Oregon CAT Technical Corrections Invoice – Passes the Senate and is assigned to the Home Income

On June 8, the Oregon Senate passed SB 164, the 2021 Corporate Income Tax (CAT) Bill for “technical corrections.” SB 164 has moved into the house, where it has been referred to the house budget committee. To become law – which is expected – SB 164 must be passed by the House Revenue Committee and Plenary before the legislature is adjourned later this month.

As passed by the Senate, the A-In-Depth version of the bill clarifies that insurance companies that are non-Oregon resident and subject to Oregon retaliation tax are “excluded companies” (for the purposes of the CAT) and therefore not the cat. In addition, SB 164 fixes a technical problem that has plagued applicants for the fiscal year since the CAT was passed in 2019. If SB 164 is enacted, fiscal year applicants must submit a short annual return for 2021 (from 01/01/2021 to the end of a taxpayer’s tax year 2021) and for 2022 those taxpayers would use their tax year period. Accordingly, for fiscal year 2022, affected taxpayers’ CAT filing calendars would reflect their calendar for filing excise tax returns in Oregon. Finally, SB 164 would also extend the exclusion for certain receipts from motor vehicle dealers (all receipts from the new car exchanges between licensed motor vehicle dealers) and provide a more narrow definition for certain receipts from consignment grocery stores.