Bill > SB490

This bill modifies Oregon's Corporate Activity Tax (CAT) by raising the exempt amount and filing threshold from $1 million to $5 million for businesses. Specifically, the legislation changes two key provisions: first, the corporate activity tax calculation will now only apply to taxable commercial activity exceeding $5 million (instead of the previous $1 million threshold), and second, businesses will only be required to file an annual tax return if their commercial activity surpasses $5 million. The tax rate remains unchanged at 0.57 percent, and businesses will still owe a base $250 tax. These amendments 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 changes effectively reduce the tax burden on smaller businesses by increasing the threshold at which they must pay and report the Corporate Activity Tax.

Budget and Finance

https://olis.oregonlegislature.gov/liz/2025R1/Measures/Overview/SB490