Posted on 01/24/2020 3:25:24 PM PST by Twotone
The 2019 Oregon Legislature established a new tax affecting all firms that do business in Oregon. While it is called by its misnomer the “Corporate Activity Tax,” the CAT actually applies to most types of organizational entities such as partnerships, individuals, limited liability companies, and trusts that have commercial activity generated in Oregon in the regular course of their trade or business. It is a tax paid annually for the privilege of doing business in Oregon. Initial expectations are that it will raise about $1 billion in new revenue annually. These funds are to be set aside for exclusive use for education and school purposes.
By now, every business in Oregon should have received a generic letter from the Oregon Department of Revenue alerting them to this new tax. This letter is a helpful primer on the CAT, but is not incredibly useful in figuring out the impact on each business’s specific situation. As is usual with all tax law, the devil is in the details.
How did the Corporate Activity Tax come about? In May 2019, the Oregon Legislature passed HB 3427. In this bill, it established the CAT as the primary mechanism to fund the new Fund for Student Success. Then in June 2019, the Legislature passed HB 2164 which provided technical corrections to HB 3427. As a follow up, the Department of Revenue held informational and listening sessions around the state through the last half of 2019. In December 2019, the Department of Revenue issued 12 temporary rules related to this new tax. The agency intends to release additional temporary guidance through March 2020.
(Excerpt) Read more at cascadepolicy.org ...
Yeah, I’m sure this is going to end well.
“These funds are to be set aside for exclusive use for education and school purposes.”
Does anyone with above a two digit IQ believe ANYTHING coming from a liberal gubmit?
Give me a break.
In any case, to liberals, “education” does not mean what those of use with real educations know it means.
If you have a business you have a partner: the state. This partner tells you how to run your business. It takes a piece of the business’s assets even before the business has made a profit!
It doesn’t lift a finger to help. It just takes.
The final blow is the tax on inventory, and machinery used to produce a product. A tax on the means of production.
If you are able to take home some money after all that, you have the self employment tax and the income tax.
Then they have the nerve to say they’re business friendly.
Backfilling the PERS deficit for the teachers and administrators, no doubt.
You underestimate the deviousness of Kate Brown. That’s exactly what it’ll be used for. But the money that was going to be used for education and school purposes will be spent elsewhere.
That great sucking sound are those businesses leaving.
LOL! I wouldn’t sell shit to Oregon customers unless I added a fee to cover their “CAT” tax. And spell that out to my customers.
Which should be followed shortly by the stampede of Red State, tax credit laden legislative assistants going after Oregon businesses to relocate.
My buddy was just told by his accountant his taxes are going up $12,000 on 3 million in gross revenue.
“It’s for the children.”
The jingle writer who always took home the awards while Charlie Harper was always the runner up.
My exact thoughts. I read the whole article. It's complicated and an incentive for any medium to large company to leave Oregon. The threshold is $1 million of gross revenue, which could catch many farmers. There are deductions, but everything is quite complicated. They also slipped in a use tax, which is a sales tax on anything purchased out of state. I think that's against the Constitution, which forbids states from taxing imports, but I can't fight them.
For the first time in a long time I'm glad I live in Illinois, not Oregon.
For the first time in a long time I’m glad I live in Illinois, not Oregon.
Remember the soda tax in Cook County? The State of Hawaii instituted it, they’re loving it. Businesses that can’t leave will pass it along, and if enough businesses survive, look for it to spread.
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