Oregon Department of Revenue's Corporate Activity Tax Roadshow

Oregon Department of Revenue's Corporate Activity Tax Roadshow

On September 18, 2019, the Oregon Department of Revenue announced it would facilitate 12 meetings in different regions of the state to talk with businesses, tax planners and preparers, and other stakeholders regarding the rulemaking process for the new Corporate Activity Tax (CAT). We attended some of these meetings to better understand the comments from department officials and the concerns being raised by a variety of stakeholders.

The Department announced it will be relying on its authority to issue temporary administrative rules to stand up the new tax. The temporary nature of the rules is needed to allow the department time to engage with stakeholders, identify priorities and promulgate the most important rules before the tax becomes operative on January 1, 2020. The Department said the temporary rules will come in three batches and be rolled out on January 1, February 1 and March 1. The Department intends to issue permanent rules during the summer of 2020. These rules are expected to revise any issues in the temporary rules and conform to any technical corrections adopted by the legislature during the legislative session beginning on February 3, 2020.

The Department opened the discussion for stakeholders to raise questions and concerns about the coming rules. Topics discussed included the registration and filing for unitary groups, method of accounting, tax year, unattributable cost inputs for the subtraction, and timing issues, among others.

The Department concluded the meetings by announcing a second round of stakeholder meetings that will be facilitated on conference calls and webinars. The Department intends for these meetings to serve as a forum for additional conversations and to include out-of-state taxpayers, anticipating their questions may be different than those raised by in-state stakeholders.