Bill > HB2176

This bill proposes to repeal the Corporate Activity Tax (CAT) in Oregon, which is a tax imposed on businesses based on their gross receipts. Specifically, the bill eliminates numerous Oregon Revised Statutes (ORS) related to the CAT, effectively ending the tax for tax years beginning on or after January 1, 2026. The bill also makes consequential amendments to the Fund for Student Success, removing references to CAT revenue transfers. The Fund for Student Success, which was partially funded by the CAT, will continue to exist and receive funding from other sources, including legislative appropriations and potential gifts or grants. The bill ensures that the CAT provisions will no longer apply after December 31, 2025, and the legislation will take effect 91 days after the adjournment of the 2025 regular legislative session. This change means that businesses in Oregon will no longer be subject to the Corporate Activity Tax starting in the 2026 tax year, potentially reducing the tax burden on businesses operating in the state.

Budget and Finance

https://olis.oregonlegislature.gov/liz/2025R1/Measures/Overview/HB2176