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SB 125 Oregon Senate · 2025 Regular Session

Relating to exemption of health care receipts from corporate activity tax; prescribing an effective date.

Summary
[ Exempts ] Phases in an exemption from commercial activity subject to corporate activity tax reimbursements for certain health care services, including care provided to medical assistance recipients and to Medicare recipients. Exempts receipts from medications administered or dispensed in a clinical setting other than a hospital. Applies to tax years beginning on or after January 1, 2026[ , and before January 1, 2032 ]. Takes effect on the 91st day following adjournment sine die.
Issues: ✓ Budget & TaxesSupports Budget & TaxesExempts healthcare provider receipts from corporate activity tax, reducing tax burden for services to medical assistance/Medicare recipients, aligning with tax relief indicators.95% confidence ✓ HealthcareSupports HealthcareExempts healthcare service receipts from corporate tax, reducing provider costs to improve access for Medicare/medical assistance recipients and support public health programs.90% confidence
Bill status in committee 1 of 4 stages cleared
Introduction
Jan 2025
Committee Review
Floor Vote
Governor
Introduced Jan 13, 2025 Last action Jun 28, 2025
Maddy AI version diff · 1 comparison

What changed between versions

Introduced → A-Engrossed · 4 edits
MODERATE
This bill modifies how Oregon's Corporate Activity Tax treats health care reimbursements by phasing in exemptions over two stages. The original version exempted all qualifying health care reimbursements immediately, while the amended version applies a 50% partial exemption for the first two years, then full exemption thereafter.
Scope change
The bill's effective dates were split into three phases: partial exemption from 2026-2028, full exemption from 2028-2030, and permanent exemption from 2030 onward.
TIMELINE

Changed the effective date structure from a single 2026-2032 period to a three-phase approach with different effective dates for each phase.

ELIGIBILITY

Added a 50% partial exemption for health care reimbursements during the first phase (2026-2028), reducing the immediate tax benefit for taxpayers.

DEFINITION

Reorganized the statutory language to clarify that both medication receipts and health care reimbursements are excluded from commercial activity, with specific reimbursement categories listed.

REQUIREMENT

Added explicit language requiring taxpayers to subtract 50% of qualifying reimbursements from commercial activity during the partial exemption phase.

Floor votes

How they voted

No floor votes recorded yet.
Full legislative history

Actions timeline

Total actions
8
Key actions
2
Committee
4
Jun 28, 2025
Upper · Passed
In committee upon adjournment.
upper
Jun 12, 2025
Committee
Referred to Tax Expenditures by order of the President.
upper
Jun 12, 2025
Upper · Passed
Recommendation: Do pass with amendments and be referred to Tax Expenditures. (Printed A-Eng.)
upper
Jan 17, 2025
Committee
Referred to Finance and Revenue.
upper
Jan 13, 2025
Introduced
Introduction and first reading. Referred to President's desk.
upper
0 primary · 0 co-sponsors

Sponsors

No sponsor information available.