On January 12, 2021, the Oregon Legislature introduced nine new Corporate Activity Tax (CAT) bills as the 2021 legislative session began.  The bills introduced in both the House and Senate ranged in scope from treatment of receipts in specific industries to modifications of provisions of the CAT more generally.

Some of the bills introduced include:

  • HB 2259 – Exempts certain medical items, including prescription drugs and medical supplies from the CAT
  • HB 2268 – Exempts small business loan interest from the CAT
  • HB 2293 – Exempts receipts from the sales of agricultural, floricultural, horticultural, viticultural or food products from the CAT
  • HB 2633 – Exempts contraction receipts for repair or rebuilding of structures destroyed or damaged by wildfires from the CAT
  • HB 2753 – Exempts certain pharmacy receipts from the CAT
  • SB 521 – Exempts certain essential goods, including prescription drugs, feminine hygiene products, diapers and baby formula, from the CAT
  • SB 522 – Directs the Division of Audits to conduct performance audits and issue recommendations for addressing risks

In addition, two bills—HB 2429 and SB 164, which include broad relating to clauses (i.e., “related to corporate activity tax”), were also introduce.  One of these two bills is expected to the vehicle for technical corrections, which we expect will include a full fiscal year fix.  As such, the Eversheds Sutherland SALT team will continue to monitor these two bills closely.