SB 1542 reduction in CAT tax

SB 1542
In Committee
Public Hearing 02/12/2024 3:00pm HR A
Status (overview) of bill:
Committee assigned to bill:

The Corporate Activities Tax is a gross receipts tax where it taxes revenue instead of profit and has been extremely punishing to businesses especially if they are losing money or in a small margin business like health care, restaurants. Senate Bill 1542 summary reads,   “Starts with tax year 2025.  Increases the exempt amount and filing threshold for purposes of the corporate activity tax. Exempts reimbursements for certain health care services, including care provided to medical assistance recipients and to Medicare recipients”

Commercial activity does not include these additions:

Amounts received as reimbursement paid:
(i) For the cost of health care provided to medical assistance recipients under ORS
chapter 414;
(ii) By the Centers for Medicare and Medicaid Services or by a Medicare Advantage Plan for the cost of care provided to Medicare recipients; or
(iii) For the cost of health care provided, and paid by the Public Employees’ Benefit
Board, the Oregon Educators Benefit Board, the Children’s Health Insurance Program or the United States Department of Defense, under a TRICARE contract.

Increases threshold to $5 million, protecting small and struggling businesses.



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  1. Taxes should never be on gross receipts but on profits. Struggling small businesses don’t need this penalty to add to their operating expenses. Therefore, a reduction is thoroughly warranted. Please pass this comment onto legislators.

  2. Vote YES and stop punishing small businesses. They should never be taxed on revenue because their expenses could well surpass their profit. That’s a double whammy! Another tool for the dictators! Release the individuals from this exorbitant taxation.

  3. A reduction in gross profit tax is needed. The entire bill of taxing gross profits needs to be repealed. Taxing gross profits does not make a business more productive.

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