OTA Dispatch Issue 4, 2020

23 www.ortrucking.org Issue 4 | 2020 THE OREGON DEPARTMENT of Revenue has issued a rule to provide motor carriers guidance in sourcing their receipts to Oregon for purposes of the new Corporate Activities Tax (CAT). The new rule, OAR 50-317-1070, directs motor freight carriers to assign all receipts from trips that begin and end in Oregon, and to assign receipts from interstate freight based on the ratio of Oregon mobile property miles traveled by interstate movements or shipments divided by total mobile property miles traveled by all movements or shipments. A “mobile property mile” is defined as the movement of a unit of mobile property one mile, whether loaded or unloaded. Oregon Issues Rule for Motor Freight CAT Sourcing By Jennifer Young, Moss Adams This rule closely follows the rule that has been in effect for apportioning taxable income for Oregon income tax purposes. Taxpayers with a 2020 CAT liability of at least $10,000 must make quarterly estimated payments. The Department of Revenue has issued additional rules regarding the estimated payment requirements and potential penalty abatements. Your tax advisor can assist you in determining your estimated 2020 CAT liability, registering, and making estimates if you have not done so, and complying with documentation standards.