Business Tax Policy: Refunds
It is the policy of the Revenue Division (Division) to timely process all requested refunds of overpayment for the City of Portland Business License Tax and Multnomah County Business Income Tax. If the Division determines that a taxpayer is entitled to a refund and fails to approve the refund by the dates outlined in Portland City Code Chapter 7.02.720 and Multnomah County Code § 12.720, the taxfiler is entitled to simple interest on their refund as prescribed in the aforementioned codes.
In determining the timing for refund interest eligibility, the Division defines one month as equal to 30 calendar days. For determining the date of when the return is filed or the refund was otherwise requested, the taxfiler must provide all required supporting tax pages and requested documentation for the filing to be complete. A tax return or refund request will not be considered valid until the Division has received a complete tax return for the tax period for which a refund is being requested.
If the requested information has not been provided to support a refund claim, the four-month refund interest period does not begin until the information is received. If the taxfiler does not respond to any requests for information within the timeframe listed in the Division’s written correspondence or by the date agreed upon by the Division and the taxfiler, the Division will deny the refund and the taxfiler will need to resubmit their refund request for the tax period.
Example 1: A calendar-year taxfiler files their combined tax return, with all required supporting tax pages, requesting a refund on February 17. The Division issues the refund on August 1. The taxfiler is not entitled to any refund interest because the refund was issued within four months of the original due date of the return.
Example 2: A calendar-year taxfiler files their timely combined tax return requesting a refund but fails to include supporting tax pages with their return. Three months later, on July 10, the taxfiler submits the required supporting tax pages. The refund interest calculation window would not begin until July 10, when the taxfiler provided the required supporting tax pages.
Example 3: A partnership files a timely combined tax return, with no supporting tax pages, requesting a refund. The partnership does not respond to any requests for information to verify the refund claim. The Division denies their refund request. The partnership would need to resubmit a refund claim with the required information. Since the refund was originally denied, the refund interest window will restart with the newly filed refund claim.
9/29/2020 Thomas Lannom
Date Director, Revenue Division