July 18, 2019
We wanted to update you on a recent development in Oregon’s gross receipts tax.
Several weeks ago, we notified you regarding a bill that had passed the Oregon legislature which levies a gross receipts tax on businesses with gross receipts over $1 million. The tax is $250 plus 0.57% of sales over that $1 million mark. A subtraction of 35% of the greater of labor costs or cost of goods sold is available to be taken against gross receipts before applying the 0.57% calculation.
Today, the Oregon Manufacturers & Commerce organization issued a statement that it will abandon the fight against this bill. The organization cited several roadblocks, including difficulty in obtaining petition forms, a vote by the legislature to move a proposed election to January 2020 instead of the following November, and corrections passed late in the session which the opponents said were significant enough that they would require a second repeal effort later.
Following is a link to the full article that appeared in The Oregonian: https://www.oregonlive.com/business/2019/07/manufacturers-abandon-effort-to-repeal-new-1-billion-oregon-business-tax.html?utm_source=facebook&utm_campaign=theoregonian_sf&utm_medium=social&fbclid=IwAR2spsfIAaZZgeq3xNcsq9O-JW019uCWvar_633c9MuHLD9wpxfwCrTgpA4
SGA will continue to monitor the Department of Revenue for specific instructions for calculation of the tax and reporting mechanisms not yet available. Once they provide us with that information, we will be able to provide you with information relating to the law’s effect on your specific situation. As always, please reach out to one of our staff if you have any questions.
In August, we let you know about the new Oregon Corporate Activity Tax (CAT). We have a few more details to share, and several items that are still “in process” per the Oregon Department of Revenue (ODOR).
As a reminder, the Oregon legislature passed a bill levying a new tax on businesses with gross receipts over $1 million. In general, the tax is calculated by...
Last week, SGA received some clarification regarding the Oregon Commercial Activities Tax (CAT), the recently passed gross receipts tax that we told you about earlier this summer.
Oregon Department of Revenue (ODOR) hosted a two-hour webinar to discuss the tax. The following information is what we now have available to pass along to you. In review, the Oregon legislature passed...
Although the original tax filing deadline has come and gone, extension deadlines will be here before you know it. As you know, your returns are currently on extension.
If you have provided us all the information to complete your returns, thank you! We'll be in touch soon with any additional questions we may have prior to finishing your returns.