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LIC-1.08 - Definition of Total Gross Income & Total Gross Receipts for Exemption - for tax years beginning on or after 1/1/2023

Administrative Rules Adopted by Bureaus Pursuant to Rule Making Authority (ARB)
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Administrative Rule Adopted by Revenue Bureau Pursuant to Rule-Making Authority


Note: Applicable for tax years beginning on or after 1/1/2023.

Total gross income of a business is defined as all income from whatever source derived, including but not limited to:

a. gross receipts (less returns and allowances) from the sale of tangible personal property;

b. gross receipts from the sale of services, including fees and commissions;

c. gains derived from property transactions (including installment sales);

d. interest (including interest from installment sales);

e. rents;

f. royalties;

g. dividends;

h. income from life insurance and endowment contracts;

i. franchise fee income;

j. distributive share of partnership gross income;

k. income received from business contractual agreements, such as non-compete contracts; and

l. business income from an interest in an estate or trust.

The “gross receipts” determined as earned from the sale of property transactions (as referenced in (c) above), shall be the gain from such transactions for exemption purposes.

Example:  Bob Brown sold his commercial rental on January 31 for a gain of $300,000 after receiving $15,000 in gross rents for the year.  The commercial rental was sold for $1,000,000.  For purposes of the City of Portland Business License and Multnomah County Business Income Tax Codes, the gross receipts for exemption purposes shall be $315,000.


Portland City Code Section 7.02.400 C.
Multnomah County Code Section 12.400 (C).


Adopted by Revenue Division Director March 6, 2023.

Submitted for inclusion in PPD April 17, 2023.

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