Senator McLane: 5 bills to reduce CAT tax

Corporate Activity Tax (CAT) Developments
By Oregon State Senator Mike McLane,

This week in the Senate Finance and Revenue Committee, discussions on Oregon’s Corporate Activity Tax (CAT) took center stage, with key debates on its economic impact and potential reforms. As businesses and taxpayers continue to navigate the complexities of this tax, the Legislature is evaluating adjustments to ensure fairness, transparency, and economic growth.

SB 381 – Increases the exempt amount and the filing threshold for purposes of the corporate activity 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.

SB 440 – Increases the exempt amount and the filing threshold for purposes of the corporate activity tax as applicable to homebuilding contracts.

SB 490 – Increases the exempt amount and the filing threshold for purposes of the corporate activity tax.

SB 707 – Expands the exemption for receipts from the sale of prescription drugs from commercial activity subject to the corporate activity tax to include critical access pharmacies.

The discussion in the committee hearings were between the proponents that described businesses losing money or making little but having to pay taxes on the gross receipts of the business, and the opponents that argue that there should be no reduction in funding for schools.