NAW Challenges Oregon Packaging Law, Seeks Court Injunction
Washington, D.C. (January 19, 2026) — The National Association of Wholesaler-Distributors (NAW) has filed a response opposing Oregon’s motion to dismiss its challenge to the state’s corporate activity tax (CAT). The NAW argues that Oregon’s CAT is unconstitutional under the Interstate Commerce Clause of the U.S. constitution.
The lawsuit, National Association of Wholesaler-Distributors v.State of Oregon, centers on the NAW’s claim that the CAT unfairly burdens interstate commerce. Oregon’s CAT is a tax on gross receipts from business activities in the state, and the NAW contends it’s applied in a discriminatory manner that disadvantages out-of-state wholesalers and distributors. The state argues the tax is a legitimate exercise of its taxing power.
“We believe Oregon’s corporate activity tax is flawed and places an undue burden on businesses engaged in interstate commerce,” said NAW President and CEO Dirk Van Dongen in a press release. “We are confident that the court will recognize the unconstitutionality of this tax.”
Oregon initially implemented the CAT in 2020,and it has been the subject of legal challenges since its inception. Several businesses have argued the tax is poorly defined and creates significant compliance challenges. The NAW joined the legal battle in 2023, asserting the tax specifically harms its members.
The motion to dismiss is a procedural attempt by Oregon to have the case thrown out before it reaches trial. The NAW’s response argues that the case presents valid legal questions that require judicial review. The court will now consider the arguments presented by both sides before deciding whether to dismiss the case or allow it to proceed.
The outcome of this case could have significant implications for businesses operating in oregon and perhaps influence similar tax structures in other states. A ruling against Oregon could force the state to revise its CAT or face substantial financial penalties. The case is currently pending in the U.S. District Court for the District of Oregon. Oregon Department of Administrative Services provides updates on the litigation.