Title 6 Special Taxes

Chapter 6.04 Transient Lodgings Tax

(Chapter replaced by Ordinance 161506, effective January 1, 1989.)

6.04.010 Definitions.

(Amended by Ordinances 162647, 186985, 187339, 188170, 189557, and 191957, effective January 1, 2025.)

Except where the context otherwise requires, the definitions given in this Section govern the construction of this Chapter.
A. Accrual accounting means the operator enters the rent due from a transient on their records when the rent is earned, whether or not it is paid.
B. Booking agent means any person that provides a means through which a host may offer a short-term rental for transient lodging occupancy. This service is usually, though not necessarily, provided through an online platform and generally allows a host to advertise the short-term rental through a website provided by the booking agent’s hosting platform and provides a means for potential users to arrange transient lodging occupancy and payment, whether the transient pays rent directly to the host or to the booking agent. Booking agents include, but are not limited to:
1. 1. Online travel booking sites which are involved in the process of listing and booking short-term rental transient lodging occupancies and handle any aspect of the resulting financial transaction; or
2. 2. Online travel booking sites for short-term rental transient lodging occupancy where advertisements of short-term rental transient lodging occupancy rentals are displayed; or
3. 3. A hosting or other online site that provides a means through which an operator, host or agent may offer a short-term rental unit for transient lodging occupancy; or
4. 4. Any person who lists commercial hotel rooms or long-term rentals for transient lodging occupancy; or
5. 5. Any person who directly or indirectly accepts, receives or facilitates payment, whether or not they are the ultimate recipient of the payment, including through Application Programming Interfaces (APIs) or other computerized devices where third-party providers receive information about a transaction and collect funds for the transient lodging occupancy from a transient.
C. Division means, for the purposes of this Chapter, the revenue service and program of the City Administrator under Chapter 3.06 of this Code and may also be referenced as “Revenue Division.”
D. Director means the City Administrator or their designee who carries out the work of the Division.
E. Cash accounting means the operator does not enter the rent due from a transient on their records until rent is paid.
F. Host means the owner or person who resides at a short-term rental or has been designated by the owner or resident of the short-term rental and who rents out the short-term rental for transient lodging occupancy either directly or through the use of a booking agent.
G. Hotel means any structure, or any portion of any structure which is used, occupied, intended or designed for transient occupancy for 30 days or less for dwelling, lodging, or sleeping purposes, and includes, but is not limited to, any hotel, inn, tourist home or house, motel, studio hotel, boutique hotel, lodging house, rooming house, apartment house, single family house or any portion of such house, duplex, condominium, bed and breakfast facility, vacation home, multi-dwelling structure, accessory dwelling unit, trailer home, houseboat, public or private dormitory, hostel, fraternity, sorority, public or private club, corporate housing or executive housing space or facility, and also means space in a mobile home or trailer park or portion thereof so occupied, provided such occupancy is for less than a 31 day period. All hotels must comply with all local codes applicable to their location and use, including but not limited to zoning and building codes.
H. Occupancy means the use or possession, or the right to the use or possession for lodging or sleeping purposes of any room, rooms or portion thereof in a hotel as defined above.
I. Operator means:
1. 1. Any person who provides one or more rooms for occupancy for periods of 30 days or less to the general public for compensation. Furnishing accommodations can be done via employees, contractors, agents or any other person the hotel consents to allow to process reservations and accept payments from the transient on behalf of the hotel; or
2. 2. Any person that facilitates the reservation of an accommodation and collects the payment for the room reservation from the transient; or
3. 3. Any transient lodging provider, transient lodging intermediary or transient lodging tax collector as defined in ORS 320.300; or
4. 4. A booking agent as defined in this Chapter.
5. There may be more than one operator for a hotel and each operator is independently responsible for compliance with this Chapter though the tax will only be collected once. Operators include, but are not limited to, the hotel owner and/or management, online travel companies, booking agents or other online travel facilitators, travel agents or companies, contracted management companies or any other person that secures the right to occupy a room on behalf of the transient and receives payment from the transient for that right whether or not the operator is the ultimate recipient of the payment.
J. Person means any individual, firm, partnership, joint venture, limited liability company, corporation, limited liability partnership, association, host, social club, fraternal organization, fraternity, sorority, public or private dormitory, joint stock company, estate, trust, business trust, receiver, trustee, syndicate, or any other group or combination acting as a unit.
K. Rent means the full consideration charged to the transient for the right to occupy a room in a hotel, valued in money, goods, gift cards, labor, credits, property or other consideration of value without any deduction. Rent is considered to be the total amount represented to the transient by an operator as the consideration charged for the occupancy including any accommodation fees, commissions or similar amounts paid to or withheld by a person that facilitates the reservation of a room.
L. Rent package plan means the consideration charged for both food and rent where a single rate is made for the total of both. The amount applicable to rent for determination of transient room tax under this Chapter is considered the same charge made for rent of the identical room when it is not a part of a package plan.
M. Revenue Division Appeals Board means the Board composed of five representatives appointed in the manner set forth in Section 7.02.295 of this Code.
N. Room means each portion of a hotel that may be rented or is intended to be rented to a separate transient lodger or lodging party, other than rooms containing no sleeping accommodations and intended to be used for purposes other than sleeping and living accommodations, such as meetings, recreation, education, business or other purposes. In rooms with multiple beds where each bed may be rented or is intended to be rented to a separate transient lodger, such as bunk or dormitory style rooms, each bed is counted as a room.
O. Short-term rental means a house, duplex, multi-plex, apartment, condominium, houseboat, trailer or other residential dwelling where a person rents guest bedrooms for transient lodging occupancy. Generally, a short-term rental is zoned residential or has a building occupancy that only allows for residential use.
P. Short-term rental registry means short-term rentals that have valid, current Type A or Type B Accessory Short-Term Rental permits as required by Chapter 33.207 in this Code and that are recorded in the City’s Portland Maps or successor database platform publicly available on the City’s website. A copy of the registry will be made available to any person upon request.
Q. Tax means either the tax payable by the transient or the aggregate amount of taxes due from an operator during the period for which the operator is required to report their collections.
R. Transient means any individual who exercises occupancy or is entitled to occupancy in a hotel for a period of 30 consecutive calendar days or less, counting portions of calendar days as full days. The day a transient checks out of the hotel is not included in determining the 30-day period if the transient is not charged rent for that day by the operator. Any such individual so occupying space in a hotel is deemed to be a transient until the period of 30 days has expired unless there is an agreement in writing between the operator and the occupant providing for a longer period of occupancy, and the tenancy actually extends more than 30 consecutive days.

6.04.020 Tax Imposed.

(Amended by Ordinances 188170 and 191957, effective January 1, 2025.)

For the privilege of occupancy in any hotel, each transient must pay a tax in the amount of six percent of the rent charged by the operator. The tax constitutes a debt owed by the transient to the City, which is extinguished only by payment by the operator to the City. The transient must pay the tax to the operator of the hotel at the time the rent is paid. The operator must enter the tax on their records when rent is collected if the operator keeps their records on the cash accounting basis and when earned if the operator keeps their records on the accrual accounting basis. If rent is paid in installments, a proportionate share of the tax must be paid by the transient to the operator with each installment. In all cases, the rent paid or charged for occupancy may exclude the sale of any goods, services and commodities, other than charges associated with furnishing rooms, including but not limited to cleaning fees, nonrefundable deposits, reservation or service fees.

6.04.025 Administrative Authority.

(Added by Ordinances 188170 and 191957, effective January 1, 2025.)

A. The City Administrator administers this Chapter. Nothing in this Chapter precludes the disposition of a controversy by stipulation or agreed settlement, through correspondence or a conference with the City Administrator.
B. The City Administrator may implement procedures, forms and written policies for administering the provisions of this Chapter.
C. The City Administrator, as authorized by Charter, may adopt rules relating to matters within the scope of this Chapter or to obtain compliance with this Chapter.

6.04.030 Collection of Tax by Operator.

(Amended by Ordinances 187339, 188170, and 191957, effective January 1, 2025.)

A. Operators must collect a tax from the transient. The tax collected or accrued by the operator constitutes a debt owing by the operator to the City.
B. In cases of deferred payment of rent, the payment of tax to the operator may be deferred until the rent is paid, and the operator will not be liable for the tax until credits are paid or deferred payments is made. Adjustments may be made for uncollectible rent where appropriate.

6.04.040 Booking Agent and Operator Duties.

(Amended by Ordinances 186985, 187339, 188170, 188501, 189557, and 191957, effective January 1, 2025.)

A. Operators must collect the tax imposed by this chapter at the same time as the rent is collected from every transient. The amount of tax must be separately stated upon the operator’s records, and any receipt rendered by the operator. If a single amount is stated on the operator’s records or receipts without a breakout between rent and tax, the division will deem the entire amount is rent and tax will be calculated on the total amount. No imputation of tax is permitted. No operator may advertise that the tax or any part of the tax will be assumed or absorbed by the operator, or that it will not be added to the rent, or that, when added, any part will be refunded, except in the manner provided by this Chapter.
B. Upon request of the Division for any regulatory or tax administration purpose or upon issuance of a subpoena in accordance with this Chapter, Operators must provide all physical addresses of transient lodging occupancy locations within Portland city limits and the related contact information, including the name and mailing address of the general manager, agent, owner, host or other responsible person for the location. Any location and related contact information provided under this Subsection is considered confidential and is not subject to public disclosure due to personal privacy concerns.
C. Booking agents or operators may not complete any booking transaction or collect rent for any short-term rental unless it is listed in the City’s short-term rental registry at the time the booking agent or operator receives a fee or rent for the booking transaction. An exception to this requirement is if the booking agent or operator has entered into a pass-through registration data-sharing agreement in a form acceptable to and approved by the Revenue Division Director.
D. Booking agents or operators may not collect or receive a fee or any portion of rent, directly or indirectly through a person, agent or intermediary, for facilitating or providing services ancillary to a vacation rental, or short-term rental that is not in the short-term rental registry, including, but not limited to, insurance, concierge services, catering, restaurant bookings, tours, guide services, entertainment, cleaning, property management, or maintenance of the residential property or unit. An exception to this requirement is if the booking agent or operator has entered into a pass-through registration data-sharing agreement in a form acceptable to and approved by the Revenue Division Director.

6.04.050 Exemptions.

(Amended by Ordinances 162647, 188170, and 191957, effective January 1, 2025.)

No tax imposed under this Chapter will be imposed upon:
A. Any occupant for more than 30 successive calendar days (a person who pays for lodging on a calendar month basis, irrespective of the number of days in such a month, will not be deemed a transient);
B. Any occupant in a hospital room, medical or mental health facility, convalescent home, skilled nursing facility, assisted living facility, foster home, rehabilitation center or a government owned and operated public institution;
C. Any person housed through an emergency shelter or disaster program where the rent is paid with government assistance funds; or
D. Any Federal Government employee traveling on official government business, who presents an official Government Exemption Certificate or official travel authorization. An exemption may also be granted for direct bills to a Federal Government department, agency or instrumentality. An exemption may not be granted for rents paid by contractors of the Federal Government, even if the occupancy was for a Federal Government employee on official business, and notwithstanding the fact that such rents may be reimbursed by the Federal Government or paid under the contract with the Federal Government.

6.04.060 Registration of Operator; Form and Contents; Certification of Authority.

(Amended by Ordinances 186736, 187339, 188170, and 191957, effective January 1, 2025.)

A. Person engaging or about to engage in business as an operator in this City must register with the Division on a form provided by the Division. Operators starting business must register within 15 calendar days after commencing business. The failure to register with the Division does not relieve any person from the obligation of payment or collection of tax. registration must state the name under which an operator transacts or intends to transact business, any affiliated companies or brands that are associated with the registration, the location of the place of business and such other information necessary to facilitate the collection of the tax as the Division may require. The operator must sign the registration form.
B. Within 10 days after registration, the Division will issue a Certificate of Authority and establish an account to collect the tax from the transient. Certificates of Authority are nonassignable and nontransferable and will be returned to the Division upon the cessation of business or business sale or transfer at the location listed on the certificate, if applicable. Certificates of Authority must be prominently displayed so as to be seen by all occupants and persons seeking occupancy. If the rent transaction is facilitated online, the Certificate of Authority must be able to be viewed by the transient by clicking on link to the Certificate of Authority at a reasonable place during the payment transaction.
C. The Certificate of Authority will include at least the following:
1. 1. The name of the operator;
2. 2. The date the certificate was issued;
3. 3. “This Transient Occupancy Registration Certificate signifies that the person named has fulfilled the requirements of the Transient Lodgings Tax Chapter of the City for the purpose of collecting and remitting the lodgings tax. This certificate does not authorize any person to conduct any unlawful business or to conduct any lawful business in an unlawful manner, or to operate a hotel without strictly complying with all local applicable laws, including but not limited to those requiring a permit from any board, commission, department or office of the City. This certificate does not constitute a permit.”
D. Hosts of Type A and Type B accessory short-term rentals must comply with the requirements of Chapter 33.207. In addition, all operators of Type A and Type B accessory short-term rentals as described in Portland City Code Chapter 33.207 must prominently display the Type A permit number or Type B Conditional Use case file number, as applicable, in all advertising and other listing services. No operator will advertise or otherwise represent that an accessory short-term rental is available for occupancy unless all applicable legal requirements allowing the occupancy of a short-term rental has been met and the operator has registered with the Division as required above. Additionally, this permit number, Conditional Use case file number or other number issued directly by the Division must be prominently displayed in the rental unit so as to be seen by all short-term occupants.

6.04.070 Due Date; Returns and Payments.

(Amended by Ordinances 187339, 188170, and 191957, effective January 1, 2025.)

A. The tax imposed by this Chapter must be paid by the transient to the operator at the time that rent is paid. All amounts of such taxes collected by any operator are due and payable to the Division on or before the last day of the following month for the preceding three months. If the due date falls on a Sunday or legal holiday as defined by ORS 187.010, amounts are delinquent on the first business day that follows. Payments and returns received or postmarked before the first business day that follows will be deemed to have been received on the due date. The Division has authority to classify and/or district operators for determination of applicable tax periods, and will notify each operator of the due dates for returns.
B. On or before the last day of the month following each quarter of collection, or month of collection if an operator is required or elects to file monthly returns, a return for the preceding period’s tax collections must be filed with the Division. The return must be filed in such form as the Division may prescribe for payment of the tax.
C. Returns must show the amount of tax collected or otherwise due for the related period. The Division may require returns to include additional information to explain the tax calculation.
D. The person required to file the return must deliver the return, together with the remittance of the amount of the tax due, to the Division at its office, either by personal delivery or by mail. If the return is mailed, the postmark will be considered the date of delivery for determining delinquencies.
E. For good cause, the Division may extend for one month the time for making any return or payment of tax. No further extension will be granted, except by the Director. Any operator to whom an extension is granted will pay interest at the rate of 1.25 percent per month on the amount of tax due without proration for a portion of a month or reduction for any prepayments or credits available. If a return is not filed, and the tax and interest due is not paid by the end of the extension period, then the interest will be added to the tax due for computation of penalties and additional interest described elsewhere in this Chapter.
F. The Division, if deemed necessary in order to ensure payment or facilitate collection by the City of the amount of taxes in any individual case, may require returns and payment of the amount of taxes for other than quarterly periods. If an operator is required to report on a more frequent basis, the Division will provide a schedule showing the tax periods, due dates and delinquent dates.

6.04.080 Penalties and Interest.

(Amended by Ordinances 187339, 188170, 189557, and 191957, effective January 1, 2025.)

A. Original delinquency. Any operator who has not been granted an extension of time for remittance of tax due and who fails to remit any tax imposed by this Chapter on or before the due date will pay a penalty of 10 percent of the tax due in addition to the tax. There is no grace period between the due date and the assessment of a penalty and interest; the day following the due date is considered to be the delinquent date.
B. Continued delinquency. Any operator who fails to pay in full on or before the due date of an original delinquency notice will pay a second delinquency penalty of 15 percent of the amount of the tax due plus all penalty and interest assessments at the time of the continued delinquency calculation.
C. Fraud. If the City Administrator determines that the nonpayment of any amount due under this Chapter is due to fraud or intent to evade the provisions thereof, a penalty of 25 percent of the tax will be added in addition to the penalties stated in paragraphs A. and B. of this Section and interest stated in Subsection D. of this Section. This penalty is calculated on the entire amount due, including any penalties and interest previously assessed at the time of the calculations.
D. Interest. In addition to the penalties imposed, any operator who fails to file or pay any tax imposed by this Chapter will pay interest at the rate of one percent per month or fraction thereof without proration for portions of a month, on the amount of the tax due from the first day following the original due date. Interest will be compounded monthly until the amount due is paid in full.
E. Penalties and interest merged with tax. Every penalty imposed and such interest as accrues under the provisions of this Section will be merged with and become a part of the tax required to be paid. If delinquency continues, requiring additional penalty and interest calculations, previously assessed penalty and interest are added to the tax due. This amount becomes the new base for calculating new penalty and interest amounts. This merging continues each month until the full balance is paid.
F. Petition for waiver. Any operator who fails to pay the tax within the time stated must pay the tax, penalties and interest assessed; however, the operator may petition the City Administrator for waiver and refund or credit of all or part of the penalty assessed and the City Administrator may, if a good and sufficient reason is shown, waive some or all of the penalty assessment. Interest will not be waived except by written policy.
G. Any violation of Subsections 6.04.040 C. or D., Booking Agent and Operator Duties, will be subject to a civil penalty of $1,000 per violation per day. Each booking transaction or fee collected will be considered a separate violation.

6.04.090 Deficiency Determination; Fraud, Evasion, Operator Delay.

(Replaced by Ordinance 184772; amended by Ordinances 187339, 188170, and 191957, effective January 1, 2025.)

A. Deficiency determinations. If the Division determines that a return is incorrect, that required reports or returns have not been filed, or that an Operator has otherwise failed to comply with the terms of the Code, it may compute and determine or estimate the amount required to be paid based on the facts contained in the return or returns or any other information reasonably within its possession. Once a deficiency determination is made, the amount is due and payable within 10 days. The City Administrator may assess penalties and interest as set forth in Section 6.04.080.
1. 1. In making a deficiency determination, the Division may offset overpayments, if any, which may have been previously made against any deficiency for a subsequent period or periods, or against penalties and interest on the deficiency.
2. 2. The Division must give to the operator or transient (in the case of a refund request) a written notice of its deficiency determination. The notice may be served personally or by mail. If by mail, the notice will be addressed to the operator at the address as it appears on the records of the Division or as the Division can best determine if the operator has not provided that information to the Division. In case of service by mail or any notice required by this Chapter, the service is complete at the time of deposit with the United States Post Office.
3. 3. Any deficiency is due and payable within 10 days. The operator or Transient (in the case of a refund request) may petition for a redetermination if the petition is filed within 10 days of service as provided in Section 6.04.100. Nothing prohibits the Division from extending the time for petition beyond 10 days at its sole discretion.
4. 4. Every deficiency determination must be made and notice mailed within five years after a return was originally filed, subsequently amended or the tax was paid, whichever period expires later. In the case of the filing of a false or fraudulent return with the intent to evade this Chapter, a failure to file a required return, or willful refusal to collect and remit the tax, a deficiency determination may be made, or a proceeding for the collection of such deficiency may be commenced, at any time and is not subject to the five-year limitation above.
B. Operator delay. If the City Administrator believes that the collection of any tax or any amount of tax required to be collected and paid to the City will be jeopardized by delay, or if any deficiency determination will be jeopardized by delay, the City Administrator may make a deficiency determination of the tax or amount of tax required to be collected, noting the fact upon the deficiency determination. The amount so determined is immediately due and payable, and the operator will immediately pay such determination to the Division after service of notice thereof; provided, however, the operator may petition, after payment has been made, for a redetermination of the City Administrator’s assessment, if the petition is filed within 10 days from the date of the written notice from the Division.

6.04.100 Redeterminations.

(Amended by Ordinances 184772, 187339, 188170, and 191957, effective January 1, 2025.)

A. Any person against whom a deficiency determination is made under Section 6.04.090 or civil penalties assessed under Section 6.04.170 may petition for a redetermination within the time required in Section 6.04.090. The deficiency determination becomes final at the expiration of the allowable time.
B. If a petition for redetermination is filed within the time provided in Subsection 6.04.090 A.3., the City Administrator will reconsider the deficiency determination or civil penalties, and, if requested in the petition, will grant an oral hearing and give 10 days’ notice of the time and place of the hearing. The City Administrator may continue the hearing from time to time as may be necessary.
C. The City Administrator may adjust the amount of the deficiency determination as a result of the hearing and, if an increase is determined, such increase will be payable immediately after the hearing.
D. The City Administrator’s order or decision becomes final 10 days after service upon the petitioner unless an appeal is filed with the Business License Appeals Board or Hearings Officer, if applicable, within 10 days after service.
E. No petition for redetermination or other appeal will be accepted and no petition or appeal is effective for any purpose unless the operator has first complied with the payment provisions and has paid in full the amount determined to be due in the deficiency determination or civil penalty that is being appealed.

6.04.110 Security for Collection of Tax.

(Amended by Ordinances 162647, 187339, 188170, and 191957, effective January 1, 2025.)

The Division, whenever deemed necessary to ensure compliance with this Chapter, may require any operator to deposit security in the form of cash, bond or other security as the Division may determine. The amount of the security will be determined by the Division but will not be greater than twice the operator’s largest quarterly liability, determined in such manner as the Division deems proper. No interest will accrue on any security required by the Division.

6.04.120 Credits or Refunds.

(Amended by Ordinances 187339, 188170, and 191957, effective January 1, 2025.)

A. Credits by City to operator. Whenever the amount of any tax, penalty, or interest has been paid in error to the Division under this Chapter, it may be credited to the operator’s account, provided a verified claim in writing, stating the specific reason upon which the claim is founded, is filed with the Division within three years from the date of payment. If the claim is approved by the Division, the excess amount collected or paid may be credited against any current or future amounts due and payable from the operator. If there is no future liability, the Division may issue a refund.
B. Refunds by City to transient. Whenever the tax required by this Chapter has been collected by the operator, and paid by the operator to the Division, and it is later determined that the tax was erroneously collected by the operator, it may be refunded by the Division to the transient or the party who paid the tax if different from transient, provided a verified claim in writing, stating the specific reason on which the claim is founded, is filed with the Division within three years from the date of payment. Prior to any refund, the Division will audit the operator’s records to determine that the tax was collected and paid to the City.
C. Refunds by operator to transient. Whenever the tax required by this Chapter has been collected by the operator and it is later determined that the tax was collected in error, the operator will refund to the transient the tax previously collected. The operator will account for such collection and refund to the Division. If the operator has remitted the tax prior to refund to the transient, the operator may request a credit for the refunded tax when the next report is filed with the City.

6.04.130 Administration and Recordkeeping.

(Amended by Ordinances 187339, 188170, 188501, and 191957, effective January 1, 2025.)

A. Records required from operator. Operators must keep appropriate records, including but not limited to registration forms or logs, accounting and bank records, supporting documentation for all deductions taken and any other documentation necessary to support the tax report filed or required to be filed. All records must be retained by the operator for a period of five years and six months after the filing of the tax return, amended return or payment of the tax, whichever is later.
B. Examination of records; investigations. The City Administrator may examine during normal business hours the books, papers and accounting records relating to tax returns filed by any operator, after notification to the operator liable for collecting and remitting the tax, and may investigate the business of the operator in order to verify the accuracy of any return made, or if no return is made or, to determine the amount required to be paid.
C. Subpoenas. For purposes of determining compliance with this Chapter, the City Administrator may issue subpoenas to any operator or person for the production of all information, documents, reports, records, accounts, papers, and other data and documentary evidence, in whatever format or however stored, necessary to ensure compliance with this Chapter.
1. 1. It is unlawful for any operator or person so subpoenaed to neglect or refuse to attend at the proper time and place and to bring the records mentioned in the subpoena, or, having done so, to refuse or neglect to answer such questions as may be applicable to the matter at issue or to allow records to be examined, unless the operator or person has first sought and obtained an order quashing the subpoena from a court of competent jurisdiction, in the same manner as provided for in a civil case. Failure to seek and obtain such an order waives any objections or defenses the person may have against compliance with the subpoena, whether or not the person made any specific objections or raised that specific defense in seeking the order to quash.
2. 2. If an operator or person subpoenaed as provided fails to appear or produce any records as required, or whenever any operator or person so summoned refuses to answer any question pertinent to the subject under inquiry, the City Attorney may apply to any court of competent jurisdiction for an order to the operator or person to attend and testify, or otherwise comply with the subpoena.
3. 3. The City Attorney’s application to the court may seek an order requiring the operator or person against whom the subpoena is directed to comply with the subpoena within three days after service of the order, or within such further time as the court may grant, or to justify the failure within that time.
D. Should the City prevail in any legal proceedings in any state or federal court to collect the taxes, penalties and interest assessed in accordance with this Chapter, or to enforce a subpoena, the City will be entitled to its reasonable costs and attorneys’ fees.
E. At any time within five years after any tax or any amount of tax required to be collected becomes due and payable or at any time within five years after any determination becomes final, in the case where no tax returns have been filed, the Division may bring an action in the courts of this State, or any other state, or of the United States in the name of the City to collect the amount tax due, together with all penalties and interest amounts assessed under this Code.
F. Confidential financial information. Except as otherwise required by law, it is unlawful for the Division, or any elected official, employee or agent, to divulge, release, or make known in any manner any financial information submitted or disclosed to the Division under the terms of Chapter 6.04. Nothing in this subsection prohibits:
1. 1. The disclosure to, or the examination of, financial records by City officials, employees or agents for the purpose of administering or enforcing the terms of this Chapter, or collecting taxes imposed under the terms of this Chapter, or collecting City permit fees or business license taxes; or
2. 2. The disclosure to the operator or an authorized representative of financial information, including amounts of transient lodgings taxes, penalties, or interest, after filing of a written request and approval of the request by the Director; or
3. 3. The disclosure of the names and addresses of any persons to whom Certificates of Authority have been issued; or
4. 4. The disclosure of general statistics in a form which would prevent the identification of financial information regarding any particular operator’s return; or
5. 5. The disclosure of financial information to the City Attorney 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.
6. 6. The disclosure of financial information or unpaid tax balances, including penalty and interest assessments, to an outside collection agency on contract with the City to provide collection services.

6.04.140 Revenue Division Appeals Board; Hearings Officer; Appeal; Rules.

(Replaced by Ordinance 184772; amended by Ordinances 187339, 188170, and 191957, effective January 1, 2025.)

A. Except as provided herein, the Revenue Division Appeals Board has authority to hear and determine appeals of orders or decisions of the City Administrator made upon petitions for redetermination. The Board may affirm, modify, or reverse such orders or decisions or dismiss the appeals and prescribe such forms, rules, and regulations relating to appeals as it may deem necessary. In the review of the City Administrator’s decision or order, the Board may take such evidence and make such investigation as it may deem necessary. It will give notice of its determinations in the manner prescribed for service of a notice of the City Administrator’s decision and will file a copy of each such determination with the Division. Such determination will become final after 10 days and any increase to the determination becomes due and payable once final, subject to interest and penalties, and enforceable by the City Administrator as an order or decision of the City Administrator.
B. For an amount in controversy greater than $10,000 and less than $50,000, an appellant may request a hearing by an appointed Hearings Officer instead of a hearing by the Revenue Division Appeals Board.
C. An appeal involving an amount in controversy greater than $50,000 will be heard by a Hearings Officer instead of a hearing by the Revenue Division Appeals Board. The Hearings Officer will be appointed by the City Attorney, will be a member of the Oregon State Bar and will not be a City employee.
D. In appeal hearings held before a Hearings Officer, the appellant and the City’s representative will each have the right to appear in person and be represented by legal counsel, to receive notice, to respond to and present evidence, to call and cross-examine witnesses under oath and to present argument on all issues involved. Subject to the provisions herein, the City Attorney may promulgate supplementary rules and procedures for the conduct of the hearing, the forms of notice and proceedings, and the preparation and submission of the record.
E. The record in a proceeding before the Hearings Officer will include:
1. 1. All pleadings, motions, and intermediate rulings;
2. 2. Evidence received or considered;
3. 3. Stipulations;
4. 4. A statement of matters officially noticed;
5. 5. Questions and offers of proof, objections, and rulings thereon;
6. 6. Proposed findings and exceptions; and
7. 7. Any proposed, intermediate, or final order prepared by the Hearings Officer.
F. The Hearings Officer has the power to compel attendance of witnesses by deposition or at hearing and the production of documents by subpoena to any party upon showing of general relevance and subpoena in accordance with civil law.
G. The formal rules of evidence do not apply and any relevant evidence that is the sort of evidence upon which reasonably prudent persons are accustomed to rely in the conduct of serious business affairs is admissible. Irrelevant, immaterial, or unduly repetitious evidence will be excluded. Hearsay evidence may be considered by the Hearings Officer, but no findings may be based solely on hearsay evidence unless supported or corroborated by other relevant and competent evidence. The Hearings Officer will give effect to the rules of privilege recognized by law.
H. The Hearings Officer may take notice of judicially recognizable facts, and the Hearings Officer may take official notice of general, technical, or scientific facts within the specialized knowledge of City employees.
I. A verbatim, written, mechanical, or electronic record will be made on all motions, rulings, and testimony if requested by any party. The record will be transcribed for the purposes of court review. If the City prevails on such review, the reasonable costs of preparing the transcript will be allowed as a part of the City's costs in such action.
J. The Hearings Officer is authorized to rule upon issues of law or fact and to determine the amount of the tax, penalty or interest due in accordance with the Transient Lodgings Tax Law. The Hearings Office does not have any jurisdiction to waive, mitigate or suspend the collection of any tax, penalty or interest assessment found to be duly imposed.
K. The decision of the Hearings Officer will be issued in writing in a final order. The final order becomes final on the date specified in the order, which date will be within 30 days after the conclusion of the hearing. The decision is the final administrative remedy of the appellant. Any amounts due are payable to the City within 10 days of the order becoming final. The Hearings Officer will notify the parties to a proceeding of a final order by delivering or mailing a copy of the order and any accompanying findings and conclusions to each party or, if applicable, the party's attorney of record.

6.04.150 Appeal to Revenue Division Appeals Board, Hearings Officer.

(Replaced by Ordinance 184772; amended by Ordinances 187339, 188170, and 191957, effective January 1, 2025.)

Any operator or transient aggrieved by a decision of the City Administrator made pursuant to Section 6.04.100 may appeal to the Revenue Division Appeals Board or Hearings Officer as allowed in Section 6.04.140 by filing a notice of appeal with the City Administrator within 10 days of the service of the notice of a City Administrator’s decision. Any hearing will be scheduled by the Revenue Division Appeals Board or Hearings Officer in accordance with rules pertaining to such appeals.

6.04.155 Appeal of Penalty or Interest Assessments.

(Added by Ordinance 188170; amended by Ordinance 191957, effective January 1, 2025.)

Appeals of penalty and/or interest assessments are not subject to the appeals process or timeline outlined in Section 6.04.140 or 6.04.150 above. The operator must follow the “Redetermination” procedures under Section 6.04.100. The decision of the City Administrator regarding penalty and interest assessments is final.

6.04.165 Presumptive Tax for Failure to Register or File Returns.

(Added by Ordinance 188170; amended by Ordinance 191957, effective January 1, 2025.)

A. The City Administrator may impose a presumptive tax upon any person failing or refusing to register as an operator or file tax returns as required under this Chapter.
B. In calculating the presumptive tax amount when imposed under this Section, the Division will determine:
1. 1. The number of rooms that the operator controlled for each day that it was not registered; and
2. 2. The room rental rate, based upon the best available information, including comparable operations by a similarly situated operator; or
3. 3. Use any other reasonable method available to the Division to impose a presumptive tax, including but not limited to tax returns filed by similarly situated operators.
C. Any presumptive tax issued under this Section will include penalty and interest assessments based on when the registration or tax returns were originally due, following the rules established within this Chapter.
D. Presumptive taxes are not intended to approximate actual taxes that may be due and nothing prohibits the City Administrator from assessing excessive tax amounts due based on reasonable assumptions and calculation methods.

6.04.170 Civil Penalties for Violations of this Chapter.

(Amended by Ordinances 186985, 187339, 188170, and 191957, effective January 1, 2025.)

It is unlawful for any operator or other person so required to fail or refuse to register or to fail or refuse to file any return required, or to fail or refuse to file a supplemental return or any other data required by the Division, or to render a false or fraudulent return, or to fail to perform any of the duties required in Chapter 6.04. No person required to make, render, sign, or verify any report will make any false or fraudulent report with intent to defeat or evade the determination of any amount due required by this Chapter. In addition to any presumptive taxes assessed under Section 6.04.165, the City Administrator may impose a civil penalty of up to $500 for each violation of this Chapter. Violations may be assessed as frequently as necessary to achieve compliance with this Chapter, up to and including daily. A violation includes, but is not limited to:
A. Failure to file any required Transient Lodgings Tax payment and/or report, including any penalties and interest, within 60 days of the due date;
B. Filing a false or fraudulent report;
C. Failure to register a hotel or short-term rental, or failure to register as an operator with the Division as described in Section 6.04.060;
D. Failure to maintain a separate account for the transient lodgings tax collected when required by the Division;
E. Failure to provide any data or other information requested by the Division, including but not limited to, the physical address of a transient lodging occupancy location within Portland and the related contact information;
F. Failure by a Host or failure by any operator to prominently display the Type A Permit Number, Type B Conditional Use case file number or Revenue Division issued advertising number in advertising or other listing services, or failure by the host to post the number in the short-term rental unit; and
G. Failure by an operator to prominently display the Accessory Short-Term Rental permit number, case file number or other number issued by the Division in all advertisements and/or in the short-term rental.
H. Failure by an operator to maintain records required in Subsection 6.04.130 A.

Chapter 6.05 Tourism Improvement District

(Chapter added by Ordinance 185443, effective July 20, 2012.)

6.05.010 Portland Tourism Improvement District.

(Amended by Ordinances 189028 and 191957, effective January 1, 2025.)

The Portland Tourism Improvement District includes all hotels, as defined in Section 6.05.020, and all short-term rental hosts who use booking agents to advertise or accept reservations within the City limits.

6.05.020 Definitions.

(Amended by Ordinances 187339 , 187828 , 188171 , 189028, 190318, 191559 , and 191957 , effective January 1, 2025.)

A. Booking agent means any person that provides a means through which a host may offer a short-term rental for transient lodging occupancy. This service is usually, though not necessarily, provided through an online platform and generally allows a host to advertise the short-term rental through a website provided by the booking agent’s hosting platform and provides a means for potential users to arrange transient lodging occupancy and payment, whether the transient pays rent directly to the host or to the booking agent. Booking agents include, but are not limited to:
1. 1. Online travel booking sites which are involved in the process of listing and booking short-term rental transient lodging occupancies and handle any aspect of the resulting financial transaction; or
2. 2. Online travel booking sites for short-term rental transient lodging occupancy where advertisements of short-term rental transient lodging occupancy rentals are displayed; or
3. 3. A hosting or other online site that provides a means through which an operator, host or agent may offer a short-term rental unit for transient lodging occupancy; or
4. 4. Any person who lists commercial hotel rooms or long-term rentals for transient lodging occupancy; or
5. 5. Any person who directly or indirectly accepts, receives or facilitates payment, whether or not they are the ultimate recipient of the payment, including through application programming interfaces (APIs) or other computerized devices where third-party providers receive information about a transaction and collect funds for the transient lodging occupancy from a transient; or
6. 6. Any transient lodging provider, transient lodging intermediary or transient lodging tax collector as defined in ORS 320.300.
B. Division means, for the purposes of this Chapter, the revenue service and program of the City Administrator under Chapter 3.06 of this Code and which may be referred to as “Revenue Division”;
C. Division Director and Director mean the City Administrator or their designee who carries out the work of the Division;
D. District means the Portland Tourism Improvement District as described in this Chapter;
E. Notice means a written document mailed by the Division by first class mail to the last known address of a hotel as provided to the Division in the latest application or return on file at the Division; or, if mailed to a hotel who is not a licensee, then to the last known address of the hotel as provided to the Portland Water Bureau or, if that Bureau has no address record, as provided to the Revenue Division in the latest business license tax return on file at the Division or, if none, then to such address as may be determined following reasonable investigation;
F. Hotel means any structure, or any portion of any structure which is used, occupied, intended or designed for transient occupancy for 30 days or less for dwelling, lodging, or sleeping purposes, and includes, but is not limited to, any hotel, inn, tourist home or house, motel, studio hotel, boutique hotel, lodging house, rooming house, apartment house, single family house or any portion of such house, duplex, condominium, bed and breakfast facility, vacation home, multi-dwelling structure, accessory dwelling unit, trailer home, houseboat, public or private dormitory, hostel, fraternity, sorority, public or private club, corporate housing or executive housing space or facility and also means space in a mobile home or trailer park or portion thereof so occupied, provided such occupancy is for less than a 31 day period. All hotels must comply with all local codes applicable to their location and use, including but not limited to zoning and building codes.
G. Engaged in hotel management activities means:
1. 1. Being financially responsible for a water service provided to a hotel or short-term rental; or
2. 2. Being financially responsible for operation of a hotel or short-term rental business; or
3. 3. Being responsible for initiating or maintaining short-term rental listing information on an online travel booking site; or
4. 4. Being financially responsible for the indicia of management of a hotel or short-term rental, in cases not covered by Subsection 1. or 2. Indicia of management of property include, in order of importance, but need not be limited to:
  1. a. Being responsible for waste disposal service provided to a hotel or short-term rental;
  2. b. Being responsible for providing fire insurance for a hotel or short-term rental;
  3. c. Being responsible for repair and maintenance of a hotel or short-term rental;
  4. d. Being responsible for operation of heating, ventilating, and air conditioning equipment that serves a hotel or short-term rental; and
  5. e. Being responsible for the operation and maintenance of fire prevention and suppression equipment that serves a hotel or short-term rental.
H. City Council means the City Council of the City of Portland, Oregon.
I. Rent means the full consideration charged to the transient for the right to occupy a room in a hotel or short-term rental for the occupancy of guest rooms only, valued in money, goods, gift cards, labor, credits, property or other consideration of valued, without any deduction. Rent is considered to be the total amount represented to the transient as the consideration charged for the occupancy including any accommodation fees, customer fees, booking fees, service fees, off-platform booking fees, non-refundable fees, commissions or similar amounts paid to or withheld by a person that facilitates the reservation of a room.
J. Management corporation means an incorporated nonprofit organization that is responsible for the promotion of the City on a year-round basis; manages tourism-related economic development plans, programs, and projects; and represents tourism-related businesses.
K. Person means any individual, firm, partnership, joint venture, limited liability company, association, club, trust estate, corporation (for profit or not-for-profit), or any other entity or combination of entities capable of engaging in hotel management activities within the District.
L. Licensee means a person licensed to engage in hotel management activities within the District under this Chapter.
M. Room means each portion of a hotel or short-term rental which may be rented or is intended to be rented to a separate transient lodger or lodging party, other than rooms containing no sleeping accommodations and intended to be used for purposes other than sleeping and living accommodations such as, meetings, recreation, education, business or other purposes. In rooms with multiple beds where each bed may be rented or is intended to be rented to a separate transient lodger, such as bunk and dormitory style rooms, each bed is counted as a room under this definition. This definition is included for purposes of determining if a hotel is included in the District.
N. Short-term rental means a house, duplex, multi-plex, apartment, condominium, bed & breakfast, accessory dwelling unit, tiny house, houseboat, trailer or other residential dwelling where a person rents a full house or guest bedroom(s) for transient lodging occupancy. A short-term rental is generally, but not always, zoned residential and has a residential building occupancy. Certain residential building occupancy may allow transient lodging occupancy by right or by permit.
O. Short-Term Rental Host means the owner, agent or person who resides at a short-term rental or has been designated by the owner, agent or resident of the short-term rental and who rents out the short-term rental for transient lodging occupancy either directly or by using a booking agent or Transient Lodging Intermediary.

6.05.030 License Registration Required.

(Amended by Ordinances 187828, 189028, and 191957, effective January 1, 2025.)

Any person engaged in hotel management activities of any hotel or short-term rental who use booking agents to advertise or accept reservations within the District must register for such activities covering each license year, or if application is made after the beginning of a license year, then for the balance of the license year. Only one person needs to register for each hotel or short-term rental who use booking agents to advertise or accept reservations in the District. The term “license,” as used in this Chapter, may not be construed to mean a permit and no physical license will be issued. The license fees prescribed herein are for the privilege of engaging in the activity of hotel or short-term rental management in the District, and the revenues collected will be used as provided herein. The payment of a license fee required under this Section and the acceptance of such fee will not entitle a licensee to engage in any activities not in compliance with all the requirements of this Code, including but not limited to the requirements of Title 7, and all other applicable laws.

6.05.040 License Transfer.

(Amended by Ordinances 187828 and 191957, effective January 1, 2025.)

A. Except as provided in this Section, no license may be transferred or assigned from one person to another.
B. The Division will allow transfer of a license for the balance of its term to a successor or transferee who continues the acts that constituted hotel management activities requiring a license under this Chapter. Any transfer must be reported to the Division in writing or on a form provided by the Division and will be effective when the Division approves the transfer as complete. The licensee will be responsible for any license fee installments which become payable prior to the Division’s approval; and the transferee will be responsible for any license fee installments which become payable after the Division’s approval.

6.05.060 Portland Tourism Improvement District License Rate.

(Amended by Ordinances 189028, 190318, 191559 and 191957, effective January 1, 2025.)

The license assessment established by this Chapter for hotel or short-term rental management activities in the Portland Tourism Improvement District will be calculated as follows:
A. Gross rent charged by the hotel or short-term rental who use booking agents to advertise or accept reservations;
B. Minus rent received from any occupant for a stay of more than 30 successive calendar days (rent derived from stays by a person who pays for lodging on a monthly basis, irrespective of the number of days in such a month, will also be subtracted);
C. Minus rent received from stays by any person housed through an emergency shelter or disaster program where the rent is paid with government assistance funds; and
D. Minus rent received from stays by any U.S. Federal Government employee traveling on official government business, who presents an official Government Exemption Certificate or official travel authorization.
E. Multiplied by .02 (two percent) for stays occurring before July 1, 2021 and by .03 (three percent) for stays occurring after June 30, 2021.

6.05.070 Due Date; Returns and Payments.

(Amended by Ordinances 187828, 188171, 189028, and 191957, effective January 1, 2025.)

A. The assessment imposed by this Chapter is due and payable on or before the last day of the following month for the preceding three months. If the due date falls on a Sunday or legal holiday as defined by ORS 187.010, amounts are delinquent on the first business day that follows. Payments and returns received or postmarked before the first business day that follows will be deemed to have been received on the due date. The Division has the authority to classify and/or district the hotels or short-term rental who use booking agents to advertise or accept reservations for determination of applicable collection periods.
B. On or before the last day of the month following each quarter of collection, or month of collection if a hotel or short-term rental is required or elects to file monthly returns, a return for the preceding period’s assessment on a form prescribed by the Division must be filed. The return must be filed in such form as the Division may prescribe for payment of the assessment.
C. Returns must show the amount of assessment owed for the period. The Division may require returns to include additional information to explain the assessment calculation.
D. The person required to file the return must cause to be delivered the return, together with the remittance of the amount of assessment due, to the Division at its office, either by personal delivery or by mail. If the return is mailed, the postmark will be considered the day of delivery for determining delinquencies.
E. For good cause shown, the Division may extend the time for making any return or payment of the assessment for one month. No further extension will be granted, except by the Director. Any person granted an extension will pay interest at the rate of 1.25 percent per month on the amount of assessment due without proration for a portion of a month or reduction for any prepayments or credits available. If an extension is granted and the assessment and interest due is not paid by the end of the extension granted, then the interest will be added to the assessment due for computation of penalties and additional interest designed elsewhere in this Chapter.
F. The Division, if deemed necessary in order to ensure payment or facilitate collection by the Division of the amount of assessments in any individual case, may require returns and payment of the amount of assessments for other than quarterly periods. If a hotel or short-term rental who use booking agents to advertise or accept reservations is required to report on a more frequent basis, the Division will provide a schedule showing the assessment periods, due dates and delinquent dates.
G. Any booking agent or transient lodging intermediary who collects and remits the Transient Lodging tax imposed under Chapter 6.04, must also provide a short-term rental host an option for the booking agent or transient lodging intermediary to collect and remit the assessment imposed by this Chapter.

6.05.080 Disposition of License Fees.

(Amended by Ordinances 187828 and 191957, effective January 1, 2025.)

The Division will forward revenues collected, minus any amount withheld to cover administrative costs incurred by the Division to the management corporation, which will manage funds pursuant to Section 6.05.120.

6.05.090 Authority of City Administrator to Adopt Rules, Procedures, and Forms.

(Amended by Ordinances 187828 and 191957, effective January 1, 2025.)

The City Administrator, as authorized by Charter, may adopt administrative rules, procedures, and forms to implement the provisions of this Chapter.

6.05.100 Penalties and Interest.

(Amended by Ordinances 187828, 188171, 189028, and 191957, effective January 1, 2025.)

A. Original delinquency. Any licensee that has not been granted an extension of time for remittance of the assessment due and who fails to remit any assessment imposed by this Chapter on or before the due date will pay a late penalty of 10 percent of the amount of the assessment due in addition to the assessment. There is no grace period between the due date and the assessment of penalty and interest; the day following the due date is considered to be the delinquent date.
B. Continued delinquency. Any licensee who fails to pay in full on or before the due date of an original delinquency notice will pay a second delinquency penalty of 15 percent of the amount of the assessment due plus all penalty and interest assessments at the time of the continued delinquency calculation.
C. Fraud. If the Division determines that the nonpayment of any amount due under this Chapter is due to fraud or intent to evade the provisions thereof, a penalty of 25 percent of the assessment will be added in addition to the late penalties stated in Subsections A. and B. of this Section and interest stated in Subsection D. of this Section. This penalty is calculated on the entire amount due, including any penalties and interest previously assessed at the time of the calculation.
D. Interest. In addition to the penalties imposed above, any Licensee that fails to file or pay any assessment imposed by this Chapter will pay interest at the rate of one percent per month or fraction thereof without proration for portions of a month, on the amount of the assessment due from the first day following the original due date. Interest will be compounded monthly until the amount due is paid in full.
E. Penalties and interest merged with assessment. Every penalty imposed and such interest as accrues under the provisions of this Section will be merged with and become a part of the assessment required to be paid. If delinquency continues, requiring additional penalty and interest calculations, previously assessed penalty and interest are added to the assessment due. This amount becomes the new base for calculating new penalty and interest amounts. This merging continues each month until the full balance is paid.
F. Petition for waiver. Any licensee that fails to pay the assessment within the time stated must pay the tax, penalties and interest assessed; however, the hotel may petition the Division for waiver and refund or credit of all or part of the penalty assessed and the Division may, if a good and sufficient reason is shown, waive some or all of the penalty assessment. Interest will not be waived except by written policy.

6.05.105 Revenue Division Appeals Board; Hearings Officer; Appeal; Rules.

(Added by Ordinances 187828 and 191957, effective January 1, 2025.)

Any person engaged in hotel management activities aggrieved by a decision of the City Administrator made pursuant to this Chapter may appeal to the Revenue Division Appeals Board or Hearings Officer as allowed in City Code Section 6.04.140 by filing a notice of appeal with the City Administrator within 10 days of the service of the notice of a decision. Any hearing will be scheduled by the Revenue Division Appeals Board or Hearings Officer in accordance with rules pertaining to such appeals. The procedures and rules of Section 6.04.140 will apply to any such appeal.

6.05.110 Civil Penalties.

(Amended by Ordinances 187828, 189028, and 191957, effective January 1, 2025.)

A. The City Administrator may impose a civil penalty of up to $500 for failure to file a return or pay any assessment within 60 days of the Due Date provided in Section 6.05.070.
B. Failure to separately state on the guest folio, bill or receipt the two percent fee if the charge is being passed through to the guest as an additional charge or fee.
C. The determination of a violation and imposition of a civil penalty under this Section will be subject to appeal pursuant to Section 6.05.105.

6.05.120 Revenues and Programs.

(Amended by Ordinances 187828, 189028, 190318, and 191957, effective January 1, 2025.)

A. Revenues may be used only for programs that promote overnight tourism and improve the lodging and hospitality business environment. Programs must be designed to benefit both hotels and short-term rental hosts who use booking agents to advertise or accept reservations paying the assessment. Programs may include:
1. 1. Internet, radio, television, and print advertising;
2. 2. Branding efforts;
3. 3. Sales promotions;
4. 4. Sponsorship of special events which attract out-of-town visitors; and
5. 5. Other programs designed to increase overnight stays at hotels or short-term rentals.
B. Revenues must be forwarded to and managed by a comprehensive destination marketing organization operating in Portland, which will be the management corporation. The management corporation:
1. 1. Must prepare and submit to the City Council, and make available to lodging businesses, an annual report on expenditures and activities;
2. 2. Must manage funds in accordance with the provisions of this Chapter;
3. 3. Will not be considered a public entity for any purpose and its Board members will not be considered public officials for any purpose; and
4. 4. Must enter into an agreement with the City relative to management of district funds.
C. The Portland Tourism Improvement District is intended to provide supplemental funding for marketing programs above and beyond those currently provided. Portland Tourism Improvement District funds will supplement the existing funding of one percent of transient lodging tax dedicated to promotion, solicitation, procurement and service of convention business and tourism in the City.

6.05.140 Severability.

(Amended by Ordinance 191957, effective January 1, 2025.)

If any portion, clause, or phrase of this Chapter is for any reason held to be invalid or unconstitutional by a court of competent jurisdiction, and if such portion, clause, or phrase is not so substantial that the City Council would not have adopted this Chapter without it, then the remaining portions, clauses, and phrases will not be affected but will remain in full force and effect.

Chapter 6.06 District Property Management License

(Chapter replaced by Ordinance 191960, effective January 1, 2025.)

6.06.010 License Required.

Any person engaged in property management activity within a District will pay a license fee for the activities covering each license year, or if registration is made after the beginning of a license year, then for the balance of the license year. The term “license,” as used in this Chapter, will not be construed to mean a permit and no physical license will be issued. The license fees prescribed herein are for the privilege of engaging in the activity of property management in a District, and the revenues collected will be used to provide, through a qualified contractor, cleaning, security, crime prevention, business development, transportation, public policy, housing, and marketing and communications services, or any services, that benefit properties in the District. The payment of a license fee required under this Section and the acceptance of fee and issuance of a license by the City will not entitle a licensee to engage in any activities not in compliance with all the requirements of this Code, including but not limited to the requirements of Title 7 and all other applicable laws.

6.06.020 Definitions.

Unless the context requires otherwise, the terms used in this Chapter will be defined as follows:
A. Assessed value of improvements means, for property tax years beginning on or before July 1, 1996, the assessed value of improvements as recorded in the assessment roll for Multnomah County for a specified assessment year and, for property tax years beginning on or after July 1, 1997, the real market value of improvements as recorded in the assessment roll for Multnomah County for a specified assessment year; or, as to property assessed by the Oregon Department of Revenue, the real market value of the property where “real market value” means the minimum amount in cash which could be reasonably expected by an informed seller acting without compulsion from an informed buyer acting without compulsion, in an arm’s length transaction during that assessment year.
B. Division means, for the purposes of this Chapter, the revenue service and program of the City Administrator under Chapter 3.06 of this Code and which may be referred to as “Revenue Division” or “Division”.
C. Business property means real property that is not residential property and is not exempt property. If real property in the District in part is residential or exempt property and in part is neither residential nor exempt property, then “business property” is that portion of the real property that is neither residential nor exempt property, including a proportionate share of the land. For a condominium, all condominium units and their undivided interests in the common elements will be treated as a single property.
D. CPI-W means the Consumer Price Index for Urban Wage Earners and Clerical Workers for Portland-Salem, OR-WA, not seasonally adjusted, as published semi-annually by the United States Bureau of Labor Statistics. Effective January 1, 2018, “CPI-W means the Consumer Price Index for Urban Wage Earners and Clerical Workers for West – Size Class A, not seasonally adjusted, as published by the United States Bureau of Labor Statistics.
E. CPI-W adjustment factor for a license year means the fraction in which the numerator is the CPI-W Annual immediately preceding the commencement of that license fee year and the denominator is the CPI-W Annual for 2023.
F. District means an enhanced services district as described in this Chapter.
G. Elevator capacity means the pounds of elevator capacity for elevators type PXH, PXVE, and PXE as recorded in the records of the Building Codes Division of the Oregon Department of Consumer and Business Services.
H. Engaged in property management activity or engagement in property management activity means:
1. 1. Being financially responsible for a water service provided to a building or, if there is no building on property, to land within the District, in the event there is a single water service serving the property.
2. 2. Being financially responsible for operation of a business or a residential use that exclusively occupies a building or, if there is no building on property, land within the District, in the event there is no water service serving the property.
3. 3. Being financially primarily responsible for the indicia of management of property within the District, in cases not covered by Subsection 1. or 2. Indicia of management of property include, in order of importance, but need not be limited to:
  1. a. Being responsible for a water service provided to common areas of a building;
  2. b. Being responsible for waste disposal service provided to a building, including common areas, or, if there is no building, to land;
  3. c. Being responsible for providing fire insurance for a building;
  4. d. Being responsible for repair and maintenance of a building;
  5. e. Being responsible for operation of heating, ventilating, and air conditioning equipment that serves a building, including common areas; and
  6. f. Being responsible for the operation and maintenance of fire prevention and suppression equipment that serves a building, such as alarm systems and sprinklers.
4. 4. Notwithstanding Subsections 1. through 3. of this Subsection, being an owner of property whose activities in relationship to the property consist only of activities that the owner is mandated by law to carry out will not constitute being “engaged in property management activity.”
I. Exempt property means:
1. 1. Mass shelters, as defined in Chapter 33.910 of this Code.
2. 2. Property owned or being purchased by religious organizations including:
  1. a. Houses of public worship and other additional buildings and property used solely for administration, education, literary, benevolent, charitable, entertainment, and recreational purposes by religious organizations, the lots on which they are situated, and the pews, slips, and furniture therein. However, “exempt property” does not include any part of any house of public worship or other additional buildings or property which is kept or used as a store or shop or for any purpose other than those stated in this subsection; and
  2. b. Parking lots used for parking or any other use as long as that parking or other use is permitted without charge for no fewer than 355 days during the license year.
3. 3. Any other property in a particular District established by this Chapter that this Chapter identifies as exempt property for that District.
J. Licensee means a person licensed to engage in property management activity within the District under this Chapter.
K. Notice means a written document mailed by the Division by first class mail to the last known address of a licensee as provided to the Division in the latest application on file at the Division; or, if mailed to a person who is not a licensee, then to the last known address of the person as provided to the Portland Water Bureau or, if that Bureau has no address record, as provided to the Revenue Division in the latest general business license tax return on file at the Division or, if none, then to the address as may be determined following reasonable investigation.
L. Person means a natural person, sole proprietorship, partnership, joint venture, association, club, trust estate, corporation (for profit or not-for-profit), or any other entity capable of engaging in property management activity within the District.
M. Qualified contractor means a non-profit corporation or other non-profit entity established by property owners or licensees in the District for the purpose of providing services that benefit the District.
N. Residential property means real property that is exclusively in residential use and is not exempt property. If part of real property is in residential use and part is not in residential use or is exempt property, then “residential property” is that portion of the real property that is exclusively in residential use and is not exempt property, and a proportionate share of land. Property is considered to be in residential use if the use is within a “Residential Use Category” as defined by Chapter 33.920 of this Code. For a condominium, all condominium units and their undivided interests in the common elements will be treated as a single property.
O. Square feet and square footage, except as otherwise expressly stated in this Chapter, means square footage as recorded in the records of the Multnomah County Office of Assessment and Taxation or, if not so recorded, as measured using the same method as used by the Multnomah County Office of Assessment and Taxation.

6.06.030 Authority of City Administrator to Adopt Rules, Procedures and Forms.

The City Administrator, as authorized by Charter, may adopt rules, procedures, and forms to implement the provisions of this Chapter.

6.06.040 License.

No person will engage in property management activity within the District unless the person first will have paid a license fee installment as described in Section 6.06.140.

6.06.050 Exemptions from License Requirements.

Persons who the City is prohibited from licensing or taxing under the Constitution or laws of the United States, the Constitution or laws of the State of Oregon, or the Charter of the City are exempt from the license requirements imposed by this Chapter, to the extent of any prohibition.

6.06.060 License Transfer.

A. Except as provided in this Section, no license will be transferable from one person to another.
B. The Division may allow transfer of a license for the balance of its term to a successor or transferee who continues the acts that constituted property management activity requiring a license under this Chapter. Any transfer will be reported to the Division in writing or on a form provided by the Division and will be effective on the date that engagement with property management activity changes as defined in this Chapter. The licensee engaged in property management activity prior to the change will be responsible for any license fee installments which were due prior to the change as well as any installments that were due after the change but were paid prior to the change. The entity engaged in property management activity after the change will be responsible for installments which become due after the change unless paid by another entity prior to the change.

6.06.070 Reserve.

6.06.080 License Term.

A. Each license issued under this Chapter will be dated as of the first day of the month in which the license is issued or was required to have been obtained. Each license issued under this Chapter will expire on the day prior to the beginning of the new license year. In no case will a license be valid in excess of 12 months.

6.06.090 Preparation and Notice of Fee.

On or before August 1st of each year, the Division will make a preliminary determination of each person engaged in property management activity within the District and subject to the license fee requirement and of the amount of license fee payable by the person for the next license year. On or before August 1st, the Division will mail to each person preliminarily determined to be engaged in property management activity within the District and subject to the license fee requirement a notice which contains the following information:

A. That the Division has determined the person is engaged in property management activity within the District that is subject to the license fee requirement.
B. The amount of the license fee the Division has determined to be payable by the person for the next license year, including the data and formula used in determining the amount.
C. The activities which constitute being engaged in property management activity, as defined in Subsections 6.06.020 H.1.-3.
D. The activities which do not constitute being engaged in property management activity, as defined in Subsection 6.06.020 H.4.
E. The exemption provisions of Section 6.06.050 and the definition of exempt property as set out in Subsection 6.06.020 I. and any other provision of this Chapter applicable to the District.
F. That any appeal from the determinations of the Division as to the person’s engagement in property management activity within the District, as to the person’s being subject to the license fee requirement, or as to the amount of the license fee payable by the person for the next license year, must be filed in writing with the Division not later than 30 days after the notice is mailed. Appeal information from Section 6.06.100 will be included with the notice.

6.06.095 Preparation and Notice of Fee Adjustment.

In cases in which the sections of this Chapter establishing a license fee formula for the District provide for a license fee adjustment, the Division, following City issuance of authorization to occupy improvements or any portion of improvements, will make a preliminary determination of the license fee adjustment for the balance of the license year. The Division will mail to the licensee a notice which contains the following information:

A. That the Division has determined that the licensee is subject to a fee adjustment.
B. The amount of the adjusted license fee the Division has determined to be payable by the licensee for the balance of the license year, including the data and formula used in determining the adjusted amount.
C. That any appeal from the determinations of the Division as to the person’s being subject to a license fee adjustment, or as to the adjusted amount payable for the balance of the license year, must be filed in writing with the Division not later than 30 days after the notice is mailed.

Failure to receive notice as provided in this Section will not relieve a person from the obligation to pay an adjusted license fee payable under this Chapter.

6.06.100 Appeals.

A. Persons to whom the Division mails a notice under Section 6.06.090 will be presumed to be engaged in property management activity within the district, to be subject to the license fee requirement, and to be liable for the amount indicated in the notice as the license fee payable by the person for the next license year, unless the person files with the Division an appeal not later than 30 days after the date of mailing of the notices. The City Administrator may allow appeals filed after 30 days for reasons including, but not limited to, mail delivery delays, mail returned to the Division as undeliverable, or property tax cancellation as described in Subsection 6.06.200 C.
B. Persons to whom the Division mails a notice under Section 6.06.095 will be presumed to be subject to a license fee adjustment, and to be liable for the adjusted amount indicated in the notice as payable for the balance of the license year, unless the person files with the Division an appeal not later than 30 days after the date of mailing of the notices.
C. A person may appeal a preliminary determination of the Division made under Section 6.06.090 on the following grounds:
1. 1. The person is not engaged in property management activity within the District as defined in Subsections 6.06.020 H.1.-4.
2. 2. The person is not subject to the license fee requirement because the person is exempt under Section 6.06.050.
3. 3. The amount of license fee determined by the Division to be payable by the person for the next license year is incorrect because the data reviewable under Subsection E. of this Section or the application of the formula to the data is incorrect.
D. A person may appeal a preliminary determination of the Division made under Section 6.06.095 on the following grounds:
1. 1. The licensee is not subject to a fee adjustment.
2. 2. The amount of the adjusted license fee determined by the Division to be payable by the person for the balance of the license year is incorrect because the data reviewable under Subsection E. of this Section or the application of the formula to the data is incorrect.
E. The Division, in its discretion, may grant an appeal without audit or may audit an appeal to determine whether the appeal should be granted. The audit may include review of the evidence as the Division deems appropriate. If the person appeals on the ground that the data used in determining the license fee payable are incorrect, the Division will not be bound by the data contained in the record sources identified in the sections of this Chapter establishing the license fee formula for the District and may consider other evidence as to data, except that the Division will be bound by the assessed value data as recorded in the Multnomah County assessment roll, by the square footage data as recorded in the records in the Multnomah County Office of Assessment and Taxation, by Portland Permitting & Development written documentation of authorization to occupy improvements or portions of improvements, by Portland Permitting & Development building permit application records of the cost of physical changes, and by Portland Permitting & Development building permit application records of the additional square feet of improvements, when those record sources are designated for use by a section of this Chapter establishing the license fee formula for the District. In the event the Division determines that an appeal should or should not be granted, in whole or in part, then the Division will give the appealing person written notice of the determination and the reasons, by mail or personal delivery. The Division’s determination is final.

6.06.110 Registration for License.

A. All persons required to obtain a license under this Chapter may register with the Division either in writing or on specific forms if provided by the Division. Registrations will be filed, together with the specified license fee installment if known or due at the time of registration:
1. 1. Before the property manager engages in property management activity in the District; or
2. 2. Prior to commencement of the new license year.
B. The Division may, for good cause, allow further time for filing registrations, except that no extension may be granted for more than 30 days.
C. The registration may contain a written declaration, verified by the property manager, that the statements made therein are true.
D. The Division will prepare information containing appropriate data and fee calculations and make them available at its office, on request. Failure to receive or secure a form, file a registration or to receive notice as provided in Section 6.06.090, will not relieve a person from the obligation to pay a license fee and register for a license under this Chapter.

6.06.120 Interest on Delayed Application.

When the time for filing a license registration is extended at the request of the applicant, interest at the rate specified in Subsection 6.06.150 B. will be added and paid on the license fee installment or portion thereof not paid within the time originally allowed.

6.06.140 Fee Payment in Two Installments.

Except as otherwise provided by Section 6.06.145, District license fees will be payable as follows:

A. Except as provided in Subsection 6.06.140 F., the license fee computed under a section of this Chapter establishing a license fee formula for the District will be payable in two equal installments, with the first installment due on October 1st of the license year and the second installment due on April 1st of the license year.
B. On or before February 15th of each license year, the Division will mail notice to each licensee stating the amount of the second installment payable on April 1st of the license year.
C. The property manager or licensee on record as of the billing date of the notice of fee each license year is presumed to be the responsible party for the entire license year unless the Division approves the transfer to another property manager or licensee under Section 6.06.060. If the licensee has not engaged in property management activity within the District until after the beginning of the license year and a transfer has been approved, then the fee payment required will be the next installment due.
D. In computing the license fee payable by a licensee who has not engaged in District business property management activity until after the beginning of a license year, no fee will be payable in relation to any real property which, for that license year, has been paid by another licensee.
E. In case of a license fee adjustment under a subsection of this Chapter establishing a license fee formula for the District:
1. 1. The amount of any adjustment increase allocable to the portion of the license year between October 1st and March 31st will be due 30 days after the Division’s mailing of notice of the fee adjustment to the licensee under Section 6.06.095, subject to any change in the adjustment in an appeal under Subsection 6.06.100 B.
2. 2. The amount of any adjustment increase allocable to the portion of the license year between April 1st and September 30th will be due on April 1st of the license year or 30 days after the Division’s mailing of notice of the fee adjustment to the licensee under Section 6.06.095, whichever is later, subject to any change in the adjustment in an appeal under Subsection 6.06.100 B.
3. 3. The amount of any adjustment decrease allocable to the portion of the license year between October 1st and March 31st, provided that the amount previously determined to be due as of that October 1st has already been paid, will be refunded to the licensee or credited to an outstanding installment amount due within 30 days after the Division’s mailing of notice of the fee adjustment to the licensee under Section 6.06.095, subject to any change in the adjustment in an appeal under Subsection 6.06.100 B.
4. 4. The amount of any adjustment decrease allocable to the portion of the license year between April 1st and September 30th, provided that the amount previously determined to be due as of that April 1st has already been paid, will be refunded to the licensee or credited to an outstanding installment amount due within 30 days after the Division’s mailing of notice of the fee adjustment to the licensee under Section 6.06.095, subject to any change in the adjustment in an appeal under Subsection 6.06.100 B.

6.06.145 Fee Payment in One Installment.

If a qualified contractor for a District has filed a written request approved by resolution of the Council that the District license fee be payable in one installment, District license fees for future license fee years will be payable as follows, until the time as the Council by resolution determines that the District license fee will be payable in two installments in accord with Section 6.06.140:

A. Except as provided in Subsection E. of this Section, the license fee computed under a section of this Chapter establishing a license fee formula for the District will be payable in one installment due on October 1st of the license year.
B. Each registration for a license, will be accompanied by payment of the license fee for the license year if known.
C. The property manager or licensee on record as of the billing date of the notice of fee each license year is presumed to be the responsible party for the entire license year unless the Division approves the transfer to another property manager or licensee under Section 6.06.060.
D. In computing the license fee payable by a licensee who has not engaged in District business property management activity until after the beginning of a license year, no fee will be payable in relation to any real property which, for that license year, has been included in computing the license fee payable by another licensee.
E. In case of a license fee adjustment under a subsection of this Chapter establishing a license fee formula for the District:
1. 1. The amount of any adjustment increase for a license year will be due 30 days after the Division’s mailing of notice of the fee adjustment to the licensee under Section 6.06.095, subject to any change in the adjustment in an appeal under Subsection 6.06.100 B.
2. 2. The amount of any adjustment decrease for a license year, provided that the amount previously determined to be due has already been paid, will be refunded to the licensee or credited to an outstanding installment amount due within 30 days after the Division’s mailing of notice of the fee adjustment to the licensee under Section 6.06.095, subject to any change in the adjustment in an appeal under Subsection 6.06.100 B.

6.06.150 Penalty and Interest on Failure to Pay Fee.

A. If a person:
1. 1. Fails to file a correct registration at the time required by or under this Chapter; or
2. 2. Fails to pay a fee installment at the time it becomes due, unless it is shown that the failure is due to reasonable cause and not due to neglect, then there will be added to the amount of a fee installment a penalty of:
  1. a. Five percent of the amount of the unpaid fee installment, but not less than $20, if the failure is for not more than one month; and
  2. b. Additional penalties of five percent of the unpaid fee installment for each additional month or fraction thereof during which the failure continues, up to a maximum of four additional months.
B. Interest will be collected on any unpaid fee installment at the rate of 10 percent simple interest per annum, computed on the balance still due at the end of each month following the date the fee installment became due. For purposes of this Subsection, “unpaid fee installment” will not include penalties or interest.
C. If a person fails to file a registration on the prescribed date, as determined with regard to any extension for filing, the Division may determine the fee and fee installment payable. If the Division determines the fee and fee installment payable, the Division will determine appropriate penalties and interest and will send notice to the person of the determination.
D. The Division may apply payments to penalty and interest assessments before applying payments to fee installments due.

6.06.160 Civil Penalties.

A. The City Administrator may impose a civil penalty of up to $500 for each of the following violations of this Chapter:
1. 1. Failure to file any registration within 90 days of the Division’s original written notice to file.
2. 2. Failure to pay any fee installment within 90 days of the Division’s original written notice for payment.
B. The City Administrator may only impose a civil penalty under this section if the Division gives notice of the potential for assessment of civil penalties for failure to comply in the original written preliminary determination notice issued under Sections 6.06.090 and 6.06.095.
C. The determination of a violation and imposition of a civil penalty under this Section will be subject to appeal to the Code Hearings Officer under the provisions of Chapter 22.10 of this Code.

6.06.180 Severability.

If any portion, clause, or phrase of this Chapter is for any reason held to be invalid or unconstitutional by a court of competent jurisdiction, and if that portion, clause, or phrase is not so substantial that the Council would not have adopted this Chapter without it, then the remaining portions, clauses, and phrases will not be affected but will remain in full force and effect.

6.06.190 Clean & Safe District.

(Replaced by Ordinance 191960, effective October 1, 2025.)

The Clean & Safe District is that area within the boundaries formed by SW Naito Pkwy from W Burnside St to SW Lincoln St; SW Lincoln St from SW Naito Pkwy to SW 4^th Ave; SW 4th Ave from SW Lincoln St to the pedestrian pathway north of 2020 SW 4^th Ave; the pedestrian pathway north of 2020 SW 4^th Ave from SW 4^th Ave to its termination at 301 SW Lincoln St, the pedestrian pathway from the northeast corner of 2020 SW 4^th Ave to SW Harrison St; SW Harrison St from the northwest corner of 222 SW Harrison St to SW 5^th Ave; SW 5^th Ave from SW Harrison St to SW Mill St; SW Mill St from SW 5^th Ave to SW Broadway; SW Broadway from SW Mill St to SW Market St; SW Market St from SW Broadway to SW 13^th Ave; SW 13^th Ave from SW Market St to SW Morrison St; SW Morrison St from SW 13^th Ave to SW 11^th Ave; SW 11^th Ave from SW Morrison St to W Burnside St; W Burnside St from SW 11^th Ave to NW 9^th Ave; NW 9^th Ave from W Burnside St to NW Naito Pkwy; and NW Naito Pkwy from NW 9^th Ave to W Burnside St, including the real property north of the intersection of NW 9^th Ave and NW Naito Pkwy known as 1362 NW Naito Pkwy, further described as COUCHS ADD, BLOCK 318, INC RIP RTS OUT TO HARBOR LN LOT 25-37, SELY 15.79' OF LOT 38.

6.06.200 Clean & Safe District Fee Rates for Engaging in Business Property Management Activity.

(Replaced by Ordinance 191960, effective October 1, 2025.)

A. The fee established by this Chapter for management of business property in the Clean & Safe District in a license year will be the sum of the following amounts, computed separately in relation to each property within the District as to which the licensee is engaged in property management activity:
1. 1. $97 cents per $1,000 of value of improvements, measured as set out in Subsection B. of this Section.
2. 2. Plus $5.52 per 290 square feet of improvements as of the July 1st immediately preceding commencement of the license fee year.
3. 3. Plus 1.9 cents per square foot of land as of the July 1st immediately preceding commencement of the license fee year.
4. 4. Plus 18 percent of the amounts determined under Subsections A.1. through 3.
5. 5. Plus 1.401 cents per square foot of improvements and, for surface parking lots, per square foot of land square footage, as of the July 1st immediately preceding commencement of the license fee year, multiplied by 1.6366.
6. 6. Plus the total of the amounts determined under Subsections 6.06.200 A.1. through 5. multiplied by the CPI-W factor, for license fee years commencing on or after October 1, 2025.
B. “Value of improvements” under this Section will be measured as follows:
1. 1. For business property as to which, on or after July 1, 2023, there have been no physical changes resulting in an increase or decrease in square footage of improvements nor the establishment, cancellation, merger, or other change to real property parcels that resulted in a change in land square footage as compared to the square footage as of July 1, 2023, “value of improvements” is the assessed value of improvements for the 2023–24 property tax assessment year.
2. 2. For business property as to which, on or after July 1, 2023, there have been physical changes resulting in an increase or decrease in square footage of improvements or the establishment, cancellation, or merger of real property parcels that resulted in a change in land square footage of any parcel as compared to the square footage as of July 1, 2023, “value of improvements” is the assessed value of improvements for the first property tax assessment year in which the assessment roll reflects the physical or land changes or would reflect the changes were the property not assessed by the Oregon Department of Revenue.
C. Notwithstanding Subsections 6.06.200 A. and B., if the Multnomah County Assessor in accord with ORS 307.340 has cancelled the property tax assessment on a business property building, structure, or addition for the property tax assessment year beginning on July 1st immediately preceding the commencement of a license year, then:
1. 1. For purposes of determining the license fee for the license year, the value of improvements and improvements square footage attributable to the business property building, structure, or addition will be deemed to be zero; and
2. 2. If prior to completion of the license year, Portland Permitting & Development issues an authorization to occupy the building, structure, or addition as to which the property tax assessment was cancelled, then the license fee payable for the license year will be adjusted. For purposes of adjustment, value of improvements will be measured as set out in set out in Subsection 6.06.200 B. and improvements square footage will be measured as of the date of the authorization. The adjusted license fee will be the amount determined under Subsection 6.06.200 A. multiplied by a fraction, the numerator of which is the number of whole months after the date of the authorization remaining in the license year and the denominator of which is 12. For purposes of this Subsection, the date of the authorization will be the date Portland Permitting & Development issues a written authorization to occupy all new improvements on the business property or the date 180 days after Portland Permitting & Development issues a written authorization to occupy some but not all new improvements on the property is issued, whichever occurs first.

6.06.210 Clean & Safe District Fee Rates for Engaging in Residential Property Management Activity.

(Replaced by Ordinance 191960, effective October 1, 2025.)

A. The fee established by this Chapter for management of residential property in the Clean & Safe District for a license year, other than affordable residential rental property as defined in Section 6.06.211, will be the sum of the following amounts, computed separately in relation to each property within the District as to which the licensee is engaged in property management activity:
1. 1. 97 cents per $1,000 of value of improvements, measured as set out in Subsection B. of this Section.
2. 2. Plus $5.52 per 290 square feet of improvements as of the July 1st immediately preceding commencement of the license fee year.
3. 3. Plus 1.9 cents per square foot of land as of the July 1st immediately preceding commencement of the license fee year.
4. 4. Plus 18percent of the amounts determined under Subsections A.1. through 3.
5. 5. Plus the total of the amounts determined under Subsections 6.06.210_A.1. through 4. multiplied by the CPI-W factor, for license fee years commencing on or after October 1, 2025.
6. 6. For condominiums, the fee attributable to each unit that qualifies as residential property shall not exceed $200.
7. 7. For residential property that is not part of a condominium and not exempt, the amount determined under Subsections 6.06.210 A.1. through A.5. shall be subject to a cap of $200 per dwelling unit.
B. “Value of improvements” under this Section will be measured as follows:
1. 1. For residential property as to which, on or after July 1, 2023, there have been no physical changes resulting in an increase or decrease in square footage of improvements nor the establishment, cancellation, merger, or other change to real property parcels that resulted in a change in land square footage as compared to the square footage as of July 1, 2023, “value of improvements” is the assessed value of improvements for the 2023-24 property tax assessment year.
2. 2. For residential property as to which, on or after July 1, 2023, there have been physical changes resulting in an increase or decrease in square footage of improvements or the establishment, cancellation, merger, or other change to real property parcels that resulted in a change in land square footage as compared to the square footage as of July 1, 2023, “value of improvements” is the assessed value of improvements for the first property tax assessment year in which the assessment roll reflects the physical or land changes or would reflect the changes were the property not assessed by the Oregon Department of Revenue.
C. Notwithstanding Subsections 6.06.210 A. and B., if the Multnomah County Assessor in accord with ORS 307.340 has cancelled the property tax assessment on a residential property building, structure, or addition subject to this Section, for the property tax assessment year beginning on July 1st immediately preceding the commencement of a license year, then:
1. 1. For purposes of determining the license fee for the license year, the value of improvements and improvement square footage attributable to the building, structure, or addition will be deemed to be zero; and
2. 2. If prior to completion of the license year, Portland Permitting & Development issues an authorization to occupy new residential improvements on the property, then the license fee payable for the license year will be adjusted. For purposes of adjustment, value of improvements will be measured as set out in set out in Subsection 6.06.210 B., and improvements square footage will be measured as of the date of the authorization. The adjusted license fee will be the amount determined under Subsection 6.06.210 A. multiplied by a fraction, the numerator of which is the number of whole months after the date of the authorization remaining in the license year and the denominator of which is 12. For purposes of this Subsection, the date of the authorization will be the date Portland Permitting & Development issues a written authorization to occupy all new improvements on the business property or the date 180 days after a written authorization to occupy some but not all new residential improvements on the property is issued, whichever occurs first.

6.06.211 Clean & Safe District Fee Rates for Engaging in Affordable Residential Rental Property Management Activity.

(Replaced by Ordinance 191960, effective October 1, 2025.)

A. The fee established by this Chapter for management of affordable residential rental property in the Clean & Safe District for a license year will be the sum of the following amounts, computed separately in relation to each residential property within the District as to which the licensee is engaged in property management activity:
1. 1. If the licensee is a not-for-profit corporation or a government entity, $26.50 multiplied by the number of affordable residential dwelling units managed by the licensee in License Years 2025-2026 through 2029-2030, increasing to $33.00 per unit beginning in License Year 2030-2031.
2. 2. If the licensee is other than a not-for-profit corporation, $58 multiplied by the number of affordable residential dwelling units managed by the licensee in License Years 2025-2026 through 2029-2030, increasing to $72 per unit beginning in License Year 2030-2031.
B. For purposes of this Section, affordable residential rental property means single room occupancy housing, as defined in Chapter 33.910 of this Code; low-income housing; and subsidized housing. For purposes of this Subsection, low-income housing is dwelling units available for rent at rates that are considered affordable, under federal affordability standards in effect on the July 1st immediately preceding commencement of the license year, to persons earning 60 percent or less of the Portland region median income as identified in the records of Metro as of that July 1st. For purposes of this Subsection, subsidized housing is housing units available for rent at below market rates because either the units qualify for federal income tax benefits under Section 42 of the Internal Revenue Code; or the units are subsidized through United States Department of Housing and Community Development Section 8 subsidies or other public or private organization subsidies. Subsidized housing includes but is not limited to student housing owned by the Oregon State System of Higher Education and housing owned by non-profit organizations that is subsidized through charitable contributions and grants.
C. For purposes of this Section, dwelling units means dwelling units as defined in Chapter 33.910 of this Code.

6.06.212 Clean & Safe District Exempt Property.

The Clean & Safe District property management license requirements will not apply to exempt property. For purposes of this Section, “exempt property” means exempt property as defined in Subsection 6.06.020. I. and also means exempt residential property. “Exempt residential property” means a dwelling unit as defined in Chapter 33.910 of this Code that is owner-occupied and has its own separate water service.

6.06.213 Computation of Clean & Safe District License Fee for Management of Mixed-Use Properties.

In computing Clean & Safe District property management license fees under Sections 6.06.200, 6.06.210, and 6.06.211, in relation to property within the District as to which the licensee is engaged in property management activity, where the property is a combination of any two or more of business property that is subject to Section 6.06.200, residential property that is subject to Section 6.06.210, residential property that is subject to Section 6.06.211, exempt property that is subject to Section 6.06.212, or property managed by a person generally exempt under Section 6.06.050 but where the exemption does not apply in relation to part of the property the person manages, the fee in relation to property management activity will be the sum of the following:

A. For management of the part of the property that is business property subject to Section 6.06.200, the fee computed under Section 6.06.200 computed as though the entire property were the business property, multiplied by a fraction, the numerator of which is the square footage of business property improvements on the property subject to Section 6.06.200 and the denominator of which is the square footage of all improvements on the property.
B. For management of the part of the property that is residential property subject to Section 6.06.210, the fee computed under Section 6.06.210 computed as though the entire property were the residential property, multiplied by a fraction, the numerator of which is the square footage of residential property improvements on the property subject to Section 6.06.210, and the denominator of which is the square footage of all improvements on the property.
C. For management of the part of the property that is residential property subject to Section 6.06.211, the fee computed under Section 6.06.211.
D. If there are common area improvements in a property subject to this Section, then in computing square footage of business property improvements subject to Subsection 6.06.213 A. and of residential property improvements subject to Subsection 6.06.213 B., the square footage will be deemed to include an allocated portion of the common area improvements. The allocated portion of common area improvements will be determined by multiplying the square footage of common area improvements by a fraction, the numerator of which is the square footage of business property improvements subject to Subsection 6.06.213 A. or the square footage of residential property improvements subject to Subsection 6.06.213 B., whichever is appropriate, and the denominator of which is the square footage of all improvements on the property less the square footage of the common area improvements.

6.06.215 Pledging of Clean & Safe District License Fee Revenues.

A. In addition to the uses of District revenues set out in Section 6.06.010, the City, if so requested in writing by a qualified contractor and approved by the Council, may pledge Clean & Safe District license fee revenues as security for City debt incurred to finance the design, acquisition, construction, and installation of improvements within the District and may pledge Clean & Safe District license fee revenues to a qualified contractor or its designee in order that the contractor or designee may have revenues sufficiently ensured to enable the contractor or designee to incur debt to finance the design, acquisition, construction, installation, operation and maintenance of improvements within the District. Any pledge of Clean & Safe District license fee revenues will be subject to any limitations set out in Oregon law or in the Charter. In addition, no City pledge or combination of pledges under this Section for City payment of actual debt service or to enable the qualified contractor or its designee to make payments of actual debt service, but not including pledges to provide excess coverage for City payment of actual debt service or to enable the qualified contractor or its designee to provide excess coverage for payments of actual debt service, at any time will exceed one-third of the Clean & Safe District license fee revenues.
B. In making a request under Subsection A. of this Section, the qualified contractor will submit to the City a description of the improvements to be funded in whole or in part with the proceeds of the debt financing. The request also will include a description of any previously provided Clean & Safe District services proposed to be reduced or not provided due to the pledge of the District license fee revenues.
C. Notwithstanding Section 6.06.010, if the City pledges District license fee revenues for City debt incurred in accord with this Section, the City will retain the pledged portion of the District license fee revenues, to be used for repayment of the debt.

6.06.216 Lighting and District Amenities Revenues and Program.

(Replaced by Ordinance 191960, effective October 1, 2025.)

A. As used in this Chapter, lighting revenues means that portion of Clean & Safe District revenues collected under Subsection 6.06.200 A.4. as adjusted each year under Subsection 6.06.200 A.5.
B. As used in this Chapter, lighting program means the design, acquisition, construction, installation, operation, and maintenance of all components, including but not limited to electrical connections and decorative lighting fixtures, necessary for a seasonal and decorative lighting system within portions of the District.
C. As used in this Chapter, district amenities revenue means that portion of Clean & Safe District revenues collected under Subsection 6.06.200 A.4. as adjusted each year under Subsection 6.06.200 A.5. in excess of amounts necessary to fund the lighting program in a given year.
D. As used in this Chapter, district amenities program means the design, acquisition, construction, installation, operation, and maintenance of all components of amenities that improve the safety, function, and appearance of downtown sidewalks including but not limited to:
1. 1. Trash receptacles, including solar trash compactors.
2. 2. Co-located publication boxes.
E. Notwithstanding Section 6.06.010, lighting revenues and district amenities revenues will be used only:
1. 1. For the lighting program and district amenities program as set forth above, including but not limited to the pledging of the revenue as provided under Section 6.06.215;
2. 2. For a proportionate share of the Division’s costs of administration of the license fee directed by the Council to be recovered from license fee revenues, based on the ratio of lighting revenue and district amenities revenues to total District revenues; or
3. 3. If a qualified contractor determines that lighting revenue and district amenities revenues in a license year will exceed or have exceeded the costs and expenses of the lighting program and the district amenities program in that license year and that the excess revenues will not be needed to fund a prudent reserve or for the costs and expenses of the lighting program and district amenities program in future license years, then the excess can be used to fund any item(s) in Section 6.06.010.

6.06.220 Clean & Safe District Periodic Sunset Review.

Unless another length of term has been identified, the Council will conduct a public hearing or hearings prior to July 1st of the tenth year and every tenth year thereafter to determine whether the Clean & Safe District property management license fee should be continued or terminated on the September 30th that immediately follows. The City will mail notice of the hearing to the then current Clean & Safe District licensees under this Chapter. The Council will authorize or reauthorize the fee by ordinance. If the fee is not reauthorized, the District will be deemed sunset, and no further Council action is required.

6.06.230 Clean & Safe District Early Termination.

If the Council, on or before March 30th of any license fee year, receives written objections signed in that license fee year by licensees responsible for more than 33 percent of the total revenues generated from the Clean & Safe District property management license fee during that year, then the license fee for the Clean & Safe District will be terminated as of September 30th of that license fee year except that the fee will continue, at a rate reduced equally proportionally as to each licensee, to the extent necessary to meet any City pledge obligations incurred as authorized by Section 6.06.215.

6.06.240 Request Annual CPI Increase to be Different than Calculated.

(Replaced by Ordinance 191960, effective October 1, 2025.)

A. The contractor’s board of directors may recommend that the annual CPI adjustment be set to an amount other than the CPI calculation, but not less than zero for a license year.
1. 1. The board must pass a resolution during a regular board meeting and submit the resolution, any minutes from the meeting and the results of the vote to the Revenue Division no later than June 10th. The resolution must contain the following information:
  1. a. The reason why the board is requesting the annual CPI adjustment to be set at a rate that is different than calculated.
  2. b. What the CPI adjustment amount for the license year should be.
  3. c. The impact on the upcoming budget that will result if a different CPI adjustment is made, specifically as it relates to contract employee wages and contract service levels.
  4. d. The impact to District services.
2. 2. The Revenue Division will review the information from the contractor's board of directors and evaluate impacts to contract employee wages to ensure wages for these employees do not decrease inappropriately as a result of a lower CPI adjustment. The Revenue Division will make a recommendation to the Council if a different CPI adjustment is warranted for the upcoming license year.
3. 3. The Council must approve a different CPI adjustment prior to August 1st.
4. 4. An approved different CPI adjustment will apply to the license year that begins on October 1st.
B. Once one or more different CPI adjustments have been approved by the Council, the Revenue Division has authority to adjust the CPI component in the fee rate formulas in Subsections 6.06.200 A.5., and 6.06.210 A.4. The Revenue Division will document via written policy all changes to the CPI calculation as a result of the Council’s approval and this policy will supersede the calculation defined in Subsection 6.06.020 E.

6.06.241 Clean & Safe District Periodic Value of Improvements Review.

A. Prior to January 1st of the license year commencing October 1, 2035 and each tenth year thereafter, the Division will determine whether Assessed Value of Improvements, as defined in Section 6.06.020 A., is readily available from the Multnomah County Office of Assessment and Taxation for the property tax year referenced in Subsections 6.06.200 B. and 6.06.210 B. and is expected to remain so for the next ten license years.
B. If the Assessed Value of Improvements are, or expected to be, no longer readily available, then prior to March 1st immediately following the January 1st referenced in Subsection 6.06.241 A., the Division will provide to the contractor’s board of directors a forecast of District revenues for the upcoming license year using Assessed Value of Improvements from a property tax assessment year for which data is expected to be readily available for the following ten license years.
C. Prior to May 1st immediately following the March 1st referenced in Subsection B. of this Section, the Division will make a recommendation to Council to amend the dates in Subsections 6.06.200 B. and 6.06.210 B. in agreement with the revenue forecast developed in Subsection 6.06.241 B. The recommendation will include amending the denominator for the CPI-W adjustment factor referenced in Subsection 6.06.020 E. to that of the amended property tax assessment year.

6.06.250 Lloyd District.

The Lloyd District is that area within the boundaries formed by the Willamette River, from the Broadway Bridge to the point just south of the Oregon Convention Center at which NE Lloyd Blvd reaches the River; NE Lloyd Blvd, from the Willamette River to NE 16th Ave; NE 16th Ave curving into NE 15th Ave, from NE Lloyd Blvd to NE Halsey St; NE Halsey St, from NE 15th Ave to NE Grand Ave; NE Grand Ave, from NE Halsey St to NE Broadway; and NE Broadway, from NE Grand Ave to the Willamette River.

6.06.260 Lloyd Business District Fee Rates for Engaging in Property Management Activity.

A. Except as set out in Subsection 6.06.260 B., the fee established by this Chapter for management of business and residential property in the Lloyd District for a license year will be the sum of the following amounts, computed separately in relation to each property within the District as to which the licensee is engaged in property management activity:
1. 1. 40 cents per $1,000 of assessed value of improvements for the 2010-2011 property tax assessment year.
2. 2. Plus $2.25 per 290 square feet of improvements as of July 1, 2010.
3. 3. Plus $.015 (cents) per square foot of land as of July 1, 2010.
4. 4. Plus the total of the amounts determined under Subsections 6.06.260 A.1. through A.3. multiplied by a 2.3 percent annual escalator for license years commencing on or after February 1, 2015.
B. In relation to business and residential property other than exempt residential property where physical changes to the property on or after July 1, 2010 have resulted in an increase or decrease in square footage of improvements, as compared to the square footage as of July 1, 2010, the fee established by this Chapter, for management of the property in the Lloyd District in a license year, will be as provided in this Subsection:
1. 1. During the period between the date Portland Permitting & Development issues an authorization, documentable by written documentation, to occupy the improvements, or during the period between 180 days after the date Portland Permitting & Development issues an authorization to occupy any portion of the improvements that was not occupied while the physical changes were being made, and the date of beginning of the license year following the first property tax assessment year in which the assessment roll reflects the physical changes, the fee otherwise payable during the period will be adjusted to the following amount, prorated based on the number of days of the period in the applicable license year:
  1. a. The amount determined under Subsection 6.06.260 A.1., plus 40 cents per $1,000 of the cost of the physical changes, as determined from Portland Permitting & Development records of all building permits issued authorizing or in association with the physical changes.
  2. b. Plus the amount determined under Subsection 6.06.260 A.2., plus $2.25 per 290 additional square feet of improvements, resulting from the physical changes, as determined from Portland Permitting & Development records of building permits issued authorizing or in association with the physical changes.
  3. c. Plus the amount determined under Subsection 6.06.260 A.3.
2. 2. Beginning with the license year following the first property tax assessment year in which the assessment roll reflects the physical changes, the fee will be:
  1. a. 40 cents per $1,000 of assessed value of improvements for the first property tax assessment year in which the assessment roll reflects the physical changes or would reflect the changes were the property not assessed by the Oregon Department of Revenue.
  2. b. Plus $2.25 per 290 square feet of improvements, as of July 1st of the first property tax assessment year in which the assessment roll reflects the physical changes or would reflect the changes were the property not assessed by the Oregon Department of Revenue.
  3. c. Plus the amount set out in Subsection 6.06.260 A.3.
  4. d. Plus the total of the amounts determined under Subsections 6.06.260 B.2.a. through B.2.c. multiplied by a 2.3 percent annual escalator for the license years commencing on or after February 1, 2015.
C. In computing the fee as provided in Subsection 6.06.260 A. or B.:
1. 1. In relation to real property within the Lloyd District as to which a licensee is engaged in property management activity, where the property in part is exempt residential property or religious organization property or,
2. 2. In relation to persons generally exempt from the license requirements of this Chapter under Section 6.06.050 but where the exemption does not apply to property management activity in relation to part of the property they manage, the fee in relation to property management activity as to the real property will be the fee computed as though management of the entire property were subject to the fee multiplied by a fraction, the numerator of which is the square footage of the area in which the licensee is engaged in property management activity subject to the fee (including land or improvements, as applicable) and the denominator of which is the square footage of the entire real property parcel (including land or improvements, as applicable).
3. 3. In relation to property within the District as to which there is more than one property manager for a given property, the fee for each property manager will be calculated as follows:
  1. a. Each property manager’s fee will first be computed as though the property manager was subject to the fee for the entire property. That amount will then be multiplied by a fraction, the numerator of which is the square footage of the area for which the property manager is engaged in property management activity subject to the fee (including land or improvements, as applicable), and the denominator of which is the square footage of the entire real property parcel (including land or improvements, as applicable); and
  2. b. If there are common area improvements in a property subject to Subsection a. above, then in computing square footage of each property manager’s improvements, the square footage will be deemed to include an allocated portion of the common area improvements. The allocated portion of common area improvements will be determined by multiplying the square footage of common are improvements by a fraction, the numerator of which is the square footage of the property improvements subject to this fee for each district manager, and the denominator of which is the square footage of all improvements on the property less the square footage of the common area improvements.
D. Notwithstanding the amount of the fee computed under Subsections 6.06.260 A., B., and C., in no case will the fee payable by a licensee, in relation to all real property within the Lloyd District as to which the licensee is engaged in property management activity, exceed $35,000 for nonresidential zoned property and $8,500 for nonexempt residential zoned property.
E. The Lloyd District license requirements will not apply to exempt property. For purposes of this Section, “exempt property” means exempt property as defined in Subsection 6.06.020 I. and also means exempt residential property. For purposes of this Section, “exempt residential property” means a dwelling unit as defined in Chapter 33.910 of this Code that is owner-occupied and has its own separate water service; single room occupancy housing, as defined in Chapter 33.910 of this Code; low-income housing; and subsidized housing. For purposes of this Subsection, low-income housing is dwelling units available for rent at rates that are considered affordable, under federal affordability standards in effect on July 1, 1997, to persons earning 60 percent or less of the Portland region median income as identified in the records of Metro as of July 1st of each year. For purposes of this Subsection, subsidized housing is housing units available for rent at below market rates because either the units qualify for federal income tax benefits under Section 42 of the Internal Revenue Code, as in effect on January 1, 1997; or the units are subsidized through United States Department of Housing and Community Development Section 8 subsidies, as in effect on January 1, 1997, or other public or private organization subsidies. Subsidized housing includes but is not limited to student housing owned by the Oregon State System of Higher Education and housing owned by non-profit organizations that is subsidized through charitable contributions and grants.
F. For purposes of this Section only, the terms "square feet of improvements" and "square footage of improvements" will not include:
1. 1. Surface and structured parking lot area;
2. 2. Landscaped area;
3. 3. Unenclosed sidewalk, plaza, and courtyard area; and
4. 4. Below grade area unless improved for occupancy by employees or tenants.

6.06.270 Revisions to License Fee Year Schedule.

Notwithstanding that Sections 6.06.010 through 6.06.180 are based on a license fee year of October 1st through September 30th, the license fee year for the Lloyd District will be February 1st through January 31st, with the first license fee year to commence February 1, 2001. Therefore, the due dates set out in Sections 6.06.010 through 6.06.180, for purposes of the Lloyd District, will be February 15th and September 15th except that the August 1st date set out in Section 6.06.090 will be January 5th. Any other dates are also changed to provide at least 30 days’ notice before a due date and may be clarified by the Revenue Division in a written policy.

6.06.280 Lloyd District Periodic Sunset Review.

During 2013 and each tenth year thereafter, the Council will conduct a public hearing or hearings to determine whether the Lloyd District property management license fee should be terminated. Prior to the first hearing in 2013 and in each tenth year thereafter, the City will mail notice of the hearing to the then current Lloyd District licensees under this Chapter.

6.06.290 Lloyd District Early Termination.

If the Council, on or before July 31st of any license fee year, receives written objections signed in that license fee year by licensees responsible for more than 33 percent of the total revenues generated from the Lloyd District property management license fee during that year, then the license fee for the Lloyd District will be terminated as of January 31st of that license fee year.

6.06.300 Request That Annual Lloyd District Escalator Be Lowered.

A. The Lloyd District contractor’s board of directors may recommend that the annual 2.3 percent escalator adjustment be set to an amount lower than 2.3 percent for a particular license year.
1. 1. The board must pass a resolution during a regular board meeting and submit the resolution, any minutes from the meeting and the results of the vote to the Revenue Division no later than October 10th. The resolution must contain the following information:
  1. a. The reason why the board is requesting the annual escalator adjustment be set at a rate that is lower than 2.3 percent.
  2. b. What the board recommends as the appropriate escalator amount for the license year.
  3. c. The impact on the upcoming budget that will result if a lower escalator adjustment is made, specifically as it relates to contract employee wages and contract service levels.
  4. d. The impact to District services.
2. 2. The Revenue Division will review the information from the Lloyd District contractor’s board of directors and evaluate impacts to contract employee wages to ensure wages for these employees do not decrease inappropriately as a result of a lower escalator adjustment. The Revenue Division will make a recommendation to the Council if a lower escalator adjustment is warranted for the upcoming license year.
3. 3. The Council must approve a lower escalator adjustment prior to December 1st.
4. 4. An approved lower escalator adjustment will apply to the next license year that begins on February 1st.
B. The Council’s approval to decrease the annual escalator for any given year has no effect on future years, and the District contractor’s board must follow the process outlined in Subsection 6.06.300 A.1 for each year it wishes to recommend a rate lower than the prescribed 2.3 percent escalator.

6.06.310 Central Eastside Industrial District.

A. The Central Eastside Industrial District is that area within the boundaries formed by:
1. 1. Northern Boundary: The south side of I-84 between the Willamette River and east side of SE 12^th Ave;
2. 2. Southern Boundary: SE Division Pl, north side between I-99 and Willamette River; SE Division Str, including the properties on the south side between SE Grand and SE 10th Ave; both sides between SE 10th and SE 12th Ave; and SE Hawthorne Blvd, including the properties on the south side between SE 10th and SE 11th Ave, and north side between SE 11th and SE 12th Ave;
3. 3. Eastern Boundary: SE 10th Ave, west side between SE Hawthorne Blvd and SE Division St; SE 12th Ave, west side between I-84 and SE Stark St; including the properties on the east side between SE Stark St and SE Hawthorne Blvd; I-99, west side between SE Division Pl and SE Division St; and
4. 4. Western Boundary: Willamette River, between I-84 and north side of SE Division Pl.
B. The District will also include the properties immediately on both sides of SE Division St between SE 10th and SE 12th Ave and the area within the west side of SE 12th Ave between SE Division St and SE Ivon St.
C. The District will also include the property at 1401 SE Morrison St.

6.06.320 Central Eastside Industrial District Fee Rates for Engaging in Property Management Activity.

A. Except as set out in Subsection 6.06.320 B, the fee established by this Chapter for management of business and residential property in the Central Eastside Industrial District for a license year will be the sum of the following amounts, computed separately in relation to each property within the District as to which the licensee is engaged in property management activity:
1. 1. 45 cents per $1,000 of assessed value of improvements as of July 1, 2017.
2. 2. Plus $3.50 per 290 square feet of improvements less parking structures(s) as of July 1 2017.
3. 3. Plus 2 cents per square foot of land as of July 1, 2017.
4. 4. Plus the total of the amounts determined under Subsections 6.06.320 A.1. through A.3. multiplied by a 2.3 percent annual escalator for license years commencing on or after July 1, 2020.
B. In relation to business and residential property other than exempt residential property where physical changes to the property on or after July 1, 2017 have resulted in an increase or decrease in square footage of improvements, as compared to the square footage as of July 1, 2017, the fee established by this Chapter, for management of the property in the Central Eastside Industrial District in a license year, will be as provided in this Subsection:
1. 1. During the period between the date Portland Permitting & Development issues an authorization, documentable by written documentation, to occupy the improvements, or during the period between 180 days after the date Portland Permitting & Development issues an authorization to occupy any portion of the improvements that was not occupied while the physical changes were being made, and the date of beginning of the license year following the first property tax assessment year in which the assessment roll reflects the physical changes, the fee otherwise payable during the period will be adjusted to the following amount, prorated based on the number of days of the period in the applicable license year:
  1. a. The amount determined under Subsection 6.06.320 A.1., plus 45 cents per $1,000 of the cost of the physical changes, as determined from Portland Permitting & Development records of all building permits issued authorizing or in association with the physical changes.
  2. b. Plus the amount determined under Subsection 6.06.320 A.2., plus $3.50 per 290 additional square feet of improvements, resulting from the physical changes, as determined from Portland Permitting & Development records of building permits issued authorizing or in association with the physical changes.
  3. c. Plus the amount determined under Subsection 6.06.320 A.3.
2. 2. Beginning with the license year following the first property tax assessment year in which the assessment roll reflects the physical changes, the fee will be:
  1. a. 45 cents per $1,000 of assessed value of improvements for the first property tax assessment year in which the assessment roll reflects the physical changes or would reflect the changes were the property not assessed by the Oregon Department of Revenue.
  2. b. Plus $3.50 per 290 square feet of improvements, as of July 1st of the first property tax assessment year in which the assessment roll reflects the physical changes or would reflect the changes were the property not assessed by the Oregon Department of Revenue.
  3. c. Plus the amount set out in Subsection 6.06.320 A.3.
  4. d. Plus the total of the amounts determined under Subsections 6.06.320 B.2.a. through B.2.c. multiplied by a 2.3 percent annual escalator for the license years commencing on or after July 1, 2020.
C. In computing the fee as provided in Subsection 6.06.320 A. or B.:
1. 1. In relation to real property within the Central Eastside Industrial District as to which a licensee is engaged in property management activity, where the property in part is exempt residential property or religious organization property or,
2. 2. In relation to persons generally exempt from the license requirements of this Chapter under Section 6.06.050 but where the exemption does not apply to property management activity in relation to part of the property they manage, the fee in relation to property management activity as to the real property will be the fee computed as though management of the entire property were subject to the fee multiplied by a fraction, the numerator of which is the square footage of the area in which the licensee is engaged in property management activity subject to the fee (including land or improvements, as applicable) and the denominator of which is the square footage of the entire real property parcel (including land or improvements, as applicable).
3. 3. In relation to property within the District as to which there is more than one property manager for a given property, the fee for each property manager will be calculated as follows:
  1. a. Each property manager’s fee will first be computed as though the property manager was subject to the fee for the entire property. That amount will then be multiplied by a fraction, the numerator of which is the square footage of the area for which the property manager is engaged in property management activity subject to the fee (including land or improvements, as applicable), and the denominator of which is the square footage of the entire real property parcel (including land or improvements, as applicable); and
  2. b. If there are common area improvements in a property subject to Subsection 6.06.320 C.3.a, then in computing square footage of each property manager’s improvements, the square footage will be deemed to include an allocated portion of the common area improvements. The allocated portion of common area improvements will be determined by multiplying the square footage of common are improvements by a fraction, the numerator of which is the square footage of the property improvements subject to this fee for each district manager, and the denominator of which is the square footage of all improvements on the property less the square footage of the common area improvements.
D. The Central Eastside Industrial District license requirements will not apply to exempt property. For purposes of this Section, “exempt property” means exempt property as defined in Subsection 6.06.020 I. and also means exempt residential property. For purposes of this Section, “exempt residential property” means a dwelling unit as defined in Chapter 33.910 of this Code that is owner-occupied and has its own separate water service.
E. The Central Eastside Industrial District license fee requirement will be reduced by 50 percent per license year for non-profit organizations organized under section 501 of the U.S. Tax Code.
F. The Central Eastside Industrial District license fee requirement will be reduced by 50 percent per license year for low-income housing. For purposes of this Subsection, low-income housing is dwelling units available for rent at rates that are considered affordable, under federal affordability standards in effect on July 1, 1997, to persons earning 60 percent or less of the Portland region median income as identified in the records of Metro as of July 1st of each year.
G. For purposes of this Section 6.06.320 only, the terms "square feet of improvements" and "square footage of improvements" will not include:
1. 1. Surface and structured parking lot area;
2. 2. Landscaped area;
3. 3. Unenclosed sidewalk, plaza, and courtyard area; and
4. 4. Below grade area unless improved for occupancy by employees or tenants.

6.06.330 Revisions to License Fee Year Schedule.

Notwithstanding that Sections 6.06.010 through 6.06.180 are based on a license fee year of October 1st, through September 30th, the license fee year for the Central Eastside Industrial District will be July 1st, through June 30th, with the first license fee year to commence July 1, 2019. Therefore, the due dates set out in Sections 6.06.010 through 6.06.180, for purposes of the Central Eastside Industrial District, will be July 1st and February 1st except that the August 1st date set out in Section 6.06.090 will be May 1st. Any other dates are also changed to provide at least 30 days’ notice before a due date and may be clarified by the Revenue Division in a written policy.

6.06.340 Central Eastside Industrial District Periodic Sunset Review.

During the license year ending 2022 and each tenth year thereafter, the Council will conduct a public hearing or hearings to determine whether the Central Eastside Industrial District property management license fee should be terminated. Prior to the first hearing in the license year ending 2022 and in each tenth year thereafter, the City will mail notice of the hearing to the then current Central Eastside Industrial District licensees under this Chapter.

6.06.350 Central Eastside Industrial District Early Termination.

If the Council, on or before June 30th, of any license fee year, receives written objections signed in that license fee year by licensees responsible for more than 33 percent of the total revenues generated from the Central Eastside Industrial District property management license fee during that year, then the license fee for the Central Eastside Industrial District will be terminated as of June 30th of that license fee year.

6.06.360 Request That Annual Central Eastside Industrial District Escalator Be Lowered.

A. The Central Eastside Industrial District contractor’s board of directors may recommend that the annual 2.3 percent escalator adjustment be set to an amount lower than 2.3 percent for a particular license year.
1. 1. The board must pass a resolution during a regular board meeting and submit the resolution, any minutes from the meeting and the results of the vote to the Revenue Division no later than March 10th. The resolution must contain the following information:
  1. a. The reason why the board is requesting the annual escalator adjustment be set at a rate that is lower than 2.3 percent;
  2. b. What the board recommends as the appropriate escalator amount for the license year;
  3. c. The impact on the upcoming budget that will result if a lower escalator adjustment is made, specifically as it relates to contract employee wages and contract service levels; and
  4. d. The impact to District services.
2. 2. The Revenue Division will review the information from the Central Eastside Industrial District contractor’s board of directors and evaluate impacts to contract employee wages to ensure wages for these employees do not decrease inappropriately as a result of a lower escalator adjustment. The Revenue Division will make a recommendation to the Council if a lower escalator adjustment is warranted for the upcoming license year.
3. 3. The Council must approve a lower escalator adjustment prior to April 1st.
4. 4. An approved lower escalator adjustment will apply to the next license year that begins on July 1st.
B. The Council’s approval to decrease the annual escalator for any given year has no effect on future years, and the District contractor’s board must follow the process outlined in Subsection A.1. of this Section for each year it wishes to recommend a rate lower than the prescribed 2.3 percent escalator

Chapter 6.07 Tax on Recreational Marijuana Sales

(Chapter added by Ordinance 186857; amended by Resolution 37217 (approved at November 8, 2016 election); effective November 8, 2016.)

6.07.010 Purpose.

(Amended by Resolution 37217 (approved at November 8, 2016 election); amended by Ordinance 191957, effective January 1, 2025.)

For the purposes of this Chapter, every person who sells recreational marijuana, or recreational marijuana-infused products, to consumers within Portland is exercising a taxable privilege. The purpose of this Chapter is to impose a tax upon recreational marijuana and recreational marijuana-infused product sales to consumers within Portland.

6.07.020 Definitions.

(Amended by Resolution 37217 (approved at November 8, 2016 election); amended by Ordinance 191957, effective January 1, 2025.)

When not clearly otherwise indicated by the context, the following words and phrases as used in this Chapter have the following meanings:
A. Director means the City Administrator or their designee who carries out the work of the revenue service and program of the City Administrator under Chapter 3.06 of this Code and which may be referred to as “Revenue Division” or “Division” for the purposes of this Chapter, and includes any person or entity with whom the City contracts to administer and enforce the Marijuana Tax program or a portion thereof.
B. Consumer means a person who purchases, acquires, owns, holds or uses marijuana other than for the purpose of resale.
C. Marijuana means the plant of the Cannabis family Cannabaceae, any part of the plant Cannabis family Cannabaceae and the seeds of the plant Cannabis family Cannabaceae. Marijuana includes cannabinoid products, cannabinoid concentrates and cannabinoid extracts as those terms are defined in ORS 475B.015. Marijuana does not include industrial hemp, as defined in ORS 571.300.
D. Oregon Medical Marijuana Program means the office within the Oregon Health Authority that administers the provisions of ORS 475B.400 to 475B.525, the Oregon Medical Marijuana Act, and all policies and procedures pertaining to it.
E. Person means a natural person, joint venture, joint stock company, partnership, association, club, company, corporation, business, trust, organization, or any group or combination acting as a unit, including the United States of America, the state and any political subdivision thereof, or the manager, lessee, agent, servant, officer or employee of any of them.
F. Retail sales price means the price paid for marijuana, excluding tax, to a seller by or on behalf of a consumer of marijuana.
G. Retail sale means any transfer, exchange, gift or barter of marijuana by a seller to a consumer.
H. Seller means any person who is required to be licensed or has been licensed under ORS 475B.110 to sell marijuana to a consumer within Portland.
I. Tax means either the tax payable by the seller or the aggregate amount of taxes due from a seller during the period for which the seller is required to report collections under this Chapter.
J. Taxpayer means any person obligated to account to the Director for taxes collected or to be collected, or from whom a tax is due, under the terms of this Chapter.

6.07.030 Levy of Tax.

(Amended by Resolution 37217 (approved at November 8, 2016 election); amended by Ordinance 191957, effective January 1, 2025.)

A. Every seller exercising the taxable privilege of retail sales of marijuana within Portland is subject to and must pay a tax for exercising that privilege.
B. The amount of tax levied is as follows: Three percent of the retail sales price paid to the seller in a retail sale of marijuana to any consumer.

6.07.035 Exemption of Medical Marijuana Cardholders from Marijuana Tax.

(Added by Resolution 37217 (approved at November 8, 2016 election); amended by Ordinance 191957, effective January 1, 2025.)

A. As used in this Section, “designated primary caregiver,” “registry identification card” and “registry identification cardholder” have the meanings given those terms in ORS 475B.410.
B. Notwithstanding Section 6.07.030:
1. 1. A tax is not imposed upon the retail sale of marijuana in the City by a seller to a registry identification cardholder or to a designated primary caregiver who is purchasing marijuana for a registry identification cardholder; and
2. 2. A seller may not collect the tax imposed under Section 6.07.030 from a consumer if, at the time at which the retail sale of the marijuana occurs, the consumer provides proof to the seller that the consumer:
  1. a. Holds a valid registry identification card under ORS 475B.415; or
  2. b. Holds a valid identification card under ORS 475B.415 (5)(b) and is purchasing the marijuana for a registry identification cardholder.

6.07.040 Deductions.

(Amended by Resolution 37217 (approved at November 8, 2016 election); amended by Ordinance 191957, effective January 1, 2025.)

The following deductions are allowed against sales received by the seller providing marijuana:
A. Refunds of sales actually returned to any consumer;
B. Any adjustments in sales that amount to a refund to a consumer, providing such adjustment pertains to the actual sale of marijuana and does not include any adjustments for other services furnished by a Seller.

6.07.050 Seller Responsible for Payment of Tax.

(Amended by Ordinances 188215 and 191957, effective January 1, 2025.)

A. Every seller must, on or before the last day of the month following the end of each calendar quarter (in the months of April, July, October and January) make a return to the Director, on forms provided by the Revenue Division or designee, specifying the total sales subject to this Chapter and the amount of tax collected under this Chapter. The seller may request, or the Director may establish, shorter reporting periods for any seller if the seller or Director deems it necessary in order to ensure collection of the tax. The Director may require further information in the return relevant to the payment of the tax. A return is not considered filed until it is actually received by the director.
B. The seller must remit to the Director the full amount of the tax collected for each month by the last day of the subsequent month. Payments must be remitted with forms provided by the Revenue Division or designee, specifying the total sales subject to this Chapter and the amount of tax collected under this Chapter. Payments received by the Director for application against existing liabilities will be credited toward the period designated by the Taxpayer under conditions that are not prejudicial to the interest of the City. A condition considered prejudicial is the imminent expiration of the statute of limitations for a period or periods.
C. The City will apply non-designated payments in the order of the oldest liability first, with the payment credited first toward any accrued penalty, then to interest, then to the underlying tax until the payment is exhausted. Crediting of a payment toward a specific reporting period will be first applied against any accrued penalty, then to interest, then to the underlying tax.
D. If the Director, in their sole discretion, determines that an alternative order of payment application would be in the best interest of the City in a particular tax or factual situation, the Director may order such a change. The Director also may require additional information in the return relevant to payment of the liability. When a shorter return period is required, penalties and interest will be computed according to the shorter return period. Returns and payments are due immediately upon cessation of business for any reason. Sellers must hold in trust all taxes collected pursuant to this Chapter on the City’s behalf until the seller makes payment to the Director. A separate trust bank account is not required in order to comply with this provision, unless the Director determines one necessary to ensure collection of the tax.
E. Every seller must keep and preserve in an accounting format established by the Director records of all sales made by the seller and such other books or accounts as the Director may require. Every seller must keep and preserve for a period of three years after the tax was due or paid, whichever is later, all such books, invoices and other records. The Director has the right to inspect all such records at all reasonable times.

6.07.060 Penalties and Interest.

(Amended by Resolution 37217 (approved at November 8, 2016 election); amended by Ordinances 188215, 189004, and 191957, effective January 1, 2025.)

A. Any seller who fails to remit any portion of any tax imposed by this Chapter within the time required must pay a penalty of five percent of the unpaid tax, in addition to the amount of the tax.
B. If any seller fails to file any return for a period in excess of one month after the return due date, there will be added to the amount of tax required to be shown on the return a failure to file penalty of 20 percent of the amount of the tax. Thereafter the Director or designee may send a notice and demand to the person to file a report or return within 30 days of the mailing of the notice. If after the notice and demand no report or return is filed within the 30 days, the Director or designee may determine the tax according to the best of its information and belief, assess the tax with appropriate penalty and interest plus an additional penalty of 25 percent of the tax deficiency determined by the department and give written notice of the determination and assessment to the person required to make the filing.
C. In addition to the penalties stated in Subsections 6.07.060 A. and 6.07.060 B., if tax returns are not filed by the due date for three consecutive years, a penalty of 100 percent of the unpaid tax will be assessed for each year.
D. If the Director determines that the nonpayment of any remittance due under this Chapter is due to fraud, a penalty of 25 percent of the entire amount of the tax will be added to it in addition to the penalties stated in Subsections 6.07.060 A., 6.07.060 B., and 6.07.060 C.
E. In addition to the penalties imposed, any seller who fails to remit any tax imposed by this Chapter must pay interest at the annual rate of five percent on the amount of unpaid tax from the date on which the remittance first became delinquent until paid. The interest rate will remain at five percent unless this rate is adjusted under the administrative authority of the Director or designee to reflect then current national market conditions for interest rates.
F. All sums collected, including penalty and interest, will be distributed to the City’s Recreational Cannabis Tax Fund.
G. Penalties for certain late tax payments may be waived or reduced pursuant to policies and processes adopted by the Director.

6.07.070 Failure to Report and Remit Tax – Determination of Tax by Director.

(Amended by Ordinances 188215 and 191957, effective January 1, 2025.)

A. If any seller fails to make any report of the tax required by this Chapter within the time provided in this Chapter, the Director may proceed to obtain facts and information on which to base the estimate of tax due. As soon as the Director procures such facts and information upon which to base the assessment of any tax imposed by this Chapter and payable by any seller, the Director may determine and assess against such seller the tax, interest and penalties provided for by this Chapter.
B. If the Director makes a determination as outlined in Subsection 6.07.070 A., the Director must give notice to the seller of the amount assessed. The notice must be personally served on the seller or deposited in the United States mail, postage prepaid, addressed to the seller at the last known place of address.
C. The seller may appeal the determination as provided in Section 6.07.080. If no appeal is timely filed, the Director's determination is final and the amount assessed is immediately due and payable.

6.07.080 Appeal.

(Amended by Ordinances 188215 and 191957, effective January 1, 2025.)

A. Any seller aggrieved by any decision of the Director with respect to the amount of the tax owed along with interest and penalties, if any, may appeal the decision to the Director or designee.
B. The seller must follow the administrative appeal process that is set forth by the Director or designee.

6.07.090 Credits/Refunds.

(Amended by Ordinances 188215 and 191957, effective January 1, 2025.)

A. The Director may credit to the seller any tax, interest or penalty amount under any of the following circumstances:
1. 1. The seller has overpaid the correct amount of tax, interest or penalty; or
2. 2. The seller has paid more than once for the correct amount owed; or
3. 3. The City has erroneously collected or received any tax, interest or penalties.
B. If the Director determines the claim is valid, the claimant may take as credit against taxes collected and remitted the amount that was overpaid, paid more than once, or erroneously received or collected by the City.
C. In cases where a there is no future filing to claim the credit or other circumstances where a credit amount should be refunded, the claimant may petition the director to have the credit amount refunded to the claimant.

6.07.100 Actions to Collect.

(Amended by Ordinance 191957, effective January 1, 2025.)

Any tax required to be paid by any seller under the provisions of this Chapter is a debt owed by the seller to the city. Any tax collected by a seller that has not been paid to the City is a debt owed by the seller to the City. Any person owing money to the City under the provisions of this Chapter is liable to an action brought in the name of the City for the recovery of the amount owing. In lieu of filing an action for the recovery, the City, when taxes due are more than 30 days delinquent, may submit any outstanding tax to a collection agency. So long as the City has complied with the provisions set forth in ORS 697.105, if the City turns over a delinquent tax account to a collection agency, it may add to the amount owing an amount equal to the collection agency fees.

6.07.110 Violation Infractions.

(Amended by Ordinance 191957, effective January 1, 2025.)

A. All violations of this Chapter are also subject to civil penalties of up to $2,000 per occurrence. It is a violation of this Chapter for any seller or other person to:
1. 1. Fail or refuse to comply as required herein;
2. 2. Fail or refuse to furnish any return required to be made;
3. 3. Fail or refuse to permit inspection of records;
4. 4. Fail or refuse to furnish a supplemental return or other data required by the director;
5. 5. Render a false or fraudulent return or claim; or
6. 6. Fail, refuse or neglect to remit the tax to the City by the due date.
B. The remedies provided by this Chapter are not exclusive and do not prevent the City from exercising any other remedy available under the law.
C. The remedies provided by this Section do not prohibit or restrict the City or other appropriate prosecutor from pursuing criminal charges under state law or city ordinance.

6.07.120 Confidentiality.

(Amended by Resolution 37217 (approved at November 8, 2016 election); effective November 8, 2016; amended by Ordinance 191957, effective January 1, 2025.)

Except as otherwise required by law, it is unlawful for the City, any officer, employee or agent to divulge, release or make known in any manner any financial information submitted or disclosed to the City under the terms of this Chapter. Nothing in this Section prohibits any of the following:
A. The disclosure of the names and addresses of any person who is operating a licensed establishment from which marijuana is sold or provided; or
B. The disclosure of general statistics in a form which would not reveal an individual seller’s financial information; or
C. Presentation of evidence to the court, or other tribunal having jurisdiction in the prosecution of any criminal or civil claim by the Director or an appeal from the Director for amounts due the city under this Chapter; or
D. The disclosure of information to a collection agency in order to collect any delinquent tax amount; or
E. The disclosure of records related to a business' failure to report and remit the tax when the report or tax is in arrears for over six months or when the tax exceeds $5,000. The Council expressly finds that the public interest in disclosure of such records clearly outweighs the interest in confidentiality under ORS 192.501(5).
F. The Revenue Division may also disclose and give access to information described in this Section to:
1. 1. The City Attorney, their assistants and employees, or other legal representatives of the City, to the extent the Revenue Division deems disclosure or access necessary for the performance of the duties of advising or representing the Revenue Division, including but not limited to instituting legal actions on unpaid accounts.
2. 2. Other employees, agents and officials of the City, to the extent the Revenue Division deems disclosure or access necessary for such employees, agents or officials to:
  1. a. Aid in any legal collection effort on unpaid accounts,
  2. b. Perform their duties under contracts or agreements between the Revenue Division and any other department, bureau, agency or subdivision of the City or state relating to the administration of this Chapter, or
  3. c. Aid in determining whether a Revenue Division account is in compliance with all City, state and federal laws or policies.

6.07.130 Audit of Books, Records or Persons.

(Amended by Ordinance 191957, effective January 1, 2025.)

The City may examine or may cause to be examined by an agent or representative designated by the City for that purpose, any books, papers, records, or memoranda, including copies of seller's state and federal income tax return, bearing upon the matter of the seller's tax return for the purpose of determining the correctness of any tax return, or for the purpose of an estimate of taxes due. All books, invoices, accounts and other records must be made available within the city limits and be open at any time during regular business hours for examination by the director or an authorized agent of the director. If any taxpayer refuses to voluntarily furnish any of the foregoing information when requested, the Director may immediately seek a subpoena from the court to require that the taxpayer or a representative of the taxpayer attend a hearing or produce any such books, accounts and records for examination.

6.07.140 Forms and Regulations.

(Amended by Resolution 37217 (approved at November 8, 2016 election) and Ordinances 188215 and 191957; effective January 1, 2025)

A. The City Administrator or designee may enter into contracts or agreements relating to the administration of this Chapter, including intergovernmental agreements with the State of Oregon as provided in ORS 305.620, and the City Administrator, as authorized by Charter, may prescribe forms and promulgate rules, policies and regulations to aid in the making of returns, the ascertainment, assessment and collection of the marijuana tax and to provide for:
1. 1. A form of report on sales and purchases to be supplied to all sellers;
2. 2. The records that sellers providing, mixing, serving, or handling marijuana and marijuana-infused products must keep concerning the tax imposed by this Chapter.
B. Notwithstanding any other provisions in this Chapter, the State of Oregon, if appointed as the designee, may apply the provisions of ORS 475B.700 to ORS 475B.755 in the administration of the Portland tax.

6.07.145 Net Revenues Distribution.

(Added by Resolution 37217 (approved at November 8, 2016 election); amended by Ordinances 189004 and 191957, effective January 1, 2025.)

Net revenues remaining after collection, refunds, credits, and costs related to administration of the tax will be distributed by the City as follows:
A. Allocation of revenue from the Recreational Cannabis Tax Fund will occur annually as part of the public budget adoption process followed by Council, with funding allocations made annually by City Council.
B. These funds will be allocated in the Adopted Budget for the following purposes:
1. 1. Drug and alcohol education and treatment programs, including but not limited to services that facilitate or increase access to drug and alcohol education and treatment, and programs that support rehabilitation and employment readiness.
2. 2. Public safety, including police, fire, and transportation safety purposes that protect community members from unsafe drivers. Examples include but are not limited to police DUII training and enforcement, support for firefighter paramedics, street infrastructure projects that improve safety, and other initiatives to reduce impacts of drug/alcohol abuse.
3. 3. Support for neighborhood small businesses, especially women-owned and minority-owned businesses, including but not limited to business incubator programs, management training, and job training opportunities; and providing economic opportunity and education to communities disproportionately-impacted by cannabis prohibition.

6.07.150 Invalidity.

(Amended by Ordinance 191957, effective January 1, 2025.)

If any section, clause, phrase, sentence or part of this Chapter is, for any reason, adjudged unconstitutional, invalid or unenforceable, only that part, clause, phrase, or section so declared will be void and the remainder will remain in full force and effect.

6.07.155 Effective Date.

(Added by Resolution 37217 (approved at November 8, 2016 election); effective November 8, 2016; amended by Ordinance 191957, effective January 1, 2025.)

This Chapter will be in full force and effect upon approval by the voters in the November 8, 2016, election. The tax levied in Section 6.07.030 will be imposed beginning on and after January 1, 2017. The Director is authorized to collect amounts receivable under this Chapter for taxes, interest and penalties.

Chapter 6.08 Construction Excise Tax

(Chapter added by Ordinance 187855, effective August 1, 2016.)

6.08.010 Purpose.

(Amended by Ordinance 191957, effective January 1, 2025.)

This Chapter establishes a Construction Excise Tax on commercial and residential improvements to provide funding for affordable housing in the City. Chapter 6.08 of the City Code is known as the Construction Excise Tax.

6.08.020 Definitions.

(Amended by Ordinances 187975 and 191957, effective January 1, 2025.)

As used in this Chapter, unless the context requires otherwise:
A. Commercial means any structure designed or intended to be used, or actually used, for occupancy for other than residential purposes.
B. Construct or construction means erecting, constructing, enlarging, altering, repairing, improving, or converting any building or structure for which the issuance of a building permit is required pursuant to the provisions of Oregon law.
C. Improvement means any improvements to real property resulting in a new structure, additional square footage added to an existing structure, or the addition of living space to an existing structure.
D. Mass shelters means a structure that contains one or more open sleeping areas, or is divided only by non-permanent partitions, furnished with cots, floor mats, or bunks. Individual sleeping rooms are not provided. The shelter may or may not have food preparation or shower facilities. The shelter is managed by a public or non-profit agency to provide shelter. For mass shelters, affordable means that shelter is provided on a daily basis without a fee. The number of beds is determined by the maximum number of people who can be given overnight accommodations at one time on the site.
E. Median family income means median family income by household size for the Portland Metropolitan Statistical Area as defined by the United States Department of Housing and Urban Development as adjusted for inflation and published periodically.
F. Net revenue means revenues remaining after the administrative fees described in Section 6.08.130 are deducted from the total Construction Excise tax collected.
G. Residential means structure designed or intended to be used, or actually used, for occupancy for residential purposes including any residential structure, dwelling, or dwelling unit.
H. Value of improvement means the total value of the improvement as determined by the construction permit or building permit for the Improvement. The Bureau will calculate the total value by determining the value per square foot based on building type using the International Code Council Building Valuation Data Tables and multiplying that value by the area of the new structure or additional square footage from the exterior surface of the outside wall.

6.08.030 Administration and Enforcement Authority.

(Amended by Ordinances 191736 and 191957, effective January 1, 2025.)

The City Administrator is responsible for the administration of this Chapter. In exercising the responsibilities of this Section, the City Administrator may act through designated representatives.

6.08.040 Administrative Authority Rulemaking.

(Amended by Ordinances 189078 and 191957, effective January 1, 2025.)

The City Administrator, as authorized by Charter, may adopt procedures, forms and written policies for administering the Construction Excise Tax and Chapter 6.08 of this Code.

6.08.050 Imposition of Tax.

(Amended by Ordinances 191736 and 191957, effective January 1, 2025.)

A. Each person who applies to construct a commercial improvement in the City must pay a commercial construction excise tax in the amount of 1 percent of the value of the improvement.
B. Each person who applies to construct a residential improvement in the City must pay a residential construction excise tax in the amount of 1 percent of the value of the improvement.
C. The construction excise tax will be due and payable prior to the issuance of any building permit by the City Administrator.

6.08.060 Exemptions.

(Amended by Ordinances 187975 and 191957, effective January 1, 2025.)

A. No tax imposed under this Chapter will be imposed upon the following improvements:
1. 1. Improvements when the value of improvement is less than or equal to $100,000;
2. 2. Residential housing units guaranteed to be affordable, under guidelines established by the United States Department of Housing and Urban Development, to households that earn no more than 80 percent of the median household income, for a period of at least 60 years following the date of construction of the residential housing;
3. 3. Owner occupied residential properties qualifying under the property tax exemption program under Portland City Code Chapter 3.102.
4. 4. Private school improvements;
5. 5. Public improvements as defined in ORS 279A.010;
6. 6. Public or private hospital improvements;
7. 7. Improvements to religious facilities primarily used for worship or education associated with worship;
8. 8. Agricultural buildings, as defined in ORS 455.315 (2)(a);
9. 9. Facilities operated by a not-for-profit corporation and that are:
  1. a. Long-term care facilities, as defined in ORS 442.015;
  2. b. Residential care facilities, as defined in ORS 443.400;
  3. c. Continuing care retirement communities, as defined in ORS 101.020; or
10. 10. Mass shelters.
B. Until June 30, 2018, no tax will be imposed under this Chapter 6.08 on accessory dwelling units as defined by Section 33.910 of this Code.
C. The Portland Housing Bureau may require any person seeking an exemption to demonstrate that the person is eligible for an exemption and to establish all necessary facts to support the exemption.

6.08.070 Failure to Pay.

(Amended by Ordinances 191736 and 191957, effective January 1, 2025.)

The City Administrator will not issue a building permit to any person who has failed to pay the tax required by Section 6.08.050.

6.08.080 Statement of Entire Value of Improvement Required.

It is a violation of this Chapter 6.08 for any person to fail to state or to misstate the full value of the improvement.

6.08.090 Interest and Penalties for Failure to Comply.

(Amended by Ordinances 187975 and 191957, effective January 1, 2025.)

A. Interest. If the Director of the Portland Housing Bureau determines that a person has failed to pay to the City all or any part of the construction excise tax due under this Chapter 6.08, interest will be due on the entire unpaid amount, assessed at the rate of .833 percent simple interest per month or fraction thereof (10 percent per annum), computed from the original due date of the fee to the 15th day of the month following the date of the underpayment. Interest amounts properly assessed in accordance with this Section may not be waived or reduced by the Director.
B. Penalties. In addition to assessing interest, the City Administrator may assess a penalty of five percent of the otherwise applicable tax liability upon:
1. 1. Any person that initially qualifies for an exemption under Subsections 6.08.060 A.2., 6.08.060 A.3. and 6.08.060 A.10. and the housing units subsequently fail to qualify for the exemption;
2. 2. Any person who intentionally fails to state the full value of an improvement.
C. Penalties and interest merged with tax. Any accrued interest and imposed penalties under the provisions of this Section will be merged with and become a part of the construction excise tax required to be paid under this Chapter 6.08. If delinquency continues, requiring additional penalty and interest calculations, previously assessed penalty and interest are added to the tax due. This amount becomes the new base for calculating new interest amounts.

6.08.100 Enforcement by Civil Action.

The construction excise tax, and any assessed interest and penalties, due and owing under this Chapter 6.08 constitutes a debt owing to the City by the person liable for the tax as set forth in Section 6.08.050.

6.08.110 Refunds.

(Amended by Ordinances 191736 and 191957, effective January 1, 2025.)

A. The Portland Housing Bureau will issue a refund to any person who has paid a construction excise tax the amount of the tax actually paid:
1. 1. If the person establishes that the tax was paid for improvements that were otherwise eligible for an exemption under Section 6.08.060.
2. 2. If the person establishes that construction of the improvements was not commenced and the associated building permit has been cancelled by the City Administrator;
3. 3. Upon a determination by either the City Administrator or the Code Hearings Officer that the amount of any construction excise tax, penalty, or interest has been erroneously collected or paid to the City under this Chapter 6.08.
B. The Portland Housing Bureau will either refund all amounts due under this Section within 30 days of a complete application for the refund or give written notice of the reasons why the application has been denied. Claims for refunds must be made upon forms provided by the Portland Housing Bureau. The request for the refund must be submitted within three years from the date of payment of the construction excise tax.
C. Denial of an application for refund may be appealed as provided for in Section 6.08.120.

6.08.120 Appeals.

(Amended by Ordinances 191736 and 191957, effective January 1, 2025.)

A. Administrative Review. Any written determination issued by either the City Administrator or the Portland Housing Bureau applying the provisions of this Chapter 6.08 believed to be in error may be reviewed by the City Administrator if requested in writing by the recipient. The request for administrative review must be received within 10 days of the determination, and must include all documentation supporting the request. The City Administrator’s determination in the administrative review will be served by regular mail.
B. Appeals. Any written determination from the City Administrator applying the provisions of this Chapter 6.08 regarding liability for payment of construction excise taxes, the valuation of may appeal such determination of the City Administrator to the Code Hearings Officer of the City as provided in Chapter 22.10 of this Code.
C. The filing of any notice of appeal will not stay the effectiveness of the written determination unless the Code Hearings Officer so directs.

6.08.130 Dedication of Revenue.

(Amended by Ordinances 191736 and 191957, effective January 1, 2025.)

A. Portland Permitting & Development may retain up to four percent of the taxes collected for payment towards the Bureau’s administrative expenses related to collection and distribution of the tax.
B. For the tax imposed on residential improvements, the net revenues will be distributed as follows:
1. 1. 15 percent of net revenue will be remitted to the Oregon Department of Housing and Community Services to fund home ownership programs.
2. 2. 50 percent of net revenue will be transferred to the Portland Housing Bureau Inclusionary Housing Fund to fund finance-based incentives for programs that require affordable housing.
3. 3. 35 percent of net revenue will be transferred to the Housing Bureau Inclusionary Housing Fund to support the production and preservation of affordable housing units at and below 60 percent median family income.
C. For the tax imposed on commercial improvements, 100 percent of net revenue will be distributed to the Housing Bureau Inclusionary Housing Fund to support the production and preservation of affordable housing units at and below 60 percent median family income.

Chapter 6.09 Nightly Fee on Short-Term Rentals

(Chapter added by Ordinance 189031; amended by Ordinance 191957, effective January 1, 2025.)

6.09.005 Purpose.

(Amended by Ordinance 191957, effective January 1, 2025.)

All booking agents and transient lodging intermediaries that facilitate the rental of short-term rentals will be charged a fee each night a guest rents a room. This fee is separate from the transient lodging tax authorized by the City Charter and Chapter 6.04. The revenues from this fee will be used to fund affordable housing and homelessness initiatives in the Portland area.

6.09.010 Definitions.

(Amended by Ordinance 191957, effective January 1, 2025.)

Except where the context otherwise requires, the definitions given in this Section govern the construction of this Chapter.
A. Booking agent has the same meaning as the term defined in Section 6.04.010.
B. Division means, for the purposes of this Chapter, the revenue service and program of the City Administrator under Chapter 3.06 of this Code and may be referred to as “Revenue Division” or “Division”;
C. Division Director and Director mean the City Administrator or their designee who carries out the work of the Division;
D. Guest means a person who rents one or more rooms in a short-term rental on a temporary basis, for any number of days. Any person who signs a monthly rental or fixed-term lease agreement is not considered to be a guest, but is considered a tenant exercising long-term occupancy.
E. Host means the owner, agent or person who resides at a short-term rental or has been designated by the owner, agent or resident of the short-term rental and who rents out the short-term rental for transient lodging occupancy either directly or by using a booking agent or Transient Lodging Intermediary;
F. Hotel, for purposes of Chapter 6.09 only, means a commercially zoned structure that was built or remodeled to operate as a hotel or motel for transient lodging purposes.
G. Long-term occupancy means a rental agreement between a property owner and a tenant with the intention of the rental period being an extended period of time, often months or years, governed by a verbal or written monthly rental agreement or a lease. Long-term occupancy established a person’s primary residence for voting and income tax purposes.
H. Transient lodging occupancy means the use or possession, or the right to the use or possession for lodging or sleeping purposes of any short-term rental or portion thereof. Transient lodging occupancy does not establish or change a person’s primary residence.
I. Online booking site means a hosting or other online website that provides a means through which a host may offer to rent a short-term rental unit for transient lodging or other short-term occupancy.
J. Person has the same meaning as defined in Section 6.04.010.
K. Rent has the same meaning as defined in Section 6.04.010.
L. Room has the same meaning as defined in Section 6.04.010.
M. Short-term rental means a house, duplex, multi-plex, apartment, condominium, bed & breakfast, accessory dwelling unit, tiny house, houseboat, trailer or other residential dwelling where a person rents a full house or guest bedroom(s) for transient lodging occupancy. A short-term rental is generally, but not always, zoned residential and has a residential building occupancy. Certain residential building occupancy may allow transient lodging occupancy by right or by permit.
N. Transient lodgings intermediary means any transient lodging intermediary, transient lodging tax collector or transient lodging provider as defined in ORS 320.300

6.09.020 Fee Imposed.

(Amended by Ordinance 191957, effective January 1, 2025.)

For the privilege of facilitating a transient lodging occupancy of a short-term rental within Portland, a booking agent or Transient Lodging Intermediary must pay to the City a fee of $4 per night for each transient lodging occupancy. This fee is due each night on any occupancy between one and 30 nights at a short-term rental accommodation. If the occupancy exceeds 30 continuous days, the fee is no longer due for any of the nights, and if collected, must be refunded to the guest. This fee may be passed onto the guest if the receipt provided to the guest separately states this nightly fee, identifying the fee as “Portland Housing and Homelessness Fee”. This fee is not assessed on booking agents or transient lodging intermediaries who only facilitate the rental of rooms of a hotel defined in Chapter 6.09. Additionally, booking agents or transient lodging intermediaries who facilitate the rental of rooms of a hotel as defined in Chapter 6.09, in addition to short-term rentals are not required to collect this fee on hotel room rentals.

6.09.030 Administrative Authority.

(Amended by Ordinance 191957, effective January 1, 2025.)

A. The City Administrator administers this Chapter. Nothing in this Chapter precludes the disposition of a controversy by stipulation or agreed settlement, through correspondence or a conference with the City Administrator.
B. The City Administrator may implement procedures, forms and written policies for administering the provisions of this Chapter.
C. The City Administrator, as authorized by Charter, may adopt rules relating to matters within the scope of this Chapter or to obtain compliance with this Chapter.

6.09.040 Due Dates; Returns and Payments.

(Amended by Ordinance 191957, effective January 1, 2025.)

A. The fee imposed by this Chapter is due and payable on or before the last day of the month for the preceding month or other reporting period allowed by the Division. Amounts due are considered delinquent on the first of the month, or in the case when the due date falls on a Sunday or legal holiday as defined by ORS 187.010, amounts are delinquent on the first business day that follows.
B. A return must be filed with the fee due on a form prescribed by the Division by the due date in Subsection A. above. Returns must show the amount of the fee owed for the period. The Division may require returns to include additional information to explain the fee calculation.
C. The booking agent or transient lodging intermediary required to file the return must deliver the return, together with the remittance of the fee amount due, to the Division at its office, either by personal delivery or mail. If the return is mailed, the postmark will be considered the day of delivery for determining delinquencies.
D. For good cause, the Division may extend the time for making any return or payment of the fee due for one month. No further extension will be granted. Any booking agent or transient lodging intermediary granted an extension will pay interest at the rate of 1.25 percent for the month on the amount of fee due without proration for a portion of a month or reduction for any prepayments or credits available. If an extension is granted and the assessment and interest due is not paid by the end of the extension period, then the interest will be added to the fee due for the computation of penalties and additional interest as detailed elsewhere in the Chapter.
E. The Division, if deemed necessary in order to ensure payment or facilitate collection by the Division of the fee in any individual case, may require returns and payment of fees due for other than monthly periods. If a booking agent or transient lodging intermediary is required to report on a different basis, the Division will provide a schedule showing the filing periods, due dates and delinquent dates.

6.09.050 Registration.

(Amended by Ordinance 191957, effective January 1, 2025.)

All booking agents and transient lodging intermediaries that facilitate any short-term rental reservations for transient lodging occupancy must register with the Division. Failure to register with the Division does not relieve the booking agent or transient lodging intermediary from the obligation to pay the fee. Registration must state the name under which the booking agent or transient lodging intermediary transacts business, any affiliated companies or brands that are associated with the registration, the location of the place of business and other information necessary to facilitate the collection of the fee as the Division may require.

6.09.060 Penalties and Interest.

(Amended by Ordinance 191957, effective January 1, 2025.)

A. Original delinquency. Any booking agent or transient lodging intermediary that has not been granted an extension of time for remittance of the fee due and who fails to remit any fee imposed by this Chapter on or before the due date will pay a late penalty of 10 percent of the amount of the fee due in addition to the fee. There is no grace period between the due date and the assessment of penalty and interest; the day following the due date is considered be the delinquent date.
B. Continued delinquency. Any booking agent or transient lodging intermediary who fails to pay in full on or before the due date of an original delinquency notice will pay a second delinquency penalty of 15 percent of the amount of the fee due plus all penalty and interest assessments at the time of the continued delinquency.
C. Fraud. If the Division determines that the nonpayment of any amount due under this Chapter is due to fraud or intent to evade the provisions thereof, a penalty of 25 percent of the amount due will be added in addition to late penalties stated in Subsections A. and B. of this Section and interest stated in Subsection D. of this Section. This penalty is calculated on the entire amount due, including any penalties and interest previously assessed at the time of the calculation.
D. Interest. In addition to the penalties imposed above, any booking agent or transient lodging intermediary that fails to file or pay any fee imposed by this Chapter will pay interest at the rate of one percent per month or fraction thereof without proration for portions of a month, on the amount due from the first day following the original due date. Interest will be compounded monthly until the amount due is paid in full.
E. Penalties and interest merge with fee. Every penalty imposed and such interest as accrues under the provisions of this Section will be merged with and become a part of the fee required to be paid. If delinquency continues, requiring additional penalty and interest calculations, previously assessed penalty and interest are added to the fee due. This amount becomes the new base for calculation new penalty and interest amounts. This merging continues each month until the full balance is paid.
F. Petition for waiver. Any booking agent or transient lodging intermediary that fails to pay the fee within the time stated must pay the fee, penalties and interest assessed; however, the booking agent or transient lodging intermediary may petition the Division for waiver and refund or credit of all or part of the penalty assessed and the Division may, if a good and sufficient reason is shown, waive some or all of the penalty assessment. Interest will not be waived except by written policy.

6.09.070 Administration and Recordkeeping.

(Amended by Ordinance 191957, effective January 1, 2025.)

A. Records. Booking agents and transient lodging intermediaries must keep appropriate records, including but not limited to accounting and bank records, detailed transaction information including short-term rental location and number of nights rented during the period and any other documentation necessary to support the fee calculation and report filed or required to be filed. All records must be retained by the booking agent or transient lodging intermediary for a period of five years and six months after the filing of the return, amended return or payment of the fee, whichever is later.
B. Examination of records; investigations. The Division, or any person authorized in writing by it, may examine during normal business hours the books, papers, reservation records and accounting records relating to returns filed by booking agents or transient lodging intermediaries, after notification by the Division and may investigate the business of the booking agent or transient lodging intermediary in order to verify the accuracy of any return made or if no return is filed, to determine the amount required to be paid.
C. Should the City prevail in any legal proceedings in any state or federal court to collect the fees, penalties and interest assessed in accordance with this Chapter, the City will be entitled to its reasonable costs and attorneys’ fees.

6.09.080 Deficiency Determinations; Redeterminations.

(Amended by Ordinance 191957, effective January 1, 2025.)

A. Deficiency determinations. If the Division determines that a return is incorrect, that required reports or returns have not been filed or that a booking agent or transient lodging intermediary has otherwise failed to comply with the terms of this Chapter, it may compute and determine or estimate the amount required to be paid based on the facts contained in the return or any other information reasonably within its possession. Once a deficiency determination is made, the amount is due and payable within 10 days. The City Administrator may assess penalties and interest as set forth in Section 6.09.060.
1. 1. The booking agent or transient lodging intermediary may petition for a redetermination if the petition is filed with 10 days of the postmark date on the written deficiency notice. Nothing prohibits the City Administrator from extending the time for petition beyond 10 days at its sole discretion.
2. 2. Every deficiency determination must be made and notice mailed within five years after a return was originally filed, subsequently amended or the tax was paid, whichever period expires later. In the case of the filing of a false or fraudulent return with the intent to evade this Chapter, a failure to file a required return or willful refusal to remit the fee, a deficiency determination may be made, or a proceeding for the collection of such deficiency may be commenced at any time and is not subject to the five-year limitation above.
B. Any booking agent or transient lodging intermediary against whom a deficiency determination is made or civil penalties are assessed under Section 6.09.100 may petition for a redetermination within the time required in this Section. If a petition for redetermination is filed timely, the City Administrator will consider the deficiency determination or civil penalties and, if requested in the petition, will grant an oral hearing and give 10 days’ notice of the time and place of the hearing.
1. 1. The City Administrator may adjust the amount of the deficiency determination as a result of the hearing and, if an increase is determined, such increase will be payable immediately after the hearing.
2. 2. The City Administrator’s order or decision becomes final 10 days after service upon the petitioner unless an appeal is filed with the Business License Appeals Board or Hearings Officer, if applicable, within 10 days of the postmark date on the written order.
3. 3. No petition for redetermination or other appeal will be accepted and no petition or appeal is effective for any purpose unless the booking agent or transient lodging intermediary has first paid in full the amount determined to be due in the deficiency determination or civil penalty assessment that is being appealed.
C. Appeals of penalty and/or interest assessments are not subject to the appeals process outlined in Section 6.09.090. The decision of the City Administrator regarding penalty and interest assessments is final.

6.09.090 Revenue Division Appeals Board; Hearings Officer; Appeal; Rules.

(Amended by Ordinance 191957, effective January 1, 2025.)

Any booking agent or transient lodging intermediary aggrieved by a decision of the City Administrator made pursuant to this Chapter may appeal as allowed in Section 6.04.140 by filing a notice of appeal with the City Administrator within 10 days of the service of the notice of a decision. Any hearing will be scheduled by the Revenue Division Appeals Board or Hearings Officer in accordance with rules pertaining to such appeals. The procedures and rules of Section 6.04.140 will apply to any such appeal.

6.09.100 Civil Penalties.

(Amended by Ordinance 191957, effective January 1, 2025.)

A. The City Administrator may impose a civil penalty of up to $500 for failure to file a return or pay any fee within 60 days of the Due Date provided in Section 6.09.040.
B. Failure to separately state on the guest receipt the per night privilege charge if the charge is being passed through to the guest as an additional charge or fee.
C. The determination of a violation and imposition of a civil penalty under this Section will be subject to appeal pursuant to Section 6.09.090.

Chapter 6.10 Arts Education and Access Income Tax

(Chapter added by Ordinance 191957, effective January 1, 2025.)

6.10.010 Definitions.

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

A. Arts teachers means teachers who provide instruction in any arts discipline, including dance, music, theatre, or visual art.
B. Catchment means the geographical area from which an elementary school within a District draws its students.
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.
D. Director means the Director of the Office of Arts & Culture, or authorized designee.
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.
F. Income-earning resident means a resident who has income of $1,000 or more in the tax year.
G. Net revenues means the revenue remaining after interest, collection, administrative and other costs and refunds are deducted from gross revenues.
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.
I. Portland K-5 students means students that reside within the geographical boundary of the City that attend kindergarten through 5th grade in public schools.
J. Resident or 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.
K. 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.
L.Revenue and Financial Services 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.
M. Schools means those educational institutions defined as schools by the Oregon Department of Education, but do not include on-line schools.
N. School districts means the Portland Public, David Douglas, Centennial, Parkrose, Reynolds and Riverdale school districts.

6.10.020 Tax Imposed.

A tax of $35 is imposed on the income of each income-earning resident of the City who is at least eighteen 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.

6.10.030 Net Revenues Distribution.

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:

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.
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 and/or oversight committee;
4. 4. Monitor school district performance and report any IGA compliance concerns to the 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.
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 arts organizations that demonstrate artistic excellence, provide service to the community, 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 make the determination as to which arts organizations will be supported. In the event that the Office of Arts & Culture or its designee distributes less than 95 percent of the funds to non-profit Portland arts organizations, the remaining funds will be distributed for the purpose of providing grants and programs as described in Subsection 2. below.
2. 2. A minimum of five percent of the remaining funds will be distributed for grants and programs to non-profit arts organizations, other nonprofits and schools that will give access to high-quality arts experiences to kindergarten through 12th grade students (K-12) and for grants and programs that will make arts and culture experiences available to Portland residents, with particular emphasis on programs directed to communities who are underserved by local arts providers.
3. 3. These funds are in addition to existing and ongoing financial support for the Office of Arts & Culture.

6.10.040 Intergovernmental Agreements.

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.

6.10.050 Oversight Committee.

The Mayor will appoint an oversight committee, subject to Council confirmation, that is representative of the City’s diverse communities to ensure the Arts Education and Access Fund is being implemented as required, to review expenditures made and to report their findings in a public record to the City Council on an annual basis. The committee will be comprised of a minimum of 10 and a maximum of 20 members, including, if possible, a member of the Tax Supervising and Conservation Commission.

6.10.060 Audits.

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.

6.10.070 Effective Dates.

This tax will be effective beginning with the tax year 2012 and will continue each year thereafter. Payment of the tax each year is due on the date on which state taxes are due, not including any extensions of time that might be requested or received.

6.10.080 Revenue and Financial Services Division Responsibilities.

The Revenue and Financial Services Division will:

A. Receive the gross revenues derived from the Arts Education and Access Income Tax and distribute the net revenues in accordance with the IGAs. Any balance remaining will be distributed to the Office of Arts & Culture for arts education coordination and grants;
B. Keep accurate records of the funds;
C. Report to the Council by way of a public record on all funds received and directed to the school districts and the Office of Arts & Culture;
D. Adopt administrative rules necessary to implement tax collection and administration.
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; and
F. Accept any and all gifts and donations to the Arts Education and Access Fund.

6.10.090 Limitation on Costs.

A. The administrative budget will be subject to annual Council approval.
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.

6.10.100 Confidentiality.

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.
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.
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.
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.
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.
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.
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 6.10.100, relating to penalties for the violation of Section 6.10.120, 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 6.10.100.

6.10.110 Frivolous Filing, False Filing and Hacking.

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.
B. A $250 penalty will be assessed if a taxfiler willfully makes or provides false statements related to their tax return filing.
C. The provisions of Portland City Code Section 7.02.840 regarding hacking apply.

6.10.120 Criminal Penalties for Violation of the Arts Tax Law by City Employee or Agent.

Anyone knowingly violating Section 6.10.100 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.

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