In 2020, Metro and Multnomah County voters approved income tax measures for supportive housing services across Multnomah, Clackamas and Washington Counties and for establishing a tuition-free preschool program in Multnomah County – the first income taxes of their kind for area residents.
Both income taxes, which began in tax year 2021, are generally owed by individuals with taxable income on amounts above $125,000 if filing single, or income on amounts above $200,000 if filing jointly. This year marks the third collection year.
The City of Portland Revenue Division collects tax payments on behalf of Metro and Multnomah County, and regularly mails notices for these and other tax programs. Every May, the Revenue Division reviews payments that were due April 15 from the prior tax year, ending Dec. 31. Every year, it is expected that discrepancies will be found between amounts owed by taxpayers on a quarterly basis and the amount paid over the course of the year.
Much like other State and Federal tax programs, the Supportive Housing Services and Preschool For All programs require certain taxpayers to prepay their taxes throughout the year. Quarterly prepayment requirements can help taxpayers avoid receiving large bills when they file their tax return. Quarterly estimated payments can be made through payroll withholding, online or by mail.
Taxes can be confusing – and doubly so when they’re new. Many people who owe the supportive housing and preschool taxes are used to paying income taxes annually. For the Supportive Housing Services and Preschool for All taxes, taxpayers who would owe more than $1,000 in a tax year are required to make quarterly estimated payments. Many of these taxpayers may be unfamiliar with quarterly estimated payments and may not have experienced underpayment fees before.
As is the case with State and Federal taxes, underpayment fees are applied if quarterly estimated payments are required and, by the due date of the fourth quarter (January 15), taxpayers have not made four payments of 25% or more that equal either 100% of the prior year liability, or 90% of the current year liability.
The first year a taxpayer owes the taxes, there is no penalty for failing to make quarterly payments before April 15. After filing their first return, taxpayers receive a new tax account welcome letter from the City of Portland Revenue Division with information about quarterly estimated payments that may be applicable to them in subsequent tax years.
For tax years 2022 and 2023, Metro and Multnomah County sent mailers to residents notifying them of tax programs that may apply to them, tax deadlines, and available tax resources—including website information with detailed instructions.
The City of Portland, Metro and Multnomah County are working together to continue providing transparency about the process and answering taxpayer questions. Confusion about the recent notices shows we have room to improve, and we are committed to doing so. The City is evaluating ways to add further clarity to the website and billing notices.
Taxpayers should not ignore a Notice of Debt letter they've received. Taxpayers who have questions should contact the City of Portland Revenue Division tax help line at 503-865-4748 or email SHS.Tax@portlandoregon.gov (for Metro) or PFA.Tax@portlandoregon.gov (for Multnomah County) for assistance. The Revenue Division’s customer service team has been working hard to answer questions and help taxpayers resolve their accounts to ensure they do not receive a Notice of Debt letter in the next mailing cycle.
Resources
Pay your Supportive Housing Services or Preschool for All personal income tax
Learn more about filing and paying personal taxes with the City of Portland Revenue Division
Learn more about Metro’s supportive housing services personal income tax
Learn more about Multnomah County’s Preschool for All personal income tax