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<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto"><span style="font-size:12.0pt;color:black"><o:p> </o:p></span></p>
<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto"><span style="font-size:12.0pt;color:black">The Oregon Department of Revenue has posted a new draft administrative rule for the Corporate Activity Tax (CAT) on the CAT page of the
department’s <a href="https://www.oregon.gov/DOR/Pages/index.aspx"><span style="color:blue">website</span></a>, giving stakeholders early access to the rule.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;color:black">Rule 150-317-1220 covers employee compensation and the labor cost subtraction. Stakeholders can send comments or questions about the rule to
<a href="mailto:catrules.dor@oregon.gov"><span style="color:blue">catrules.dor@oregon.gov</span></a>. The rule will be filed with the Secretary of State and become effective March 1.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;color:black"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;color:black"><o:p> </o:p></span></p>
<p class="MsoNormal"><b><span style="font-size:12.0pt;color:black"><o:p> </o:p></span></b></p>
<p class="MsoNormal"><b><span style="font-size:12.0pt;color:black">Registration update</span></b><span style="font-size:12.0pt;color:black"><o:p></o:p></span></p>
<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto"><span style="font-size:12.0pt;color:black">More than 6,200 businesses have registered for the CAT. During the 2019 session, the Legislative Revenue Office predicted approximately
40,000 businesses would have to pay taxes under the CAT, which went into effect Jan. 1.<o:p></o:p></span></p>
<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto"><span style="font-size:12.0pt;color:black">Once they reach $750,000 in commercial activity for the year, business entities must register for the CAT within 30 days. Businesses that
passed the $750,000 threshold in late January will need to register with the department by the end of February.<o:p></o:p></span></p>
<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;background:white">
<span style="font-size:12.0pt;color:black">To register, individuals doing business in Oregon will need their name, and their social security number or individual taxpayer identification number. Businesses will need their entity’s legal name and federal employer
identification number. <o:p></o:p></span></p>
<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;background:white">
<span style="font-size:12.0pt;color:black">Businesses and individuals will need:<o:p></o:p></span></p>
<ul style="margin-top:0in" type="disc">
<li class="MsoNormal" style="color:black;mso-list:l0 level1 lfo1;background:white">
<span style="font-size:12.0pt">Their mailing address; <o:p></o:p></span></li><li class="MsoNormal" style="color:black;mso-list:l0 level1 lfo1;background:white">
<span style="font-size:12.0pt">The date they exceeded or expect to exceed $750,000 in Oregon commercial activity;
<o:p></o:p></span></li><li class="MsoNormal" style="color:black;mso-list:l0 level1 lfo1;background:white">
<span style="font-size:12.0pt">A valid email address or current Revenue Online login, and;
<o:p></o:p></span></li><li class="MsoNormal" style="color:black;mso-list:l0 level1 lfo1;background:white">
<span style="font-size:12.0pt">Their Business Activity Code (Refer to the current list of North American Industry Classification System codes found with their federal income tax return instructions.)
<o:p></o:p></span></li></ul>
<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto"><span style="font-size:12.0pt;color:black">Taxpayers don’t need a Revenue Online account to register for the CAT. Those who have Revenue Online accounts can’t be logged in to register
for the CAT. Instead, they should go directly to the CAT webpage and click on the “Register for the CAT” link on the right-hand side of the page.<o:p></o:p></span></p>
<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto"><span style="font-size:12.0pt;color:black"> <o:p></o:p></span></p>
<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto"><b><span style="font-size:12.0pt;color:black">Automated payments</span></b><span style="font-size:12.0pt;color:black"><o:p></o:p></span></p>
<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto"><span style="font-size:12.0pt;color:black">The ability to make online payments and apply for ACH credit are now also available through Revenue Online.<o:p></o:p></span></p>
<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto"><span style="font-size:12.0pt;color:black">CAT registrants who want to make ACH payments must submit an ACH credit application for the Corporate Activity Tax (CAT).</span><span style="font-size:12.0pt;color:#5B9BD5">
</span><span style="font-size:12.0pt;color:black">The application is available on the department’s
<a href="https://www.oregon.gov/DOR/Pages/index.aspx"><span style="color:blue">website</span></a> through Revenue Online by scrolling down to “Tools” and clicking “apply for ACH credit.”<o:p></o:p></span></p>
<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto"><span style="font-size:12.0pt;color:black">Once their application is completed, taxpayers will receive a confirmation providing the routing and account number.</span><span style="font-size:12.0pt;color:#5B9BD5">
</span><span style="font-size:12.0pt;color:black">Taxpayers should not use account numbers from other tax programs. First quarter estimated payments for the CAT are due April 30.<o:p></o:p></span></p>
<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto"><span style="font-size:12.0pt;color:black"> <o:p></o:p></span></p>
<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto"><b><span style="font-size:12.0pt;color:black">CAT meetings planned in 13 cities</span></b><span style="font-size:12.0pt;color:black"><o:p></o:p></span></p>
<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto"><span style="font-size:12.0pt;color:black">The Oregon Department of Revenue (DOR) will host a series of meetings across the state in March to provide information to business taxpayers
and tax professionals about the administrative rules for Oregon’s new Corporate Activity Tax (CAT).<o:p></o:p></span></p>
<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto"><span style="font-size:12.0pt;color:black">Meetings are planned in Bend, Ontario, La Grande, The Dalles, Klamath Falls, Ashland, Eugene, Gresham, Coos Bay, Lincoln City, Seaside,
Keizer and the west side of the Portland metro area. The <a href="https://www.oregon.gov/DOR/programs/businesses/Documents/MarchEducationTourSchedule.pdf">
<span style="color:blue">full schedule</span></a> is available on the CAT page of the agency’s website.<o:p></o:p></span></p>
<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto"><span style="font-size:12.0pt;color:black">Follow
<a href="https://twitter.com/ORrevenue"><span style="color:blue">@ORrevenue</span></a> on Twitter.<o:p></o:p></span></p>
<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto"><span style="font-size:12.0pt;color:black"> <o:p></o:p></span></p>
<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto"><b><span style="font-size:12.0pt;color:black">Note to subscribers:</span></b><span style="font-size:12.0pt;color:black"> The process of sending emails to the subscriber list may
mean that at times not all subscribers will receive the updates on the same day. We apologize for any inconvenience and are actively working on a solution.<o:p></o:p></span></p>
<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto"><span style="font-size:12.0pt;color:black"> <o:p></o:p></span></p>
<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto"><span style="font-size:10.5pt;color:black">Thank you,</span><span style="font-size:12.0pt;color:black"><o:p></o:p></span></p>
<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto"><span style="font-size:10.5pt;color:black"> </span><span style="font-size:12.0pt;color:black"><o:p></o:p></span></p>
<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto"><b><span style="font-size:10.5pt;color:#336699">Corporate Activity Tax Policy Team</span></b><span style="font-size:12.0pt;color:black"><o:p></o:p></span></p>
<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto"><span style="font-size:10.5pt;color:black">Oregon Department of Revenue</span><span style="font-size:12.0pt;color:black"><o:p></o:p></span></p>
<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto"><span style="font-size:12.0pt;color:black"><a href="mailto:cat.help.dor@Oregon.gov" title="mailto:cat.help.dor@Oregon.gov"><span style="font-size:10.5pt;color:blue">cat.help.dor@Oregon.gov</span></a><o:p></o:p></span></p>
<p class="MsoNormal"><o:p> </o:p></p>
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