Bill > SB381

This bill modifies Oregon's Corporate Activity Tax (CAT) by raising the exempt amount and filing threshold from $1 million to $5 million for each tax year, beginning January 1, 2026. Under the revised law, businesses will only owe the CAT if their taxable commercial activity exceeds $5 million, and the tax calculation will remain the same: $250 plus 0.57 percent of commercial activity above the $5 million threshold. Additionally, the bill updates filing requirements, stipulating that businesses with commercial activity over $5 million must file an annual tax return by the 15th day of the fourth month following the end of the tax year. The bill will take effect 91 days after the adjournment of the 2025 regular legislative session, providing businesses with a higher threshold for tax liability and potentially reducing the tax burden for smaller and mid-sized companies.

Budget and Finance

https://olis.oregonlegislature.gov/liz/2025R1/Measures/Overview/SB381