Tax Notes State

In May 2019, Oregon Gov. Kate Brown (D) signed into law H.B. 3427, establishing the Oregon corporate activity tax (CAT) — a gross receipts tax levied in addition to the state’s income tax.1 While the Oregon CAT is similar to the Ohio CAT (in fact, many statutory provisions are identical to those found in the Ohio CAT such that some2 may call it a copy-CAT), there are several distinctions and ambiguities, some of which may pose either opportunities or risks for taxpayers.

By way of background, the Oregon CAT is a broad-based tax on gross receipts, or commercial activity, computed as seen in Table 1.

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  1. An initial technical corrections bill, H.B. 2164, was enacted in July 2019, and beginning in December 2019 the Department of Revenue has issued a series of temporary regulations.
  2. Namely, the authors of this article.