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                                 Oregon Corporate Activity Tax
                                 Form OR-CAT Instructions                                            2022

                                 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 .................................... 10
Unitary groups ..........................................................................2           Form OR-QUP-CAT instructions .......................................... 10
E-file ............................................................................................3 Do you have questions or need help? ................................... 11
Federal or other state audit changes .......................................3                        Appendix A, 2022 Schedule OR-EXC-CAT code list ..........12
Amended returns ......................................................................3              Appendix B, Sample certificates ........................................... 14
Protective claims .......................................................................3
                                                                                                     Appendix C, Alternative apportionment ............................19
Additional information on certain exclusions ......................3
                                                                                                     Appendix D, Instructions for estimated payments  
Agents. ........................................................................................3    if using the annualized method ...........................................20

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. 09-14-22)    Page 1 of 20                                                        Form OR-CAT Instructions

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What’s new Who must file?
Persons or unitary groups with Oregon commercial activity
Senate Bill 1524 of $1 million or more are required to file a CAT return.

The Oregon Legislature made a change to the CAT in the What form do I use?
2022 session. Senate Bill 1524 adds that amounts received
by an eligible pharmacy for the sale of prescription drugs The Oregon CAT program only has one tax return. Taxpay-
are excluded from the definition of commercial activity and ers will file tax returns on the Form OR-CAT, Oregon Cor-
are exempt from the tax imposed under ORS 317A.116. The porate Activity Tax Return. Other CAT forms and schedules
exclusion applies to tax years beginning on or after January include:
1, 2022 and ends on December 31, 2025. “Eligible pharmacy” • Form OR-CAT-V, Oregon Corporate Activity Tax Payment
means a pharmacy that has nine or fewer locations under Voucher.
common ownership in this state. “Eligible pharmacy” does • Schedule OR-EXC-CAT, Exclusions From Commercial
not include a pharmacy that caters primarily to veterinary Activity.
customers. “Pharmacy” has the meaning given that term in • Schedule OR-AF-CAT, Schedule of Affiliates for Form
ORS 689.005. 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. 1. A group of entities that is united by more than 50 per-
• View correspondence we sent you. cent common ownership; and
• Check the status of your refund. 2. A group of entities that has, directly or indirectly
• File appeals. between members or parts of the enterprise, either a
• Submit an extension. sharing or an exchange of value shown by:
• Add an authorized representative/POA. • Centralized management or a common executive
• Submit documents. force;
For more information and instructions on setting up your • Centralized administrative services or functions
Revenue Online account, visit www.oregon.gov/dor. As resulting in economies of scale; or
updates or changes are made to these instructions, they will • Flow of goods, capital resources, or services showing
also be posted to our website. functional integration.
Note: The CAT return may not be filed through Revenue A unitary group shall register, file and pay taxes as a single
Online. taxpayer and may exclude receipts from transactions among
its members under the CAT.
Unitary business with non-U.S. members. Unitary groups
Filing information may make an election to exclude non-U.S. members from the
return if the non-U.S. member has no Oregon commercial
Who must register? activity or exclusions from commercial activity that would
Persons or unitary groups with Oregon commercial activity otherwise be sourced to Oregon (including, but not limited
exceeding $750,000 must register for the CAT. Commercial to, receipts from transactions between members of the uni-
activity is the total amount realized by a business from the tary group). Refer to OAR 150-317-1025 for further details.

transactions and activity in the regular course of their busi- Designated CAT entity
ness in Oregon, without deduction for expenses incurred
by the business. Commercial activity is realized according Any business, or unitary group of businesses, doing busi-
to the method of accounting used for federal income tax ness in Oregon may have responsibilities under the CAT.
purposes. This includes all business entity types, such as C and S
corporations, partnerships, sole proprietorships, and other
Registration is due within 30 days of meeting the $750,000 entities. Unitary groups must designate a single member
registration threshold. You don’t need to register again if you of the unitary group with substantial nexus in this state
registered in a prior year. A penalty of $100 per month may to register, file and pay the tax on behalf of the group. For
be assessed for failing to register, up to $1,000 in a tax year. more information on designated reporting entities, refer to
You can register through Revenue Online. OAR 150-317-1023.
150-106-003-1 (Rev. 09-14-22) Page 2 of 20 Form OR-CAT Instructions

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E-file                                                          final determination by filing an amended return. Don’t file an 
                                                                amended return before the pending action is final.
We accept calendar year, fiscal year, short year, and amended 
electronic CAT returns utilizing the IRS Modernized e-file 
platform (MeF). Your tax return software may also allow you to  Additional information on certain 
make electronic payments when e-filing your original return. 
                                                                exclusions 
For a list of software vendors or for more information, search 
“e-filing” at  www.oregon.gov/dor.                              ORS 317A.100(1)(b)
                                                                Agents. An agent may exclude property, money and other 
Federal or other state audit changes
                                                                amounts received or acquired by an agent on behalf of 
If the IRS or other taxing authority changes or corrects        another in excess of the agent’s commission, fee or other 
your federal or other state return for any tax year, you        remuneration. For the agent exclusion to exist, a person (the 
must notify us. File an amended CAT return if the federal       agent) must be acting on behalf of and under the direction 
or other state audit report results in a change to taxable      and control of another person (the principal), and all the facts 
Oregon commercial activity and include a copy of the fed-       and circumstances must be considered. 
eral or other state audit report. Mail this separately from 
                                                                Auto dealers. A vehicle dealer may exclude receipts realized 
your current year’s return. If you don’t amend or send a 
                                                                from vehicle dealer trades (the sale or transfer of a motor 
copy of the federal or other state report, we have two years 
                                                                vehicle from one vehicle dealer to another), provided that 
from the date we’re notified of the change to issue a defi-
                                                                the trade is of a new vehicle(s) between franchised dealer-
ciency notice. To receive a refund you must file a claim for 
                                                                ships, or the trade is made for the purpose of resale and 
refund of tax within two years of the date of the federal or 
                                                                based on the need to meet a specific customer’s preference. 
other state report.
                                                                Vehicle dealers claiming this exclusion for vehicles traded 
Amended returns                                                 to meet a specific customer preference are required to retain 
                                                                documentation that shows the transaction meets the require-
Use the form for the tax year you’re amending and check         ments necessary to claim the exclusion. The documentation 
the amended box. Always use your current address. If the        needs to include the following:
address for the year you’re amending has changed, don’t 
use the old address.                                            1.  Name, address, and federal ID for both dealers involved 
                                                                in the transaction.
Fill in all amounts on your amended return, even if they’re     2.  Vehicle description.
the same as originally filed. If you’re amending to change      3.  A statement that the vehicle is purchased for resale.
exclusions or commercial activity, include detail of all items  4.  Date and signature of the purchasing dealer, their 
and amounts.                                                    employee or authorized representative.
If you change taxable income by filing an original or           5.  Dealers must include their dealer license numbers from 
amended federal or other state return, you must file an         the appropriate licensing jurisdiction.
amended CAT return within 90 days of when the original or       6.  The document must include a statement that the trade 
amended federal or other state return is filed if the change    occurred to meet a specific customer’s preference. 
results in a change to commercial activity. Include a copy of   A sample dealer trade resale certificate can be found in Appen-
your original or amended federal or other state return with     dix B. Dealers are not required to submit copies of the resale 
your amended CAT return and attach a letter of explanation      certification document while filing their return. They must 
to your amended return that explains what was amended           retain the resale certification as required in OAR 150-317-1410: 
and why.                                                        Motor Vehicle Resale Certificate—Documentation Required. 
You may make payments online for your amended returns 
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         For purposes of the CAT, “groceries” are food and food 
applies to e-filed amended returns. For paper returns, you      items that would be eligible for purchase with Supplemental 
may pay online or include a check or money order with your      Nutrition Assistance Program (SNAP) benefits. Essentially, 
return. For e-filed returns, you may pay online or send a       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, 
when your claim to a refund is contingent on a pending court    Requirement 1: The sale is of a grocery item that would be 
decision or legislative action. Notify us within 90 days of the eligible for purchase with SNAP benefits, and 
150-106-003-1 (Rev. 09-14-22)                     Page 3 of 20                                                 Form OR-CAT Instructions

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Requirement 2: The seller typically intends or expects that additional wholesaler information including an out-of-state
the sale of food to the purchaser is for home consumption resale certificate template.
by the purchaser.

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

purpose of resale without further processing, and ○ Making electronic payments with your e-filed return.
We accept electronic payments when e-filing your
(A) The purchaser is a qualified SNAP retailer with a original return.
current permit to accept SNAP benefits from the U.S. ○ Making check or money order payments with your
Department of Agriculture; or paper return. Make your check or money order payable
(B) The purchaser is a store that meets the required quali- to Oregon Department of Revenue. Write the following
fications to be a SNAP retail food store under 7 U.S.C. on your check or money order:
2012(o)(1), (2), (4) or (5).
— Federal employer identification number (FEIN) or
The wholesale seller must retain documentation that, at the Social security number (SSN) if a sole proprietor.
time of sale, the items were sold and delivered to a purchaser — Tax year.
that meets the requirements in (A) or (B). See Appendix B for — Daytime phone.
150-106-003-1 (Rev. 09-14-22) Page 4 of 20 Form OR-CAT Instructions

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○ To speed up processing: Payment options
— Don’t use Form OR-CAT-V payment voucher.
Important: For details about making payments with your
— Don’t staple payment to the return.
return, see “Filing checklist.”
— Don’t send cash or postdated checks.
— Don’t use red or purple or any gel ink. Estimated payments may be made by electronic funds
transfer (EFT), online, or by check. You can make EFT pay-
○ Sending check or money order payments separate from
ments through Revenue Online or through your financial
your return. Follow the instructions above, except don’t institution. To learn more about how to make payments, visit
include with your return. Mail separate payments with our website. If you pay by EFT, don’t send Form OR-CAT-V,
Form OR-CAT-V to: Oregon Corporate Activity Tax Payment Voucher.
Oregon Department of Revenue Mail. If paying by mail, send each payment with a Form
PO Box 14950 OR-CAT-V, payment voucher, to: Oregon Department of
Salem OR 97309- 0950 Revenue, PO Box 14950, Salem OR 97309-0950. Include on
Don’t use this address for filing your return. your check:
• Assembling and submitting your return. Submit your • Federal employer identification number (FEIN) or Social
security number (SSN) if a sole proprietor.
Oregon return forms in the following order:
• Tax year.
1. Form OR-CAT, Oregon Corporate Activity Tax Return; • Daytime phone.
2. Schedule OR-AF-CAT, Schedule of Affiliates;
3. Schedule OR-EXC-CAT, Exclusions from commercial Estimated payments worksheet (see instructions
activity. below worksheet)
Line 1. Oregon commercial activity after
Tax-due returns, without payment voucher, mail to:
exclusions. 1.__________
Oregon Department of Revenue Line 2. Apportioned expenses. (greater of
PO Box 14790 cost inputs or labor costs). 2.__________
Salem OR 97309-0470
Line 3. Subtraction percentage. 3. 0.35
Refunds or no tax-due returns, mail to: Line 4. Cost subtraction. Multiply line 2
Oregon Department of Revenue by line 3. 4.__________
PO Box 14777 Line 5. Taxable commercial activity.
Salem OR 97309-0960 Subtract line 4 from line 1. 5.__________
Line 6. Commercial activity threshold. 6. $1,000,000
Estimated tax payments Line 7. Taxable commercial activity in
excess of $1 million threshold.
Requirements. Oregon CAT estimated payment require- Subtract line 6 from line 5. 7.__________
ments aren’t the same as federal estimated tax payment Line 8. Tax rate. 8. 0.0057
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.
Payment due dates Add line 9 to line 10. 11.__________
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.

150-106-003-1 (Rev. 09-14-22) Page 5 of 20 Form OR-CAT Instructions

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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 amount of Oregon taxable commercial activity. Seasonal
those costs. commercial activity installments are calculated as follows:1

• Labor costs means total compensation of all employees, 1. Taxable commercial activity for all
not to include compensation paid to any single employee months during the taxable year. 1.__________
in excess of $500,000. 2. Divide line 1 by the base period
• Cost inputs means the cost of goods sold as calculated percentage 2for all months during the
in arriving at federal taxable income under the Internal taxable year. 2.__________
Revenue Code.
3. Determine the tax on line 2. 3.__________
Line 4: Cost subtraction. The amount of the cost subtraction
is limited to 95 percent of your commercial activity. This 4. Multiply line 3 by the base period
means that your cost subtraction can’t be more than the percentage for the filing month and all
amount on line 1 multiplied by 95 percent. months during the taxable year
preceding the filing month. 4.__________
Line 5: Taxable commercial activity. If your taxable com-
1
mercial activity is equal to or less than $1,000,000, stop. You 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.
don’t need to make any estimated payments. 2 The base period percentage for any period of months is the average percent that
Line 12: Estimated payment amount. Divide line 11 by the 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-
number of installment payments. For most businesses, this ceding years.
will require four installments.
Unitary group returns
Example 1
If a unitary group CAT return is filed, any underpayment
TV Mart has $10 million of Oregon commercial activity. shall be computed on a combined basis. Each entity of the
TV Mart has $3,999,996 of labor cost and $3,714,282 of cost unitary group shall be jointly and severally liable for the
inputs. TV Mart computes its Oregon estimated payments payment of the estimated tax liability.
as follows:
Line 1. Oregon commercial activity after
Return instructions
exclusions. 1. $10,000,000

Line 2. Expenses. (greater of cost inputs or Heading and checkboxes
labor costs). 2. $3,999,996
Fiscal year beginning and fiscal year ending. CAT taxpayers
Line 3. Subtraction percentage. 3. 0.35
who use a fiscal tax year other than the calendar year for
Line 4. Cost subtraction. Multiply line 2 federal tax purposes under Internal Revenue Code Section
by line 3. 4. $1,399,999 441 must use their fiscal year for CAT.
Line 5. Taxable commercial activity. Calendar year filers should leave these fields blank.
Subtract line 4 from line 1. 5. $8,600,001
Extension checkbox. Check this box if you submitted an
Line 6. Commercial activity threshold. 6. $1,000,000
extension.
Line 7. Taxable commercial activity in
excess of $1 million threshold. Amended checkbox. Check the amended box if this is an
Subtract line 6 from line 5. 7. $7,600,001 amended return.
Line 8. Tax rate. 8. 0.0057 Alternative apportionment request included. Check this
box if you have included a request for alternative appor-
Line 9. Gross corporate activity tax.
tionment with your return. See Appendix C for complete
Multiply line 7 by line 8. 9. $43,320.00
information. This box is used to denote requests only. You
Line 10. Base tax. 10. $250 may not use an alternative apportionment method until the
Line 11. Annual corporate activity tax. department approves your request in writing.
Add line 9 to line 10. 11. $43,570.00 Accounting period change checkbox. Check this box only
Line 12. Estimated payment amount. if both of the following apply:
Divide line 11 by the number of
The CAT return covers a period of less than 12 months; and
estimated payments. 12. $10,893.00
The short-period return is due to a qualified change in
accounting period per IRC §§441 to 444.

150-106-003-1 (Rev. 09-14-22) Page 6 of 20 Form OR-CAT Instructions

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Note: A short-period return doesn’t automatically constitute    LL Limited liability partnership
a qualified change in accounting period. A taxpayer that isn’t  AT Association/trust
engaged in commercial activity for the entire year shouldn’t    QS Qualified subchapter S subsidiary
check this box. This includes subsidiaries that join or leave   SM Single-member LLC
a combined filing group, and newly formed or dissolved          OF Other foreign entity
entities.
                                                                E.  Legal entity type. Enter the legal entity type if it is dif-
Short year checkbox. Check this box if you are filing a short      ferent from your tax entity type. 
year return. A short year is a tax year of less than 12 months. 
                                                                F.  Consolidated federal return. Check this box if you filed 
Most short-year returns must prorate the tax rate threshold 
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.          Combined Oregon return. Check this box if this is a 
Proration is not required for short-year returns filed for         combined Oregon CAT return.
newly formed or dissolved entities that were not engaged 
in commercial activity for the entire year.                        Entities included in consolidated federal return, but not 
                                                                   in Oregon return. Check this box if it applies. Include a 
Short year dates. Enter the dates that your tax year began         list of entities included in the consolidated federal return 
and ended.                                                         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 
                                                                   each entity’s name and FEIN as an attachment with your 
First name (if sole proprietorship), initial, last name, and       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 2022,           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 
    found with your federal tax return instructions.            I. List the tax years for which federal waivers of the stat-
D.  Tax entity type. Enter the code from the following list        ute of limitations are in effect and dates which waivers 
    that matches the tax entity type of your designated CAT        expire. Include a statement with your return if you need 
    entity.                                                        more space than the return provides.
Code     Entity type                                            J.  List the tax years for which your federal income attribut-
                                                                   able to Oregon commercial activity was changed by an 
CC       C corporation
                                                                   IRS audit or by an amended federal return filed during 
SC       S corporation
                                                                   this tax year.
PA       Partnership
SP       Sole proprietorship                                    K.  If first return, indicate if you are a new business or a 
LC       LLC organized as a corporation                            successor to a previous business. Enter the name and 
LP       LLC organized as a partnership                            FEIN of the previous business. 
150-106-003-1 (Rev. 09-14-22)                        Page 7 of 20                                          Form OR-CAT Instructions

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L. If final return, indicate: Withdrawn o Dissolvedo under ORS 317A.106 or cost inputs that are attributable
to receipts from an item that wouldn’t be commercial
o Merged or reorganized. Enter the name and FEIN of
activity if sourced to Oregon.
merged or reorganized business.
Substitute method. Report total cost inputs everywhere
M. o Financial institution. Check this box only if the entity
reduced by expenses from transactions among members
is a financial institution. CAT defines financial institu-
of a group, as excluded under ORS 317A.106.
tions under ORS 314.610 except CAT excludes credit
• Farming operations. For a farming operation that
unions from this definition.
doesn’t report cost of goods sold for federal tax
N. o Insurer. Check this box if the entity is an insurer. purposes, “cost inputs” means operating expenses,
CAT defines insurers as any domestic, foreign, or alien excluding labor costs.
insurer, any interinsurance and reciprocal exchange
as found in Corporate Excise Tax, ORS 317.010. The 5. Labor costs (not to exceed $500,000 for any single
definition of insurers doesn’t include title insurers or employee). Labor costs include most types of compen-
health care service providers operating pursuant to ORS sation paid to employees, such as wages, health insur-
750.005 to 750.095. Foreign or alien insurers subject to the ance benefits, retirement benefits, and any other fringe
Oregon retaliatory tax under ORS 731.854 & 859 are an benefits, but it doesn’t include the employer’s portion of
excluded person not subject to the CAT. payroll taxes paid or compensation in excess of $500,000
paid to any single employee.
O. Farming operation. Check this box if the entity is a
farming operation. CAT defines farming operation as For purposes of the CAT, “employee” means an individ-
an entity doing business in a sector described under ual who provides services under the control of another
codes 111, 112 or 115 of the North American Industry person or organization. Generally, an individual will be
Classification System. considered an employee if the person or organization
that receives the services is subject to industrial accident
Line instructions insurance, unemployment compensation, federal Social
1. Oregon commercial activity plus exclusions. Report the Security, or federal tax withholding for that individual.
Oregon sourced commercial activity plus exclusions “Employees” doesn’t include:
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 (attach sched- everywhere over the amount of labor costs that are ineligi-
ule OR-EXC-CAT). Use Schedule OR-EXC-CAT to report ble. Ineligible costs are expenses from transactions among
the amount and description code of each exclusion. Use members of a group, as excluded under ORS 317A.106 or
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
apportionment percentage. Refer to ORS 317A.119(3) for
4. Cost inputs. “Cost inputs” means the cost of goods
details on determining the proper percentage.
sold (COGS) as calculated in arriving at federal taxable
income under the Internal Revenue Code. Enter 100.0000 if all commercial activity is sourced to
Oregon.
General method. Report the excess of total cost inputs
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.
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If you are filing as an entity that is identical to the entity to a subcontractor. It doesn’t include payments made for
or the group of entities reporting on the apportionment materials, land or permits and isn’t allowed for payments
schedule filed for purposes of Oregon income or excise between subcontractors. Single-family residential construc-
tax, report the apportionment percentage included on tion means the construction of new single-family housing
your most recent Oregon income or excise tax return such as single-family detached or semidetached houses
covering a 12-month period. and townhouses or row houses where each housing unit:
If you are filing as a group of entities that isn’t identi- • Is separated from the adjacent unit by a ground-to-
cal to the group of entities reporting on apportionment roof wall;
schedule filed for the purposes of Oregon income or • Has no housing units constructed above or below;
excise tax, you must compute your Oregon apportion- • Doesn’t share heating or air-conditioning systems;
ment factor using the applicable apportionment method and
under ORS chapters 314 or 317. Include an attachment • Doesn’t share utilities.
showing your calculations.
13. Taxable Oregon commercial activity in excess of $1 mil-
If you are a filing as a group of entities with members lion threshold. If you are filing a short-year return, the
subject to multiple apportionment methods, include an $1 million threshold must be prorated for the number of
attachment showing your calculations for each appor- days to which the short year return is applicable. Your
tionment method and a list of the entities included on threshold is calculated as follows: Number of days in
the return that each apportionment method applies to. 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. 17. 2022 Estimated CAT payments and other prepayments
Calculate the commercial activity ratio as follows: from Schedule OR-ES-CAT line 7. Include payments
made with extension. Report the total amount of
Divide commercial activity sourced to Oregon on line 3
estimated tax payments, extension payments or other
by the sum of commercial activity everywhere and the
prepayments for the 2022 tax year.
following amounts excluded under ORS 317A.100(1)(b):
(Q), (Y), (AA), (DD), (EE), (TT), and (VV). Receipts from Schedule OR-ES-CAT Estimated Tax Payments and Other
transactions among unitary group members are not Prepayments instructions: Fill in the total estimated
included in either the numerator or denominator. tax payments made before filing your Oregon return.
Include any payments made with Form OR-CAT-V on
8. Multiply line 6 by line 7. This is your CAT subtraction.
lines 1–4. List name and FEIN of the payer only if dif-
If you are a filing as a group of entities with members
subject to multiple apportionment methods, you must ferent from the entity filing this return.
figure your CAT subtraction as follows: Note: Combined return filers. If estimated payments
• Separate the group into subgroups. Each subgroup were made under a different name, fill in the paying
consists of members that use the same apportion- entity’s name and FEIN on Schedule OR-ES-CAT for the
ment method. correct application of estimated payments.
• Separate the costs reported on line 4 or 5, whichever Caution: Missing or incomplete information on payment
is greater, and assign them to each subgroup based made by an affiliate could result in a billing.
on the costs attributable to the members of that
subgroup. • Enter overpayment of another year’s tax applied as a
• Multiply the costs assigned to each subgroup by 35 credit against this year’s tax on line 5.
percent. This is the subgroup’s eligible costs. • Enter payments made with your extension or other
• Multiply the subgroup’s eligible costs by the sub- prepayments on line 6.
group’s apportionment factor. This is the CAT sub- • Carry the total from line 7 to Form OR-CAT, line 17.
traction attributable to the subgroup. 20. Penalty due with this return. See section on Form OR-
• Sum the CAT subtractions attributable to each sub- QUP-CAT instructions.
group and report the amount on line 8. Include an
attachment showing your calculations. Failure to register penalty. If you haven’t previously regis-
tered for the CAT include a penalty if you failed to register
Refer to OAR 150-317-1200 for further details on calculat- for the CAT program within 30 days of exceeding $750,000
ing your subtraction. in commercial activity for the tax year. The penalty isn’t to
10. Subcontractor exclusion (ORS 317A.122). If you are a exceed $100 per month per person or unitary group that has
general contractor and incurred labor costs for single- failed to register up to a maximum of $1,000 for the year. To
family residential construction located in Oregon, you calculate your penalty, take the date on which your com-
may qualify for the subcontractor labor payment exclu- mercial activity exceeded $750,000 and add 30 days. For the
sion. The exclusion is 15 percent of the labor costs paid remaining months of the taxable year, include a $100 penalty,
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not to exceed $1,000. (ORS 317A.131) You may use the work- • Affiliate’s business activity code.
sheet below to calculate this penalty. • Enter the two letter code from the following list that
matches the tax entity type of the affiliate.
Line 1 Date exceeding $750,000 xx/xx
Code Entity type
Enter $100 for each month that is applicable based
CC C corporation
on line 1
SC S corporation
January N/A PA Partnership
Line 2 February $100.00 SP Sole proprietorship
Line 3 March $100.00 LC LLC organized as a corporation
Line 4 April $100.00 LP LLC organized as a partnership
Line 5 May $100.00 LL Limited liability partnership
AT Association/trust
Line 6 June $100.00
QS Qualified subchapter S subsidiary
Line 7 July $100.00 SM Single-member LLC
Line 8 August $100.00 OF Other foreign entity
Line 9 September $100.00
• Enter the two letter code if the affiliate’s legal entity type
Line 10 October $100.00 if it is different from their tax entity type.
Line 11 November $100.00 • Include as many schedules as necessary to list all affiliates
Line 12 December $100.00 in your CAT unitary group.

Line 13 Subtotal $1,100.00
Schedule OR-EXC-CAT instructions
Line 14 Maximum of $1,000 $1,000.00
Use this form to report exclusions from commercial activity
Line 15 Enter the lesser of line 13 or 14 $1,000.00 on your Oregon Corporate Activity Tax Return. Use codes
23. Amount of refund you want applied to your estimated from the Appendix A to identify which exclusions you are
tax account. You may elect to apply part or all of your claiming. If you are claiming multiple exclusions, list out
refund to your next year’s estimated tax payments. Fill each one individually. Make a copy of this form if you have
in the amount you want to apply. Your election is irrevo- more than 9 exclusions from commercial activity.
cable. Elected amounts that are attributable to estimated Report the following on the Schedule OR-EXC-CAT:
tax payments received prior to the following year’s
first quarter estimated tax due date will be applied as • Exclusion code.
a timely first quarter installment of the following year. • Exclusion amount.
Elected amounts attributable to payments received after • Total amount of exclusions.
the following year’s first quarter estimated tax due date
will be applied to the following year’s estimated tax Form OR-QUP-CAT instructions
account as of the date the payment is received.
You must make estimated tax payments if you expect to
Schedule OR-AF-CAT instructions owe tax of $5,000 or more. Failure to make the quarterly esti-
mated payments may result in a 5% penalty being assessed
If you file a combined Oregon CAT return you must com- on the amount of underpayment.
plete Schedule OR-AF-CAT and submit it with your Oregon
return. This form is listed at www.oregon.gov/dor. Line 3 exceptions
Quarterly underpayment penalty won’t be imposed if each
Schedule OR-AF-CAT should list only those affiliates with
estimated tax payment is equal to or more than 25 percent
Oregon commercial activity that are included in the com-
of any one of the following:
bined Oregon CAT return. Don’t include the designated CAT
entity on the Schedule OR-AF-CAT. • For tax years beginning on or after January 1, 2022, 90
percent of the tax for the tax year. Use exception 1 on Form
Report the following on Schedule OR-AF-CAT:
OR-QUP-CAT.
• Name and address of each affiliate with Oregon com- • Your estimated payments are equal to or greater than 100
mercial activity. percent of your prior year CAT liability. Use exception 2
• FEIN. on Form OR-QUP-CAT.
• Date the affiliate became part of the unitary group only if • An amount equal to 90 percent of the tax computed on
this occurred during the tax year being reported. annualized taxable commercial activity. Use exception 3
• Date the affiliate left the unitary group only if this on Form OR-QUP-CAT.
occurred during the tax year being reported. • An amount equal to 90 percent of the amount obtained by
• Amount of Oregon commercial activity. applying Internal Revenue Code §6655(e)(3)(C) to Oregon
150-106-003-1 (Rev. 09-14-22) Page 10 of 20 Form OR-CAT Instructions

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taxable commercial activity. Use exception 4 on Form Part 3—Penalty on underpayments
OR-QUP-CAT.
Line 19: Enter the amount of underpayment from line 9 for
The department won’t assess penalties for underestimating each quarter. If there was no underpayment, enter 0.
quarterly payments if the business has made a good-faith Line 20: For each quarter, multiply line 19 by 5%.
effort to comply. The department also won’t assess a penalty
Line 21: Add the amount from line 20 for each quarter. This
for failure to make a quarterly payment if a business doesn’t
have the financial ability to make the estimated payment. A your total underpayment penalty for the year.
good-faith effort can be demonstrated by the extent of the Example
taxpayer’s efforts to accurately estimate and pay the required
quarterly installment. Use exception 5 on Form OR-QUP- Your tax liability at the end of the year was $10,000 and you
CAT for good-faith effort. Business taxpayers should keep didn’t pay at least $2,250 ($10,000 tax ÷ 4 quarters = $2,500
documentation showing: and 90% of $2,500 is $2,250) in each quarter. Your penalty is
• The taxpayer can show that they had no ability to deter- calculated for each quarter of estimated tax payment.
mine whether they will have CAT liability for the 2022
tax year, after taking into consideration exclusions and End of year tax liability $10,000
subtractions provided in ORS Chapter 317A. Divide by four ÷ 4
• The taxpayer made a reasonable estimate of the install- Quarterly estimated payments 2,500
ment based on information available to them at the time. Multiply by 90% 0.90
• The taxpayer relied on information contained in a pro- Required minimum quarterly payment 2,250
posed administrative rule. Taxpayers must use the best
information available and document all information and Payments made:
assumptions relied upon. Quarter 1 1,800
Taxpayers are not required to submit documentation to the Quarter 2 2,250
department unless requested. Quarter 3 2,500
Part 1—Figuring the underpayment Quarter 4 1,300

Line 4: Enter the installment amount from line 10, 12 or 13 Penalty must be calculated on quarters 1 and 4.
for each quarter. Quarter 1 minimum estimated payment due 2,250
Line 5: Enter the amount of estimated tax paid or credited
Less payment made (1,800)
for each quarter.
Line 6: Enter the amount of overpayment from the previous Underpayment 450
quarter (see line 8). Multiply by 5% x 0.05
Line 7: Enter the total tax paid (line 5 plus line 6). Quarter 1 penalty 23
Line 8: For each quarter that line 4 is less than line 7, subtract Quarter 4 minimum estimated payment due 2,250
line 4 from line 7.
Less payment made (1,300)
Line 9: For each quarter that line 7 is less than or equal to
line 4, subtract line 7 from line 4. Underpayment 950
Multiply by 5% x 0.05
Part 2—Figuring the required installments
Quarter 4 penalty 48
Line 10: Divide line 1 by 4 and multiply the result by 90%.
Line 11: Multiply your prior year CAT (line 2) by 25% for
each quarter. Do you have questions or need help?
Line 12: If you compute tax liability on an annualized basis,
enter the installment amounts from the annualized method www.oregon.gov/dor
worksheet for each quarter. 503-945-8005
Line 13: If you have seasonal commercial activity, enter the
Cat.help.dor@ oregon.gov
tax attributable to each quarter’s recurring seasonal activity.
Exception 3 Worksheet—Figuring annualized commercial Contact us for ADA accommodations or assistance in other
activity languages.
If you compute your tax liability on an annualized basis,
use this worksheet to determine your required quarterly
installments.

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                                                      Appendix A
                                 2022 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)
                                 2022 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.

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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. 09-14-22) Page 16 of 20 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. 09-14-22) Page 17 of 20 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. 09-14-22)                   Page 18        of 20                                    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.                                                      alternative method of apportionment has been approved. 
                                                               • Mail your petition to our normal return filing addresses. 
Administration                                                    See “Filing checklist.” 
We will review the alternative apportionment request and       Note: Clearly identify that you’re requesting alternative 
issue a decision letter.                                       apportionment by writing the words “Alternative appor-
If your alternative apportionment petition is denied, you      tionment request” at the top and adhere to all other require-
may appeal the denial of your petition to Oregon Tax Court     ments. Determinations to amended returns may take longer 
as provided in ORS 305.275.                                    to process.

If your alternative apportionment petition is approved, you    Method 2—Alternative apportionment petition 
may amend your returns within the normal statute of limi-      submitted separately from your original or 
tations. The approval of your petition will remain in effect   amended return 
unless and until we revoke it during audit or you file a new 
petition and receive our approval of the new proposal.         • Your written petition must have the title “Alternative 
                                                                  apportionment request.” 
Allow at least 6 months for us to make a determination.        • Mail your petition to: Oregon Department of Revenue, 
Also, note that all petitions for alternative apportionment       CAT Section, 955 Center St NE, Salem OR 97301-2555. 
may result in additional review and documentation requests.
                                                               Both methods of petition 
Instructions
                                                               • The petition must be signed by the taxpayer or the tax-
• Your written petition for alternative apportionment can         payer’s representative. 
be submitted with your original or amended return              • The petition must fully explain the extent of the taxpayer’s 
(Method 1) or separate from your original or amended              business activity in Oregon and why standard apportion-
return (Method 2).                                                ment doesn’t fairly and equitably represent the taxpayer’s 
• For administrative purposes, we prefer Method 2.                business activity in Oregon. 
Method 1—Alternative apportionment petition                    • Your petition must fully explain your proposed method of 
                                                                  alternative apportionment and explain why this proposed 
submitted with your original or amended return 
                                                                  method is more accurate in reflecting business activity in 
• Check the alternative apportionment checkbox on the front       Oregon than the standard formula. 
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. 09-14-22)                          Page 19 of 20                                    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. 09-14-22)                          Page 20   of 20                                        Form OR-CAT Instructions

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