Is Your Business Subject to the new CAT Tax?

Dear Corporate Activity Tax stakeholder:

General guidance on how to calculate a business’s Corporate Activity Tax (CAT) liability has been added to the FAQ on the CAT page of the Oregon Department of Revenue’s website atwww.oregon.gov/dor.

The guidance uses two hypothetical examples and includes what information a business will need to figure its CAT liability and how to use the labor or cost subtraction.

Three other new frequently asked questions and answers have been added to the CAT page. The CAT FAQ includes high level summaries of the first rules and topics which will help taxpayers comply with the law.

The subjects covered by the new FAQ are:

  • Are motor vehicle dealer trades excluded from the CAT? 
  • Can I pass the CAT on to my customers?
  • How do I estimate the amount of the CAT attributable to a sale?

Registration reminder

Registration for the CAT opened earlier this month through the Department of Revenue’s Revenue Online system found atwww.oregon.gov.dor.

The new law requires businesses with Oregon commercial activity in excess of $750,000 to register for the Corporate Activity Tax. Once they reach that threshold businesses must register within 30 days. Businesses can choose to register early.

To register, individuals doing business in Oregon will need their name, and their social security number or individual taxpayer identification number. Businesses will need their legal name and federal employer identification number. 

Businesses and individuals will need:

  • Their mailing address;
  • The date they exceeded or expect to exceed $750,000 in Oregon commercial activity;
  • A valid email address or current Revenue Online login, and;
  • Their Business Activity Code (Refer to the current list of North American Industry Classification System codes found with their federal income tax return instructions.)

Those with additional questions are urged to email their questions to cat.help.dor@oregon.gov.

Follow @ORrevenue on Twitter.

Thank you,

Corporate Activity Tax Policy Team

Oregon Department of Revenue

cat.help.dor@Oregon.gov