On April 10, 2020, the Oregon Department of Revenue (“DOR”) informed us it had started the process of issuing permanent CAT rules. The DOR will be publishing its first batch of 17 permanent rules on May 1, 2020, and has stated we can expect a second batch in June 2020. The following is a summary of those 17 rules for May, and a description of the anticipated public comment and hearing schedule.

Anticipated Permanent Rules for May 1, 2020
The DOR has stated it will issue the following 16 rules, which it previously had issued in a “draft” and/or “temporary” form before now. The embedded links below are to our early discussions of those draft/temporary rules. Please note, however, the bold rules are those that the DOR has stated will be modified when issued in permanent form on May 1, 2020. Please keep in mind, therefore, that our earlier summaries of those rules may materially change upon release of the permanent rules. Please look for an update after the permanent rules are released in May.

Temporary Rule

Temporary Rule Title


Definition of commercial activity.


Substantial nexus guidelines for the Corporate Activity Tax.


Factors used in determining whether a group of persons are engaged in a unitary business and filing requirements for unitary groups.


Sourcing commercial activity to Oregon from sales of tangible personal property.


Sourcing commercial activity other than sales of tangible personal property.


Agent exclusion (to be modified). 


Definition of single-family residential construction (to be modified).


Property brought into Oregon.


Retail sale of groceries exclusion.


Cost input or labor cost subtraction (to be modified).


Employee compensation: labor subtraction.


Estimated tax: When estimated payments are required (to be modified).


Estimated tax payments: Delinquent or underestimated payment or both, constitutes underpayment (to be modified).


Estimated tax: Unitary groups and apportioned returns.


Extensions of time to file.


Motor vehicle resale certification.


In addition to those 16 permanent rules, the DOR has indicated it will be issuing a new 17th permanent rule, OAR 150-317-1025 (Unitary group with foreign affiliates and reporting requirements). At this time, other than the title, we do not know how this rule will address the topic.

Anticipated Public Comment and Hearing Schedule
The DOR will post the permanent rules on its website and in the Oregon Bulletin in two batches, as follows: 


First Batch

Second Batch

Publishing Date on Website and Oregon Bulletin

May 1, 2020

June 1, 2020

Public Hearing Date

May 26, 2020 (via call-in number)

June 23, 2020

Public Comment Deadline

May 26, 2020

June 23, 2020

At this time, the DOR anticipates the public hearing for the second batch on June 23, 2020, will be an in-person hearing. If, however, that changes to a call-in session due to COVID-19, we will keep you updated. We will also continue to follow the conversion process and issue additional updates, including an update addressing the changes to those five regulations. In the meantime, if you have any questions or comments about the Oregon CAT, please do not hesitate to contact Dan Eller or Alee Soleimanpour.

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