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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

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BTAR 610.93-5A Apportionment for Banking Income

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Business Tax Administrative Rule 610.93-5A

Apportionment for Banking Income

If income from banking activities (defined as the receiving or accepting of money or its equivalent on deposit as a regular business activity – including such activities engaged in by Banking Organizations and by Savings and Loan Organizations) is derived from business activity both within and without the City of Portland and/or Multnomah County, the determination of City or County gross income is arrived at by a formula comparing deposits in the City or County to deposits everywhere. Deposits are defined as average daily deposits--net of all public funds, all treasury tax and loan deposits, all correspondent bank deposits, and money orders or official checks. Upon determining deposits locally and everywhere, the following formula is used:

Gross income everywhere is the denominator of the apportionment fraction. The numerator of the apportionment fraction is determined by adding City/County gross banking income and City or County gross income from other non-banking business income.

The formula to determine local (within Portland or Multnomah County) banking gross income is:

Formula Image: Local Deposits/Deposits Everywhere X Total Banking Receipts = Local Banking Gross Income

Gross income earned in Portland or Multnomah County from income producing activity other than banking income is added to the City or County gross income derived from banking activity.

Example: XYZ BANK, INC. (consolidated with ZZZ Corporation).

  1. Total Consolidated Gross Income  =  $50,000,000
  2. Total Banking Gross Income           =   $35,000,000
  3. Total Deposits                                  =   $500,000,000
  4. County Deposits                                 =   $25,000,000
  5. County Gross Income of ZZZ Corp =  $100,000 (non–banking gross)
  6. County Banking Gross Income
    25,000,000(#4)/500,000,000(#3) X 35,000,000(#2) =  $1,750,000
  7. TOTAL COUNTY GROSS INCOME (#5 + #6)                  =  $1,850,000
  8. COUNTY APPORTIONMENT FACTOR (#7/#1)                =  3.7%

Adopted: 11/23/93

Amended: 12/26/00 (housekeeping changes), 8/10/09 (housekeeping changes)

(PCC 7.02.610 C; MCC 12.610 C)


1Total Banking Receipts as included in Oregon Form 20, Schedule C-1.