The Department of Revenue reminds business owners that once they have more than $750,000 in commercial activity in 2021, they have 30 days to register for the Corporate Activity Tax unless they have already registered.
Registration for CAT is a one-time requirement, however, and businesses that registered in 2020 do not have to register again.
Registrations for Oregon’s Corporate Activity Tax have topped more than 20,000 in its first year. Through Wednesday, 20,546 businesses had registered for the CAT, which was created by the Oregon Legislature in 2019 to raise funding for education.
The CAT is imposed on businesses for the privilege of doing business in Oregon. It applies to all types of business entities including those located inside and outside of Oregon.
The CAT is measured on a business’s commercial activity, the total amount a business realizes from transactions and activity in Oregon.
Businesses with taxable commercial activity in excess of $1 million will have Corporate Activity Tax to pay. The tax is $250 plus 0.57% of commercial activity greater than $1 million after subtractions.
Taxpayers expecting to owe $10,000 or more for 2020 must make estimated payments. Fourth quarter 2020 estimated payments are due February 1. Returns are due April 15.
For tax year 2021 and beyond, taxpayers expecting to owe $5,000 or more must make estimated payments. Estimated payments for 2021 are due April 30, August 2, November 1, and January 31, 2022. Returns are due April 15.
Training aids to assist with registration, calculating the tax, and making payments can be found on the CAT page of the agency’s website.
Taxpayers with general questions about the CAT can email cat.help.dor@oregon.gov or call 503-945-8005.
