Corporate Activities Tax Relief Bill
The 2019 Oregon Legislature approved a new corporate activity tax, aka CAT, that taxes businesses not on profit, but on revenue. This approach was never well reasoned to begin with, but it will be particularly harmful under the current economic conditions. The coronavirus crisis has devastated businesses across all sectors of Oregon’s economy. Oregon employers are struggling to keep their doors open and paychecks funded during this crisis. Cash flow has become critically important to them. 

What it does: The Oregon Legislature is planning a special session as early as next week. It is hoped they will pass a bill to delay the corporate activities tax (CAT) for at least two quarters, buying time for economic recovery from the COVID-19 pandemic.

OAN’s stance: We support passage of a bill to delay the corporate activities tax (CAT).

What you can do: 

  1. Write to your state senator and/or representative. (Find your legislator.)
  2. Write to Jeff Stone and express interest in testifying should a bill come up for consideration.

What to say: 

  • My name is [xx], and I… [describe your business, nonprofit, or place of employment]. 
  • The coronavirus crisis has had significant negative impacts on my business and local community, including: (LIST EXAMPLES – Be Specific)
  • The legislature should pass policies that support small and mid-sized businesses, like mine.

  • Please delay implementation of the corporate activity tax (CAT) for a minimum of two quarters to protect cash flow for all businesses subject to the CAT.
  • In an economic recession, cash reserves are very important. 

  • Oregon businesses will have a difficult time recovering without immediate action to delay the CAT. 

  • Many retail and wholesale nurseries receive the majority of their incoming cash flow during the spring shipping and shopping season, from March through June. Some use this to pay off lines of credit that sustain them during low-revenue winter months. COVID-19 is coming at the worst possible time and CAT tax implementation won’t help.

  • Technical fixes aren’t enough; businesses need a delay of implementation.
  • Thank you for your support for local businesses in your community; please do what you can to protect businesses from gross receipts taxes that they can’t currently afford.
  • Local employers need your assistance to recover from this disaster.  

How to submit testimony

  • Follow the letter of support template below
  • Once complete, email your letter to your legislators. Please ensure that your letter is in PDF format.
  • For more information click (if applicable)

*All submitted materials may be viewable by the public, including names, addresses, phone numbers and any other personal information that is included in the materials.

If you have any questions, please contact Jeff Stone at jstone@oan.org or 503-682-5089.
Sample Letter
(your logo here)

Month Day, Year

To: (who?)
From: [Name of Individual/Organization Submitting]
RE: Please delay implementation of Corporate Activities Tax 

Dear (Name of Legislator):

My name is (or name of organization is) _______, I live in (we are based in) _______, and I/we urge you to support any bill to delay implementing the Corporate Activities Tax.

[Body of Testimony; beginning with the bill and what it does; followed by a personal story that reinforces why the committee should approve/oppose the bill; stats and other useful talking points — this could be a few paragraphs, but shouldn’t be longer than a page single spaced.]

Warm regards,

(Your Name)
(Name of Business)