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                              Oregon Corporate Activity Tax
                              Form OR-CAT Instructions                                               2023

                              Table of contents

What’s new .................................................................................2        Auto dealers ...............................................................................3
Important reminders ................................................................2                Wholesale or retail sale of groceries.......................................3
Filing information .....................................................................2            Filing checklist and reminders ...............................................4
Who must register? ...................................................................2              Estimated tax payments ...........................................................5
Who must file? ...........................................................................2          Return instructions ...................................................................6
What form do I use? ..................................................................2              Schedule OR-AF-CAT instructions ...................................... 10
Filing requirements ..................................................................2              Schedule OR-EXC-CAT instructions .................................... 11
Unitary groups ..........................................................................2           Form OR-QUP-CAT instructions .......................................... 11
E-file ............................................................................................2 Do you have questions or need help? ...................................12
Federal or other state audit changes .......................................3                        Appendix A, 2023 Schedule OR-EXC-CAT code list ..........13
Amended returns ......................................................................3              Appendix B, Sample certificates ...........................................15
Protective claims .......................................................................3
                                                                                                     Appendix C, Alternative apportionment ............................20
Additional information on certain exclusions ......................3
                                                                                                     Appendix D, Instructions for estimated payments  
Agents. ........................................................................................3    if using the annualized method ...........................................21

Information contained herein is a guide. For complete details of law, refer to Oregon Revised Statutes (ORS) and Oregon 
Administrative Rules (OAR).

                              Go electronic

                              Fast • Accurate • Secure

File your Corporate Activity Tax return through the electronic filing program. With approved third-party software, you can 
e-file your return with all schedules. You can also conveniently include an electronic payment with your e-filed original 
return. See “E-file.”

150-106-003-1 (Rev. 07-27-23) Page 1 of 21                                                           Form OR-CAT Instructions

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What’s new • Form OR-CAT-V, Oregon Corporate Activity Tax Payment
Voucher.
We have redesigned our Form OR-QUP-CAT, Underpayment • Schedule OR-EXC-CAT, Exclusions From Commercial
of Oregon Corporate Activity Estimated Tax, for 2023. If you are Activity.
filing a Form OR-QUP-CAT, review the form instructions • Schedule OR-AF-CAT, Schedule of Affiliates for Form
beginning on page 11. OR-CAT.
• Form OR-QUP-CAT, Underpayment of Oregon Corporate
Activity Estimated Tax.
Important reminders • Form OR-CAT-EXT, Application for Extension of Time to File
an Oregon Corporate Activity Tax Return.
Revenue Online. Revenue Online provides convenient,
secure access to tools for managing your Oregon tax account.
With Revenue Online, you may: Filing requirements

• Register for CAT. Unitary groups
• View your tax account.
• Make and review payments. A unitary group is a group of entities that:
• View correspondence we sent you. 1. Is united by more than 50 percent common ownership;
• Check the status of your refund. and
• File appeals. 2. Has, directly or indirectly between members or parts of
• Submit an extension. the enterprise, either a sharing or an exchange of value
• Add an authorized representative/POA. shown by:
• Submit documents.
• Centralized management or a common executive
For more information and instructions on setting up your force;
Revenue Online account, visit www.oregon.gov/dor. As • Centralized administrative services or functions
updates or changes are made to these instructions, they will resulting in economies of scale; or
also be posted to our website. • Flow of goods, capital resources, or services showing
Note: The CAT return may not be filed through Revenue functional integration.
Online. A unitary group shall register, file and pay taxes as a single
taxpayer and may exclude receipts from transactions among
its members under the CAT.
Filing information
Unitary business with non-U.S. members. Unitary groups
Who must register? may make an election to exclude non-U.S. members from the
return if the non-U.S. member has no Oregon commercial
Persons or unitary groups with Oregon commercial activity activity or exclusions from commercial activity that would
exceeding $750,000 must register for the CAT. Commercial otherwise be sourced to Oregon (including, but not limited
activity is the total amount realized by a business from the to, receipts from transactions between members of the uni-
transactions and activity in the regular course of their busi- tary group). Refer to OAR 150-317-1025 for further details.
ness in Oregon, without deduction for expenses incurred by
the business. Commercial activity is realized according to the Designated CAT entity
method of accounting used for federal income tax purposes. Any business, or unitary group of businesses, doing busi-
Registration is due within 30 days of meeting the $750,000 ness in Oregon may have responsibilities under the CAT.
registration threshold. You don’t need to register again if you This includes all business entity types, such as C and S
registered in a prior year. A penalty of $100 per month may corporations, partnerships, sole proprietorships, and other
be assessed for failing to register, up to $1,000 in a tax year. entities. Unitary groups must designate a single member
You must register through Revenue Online. of the unitary group with substantial nexus in this state
to register, file and pay the tax on behalf of the group. For
Who must file? more information on designated reporting entities, refer to
Persons or unitary groups with Oregon commercial activity OAR 150-317-1023.

of $1 million or more are required to file a CAT return. E-file
What form do I use? We accept calendar year, fiscal year, short year, and amended
electronic CAT returns utilizing the IRS Modernized e-file
The Oregon CAT program only has one tax return. Tax-
platform (MeF). Your tax return software may also allow you to
payers will file tax returns on the Form OR-CAT, Oregon
make electronic payments when e-filing your original return.
Corporate Activity Tax Return. Fiscal filers must use the Form
OR-CAT from the year that matches their period begin date. For a list of software vendors or for more information, search
Other CAT forms and schedules include: “e-filing” at www.oregon.gov/dor.
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Federal or other state audit changes                            Additional information on certain 
If the IRS or other taxing authority changes or corrects        exclusions 
your federal or other state return for any tax year, you 
                                                                ORS 317A.100(1)(b)
must notify us. File an amended CAT return if the federal 
or other state audit report results in a change to taxable      Agents. An agent may exclude property, money and other 
                                                                amounts received or acquired by an agent on behalf of 
Oregon commercial activity and include a copy of the fed-
                                                                another in excess of the agent’s commission, fee or other 
eral or other state audit report. Mail this separately from 
                                                                remuneration. For the agent exclusion to exist, a person (the 
your current year’s return. If you don’t amend or send a        agent) must be acting on behalf of and under the direction 
copy of the federal or other state report, we have two years    and control of another person (the principal), and all the facts 
from the date we’re notified of the change to issue a defi-     and circumstances must be considered. 
ciency notice. To receive a refund you must file a claim for    Auto dealers. A vehicle dealer may exclude receipts realized 
refund of tax within two years of the date of the federal or    from vehicle dealer trades (the sale or transfer of a motor 
other state report.                                             vehicle from one vehicle dealer to another), provided that 
                                                                the trade is of a new vehicle(s) between franchised dealer-
Amended returns                                                 ships, or the trade is made for the purpose of resale and 
Use the form for the tax year you’re amending and check         based on the need to meet a specific customer’s preference. 
the amended box. Always use your current address. If the        Vehicle dealers claiming this exclusion for vehicles traded 
                                                                to meet a specific customer preference are required to retain 
address for the year you’re amending has changed, don’t 
                                                                documentation that shows the transaction meets the require-
use the old address.                                            ments necessary to claim the exclusion. The documentation 
Fill in all amounts on your amended return, even if they’re     needs to include the following:
the same as originally filed. If you’re amending to change      1.  Name, address, and federal ID for both dealers involved 
exclusions or commercial activity, include detail of all items  in the transaction.
and amounts.                                                    2.  Vehicle description.
                                                                3.  A statement that the vehicle is purchased for resale.
If you change taxable income by filing an original or           4.  Date and signature of the purchasing dealer, their 
amended federal or other state return, you must file an         employee or authorized representative.
amended CAT return within 90 days of when the original or       5.  Dealers must include their dealer license numbers from 
amended federal or other state return is filed if the change    the appropriate licensing jurisdiction.
results in a change to commercial activity. Include a copy of   6.  The document must include a statement that the trade 
                                                                occurred to meet a specific customer’s preference. 
your original or amended federal or other state return with 
your amended CAT return and attach a letter of explanation      A sample dealer trade resale certificate can be found in Appen-
to your amended return that explains what was amended           dix B. Dealers are not required to submit copies of the resale 
and why.                                                        certification document while filing their return. They must 
                                                                retain the resale certification as required in OAR 150-317-1410: 
You may make payments online for your amended returns           Motor Vehicle Resale Certificate—Documentation Required. 
at  www.oregon.gov/dor. Don’t make payments for amended 
                                                                Wholesale or retail sale of groceries 
returns with Electronic Funds Transfer (EFT). This also 
applies to e-filed amended returns. For paper returns, you      For purposes of the CAT, “groceries” are food and food 
may pay online or include a check or money order with your      items that would be eligible for purchase with Supplemental 
return. For e-filed returns, you may pay online or send a       Nutrition Assistance Program (SNAP) benefits. Essentially, 
                                                                groceries are food and beverages purchased for home con-
check or money order separately. If you mail your payment 
                                                                sumption. Food-producing seeds and plants for use in the 
separate from your return, write “Amended” on the payment       purchaser’s garden are also groceries. Receipts from the 
and include a completed Form OR-CAT-V with the amended          wholesale or retail sale of groceries are excluded from the 
box checked.                                                    seller’s commercial activity.
Protective claims                                               Retail sales of groceries. A taxpayer may exclude receipts 
                                                                from the retail sale of groceries, provided that the sale meets 
Don’t file an amended return as a protective claim. Use         the following: 
Oregon Form OR-PCR, Protective Claim for Refund, 150-101-184, 
                                                                Requirement 1: The sale is of a grocery item that would be 
when your claim to a refund is contingent on a pending court    eligible for purchase with SNAP benefits, and 
decision or legislative action. Notify us within 90 days of the Requirement 2: The seller typically intends or expects that 
final determination by filing an amended return. Don’t file an  the sale of food to the purchaser is for home consumption 
amended return before the pending action is final.              by the purchaser. 
150-106-003-1 (Rev. 07-27-23)                      Page 3 of 21                                                Form OR-CAT Instructions

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A seller that typically sells grocery items to final consumers additional wholesaler information including an out-of-state
for home consumption is determined based on factors such resale certificate template.
as (but not limited to):
• Whether the average gross receipts from the sale of grocer- Filing checklist and reminders
ies is greater than the average gross receipts from the sale
of hot food or prepared food. • Rounding to whole dollars. Enter amounts on the return
• Whether the business offers on-site dining facilities or and accompanying schedules as whole dollars only
space, and the percentage of floor space dedicated to din- by rounding to the nearest whole dollar amount. (For
ing compared to grocery shelves. example, $4,681.55 becomes $4,682; and $8,775.22 becomes
• Business advertising and marketing. $8,775).
• Due date of your return. Returns are due by the 15th day
If a store’s receipts from the sale of hot food or hot prepared
of the fourth month following the end of the tax year.
food constitutes 80 percent or more of the total receipts that When the 15th day falls on a Saturday, Sunday, or Oregon
the store realized from the sale of all food items, the store legal holiday, the due date is the next business day.
doesn’t intend to sell, or typically sell, groceries to the final • Extensions. More time to file doesn’t mean more time to
consumer for home consumption; therefore, sales from the pay your tax. To avoid penalty and interest, pay tax due
store are not excludable as retail sales of groceries. prepayments online, or by mail with Form OR-CAT-V, on
Wholesale sales of groceries. A taxpayer may exclude or before the original due date of your return.
receipts from the wholesale sale of groceries provided that Note: You must submit your extension before the return
the sale meets all of the following requirements: filing deadline. Filing a payment voucher, Form OR-CAT-V
1. The sale is a wholesale sale. isn’t an extension of time to file your tax return. If you’re
2. The sale is of a food item that would be eligible for pur- making an extension payment by mail, send the payment
chase with SNAP benefits, and is in a form that can be to: Oregon Department of Revenue, PO Box 14950, Salem
resold to the end consumer for home consumption. OR 97309-0950. Include on your check:
○
3. The sale must be made for the purpose of reselling the Designated CAT entity. Enter the legal name and FEIN.
food item, without processing, to the final consumer for If you’re a sole proprietorship without a FEIN, enter
your name and SSN. Only enter an FEIN or an SSN.
consumption at home. Note: Processing means trans-
Don’t enter both.
forming or changing the physical characteristics of the ○ “Extension.”
food item, including incorporation or consumption of an ○ Tax year.
item as an ingredient or component in the production or ○ Daytime phone.
manufacture of another item.
• Payments.
4. The taxpayer making the wholesale sale must obtain
written certification from the purchaser that the grocery ○ Estimated payments and prepayments. Identify all
items will be resold at retail without processing and estimated payments claimed by completing Schedule
are intended for, or typically purchased by, the final OR-ES-CAT on pages 5 and 6 of your return. List all pay-
consumer for home consumption. ments that were submitted prior to filing your return.
Include the name and FEIN of the entity that submitted
Any document may serve as verification, provided that it each payment. Missing or incomplete information on
contains the date of the purchase, the purchaser’s name and payments made by an affiliate could result in a billing.
address, the items purchased and purchase amount, and ver- ○ Online payments. You can log into your Revenue Online
ification from the purchaser of the amount of the purchase account and make a payment. If you make a non-logged
that will be resold, without processing, to the final consumer in payment, you will need the CAT Account ID. If you
for home consumption. A wholesale seller isn’t required to don’t know your CAT Account ID, you can find it by
obtain separate verification if the purchase was made for the logging into your Revenue Online account. Your CAT
purpose of resale without further processing, and Account ID can also be found on letters from the Depart-
(A) The purchaser is a qualified SNAP retailer with a ment regarding your entity’s CAT account.
○
current permit to accept SNAP benefits from the U.S. Making electronic payments with your e-filed return.
Department of Agriculture; or We accept electronic payments when e-filing your
(B) The purchaser is a store that meets the required quali- original return.
○ Making check or money order payments with your
fications to be a SNAP retail food store under 7 U.S.C.
paper return. Make your check or money order payable
2012(o)(1), (2), (4) or (5).
to Oregon Department of Revenue. Write the following
The wholesale seller must retain documentation that, at the on your check or money order:
time of sale, the items were sold and delivered to a purchaser — Federal employer identification number (FEIN) or
that meets the requirements in (A) or (B). See Appendix B for Social security number (SSN) if a sole proprietor.

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— Tax year. Payment options
— Daytime phone.
Important: For details about making payments with your
○ To speed up processing: return, see “Filing checklist.”
— Don’t use Form OR-CAT-V payment voucher.
— Don’t staple payment to the return. Estimated payments may be made by electronic funds
— Don’t send cash or postdated checks. transfer (EFT), online, or by check. You can make EFT pay-
— Don’t use red or purple or any gel ink. ments through Revenue Online or through your financial
institution. To learn more about how to make payments, visit
○ Sending check or money order payments separate from our website. If you pay by EFT, don’t send Form OR-CAT-V,
your return. Follow the instructions above, except don’t Oregon Corporate Activity Tax Payment Voucher.
include with your return. Mail separate payments with
Form OR-CAT-V to: Mail. If paying by mail, send each payment with a Form
OR-CAT-V, payment voucher, to: Oregon Department of
Oregon Department of Revenue Revenue, PO Box 14950, Salem OR 97309-0950. Include on
PO Box 14950 your check:
Salem OR 97309- 0950
• Federal employer identification number (FEIN) or Social
Don’t use this address for filing your return. security number (SSN) if a sole proprietor.
• Assembling and submitting your return. Submit your • Tax year.
Oregon return forms in the following order: • Daytime phone.

1. Form OR-CAT, Oregon Corporate Activity Tax Return; Estimated payments worksheet (see instructions
2. Schedule OR-AF-CAT, Schedule of Affiliates; below worksheet)
3. Schedule OR-EXC-CAT, Exclusions from commercial
activity. Line 1. Oregon commercial activity after
exclusions. 1.__________
Tax-due returns, without payment voucher, mail to:
Line 2. Apportioned expenses. (greater of
Oregon Department of Revenue cost inputs or labor costs). 2.__________
PO Box 14790 Line 3. Subtraction percentage. 3. 0.35
Salem OR 97309-0470
Line 4. Cost subtraction. Multiply line 2
Refunds or no tax-due returns, mail to: by line 3. 4.__________
Oregon Department of Revenue Line 5. Taxable commercial activity.
PO Box 14777 Subtract line 4 from line 1. 5.__________
Salem OR 97309-0960 Line 6. Commercial activity threshold. 6. $1,000,000
Line 7. Taxable commercial activity in
Estimated tax payments excess of $1 million threshold.
Subtract line 6 from line 5. 7.__________
Requirements. Oregon CAT estimated payment require-
Line 8. Tax rate. 8. 0.0057
ments aren’t the same as federal estimated tax payment
requirements. You must make estimated tax payments if Line 9. Gross corporate activity tax.
you expect to owe tax of $5,000 or more. Multiply line 7 by line 8. 9.__________
If you don’t make estimated payments as required, you may Line 10. Base tax. 10. $250
be subject to a quarterly underpayment penalty. Line 11. Annual corporate activity tax.
Add line 9 to line 10. 11.__________
Payment due dates
Line 12. Estimated payment amount.
Estimated tax payments are due quarterly, as follows: Divide line 11 by the number of
Calendar year filers: April 30, July 31, October 31, and Janu- estimated payments. 12.__________
ary 31.
Instructions for estimated payments
Fiscal year filers: The last day of the 4th, 7th, and 10th month, Line 1: Amount of commercial activity sourced to Oregon.
and the last day of the first month following the end of your
Determine the total amount of commercial activity sourced
tax year.
to Oregon that the business realized over the course of the
If the due date falls on a Saturday, Sunday, or Oregon legal year. Don’t include receipts from items that are specifically
holiday, use the next regular business day. excluded from commercial activity.

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Line 2: Apportioned expenses. You can claim the greater of Seasonal taxable commercial activity
your labor costs or cost inputs. Remember that expenses can’t
be claimed if they are not associated with commercial activ- Underpayment charges won’t be imposed if each estimated
ity. For example, if you have costs associated with receipts payment is equal to or more than 22.5 percent of the total
you are excluding from commercial activity, you can’t claim tax due based on the amount of Oregon taxable commercial
those costs. activity. Seasonal commercial activity installments are cal-
culated as follows:1
• Labor costs means total compensation of all employees,
not to include compensation paid to any single employee 1. Taxable commercial activity for all
in excess of $500,000. months during the taxable year. 1.__________
• Cost inputs means the cost of goods sold as calculated 2. Divide line 1 by the base period
in arriving at federal taxable income under the Internal percentage 2for all months during the
Revenue Code. taxable year. 2.__________
Line 4: Cost subtraction. The amount of the cost subtraction 3. Determine the tax on line 2. 3.__________
is limited to 95 percent of your commercial activity. This
means that your cost subtraction can’t be more than the 4. Multiply line 3 by the base period
amount on line 1 multiplied by 95 percent. percentage for the filing month and all
months during the taxable year
Line 5: Taxable commercial activity. If your taxable com- preceding the filing month. 4.__________
mercial activity is equal to or less than $1,000,000, stop. You
1
don’t need to make any estimated payments. Taxpayers may only calculate seasonal commercial activity if the base period
percentage for any six consecutive months of the taxable year is at least 70 percent.
Line 12: Estimated payment amount. Divide line 11 by the 2 The base period percentage for any period of months is the average percent that
number of installment payments. For most businesses, this the taxable commercial activity for the corresponding months in each of the three
preceding taxable years bears to the taxable commercial activity for the three pre-
will require four installments. ceding years.

Example 1 Unitary group returns
TV Mart has $10 million of Oregon commercial activity. If a unitary group CAT return is filed, any underpayment
TV Mart has $3,999,996 of labor cost and $3,714,282 of cost shall be computed on a combined basis. Each entity of the
inputs. TV Mart computes its Oregon estimated payments unitary group shall be jointly and severally liable for the
as follows: payment of the estimated tax liability.
Line 1. Oregon commercial activity after
exclusions. 1. $10,000,000
Return instructions
Line 2. Expenses. (greater of cost inputs or
labor costs). 2. $3,999,996 Heading and checkboxes
Line 3. Subtraction percentage. 3. 0.35
Fiscal year beginning and fiscal year ending. CAT taxpayers
Line 4. Cost subtraction. Multiply line 2 who use a fiscal tax year other than the calendar year for
by line 3. 4. $1,399,999 federal tax purposes under Internal Revenue Code Section
Line 5. Taxable commercial activity. 441 must use their fiscal year for CAT.
Subtract line 4 from line 1. 5. $8,600,001 Calendar year filers should leave these fields blank.
Line 6. Commercial activity threshold. 6. $1,000,000
Extension checkbox. Check this box if you submitted an
Line 7. Taxable commercial activity in extension.
excess of $1 million threshold.
Subtract line 6 from line 5. 7. $7,600,001 Amended checkbox. Check the amended box if this is an
amended return.
Line 8. Tax rate. 8. 0.0057
Accounting period change checkbox. Check this box only
Line 9. Gross corporate activity tax.
if both of the following apply:
Multiply line 7 by line 8. 9. $43,320.00
Line 10. Base tax. 10. $250 The CAT return covers a period of less than 12 months; and
Line 11. Annual corporate activity tax. The short-period return is due to a qualified change in
Add line 9 to line 10. 11. $43,570.00 accounting period per IRC §§441 to 444.
Line 12. Estimated payment amount. Note: A short-period return doesn’t automatically constitute
Divide line 11 by the number of a qualified change in accounting period. A taxpayer that isn’t
estimated payments. 12. $10,893.00 engaged in commercial activity for the entire year shouldn’t
check this box. This includes subsidiaries that join or leave
a combined filing group, and newly formed or dissolved
entities.
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Short year checkbox. Check this box if you are filing a short E. Legal entity type. Enter the legal entity type if it is dif-
year return. A short year is a tax year of less than 12 months. ferent from your tax entity type.
Most short-year returns must prorate the tax rate threshold F. Consolidated federal return. Check this box if you filed
of $1 million provided in ORS 317A.125 and 317A.137 as fol-
a consolidated federal return. Include a list of the corpo-
lows: Number of days in the short period divided by 365 rations included in the consolidated federal return with
days multiplied by $1 million. The $500,000 annual labor your Oregon CAT return as an attachment.
cost limit for any single employee must also be prorated.
Proration is not required for short-year returns filed for Combined Oregon return. Check this box if this is a
newly formed or dissolved entities that were not engaged combined Oregon CAT return.
in commercial activity for the entire year. Entities included in consolidated federal return, but not
Short year dates. Enter the dates that your tax year began in Oregon return. Check this box if it applies. Include a
and ended. list of entities included in the consolidated federal return
that aren’t included in this Oregon CAT return. List each
Legal name of designated CAT entity. Enter the legal name of entity’s name and FEIN. Include this attachment with
designated CAT entity (sole proprietor—complete line below) your Oregon CAT return.
FEIN. Enter the federal employer identification number Entities included in combined Oregon CAT return, but
(FEIN) of the entity named on the Oregon return. not in federal return. Check this box if it applies. Include
First name (if sole proprietorship), initial, last name, and each entity’s name and FEIN as an attachment with your
Oregon CAT return.
SSN. If you’re a sole proprietorship without an FEIN, enter
your name and Social Security number (SSN). Only list Elect to file as modified unitary group. Check this box
either an FEIN or an SSN, not both. if you are electing to exclude non-U.S. members with
no commercial activity, or amounts realized but by
Deceased. If you’re filing for someone who died in 2023,
definition are excluded from commercial activity, that
check the “Deceased” box.
is sourced to Oregon.
DBA. If the entity is doing business under a different name,
G. Name and FEIN of parent corporation, if different than
for example, DBA or ABN, enter that name. designated CAT entity (if applicable). If the filing corpo-
Current address, city, state, zip code, country (if other than ration (shown above as legal name) is a subsidiary in an
US). Always enter the entity’s current address. If the address affiliated group, or a subsidiary in a parent-subsidiary
for the year you’re filing was different, don’t use the old controlled group, enter the name and FEIN of the parent
address. corporation. For definition of a subsidiary in an affili-
ated group or a parent-subsidiary controlled group, see
Business information federal Form 1120, Schedule K.
A. Incorporated in (state), incorporated on (date). Enter H. Number of affiliates included in this return (You must
the state in which your entity was incorporated and the include Schedule OR-AF-CAT if this is a combined
date it became incorporated on. return). Enter the total number of affiliates doing busi-
B. State of commercial domicile. Enter in the state of your ness in Oregon that are included in this return. Both the
commercial domicile. designated entity and the entities on the OR-AF-CAT
C. Business activity code. Refer to the current list of North should be included in the count.
American Industry Classification System (NAICS) codes I. If first return, indicate if you are a new business or a
found with your federal tax return instructions. successor to a previous business. Enter the name and
D. Tax entity type. Enter the code from the following list FEIN of the previous business.
that matches the tax entity type of your designated CAT
entity. J. If final return, indicate: Withdrawn o Dissolvedo
Code Entity type o Merged or reorganized. Enter the name and FEIN of
merged or reorganized business.
CC C corporation
SC S corporation K. o Financial institution. Check this box only if the entity
PA Partnership is a financial institution. CAT defines financial institu-
SP Sole proprietorship tions under ORS 314.610 except CAT excludes credit
LC LLC organized as a corporation unions from this definition.
LP LLC organized as a partnership L. o Insurer. Check this box if the entity is an insurer.
LL Limited liability partnership CAT defines insurers as any domestic, foreign, or alien
AT Association/trust insurer, any interinsurance and reciprocal exchange
QS Qualified subchapter S subsidiary as found in Corporate Excise Tax, ORS 317.010. The
SM Single-member LLC definition of insurers doesn’t include title insurers or
OF Other foreign entity health care service providers operating pursuant to ORS
150-106-003-1 (Rev. 07-27-23) Page 7 of 21 Form OR-CAT Instructions

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750.005 to 750.095. Foreign or alien insurers subject to the benefits, but it doesn’t include the employer’s portion of
Oregon retaliatory tax under ORS 731.854 & 859 are an payroll taxes paid or compensation in excess of $500,000
excluded person not subject to the CAT. paid to any single employee.
M. Farming operation. Check this box if the entity is a For purposes of the CAT, “employee” means an individ-
farming operation. CAT defines farming operation as ual who provides services under the control of another
an entity doing business in a sector described under person or organization. Generally, an individual will be
codes 111, 112 or 115 of the North American Industry considered an employee if the person or organization
Classification System. that receives the services is subject to industrial accident
Line instructions insurance, unemployment compensation, federal Social
Security, or federal tax withholding for that individual.
1. Oregon commercial activity plus exclusions. Report the “Employees” doesn’t include:
Oregon sourced commercial activity plus exclusions
that are taken on line 2. Commercial activity (on line • Partners in a partnership who receive guaranteed
3) means the fair market value of all amounts realized payments or distributive income.
in the regular course of a taxpayer’s trade or business • Members in a limited liability company (LLC) who
that meet the transactional test in OAR 150-314-0335(5). receive guaranteed payments or distributive income.
This can include, but isn’t limited to, money, property • Statutory employees described in the Internal Rev-
received, debt forgiven, and services rendered. Com- enue Code (IRC) Section 3121(d)(3).
mercial activity doesn’t include amounts that only meet • Independent contractors as defined in ORS 670.600.
the functional test in OAR 150-314-0335(6).
General method. Report the excess of total labor costs
2. Total exclusions from commercial activity (must attach everywhere over the amount of labor costs that are ineligi-
schedule OR-EXC-CAT). Use Schedule OR-EXC-CAT to ble. Ineligible costs are expenses from transactions among
report the amount and description code of each exclusion. members of a group, as excluded under ORS 317A.106 or
Use the description code from the list in Appendix A. The labor costs that are attributable to receipts from an item that
total of all exclusions is entered on Form OR-CAT, line 2. wouldn’t be commercial activity if sourced to Oregon.
3. Oregon commercial activity. Subtract line 2 from line 1 Substitute method. Report total labor costs everywhere
to determine Oregon commercial activity. reduced by expenses from transactions among members
Substitute method checkbox. Check box if electing of a group, as excluded under ORS 317A.106.
to determine your CAT subtraction using the substi-
7. Apportionment percentage of subtraction. Include an
tute method and complete lines 4 through 8 using the
attachment showing calculations. You must include a
instructions for the substitute method. Leave unchecked
percentage amount on line 7 or your subtraction may
to determine your CAT subtraction using the general
be disallowed.
method and complete lines 4 through 8 using the
instructions for the general method. General method. Report the filing entity’s Oregon
4. Cost inputs. “Cost inputs” means the cost of goods apportionment percentage. Refer to ORS 317A.119(3) for
sold (COGS) as calculated in arriving at federal taxable details on determining the proper percentage.
income under the Internal Revenue Code. Enter 100.0000 if all commercial activity is sourced to
General method. Report the excess of total cost inputs Oregon.
everywhere over the amount of cost inputs that are Rounding. When computing the percentage, round the
ineligible costs. Ineligible costs are expenses from percentage to four decimal places. For example, 12.34558
transactions among members of a group, as excluded
percent should be 12.3456 percent.
under ORS 317A.106 or cost inputs that are attributable
to receipts from an item that wouldn’t be commercial If you are filing as an entity that is identical to the entity
activity if sourced to Oregon. or the group of entities reporting on the apportionment
schedule filed for purposes of Oregon income or excise
Substitute method. Report total cost inputs everywhere
reduced by expenses from transactions among members tax, report the apportionment percentage included on
of a group, as excluded under ORS 317A.106. your most recent Oregon income or excise tax return
• Farming operations. For a farming operation that covering a 12-month period.
doesn’t report cost of goods sold for federal tax If you are filing as a group of entities that isn’t identi-
purposes, “cost inputs” means operating expenses, cal to the group of entities reporting on apportionment
excluding labor costs. schedule filed for the purposes of Oregon income or
5. Labor costs (not to exceed $500,000 for any single excise tax, you must compute your Oregon apportion-
employee). Labor costs include most types of compen- ment factor using the applicable apportionment method
sation paid to employees, such as wages, health insur- under ORS chapters 314 or 317. Include an attachment
ance benefits, retirement benefits, and any other fringe showing your calculations.
150-106-003-1 (Rev. 07-27-23) Page 8 of 21 Form OR-CAT Instructions

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If you are a filing as a group of entities with members such as single-family detached or semidetached houses
subject to multiple apportionment methods, include an and townhouses or row houses where each housing unit:
attachment showing your calculations for each appor-
• Is separated from the adjacent unit by a ground-to-
tionment method and a list of the entities included on
roof wall;
the return that each apportionment method applies to.
• Has no housing units constructed above or below;
Alternative apportionment request included. Check this • Doesn’t share heating or air-conditioning systems;
box if you have included a request for alternative appor- and
tionment with your return. See Appendix C for complete • Doesn’t share utilities.
information. This box is used to denote requests only.
13. Taxable Oregon commercial activity in excess of $1 mil-
You may not use an alternative apportionment method lion threshold. If you are filing a short-year return, the
until the department approves your request in writing.
$1 million threshold must be prorated for the number of
Don’t check this box if you are using the substitute
days to which the short year return is applicable. Your
method of the CAT subtraction. The substitute method
threshold is calculated as follows: Number of days in
isn’t an alternate apportionment method. the short period divided by 365 multiplied by $1 mil-
Substitute method. You may, in lieu of calculating and lion. Subtract your prorated threshold from your taxable
apportioning eligible costs, elect to approximate and appor- Oregon commercial activity on line 11.
tion eligible costs by means of the commercial activity ratio. 16. Total CAT (line 14 plus line 15). If the amount on line 11
Calculate the commercial activity ratio as follows: is less than line 12, enter 0. Enter your total CAT here.
If your total taxable commercial activity reported on
Divide commercial activity sourced to Oregon on line 3 line 11 is below the $1 million threshold, you don’t owe.
by the sum of commercial activity everywhere and the Enter 0 on this line. Don’t enter the base tax from line
following amounts excluded under ORS 317A.100(1)(b): 15 if your taxable commercial activity is below the $1
(Q), (Y), (AA), (DD), (EE), (TT), and (VV). Receipts from million threshold.
transactions among unitary group members are not
included in either the numerator or denominator. 17. 2023 Estimated CAT payments and other prepayments
from Schedule OR-ES-CAT line 7. Include payments
8. Multiply line 6 by line 7. This is your CAT subtraction. made with extension. Report the total amount of
If you are a filing as a group of entities with members estimated tax payments, extension payments or other
subject to multiple apportionment methods, you must prepayments for the 2023 tax year.
figure your CAT subtraction as follows:
Schedule OR-ES-CAT Estimated Tax Payments and Other
• Separate the group into subgroups. Each subgroup Prepayments instructions: Fill in the total estimated
consists of members that use the same apportion- tax payments made before filing your Oregon return.
ment method. Include any payments made with Form OR-CAT-V on
• Separate the costs reported on line 4 or 5, whichever lines 1–4. List name and FEIN of the payer only if dif-
is greater, and assign them to each subgroup based ferent from the entity filing this return.
on the costs attributable to the members of that
subgroup. Note: Combined return filers. If estimated payments
• Multiply the costs assigned to each subgroup by 35 were made under a different name, fill in the paying
percent. This is the subgroup’s eligible costs. entity’s name and FEIN on Schedule OR-ES-CAT for the
• Multiply the subgroup’s eligible costs by the sub- correct application of estimated payments.
group’s apportionment factor. This is the CAT sub- Caution: Missing or incomplete information on payment
traction attributable to the subgroup. made by an affiliate could result in a billing.
• Sum the CAT subtractions attributable to each sub-
group and report the amount on line 8. Include an • Enter overpayment of another year’s tax applied as a
attachment showing your calculations. credit against this year’s tax on line 5.
• Enter payments made with your extension or other
Refer to OAR 150-317-1200 for further details on calculat- prepayments on line 6.
ing your subtraction. • Carry the total from line 7 to Form OR-CAT, line 17.
10. Subcontractor exclusion (ORS 317A.122). If you are a 20. Penalty due with this return. Calculate and enter the
general contractor and incurred labor costs for single- following penalties on this line, if applicable:
family residential construction located in Oregon, you
Quarterly underpayment penalty. See section on Form OR
may qualify for the subcontractor labor payment exclu-
QUP CAT instructions.
sion. The exclusion is 15 percent of the labor costs paid
to a subcontractor. It doesn’t include payments made for Failure to register penalty. If you haven’t previously regis-
materials, land or permits and isn’t allowed for payments tered for the CAT, include a penalty if you failed to register
between subcontractors. Single-family residential construc- within 30 days of exceeding $750,000 in commercial activity
tion means the construction of new single-family housing for the tax year. The penalty isn’t to exceed $100 per month
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per person or unitary group that has failed to register, up to due date (including extensions) of the third year. A 100 per-
a maximum of $1,000 for the year. To calculate your penalty, cent penalty is assessed on each year’s tax balance.
take the date on which your commercial activity exceeded
23. Amount of refund you want applied to your estimated
$750,000 and add 30 days. For the remaining months of the tax account. You may elect to apply part or all of your
taxable year, include a $100 penalty, not to exceed $1,000.
refund to your next year’s estimated tax payments. Fill
(ORS 317A.131) You may use the worksheet below to calculate in the amount you want to apply. Your election is irrevo-
this penalty. cable. Elected amounts that are attributable to estimated
Line 1 Date exceeding $750,000 xx/xx tax payments received prior to the following year’s
first quarter estimated tax due date will be applied as
Enter $100 for each month that is applicable based a timely first quarter installment of the following year.
on line 1 Elected amounts attributable to payments received after
January N/A the following year’s first quarter estimated tax due date
will be applied to the following year’s estimated tax
Line 2 February $100.00
account as of the date the payment is received.
Line 3 March $100.00
Line 4 April $100.00
Schedule OR-AF-CAT instructions
Line 5 May $100.00
Line 6 June $100.00 If you file a combined Oregon CAT return you must com-
Line 7 July $100.00 plete Schedule OR-AF-CAT and submit it with your Oregon
Line 8 August $100.00 return. This form is listed at www.oregon.gov/dor.
Line 9 September $100.00 Schedule OR-AF-CAT should list only those affiliates with
Line 10 October $100.00 Oregon commercial activity that are included in the com-
Line 11 November $100.00 bined Oregon CAT return. Don’t include the designated CAT
Line 12 December $100.00 entity on the Schedule OR-AF-CAT.
Report the following on Schedule OR-AF-CAT:
Line 13 Subtotal $1,100.00
• Name and address of each affiliate with Oregon com-
Line 14 Maximum of $1,000 $1,000.00 mercial activity.
• FEIN.
Line 15 Enter the lesser of line 13 or 14 $1,000.00
• Date the affiliate became part of the unitary group only if
5 percent failure-to-pay penalty. Include a penalty payment this occurred during the tax year being reported.
of 5 percent of your unpaid tax if you don’t pay by the origi- • Date the affiliate left the unitary group only if this
nal due date, even if you have an extension of time to file. occurred during the tax year being reported.
• Amount of Oregon commercial activity.
Exception: You won’t be charged the 5 percent failure-to- • Affiliate’s business activity code.
pay penalty if you meet all of the following requirements: • Enter the two letter code from the following list that
○ You have a valid federal or Oregon extension, and matches the tax entity type of the affiliate.
○ You pay at least 90 percent of your tax after credits by Code Entity type
the original due date of the return, and
○ You file your return within the extension period, and CC C corporation
○ You pay the balance of tax due when you file your SC S corporation
return, and PA Partnership
○ You pay the interest on the balance of tax due when you SP Sole proprietorship
file your return or within 30 days of the date of the bill LC LLC organized as a corporation
you receive from us. LP LLC organized as a partnership
LL Limited liability partnership
20 percent failure-to-file penalty. Include a penalty pay- AT Association/trust
ment of 20 percent of your unpaid tax if you don’t file your QS Qualified subchapter S subsidiary
return within three months after the original filing due date SM Single-member LLC
(including extensions). The failure-to-file penalty is in addi- OF Other foreign entity
tion to the 5 percent failure-to-pay penalty.
• Enter the two letter code if the affiliate’s legal entity type
100 percent late pay and late filing penalty. Include a pen- if it is different from their tax entity type.
alty payment of 100 percent of your unpaid tax if you don’t • Include as many schedules as necessary to list all affiliates
file returns for three consecutive years by the original filing in your CAT unitary group.

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Schedule OR-EXC-CAT instructions Taxpayers are not required to submit documentation to the
department unless requested.
Use this form to report exclusions from commercial activity Part 2: Quarterly underpayment calculations
on your Oregon Corporate Activity Tax Return. Use codes
Quarter 1
from the Appendix A to identify which exclusions you are
Line 8a: Enter the lesser amount of lines 3a, 4a, 5a, or 6a.
claiming. If you are claiming multiple exclusions, list out
Line 8b: Enter the amount of estimated tax paid or credited
each one individually. Make a copy of this form if you have
for the quarter.
more than 9 exclusions from commercial activity. Line 8c: Subtract line 8a from line 8b. If the result is a nega-
Report the following on the Schedule OR-EXC-CAT: tive number, enter 0.
Line 8d: Subtract line 8b from line 8a. If the result is a nega-
• Exclusion code. tive number, enter 0.
• Exclusion amount (can’t be a negative). Line 8e: Multiply the amount on line 8d by 0.05. This is your
• Total amount of exclusions. total underpayment penalty for the quarter.
Quarter 2
Form OR-QUP-CAT instructions Line 9a: Enter the lesser amount of lines 3b, 4b, 5b, or 6b.
Line 9b: Enter the amount of estimated tax paid or credited
You must make estimated tax payments if you expect to for the quarter.
owe tax of $5,000 or more. Failure to make the quarterly esti- Line 9c: Enter the amount of overpayment form line 8c.
mated payments may result in a 5% penalty being assessed Line 9d: Enter the sum of lines 9b and 9c.
on the amount of underpayment. Line 9e: Subtract line 9a from line 9d. If the result is a nega-
Part 1: Figuring the exceptions. tive number, enter 0.
Line 9f: Subtract line 9d from line 9a. If the result is a nega-
Exceptions: Lines 3, 4, 5, and 6 tive number, enter 0.
The quarterly underpayment penalty won’t be imposed Line 9g: Multiply the amount on line 9f by 0.05. This is your
if each estimated tax payment is equal to or more than 25 total underpayment penalty for the quarter.
percent of any one of the following: Quarter 3
• Lines 3a–3d, Exception 1: Current year CAT liability. For Line 10a: Enter the lesser amount of lines 3c, 4c, 5c, or 6c.
tax years beginning on or after January 1, 2022, 90 percent Line 10b: Enter the amount of estimated tax paid or credited
of the tax for the tax year. for the quarter.
• Line 4a–4d, Exception 2: Prior year CAT liability. Line 10c: Enter the amount of overpayment from line 9e
• Line 5a–5d, Exception 3: 90% of the tax computed on annu- Line 10d: Enter the sum of lines 10b and 10c.
alized commercial activity. Line 10e: Subtract line 10a from line 10d. If the result is a
• Line 6a–6d, Exception 4: 90% of the tax computed on sea- negative number, enter 0.
sonal commercial activity. Line 10f: Subtract line 10d from line 10a. If the result is a
negative number, enter 0.
The department won’t assess penalties for underestimating Line 10g: Multiply the amount on line 10f by 0.05. This is
quarterly payments if the business has made a good-faith your total underpayment penalty for the quarter.
effort to comply. The department also won’t assess a penalty
for failure to make a quarterly payment if a business doesn’t Quarter 4
have the financial ability to make the estimated payment. A Line 11a: Enter the lesser amount of lines 3d, 4d, 5d, or 6d.
good-faith effort can be demonstrated by the extent of the Line 11b: Enter the amount of estimated tax paid or credited
taxpayer’s efforts to accurately estimate and pay the required for the quarter.
quarterly installment. Use exception 5 on Form OR-QUP- Line 11c: Enter the amount of overpayment from line 10e.
CAT for good-faith effort. Business taxpayers should keep Line 11d: Enter the sum of lines 11b and 11c.
documentation showing: Line 11e: Subtract line 11a from line 11d. If the result is a
negative number, enter 0.
• The taxpayer can show that they had no ability to deter- Line 11f: Subtract line 11d from line 11a. If the result is a
mine whether they will have CAT liability for the 2023 negative number, enter 0.
tax year, after taking into consideration exclusions and Line 11g: Multiply the amount on line 11f by 0.05. This is
subtractions provided in ORS Chapter 317A. your total underpayment penalty for the quarter.
• The taxpayer made a reasonable estimate of the install-
Line 12: Enter the sum of lines 8e, 9g, 10g, and 11g. This is
ment based on information available to them at the time.
your total penalty owed for all 4 quarters.
• The taxpayer relied on information contained in a pro-
posed administrative rule. Taxpayers must use the best Example
information available and document all information and Your tax liability at the end of the year was $10,000 and you
assumptions relied upon. didn’t pay at least $2,250 ($10,000 tax ÷ 4 quarters = $2,500

150-106-003-1 (Rev. 07-27-23) Page 11 of 21 Form OR-CAT Instructions

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and 90% of $2,500 is $2,250) in each quarter. Your penalty is Multiply by 5%                               x 0.05
calculated for each quarter of estimated tax payment. (Only   Quarter 1 penalty                              23
exception 1 is applicable in this example.)                   Quarter 4 minimum estimated payment due        2,250
                                                              Less payment made                              (1,300)
End of year tax liability                         $10,000
                                                              Less $250 credit from Quarter 3 overpayment    (250)
Divide by four                                  ÷ 4
                                                              Underpayment                                   700
Quarterly estimated payments                      2,500
                                                              Multiply by 5%                               x 0.05
Multiply by 90%                                   0.90
                                                              Quarter 4 penalty                              35
Required minimum quarterly payment                2,250

Payments made:                                                   Do you have questions or need help? 
Quarter 1                                         1,800
Quarter 2                                         2,250         www.oregon.gov/dor
Quarter 3                                         2,500       503-945-8005 
Quarter 4                                         1,300       Monday–Friday 8:00 a.m. to 4:00 p.m.
                                                              Phones are closed on holidays, and 10:00–11:00 a.m. Wednesdays.
Penalty must be calculated on quarters 1 and 4.               Cat.help.dor@ oregon.gov 
Quarter 1 minimum estimated payment due           2,250
Less payment made                                 (1,800)     Contact us for ADA accommodations or assistance in other 
Underpayment                                      450         languages.

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                                                      Appendix A
                              2023 Form OR-CAT Corporate Activity Tax
                                    Schedule OR-EXC-CAT codes
                                    Exclusions from commercial activity
                              Description                                                Citation              Code
Interest income.                                                                         ORS 317A.100(1)(b)(A) 700
Receipts from the sale, exchange or other disposition of an asset.                       ORS 317A.100(1)(b)(B) 701
If received by an insurer, federally reinsured premiums or income from transactions 
                                                                                         ORS 317A.100(1)(b)(C) 702
between a reciprocal insurer and its attorney in fact.
Receipts from hedging transactions.                                                      ORS 317A.100(1)(b)(D) 703
Proceeds received attributable to the repayment, maturity or redemption of 
the principal of a loan, bond, mutual, fund, certificate of deposit or marketable        ORS 317A.100(1)(b)(E) 704
instrument.
Principal amounts received under a repurchase agreement or loan.                         ORS 317A.100(1)(b)(F) 705
Contributions received by a trust, plan or other arrangement.                            ORS 317A.100(1)(b)(G) 706
Compensation received.                                                                   ORS 317A.100(1)(b)(H) 707
Proceeds received from the issuance or sale a taxpayer’s own stock.                      ORS 317A.100(1)(b)(I) 708
Proceeds received from insurance policies owned by the taxpayer.                         ORS 317A.100(1)(b)(J) 709
Gifts or charitable contributions received, membership dues received by trade, 
professional, homeowners’ or condominium associations, payments received 
for educational courses, meetings or meals, or similar payments to a trade, 
                                                                                         ORS 317A.100(1)(b)(K) 710
professional or other similar association, and fundraising receipts received by any 
person when any excess receipts are donated or used exclusively for charitable 
purposes. 
Damages received as the result of litigation in excess of amounts that, if received 
                                                                                         ORS 317A.100(1)(b)(L) 711
without litigation, would be treated as commercial activity.
Property, money and other amounts received or acquired by an agent on behalf of 
                                                                                         ORS 317A.100(1)(b)(M) 712
another in excess of the agent’s commission, fee or other remuneration.
Tax refunds, other tax benefit recoveries and reimbursements.                            ORS 317A.100(1)(b)(N) 713
Pension reversions.                                                                      ORS 317A.100(1)(b)(O) 714
Contributions to capital.                                                                ORS 317A.100(1)(b)(P) 715
Receipts from the sale, transfer, exchange or other disposition of motor vehicle fuel.   ORS 317A.100(1)(b)(Q) 716
Federal and state excise taxes paid on cigarettes or tobacco products.                   ORS 317A.100(1)(b)(R) 717
Federal and state excise taxes paid on alcoholic beverages.                              ORS 317A.100(1)(b)(S) 718
Federal and state excise taxes paid on marijuana items.                                  ORS 317A.100(1)(b)(T) 719
Local taxes collected by a restaurant or other food establishment on sales of 
                                                                                         ORS 317A.100(1)(b)(U) 720
meals, prepared food or beverages.
Tips or gratuities collected by a restaurant or other food establishment and passed 
                                                                                         ORS 317A.100(1)(b)(V) 721
on to employees. 
Receipts from vehicle dealer trades to meet a specific customer’s preference or an 
                                                                                         ORS 317A.100(1)(b)(W) 722
exchange of new vehicles between franchised motor vehicle dealerships.
Registration fees or taxes collected by a vehicle dealer at the sale or other transfer 
of a motor vehicle, that are owed to a third party by the purchaser of the motor         ORS 317A.100(1)(b)(X) 723
vehicle and passed to the third party by the dealer. 
Receipts from a financial institution for services provided to the financial institution 
in connection with the issuance, processing, servicing and management of loans 
or credit accounts, if the financial institution and the recipient of the receipts have  ORS 317A.100(1)(b)(Y) 724
at least 50 percent of their ownership interests owned or controlled, directly or 
constructively through related interests, by common owners.
Amounts specified under ORS chapter 462 that must be paid to or collected by the 
Department of Revenue as a tax and the amounts specified under ORS chapter               ORS 317A.100(1)(b)(Z) 725
462 to be used as purse money.
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                                        Appendix A (continued)
                              2023 Form OR-CAT Corporate Activity Tax
                              Schedule OR-EXC-CAT codes
                              Exclusions from commercial activity
                              Description                                                  Citation                Code
Receipts of residential care facilities as defined in ORS 443.400 or in-home care agencies 
as defined in ORS 443.305, to the extent that the revenue is derived from or received  ORS 317A.100(1)(b)(AA)      726
as compensation for providing services to a medical assistance or Medicare recipient.
Dividends received.                                                                        ORS 317A.100(1)(b)(BB)  727
Distributive income received from a pass-through entity.                                   ORS 317A.100(1)(b)(CC)  728
Receipts from sales to a wholesaler in this state, if the seller receives certification 
at the time of sale from the wholesaler that the wholesaler will sell the purchased        ORS 317A.100(1)(b)(DD)  729
property outside this state.
Receipts from the wholesale or retail sale of groceries, including receipts of a 
person that owns groceries at the time of sale and compensation of any consignee 
                                                                                           ORS 317A.100(1)(b)(EE)  730
engaged in effecting the sale of groceries on behalf the owner of groceries, but 
only to  the extent that the compensation relates to grocery sales.
Receipts from transactions among members of a unitary group.                               ORS 317A.100(1)(b)(FF)  731
Moneys, including public purpose charge moneys collected under ORS 757.612 
and costs of funding or implementing cost-effective energy conservation measures 
collected under ORS 757.689, that are collected from customers, passed to a                ORS 317A.100(1)(b)(GG)  732
utility and approved by the Public Utility Commission and that support energy 
conservation, renewable resource acquisition and low-income assistance programs.
Moneys collected by a utility from customers for the payment of loans through 
                                                                                           ORS 317A.100(1)(b)(HH)  733
on-bill financing.
Surcharges collected under ORS 757.736.                                                    ORS 317A.100(1)(b)(II)  734
Power Act Exchange credits or pursuant to any settlement associated with the 
                                                                                           ORS 317A.100(1)(b)(JJ)  735
exchange credit. 
Moneys collected or recovered for fees payable under ORS 756.310, right-of-way 
                                                                                           ORS 317A.100(1)(b)(KK)  736
fees, franchise fees, privilege taxes, federal taxes and local taxes.
Charges paid to the Residential Service Protection Fund.                                   ORS 317A.100(1)(b)(LL)  737
Universal service surcharge moneys collected or recovered and paid into the 
                                                                                           ORS 317A.100(1)(b)(MM)  738
universal service fund. 
Moneys collected for public purpose funding.                                               ORS 317A.100(1)(b)(NN)  739
Moneys collected or recovered and paid into the federal universal service fund.            ORS 317A.100(1)(b)(OO)  740
In the case of a seller or provider of telecommunications services, the amount of 
tax imposed under ORS 403.200 for access to the emergency communications                   ORS 317A.100(1)(b)(PP)  741
system that is collected from subscribers or consumers.
The amount of tax imposed under ORS 320.305 and of any local transient lodging 
                                                                                           ORS 317A.100(1)(b)(QQ)  742
tax imposed upon the occupancy of transit lodging.
The amount of tax imposed under ORS 320.415 upon retail sales of bicycles.                 ORS 317A.100(1)(b)(RR)  743
The amount of tax imposed under ORS 307.872 upon the rental price of heavy equipment.      ORS 317A.100(1)(b)(SS)  744
Farmer sales to an agricultural cooperative in this state that is a cooperative 
                                                                                           ORS 317A.100(1)(b)(TT)  745
organization described in section 1381 of the Internal Revenue Code.
Revenue received by a business entity that is mandated by contract or subcontract 
to be distributed to another person or entity if the revenue constitutes sales             ORS 317A.100(1)(b)(UU)  746
commissions that are paid to a person who is not an employee of the business entity.
Receipts from the sale of fluid milk by dairy farmers that are not members of an 
                                                                                           ORS 317A.100(1)(b)(VV)  747
agricultural cooperative. 
Receipts from the sale of prescription drugs sold by an “eligible pharmacy.”               Senate Bill 1524 (2022) 748

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Appendix B
Sample certificates

Oregon Corporate Activity Tax
Motor Vehicle Resale Certificate

For purposes of the Corporate Activity Tax (CAT), motor vehicle dealers may exclude receipts realized from the sale or
transfer of a motor vehicle to another vehicle dealer, provided that certain requirements are met. In order to qualify for the
exclusion, the transaction must meet the following requirements:
1. The transferor and transferee must be licensed motor vehicle dealers; and
2. The transfer must be of a new vehicle between franchised dealerships; or
3. The transfer must be made for the purpose of resale by the transferee vehicle dealer; and
4. The transfer must be based upon the transferee vehicle dealer’s need to meet a specific customer’s preference.
Because both the transferee and the transferor may be eligible to claim the exclusion, both motor vehicle dealers must retain
documentation demonstrating that the vehicle transfer meets the applicable requirements. In the case of new vehicle transfers
between franchised dealerships, documents prepared at the time of transfer will suffice. For trades made for the purpose of
resale to meet a specific customer’s request, any document will suffice, provided that it contains the following information:
1. Name, address, dealer license number, and federal tax identification number for both the seller and the purchaser.
2. Vehicle description, including Vehicle Identification Number (VIN), if one exists.
3. A statement that the vehicle is being transferred for resale in order to meet a specific customer’s preference.
4. The signature of the transferee vehicle dealer, the dealer’s employee, or authorized representative of the dealer.
5. Date of execution of the document.
The form below is provided by Department of Revenue as an example. Motor vehicle dealers are not required to use this
form. Any document containing all of the required information is sufficient.
Don’t submit the resale certificate documentation to the Department of Revenue when filing a return. Retain the
documentation for your records. You may be asked to provide documentation to verify the transfer meets the exclusion
requirements.

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                              Oregon Corporate Activity Tax
                               Motor Vehicle Resale Certificate

To be completed and signed by the motor vehicle dealer receiving the qualifying motor vehicle

Transferee dealership name                              Dealership Federal Tax Identification number

Dealership license number                               Licensing jurisdiction 

Transferee street address                               City, State, Zip

Year/Make/Model and VIN (if available) 

  I certify that the transfer of the above listed motor vehicle(s) was for the purpose of resale, and was based on my 
  dealership’s need to meet a specific customer’s preference.

Signature of dealer, employee or representative         Date

Transferer motor vehicle dealer

Transferer dealership name                              Dealership Federal Tax Identification number

Dealership license number                               Licensing jurisdiction 

Transferer street address                               City, State, Zip

This form shall be retained by both dealers and shall not be submitted to the Oregon Department of Revenue 
as part of the tax return.

150-106-003-1 (Rev. 07-27-23)                   Page 16 of 21                  Form OR-CAT Instructions

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Oregon Corporate Activity Tax

Are receipts from sales to Oregon wholesalers excludable?
Answer: A taxpayer may exclude receipts from sales to Oregon wholesalers if the wholesaler provides the taxpayer with
an out-of-state resale certificate showing that the purchased items will be resold out of the state. Any document may serve
as an out-of-state resale certificate, provided it contains the required information. Refer to the “Required documentation”
section below for information on the out-of-state resale certificate.
Information for sellers
A seller may only exclude receipts from a sale to a wholesaler in Oregon if the wholesaler provides the seller with an out-
of-state resale certificate. The seller must obtain an out-of-state resale certificate from the wholesaler at the time of the sale.
Refer to the “Required documentation” section below to ensure you have sufficient documentation to claim the exclusion.
Example: Rosslyn LLC manufactures widgets. Rosslyn sells widgets to Twinbrook Wholesalers for $10,000. Twinbrook
Wholesalers issues Rosslyn an out-of-state resale certificate at the time of the transaction. The out-of-state resale certificate
shows that Twinbrook will resell 80 percent of the purchased widgets to California and Nevada; and 20 percent of the
purchased widgets will be resold in Oregon. While Rosslyn realized $10,000 from the sale to Twinbrook, with an out-of-
state resale certificate, Rosslyn is able to exclude 80 percent ($8,000) of the receipts from the sale to Twinbrook. Rosslyn will
include 20 percent ($2,000) in their commercial activity.
Information for wholesalers
A wholesaler is a business entity primarily doing business by merchant distribution of tangible personal property to retailers
or other wholesalers. A wholesaler in Oregon who purchases property with the intent to resell the property outside of the
state may provide the seller with an out-of-state resale certificate. This certificate allows the seller to claim an exclusion for
the out-of-state resales, and must be provided at the time of the transaction. Any document may serve as an out-of-state
resale certificate, provided it contains the required information. Refer to the “Required documentation” section below for
information on the out-of-state resale certificate.
A wholesaler must determine the amount of purchased property that will be resold out of Oregon based on the facts at the
time it purchases the property. If, at the time of purchase, the wholesaler is unable to determine the amount of purchased
property that will be resold outside of Oregon, it may estimate the amount of property to be sold out of state using either the
approximation ratio or another method described below, if, at the time of the wholesale purchase, the ratio or other method
fairly and accurately reflects estimated out-of-state resales of property delivered from the wholesaler’s Oregon locations.

Approximation ratio
Commercial activity from Oregon sales in the prior year

Commercial activity from all sales in the prior year
The approximation ratio is a fraction. The numerator is the amount of commercial activity the wholesaler realized
from all sales to Oregon customers during the prior year. The denominator is the commercial activity realized from
all sales everywhere in the prior year.
Wholesalers located in multiple states may only include in the ratio commercial activity realized from sales of property
delivered from their Oregon locations. Sales of items delivered from a wholesaler’s locations outside of Oregon are not
included in the numerator or denominator of the ratio.

Example: Alpha Corporation is a wholesaler with one location in Klamath Falls, Oregon. In March 2021, Alpha purchases
tangible personal property from Indigo LLC, paying a total price of $500,000. At the time of the transaction, Alpha is unable
to determine the exact amount of tangible property that Alpha will resell outside of Oregon. In order to provide Indigo with
an out-of-state resale certificate, Alpha uses the approximation ratio based on Alpha’s 2020 commercial activity.
In 2020, Alpha realized a total of $2 million dollars of commercial activity from the sale of widgets delivered from its
Klamath Falls location to customers everywhere, including $100,000 to Oregon customers delivered from Alpha’s Klamath
Falls location. Alpha calculates the approximation ratio by dividing Oregon commercial activity by everywhere commercial
activity resulting in an approximation ratio of 0.05. ($100,000 ÷ $2,000,000 = 0.05)
150-106-003-1 (Rev. 07-27-23) Page 17 of 21 Form OR-CAT Instructions

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Oregon Corporate Activity Tax

Alpha applies the approximation ratio of 0.05 to the purchase price ($500,000 x 0.05 = $25,000). Of the total $500,000 widget
purchase, Alpha approximates that $25,000 will be resold in Oregon, and $475,000 will be resold outside of Oregon. Alpha
provides Indigo with an out-of-state resale certificate documenting that $475,000 worth of the purchased widgets will be
resold outside of Oregon.
While Indigo realized $500,000 of commercial activity from the sale to Alpha, only $25,000 of receipts from the sale will be
included in Indigo’s Oregon commercial activity. Indigo will exclude $475,000.
Note: If, at the time of the wholesale sale, the approximation ratio does not fairly represent a wholesaler’s estimated out-
of-state sales, the wholesaler may not use the approximation ratio. However, a wholesaler may use a reasonable alternative
method that fairly and accurately reflects, at the time of the wholesale sale, the amount that the wholesaler estimates will be
resold outside Oregon. A wholesaler who uses an alternative method must document the alternative method used, including
how the method was determined, why the approximation ratio based on prior year’s resales from the wholesaler’s Oregon
locations is not a fair representation of the wholesaler’s sales at the time of the wholesale purchase, and retain certain informa-
tion. Once an alternative method has been used, the wholesaler must continue to use the same method, until the alternative
method is no longer a fair and accurate representation of the wholesaler’s out-of-state sales. Refer to OAR 150-317-1400 for
further requirements on using alternative methods.

Required documentation for out-of-state resale certificates
Any document may serve as an out-of-state resale certificate, provided that it contains:
• The wholesaler’s legal name and Oregon address;
• The wholesaler’s federal tax identification number;
• The date of the purchase;
• The total amount of purchased property;
• The purchase price paid by the wholesaler;
• The dollar amount of purchased property that the wholesaler will resell outside of Oregon; and
• The signature of the wholesaler, their authorized representative, or employee, certifying that the entity is a wholesaler, as
that term is defined in Oregon Revised Statute (ORS) 317A.100(1)(b)(DD).
The Oregon Department of Revenue has provided an out-of-state resale certificate form that wholesalers may provide tax-
payers to use to document excluded sales. Wholesalers are not required to use the department’s form. Any document with
all of the information listed above is sufficient.
Sellers must retain the certification for their records. Don’t submit the certificate to the Oregon Department of Revenue
unless requested.
Farming operations taxpayers seeking information about obtaining certificates from a broker or wholesaler for sales of
agricultural commodities, or who want to use industry average percentages, should consult the FAQ “How can farming
operations selling agricultural commodities demonstrate out-of-state-sales?”

150-106-003-1 (Rev. 07-27-23) Page 18 of 21 Form OR-CAT Instructions

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                              Oregon Corporate Activity Tax
                              Out-of-State Resale Certificate for Sales to Wholesalers

 A. Wholesaler information
     Legal name                                                      Federal tax identification number

     Oregon address

 B. Purchased property
     Description of purchased property:                              Date of purchase:

                                                                     Total amount of purchased property:

                                                                     Purchase price:

                                                                     Amount purchased for resale out-of-state 
                                                                     (dollar amount):

     I hereby certify that the purchaser is a wholesaler primarily doing business by merchant distribution of 
     tangible personal property to retailers or other wholesalers.  1

     Name of wholesaler, authorized representative, or employee

     Signature of wholesaler, authorized representative, or employee

 Don’t attach or submit this form to the Oregon Department of Revenue as part of a tax return.

    1ORS 317A.100(1)(b)(DD)

150-106-003-1 (Rev. 07-27-23)                   Page 19        of 21                                    Form OR-CAT Instructions

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                                                   Appendix C
                              Oregon Corporate Activity Tax return OR-CAT
                              Alternative apportionment
Oregon law allows taxpayers to request an alternative          • Include a written petition for alternative apportionment 
method of apportionment using the instructions below. You         with your original or amended return. 
must receive written authorization from the department         • Don’t complete the original or amended return using an 
before using an alternative method of apportioning your           alternative method of apportionment unless/until that 
subtraction. The substitute method of the CAT subtrac-            alternative method of apportionment has been approved. 
tion isn’t an alternative apportionment method. Don’t          • Mail your petition to our normal return filing addresses. 
check the alternative apportionment box if you use the            See “Filing checklist.” 
substitute method.
                                                               Note: Clearly identify that you’re requesting alternative 
Administration                                                 apportionment by writing the words “Alternative appor-
We will review the alternative apportionment request and       tionment request” at the top and adhere to all other require-
issue a decision letter.                                       ments. Determinations to amended returns may take longer 
                                                               to process.
If your alternative apportionment petition is denied, you 
may appeal the denial of your petition to Oregon Tax Court     Method 2—Alternative apportionment petition 
as provided in ORS 305.275. 
                                                               submitted separately from your original or 
If your alternative apportionment petition is approved, you    amended return 
may amend your returns within the normal statute of limi-
tations. The approval of your petition will remain in effect   • Your written petition must have the title “Alternative 
unless and until we revoke it during audit or you file a new      apportionment request.” 
petition and receive our approval of the new proposal.         • Mail your petition to: Oregon Department of Revenue, 
                                                                  CAT Section, 955 Center St NE, Salem OR 97301-2555. 
Allow at least 6 months for us to make a determination. 
Also, note that all petitions for alternative apportionment    Both methods of petition 
may result in additional review and documentation requests.
                                                               • The petition must be signed by the taxpayer or the tax-
Instructions                                                      payer’s representative. 
• Your written petition for alternative apportionment can      • The petition must fully explain the extent of the taxpayer’s 
be submitted with your original or amended return                 business activity in Oregon and why standard or substi-
(Method 1) or separate from your original or amended              tute apportionment doesn’t fairly and equitably represent 
return (Method 2).                                                the taxpayer’s business activity in Oregon. 
• For administrative purposes, we prefer Method 2.             • Your petition must fully explain your proposed method of 
                                                                  alternative apportionment and explain why this proposed 
Method 1—Alternative apportionment petition                       method is more accurate in reflecting business activity 
submitted with your original or amended return                    in Oregon than either the standard formula or substitute 
• Check the alternative apportionment checkbox on line 7          method of apportionment. 
of the return. Failure to do so could result in your request   • The petition must show how the Oregon return (Form 
being overlooked. This box is to denote requests only. You        OR-CAT) would be completed, including the net tax 
may not use an alternative apportionment method until             calculation, using the proposed method of alternative 
the department approves your request in writing.                  apportionment.

150-106-003-1 (Rev. 07-27-23)                          Page 20 of 21                                    Form OR-CAT Instructions

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                                                      Appendix D
                              Instructions for estimated payments if using the annualized method
If you don’t realize your commercial activity evenly through-       • Cost inputs means the cost of goods sold as calculated 
out the year, you may figure your required estimated pay-           in arriving at federal taxable income under the Internal 
ments using the annualized installment method.                      Revenue Code.
Oregon Commercial Activity.    Determine the total amount           Cost subtraction. The amount of the cost subtraction is lim-
of commercial activity sourced to Oregon that the business          ited to 95 percent of your commercial activity. This means 
realized year-to-date. Don’t include receipts from items that       that your cost subtraction can’t be more than the total com-
are excluded from commercial activity. 
                                                                    mercial activity multiplied by 95 percent.
Greater of cost inputs or labor costs for the tax year. You 
                                                                    Taxable commercial activity. If your taxable commercial 
are allowed to claim the greater of your labor costs or cost 
                                                                    activity after the $1,000,000 threshold is equal to or less then 
inputs. Remember that expenses can’t be claimed if they are 
not associated with commercial activity. For example, if you        zero, stop. You don’t need to make any installment payments 
have costs associated with receipts you are excluding from          this quarter.
commercial activity, you can’t claim those costs.                   Annualization multiplier. This is 12 months divided by 
• Labor costs means total compensation of all employees,            the number of months in the period. Percentage applied.            
not to include compensation paid to any single employee             This is the percentage amount you must pay to avoid 
in excess of $500,000.                                              underpayment. 
                                        Annualized commercial activity worksheet Table 1
                                                                                                              First, second, 
                                                                      First and second  First, second, 
                                                      First quarter                                           third, and fourth 
                                                                      quarter          and third quarter
                                                                                                              quarter

              Oregon commercial activity (year 
Line 1
              to date, minus exclusions)

              Everywhere expenses (greater of 
Line 2        cost inputs or labor costs, year to 
              date)
Line 3        Subtraction percentage                  0.35            0.35                   0.35             0.35
Line 4        Multiply line 2 by line 3
              Apportionment percentage of 
Line 5
              subtraction
              Cost subtraction (multiply line 4 by 
Line 6
              line 5)
              Taxable commercial activity for each 
Line 7
              period (subtract line 6 from line 1)
Line 8        Annualization multiplier                 4              2                      1.3              1
              Annualized taxable commercial 
Line 9
              activity (line 7 multiplied by line 8)
Line 10 Commercial activity threshold                 $1,000,000      $1,000,000        $1,000,000            $1,000,000   
              Annualized taxable commercial 
Line 11 activity over threshold (subtract line 
              10 from line 9)
              Estimated Oregon corporate 
Line 12 activity tax (multiply line 11 by 
              0.0057 and add $250)
              Percentage that applied for each 
Line 13                                               22.50%          45%                    67.50%           90%
              period
              Year-to-date required estimated 
Line 14
              tax amount (multiply line 12 by line 13)
Line 15 Other prepayments
              Installment payment amount 
Line 16
              (subtract line 15 from line 14)

150-106-003-1 (Rev. 07-27-23)                          Page 21   of 21                                        Form OR-CAT Instructions

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