Bill > SB440

This bill modifies Oregon's Corporate Activity Tax (CAT) by creating a special exemption for homebuilders. Specifically, the bill increases the tax exemption threshold from $1 million to $10 million for businesses holding a construction contractor's license that receive income from homebuilding contracts, while maintaining the $1 million threshold for all other taxpayers. The changes mean that homebuilding companies will not owe CAT if their taxable commercial activity is below $10 million, compared to the previous $1 million limit. The bill also updates related filing requirements, ensuring that businesses must file an annual return if their commercial activity exceeds the new exemption amount. These modifications 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 purpose appears to be providing additional tax relief and reducing administrative burden for homebuilding contractors by raising their tax exemption threshold.

Budget and Finance

https://olis.oregonlegislature.gov/liz/2025R1/Measures/Overview/SB440