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Committee adopts amendment exempting certain health-care receipts from corporate activities tax, forwards bill to tax-expenditures committee
Summary
Senate Bill 125’s dash 1 amendment was adopted; it exempts receipts from administration or dispensing of medications in non-hospital clinical settings and creates phased exclusions for certain reimbursed health-care receipts, and the committee referred the bill to the Joint Committee on Tax Expenditures with a due-pass recommendation.
The Senate Committee on Finance and Revenue on June 9 adopted the dash 1 amendment to Senate Bill 125, which changes how certain health-care receipts are treated under Oregon’s corporate activities tax (CAT), and referred the bill to the Joint Committee on Tax Expenditures (JTAC) with a due-pass recommendation.
Committee staff summarized that the measure creates a CAT exclusion for receipts from administration or dispensing of medications in clinical settings outside hospitals and establishes exclusions or subtractions for receipts reimbursed by specified public insurers (including Medicaid, Medicare, the Public Employees Benefit Board, the Oregon Educator Benefit Board, CHIP, and TRICARE). The dash 1 amendment removes a prior sunset on an exclusion and sets phased-in effective dates for subtractions and final exemptions beginning January 1, 2026, and later years for other provisions.
Staff provided revenue-impact estimates: a projected decrease in revenue of $2.4 million for the 2025–27 biennium, $28.6 million for 2027–29 and $79 million for 2029–31. Committee discussion included support for exempting medication administration receipts and concern about preserving revenues for the Student Success Act; the chair said he wanted the bill sent to JTAC with a due-pass recommendation for further work.
Vice Chair McLean moved adoption of the dash 1 amendment; the committee adopted it and then moved SB 125 as amended to the floor with a due-pass recommendation and subsequent referral to JTAC.
