Oregon on June 30 enacted its third bill related to its newly effective commercial activity tax (CAT). The bill, H.B. 4202, includes certain technical corrections that generally apply to tax years beginning on or after January 1, 2020 (the first year of the CAT’s applicability), unless otherwise provided. Taxpayers should consider the potential impact of H.B. 4202 and the elections it provides with respect to the upcoming quarterly estimated tax payment due July 31.
H.B. 4202 provides several technical corrections that are beneficial to taxpayers. The bill provides elections to remove certain foreign entities from the filing group, calculate the subtraction using a taxpayer’s most recent fiscal-year data, and choose between several methods of apportioning the subtraction to Oregon.