LIC-6.15 - Apportionment for Banking Income

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

Bank has the same meaning as used in ORS 706.008(1). If income from banking activities (defined as the receiving or accepting of money or its equivalent on deposit as a regular business activity – including such activities engaged in by Banking Organizations and by Savings and Loan Organizations) is derived from business activity both within and without the City of Portland and/or Multnomah County, the determination of City or County gross income is arrived at by a formula comparing deposits in the City or County to deposits everywhere.  Deposits are defined as average daily deposits--net of all public funds, all treasury tax and loan deposits, all correspondent bank deposits, and money orders or official checks.  Upon determining deposits locally and everywhere, the following formula is used:

Gross income everywhere is the denominator of the apportionment fraction.  The numerator of the apportionment fraction is determined by adding City/County gross banking income and City or County gross income from other non-banking business income.

The formula to determine local (within Portland or Multnomah County) banking gross income is:

Local Deposits             Total        Local
------------------------ X Banking    = Banking
Deposits Everywhere        Receipts1    Income

Gross income earned in Portland or Multnomah County from income producing activity other than banking income is added to the City or County gross income derived from banking activity.

Example: XYZ BANK, INC. (consolidated with ZZZ Rental Corporation).

  1. Total Consolidated Gross Income = $50,000,000
  2. Total Banking Gross Income = $35,000,000
  3. Total Deposits = $500,000,000
  4. County Deposits = $25,000,000
  5. County Gross Income of ZZZ Corp = $100,000 (non–banking gross)
  6. County Banking Gross Income
  7. 25,000,000(#4)/500,000,000(#3) X 35,000,000(#2)= $1,750,000
  8. TOTAL COUNTY INCOME (#5 + #6) = $1,850,000

1 Total Banking Receipts as included in Oregon Form 20, Schedule C-1.

Note: This rule applies to tax years beginning on or before December 31, 2021. It does not apply to tax years beginning on or after January 1, 2022.

Portland City Code Section 7.02.610 C.
Multnomah County Code Section 12.610 (C)

Submitted for inclusion in PPD September 17, 2002.
Originally adopted as Bureau of Licenses Administrative Rule 610.93-5 November 23, 1993 and amended as 610.93-5A December 26, 2000.

Revised administrative rule adopted by Director of Revenue Bureau August 10, 2009.
Revised administrative rule adopted by Director of Revenue Division March 20, 2022.

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