Setting the Gold Standard in Landscaping

About the Oregon Corporate Activity Tax (CAT)

In 2019 the Oregon State Legislature passed a new tax called the Corporate Activity Tax. This new tax went into effect in 2020. It taxes corporations on their sales at a rate set by the state. That rate is currently at .57%, but the legislature can (and probably will) increase that, over time, now that they have it in place. This affects all consumers in Oregon, because it increases the cost of doing business for companies. For instance, our company paid over $28,000 in 2020, because of this new tax. Most companies can’t just 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. So in order to be able to afford to pay this new tax, most companies raise rates, accordingly. Most companies have already done this, and it’s worked into pricing for all sorts of products and services you buy every day.

A lot of our suppliers and service providers have started listing this on their quotes, invoices, etc. to us. So this year we were faced with a decision to make. We could either just raise our rates and hide the cost of this tax within our current pricing, or we could list this item separately. We decided to make this item a separate line-item on our quotes for the same reason many of our suppliers are now listing this – because it brings public awareness to an issue many didn’t know about. We wanted our customers to see how legislation like this affects 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. But maybe if more people are aware, we can all have an impact on future decisions our legislature makes such as this.

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.

 

– Jim Lewis, President

For All Your Landscaping Needs

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