On May 7, three amendments were posted to Oregon SB 164, which as introduced made only minor changes to a specific exclusion for certain receipts of vehicle dealers from the Oregon Corporate Activity Tax (CAT). The amendments, if incorporated into the bill, would provide clarification to insurance companies regarding Oregon’s “in lieu of” provision and fix the “fiscal year” issue that has been plaguing many taxpayers since the CAT was enacted in 2019.
Specifically, the -5 and -6 amendments both provide clarifying language regarding Oregon’s in lieu of provision, making clear that the provision does apply to non-Oregon insurance companies for purposes of the CAT. Both amendments include identical language as it relates to the in lieu of provision, but the -5 amendment provides further clarification for the exclusion for certain receipts for vehicle dealers and the -6 amendment does not. The -7 amendment, if passed, would provide a fix for fiscal year filers. The -7 amendment would require fiscal year taxpayers to file a short year return for 2021 (from 1/1/2021 to the end of a taxpayer’s 2021 fiscal year), and, for 2022, such taxpayers would file using their fiscal year period. Thus, for fiscal year 2022, affected taxpayers’ filing calendars will mirror their Oregon excise tax filing calendar.
With these amendments, it is now clear SB 164 is the CAT “technical corrections” bill to watch. The Senate Committee on Finance and Revenue will hold a hearing on the bill today (Monday, May 10).