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Oregon imposes a tax on on gross corporate receipts, known as the corporate activity tax, as well as a tax on corporate income. Passed into law in May of 2019 as Oregon House BIll 3427, the corporate activity tax imposes a 0.57 percent on all “corporate activity” in excess of $1 Million. With few exceptions, all sales within Oregon over $1 Million per year are subject to the tax. The law does allow for a 35 percent deduction to account for the cost of goods sold. Businesses that are located outside of Oregon that sell more than $1 Million of goods or services are also subject to the tax. The tax is based on gross sales, not on profits (as with the corporate income tax). For instance, if a business were to sell $10 Million of merchandise in the state of Oregon, they would be liable for a $33,595 tax ($9 Million x .65 + $250), regardless of how much profit they made on those sales.