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Oregon’s Corporate Activity Tax begins Jan. 1

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Oregon Dept. of Revenue offering resources to help businesses

SALEM, Ore. (KTVZ) -- With the Jan. 1 start date for Oregon’s new Corporate Activity Tax a little more than a week away, the Oregon Department of Revenue on Monday reminded business taxpayers of the resources available to help them learn about and comply with the new tax law.

“Opening CAT registration in December is one of the many agency efforts to minimize the risk of taxpayer noncompliance,” said Nia Ray, director of the Department of Revenue. “We encourage feedback and questions to ensure the taxpaying community gets the information they need.”

Several resources are available for business taxpayers and tax preparers on the CAT page of the Department of Revenue website at www.oregon.gov/dor, including:

  • A link to register through Revenue Online.
  • A list of frequently asked questions, including high-level summaries of the rules and other topics that will help taxpayers comply with the new law.
  • Drafts of the first 12 administrative rules.
  • A sign-up form to receive the latest updates on the CAT.

For other information, email questions to cat.help.dor@oregon.gov or call 503-945-8005.

What is the CAT?

The Oregon Legislature created the Corporate Activity Tax in House Bills 3427 and 2164 during the 2019 session to provide new funding for early learning and K-12 education.

The CAT is imposed on businesses for the privilege of doing business in Oregon, including those located inside and outside of Oregon. It’s measured on a business’s commercial activity—the total amount a business realizes from activity in Oregon.

Businesses with taxable commercial activity in excess of $1 million must pay the Corporate Activity Tax. The tax is $250 plus 0.57% of gross receipts greater than $1 million after subtractions.

The CAT applies to all business entity types, such as C and S corporations, partnerships, sole proprietorships, and other entities. Businesses with more than $750,000 in Oregon commercial activity are required to register for the CAT.

Registration

The new law requires registration within 30 days of meeting the threshold of $750,000 in Oregon commercial activity. A penalty of $100 per month may be assessed for failing to register, up to $1,000 per calendar year. Businesses that wish to do so, can register early.

Registration for the CAT opened earlier this month on Revenue Online. Taxpayers don’t need a Revenue Online account to register for the CAT. Those who have Revenue Online accounts can't be logged in to register for the CAT. Instead, they should go directly to the CAT webpage and click on the "Register For CAT" link on the right-hand side of the page.

Administrative rules

DOR is currently in the process of writing temporary administrative rules to provide guidance and clarity regarding the new tax. The rules have been divided into three groups according to priority. The highest priority group will be filed with the Secretary of State in January, with the other two groups following in February and March. As drafts of the rules are completed, DOR will post them on the CAT webpage. Draft versions of the first 12 temporary rules are now available.

Visit www.oregon.gov/dor to get tax forms, check the status of your refund or make tax payments; call 800-356-4222 toll-free from an Oregon prefix (English or Spanish) or 503-378-4988 in Salem and outside Oregon; or email questions.dor@oregon.gov. For TTY (hearing or speech impaired), call 800-886-7204.

News / Taxation / Top Stories

Barney Lerten

Barney is the digital content director for NewsChannel 21. Learn more about Barney here.

Comments

10 Comments

  1. tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax tax

  2. Do what I did with my business. Close up shop in Oregon and move to a business friendly state. Tell Kate to shove it. 12 people work here, a couple are moving, the rest can thank Kate for the privilege of being unemployed in Oregon. It’s on GROSS receipts over a million. Sounds like a lot of money for the dimwits in Salem but it’s not when you run a business. Anyone who thinks this money is going to “the children” are blind fools for believing anything that comes out of the mouths of those tyrants in Salem. Next up will be the stupid cap and tax “for the children.” Then, when the time is right, gun bans “for the children.”

    1. You, sir, are exactly on the money. Outrageous tax. They are going for the money and know they can’t be stopped. That’s what one-party rule gives you when the rulers are unprincipled.

  3. Another “law” that Kate passed that the voters of Oregon already decided we did not want. It does serve as a perfect example of how clueless about business economics these people are. Obviously they don’t understand the difference between gross and net incomes. What could possibly be the logic of taxing businesses with different net profits at the same rate as their gross?? If business A grosses a million, nets 40% they are taxed the same as business B that grosses a million and nets 5%. The sad part, the folks writing these laws have never owned a business or signed the front of a paycheck.

  4. “The CAT is imposed on businesses for the privilege of doing business in Oregon, including those located inside and outside of Oregon” Privilege of doing business? Talk about an egotistical statement. Thanks for the cost of living hike there Kate. Now she is raising prices on goods for people outside of Oregon as well. I wonder how many companies will move out or stop doing business in Oregon.

    Also, if these corporations affected by this law should sue the state under the Fourteenth Amendment: ““Equal protection of the laws” is a phrase that originates in the Fourteenth Amendment, adopted in 1868. The amendment provides that no state shall “deny to any person within its jurisdiction the equal protection of the laws.” This is the equal protection clause. It means that, generally speaking, governments must treat people equally. Unfair classifications among people or corporations will not be permitted.” quoted from lumenlearning.com. Seems to me this taxation is selective and not equal across the board for all corporations.

  5. The beginning of sales tax. First step, baby step, then the trampling begins. Limits will be readjusted and soon who wants to do business here? Closing our doors, thankfully.

  6. THis is another name for a gross receipts sales tax – put lipstick on a pig, still smells like a pig.
    “new funding for early learning and K-12 education.” – hogwash – when they were trying to sell the idea they talked about 1.2 million for the schools but they were really quiet about the 650,00.00 the took out of school funding from another direction – it does not net much for the schools.
    but it did create another bureaucracy for another government expense and more governemnt employees for us to support with out tax dollars.

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