Oregon Business Tax Rates Change

July 2009

The new law increases the minimum tax on S-corporations from $10 to $150 and imposes a $150 entity tax on entities filing a partnership return.

The C-corporation minimum tax increases from $10 to an amount that ranges from $150 for corporations with less than $500,000 in Oregon sales to $100,000 for corporations with Oregon sales of more than $100 million. It also creates a second marginal corporate tax rate of 7.9 percent that is applied to taxable income greater than $250,000 for tax years 2009 and 2010; reduces the rate to 7.5 percent for tax years 2011 and 2012. For tax years after 2012 the top tax rate of 7.6 percent applies to net income greater than $10 million. The tax changes are applicable beginning in 2009. Please call us if you have any questions or would like to review your 2009 tax planning.