Ore. Tax Court Denies Military Tax Break For Civilian At Vets Hospital

A civilian respiratory therapist at a Veterans Administration hospital in Oregon was ineligible for a state income tax exemption allowed for U.S. Armed Forces members, the Oregon Tax Court has ruled.

In a decision Tuesday, the Oregon Tax Court’s magistrate division said that Christopher Averett, a Washington state resident and a respiratory therapist at the VA hospital in Portland, was a civilian federal employee and not a member of the U.S. Armed Forces. The court dismissed Averett’s appeal of the Department of Revenue’s refusal of the refund he sought for state income taxes he paid in 2019.

The court said state law exempted income earned in Oregon by nonresidents in service to the Armed Forces, defined in state law as “all regular and reserve components of the United States Army, Navy, Air Force, Marine Corps and Coast Guard and other uniformed services under the orders of the President of the United States.”

The court rejected Averett’s description of his income as “military in nature yet not uniform.” The court said he admitted that he is a civilian and that he participates in the civilian GS (General Schedule) pay structure.

The case is Christopher S. Averett v. Department of Revenue, case number TC-MD 230441G in the Oregon Tax Court, Magistrate Division.

—Editing by Neil Cohen and Peter Rozovsky.