On January 1, 2020, the Oregon Corporate Activity Tax went into effect. This is arguably the largest tax increase in state history. The roll-out has been very confusing as the rules are still not complete even though the first payment is due April 30, 2020. The tax is based on revenue, not profit, so even if a company to which the tax applies does not make a profit, it could still owe the tax. This process has been rushed through. Small businesses are having to incur professional fees in order to prepare for compliance with this tax, while the rules still remain incomplete. This tax certainly will be passed along at every step in the supply chain of a business right down to their customers. We are seeing our industry (construction) struggle with this tax being charged to us in full by multiple suppliers, without consideration of their deductions, which again increases costs. This will pyramid the effect of the tax and increase the costs of construction, which could slow the economy. Also, the Oregon consumer will certainly see higher prices of virtually everything. 

All of this is now occurring in conjunction with the Coronavirus Pandemic. With so much uncertainty now facing our families and businesses, we MUST delay the implementation of the Oregon Corporate Activity Tax until the rules are complete and the above concerns have been addressed. That is ultimately the only fair resolution to help us prepare for this new tax burden which is going to affect all Oregonians.