Amend Special Taxes Code to conform to Oregon Revised Statute 314.835 (amend Code Sections 6.04.130, 6.05.070, 6.09.040, and add Code Section 6.04.135)
The City of Portland ordains.
Section 1. The Council finds:
- The 2024 Oregon Legislature passed, and the Governor signed, House Bill 4031 amending ORS 314.835 regarding confidentiality of tax return information. These changes became effective on March 28, 2024.
- ORS 314.835 contains Oregon's tax return confidentiality law which prohibits sharing any tax return information unless specifically provided in law. As amended by House Bill 4031, ORS 314.835 now applies the same manner to local governments for the tax returns of certain types of taxes.
- The intent of House Bill 4031 is to align state and local government treatment of sensitive tax return information.
- Amending City Code per Exhibit A will reflect that alignment. It will provide clear guidance to taxpayers, tax professionals, City staff, and others regarding the confidentiality of tax return information. It will also provide clear guidance regarding who tax return information may be shared with, what types of tax return information can be shared, and the purpose for sharing any tax return information.
- The business and personal income tax codes have previously been updated to reflect the change in this state law. This is the final tax to be updated to conform to this state law.
NOW, THEREFORE, the Council directs:
- Amend City Code Sections 6.04.130, 6.05.070, and 6.09.040 as shown in Exhibit A.
- Add City Code Section 6.04.135 as shown in Exhibit A.
Official Record (Efiles)
An ordinance when passed by the Council shall be signed by the Auditor. It shall be carefully filed and preserved
in the custody of the Auditor (City Charter Chapter 2 Article 1 Section 2-122)
Passed by Council
Auditor of the City of Portland
Simone Rede
Impact Statement
Purpose of Proposed Legislation and Background Information
ORS 314.834 imposes strict confidentiality provisions on every piece of information related to certain state tax returns. It also refers to other statutes, rules, and law that allow, in specific circumstances and with specific persons, the sharing of tax return information. Most notable is ORS 314.840.
The 2024 Oregon Legislature passed, and the Governor signed, House Bill 4031 amending ORS 314.835. The bill's intent and language apply the state's stricter confidentiality provisions to certain local taxes such as the Business License Tax. The bill became effective March 28, 2024.
The purpose of this legislation is to accomplish the alignment between the State's tax return confidentiality provisions and the City's tax return confidentiality provisions. It also clarifies who the City may share tax return information with and the purpose for sharing that information. This legislation is required because of the passage of House Bill 4031.
Financial and Budgetary Impacts
Not applicable.
Economic and Real Estate Development Impacts
Not applicable.
Community Impacts and Community Involvement
This legislation will provide taxpayers with confidence that the City will protect the confidentiality of their tax return information. No outreach was made as House Bill 4031 makes this legislation necessary.
100% Renewable Goal
Not applicable.
Economic and Real Estate Development Analysis
Analysis provided by Prosper Portland
An Economic and Real Estate Development Impact Analysis was not submitted for this proposed action. Pursuant to City Council Resolution 37664, Prosper Portland staff has reviewed the action and agree that it does not require an Economic and Real Estate Development Impact Analysis.
Financial and Budget Analysis
Analysis provided by City Budget Office
No material fiscal impact on City finances as the amendments align City Code with updated state confidentiality requirements for tax return information.
Document History
Document number: 2025-434
President's referral: Finance Committee