SALEM — The Oregon Department of Revenue filed two new administrative rules governing Oregon’s new corporate activity tax.
The department on March 6 filed one for employee compensation regarding labor cost subtraction and the other a definition of single-family residential construction. They are respectively the 17th and 18th administrative rules for the tax.
Twelve rules for the corporate activity tax became effective Jan. 1 with four others taking effect Feb. 1. Revenue department officials said in a new release they expect to more temporary rules in the coming months.
“We will continue to make drafts of the rules available on our website as soon as they are complete and in advance of the date they are officially filed with the Secretary of State,” said Nia Ray, director of the Oregon Department of Revenue. “The department intends to support taxpayer compliance by providing rules that are accessible and easily understood.”
The department also added a high-level overview of the employee compensation rule on the frequently asked questions portion of the CAT page of the agency’s website. The temporary rules can be found on the secretary of state’s website.
The new law requires businesses with Oregon commercial activity in excess of $750,000 to register for the tax. Once they reach that threshold, businesses must register within 30 days. Some businesses may have reached the threshold early in January, while others might not top that mark until much later in the year.
The ability to make online payments and apply for ACH credit also is available through Revenue Online by scrolling down to “Tools” and clicking “apply for ACH credit.” First quarter estimated payments for the CAT are due April 30.