Bill > HB2039

This bill modifies Oregon's Corporate Activity Tax (CAT) by significantly raising the tax exemption and filing thresholds from $1 million to $10 million for businesses operating in the state. Under the new provisions, businesses will only owe the CAT if their taxable commercial activity exceeds $10 million, and the tax calculation will be based on commercial activity above that threshold. The annual tax will continue to be $250 plus 0.57 percent of taxable commercial activity over the $10 million exemption. Businesses meeting this threshold will still be required to file an annual return by the 15th day of the fourth month following the end of their tax year, with quarterly estimated tax payments due at specified intervals. These changes will apply to tax years beginning on or after January 1, 2026, and the bill itself will take effect 91 days after the 2025 legislative session adjourns. The modifications are designed to reduce the tax burden on smaller businesses by dramatically increasing the exemption level from $1 million to $10 million.

Budget and Finance

https://olis.oregonlegislature.gov/liz/2025R1/Measures/Overview/HB2039