Oregon CAT Part II: Fixes Needed to Ease Administration
On April 27, Tax Notes State published an article by Nikki Dobay, Senior Counsel at the Council on State Taxation, and me on the continuing need for Oregon lawmakers to enact corrective legislation to the corporate activity tax (C.A.T.). The article accounts our review of core structural provisions in the tax law needing clarification and our efforts to collaborate with the Oregon Department of Revenue to simplify the administration and ease the compliance burden of the tax.
In February, Oregon lawmakers introduced H.B. 4009 as the vehicle to clarify the legislative intent and address ambiguities in O.R.S. § 317A. The House Revenue Committee unanimously amended and sent the measure to the house floor. It appeared to be a glide path to enactment but the session abruptly ended over unrelated politics, and practically no measures became law.
There remain critical obstacles in implementing the C.A.T. that, if not addressed through legislation, will fester in audits and appeals for years. In our article, we argue the initial corrections in H.B. 4009-A would reduce administrative burdens, facilitate taxpayer compliance, and are critical steps forward that should be taken sooner rather than later.
The article has been behind the Tax Notes paywall for the past several weeks but, with the exclusivity period over and the expressed permission from their editorial staff, I am able to republish it for anyone to read.
