The Department of Revenue reminds business owners that businesses with commercial activity in excess of $1 million in 2020 must file a CAT return by April 15.
Businesses with more than $1 million in taxable commercial activity will have Corporate Activity Tax to pay. The tax is $250 plus 0.57% of commercial activity greater than $1 million after subtractions.
Revenue has honored good-faith efforts to comply with the CAT by businesses negatively affected by the COVID-19 pandemic in 2020. Penalties will not be assessed for underestimated quarterly payments or for not making a quarterly payment for the Corporate Activity Tax, if businesses did not have the financial ability to make the estimated payment.
However, payment of 2020 CAT liability is due in full April 15. Businesses can, with good cause, seek an extension to file. An extension to file is not an extension to pay tax owed.
One-time registration
The Department of Revenue reminds business owners that once they have more than $750,000 in commercial activity in 2021, they have 30 days to register for the Corporate Activity Tax unless they have already registered.
Registration for CAT is a one-time requirement, however, and businesses that registered in 2020 do not have to register again.
CAT registrations topped more than 20,000 in its first year. That number continues to grow as new businesses begin to reach the $750,000 threshhold in 2021. Through Tuesday, 21,149 businesses had registered for the CAT, which was created by the Oregon Legislature in 2019 to raise funding for education.
2021 quarterly payments
Taxpayers expecting to owe $5,000 or more in Corporate Activity Tax for tax year 2021 must make estimated quarterly payments. Estimated payments for 2021 are due April 30, August 2, November 1, and January 31, 2022. Returns are due April 15.
Training aids to assist with registration, calculating the tax, and making payments can be found on the CAT page of the agency’s website.
Taxpayers with general questions about the CAT can email cat.help.dor@oregon.gov or call 503-945-8005.