Can Oregon cat tax be passed on to customers?

FAQ: Can we include the CAT tax on our customers’ bill? … The legislation that established the CAT (Oregon Laws 2019, Chapters 122 and 579) does not specifically prohibit a business from passing on additional cost of the tax.

Who is subject to or CAT tax?

The calendar year is the tax year for all taxpayers, irrespective of their income tax fiscal year. A taxpayer is subject to the CAT for doing business during any portion of such calendar year, although, as stated above, only taxpayers with “taxable commercial activity” in excess of $1 million will be subject to CAT.

What is the Oregon cat tax?

The Basics of the Tax

The new Corporate Activity Tax (CAT) will be imposed on “taxable commercial activity” in excess of $1 million at a rate of 0.57%, plus a flat tax of $250.

Is the Oregon cat tax deductible?

The Oregon CAT allows for a routine deduction of some costs of doing business, resulting in a downward adjustment of the tax base. Therefore, the Oregon CAT is not based solely on gross receipts of business activity, and it does not qualify as a gross receipts tax eligible for the MATC (RCW 82.04.

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Can you file Oregon cat tax online?

With approved third-party software, you can e-file your return with all schedules. You can also conveniently include an electronic payment with your e-filed original return. See “E-file.” Corporate Activity Tax (CAT) was established during the 2019 regular session in HB 3427 and HB 2164.

Is rental income subject to Oregon cat tax?

Rental Income is subject to the New CAT Tax beginning January 1, 2020. Rental Property is sourced to Oregon if the property is located in Oregon. … Thus, rental companies may be only allowed the deduction for payroll costs incurred.

What does cat tax mean?

In the world of actual taxes (you know, the kind you pay with actual money), CAT stands for Capital Acquisitions Tax, which is a kind of gift or inheritance tax in Ireland. Back in Ohio, a CAT tax is a Commercial Activity Tax.

Who Must File Oregon cat tax?

​Business or unitary group with Oregon commercial activity in excess of $750,000 must register for the CAT. ​Business or unitary group with Oregon commercial activity in excess of $1 million must file a return. What is the Corporate Activity Tax (CAT)?

Who pays Oregon corporate activity tax?

Only taxpayers with more than $1 million of taxable Oregon commercial activity will have a payment obligation.

How much are property taxes in Oregon?

Oregon has property tax rates that are nearly in line with national averages. The effective property tax rate in Oregon is 0.90%, while the U.S. average currently stands at 1.07%.

Does Oregon have a 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.

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How do I file a CAT return?

Filing resources

  1. TeleFile – TeleFile is a quick and easy method to file and pay your CAT annual tax return. The phone number for our TeleFile system is 1.800. 697.0440. …
  2. Please direct any questions to the Business Tax Division at 1.888. 722.8829.


What is the Oregon privilege tax?

The vehicle privilege tax is a tax on selling new vehicles in Oregon. The vehicle use tax applies to Oregon residents and businesses that purchase vehicles outside of Oregon. Starting January 1st, 2018, 0.5 of 1 percent will be due on the retail price of any new taxable vehicles.

How is a cat calculated in Oregon?

One method of determining the ratio is to take your commercial activity in Oregon (amount on line 1) divided by the total of your commercial activity everywhere plus commercial activity that was excluded. Enter this amount as a decimal on line 3.

Is Oregon cat an income tax for ASC 740?

While Oregon does not deem the CAT to be an income tax, it appears to qualify as an income tax under ASC 740. … Even though the tax is not applicable for tax years beginning before January 1, 2020, taxpayers should begin considering the impact of the CAT on their deferred tax calculation as of the enactment date.

What is considered commercial activity in Oregon?

Taxable commercial activity means commercial activity sourced to Oregon, less a subtraction of 35 percent of the greater of labor costs or cost inputs. Commercial activity means the total amount realized from transactions and activity in the regular course of a person’s trade or business.

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