Four more administrative rules governing Oregon’s new Corporate Activity Tax (CAT) were officially filed with the Secretary of State effective February 1.
The temporary rules can be found on the Secretary of State’s website: secure.sos.state.or.us/oard/processLogin.action. Rules for the CAT can be found by searching current rules for Chapter 150, Division 317.
“By filing this group of rules, we move closer to the completion of the temporary rulemaking process. We will soon begin the permanent rulemaking process, which will include the opportunity for additional public comment and input,” said Nia Ray, director of the Oregon Department of Revenue. “The DOR intends to support taxpayer compliance by providing rules that are accessible and easily understood.”
The rule numbers and the subject matter they address include:
- 150-317-1410 Vehicle dealer trade certificate.
- 150-317-1400 Determining property resold out of state, and methods of determining.
- 150-317-1150 Retail sale of groceries exclusion.
- 150-317-1140 Wholesale sale of groceries exclusion.
The four new rules bring the total of administrative rules adopted for the CAT to 16. Twelve initial temporary rules were filed January 1. One more set of temporary rules will be filed in March.
Temporary rules can only be in effect for 180 days and Revenue officials said they will begin the permanent rulemaking process on April 1. That process includes an official period for public comment and a public hearing, giving business taxpayers and tax professionals another opportunity to provide input into the rules before they become permanent.
The new law requires businesses with Oregon commercial activity in excess of $750,000 to register for the CAT. Once they reach that threshold, businesses must register within 30 days. Some businesses may have reached the threshold early in January, while others might not top that mark until much later in the year.
Registration for the CAT opened in early December 2019 and more than 4,600 businesses have already registered through Revenue Online on the agency’s website at oregon.gov/dor.
The 2019 Oregon Legislature created the CAT, which is imposed on businesses for the privilege of doing business in Oregon. It applies to all business entities including those located inside and outside of Oregon. It is measured on a business’s commercial activity — the total amount a business realized from activity in Oregon.
Businesses with taxable commercial activity in excess of $1 million must pay the CAT. The tax is $250 plus 0.57 percent of taxable commercial activity greater than $1 million after subtractions.
Visit oregon.gov/dor to get tax forms, check the status of your refund or make tax payments; call 800-356-4222 toll-free from an Oregon prefix (English or Spanish); 503-378-4988 in Salem and outside Oregon; or email questions.dor@oregon.gov. For TTY (hearing or speech impaired), call 800-886-7204.
