Hearing: 2 CAT tax exemption bills

Hearing today on SB 382 and SB 125 on CAT Tax.
By Taxpayers Association of Oregon
OregonWatchdog.com

There are two bills up for a hearing in the Senate Revenue and Finance today.  Both bills deal with adding health care exemptions from the CAT Tax (Corporate Activities Tax).

SB 382: “Exempts receipts from the sale of prescription drugs by all licensed retail pharmacies from commercial activity subject to the corporate activity tax. Applies to tax years beginning on or after January 1, 2026.”
SB 125: “Exempts from commercial activity subject to corporate activity tax reimbursements for certain health care services, including care provided to medical assistance recipients and to Medicare recipients. “

Because the CAT Tax taxes revenue, it has hit the slim-profit margin industries like health care, grocery stores and restaurants very hard.