Corporate activity tax oregon. Based on the most recent economic and revenue forecast from ...

Corporate activity tax oregon. Based on the most recent economic and revenue forecast from the Office of Economic Analysis (OEA),1 actual CAT revenue for the 2021-23 biennium was $2. It is measured on a business's Feb 24, 2025 · The Oregon Corporate Activity Tax is a tax on commercial activity in Oregon. How are “commercial activity” and “taxable commercial activity The CAT is imposed on businesses for the privilege of doing business in Oregon and is generating new funding for early learning and K-12 education. Nov 4, 2019 · The so-called Corporate Activities Tax (CAT) is a consumption-based, business entity-level gross receipts tax, passed by the Oregon Legislature during the 2019 legislative session. 57% of taxable revenue above that threshold. B. Corporate Activity Tax (CAT) Resources Oregon’s Corporate Activity Tax (CAT) is a gross receipts tax applied to businesses with more than $1 million in Oregon commercial activity, calculated as $250 plus 0. The CAT differs from the state corporate income tax and is imposed on taxable Oregon commercial activity exceeding $1 million, computed as $250 plus 0. Mar 1, 2020 · In an effort to raise substantial funds for public education, Oregon enacted a corporate activity tax (CAT) in 2019 (H. Further Jun 10, 2025 · The Oregon Center for Public Policy is a nonpartisan think tank that uses research and analysis to improve the economic outcomes for all Oregonians, especially for those struggling to make ends meet. What’s new Corporate Activity Tax (CAT) was established during the 2019 regular session in HB 3427 and HB 2164. • The tax is titled the Oregon Corporate Activity Tax [ CAT]. 1, 2020. Fiscal filers must use the Form OR-CAT from the year that matches their period begin date. 128 - Sourcing of commercial activity; rules. Sep 30, 2019 · There is still an incredible amount of uncertainty surrounding the Oregon Corporate Activity Tax (CAT). As businesses and taxpayers continue to navigate the complexities of this tax, the Legislature is Dec 1, 2020 · Based on the language of the statute, as noted above [emphasis added], the tax on an insurer’s Oregon commercial activity is based on the gross premiums reported on the two different reports required to be filed with the Department of Consumer and Business Services. 57% will be applied to the net Oregon Commercial Activity. The Oregon CAT looks like the Ohio Corporate Activity Tax Returns: Focuses on corporate activity tax returns corresponding to tax year 2020. Resources Start a New Oregon Business Register an Oregon Business Request a Tax Compliance Certification Register my business with Oregon tax programs Respond to a Letter Garnishee information Nonprofit, tax-exempt, co-ops, HOAs, and political organizations Close an Oregon Business Sales Tax in Oregon Voluntary Disclosure Payroll formulas For example, if you own a business with $5 million of Oregon service revenue and you pay $3 million in Oregon employee gross wages, your net Oregon commercial activity is $5,000,000 – $1,050,000 (35% of wages) – $1,000,000 exemption, or $2,950,000, and the Corporate Activity Tax on that would be $17,065 annually. The tax is imposed upon persons with substantial nexus with this state. A business may include the CAT with other business expenses when setting the to PK !N÷Šá) " [Content_Types]. ) How to Calculate Oregon's Proposed Corporate Activity Tax Under HB 3427 Determine Tax Base Gather the total amount "arising from transactions and activity in the regular course of the person’s trade or business. The Oregon Corporate Activity Tax (CAT) is effective on January 1, 2020. Jan 21, 2020 · By Caleb Williams, Business & Taxation Law Attorney As of January 1, Oregon’s Corporate Activity Tax (CAT) is in effect and shortly businesses will need to take action to comply with this new tax law. The CAT not a transactional tax, such as a sales tax that applies to each transaction. Jul 22, 2019 · The same goes for corporate taxpayers paying in any of the various Oregon minimum taxes up to $100,000. Sep 18, 2019 · This article will provide an overview of the recent development in the state of Oregon. Becomes law 91 days from sine die. Oregon’s Corporate Activities Tax (CAT) funds key investments in preschool and K-12 education in Oregon. To the second question, the CAT is an annual privilege tax. Starts with the tax year 2026. Regulation 150-317-1060 (Temporary Regulation), which provides guidance on the definition and sourcing of insurance premium receipts and the applicability of the Corporate Activity Tax (CAT) to insurers. This tax is in addition to those corporate taxes your business is already paying. • Print actual size (100%). Taxpayers who have a federal extension of time to file their income tax return automatically receive a seven-month extension for the CAT return. The CAT is imposed on the entity doing business in Oregon and is considered pa t of the business’ expenses. • Use blue or black ink. Dec 10, 2019 · Registration for Oregon’s new Corporate Activity Tax is now open through the Department of Revenue’s Online system. 57 percent. Oregon’s CAT regime is in addition to the current corporate income tax, and taxpayers (even if already registered for corporate tax purposes) must separately register for the CAT through the Department of Revenue’s online system. Corporate Activity Tax statistics, is an annual report that presents information about the Oregon CAT tax and provides a doundation for understating. OAR 150-317-1200 (Cost Input or Labor Cost Subtraction) provides detailed information to assist taxpayers in calculating the 35 percent . Revenues from the CAT are designated for the Fund for Student Success which aids in funding education programs for early childhood and K-12 students. The Oregon CAT is a separate tax and may be imposed regardless of any Oregon income or excise tax; a taxpayer may be subject to both Oregon income tax and CAT. However, taxpayers (including unitary groups) exceeding $750,000 of Oregon “commercial activity” are required to register for the CAT within 30 days of meeting the threshold. Oregon gross receipts delivered to or benefit received in Oregon less: the greater of 35% of apportioned cost inputs or 35% of apportioned cost of labor $1,000,000 annual exemption. First name (if sole proprietorship) Federal employer identification number (FEIN) Doing business as (DBA) Initial Legal name of designated Corporate Activity Tax (CAT) entity (sole proprietor—complete the next line) Contact first name Last name Social Security number (SSN) Current address 150-106-003 Country (if other than the U. The law includes several amendments to Oregon’s Corporate Activity Tax (CAT) statute and is effective retroactively as of Jan. Dec 17, 2019 · Oregon’s new corporate activity tax, also known as “CAT”, goes into effect beginning January 1, 2020. A: The Oregon Department of Revenue will not be imposing underpayment penalties if a taxpayer has a principal place of business in one of the eight counties impacted by the wildfires, or if the taxpayer shows they reside in, maintain tax records, or provide qualifying disaster activities in one of the eight counties. Aug 19, 2021 · Form OR-CAT, Oregon Corporate Activity Tax Return Instructions. 57 percent of taxable Oregon commercial activity above $1 million. Use this form to report exclusions from commercial activity on your Oregon Corporate Activity Tax Return. These return details allow for a thorough analysis of the characteristics of Mar 9, 2025 · Corporate Activity Tax (CAT) Developments By Oregon State Senator Mike McLane, This week in the Senate Finance and Revenue Committee, discussions on Oregon’s Corporate Activity Tax (CAT) took center stage, with key debates on its economic impact and potential reforms. A corporate activity tax is imposed on each person with taxable commercial activity for the privilege of doing business in this state. Local news, sports, business, politics, entertainment, travel, restaurants and opinion for Seattle and the Pacific Northwest. 100(a)): “The total amount realized by a person arising from transactions and activity in the regular course of the person’s trade or business, without deduction for expenses incurred by the trade or business” Nov 23, 2025 · The annual CAT return is filed using Form OR-CAT, the Oregon Corporate Activity Tax Return. This is why Oregon manufacturing lags the nation since the Corporate Activities tax (CAT Tax) went into effect around 2020. It is a tax on commercial activity – the sale of goods and services – in Oregon. The CAT is imposed on businesses for the privilege of doing business in Oregon and is generating new funding for early learning and K-12 education. 2019 On May 16, 2019, Oregon Governor Kate Brown signed into law HB 3427 (the Bill), which creates a new Corporate Activities Tax. Dec 20, 2021 · What is the Oregon Corporate Activity Tax? The Oregon Corporate Activity Tax (CAT) was established in May 2019 as part of HB 3427 and is considered a tax for the privilege of doing business in Oregon. The new law expressly provides that the tax revenue generated from the legislation will be used to fund public school education. Instead, the CAT is measured on a business’ annual commercial activity—the total amount a business realizes from transactions and activity in Oregon over the course of a year, less a 35 percent subtraction for certain business expenses. The Corporate Activity Tax page on the Department of Revenue’s website provides a wealth of information about the CAT. All businesses with $750,000 or more of commercial activity in Oregon must register for the CAT with the Oregon Department of Revenue. … No two businesses are exactly alike. Get help meeting your tax obligations. The summary of the House Bill (HB2177) reads: “Raises the exemption and filing thresholds for the CAT. Mar 23, 2020 · The new tax, $250, plus 0. Feb 3, 2020 · By Katie Eyre, CPA Cascade Policy Institute The 2019 Oregon Legislature established a new tax affecting all firms that do business in Oregon. The due date for the annual return is the 15th day of the fourth month following the end of the tax year. com Bill Watch: Oregon House Bill (HB2177) has been introduced to increase the exempt amount and the filing threshold for purposes of the corporate activity tax. On May 16, 2019, Oregon Governor Kate Brown signed into law House Bill 3427, which established an annual Corporate Activity Tax (CAT) based on commercial activity conducted by businesses, effective for tax years beginning on or after Jan. Section 63 of Oregon House Bill 3427 imposed a new tax on each person with taxable commercial activity for the privilege of doing business in Oregon. " 2023 Oregon Revised Statutes Volume : 08 - Revenue and Taxation Chapter 317A - Corporate Activity Tax Section 317A. 57% on taxable receipts over $1 million, net of certain deductions, plus $250. 57 percent of taxable commercial activity over $1,000,000, will have a significant impact on a wide range of Oregon business, especially low-margin businesses. It is measured on a business's A: Revenue realized by the third-party reseller may be commercial activity if it is realized in the regular course of the trade or business and meets the transactional test, regardless of whether Medicare pays those amounts. FAQs about the new Oregon Corporate Activity Tax FAQ – What, you mean there is another new tax? • Yes, In May 2019 a new tax was added to the Oregon tax structure. A taxpayer is subject to the annual corporate activity tax for doing business during any portion of such calendar year. 57% on taxable receipts less deductions above $1 million — could affect your business. About the tax ORS Chapter 317A imposes a Corporate Activity Tax (CAT) on all types of business entities. Corporation Excise and Income Tax Filing requirements and guidance Corporations that are doing business in Oregon, or with income from an Oregon source, must file an Oregon corporation tax return. Jan 27, 2020 · On January 24, 2020 the Oregon Department of Revenue (DOR) released the 3 latest rules for the Corporate Activity Tax (CAT). Proceeds of this tax will be used to establish a “fund for student success”. Other than businesses and receipts specifically excluded, the CAT generally applies to Entities included in combined Oregon return, but not in federal return The tax is computed as $250 plus 0. The legislation establishing the Oregon Corporate Activity Tax (CAT) passed in 2019, and the tax started January 1, 2020. The CAT is imposed on a business’s Oregon “taxable commercial activity,” which is generally its Oregon-source business gross receipts, less a deduction for a percentage of apportioned cost inputs or labor costs. Learn how Oregon’s corporate activity tax — imposed at a rate of 0. 76 billion and is forecasted to be $3. 1 • Use UPPERCASE letters. List the tax years your federal income attributable to Oregon commercial activity was changed by an IRS audit or by an amended federal return filed during this tax year. 79 billion for the 2023-25 biennium. The amount of the CAT is based on taxable commercial activity. Form OR-CAT-EXT, Application for Extension of Time to File an Oregon Corporate Activity Tax Return. Businesses with less than $1 million of taxable commercial activity will not have a payment obligation. Revenue from the CAT is transferred to the Fund for Student Success and is used for education spending The CAT is imposed on businesses for the privilege of doing business in Oregon. The legislation establishing the new Oregon Corporate Activity Tax (CAT) passed in 2019 and the tax started January 1, 2020. (1) A corporate activity tax is imposed on each person with taxable commercial activity for the privilege of doing business in this state. Corporate Activity Tax Q: Can a business pass along the CAT tax to a business customer on invoices for their services? item or the sale of a service. Oregon Corporate Activity Tax Oregon recently signed a new law effective January 1, 2020, allowing the state of Oregon to collect a Corporate Activity Tax (CAT). While many answers remain unknown, here's an Jan 29, 2025 · The Corporate Activities Tax is responsible for destroying the Bi-Mart pharmacy chain (because pharmacies operate on low profit margin). Jul 6, 2020 · Oregon Governor Kate Brown signed HB 4202 into law on June 30, 2020. 57% on taxable receipts less deductions above $1 million—could affect your business. To calculate your business’s CAT liability, you will need the following information: May 20, 2019 · On May 16, 2019, Oregon Governor Kate Brown (D) signed House Bill 3427 (H. May 26, 2025 · The corporate activity tax imposed under ORS 317A. 122 - Exclusion for subcontracting payments. This tax applies to commercial activity in excess of $1 million for all types of business entities including C and S corporations, sole proprietorships, partnerships, LLCs and other entities. Use codes from the Appendix A to identify which exclusions you are claiming. Find tickets to your next unforgettable experience. Feb 25, 2020 · Oregon’s new corporate activity tax will affect companies with annual in-state revenues exceeding $1 million, and was created to raise $1 billion per year for the state’s schools. 1, 2020, the original CAT effective date. 57% on taxable receipts less than deductions above $1 million that—will affect businesses. If you are filing a Form OR-QUP-CAT, review the form instructions beginning on page 11. Dec 18, 2019 · Oregon’s new corporate activity tax kicks in Jan. It is estimated that this will provide over $1 billion per year of additional funding for education in Oregon. May 22, 2019 · Oregon Enacts New Corporate Activities Tax Legal Alert 05. The nature of the Corporate Activity Tax calculation will require you to analyze your gross receipts and costs in new ways. 22. Taxpayers with Oregon commercial activity of at least $1 million must file tax returns that contain detailed information about demographics, Oregon commercial activity, and the calculation of final tax liability. Feb 8, 2025 · OregonWatchdog. Businesses with customers or vendors in Oregon could be subject to the state’s Corporate Activity Tax. The Corporate Activities Tax (CAT Tax) also slams manufacturing very hard. In Temporary Administrative Order Rev-3-2021 (released January 27, 2021), the Oregon Department of Revenue (Department) adopts Temporary Or. Jan 10, 2020 · The Oregon corporate activity tax is a form of gross receipts tax that combines elements of Ohio’s commercial activity tax and Texas’ revised franchise (gross margin) tax. • This tax is imposed on businesses for the privilege of doing business in the beautiful state of Oregon. 125 - Rate of taxation; exemption amount. Earlier this year, Oregon Governor Kate Brown signed into law House Bill 3427, which created an Oregon corporate activity tax (CAT), effective beginning January 1, 2020. The Oregon CAT will be imposed on businesses having a sufficient level of commercial activity and nexus within the state of Oregon. Once that threshold is Dec 1, 2020 · Oregon Commercial Activities Tax (CAT) Summary of Key Provisions As of December 1, 2020 The CAT tax was enacted May 16, 2019. 3427, which will impose a new Oregon corporate activity tax (CAT) on “commercial activity” (defined below) in Oregon. 57 percent of the taxable amount. Businesses subject to the tax will be taxed at a rate of 0. S. This will apply to the third quarter payment that is due November 2, 2020 The legislation establishing the Oregon Corporate Activity Tax (CAT) passed in 2019, and the tax started January 1, 2020. 81 billion for the 2023-25 biennium. 3427 and are not severable Activity Tax (CAT) Corporate Activity Tax during the 2019 session to provide new funding for early learning and K-12 education. OAR 150-317-1020 (Unitary Business Factors, Common Ownership and Filing Requirements for Unitary Groups) provides detailed guidance for unitary group taxpayers. Feb 6, 2025 · Oregon corporate activity tax In contrast to the corporate excise tax, Oregon’s corporate activity tax (CAT) is only assessed on the income of any company that does business in the state and makes over $1 million in taxable Oregon commercial activity. On April 24th, 2020 the governor instructed the Oregon Department of Revenue to raise the threshold for making estimated tax payments from $5,000 to $10,000. Jan 10, 2020 · Oregon’s new corporate activity tax (the “CAT”) went into effect on January 1, 2020. The CAT is in addition to the state's current corporate income tax. xml ¢ ( Ìš]OÛ0 †ï'í?D¹ Ú ¶16QÐ ›4 6$˜´[“œ¶ þší úï± ´ ]¡® ¯ÜT íóú±ã×ÇÅ ÜS’Í@*ÌÙ0ßë ò XÉ Jan 24, 2023 · Corporate Activity Tax Applies to all business types (Corporations, Partnerships, Proprietors, etc. The tax is a gross receipts tax that will be used to establish the “Fund for Student Success,” which will provide funds for various education initiatives. Fiscal year beginning (MM/DD/YYYY) Fiscal year ending (MM/DD/YYYY) 150-106-003 (Rev. Based on the November 2024 economic and revenue forecast from the Office of Economic Analysis (OEA),1 actual CAT revenue for the 2021-23 biennium was $2. 3427), legislation that creates Oregon’s first modified gross receipts tax, the Corporate Activity Tax (the Oregon CAT). Refreshed: 2025-05-10 Jan 20, 2020 · The Oregon Corporate Activity Tax (CAT) took effect January 1, 2020. Based on the March 2026 economic and revenue forecast from the Office of Economic Analysis (OEA),1 actual CAT revenue for the 2023-25 biennium was $2. The facts and circumstances of each business is unique, but every business will need the same information to determine its liability under the Corporate Activity Tax. The CAT is not a transactional tax, such as a retail sales tax, or an income tax. We have previously communicated regarding some of the basics of the CAT and those communications can be found on our website under the Blogs & News tab. The Corporate Activity Tax (CAT) is a tax imposed on companies for the privilege of doing business in Oregon. While it is called by its misnomer the “Corporate Activity Tax,” the CAT actually applies to most types of organizational entities such as partnerships, individuals, limited liability […] Oregon’s Corporate Activity Tax is a tax for the privilege of doing business in Oregon and is based on commercial activity in Oregon. If you have any type of business filing in Oregon, including a corporation, partnership, or Schedule C for sole proprietors, you have received a letter from the State of Oregon explaining next steps for you as the business owner or manager. 57% of taxable commercial activity over $1 million plus $250. Tax-payers will file tax returns on the Form OR-CAT, Oregon Corporate Activity Tax Return. Sep 1, 2019 · The new Oregon corporate activity tax requires quarterly estimated tax payments beginning in April 2020. 05-03-24, ver. 57%, plus a flat tax of $250. 1 Intended to raise approximately $1 billion in new annual revenue 2 to fund state investments in education (extensive education provisions are also included in H. Q: Does a unitary group need to apportion its commercial activity similar to how that group would apportion income for income tax purposes? This report describes how corporations earning income in Oregon pay state tax on their net income through the Corporate Excise Tax and Income Tax. 56 billion and is forecasted to be $2. What is the Corporate Activities Tax (CAT)? The CAT is imposed on businesses for the privilege of doing business in Oregon. The Oregon Department of Revenue (DOR) released information on the Corporate Activity Tax (CAT) on all types of business entities in the state. Oregon Revised Statutes Volume 8, Revenue and Taxation; Title 29, Revenue and Taxation; Chapter 317A, Corporate Activity Tax. ) Based on Commercial Activity in Oregon “The total amount realized by a person arising from transactions and activity in the regular course of the person’s trade or business, without deduction for expenses incurred by the trade or business” Corporate Activity Tax Applies to all business types (Corporations, Partnerships, Proprietors, etc. About the tax ORS Chapter 317A imposes a Corporate Activity Tax (CAT) on all types of business entities. The law includes several amendments to Oregon’s Corporate Activity Tax (CAT) statute and is effective retroactively as of January 1, 2020, the original CAT effective date. Feb 2, 2020 · A: The new Corporate Activity Tax (CAT) is imposed on businesses for the privilege of doing business in this state. It explains key concepts, provides some basic statistics, and briefly reviews the history of corporate income taxation in Oregon. 119 - Subtraction. J. The CAT rate of 0. Public Law 86-272 provides filing exceptions for foreign corporations doing business in Oregon. 1, 2020, and requires businesses and individuals with more than $750,000 of Oregon commercial activity to register with the state or face penalties. It is based on the total amount a business earns from transactions in Oregon, with certain exclusions,… 13 hours ago · Could your Oregon business save $30,000+ in taxes this year? Discover how S Corp taxation reduces self-employment tax while keeping you compliant with 2026 state and federal regulations. May 17, 2019 · The tax imposed is an annual tax for the calendar year and shall be remitted quarterly to the Department of Revenue. Here's what you need to know. May 30, 2019 · On May 16, 2019, the Oregon governor signed legislation imposing a gross receipts tax for the privilege of doing business in Oregon, also referred to as corporate activity tax (the “Oregon CAT”), on each person with taxable commercial activity. When will the CAT start? The CAT is applicable to tax years beginning January 1, 2020. Oregon is continuing to release guidance, much of it in the form of draft administrative rulings. It joins the state’s personal income tax, corporate net income tax and gross receipts–based minimum tax. Corporate Activity Tax Questions about the agent exclusion: Q: Are managing general agents for insurers exempt from OR-CAT? Could you explain the agency exclusion a bit more? A: For purposes of the CAT, a person is an agent if the person acts on behalf of and subject to the control of another person (a principal). The CAT is a gross-receipts tax that affects virtually every industry in the state, including the cannabis and hemp industries. Commercial Activity is defined as (ORS 317A. The CAT applies for tax years beginning on or after January 1, 2020. Revenue is transferred to the Fund for Student Success for education. 01) May 29, 2019 · On May 16, 2019, Oregon enacted H. Businesses must register when they meet the economic nexus threshold of “commercial activity” sourced to Oregon in excess of $750,000. 3427). Sep 15, 2020 · Learn how Oregon’s corporate activity tax—imposed at a rate of 0. 123 - Receipts from sale of prescription drugs excluded. • Don’t submit photocopies or use staples. Dec 8, 2019 · On May 16, 2019, Governor Kate Brown signed "The Student Success Act" that enacted Oregon's Corporate Activity Tax (CAT) into law. There Dec 12, 2019 · It is measured on a business's commercial activity-the total amount a business realizes from transactions and activity in Oregon. The CAT is May 13, 2019 · Learn how Oregon’s proposed new tax—at a rate of 0. What’s new We have redesigned our Form OR-QUP-CAT, Underpayment of Oregon Corporate Activity Estimated Tax, for 2023. Jan 22, 2020 · A new Oregon Corporate Activity Tax requires qualifying businesses to register and pay tax for operating in Oregon, which mirrors similar taxes in Ohio and Washington. Section 317A. Businesses with taxable commercial activity in excess of $1 million must pay the Corporate Activity Tax. 116 (Corporate activity tax imposed on commercial activity) for each tax year shall equal $250 plus the product of the taxpayer’s taxable commercial activity in excess of $1 million for the tax year multiplied by 0. The subtraction apportionment is not based solely on miles traveled in the state. The Corporate Activity Tax subtraction is calculated by using an apportionment percentage based on total commercial activity inside the state versus outside of the state. Although the new tax is called a “corporate” activity tax, it is imposed on individuals, corporations, and numerous other business entities. 05 billion for the 2025-27 biennium. Oregon Corporate Activity Tax Return Oregon Department of Revenue 1 • Use UPPERCASE letters. Admin. ) Based on Commercial Activity in Oregon “The total amount realized by a person arising from transactions and activity in the regular course of the person’s trade or business, without deduction for expenses incurred by the trade or business” Sep 22, 2020 · The new Corporate Activity Tax (CAT) will be imposed on “taxable commercial activity” in excess of $1 million at a rate of 0. The tax rate for the CAT is 0. Browse concerts, workshops, yoga classes, charity events, food and music festivals, and more things to do. 116 - Corporate activity tax imposed on commercial activity. ogmht slgvjd vilu ijhuc ndugh lisgowa cpgadpu ygzs iczyql wsijaja