SB 381 and SB 490 increases the exempt amount and the filing threshold for the corporate activity tax (CAT). Applies to tax years beginning on or after January 1, 2026. Takes effect on the 91st day following adjournment sine die.
A tax is not owed under this section if the person’s taxable commercial activity does not exceed [$1 million] $5 million.
Testimony Taxpayer Association or Oregon
The CAT tax, as a revenue-based tax instead of a profit-based tax (like most taxes in America) ends up slamming businesses that are not making a profit or that are on the verge of bankruptcy. During a recession, a CAT tax is most unforgiving and painful. We hate to see what happens when Oregon faces its next recession and how destructive this tax will truly be when it cripples already crippled businesses.
The CAT tax adds to the cost of living, and since Oregon continues to rate in the top 10 highest cost-of-living states in America, it is clear that the CAT tax contributes to a massive collective high-cost misery to everyday Oregonians who struggle to pay bills, buy groceries and buy medicine. Speaking of medicine, the CAT tax killed lots of pharmacies in our state.
SB 440, which increases the exemption for home builders to $10 million.