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Local Taxes & Fees

Portland's Local Taxes & Fees: The Rules That Matter

By CityRuleLookup Editorial Team

Every city handles local taxes & fees a little differently. In Portland, Oregon, there are 2 distinct rules that residents and property owners should be aware of. Some are stricter than what neighboring cities enforce, and others are more relaxed. Here is what you need to know.

Business Tax Classification

Portland residents over 18 with income above the federal poverty line owe a flat $35 Arts Tax annually under PCC 5.73, while businesses owe Portland Business License Tax and Multnomah County Business Income Tax.

Key details: Arts Tax amount: $35 per year. Arts Tax code: PCC 5.73. Business license rate: 2.6 percent. County BIT rate: 2 percent.

Failing to pay the Arts Tax triggers collection notices, civil judgments, and credit-bureau reporting. Unpaid business taxes can result in liens, license suspension, and interest plus penalties up to 25 percent.

This is not one of those rules that cities tend to ignore. Portland actively enforces its business tax classification requirements.

Parking Tax

Portland imposes parking-related taxes including a downtown parking tax under PCC 6.06 and the voter-approved Clean Energy Surcharge (Measure 26-201) on large-retailer parking-equipped operations.

Key details: Parking tax code: PCC 6.06. PCEF measure: 26-201 (2018). PCEF rate: 1 percent. Filing cycle: Monthly.

Failing to register a parking facility, underreporting receipts, or refusing PCEF remittance can result in back taxes, interest, civil penalties up to 25 percent, and revocation of the city business license.

The Bottom Line

Portland's local taxes & fees rules are a mixed bag. Some areas are strict, others are relaxed, and the details matter. The best approach is to check the specific rule that applies to your situation rather than assuming Portland is broadly strict or permissive.

All of the above reflects Portland's municipal code as of our last review. If you need specifics on fines, exemptions, or filing requirements, the detailed ordinance pages linked above have the full breakdown.