News Alerts

Oregon Corporate Activity Tax Payments for Tax Year 2020 Due April 15, 2021

The first filing payment of Oregon’s Corporate Activity Tax (“CAT”) for calendar year 2020, is due on April 15, 2021. The CAT is an annual calendar year tax measure on business’s commercial activity in Oregon. The CAT is applied to Oregon taxable commercial activity in excess of $1 million. The tax is computed as $250 plus 0.57 percent of Oregon commercial activity in excess of the $1 million threshold. Only taxpayers with more than $1 million of taxable Oregon commercial activity have a payment obligation. Nexus is required to be subject to the CAT. Under the statute, substantial nexus exists where a person “regularly takes advantage of Oregon’s economy to realize commercial activity for the person and may be established through the significant economic presence of the person in the state.”

While commercial activity includes most business receipts, receipts from certain items are excluded and are not subject to the CAT. For example, the following items as listed on the Oregon Department of Revenue website are excluded:

• Receipts from the sale of motor vehicle fuel
• Certain trades between motor vehicle dealers
• Receipts from the wholesale and retail sales of groceries
• Sales of items or services that are delivered outside of Oregon
• Receipts from a farmer’s sales to an agricultural cooperative described in Section 1381 of the Internal Revenue Code
• Receipts from the sale of fluid milk by dairy farmers that are not members of an agricultural cooperative
• Property, money, or other amounts received by an agent on behalf of another in excess of the agent’s fee or commission
• Receipts from transactions between members of the same unitary group
• Distributive income received from a pass-through entity

Detailed information on the CAT can be found at: https://www.oregon.gov/dor/programs/businesses/Pages/CAT/CATFAQ.aspx

Alabama Storage Tank Fee Increase – Effective May 1

The Alabama Department of Revenue has announced that the Underground and Aboveground Storage Tank Fee will increase by $0.01 per gallon to $0.012 per gallon. This change will take effect on May 1, 2021 and will be reflected on the May 2021 tax return. The fee is imposed on every gallon of motor fuel when it is first withdrawn from the bulk system in Alabama or when delivered into Alabama.