2009 Oregon Legislature Sets New Corporate Minimum Tax

By Jill Laney

            Effective September 28, 2009, the C-corporation minimum tax will increase 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 sales in excess of $100 million.  S-corporations will pay a minimum tax of $150 annually and partnerships will pay a $150 entity tax. 

            The Legislature also created a second marginal corporate tax rate of 7.9 percent to be applied to a corporation’s taxable income in excess of $250,000 in tax years 2009 and 2010.  The marginal rate will decrease to 7.5 percent for tax years 2011 and 2012.   For tax years 2013 and beyond, the marginal rate will re-set to 7.6 percent, but will apply only in cases where net income is greater than $10 million.