Lawmakers in Oregon are in the final days of their 35-day “short” session and are considering substantive changes to the Corporate Activity Tax. Over the past several months, a group of representatives from the Oregon Department of Revenue, legislative committee staff, and taxpayer groups have been working to identify and address statutory irregularities. Several issues have been identified that, without clarification, would constitute a significant departure from our understanding of the law.
On Thursday, February 20, the Oregon House Revenue Committee advanced a measure codifying these recommendations into law. If enacted, the measure would make changes to the following provisions:
These changes to the tax law were approved by a unanimous vote of the committee but the bill faces significant political uncertainty for the remainder of the session. Republicans in the state legislature have walked out of the capitol over a controversial bill regulating the state’s greenhouse gas emissions. If the walkout continues through 11:59 pm on March 8, the constitutional deadline for adjournment, the bill will not become law.