Corporate Activities Tax Enacted in Oregon

Date: June 05, 2019

Related Content: News Economy Labor Oregon Taxes

Gov. Kate Brown signed H.B. 3427 into law on May 16.

The corporate activities tax is here to stay. Oregon Gov. Kate Brown signed into law legislation establishing an annual Corporate Activity Tax (CAT) based on commercial activity conducted by businesses. The law takes effect Jan. 1, 2020.

The CAT is imposed at a 0.57 percent rate on taxable receipts from Oregon consumers above $1 million. Taxpayers with fewer than $1 million in receipts are exempt.

Following the 18-to-11 state Senate passage of House Bill 3427, NFIB’s Oregon State Director Anthony Smith issued the following statement:

“No one who runs a business and has to meet a payroll is fooled by this bill,” said NFIB’s Oregon State Director Anthony Smith, following the legislation’s state Senate passage. “The so-called Corporate Activities Tax passed yesterday is a gross receipts tax, which is a hidden sales tax in disguise. It won’t show up on a customer’s receipt, but they will pay it when a product is taxed at each stage of the supply chain. Most irritatingly, a gross receipts tax is paid by businesses whether they make a profit or not. The state gets paid first, and without regard to start-up costs or profit margins.”

Related Content: News | Economy | Labor | Oregon | Taxes

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