While recent polls indicate support for Measure 97 may have softened, there’s still a strong chance it will pass in November.
This measure imposes an unlimited 2.5 percent minimum tax on Oregon gross receipts of entities taxed as C-corporations in excess of $25 million, removing the current cap on Oregon’s minimum tax of $100,000 per year. Pass-through entities such as limited liability companies and S-corporations aren’t subject to this tax. C-corporations that qualify as “benefit companies” in Oregon will remain subject to the current minimum tax structure. If passed, the new law becomes effective for tax years beginning on or after January 1, 2017.
Moss Adams can help you determine Measure 97’s impact on your organization as well as analyze and implement mitigating strategies. We’ll also identify and quantify other implications associated with possible alternatives, such as federal income tax implications from deconsolidating a federal income tax return or additional state reporting requirements resulting from a nexus study. Additionally, Moss Adams can keep you informed of any proposed legislative changes that could impact strategies you may be considering.
For more information, contact your Moss Adams professional or email statetax@mossadams.com.