Bill > HB2118

This bill amends Oregon's Corporate Activity Tax (CAT) law to exempt all agricultural production crops classified under the Standard Industrial Classification system (code 01) from being considered commercial activity subject to taxation. Currently, only specific agricultural sales like farmer sales to agricultural cooperatives or fluid milk sales by non-cooperative dairy farmers are exempt. The exemption will apply to tax years beginning on or after January 1, 2026, and the bill will take effect 91 days after the 2025 legislative session adjourns. The Corporate Activity Tax is a tax imposed on businesses based on their total commercial activity, and this amendment specifically targets agricultural producers by removing their crop sales from the taxable commercial activity calculation. This change is designed to provide tax relief for farmers and agricultural producers by reducing their tax burden under the state's corporate activity tax system.

Budget and Finance

https://olis.oregonlegislature.gov/liz/2025R1/Measures/Overview/HB2118