PPP Loans, EIDL Advances, SBA Loan Subsidies Not Subject to CAT

The Oregon Department of Revenue has determined that certain federal assistance to businesses under the Coronavirus Aid, Relief, and Economic Security (CARES) Act is not commercial activity under Oregon statute and will not be subject to the Corporate Activity Tax.

The exempt assistance includes forgiven Paycheck Protection Program (PPP) loans, Economic Injury Disaster Loan (EIDL) advances, and Small Business Administration (SBA) loan subsidies. More information can be found in the Beyond the FAQ section of the CAT page on the department’s website.

Permanent rules hearing

In accordance with social distancing measures necessary to slow the spread of the novel coronavirus, or COVID-19, the public hearing for the first set of permanent rules for the Corporate Activity Tax will take place via conference call 9 to 11 a.m. Tuesday, May 26.

To participate in the hearing, taxpayers should call 541-465-2805 and enter the conference PIN 234470 when prompted. Those wishing to testify at the hearing will need to register beginning at 8:45 a.m. on the conference call line. Those needing to make alternate arrangements for registration should contact the Department of Revenue rules coordinator before 8:45 a.m. May 26.

Taxpayers may also send written comments to the rules coordinator by email, fax, or mail. Comments must be received no later than 5 p.m. May 26. Contact information for the rules coordinator and a list of the rules which will be considered at the hearing can be found on the Administrative rules notices page of the agency website.

Draft of financial institutions sourcing rule available

A link to a draft version of “OAR 150-317-1050  Sourcing of Commercial Activity for Financial Institutions in This State” has been posted on the CAT page of the agency website. The link can be found in the right-hand column of the CAT page under the Draft Rule header. The rule will be filed as a permanent rule and considered at a June 23 public hearing.

Taxpayers with general questions about the CAT can email cat.help.dor@oregon.gov or call 503-945-8005. Business taxpayers and tax preparers can also sign-up to receive updates on the CAT by filling out the form on the CAT page of the agency website.