Amend Business License Law Code to allow sharing select business license tax information with the Bureau of Environmental Services (amend Code Section 7.02.240)
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 Council adopted Ordinance 191745 on June 5, 2024, to conform to the requirements of this statute.
- The City's Bureau of Environmental Services is required by both federal and state law to perform certain compliances activities. Information sources that can aid the bureau's compliance activities are limited.
- Amending City code per Exhibit A will allow the Revenue Division to share certain nonfinancial Business License Tax Return information with the bureau. The information provided will aid the bureau in performing the compliance activities it is required to perform. The information shared will only be used for the bureau's compliance activities and must not be disclosed outside the bureau for any other purpose.
NOW, THEREFORE, the Council directs:
- Amend City Code Section 7.02.240 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 314.835 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 though it includes PCC 7.02.240.
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 Council passed Ordinance 191745 June 5, 2024, to conform the Business License Law's confidentiality and disclosure provisions to ORS 341.835 as amended by House Bill 4031.
The City's Bureau of Environmental Services is required by both federal and state law to perform certain compliance activities. Information sources available to support the bureau's compliance activities are limited. The purpose of this legislation is to allow sharing certain nonfinancial tax return information to allow the bureau to perform the compliance activities it is required to perform. The information shared may only be used for the bureau's compliance activities and is not allowed to be disclosed further for any other purpose.
Financial and Budgetary Impacts
Not applicable.
Economic and Real Estate Development Impacts
Not applicable.
Community Impacts and Community Involvement
This legislation will provide the Bureau of Environmental Services with information needed to efficiently and effectively fulfill its responsibilities while retaining taxpayers' confidence that the City will protect the confidentiality of their tax return information.
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
The ordinance is expected to have no material fiscal impact on City finances. Allowing the Revenue Division to share limited nonfinancial business license tax information with the Bureau of Environmental Services will use existing staff capacity.
Document History
Document number: 2025-432
President's referral: Finance Committee