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Bill > HB2177


OR HB2177

OR HB2177
Relating to exempt amount under corporate activity tax; prescribing an effective date.


summary

Introduced
01/13/2025
In Committee
01/17/2025
Crossed Over
Passed
Dead
06/27/2025

Introduced Session

2025 Legislative Measures

Bill Summary

The statement includes a measure digest written in compliance with applicable readability standards. Digest: Raises the exemption and filing thresholds for the CAT. Starts with the tax year 2026. Becomes law 91 days from sine die. (Flesch Readability Score: 72.4). Increases the exempt amount and the filing threshold for purposes of the corporate activity tax. Applies to tax years beginning on or after January 1, 2026. Takes effect on the 91st day following adjournment sine die.

AI Summary

This bill modifies Oregon's Corporate Activity Tax (CAT) by raising the exemption and filing thresholds from $1 million to $5 million for tax years beginning on or after January 1, 2026. Under the current law, businesses were required to pay a tax of $250 plus 0.57% on commercial activity exceeding $1 million, but this bill increases that threshold to $5 million, effectively reducing the tax burden on smaller businesses. The bill also updates the filing requirements, ensuring that only businesses with taxable commercial activity above $5 million must file an annual return by the 15th day of the fourth month following the end of the tax year. The legislation will take effect 91 days after the 2025 regular session of the Oregon Legislative Assembly adjourns sine die (without setting a future date for another meeting), which provides clarity and advance notice to businesses about the upcoming tax changes.

Committee Categories

Budget and Finance

Sponsors (1)

Last Action

In committee upon adjournment. (on 06/27/2025)

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