SALEM, Ore. — Governor Kate Brown on Monday announced some new tax relief for small businesses hit hard by coronavirus — though for many businesses, it's likely to be too little, too late.
Brown's office said that the Oregon Department of Revenue will eliminate penalties and interest on 2019 income tax due from Oregon businesses that are struggling to pay the bills amid ongoing COVID-19 restrictions.
“I have heard from business owners across the state about the struggle to keep their doors open during these difficult times," said Governor Brown. "Small business owners who play by the rules shouldn’t face penalties and fees because COVID-19 has robbed them of their livelihood. In March, the Department of Revenue implemented measures to help all taxpayers navigate COVID-19. Today we are announcing an expansion of that relief to help business owners who are struggling.”
The new provisions apply to personal income, corporate excise, and corporate income taxes. All penalties on 2019 income taxes due from impacted businesses are waived. All interest on 2019 income tax on impacted businesses with less than $5 million in gross receipts are also waived.
Extended payment plans of up to 36 months for any impacted taxpayer also remain available.
Brown's office said that the state Department of Revenue will also extend the due date for the amusement device tax, which applies to lottery machines, for the second quarter of the 2020 tax year from January 14, 2021, to April 14, 2021.
"This will provide additional relief for Oregon restaurants and bars experiencing economic hardship," Governor Brown's office said.