Legislative Update: Oregon Business Taxation
Justin Hobson authored an article for the Association of Corporate Counsel Oregon Chapter Q1 2016 Newsletter titled “Legislative Update: Oregon Business Taxation.” In the article, Hobson discussed three tax proposals currently under consideration in Oregon: a 2.5 percent gross receipts minimum tax; a 0.39 percent commercial activities tax; and a market-based sourcing tax of services and intangibles.
The lobby group A Better Oregon has proposed increasing the state corporate minimum tax for corporations that have more than $25 million of annual gross receipts from Oregon sales.
On February 1, Oregon Senator Mark Hass proposed replacing the Oregon corporate excise tax with a 0.39 percent commercial activities tax on gross receipts of business that have annual Oregon sales excess of $1 million.
A proposed amendment to House Bill 4026 would adopt market-based sourcing of services and intangibles. Oregon currently relies on the cost-of-performance methodology for this sourcing.