Senate committee hears competing views on raising Oregon's corporate activity tax thresholds

The Senate Committee on Finance and Revenue opened public hearings March 3 on bills to raise exemption thresholds for Oregon's corporate activity tax. Chair Meek said the committee would take testimony on Senate Bill 381 and Senate Bill 490 simultaneously because they are "exactly the same bill," then later opened a hearing on Senate Bill 440.

Sen. Suzanne Weber, sponsor of SB 381 and SB 490, told the committee the change would raise the CAT exemption from $1,000,000 in commercial activity to $5,000,000 and described the adjustment as "a very, very modest adjustment" aimed at helping high-volume, low-margin local businesses recover from recent years of inflation and pandemic disruptions. "This will be a lifeline to many Oregonian businesses who are still trying to pull themselves out of the pain of the beginning of this decade," Weber said.

Supporters said the change would deliver immediate relief to many small firms while leaving most CAT revenue intact. Anthony Smith, Oregon state director for the National Federation of Independent Business,…