Login Subscribe
Policy Insights 1 min read

Oregon CAT Part II: Fixes Needed to Ease Administration

There remain critical obstacles in implementing the C.A.T. that, if not addressed through legislation, will fester in audits and appeals for years.
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.

📰
To read the article, “Oregon CAT Part II: Fixes Needed to Ease Administration,” click here.

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.

You might also like...

Jun
16
Oregon Poised to Sunset Federal SALT Workaround

Oregon Poised to Sunset Federal SALT Workaround

Oregon may become the only state in the nation to unwind its workaround to the federal state and local tax deduction, unexpectedly catching taxpayers and accountants by surprise.
4 min read
Apr
14
Washington's Capital Gains Could Present Tax Challenges for Some Oregonians

Washington's Capital Gains Could Present Tax Challenges for Some Oregonians

Despite nearly a century of legal precedent to the contrary, the Washington State Supreme Court recently blessed a capital gains excise tax. The creative tax means the state begins its journey into income taxation. For Oregonians, however, it could spell higher Oregon tax bills.
5 min read
Mar
06
Restoring & Enhancing Oregon's R&D Tax Credit: A Primer

Restoring & Enhancing Oregon's R&D Tax Credit: A Primer

Restoring and enhancing Oregon's research and development (R&D) tax credit is among the legislature's most consequential opportunities to promote growth.
7 min read
Feb
21
Multnomah County Could Become the Only Jurisdiction in the World to Impose Two Capital Gains Taxes

Multnomah County Could Become the Only Jurisdiction in the World to Impose Two Capital Gains Taxes

If voters approve the latest Multnomah County tax proposal, the county could become the only jurisdiction in the world levying two capital gains taxes.
3 min read
Nov
16
Despite Economy, Voters Approve Funding Measures

Despite Economy, Voters Approve Funding Measures

70 percent of local funding measures were approved by voters, suggesting that Oregonians remain willing to open their pocketbooks for services within their communities.
5 min read