On December 20, the Oregon Department of Revenue released four additional temporary rules for the Corporate Activity Tax. The rules follow a batch of rules released only two weeks ago that provided initial guidance to businesses subject to the tax.
These rules address the regulatory framework for the following areas:
While these rules provide substantive guidance to taxpayers, they also raise substantial questions about the new regime. In particular, the rule relating to the cost inputs or labor expense subtraction may draw attention from the legislature as it prepares to consider technical corrections for the next session beginning on February 3.
The department intends to issue additional temporary rules on February 1 and March 1, with a permanent rulemaking opening the summer. You can view this release and additional information on the Corporate Activity Tax website here.