New Corporate Activity Tax

New Corporate Activity Tax

In 2019, the Oregon Legislature established the Corporate Activity Tax (CAT) through House Bills 3427 and 2164. The CAT is expected to generate $1 billion of revenue per year. All net revenue from the CAT will be transferred to the Fund for Student Success, separate from the General Fund, and must be used for education and school purposes.

The new law requires businesses with Oregon commercial activity in excess of $750,000 to register for the Corporate Activity Tax. Businesses with Oregon commercial activity in excess of $1 million are required to file a CAT return. Businesses with taxable commercial activity in excess of $1 million must pay the Corporate Activity Tax. The CAT imposes a $250 tax on the first $1 million of gross receipts after subtractions and 0.57% tax on gross receipts greater than $1 million after subtractions.

Please be aware that the Corporate Activity Tax:

• Is effective January 1, 2020.
• Applies to any business entity that conducts business in Oregon.
• Requires returns to be filed using a calendar tax year.
• Applies to all business entity types including C and S corporations, partnerships, sole proprietorships, and others.
• Requires combined filing in some circumstances.
• Requires registration within 30 days after exceeding the $750,000 registration threshold. Early registrations will be accepted. Beginning in early 2020, you can register electronically through Revenue Online.

Requires returns to be filed annually by April 15.

Requires estimated tax payments which are due April 30, July 31, October 31, and January 31 for the preceding quarter for those with an estimated tax payment requirement.

 

Please contact our office should you have any questions.

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