Oregon Enacts New Gross Receipts Tax

Effective January 1, 2020, Oregon has enacted legislation that imposes a new gross receipts tax (corporate activity tax) on certain businesses. The legislation imposes on businesses a flat $250 tax plus a 0.57% tax on Oregon gross receipts over $1 million. The tax is not owed if the business’s taxable commercial activity does not exceed $1 million. The corporate activity tax is an annual privilege tax for the calendar year and should be remitted quarterly to the Department of Revenue (DOR). The annual return must be filed by April 15 of the following year. The tax is due and payable to the DOR quarterly for the previous calendar quarter. A taxpayer can subtract from commercial activity sourced to Oregon 35% of the greater of the following amounts paid or incurred by the taxpayer in the tax year:

  • The amount of cost inputs; or
  • The taxpayer’s labor costs

(H.B. 3427)

Posted on November 26, 2019