7.02.110 Income Defined.

City Code Section

(Amended by Ordinance Nos. 183727, 187339 and 190129, effective October 16, 2020.)

A.  Partnerships, S corporations, limited liability companies, limited liability partnerships, family limited partnerships, estates, and trusts are liable for the business license tax and not the individual partners, shareholders, members, beneficiaries or owners.  The income of these entities must include all incomes received by the entity, including ordinary income, interest and dividend incomes, income from sales of business assets and other incomes attributable to the entity.  For income purposes, a limited liability company is deemed to be the tax entity that includes the income of the limited liability company in its federal tax return – if the limited liability company will be disregarded as a separate tax entity.

B.  If one or more persons are required or elect to report their income to the State of Oregon for corporation excise or income tax purposes or personal income tax purposes in a consolidated, combined or joint return, a single license certificate will be issued to the person filing such return.  In such cases, “income” means the net income of the consolidated, combined or joint group of tax filers before any allocation or apportionment for operation out of the state, or deduction for a net operating loss carry-forward or carry-back.

C.  The absence of reporting income to the Internal Revenue Service or the State of Oregon does not limit the ability of the Division to determine the correct income of the taxfiler through examination under Section 7.02.260.