December 31, 2019
Oregon Corporate Activity Tax
Oregon has implemented a new business tax effective 1/1/2020. This new tax is associated with doing business in Oregon and is unrelated to your annual income taxes.
Entities doing business in Oregon will be taxed based on their transactions in Oregon. Reductions based on Cost of Goods Sold or Labor Costs, whichever is greater, will be allowed against those transactions.
All entities doing business in Oregon are subject to the tax with a few exceptions. If you have any business transactions in Oregon and meet the criteria to be subject to the tax, it is important the following data be tracked as accurately as possible:
•Sales in Oregon
•Cost of Goods Sold
Please Be Aware:
Oregon has confirmed that the law does not prohibit any business subject to the CAT from passing the tax along to its customers.
Oregon is in the process of preparing a draft of rules which will become available over the course of the next three months. Further instructions will become available either through these rules or in the form’s instructions. On 12/9/19 Oregon issued the first round of administrative guidance. There are eight sections as follows, and detail can be found at www.oregon.gov/dor:
The eight drafts posted on the agency’s website this week address:
Oregon has decided to open registration early for businesses wishing to do so. A business reaching $750,000 in activity transactions in Oregon must register within 30 days of doing so. To help businesses who anticipate meeting the criteria early in 2020, they have the option to register now.
The following information is needed [to register]:
This information is based on information provided by Oregon as of 12/10/19. Any additional information will be provided by Oregon as it is available. We will be in contact if any significant changes are made.
If you have questions and want additional information, please let us know. As always, we look forward to serving you.
Lewis Group CPAS
We understand that everyone is concerned about Coronavirus. And we are as well, which is why we are taking precautions to keep our clients and our staff safe.
Electric Vehicles (EV) are becoming more common in our society and a couple of months ago, Congress recognized this growing area by extending a tax credit available on costs associated with the installation of an EV charging station in your home. The available credit is the smaller of 30% of the cost or $1,000 and there are specific requirements that must be met in order to qualify for the credit which include:
Thanks to Loowit Brewing Company for the beer and Purta Studios Photography for the video. We love giving away beer each year to our amazing clients as a way to say thank you for your business!