August 28, 2019
Last week, SGA received some clarification regarding the Oregon Commercial Activities Tax (CAT), the recently passed gross receipts tax that we told you about earlier this summer.
Oregon Department of Revenue (ODOR) hosted a two-hour webinar to discuss the tax. The following information is what we now have available to pass along to you. In review, the Oregon legislature passed a bill levying a new tax on businesses with gross receipts over $1 million. In general, the tax is calculated by taking Oregon commercial activity receipts, subtracting either 35% of cost of goods sold or labor costs, and then subtracting the $1 million threshold amount to arrive at a taxable base amount for the CAT. The tax is then calculated at .57% of the taxable base, plus $250.
At this time, no group has stepped forward to actively challenge the law, so it appears to be here to stay.
REQUIRED REGISTRATION: Required if the business exceeds $750,000 in gross receipts. At this time annual registration is required. The penalty for failing to register is $100 per month, up to a maximum of $1,000 per year the business fails to register.
GROUPING OF RELATED BUSINESSES: Related businesses (business with 50% or greater common ownership) are required to combine their gross receipts in order to calculate the filing threshold and taxes due, and file one combined report.
TAX PAYMENTS: Quarterly estimated tax payments are required beginning on April 30, 2020 for the quarter ending March 31, 2020. Annual filings to report the income will be due starting April 15, 2021.
At this time, the Oregon Department of Revenue (ODOR) has not provided any reporting forms, methods or clear instruction for calculations. We apologize that we cannot provide more information at this time. Rest assured, we are monitoring the ODOR and will pass along information to you as quickly as possible. Additionally, SGA will be assessing how we will be able to assist you in estimating your tax due and preparing and filing your quarterly payments and annual filing requirements (if necessary).
If you would like to review the current information available on the ODOR website please follow the link provided below:
2019 income tax filing deadline extended
The US Treasury Secretary announced March 20, 2020 the deadline to file 2019 individual income tax returns has been extended to July 15, 2020. In a previously released statement, Oregon Department of Revenue indicated they would conform the state filing deadline with any changes made at the federal level. We will...
The Federal government retroactively extended many tax breaks that may affect your 2019 and 2018 tax returns. Extended tax breaks that impact personal income tax returns include:
It has come to our attention that at least one client has received an email appearing to be from “Steve Greer” that asks the recipient to click a link to retrieve documents. This email is a hoax and should be deleted immediately – DO NOT click on the link provided.
If you receive an email that appears suspicious, the first step you should follow...