Id. at 682. And in Keller v. Department of Revenue , 319 Or. 73, 872 P.2d 414 (1994), which asked whether a certain Washington tax could offset Oregon income taxes, the Court held that it must "examin[e] the substance and practical effect of that tax, not only its label under Washington law." Id. at 415.

Id. at 682. And in Keller v. Department of Revenue, 872 P.2d 414 (Or. 1994), which asked whether a certain Washington tax could offset Oregon income taxes, the Court held that it must "examin[e] the substance and practical effect of that tax, not only its label under Washington law." Id. at 415.

Those cases are not persuasive. For example, in Keller v. Department of Revenue, 319 Or. 73, 872 P.2d 414 (1994), an Oregon taxpayer sought a tax credit for taxes paid to the State of Washington under Washington's business and occupations tax. The Oregon Supreme Court declined to entertain the Commerce Clause challenge.

Those cases are not persuasive. For example, in Keller v. Department of Revenue, 872 P.2d 414 (Ore. 1994), an Oregon taxpayer sought a tax credit for taxes paid to the State of Washington under Washington's business and occupations tax. The Oregon Supreme Court declined to entertain the Commerce Clause challenge.

The director also determined that plaintiff was not entitled to relief under ORS 305.295, because he was an Oregon resident in 1985, and the State of Oregon may tax all the income of its residents under the Oregon Constitution and federal law. See, e.g., Keller v. Dept. of Rev., 319 Or. 73, 78, 872 P.2d 414 (1994) ("The state's taxing authority extends to all of the income earned by its residents, including income earned outside the state."). The director of the department dismissed the appeal and concluded that plaintiff owed $4,863.

General Motors Corp. v. Tracy, 519 U.S. 278, 300, 136 L.Ed.2d 761, 117 S.Ct. 811 (1997). See also Keller v. Department of Revenue, 319 Ore. 73, 78, 872 P.2d 414 (1994) ( Complete Auto does not alter rule that Oregon is entitled to tax income of its residents, including income derived from and taxed by another state); Guzzardi v. Director, Division of Taxation, 15 N.J. Tax 395, 408 (1995) (recognizing that in taxation of resident individuals, United States Supreme Court has not applied commerce clause principles). The trusts have also failed to identify the interstate market or transaction purportedly implicated here.

An income tax is distinguishable from a sales tax, which is levied on the consumption of commodities within the taxing jurisdiction. See Keller v. Dept. of Rev. 319 Or. 73, 76, 872 P.2d 414 (1994) (noting that incomes taxes are distinguishable from other forms of taxes). A sales tax is not an income tax, therefore the statute on its face, does not apply to income tax.