Oregon offering tax relief due to pandemic, wildfires
At the direction of Governor Kate Brown, the Oregon Department of Revenue has announced several Oregon tax relief options.
These moves are a result of the governor’s priority to keep Oregonians safe and healthy, while also providing relief and consistency for Oregon taxpayers affected by the federal and state COVID-19 emergency, wildfires, and straight-line winds.
Personal and corporate income tax
Under the authority of ORS 305.157, the director of the Department of Revenue has determined that the governor’s state-declared emergency due to the COVID-19 pandemic and the action of the IRS will impair the ability of Oregon taxpayers to take certain actions within the time prescribed by law. Therefore, the director has ordered an automatic extension of the 2019 tax year filing and payment due dates for certain affected taxpayers as indicated below.
For details of the extensions, see the department's news releases; the March 24 Director's Order 2020-01 on extending personal and corporate income tax filing and payment dates; the April 20 Director's Order 2020-02 to extend deadlines for additional tax types and extending appeal rights; and the Director's Orders FAQ.
New COVID-19 tax relief
On December 14, 2020, Governor Brown announced the following additional relief that applies to Personal Income, Corporate Excise, and Corporate Income taxes:
- 100 percent penalty waivers on 2019 income tax due from businesses that are impacted by COVID-19.
- 100 percent interest waivers on 2019 income tax due from small businesses that are impacted by COVID-19 and that have less than $5 million in gross receipts.
- Continuing to provide extended payment plans of up to 36 months for any taxpayer impacted by COVID-19 when entering into an approved payment plan.
Read the frequently asked questions about this new relief.
Wildfire and straight-line wind tax relief
In addition to the tax relief offered as a result of the COVID-19 pandemic, the department also provides relief for those Oregonians who have been affected by the wildfires and straight-line winds in the summer of 2020. Read the frequently asked questions for more details.
The IRS automatically extended the filing due date to July 15, 2020, for all returns due April 15, 2020, and allowed all payments due on that date to be deferred until July 15, 2020, without penalties or interest, regardless of the amount of the payment.
The IRS also established a special webpage on IRS.gov focused on steps to help individuals, businesses and other taxpayers affected by the coronavirus. Economic Impact Payments are distributed automatically, with no action required for most people. Visit the IRS's coronavirus tax relief webpage to learn more about the payments and how individuals can get them.
Registering for and tracking Economic Impact Payments
With the cooperation of the Free File Alliance, the IRS has created its first online tool to allow individuals without a 1040 filing obligation to register for an Economic Impact Payment. Beginning two weeks after they register, people can track the status of their payment using the Get My Payment tool, available only on IRS.gov.
For purposes of Oregon corporate excise/income tax, the presence of teleworking employees of the corporation in Oregon between March 8, 2020 and December 31, 2020 won’t be treated by the department as a relevant factor when making a nexus determination if the employee(s) in question are regularly based outside Oregon.
In response to the state of emergency declared for the COVID-19 pandemic, the Oregon Department of Revenue is temporarily modifying some of its collections processes to provide relief for individuals and businesses in Oregon. Read the
full list of changes
Corporate Activity Tax
The department understands the pandemic may impact commercial activity, up or down, to an extent that makes it difficult for businesses to estimate their quarterly payment. The department will not assess underpayment penalties to taxpayers making a good faith effort to estimate their quarterly payments. You can find more information about CAT estimated tax payments at
Beyond the CAT FAQ.
Amusement Device Tax
Under the authority of ORS 305.157, the director of the Department of Revenue has ordered an automatic extension of the Amusement Device Tax due date to April 14, 2021. The December 14 Director's Order 2020-04 applies to the tax due January 14, 2021. No penalty will be imposed as long as payments are received on or before May 14, 2021. Previously, Director's Order 2020-03 had applied to the annual tax due June 30, 2020 and the increased or additional tax due July 14, 2020 when annual net receipts exceed $104,000 or $260,000.
Oregon Lottery collects the Amusement Device Tax on behalf of the department. The extension of these due dates will provide the time necessary for Oregon Lottery to calculate accurately the tax due for video lottery game terminals that are operating at each retailer’s location.
Guidance to local governments on local budget law
On June 30, 2020, the governor signed Chapter 12 (2020 Laws) into law. Section 1 of Chapter 12 creates flexibility in public meetings law and local budget law during the COVID-19 emergency period. This includes but is not limited to allowing alternative meeting formats and options for public comment; changing the quorum requirement for conducting a public meeting; and creating an exception to local budget law for necessary expenditures when a municipal corporation is unable to adopt its budget by June 30, or otherwise unable to comply with local budget law. This is provided that the municipal corporation corrects any failure to comply with local budget law as soon as they are able.
Please review the
full text for details. The exceptions to public meetings law and local budget law expire 30 days after the state of emergency, which was issued by the governor on March 8, 2020, and any extension of that order is no longer in effect. The Department of Revenue's Finance, Taxation, and Exemptions team can assist you with questions regarding local budget law by emailing email@example.com or calling 503-945-8293. Contact your legal counsel or the Oregon Department of Justice's Public Meeting Law Manual for questions regarding public meetings law.