information
Microsoft CrowdStrike software outage

911 is operating as normal. Some City of Portland systems were impacted. Call 3-1-1 or 503-823-4000 to help answer questions, take non-emergency reports, or make connections with City staff.

7.02.611 Apportionment of Income.

City Code Section

(Amended by Ordinance 191010, effective October 28, 2022.)

  1. This Section applies to tax years beginning on or after January 1, 2023
  2. A. “Jurisdiction to tax” occurs when a person engages in business activities in a jurisdiction that are not protected from taxation by Public Law 86-272. The City of Portland’s (City) standard for jurisdiction to tax, or nexus, is the same as the State of Oregon’s found in the Oregon Revised Statutes and Oregon Administrative Rules related to taxation. If a taxpayer’s business is based in the City, a taxpayer must have business activity outside the City that results in a jurisdiction to tax outside the City to apportion the income of the business. Without jurisdiction to tax outside the City, all income of a business is taxable by the City. 
  3. B. “Business activity” means any of the elements of doing business. The income reportable as income earned from business activity within the City will include all business incomes from sources within the City that are taxable income under Oregon tax laws and regulations unless otherwise exempted or excluded in this Chapter. 
  4. C. The City adopts the apportionment and allocation provisions found in the Oregon Revised Statutes, Chapters 314, 317, and 318 and related Oregon Administrative Rules unless otherwise provided in this chapter or by administrative rule. All references to Oregon or the state should be read as referring to the City. All business income must be apportioned to the City by multiplying business income by the sales factor only. 
  5. D. In determining the sales factor numerator under Subsection 7.02.611 C: Sales of tangible personal property are deemed to take place in the City if the property is delivered or shipped to a purchaser within the City regardless of the f.o.b. point or other conditions of sale. If sales of tangible personal property are shipped from the City to a purchaser located where the taxfiler is not taxable, those sales are not apportioned to the City.
  6. E. Certain industries or incomes are subject to specific apportionment methodologies. Such methodologies are described in the code and administrative rules adopted in accordance with Section 7.02.210. Industry specific or income specific apportionment methodologies required by Oregon Revised Statutes and Oregon Administrative Rules for the sales factor, will be used in cases where no rule has been adopted by the Division regarding the apportionment of such industry or income. All apportionment methodologies directed under this Chapter will be a single factor sales apportionment as directed under Subsections 7.02.611 C. and Subsection 7.02.611 D.