The Act would repeal the CAT. Repeals the corporate activity tax. Applies to tax years beginning on or after January 1, 2026. Takes effect on the 91st day following adjournment sine die.

The CAT is not a transactional tax like a sales tax; instead, it is imposed on Oregon sales regardless of where the sale originates, potentially leading to higher costs for consumers as businesses may pass these increased costs onto their customers. The benefits of the CAT tax for the state include increased funding for education and other public services. However, for businesses, the tax can be seen as an additional financial burden.

The CAT tax was intended to fund deficiencies in education and childcare, but it has developed new projects going beyond filling in to boost a failing system. As a result, education is still failing and it’s contributing to many businesses leaving the state or closing doors. Most notable is pharmacies closing their doors.

EMAIL COMMITTE TO REQUEST A HEARING

Sen.MarkMeek@OregonLegislature.gov
Se.MikeMcLane@OregonLegislature.gov
Sen.DebPatterson@OregonLegislature.gov
Sen.BruceStarr@OregonLegislature.gov
Sen.KathleenTaylor@OregonLegislature.gov