The New Corporate Activity Tax

Industry-Specific Webinars to Help You Understand the Corporate Activities Tax
ORLA will host two members-only informational webinars on Nov. 19 and Dec. 3, each at 1:30 pm. Rob O’Neill is a tax expert with accounting firm Moss Adams LLP in Portland who has been working closely with the Department of Revenue that was tasked with implementing the new tax. Rob will explain the basics of this new tax, the Department’s implementation plans and what you can expect as a business owner. He will also provide some best tax practices for our industry. If you or someone from your company plans to join this webinar, please Register Now and we will send you the webinar link and conference line.​

DOR Website Includes FAQs
Oregon Department of Revenue’s website in a newly updated list of frequently asked questions (FAQs). Understanding what stakeholders needed to know helped members of the agency’s CAT team craft better, more complete answers to the most asked questions. FAQs have been made available to business taxpayers, tax preparers and the public on the Oregon DOL website.
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FREE WEBINARS
ORLA members can sign up for one of two webinars on the Corporate Activities Tax:

• Tues., Nov. 19 @ 1:30 pm 
  
• Tues., Dec. 3 @ 1:30 pm

REGISTER NOW

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Click image to download CAT calculator example.

Calculating the Corporate Activity Tax (CAT)
The Corporate Activity Tax is complicated and calculating your potential tax can be confusing. Therefore, ORLA has created a CAT calculator example to help our members understand how to calculate the tax. This exercise is only meant to help you project what your tax liability could be next year based on your sales in 2018. As always, please be sure to consult your tax advisors.

Corporate Activities Tax Passed in the Legislature
The Corporate Activity Tax was one of the 2019 Legislative Session bills having the biggest impact on businesses. ORLA was opposed to this bill as it raised taxes on corporate activity for businesses with gross revenues of over one million dollars. ORLA, along with others in the business community, was able to amend the original bill to include a deduction for labor or cost of goods sold. The association will work during the rule making session to ensure hospitality businesses will be able to include the tax increase on receipts so customers can see the impact of the tax.

​According to Oregon's Department of Revenue, the Corporate Activity Tax is imposed only after a taxpayer exceeds $1 million of taxable commercial activity. Once they pass that threshold, the tax is $250 plus 0.57% on gross receipts greater than $1 million after subtractions. Proceeds of the tax are directed by statute to boost funding for public schools. Some key points to know:

• The tax begins on January 1, 2020. It includes all business entity types, including C and S corporations, partnerships, sole proprietorships, etc.
• CAT returns will be due each year on April 15. Estimated payments for the CAT will be due quarterly on the last day of April, July, October, and January.
• You must register within 30 days of when you are aware you will hit the $750,000 registration requirement. If you do not register, there may be a penalty of $100 per month up to $1,000 per year.
• According to the Department of Revenue, temporary rules will be published January – March 2020, with permanent rules being established April – June of 2020. Items identified as “critical” by the Department of Revenue will be posted first in January, including instructions for estimated payments, calculations, and registration.
• More information on Oregon.gov/DOR. You can provide input any time by emailing DOR at cat.help.dor@oregon.gov

DOR Requests Industry Input in CAT Rule Making
The Department of Revenue (DOR) held a series of town hall meetings across the state in September-October to seek input from business taxpayers about the administrative rules for Oregon’s new Corporate Activity Tax (CAT). Hospitality industry members were encouraged to join ORLA at one of these meetings and share their concerns about the tax and ask questions. 

• DOR's CAT Town Hall Schedule

If you have any questions, please email Greg Astley, Director of Government Affairs, at Astley@OregonRLA.org.​ ​​

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