OAG 77-30.

• Case Date: March 17, 1977
• Court: Oregon

Oregon Attorney General Opinions 1977. OAG 77-30. 653OPINION NO. 77-30[38 Or. Op. Atty. Gen. 653]March 17, 1977No. 7420This opinion is issued in response to a question submitted by John J. McFaull, Administrator, Administrative Services, Department of General Services.QUESTION PRESENTEDMultnomah County has imposed an income tax on businesses within Multnomah County, including utilities. In accordance with a Public Utility Commissioner rule, the utilities separately state the customer's pro rata share of the tax on the utility bill. Is an agency of the State of Oregon receiving such a bill required to pay the amount of the tax which is separately stated?ANSWER GIVENNo. DISCUSSION Multnomah County imposed a tax upon all businesses in Multnomah County, including utilities, as part of a general plan to raise revenue. Ordinance No. 121 as applied to utilities is a tax on doing business or the right to do business, imposed at the rate of .006 percent of net income derived from business in Multnomah County. The ordinance provides that the tax is on the utility, and not on the ultimate consumer.654For purposes of this opinion it is assumed that the county has a right to impose such tax. See 33 Op Atty Gen 238 (1967), 33 Op Atty Gen 245 (1967) and 36 Op Atty Gen 887 (1974). The rates of public utilities are regulated by the Public Utility Commissioner. The legislature has given the Commissioner the broadest possible authority to regulate utilities. The Commissioner's power is restricted only by the statutes, and by state and federal constitutional restraints. Pacific NW Bell v. Sabin, 21 Or App 200, 213, 214, 534 P2d 984 (1975). In the exercise of the powers given to the Commissioner, he has (pursuant to the rule-making power granted by ORS 756.060) adopted rule OAR 860-22-045 which provides:

"(1) In the event any county of the State of Oregon, other than a city-county, should impose upon any public utility subject to the jurisdiction of the Public Utility Commissioner any new taxes, or license, franchise or operating permit fees, or increase any such taxes or fees, the public utility required to pay such taxes or fees shall collect from its customers within the county imposing such taxes or fees the amount of the taxes or fees, or the amount of increase in such taxes or fees provided, however, that should the taxes or fees cover the

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