Throughout the 2023 session, we are sharing highlights on key issues and Chamber priorities from Salem. This week, we’re focusing on tax and fiscal policy, specifically proposed changes to the Corporate Activities Tax.
Last week, the Legislature met their first significant deadline. This was the date by which bills in policy committees needed to be scheduled for a vote in those committees to stay alive. There are procedural mechanisms to go around this deadline with Leadership approval, but the field of active bills is significantly culled. At last count 1,700 bills out of the nearly 3,000 introduced are still pending action. Two bills addressing changes to the Corporate Activities Tax are still under consideration.
This session the Chamber is tracking over 125 bills in a variety of issue areas from economic development and tax reform to childcare and housing issues. In short, there is a lot under discussion in Salem. This week we’re focusing on the Corporate Activities Tax commonly known as the “CAT tax.”
Since the passage of the Corporate Activities Tax in 2019, businesses across the state have weathered the challenges of a global pandemic, workforce shortages and economic uncertainty. This session the Legislature is engaging in earnest discussion about the CAT tax and its impact on Oregon’s business community.
Currently corporate taxpayers with more than $1 million of taxable Oregon commercial activity have a payment obligation. The proposed increase in the filing and taxation threshold to $5M in commercial activity proposed in this legislation would provide much needed tax relief to small businesses in our community, and truly make a difference in their sustainability.
We’re Asking for Your Help!
Please reach out to your elected officials and share how the CAT tax has impacted your business, and more importantly the economic activity and jobs that could be created if your business was no longer subject to the tax. Our partners at the Oregon State Chamber of Commerce have an easy-to-use advocacy tool to help you craft your message. Click here for more information.
We believe small businesses are the cornerstone of our local economy; their ability to survive and thrive has long-reaching impacts throughout the community. Your voice is critical to keeping these bills alive!