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. All businesses with $750,000 or more of commercial activity in Oregon must register for the CAT with the Oregon Department of Revenue. Businesses must register within 30 days of reaching that threshold or face a penalty. Businesses can register on the Department’s website, which also has helpful guidance for taxpayers. The tax is applied to commercial activity that exceeds $1,000,000 after allowed deductions of 35% of cost inputs or labor costs. The tax is $250 plus 0.57% of gross receipts greater than $1,000,000. If a business anticipates it may have a tax liability of more than $5,000, the business must pay quarterly estimated tax payments, with the first payment due on April 30. Please contact our office if you have questions concerning the CAT and how to comply.
Caleb Williams is a partner in the Business & Taxation Law practice group and the Agri-Business and Wine, Beer & Cider industry groups. The information in this article is not intended to provide legal advice. For professional consultation, please contact Caleb Williams at firstname.lastname@example.org at Saalfeld Griggs PC. 503.399.1070. © 2020 Saalfeld Griggs PC