Administrative Rule Adopted by Revenue Division Pursuant to Rule-Making Authority
A. See PCC 5.73.010 for the definition of “resident” or “resident of the City.” Generally, the definition of resident will follow the definition used by the State of Oregon for individual income tax purposes (but applying the definition to the City of Portland instead of the State of Oregon). You are generally considered a Portland resident (even if you live outside Portland) if you are “domiciled” in Portland. If you think of Portland as your permanent home, the center of your financial, social and family life, and Portland is the place you intend to come back to when you are away, you are considered to be domiciled in Portland. Regardless of where you are domiciled, you are considered a resident of Portland if you spend more than 200 days of the year in Portland unless you can prove that you were in Portland for temporary or transitory purposes. You are a Portland resident if you temporarily moved out of Portland.
B. Examples of Residency:
1. Jen, a resident of California, takes a vacation to Portland for an entire month during 2012. She also has a temporary work assignment in Portland during 2012 that lasts two months. Jen is able to provide her full-year resident California income tax return and Oregon non-resident tax return as proof that she is a California resident. Since Jen is not a resident of Portland, no tax is due.
2. Esteban maintains a home in Portland and works in Portland. He purchased a summer home in Palm Springs, California and each year thereafter spent about three or four months in that state. He continued to spend six or seven months of each year in Portland. He continued to maintain his home and his social and business connections in Portland and files a full-year Oregon income tax return. Esteban is domiciled in Portland and is taxed as a resident of Portland because he has not demonstrated intent to abandon his Portland domicile nor has he shown intent to make California his permanent home. Esteban is a resident of Portland so he would be subject to the tax.
3. Kahri changed her permanent residence to a location outside of Portland on September 1, 2012. She had no intention of moving back to Portland. She would be subject to the tax in 2012 as she was a resident for a portion of that year, but she would not be subject to the tax in subsequent years that she is not a Portland resident.
4. Barbra is a full-time student attending college in California. She pays out-of-state tuition and returns to her parents’ home in Portland every summer where she works a summer job. She also works a part-time job in California. Barbra’s stay in California is for a temporary or transitory purpose; therefore, she is a resident of Portland and is subject to the tax.
5. Kita is a full-time student attending Portland State University in Portland on a F1 visa. Her parents live in Stockholm, Sweden where Kita graduated from high school. Kita stays in Portland throughout the year, attending summer classes and working at a part-time job in Portland. Kita returns home to Stockholm at least once a year to visit and stays with her parents and intends to return to Sweden upon graduation. She pays non-resident tuition to PSU and files an Oregon Form 40N Non-resident income tax return. By providing copies of her F1 (student) visa, her tuition billing statement and her non-resident tax return, Kita has proven that she is in Portland for a temporary or transitory purpose. Kita is not a resident of Portland therefore would not be subject to the tax.
6. Allen and Vicki are married filing a joint Oregon return. They have a residence in BentonCounty. On July 2, 2012 Allen moved to Portland because of a permanent job offer. Both spouses visit each other on weekends but each spouse considers their separate residence to be their permanent residence. Allen votes in Portland and his car is registered to his Portland address. Allen would be subject to the tax as a resident of Portland, but Vicki would not be considered a resident of Portland and therefore would not be subject to the tax.
C. If an individual establishes residency by moving into Portland at any time during the tax year, the individual is liable for payment of the full tax (regardless of the number of days they are a resident of Portland).
D. If an individual established residency outside Portland by moving at any time during the tax year, the individual is liable for payment of the full tax. In other words, the tax may not be prorated for partial year residency.
Amended by Director of Revenue Bureau May 2, 2013.
Adopted by Director of Revenue Bureau February 20, 2013.
Filed for inclusion in PPD March 4, 2013.