About the tax
ORS Chapter 317A imposes a Corporate Activity Tax (CAT) on all types of business entities.
The CAT is in addition to the state's current corporate income tax. Revenue from the CAT is transferred to the Fund for Student Success and is used for education spending
The CAT is imposed on businesses for the privilege of doing business in Oregon. It is measured on a business's commercial activity, which is the total amount a business realizes from transactions and activity in Oregon. Certain items are excluded from the definition of commercial activity and, therefore, will not be subject to the CAT. In addition, Oregon's CAT allows a 35 percent subtraction for certain business expenses.
The CAT is applied to taxable Oregon commercial activity more than $1 million. The tax is computed as $250 plus 0.57 percent of taxable Oregon commercial activity of more than $1 million. Only taxpayers with more than $1 million of taxable Oregon commercial activity will have a payment obligation.
Additional information
Frequently asked questions
CAT overview FAQ
Commercial activity and exclusions FAQ
Unitary group FAQ
CAT subtraction and tax liability FAQ
Filing extensions, quarterly estimated payments, and penalty
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