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Oregon Commercial Activity Tax

Oregon recently adopted a Commercial Activity Tax (CAT). The tax is imposed on businesses for the privilege of doing business in Oregon, including those located inside and outside of Oregon. The amount is based on a business’s commercial activity or the total amount a business realizes from activity in Oregon. The new law requires registration within 30 days of meeting the threshold of $750,000 in Oregon commercial activity. A penalty of $100 per month may be assessed for failing to register up to $1,000 per calendar year. Businesses with taxable commercial activity in excess of $1 million must pay the Corporate Activity Tax. The tax is $250 plus .57% of gross receipts greater than $1 million after subtractions. The Oregon Department of Revenue is currently in the process of writing temporary administrative rules to provide guidance and clarity regarding the new tax.

If you have additional questions regarding Oregon’s CAT, please contact your Vrakas representative or call 262.797.0400 and we will connect you with one of our professionals.