Detailed Oregon Development
In May 2020, voters in the Portland, Oregon metro area (Washington, Clackamas, and Multnomah counties) approved a ballot measure imposing a new one percent business profits tax on businesses with gross receipts over $5 million. A new one percent tax is also imposed on married individuals with income over $200,000 (over $125,000 for single filers). The income tax applies to Metro residents and to non-resident income earned from sources within the Metro area. Both taxes are effective January 1, 2021, and the revenues will provide funding for housing assistance and wraparound services. Very few details on the taxes were included in the ballot measure, and Metro recently issued a FAQs document that provides some additional guidance, mostly applicable to employers that are required to withhold on employees. Starting in April 2021, taxpayers and employers will be able to register, remit payroll withholding and/or pay quarterly estimated taxes to the City of Portland Revenue Division, which is the entity administering the tax on behalf of Metro. Metro will not assess penalties if estimated tax payments and withholdings are not made in 2021. The first annual tax returns are due April 15, 2022. The FAQs confirm that the Metro filings will be separate from the Multnomah County Business Income Tax and the county’s new “Preschool for All” personal income tax on high wage earners effective January 1, 2021. Please contact Vinh Tran at 503-820-6803 with questions on the measure.
This Week's Developments