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Portland, OR Local Taxes & Fees: Business Tax Classification (2026)

Some Restrictions
Compiled from the official code textEditor Martyn O'NeillLast verified August 2026

Key Facts

Governing law
Business License Law, Ch. 7.02
Liable party
the entity, not individual owners
Administered by
City Revenue Division
Applies to
partnerships, LLCs, S corps, trusts, estates

Summary

Portland taxes partnerships, LLCs, S corps, and trusts at the entity level under the Business License Law, not the individual owners.

Partnerships, S corporations, limited liability companies, limited liability partnerships, family limited partnerships, estates, and trusts are liable for the business license tax and not the individual partners, shareholders, members, beneficiaries or owners. The income of these entities must include all incomes received by the entity...

Source: Portland City Code 5.73View official code

Full Breakdown

Under Portland City Code § 7.02.110, partnerships, S corporations, LLCs, LLPs, family limited partnerships, estates, and trusts are liable for the city's Business License Tax themselves, not their individual partners, shareholders, members, beneficiaries, or owners. A disregarded-entity LLC is taxed through whichever entity reports its income on a federal return. Consolidated, combined, or joint filers get a single license certificate covering the group's combined income. The Revenue Division, under Chapter 3.06, administers the tax and can examine a taxfiler's income under § 7.02.260 even if nothing was reported to the IRS or Oregon.

Violations & Fines

Misclassifying entity type or failing to register with the Revenue Division under Chapter 7.02 exposes the taxfiler to license non-compliance status, back taxes, and penalties assessed against the entity itself, not individual owners.

Frequently Asked Questions

Who pays Portland's business tax on an LLC: the LLC or the members?
The LLC itself is liable under § 7.02.110.A, not the individual members, unless it's a disregarded entity reporting through another taxpayer's federal return.
Can a group file one Portland business tax return?
Yes: if a group files a consolidated, combined, or joint Oregon return, the Division issues one license certificate covering the group's combined income.

Sources & Official References

Other rules in Portland

Parking Rules: Towing & Impound RightsSignificant RestrictionsParking Rules: Loading ZonesSome RestrictionsParking Rules: Preferential Parking DistrictsSome RestrictionsParking Rules: Curb Color RulesSome RestrictionsFence Regulations: Fence Permit RequirementsSome RestrictionsAnimal Ordinances: Veterinary Clinic ZoningSome Restrictions

All Portland rules

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