Administrative Rule Adopted by Revenue Division Pursuant to Rule-Making Authority
Example: XYZ Electric Utility, Inc. provides electricity to customers located inside and outside Portland city limits. XYZ also has business activity other than as an electric utility. XYZ must pay a business license tax for the other business activity it conducts. However, electric utility revenues subject to a franchise fee upon utility gross revenue received from utility customers (PCC 7.14) are exempt from the Business License Law. Apportionment is calculated as follows:
Total gross income (everywhere) $2,000,000
Utility revenue subject to PCC 7.14 $500,000
Other Portland gross income $100,000
Net Income $1,000,000
Apportionment ($100,000 / $2,000,000) = 5%
Apportioned Income ($1,000,000 x .05) = $50,000
License Tax ($50,000 x 2.2%) = $1,100
Amended by Director of Revenue Bureau August 10, 2009.
Amended by Director of Revenue Division October 1, 2015.