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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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BTP: De Minimus Exemption Policy

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Business Tax Policy: De Minimus Exemption Policy

Individuals (including joint filers) with gross business income everywhere totaling less than $20,000 will have simplified filing and reporting requirements available to them. Under the simplified reporting requirements, individuals would be able to file a De Minimus Exemption Form (and include supporting tax pages for the last three most recently completed tax years) instead of filing the business registration form and continued filing of the Annual Exemption Request Form that is generally required by the Division each year. Individuals may file the De Minimus Exemption Form one time and have no other filing requirement until:

  1. the activity exceeds the de minimus exemption threshold of gross business income everywhere totaling less than $20,000; or
  2. verification of the exemption is specifically requested by the Division.

Please note:

If gross business income is $20,000 or more in a tax year, the de minimus exemption no longer applies for that tax year. An Annual Exemption Request Form will be required to be filed if gross business income is under $50,000 for that tax year. If gross business income is $50,000 or more, a Combined Tax Return will be required to be filed for that tax year.

Example 1:

Individual A is married and is a joint filer (Married Filing Jointly on their federal tax return). Individual A and their spouse each report business income on federal Schedule C. The total gross business income for both Schedule Cs is less than $20,000 in each of the last three tax years. A De Minimus Exemption form may be filed. This will create an account with the Division and annual filings will not be required unless requested by the Division. 

Example 2:

Individual B conducts business activity in Portland and Multnomah County. Individual B files one Schedule C with no other business income. For Year 1, Year 2 and Year 3, Individual B’s total gross business income was $19,000. Individual B filed a De Minimus Exemption form and did not have any filing requirements for Year 4, Year 5 or Year 6.

In Year 7, Individual B reported $45,000 in gross business income on their Schedule C. Individual B no longer qualifies for the de minimus exemption and must file an Annual Exemption request form because their total gross business income was still less than $50,000.

Example 3:

Assume the same facts as Example 2, except in Year 7, Individual B reported $60,000 in gross business income on their Schedule C. Individual B is required to file a Combined Tax Return and pay any tax due.


7-15-2019                                                 Thomas Lannom
________________________        __________________________________
Date                                                        Director, Revenue Division

Adopted 1-14-2013
Updated 2019