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  5. 774 P.2d 1099 (1989)
 

BORG v. DEPT. OF REV.

TC 2410; SC S35615.

774 P.2d 1099 (1989)

308 Or. 34

Eilert R. BORG and Sally S. Borg, Respondents/Cross-Appellants, v. DEPARTMENT OF REVENUE, State of Oregon, Appellant/Cross-Respondent.

Supreme Court of Oregon, In Banc.

Decided May 31, 1989.

Attorney(s) appearing for the Case

Leo A. Reinikka of Case, Dusterhoff & Mehlhaf, Portland, argued the cause and filed briefs for respondents/cross-appellants.

Ted E. Barbera, Sr. Asst. Atty. Gen., Salem, argued the cause for appellant/cross-respondent. With him on the briefs was Dave Frohnmayer, Atty. Gen., Salem.

LINDE, Justice.

The Department of Revenue denied taxpayers' request for a refund of state income taxes paid on their 1981 and 1982 income from a mutual fund, the American Association of Retired Persons U.S. Government Money Market Trust. The Trust, a regulated investment company organized as a Massachusetts business trust, invested in obligations of the United States Government, other obligations insured or guaranteed by the United States Government, certificates...

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