The 2019 Oregon legislature created a joint committee specifically to identify new revenue sources to support K-12 education. Recently, the committee issued a draft bill that would impose a gross receipts tax on most businesses with Oregon gross receipts in excess of $1 million.
The proposed tax is based on the Ohio commercial activity tax but includes some significant differences. The tax would be in addition to existing business income and excise taxes rather than replacing them. There would also be significant deductions allowed in computing the tax. The current version of the bill, HB 3427-15, is expected to undergo significant revisions before it is voted on. However, the legislation has a significant chance of becoming law in some form.
If you would like to know more about the proposed tax, how it might affect your business, or options to plan for it, please contact one of our Oregon tax partners: John Gadon, firstname.lastname@example.org, 503.778.2130, or Eric Kodesch, email@example.com, 503.778.2107.
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