Info. About Oregon Corporate Sales Tax

Corporate Activity Tax:

In 2019 the Oregon State Legislature passed a new tax called the Corporate Activity Tax, which went into effect in January, 2020. This is a .57% Sales Tax. It taxes corporations on their gross receipts / sales. That rate is currently at .57%. This affects all consumers in Oregon, because it increases the cost of doing business for companies. For instance, our company paid over $33,000 in 2021. Most companies can’t simply absorb that large of an amount and take it out of their profits. It’s already challenging enough in Oregon to maintain a profitable company as it is with the current labor market and other mandates Oregon puts onto business. So in order to be able to afford to pay this new tax, most companies raise rates, accordingly.

A lot of our suppliers and service providers are listing this tax as a line-item on their quotes, invoices, etc. to us. We decided to do the same, because it increases public awareness. We feel it’s important to see how legislation like this affects everyone.

So for the same reasons above, instead of hiding this cost into our labor rate or other costs, we prefer to line-item this cost, just to show how this affects prices for everyone.

We try hard to keep our prices as affordable as we can, while still making sure we maintain a profitable enough company to meet our financial obligations and keep our business going strong. We aren’t excited to have to raise prices by this amount nor are we excited for the increase in this sales tax that will likely come in the future. But it’s something we don’t have much say in. Perhaps if more people are aware, we can all have an impact on future decisions our legislature or voters make.

In the mean time, we hope you will still find value in the services and products we provide. We believe our quality, reputation and professionalism are well worth it and we look forward to showing you why we have so many happy customers here at Lewis Landscape Services.