The Oregon Legislature, in special session in late June, passed HB 4202, the Corporate Activities Tax (CAT) technical corrections bill. This was the same language negotiated in a bill supported by the business community in the February 2020 “short” session, but which failed to pass. Because the special session was generally bipartisan and noncontroversial, HB 4202 passed both houses easily and was signed by the governor on June 30. It will take effect Sept. 25.
The Legislature did not take up the matter of reconnecting Oregon’s state tax code to the federal tax code in the special session, although that was also considered noncontroversial in February. With the advent of the COVID-19 situation and the passage by Congress of the CARES Act, there is discussion about disconnecting from some provisions of the CARES Act. That was pushed until later because of this new complexity, and will be watched carefully.