by Don Lance
The Oregon Commercial Activity Tax (CAT) took effect on January 1, 2020, and you have likely have received notification from the State that includes guidance on how to register for this tax. The following is intended to serve as a reminder and provide further guidance on this matter.
Taxpayers must register for the CAT no later than 30 days after their Oregon commercial activity exceeds $750,000 for the year. Oregon’s commercial activity is generally sales to customers located in Oregon. A penalty of $100 per month, not to exceed $1,000 for a calendar year, can be imposed for failure to register when required. You can click on the CAT Registration link at the Oregon Department of Revenue’s website at https://www.oregon.gov/DOR/programs/businesses/Pages/corporate-activity-tax.aspx to register.
The screenshots below show what you will see as you work your way through the registration screens on the Department’s website, as well as some notes on specific screens.
Many companies are choosing to register at this time even if their sales will not exceed the threshold until later in the year. This prevents the chance of forgetting. However, waiting makes sense if you are not sure that your Oregon commercial activity will exceed this threshold during 2020.
While the first CAT tax return will not be due until April 15, 2021, quarterly estimated tax payments are due on the last day of the month that follows the end of each quarter if your tax liability for the year is expected to be $5,000 or more. This means that the first quarterly payment would be due on April 30, 2020.
If you have any further questions on this issue or need assistance in the registration process, please contact your tax advisor and we will be happy to help.