Bill > SB762

This bill proposes to repeal the Corporate Activity Tax (CAT), a business tax in Oregon, effective for tax years beginning on or after January 1, 2026. Specifically, the bill eliminates multiple Oregon Revised Statutes (ORS) sections related to the CAT, which was originally established in 2019. The repeal will impact how the Fund for Student Success is funded, removing a previous provision that transferred CAT-related revenue changes to the fund. The bill also adjusts language in the Fund for Student Success statute to remove references to the CAT. Importantly, the bill specifies that the repeal and related amendments will apply to tax years starting January 1, 2026, and 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 CAT after the 2025 tax year, potentially reducing the tax burden on corporations operating in the state.

Budget and Finance

https://olis.oregonlegislature.gov/liz/2025R1/Measures/Overview/SB762