The first quarterly payment into the Corporate Activities Tax (CAT) is due Thursday, but the Department of Revenue has added further concessions on which businesses must make payments and how strictly it will enforce non-payment.
Oregon Gov. Kate Brown asked the agency to revise OAR 150-317-1300 to exempt businesses with an estimated annual CAT liability of under $10,000 from making quarterly payments. The exemption previously only applied to businesses with under $5,000 estimated annual tax liability.
A Department of Revenue release on Wednesday further stated that the agency will not assess underpayment penalties on quarterly payments if the business doesn’t have the financial ability to make the payment, and businesses that have closed or face an uncertain future and cannot determine what it may owe in 2020 won’t be penalized for nonpayment.
Businesses that fall into these categories are asked to operate in good faith and document how COVID-19 has affected them, including:
- Their inability to pay because of insufficient funds
- Their inability to calculate a payment or tax liability because of the impacts of COVID-19
- Uncertainty to whether they will owe Corporate Activity Tax at all due to COVID-19
The CAT is a gross receipts tax on corporations with in-state revenue exceeding $1 million annually. Funds generated from the tax will be directed to schools.
For any questions or to schedule remote business advising, call the Umatilla Electric Cooperative Business Resource Center at 541-289-3000 or email uecbrc@gmail.com.
