Advocacy in Action: Chamber Testimony Supports Tax Relief for Small Business (SB 381 & SB 490)

The Springfield Area Chamber of Commerce supports tax policies that stimulate economic growth, ensure fairness across all business sectors, and maintain transparency. They advocate for reforms that reduce administrative burdens, promote fiscal responsibility, and minimize disproportionate impacts on businesses, especially small and emerging enterprises. With this in mind, the Chamber has voiced its support for Senate Bills 381 and 490, two measures aimed at providing much-needed tax relief for Oregon’s small businesses.

These bills propose increasing the exemption threshold for the Corporate Activity Tax (CAT) from $1 million to $5 million, easing the financial burden on thousands of local employers. By raising the threshold, more small businesses would be exempt from the tax, allowing them to reinvest in their operations, employees, and communities.

“Increasing the [CAT Tax] exemption threshold to $5 million will provide meaningful relief to over 14,000 Oregon small businesses while preserving the integrity of the tax’s revenue structure.”

Vonnie Mikkelsen, President & CEO, Springfield Area Chamber of Commerce

The current CAT exemption disproportionately impacts small businesses, many of which operate on slim profit margins. While 73% of businesses filing under the CAT generate less than $5 million in commercial activity, they contribute only a small fraction – about 6.5% – of total tax revenue. Adjusting the exemption would provide relief to over 14,000 Oregon businesses without significantly affecting the state’s overall tax collection. Given the ongoing economic pressures of inflation, workforce shortages, and post-pandemic recovery, this change would help local businesses remain stable and competitive.

Your voice matters!
The deadline to submit testimony on SB 381 and SB 490 is Wednesday, March 5, at 9:00am.
For SB 381, written testimony or comment can be submitted here.
For SB 490, written testimony or comment can be submitted here.
For help submitting testimony, you can take a look at this video tutorial.

The Chamber has submitted testimony urging lawmakers to pass either SB 381 or SB 490 to ensure that Oregon’s small businesses can continue driving economic growth. They emphasize that supporting small businesses ultimately strengthens local communities by preserving jobs and fostering long-term prosperity. The full letter of support can be read below.

March 4, 2025 
RE: Support for SB 381 and SB 490

Chair Meek, Vice-Chair McLane, members of the Senate Committee on Finance and Revenue:

On behalf of the Springfield Area Chamber of Commerce and the hundreds of businesses we represent, I urge your support for SB 381 and SB 490, legislation that will provide much-needed tax relief for Oregon’s small businesses by increasing the exemption threshold for the Corporate Activity Tax (CAT) from $1 million to $5 million.

Oregon’s small businesses are the backbone of our local economies, creating jobs, providing essential services, and fostering economic resilience in our communities. However, in the wake of a global pandemic, businesses continue to face significant challenges, including workforce shortages, persistent inflation, and ongoing economic uncertainty. Now more than ever, the state must take steps to support the sustainability and growth of our Main Street businesses.

The current $1 million CAT exemption disproportionately affects small businesses, many of whom operate on thin margins. 73% of businesses filing are under $5 million in commercial activity; however, they only account for about 6.5% of total CAT revenue. Increasing the exemption threshold to $5 million will provide meaningful relief to over 14,000 Oregon small businesses while preserving the integrity of the tax’s revenue structure.

We respectfully ask this committee to pass either SB 381 or SB 490 to support Oregon’s small businesses and strengthen our local economies. Thank you for your time and consideration.

Sincerely, 

Vonnie Mikkelsen 
President and CEO 
Springfield Area Chamber of Commerce 

More About the Springfield Chamber’s Business Advocacy Efforts
As a trusted convener and provider of business resources, the Springfield Chamber is committed to fostering policies and incentives that contribute to our competitive position in private sector job creation, retention, and economic growth. The Chamber recognizes the systemic interdependencies of a healthy economy and provides an ear and a voice for local business at the confluence of government, commerce, and community. Through a robust platform of member advocacy services, the Chamber advocates for business by increasing visibility, dialogue, and representation at local, state, and federal policy circles around issues of impact and interest to their members.