Senate committee hears bills to shield prescription drug sales from Oregon corporate activities tax

The Senate Committee on Finance and Revenue on March 5 heard competing appeals over two bills that would change how Oregon’s corporate activities tax (CAT) treats prescription drug sales. Sponsors and pharmacy owners testified that expanding or extending exemptions is necessary to keep small and rural pharmacies open; education and labor groups warned any carve-outs would reduce general‑fund resources.

Sen. Suzanne Weber, who represents District 16, framed Senate Bill 382 as a straightforward exemption that would “completely exempt pharmacies’ sale of prescription drugs from the corporate activities tax,” arguing the change would reduce closures and long waits for medicines, especially in rural communities. Sen. Mark Meek, who introduced Senate Bill 707 to expand existing exclusions, said the CAT “is placing a disproportionate financial strain on many pharmacies leading to closures, service reductions, and barriers to care.”

The bills…