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The City of Portland, Oregon

Office of Management & Finance

Revenue Division

Arts Tax: 503-865-4278

Business Taxes: 503-823-5157

111 SW Columbia St, Suite 600, Portland, OR 97201

More Contact Info

Taxpayer Impact Analysis to the Proposed Changes to the Business License Law

The Mayor’s fiscal year 2018-2019 Proposed Budget was released on April 30, 2018. It proposes to amend the Portland Business License Law (Portland City Code Chapter 7.02) by increasing the Owner’s Compensation Deduction to $125,000 per owner (from the current $103,500) and increasing the tax rate to 2.6% (from the current 2.2%). Review the Taxpayer Impact Analysis, and calculate how it may affect your business.

2018 Tax Calculator (Based on Proposed Changes)

The Mayor’s fiscal year 2018-2019 Proposed Budget was released on April 30, 2018. It proposes to amend the Portland Business License Law (Portland City Code Chapter 7.02) by increasing the Owner’s Compensation Deduction to $125,000 per owner (from the current $103,500) and increasing the tax rate to 2.6% (from the current 2.2%). Calculate how the proposed law changes would impact your City taxes.

Notice of Public Hearing

The City of Portland Revenue Division will hold a public hearing on administrative rules interpreting the Business License Law and Multnomah County Business Income Tax Law. The proposed administrative rule relates to the treatment of adjustments related to Internal Revenue Code Section 754 elections.

Date: Thursday, April 26, 2018
Time: 2:30 P.M. to 4:30 P.M.
Place: City of Portland Revenue Division, 111 SW Columbia Street. Suite. 600, Portland, Oregon 97201 (Rivers Conference Room).

Written testimony is encouraged and will be accepted at the hearing and at the Division through 5:00 P.M., Friday, April 27, 2018.
Copies of the proposed administrative rule may be obtained by contacting the Revenue Division, 111 SW Columbia Street, Suite 600, Portland, Oregon 97201; (503) 865-2470; www.portlandoregon.gov/revenue

Tax year 2016 (and future) extended due date discrepancy between Oregon and the City/County

Starting with the 2016 tax year, the extended due date of the Oregon Form 20 (Corporate Excise Tax Return) and Form 20-INC (Corporate Income Tax Return) is one month later than the extended due date of the Combined Tax Return. For calendar year 2016 taxpayers, the Oregon extended due date of November 15 is one month after the City/County (Combined Tax Return) October 15 extended due date. This is problematic as the City/County return is based on the figures reported on the Oregon return.

Typically, the Oregon return is finalized at the same time as the federal return (which is due one month earlier), so this discrepancy should not impact many taxpayers. If you are not able to finalize your Oregon return by the extended due date of the Combined Tax Return, you will be granted a grace period for penalty assessments as long as your Combined Tax Return is filed by the Oregon extended due date. If you are assessed a penalty under these circumstances, it will be waived upon request. However, there will be no waiver or reduction of interest due that results from the discrepancy.

6-year History of Owner's Compensation Deduction

Tax Year

Multnomah County*

City of Portland*

2017 $103,500 $103,500
2016 $101,500 $101,500
2015 $100,000 $100,000
2014 $92,000 $100,000
2013 $90,500 $90,500
2012 $88,500 $88,500

*per owner