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Oregon Corporate Activity Tax (CAT) Bills to Watch

February 10, 2020 | By | No Comments

The 2020 Oregon legislative session is underway. There are a few bills that have been introduced that, if they pass both the House and Senate and become law, would make changes to the Oregon Corporate Activity Tax (CAT).

HB 4009 – Proposes the following fixes and changes:

  • Specifies that out-of-state vehicle dealers are also entitled to exclude registration fees and taxes collected the same as Oregon vehicle dealers
  • Defines returns and allowances as those defined under Internal Revenue Code §448
  • Clarifies that cost inputs and labor costs will be apportioned based on the ratio of Oregon Commercial Activity/United States Commercial Activity
  • Limits registration to one time rather than annually and provides for circumstances when a unitary group makeup changes

HB 4138 – Would exempt prescription drugs from the CAT

HB 4154 – Would exempt receipts from the sale of agricultural, floricultural, horticultural, viticultural, or food products. This is a one-line exemption and does not define the terms and if passed would require rules to define the terms.

Stay tuned to our Corporate Activity Tax Blog for more updates as the Oregon legislative session unfolds. We are currently monitoring these and any new bills that may arise during this session.