For the purposes of this paragraph, the following definitions apply unless the context requires a different meaning.

1. A. Arts teachers mean certified arts teachers, or arts teachers on the Charter School Registry, who provide standards-based instruction in dance, music, theatre, or visual art.
2. B. Catchment means the geographical area from which an elementary school within a District draws its students.
3. C. Charter school means a school offering a comprehensive institutional program as defined under ORS Chapter 338. The charter school will be included in the school district if sponsored by the school district or the State Board of Education, provided that the school district is the fiscal agent for state school funds for the charter school and the charter school has both Portland catchment and Portland K-5 students.
4. D. Director means the Director of the Office of Arts & Culture, or authorized designee, except where context requires a different meaning.
5. E. Gross revenues means the total of all revenue received by the City from the Arts Education and Access Income Tax without regard to collection, administrative or other costs.
6. F. High-quality arts educationmeans a school-based arts program that has been determined by the Office of Arts & Cultureto have implemented significantly all of the indicators articulated and assessed by the Portland Arts Education Framework.
7. G. Net revenues means the revenue remaining after interest, collection, administrative and other costs and refunds are deducted from gross revenues.
8. H. Office of Arts & Culture means the City's office that works with City bureaus, Council offices, and other partners to support the City's vibrant arts and culture ecosystem.
9. I. Oregon taxable income means the taxable income of residents and part-year residents as reported or reportable to the State of Oregon for personal income tax purposes.
10. J. Portland K-5 students means students who reside within the geographical boundary of the City and who attend kindergarten through 5th grade in public schools tuition-free.
11. K.  Portland-based arts organizationmeans a non-profit arts organization with physical operations in the City of Portland and/or whose arts services are delivered primarily in Portland. The City Administrator may adopt administrative rules for determining the eligibility of an organization as a Portland-based arts organization.
12. L. Residentor resident of the City means:
    1. 1. An individual who is domiciled in this City unless the individual:
       1. a. Maintains no permanent place of abode in the City;
       2. b. Does maintain a permanent place of abode elsewhere; and
       3. c. Spends in the aggregate not more than 30 days in the taxable year in the City; or
    2. 2. An individual who is not domiciled in the City but maintains a permanent place of abode in the City and spends in the aggregate more than 200 days of the taxable year in the City unless the individual proves that the individual is in the City only for a temporary or transitory purpose. For purposes of this Subsection, a fraction of a calendar day will be counted as a whole day.
13. M. Resident or resident of the City does not include:
    1. 1. An individual who is a qualified individual under Section 911(d)(1) of the Internal Revenue Code for the tax year;
    2. 2. A spouse of a qualified individual under Section 911(d)(1) of the Internal Revenue Code, if the spouse has a principal place of abode for the tax year that is not located in the City; or
    3. 3. A resident alien under Section 7701(b) of the Internal Revenue Code who would be considered a qualified individual under Section 911(d)(1) of the Internal Revenue Code if the resident alien were a citizen of the United States.
14. N. Revenue and Financial Services Division, Revenue Division, or Division means, for the purposes of this Chapter, the revenue and financial services and programs of the City Administrator under Portland City Code Chapter 3.06.
15. O. Schoolsmeans those educational institutions defined as schools by the Oregon Department of Education, but do not include on-line schools.
16. P. School districts means the Portland Public, David Douglas, Centennial, Parkrose, Reynolds and Riverdale school districts.
17. Q. Tax year means the calendar year. 
18. R. Taxfiler means a resident of the City who is or could be subject to the Arts Education Tax or the taxfiler's authorized representative. 
19. S. Taxfiler's authorized representative means a person to whom the taxfiler has provided written authorization to conduct business with the Division on the taxfiler's behalf, as well as persons who are authorized by law to represent the taxfiler, such as a personal representative, guardian, or attorney.
20. T. Underserved communities means populations in Portland that encounter barriers in accessing arts and culture experiences, including but not limited to populations underserved because of economic constraints, geographic location, disability, language and literacy barriers, lack of access to culturally responsive and/or representative arts and culture experiences, lack of available arts infrastructure, and any other population determined to be underserved by the City Administrator.

1. Net revenues will be paid by the Revenue and Financial Services Division to the Arts Education and Access Fund for distribution by the City as follows:
2. A. First, funds will be distributed to the school districts for the purpose of hiring certified arts teachers for elementary school students for kindergarten through 5th grade (K-5). Distribution will be based on a ratio of one teacher for every 500 K-5 students at schools that serve Portland K-5 students, except that charter schools will be funded based on a ratio of one teacher for every 500 Portland K-5 students served by the charter school. Students attending schools that receive no distribution of funds will not be counted. In the event that a school has less than 500 K-5 students, or in the case of charter schools, less than 500 Portland K-5 students, funds will be distributed on a pro rata basis based on the number of students attending that school. Funds will not be distributed to:
   1. 1. Elementary schools within the school districts that have no Portland K-5 students; and
   2. 2. Elementary schools within the school districts that have Portland K-5 students enrolled, but whose catchment does not overlap with the City's geographical boundaries.
3. B. Next, funds will be distributed to the Office of Arts & Culture for the purpose of coordinating, supporting, and reporting on arts education services within school districts. Funding may be used for but is not limited to:
   1. 1. Employ highly qualified person(s) to work with the school districts in the provision of high-quality arts education;
   2. 2. Provide professional development opportunities for certified arts teachers in the school districts;
   3. 3. Collect quantitative and qualitative data from school districts as requested by the City Administrator and/or oversight committee;
   4. 4. Monitor school district performance and report any IGA compliance concerns to the City Administrator, City Council, and oversight committee;
   5. 5. Convene superintendents, curriculum directors, arts teachers, and other school district personnel as needed to coordinate and evaluate high quality arts education in the school districts.
   6. 6. Develop and adopt administrative rules to establish a Portland Arts Education Framework, which will define and provide a means to assess the conditions and structures determined by the City to be necessary for effective arts education at the K-5 level. The rules may not articulate or assess instructional practices, provide methods to evaluate individual teachers, or require or prohibit particular content within a complete curriculum.
4. C. Any funds remaining after distribution to the school districts and the City per Subsections 6.10.030 A. and B. will be distributed to the Office of Arts & Culture or its designee. The funds will be spent as follows:
   1. 1. Up to 95 percent of the remaining funds will be distributed as grants to support non-profit Portland-based arts organizations that demonstrate artistic excellence, provide service to Portland K-12 students and/or underserved communities, show administrative and fiscal competence and provide a wide range of high-quality arts programs to the public. The Office of Arts & Culture or its designee will determine which arts organizations will be supported. 
   2. 2. A minimum of five percent of the remaining funds will be distributed as grants and sponsorships to non-profit organizations and schools to provide arts programs and experiences specifically directed to Portland K-12 students and/or underserved communities.
   3. 3. These funds are in addition to existing and ongoing financial support for the Office of Arts & Culture.

The City will execute Intergovernmental Agreements (IGAs) with the school districts and any other contracted partners and require them to provide independently audited financial statements each year that show how the funds received pursuant to this program are spent and documentation accounting for any year-over-year fund balances, the cause of underspending, and plans for disposition of ending fund balances.

1. A. The Mayor will appoint an oversight committee, subject to Council confirmation, to ensure the Arts Education and Access Fund is being implemented as required, to review expenditures made and to report their findings to the City Council on an annual basis. 
2. B. The committee will be representative of the City's diverse communities and comprised of  9 members, including two members representing parents or guardians of Portland K-12 students not enrolled in the same school district, one member representing arts organizations with annual budgets under $1,000,000, one member representing arts organizations with annual budgets over $1,000,000, at least one at-large member, and, if possible, a member of the Tax Supervising and Conservation Commission. In selecting committee members, the Mayor and Council will take particular care to prioritize geographic diversity and representation of underserved communities as defined in this Chapter.
3. C. The Office of Arts & Culture will provide adequate administrative support to the Oversight Committee, including but not limited to board training, ongoing staff support, and timely access to information relevant to the Committee's work.

The City will receive copies of annual independent audits or other documentation regarding expenditures by the school districts each year. The Arts Education and Access Fund also will be part of the City’s independent annual audit report, the results of which will be made available to the public.

The Revenue and Financial Services Division will:

1. A. Receive the gross revenues derived from the Arts Education and Access Income Tax and distribute the net revenues in accordance with the IGAs and this Chapter.
2. B. Keep accurate records of the funds;
3. C. Report to the Council on all funds received and disbursed to the school districts and the Office of Arts & Culture, and on ending fund balances;
4. D. Adopt administrative rules necessary to implement tax collection and administration.
5. E. If necessary, contract with public or private agencies to fulfill any of its duties in regard to this Arts Education and Access Income Tax and the Arts Education and Access Fund;
6. F. Accept any and all gifts and donations to the Arts Education and Access Fund;
7. G. In all public communications, mailings, and tax documents, identify the Arts Education and Access Income Tax either by its full name or by the shortened name "Arts Education Tax." The Arts Education and Access Fund may be referred to either by its full name or by the shortened name "Arts Access Fund"; and
8. H. In consultation with the Office of Arts & Culture, adopt administrative rules to establish a reserve requirement policy for the Arts Education and Access Fund.

1. A. The administrative budget will be subject to annual Council approval.
2. B. The Office of Arts & Culture’s costs for coordinating, supporting, and reporting on arts education activities in the school districts are capped at 3 percent of net revenues.

1. A. The Division will construe the Arts Education and Access Income Tax Law, when applicable, in conformity with the laws and regulations of the State of Oregon imposing taxes on or measured by net income as those laws existed for that tax year.
2. B. Any interpretation under Subsection A. may not conflict with any provision of this Chapter.
3. C. The Division has the authority by written policy to connect to or disconnect from any legislative enactment regarding income or excise taxation or the definition of income.

1. A. For tax years 2012 through 2025, a tax of $35 is imposed on the income of each income-earning resident of the City who is at least 18 years old. No tax will be imposed on filer(s) within any household that is at or below the federal poverty guidelines established by the federal Department of Health and Human Services for that tax year.
2. B. For tax years 2026 and thereafter, a tax of $50 is imposed upon each resident of the City subject to tax under ORS Chapter 316 and who is at least 18 years old. No tax is imposed if the Oregon Taxable Income, after allowable deductions, does not exceed $40,000 if filing jointly and $20,000 if filing single.
3. C. The tax and exemption amounts described in Subsection B. will be indexed for inflation based on the indexing factor as determined in Section 6.10.120.
4. D. Taxfiler filing status must follow the filing status of the taxfiler's Oregon personal income tax return.
   1. 1. Taxfilers filing an Oregon personal income tax return as married filing jointly must file a joint Arts Tax return and pay the tax of $100.
   2. 2. Taxfilers filing an Oregon personal income tax return as head of household or qualifying surviving spouse must file a joint Arts Tax return and pay the tax of $50.
   3. 3. Taxfilers filing an Oregon personal income tax return as single or married filing separately must file a single Arts Tax return and pay the tax of $50.

Beginning with tax year 2027, and each year thereafter, the tax and exemption amounts in Subsection 6.10.110 B. will be adjusted for inflation using:

1. A. The Consumer Price Index for All Urban Consumers (CPI-U) as published by the U.S. Department of Labor, Bureau of Labor Statistics, using the September to September index; or
2. B. The most nearly equivalent index as determined by the Revenue Division if the index described in Subsection A. is discontinued.

1. A. If the result obtained after indexing the tax for inflation is not a multiple of one dollar, the Division will round the increase to the next lower multiple of one dollar. If the result obtained after indexing is a decrease, the tax rate will remain at the prior tax year's level. The base amount for indexing is the indexed amount from the prior year before rounding.
2. B. If the result obtained after indexing the exemption amounts for inflation is not a multiple of $500, the Division will round the increase to the next lower multiple of $500. If the result obtained after indexing is a decrease, the exemption amounts will remain at the prior tax year's level. The base amount for indexing is the indexed amount from the prior year before rounding.
3. C. The Division will publish the adjustment amounts by November 15 prior to the start of the adjustment year. The Division will post the adjusted amounts on its website and in any other manner the Division deems reasonably calculated to inform the public of the adjusted amounts.

A taxfiler is allowed a deduction for the number of dependents claimed on the Oregon personal income tax return. The deduction amount allowed is based on the poverty guideline's income steps published by the U.S. Department of Health and Human Services for the same calendar year as the tax year. Joint filers may claim a half step deduction per dependent; single taxfilers may claim a full step deduction per dependent.

1. A. A person the City is prohibited from taxing under the Constitution or laws of the United States, the Constitution or laws of the State of Oregon, or the City's charter is exempt from payment of the tax set forth in this Chapter.
2. B. Income the City is prohibited from taxing under the Constitution or laws of the United States, the Constitution or laws of the State of Oregon, or the City's Charter is exempt from the tax set forth in this Chapter.

1. A. For tax years 2012 through 2025, every resident subject to the tax imposed by Subsection 6.10.110 A..
2. B. For tax years 2026 and later, every resident subject to the tax imposed by Subsection 6.10.110 B., who is required to file an Oregon income tax return for the taxable year and who reports Oregon Taxable Income that exceeds the thresholds that apply to the Arts Tax return for the tax year that must be filed.
3. C. Nothing in this section precludes the Division from requiring any individual to file a return when, in the judgement of the Division, the individual should file a return.

1. A. Tax returns must be filed on forms provided, or approved, by the Division. All tax returns must be filed together with payment of the specified tax by the fifteenth day of the fourth month following the end of the tax year. If the due date falls on a weekend or federal or state holiday, the due date is the first business day following the weekend or holiday.
2. B. The Division may, for good cause, grant extensions for filing returns. An extension granted by the state for filing the state return automatically extends the time to file the return, required by Section 6.10.160, matching the state extension. The extension to file does not extend the time to pay the tax. Payments made after the due date may be subject to penalties as provided in this Chapter or by administrative rule.
3. C. The tax return must contain a written declaration, verified by the taxfiler, to the effect that the statements and information therein are true.
4. D. Authority to require filing of returns by electronic means.
   1. 1. As used in this subsection:
      1. a. Electronic means includes computer-generated electronic or magnetic media, internet-based applications or similar computer-based methods or applications.
      2. b. Paid tax preparer means a person who prepares a tax return for another or advises or assists in the preparation of a tax return for another, or who employs or authorizes another to do the same, for valuable consideration.
   2. 2.The Division may by rule require a paid tax preparer to file tax returns by electronic means if the paid tax preparer is required to file federal tax returns by electronic means.
   3. 3.The Division may by rule establish exceptions to the electronic filing requirements of this subsection.

1. A. The Division may assess deficiencies and grant refunds any time within the periods set forth for deficiencies or refunds under ORS Chapter 314. The Division may by agreement with the taxfiler extend the time periods to the same extent as provided by statute.
2. B. When no tax return has been filed, there is no time limit for a notice of deficiency or the assessment of taxes and penalties due. Making a payment by the due date of the return will be treated as filing of the return.

1. A. In accordance with ORS 314.835, except as otherwise specifically by provided by Oregon law or this Section and related rules or written policies, it is unlawful for the Revenue and Financial Services Division or any officer or employee of the division to divulge or make known in any manner the amount of income, expense, deduction, exclusion or credit or any particulars set forth or disclosed in any report or return required in the administration of this chapter.
2. B. It is unlawful for any City employee, agent or elected official, or for any person who has acquired information pursuant to this Section to divulge, release or make known in any manner any information submitted or disclosed to the City under the terms of Chapter 6.10 for any purpose other than that specified in the provisions of law authorizing the use or disclosure.
3. C. No subpoena or judicial order may be issued compelling the Division or any of its officers or employees, or any person who has acquired information pursuant to this Section or any other provision of state or City law, to divulge or make known the amount of income, expense, deduction, exclusion or credit or any particulars set forth or disclosed in any report or return except where the taxfiler's liability for any tax imposed under this chapter is to be adjudicated by the court from which the process issues.
4. D. As used in this Section:
   1. 1. "Officer," "employee" or "person" includes an authorized representative of the officer, employee or person, or any former officer, employee or person, or an authorized representative of the former officer, employee or person.
   2. 2. "Particulars" includes, but is not limited to, a taxpayer's name, address, telephone number, Social Security number, employer identification number or other taxpayer identification number, the amount of refund claimed by or granted to a taxpayer, and whether a report or return has been filed.
5. E. The Revenue and Financial Services Division may:
   1. 1. Furnish any taxfiler, representative authorized to represent the taxfiler or person designated by the taxfiler, upon request of the taxfiler, representative or designee, with a copy of the taxfiler's tax return filed with the Division for any year, or with a copy of any report filed by the taxfiler in connection with the return, or with any other information the Division considers necessary.
   2. 2. Publish statistics so classified as to prevent the identification of income or any particulars contained in any report or return.
   3. 3. Disclose a taxfiler's name, address, telephone number, refund amount, amount due, Social Security number, employer identification number or other taxfiler identification number to the extent necessary in connection with collection activities or the processing and mailing of correspondence or of forms for any report or return required in the administration of the tax imposed under Chapter 6.10.
6. F. Only to the extent necessary to meet the business purpose of the disclosure, the Division also may disclose and give access to information described in Subsection 6.10.100 A. to:
   1. 1. The City Attorney, their deputies and subordinate employees, or other legal representatives of the City, to the extent the Division deems disclosure or access necessary for the performance of the duties of advising or representing the Division, including but not limited to instituting legal actions on unpaid accounts.
   2. 2. The Bureau of Technology Services (BTS) or its authorized representative, for the purpose of managing access, security and communications.
   3. 3. BTS's printing and distribution employees and agents, for the purpose of printing and mailing notices that may contain confidential information.
   4. 4. City Administrator's treasury and accounting employees and agents, for the purpose of performing functions related to the issuance of refunds.
   5. 5. The Auditor or their authorized representative, to the extent pursuant to City Charter, Chapter 2, Article 5.
   6. 6. Other persons, partnerships, corporations and other legal entities, and their employees, to the extent the Division deems disclosure or access necessary for the performance of the others' duties under contracts or agreements between the Division and the legal entities, in the Division's administration of the tax laws.
7. G. Each officer or employee of the Division and each person described or referred to in Subsection F. of this Section to whom disclosure or access to the tax information is given under Subsection B. of this Section or any other provision of law, prior to beginning employment or the performance of duties involving the disclosure or access, will be advised in writing of the provisions of Section 6.10.210, relating to penalties for the violation of Section 6.10.190, and must as a condition of employment or performance of duties execute a certificate for the Division, in a form prescribed by the Division, stating in substance that the person has read these provisions of law, that the person has had them explained and that the person is aware of the penalties for the violation of Section 6.10.190.

1. A. A $250 penalty will be assessed if a taxfiler takes a "frivolous position" in respect to preparing the taxfiler's tax return. A tax return is considered frivolous if a taxfiler does not provide information on which the substantial correctness of the self-assessment may be judged or if the tax return contains information that on its face indicates that the self-assessment is substantially incorrect. Examples of "frivolous positions" as provided in Oregon Administrative Rule 150-316.0652 are hereby adopted by direct reference.
2. B. A $250 penalty will be assessed if a taxfiler willfully makes or provides false statements related to their tax return filing.
3. C. The provisions of Portland City Code Section 7.02.840 regarding hacking apply.

Anyone knowingly violating Section 6.10.190 may be punished, upon conviction thereof, by a fine not exceeding $500 or by imprisonment for a period not exceeding six months, or by both fine and imprisonment. Any City employee that is convicted will be dismissed from employment and is ineligible for holding any position of employment or office in the City for a period of five years thereafter. Any agent of the City that is convicted is ineligible for participation in any City contract for a period of five years thereafter.