Administrative Rules Adopted by Bureaus Pursuant to Rule Making Authority (ARB)
DEFINITION OF OWNER - SOLE PROPRIETOR
Administrative Rules Adopted by Bureau of Licenses Pursuant to Rule-Making Authority
An individual who operates a trade or business and/or rents real property for the production of income is an owner. In the case of a married couple filing a joint return, two owners may be allowed if both work in the trade or business and/or the rental activities.
Example 1: Sam Fashion owns and operates a retail clothing store. He also owns four residential rental dwelling units. Mr. Fashion performs all activities related to both business endeavors. He files a joint return with his wife. If his wife does not actively work in the retail business or the rental business, there is only one owner for business license and business income tax purposes.
Example 2: Same facts as above except Mr. Fashion operates the retail store and both Mr. and Mrs. Fashion work in the rental business. Since a joint return is filed and since both work at the income producing activities, there are two owners (and two compensation allowance deductions) for business license and business income tax purposes.
Portland City Code Section 7.02.600 B.
Multnomah County Code Section 12.600 B.
Submitted for inclusion in PPD September 17, 2002.
Originally adopted as Bureau of Licenses Administrative Rule 600.93-3 November 23, 1993.