not more of a curiosity or story than Dudley's residency?

he sought to benefit from living in Oregon while shirking paying his share of the bill

How so? Living in WA doesn't negate the need to pay OR income taxes on OR sourced income.

Since winning the Pulitzer, Nigel has been stuck with playing "who's got the pickle." In his hunt for huge Kosher dills, he usually comes up with a gherkin. Then BlueOregon water cooler kids serve the gherkin with a bunch of words that end in "bag."

Can Jack or someone explain the OR income tax rules for people who live in Washington?

My understanding has been that if you work in OR and live in WA, that you still pay full OR income taxes? Have I been mistaken in this?

Snards

You are correct. Any income earned in OR is OR taxable. Now if you had taxable interest/dividends etc, you wouldn't pay OR tax on those while living in WA

Right-o on the OR income tax situation.

I worked in Oregon while living in Washington for more than 20 years, sent hundreds of thousands of dollars in income taxes to Salem during that time.

The mere fact of Washington residency, or residency anywhere else, does not exempt people from paying Oregon income tax, if the income was earned in Oregon.

Remember all that mishmash about using income taxes to finance the proposed MLB stadium a few years ago. Jack should remember. Steve Kantor was one of the leading proponents.

Thanks for the clarification. So someone with high capital gains, or other investment income, could benefit from living in Washington.

Also someone (an athlete, for example) who earns part -- say, half -- of his pay working out-of-state.

Snards

Exactly. When you get beyond all the political mumbo jumbo, OR's high capital gains tax rate is probably the biggest threat to business growth. Business/personal tax rates not so much.

Isn't Ron Wyden living in NY a much more interesting story?

someone with high capital gains, or other investment income, could benefit from living in Washington.

Probably not for long. Washington voters appear ready to pass a high-earner income tax, I-1098, this coming November. It would impose a five-percent tax on single incomes above $200k, or $400k for couples, while reducing the regressive business and occupation tax. (Bill Gates Sr. is bankrolling the campaign.) Polls have been consistently favorable, but even if it doesn't pass this November, the writing is on the wall. Washington is going to have an income tax by the middle of this decade. This will greatly benefit both states -- Washington will no longer have to rely solely on regressive, cumbersome and unstable sales taxes, and Oregon will no longer suffer nearly as much capital flight to Washington (which currently doesn't much benefit Washington).

Did this article crash WW's site?

Apparently, he isn't giving the Kitzhaber camp much else to shoot at.

That's the magic of the candidate with no prior political experience.

"Isn't Ron Wyden living in NY a much more interesting story?"

Sure.

Since his wife lives there and votes there and his kids live there with this wife Wyden obviously lives there.

Isn't that special.

And I'm sure he thinks Mayor Creepy is doing a fine job.

Except that the WWeek piece raises it from tax avoidance strategies (what tax lawyers are supposed to encourage) to tax fraud

Nobody's alleged fraud. Not every underpayment of tax is fraudulent -- if indeed there was an underpayment in this case.

"Washington will no longer have to rely solely on regressive, cumbersome and unstable sales taxes"

Are you joking? There is nothing more regressive than taxing production rather than consumption!

everyone who followed the blazers knew Dudley had a house in Camas. Oregonian and the Tribune both reported it at the time when he was a Blazer.

Sales taxes in Washington state take three times more (as a percentage of income) from people making less than $20K as they do for those making more than $130K. That's regressive.

Now let's all take a moment to remember Huey Long, who was shot 75 years ago on September 8 and died September 10, 1935.

On the fraud piece, wouldn't paying taxes as a non-Oregon resident, on Oregon income, include some kind of representation about NOT being an Oregon resident? And if that wasn't true, then wouldn't it go a ways toward fraud (instead of just an underpayment)?

Please stop grasping at straws. Not every erroneous tax return is fraudulent. Yours probably has some mistakes on it.

Tax fraud requires knowledge that the return is wrong. The issue here would be much too cloudy for that. The return might be wrong and not even negligent, much less fraudulent. Then again, it might be perfectly correct.

Jack, in my experience, when it comes to the IRS fraud is in the eye of the beholder aka the IRS. They think they get to decide what is and what is not fraud and generally the courts back them.

Fraud cases are hard for the IRS to win. It has to produce "clear and convincing evidence" to impose a civil fraud penalty, and proof "beyond a reasonable doubt" for a criminal conviction. Those are heavy burdens of proof, as compared to the usual "preponderance of the evidence" (50% + 1) that the revenuers have to produce in a simple tax case, with no fraud alleged.

You can't blame someone for utilizing the system to his advantage. That's just human nature. He's not cheating anyone out of anything. He paid his income taxes like any other Oregon worker.

When Phil Knight sells his stocks in Oregon -- he pays quite a bit in taxes to the state. I can't help but think if I were in his position, would I just pick up and move to Washington instead of paying capital gains taxes on major stock sales?

Are we to be spiteful of that? Or maybe Oregon's capital gains taxes need another look?

Let's not be angry at Dudley, but rather look at why he did what he did. And I probably won't be voting for the dude either.

Sponsors





We accept advertising through Blogads. If you're interested, click the "Advertise here" link above, or go here to place your ad through Blogads. For assistance, e-mail me here; I'd be glad to help. Reach lots of viewers -- we're up to about 3,800 unique visits a day, and more than 61,000 page views a week (as of November 4). Our rates are dirt cheap for the exposure you'll get!

As a lawyer/blogger, I get
to be a member of:


In Vino Veritas

Quinta das Amoras, Vinho Tinto 2009
Mauro Molino, Barbera d'Alba 2009
Garda Chiaretto Rose
Columbia Crest, Two Vines Vineyard 10 White
Chateau Ste. Michelle, Pinot Gris, Columbia Valley 2009
L'Hortus, Rose de Saignee 2010
Maculan, Pino & Toi 2008
McKinley Springs, Bombing Range Red 2008
Trader Joe's Pinot Gris 2009
Montes Alpha, Cabernet 2007
Gran Sasso, Sangiovese, Terre di Chieti 2009
Garda, Classico Chiaretto Rose
Beaulieu, Cabernet, Rutherford 1999
Picos del Montgo, Tempranillo 2008
Chateau de Montmirail, Vacqueyras 2008
La Granja 360, Syrah 2009
Montgras, Carmenere Reserva 2009
Lange, Pinot Gris 2009
Columbia Crest, Horse Heaven Hills Cabernet 2008
Kirkland, Pinot Grigio 2010
Trader Joe's Coastal Syrah 2009
Columbia Crest, Horse Heaven Hills Merlot 2008
Trader Joe's Coastal Chardonnay 2009
Vieux Papes Red
Domaine de l'Aujardiere, Chardonnay 2009
Santa Rita, Cabernet, Medalla Real 2007
Penfold's, Koonunga Hill Shiraz Cabernet 2008
Guild, Red, Lot #02 2008
Dievole, Dievolino Sangiovese 2008
Laforet, Burgogne Chardonnay 2009
Columbia Winery, Merlot 2007
Bonterra, Cabernet 2008
Elk Cove, Pinot Gris 2009
Maquis Lien 2006
Scott Paul, Pinot Noir, Le Paulee 2007
Cameron, Chardonnay
B.R. Cohn, Cabernet, Silver Label 2006
Graffigna, Cabernet 2005
Palo Alto, Reserve Red 2008
Menguante, Garnacha 2008
Lange, Pinot Gris 2009
Felsina Berardenga, Vin Santo 1997
Anne Amie, Pinot Gris 2009
McKinley Springs, Bombing Ramge Red 2007
Vieux Papes Red
Dionysius Chardonnay 2009
Haden Fig, Pinot Noir 2009
Vega Montan, Mencia 2008
Chateau la Vernede, Coteaux du Languedoc 2007
Mount Defiance, Hellfire (White) 2008
Root: 1, Cabernet 2008
Columbia Crest, Two Vines Pinot Grigio 2009
Columbia Crest, Two Vines, Vineyard 10 White, 2008
Columbia Crest, Two Vines, Vineyard 10 Rose, 2007
Abacela, Grenache Rose 2009
Avia Cabernet 2004
Lemelson Pinot Noir, Thea's Selection 2007
Chateau de la Roulerie, Rose d'Anjou 2009
Casal Garcia, Vinho Verde Rose
La Ferme Julien, Rose 2008
Cana's Feast, Bricco Red, 2006
Hogue, Genesis Merlot, 2008
Owen Roe, Sharecropper's Cabernet, 2008
Kim Crawford, Unoaked Chardonnay 2008
J. Scott, Pinot Noir 2008
Edmunds St. John, White, Heart of Gold 2008
Columbia Crest, Walter Clore Private Reserve 2006
Stevenot, Cabernet, Sierra Foothills, "Stanford" 2000
Portuga, Vinho Rose 2009
Taylor Fladgate, First Estate Reserve Porto
Franciscan, Cabernet, Napa 2006
Chaparral de Vega Sindoa, Garnacha 2008
Quinta da Aveleda, Vinho Verde 2008
St. Francis, Chardonnay Sonoma 2008
E. Guigal, Cotes du Rhone Blanc, 2007
Edmunds St. John, Bone-Jolly, Gamay Noir 2008
St. Innocent, Pinot Noir 2006
Jigsaw, Pinot Noir 2007
Chateau Ste. Michelle, Merlot, Indian Wells 2007
Charles Shaw, Chardonnay 2008
Edmunds St. John, Bone-Jolly, Gamay Rosé 2009
Cameron, Willamette Valley Chardonnay
Il Valore, Sangiovese, Giovane, Puglia 2008
Duck Pond, Chardonnay, Wahluke Slope 2007
Kim Crawford, Marlborough Pinot Noir 2008
Domaine du Pesquier, Cotes du Rhone 2005
Cantina Zaccagnini, Montepulciano d'Abruzzo 2006
Domaine Matrot, Chardonnay, Bourgogne 2007
David Hill, Oregon Sparkling Wine, Brut
Chandler Reach, Monte Regalo 2006
Elk Cove, Pinot Gris 2008
Kirkland, Columbia Valley Merlot 2008
D'Aragon, Old Vine Garnacha 2008
Columbia Crest, Walter Clore Private Reserve 2005
Pavin & Riley, Merlot 2006
David Hill, Estate Pinot Noir, Barrel Select 2006
Castle Rock, Paso Robles Cabernet 2006
Magnificent, Cabernet, Steak House 2008
Conundrum 2008
Beaulieu, Cabernet, Rutherford 1998
Saint Cosme, Cotes-du-Rhone 2007
La Granja, Tempranillo 360, 2008
Santa Rita, Mendalla Real Cabernet 2006
Columbia Crest, Grand Estates Merlot 2006
Andezon, Cotes-du-Rhone 2007
Collegiata, Montepulciano d'Abruzzo
Troon, Druid's Fluid 2008
La Granja, Tempranillo 2008
Monte Antico, Toscana 2006
Vieux Papes, Blanc de Blancs

The Occasional Book

Harper Lee - To Kill a Mockingbird
Emma McLaughlin & Nicola Kraus - The Nanny Diaries
Brian Selznick - The Invention of Hugo Cabret
Sharon Creech - Walk Two Moons
Keith Richards - Life
F. Sionil Jose - Dusk
Natalie Babbitt - Tuck Everlasting
Justin Halpern - S#*t My Dad Says
Mark Herrmann - The Curmudgeon's Guide to Practicing Law
Barry Glassner - The Gospel of Food
Phil Stanford - The Peyton-Allan Files
Jesse Katz - The Opposite Field
Evelyn Waugh - Brideshead Revisited
J.K. Rowling - Harry Potter and the Sorcerer's Stone
David Sedaris - Holidays on Ice
Donald Miller - A Million Miles in a Thousand Years
Mitch Albom - Have a Little Faith
C.S. Lewis - The Magician's Nephew
F. Scott Fitzgerald - The Great Gatsby
William Shakespeare - A Midsummer Night's Dream
Ivan Doig - Bucking the Sun
Penda Diakité - I Lost My Tooth in Africa
Grace Lin - The Year of the Rat
Oscar Hijuelos - Mr. Ives' Christmas
Madeline L'Engle - A Wrinkle in Time
Steven Hart - The Last Three Miles
David Sedaris - Me Talk Pretty One Day
Karen Armstrong - The Spiral Staircase
Charles Larson - The Portland Murders
Adrian Wojnarowski - The Miracle of St. Anthony
William H. Colby - Long Goodbye
Steven D. Stark - Meet the Beatles
Phil Stanford - Portland Confidential
Rick Moody - Garden State
Jonathan Schwartz - All in Good Time
David Sedaris - Dress Your Family in Corduroy and Denim
Anthony Holden - Big Deal
Robert J. Spitzer - The Spirit of Leadership
James McManus - Positively Fifth Street
Jeff Noon - Vurt

Road Work

Miles run year to date: 21
At this date last year: 10
Total run in 2011: 113
In 2010: 125
In 2009: 67
In 2008: 28
In 2007: 113
In 2006: 100
In 2005: 149
In 2004: 204
In 2003: 269
Clicky Web Analytics