Introduction
The City of Portland's Business License Law (PCC 7.02) and Multnomah County's Business Income Tax Law (MCC § 12) authorize the Revenue Division to adopt administrative rules relating to matters within the scope of the Business License and the Business Income Tax Laws (PCC 7.02.211 B / MCC § 12.210). All Business Tax Administrative Rules (BTARs) have been adopted following the public hearing process established by the two laws (PCC 7.02.210 C and D / MCC §12.210 (C) and (D)).
Each Business Tax Administrative Rule has been given a number that identifies the code section it is interpreting and the year it was adopted. For example, Business Tax Administrative Rule 100.93-1 would interpret or explain PCC 7.02.100 and MCC § 12.100. It would further indicate that the rule was adopted in 1993 and was the first rule in the sequence of rules adopted that year for subsection 100.
The terms "City" or "County", as used in Business Tax Administrative Rule examples, shall include and may be substituted for the other jurisdiction, unless the rule only interprets a code section unique to one jurisdiction.
Administrative Rules for the Metro Supportive Housing Services Business Income Tax can be found on Metro's website.
General Administration
BTAR 110.07-1A - Diversified Investing Fund Deduction (LIC-1.05)
BTAR 110.94-1 - Oregon Modifications to Business Income (LIC-1.01)
BTAR 300.93-1 - Taxable Income after Business Activity has Ceased (LIC-3.01)
BTAR 530.93-1A - Seasonal Businesses and Payment of Estimated Taxes (LIC-5.01)
BTAR 600.18-1 - Partnership Basis Adjustments (LIC-6.24)
BTAR 600.93-2A - Payments Deemed to be Compensation to Owners (LIC-6.01)
BTAR 600.93-4A - Self Employment Tax Deduction and Health Care Premium Deduction (LIC-6.02)
BTAR 600.93-7 - Patronage Dividends (LIC-6.04)
BTAR 600.93-8A - Short Periods Count as Tax Year (LIC-6.05)
BTAR 600.94-1A - Treatment of Currently Taxed Pass-Through Income (LIC-6.07)
BTAR 600.94-2A - Partnerships - Partner Level Deduction Election (LIC-6.08)
BTAR 600.94-3 - Qualified Retirement Plans (LIC-6.09)
BTAR 600.17-1 - Net Operating Losses (LIC-6.23)
Definitions
BTAR 600.93-3 - Definition of Owner - Sole Proprietor (LIC-1.02)
BTAR 600.93-5A - Definition of Owner - Partnership (LIC-1.03)
Exemptions
BTAR 400.93-1A - Exemption from Tax for Individuals and Joint Return Filers (LIC-4.01)
BTAR 400.93-2A - Exemption for Insurance Producers (as Defined in ORS 731.104) (LIC-4.02)
BTAR 400.93-3A - Business License Tax Exemption for Real Estate Brokers (LIC-4.03)
BTAR 610.93-3A - De Minimus Business Activity for Tangible Personal Property (LIC-6.13)
BTAR 610.00-1 - De Minimus Business Activity for Personal Service (LIC-6.10)
BTAR 610.16-1 - De Minimus Business Activity for Freight Carriers (LIC-6.21)
Trusts and Estates
BTAR 200.95-1A - Doing Business for an Estate (LIC-2.01)
BTAR 200.95-2A - Doing Business for a Trust (LIC-2.02)
Apportionment
BTAR 610.00-2A - Apportionment of Gains and Incomes Due to Sale of A Business (LIC-6.11)
BTAR 610.93-5A - Apportionment for Banking Income (LIC-6.15)
BTAR 610.93-6A - Apportionment for Domestic Insurers (LIC-6.16)
BTAR 610.93-7 - Apportionment for Freight Carriers (LIC-6.17)
BTAR 610.93-8A - Apportionment for Passenger Carriers (LIC-6.18)
BTAR 610.99-1A - Apportionment for Providers of Electronic or Telephonic Services (LIC-6.20)
BTAR 610.22-1 - Apportionment for Financial Institutions (LIC-6.25)
Clean Energy Surcharge
BTAR 500.19-1 - Clean Energy Surcharge (CES) - Utility (LIC-5.03)
BTAR 500.19-2 - Clean Energy Surcharge (CES) - Qualified Medicine or Drugs (LIC-5.04)
BTAR 500.19-3 - Clean Energy Surcharge (CES) - Qualified Health Care Services (LIC-5.05)
BTAR 500.19-4 - Clean Energy Surcharge (CES) - Retail Sale (LIC-5.06)
BTAR 500.19-5 - Clean Energy Surcharge (CES) - Penalties & Interest (LIC-5.07)
BTAR 500.19-6 - Clean Energy Surcharge (CES) - Separate Itemization (LIC-5.08)
Residential Rental Registration Program
BTAR 890.22-1 - Residential Rental Registration and Fee (LIC-5.09)
Heavy Vehicle Use Tax
BTAR 610.16-2A - Petition for Reduction of Heavy Vehicle Use Tax (LIC-6.22)
Pay Ratio Surtax
BTAR 500.17-1 - Pay Ratio Surtax (LIC-5.02)
Proposed Business Tax Administration Rules
Date: Thursday, February 2, 2023; Time: 2:00pm to 3:00pm; Place: Virtual Meeting
The City of Portland Revenue Division will hold a public hearing on administrative rules interpreting the Business License Law (BLT), Multnomah County Business Income Tax Law (MCBIT), and Metro Business Income Tax Law (METBIT). The proposed administrative rules relate the three jurisdictions’ adoption of Oregon’s market-based sourcing apportionment. The effect of these rules is summarized below. Additional information is in the documents below this summary.
- Many of these rules (for tax years prior to 2023) sunset due to adopting Oregon’s market-based sourcing.
- Some will not be replaced since our code changes generally adopted Oregon’s statute and administrative rules.
- Some will be replaced with updated references to the new code and administrative rules.
- Others will be replaced with updated terms under the new treatment. For example, using sales factor instead of gross income for apportionment.
- A few of the new rules include changes for clarity while not changing the basic treatment.
Proposed City of Portland Business License Tax / Multnomah County Business Income Tax Administrative Rule Summary Table
| Business Tax Administrative Rule Number | Business Tax Administrative Rule Name | What's Happening |
|---|---|---|
| 100.07-1A | Diversified Investing Fund Deduction | Sunset and replaced |
| 100.23-1 | Diversified Investing Fund Deduction | Replaces 100.07-1A |
| 200.95-1A | Doing Business for an Estate | Sunset and replaced |
| 200.23-1 | Doing Business for an Estate | Replaces 200.95-1A |
| 400.93-1A | Exemption from Tax for Individuals and Joint Return Filers | Sunset and replaced |
| 400.23-1 | Exemption from Tax for Individuals and Joint Return Filers | Replaces 400.93-1A |
| 400.93-2A | Exemption for Insurance Producers | Sunset and replaced |
| 400.23-2 | Exemption for Insurance Producers | Replaces 400.93-2A |
| 400.93-3A | Business License Tax Exemption for Real Estate Brokers | Sunset and replaced |
| 400.23-3 | Business License Tax Exemption for Real Estate Brokers | Replaces 400.93-3A |
| 600.93-5A | Definition of Owner Partnership | Sunset and replaced |
| 601.23-3 | Definition of Owner Partnership | Replaces 600.93-5A |
| 600.94-1A | Treatment of Currently Taxed Pass Through Income | Sunset and replaced |
| 601.23-1 | Treatment of Currently Taxed Pass Through Income | Replaces 600.94-1A |
| 600.94-2A | Partnerships Partner Level Deduction Election | Sunset and replaced |
| 601.23-2 | Partnerships Partner Level Deduction Election | Replaces 600.94-2A |
| 610.00-2A | Apportionment of Gains and Income Due to Sale of A Business | Sunset |
| 610.93-1 | Definition of Total Gross Income and Gross Receipts for Apportionment and Exemption | Sunset and replaced |
| 611.23-1 | Definition of Total Gross Income and Gross Receipts for Exemption | Replaces 610.93-1 |
| 610.93-2A | Business Activity and Apportionment of Sales of Tangible Personal Property | Sunset |
| 610.93-4A | Apportionment of Gross Income from Business Activities Other than Sales of Tangible Personal Property | Sunset |
| 610.93-7 | Apportionment for Freight Carriers | Sunset |
| 610.93-8A | Apportionment for Passenger Carriers | Sunset and replaced |
| 611.23-2 | Apportionment for Passenger Carriers | Replaces 610.93-8A |
| 610.93-9A | Apportionment for Incomes Subject to Portland City Code Chapters 7.12 or 7.14 | Sunset and replaced |
| 611.23-3 | Apportionment for Incomes Subject to Portland City Code Chapters 7.12 or 7.14 | Replaces 610.93-9A |
| 610.99-1 | Apportionment for Providers of Electronic or Telephonic Services | Sunset |
Proposed Metro Supportive Housing Services Business Income Tax Administrative Rule Summary Table
| Metro Administrative Rule Number | Metro Administrative Rule Name | What's Happening |
|---|---|---|
| 7.07 - 1010 | Diversified Investing Fund Deduction | Sunset and replaced |
| 7.07 - 1011 | Diversified Investing Fund Deduction | Replaces 7.07 - 1010 |
| 7.07 -1020 | Doing Business for an Estate | Sunset and replaced |
| 7.07 -1021 | Doing Business for an Estate | Replaces 7.07 -1020 |
| 7.07 - 1035 | Exemption for Insurance Producers | Sunset and replaced |
| 7.07 - 1036 | Exemption for Insurance Producers | Replaces 7.07 - 1035 |
| 7.07 -1060 | Treatment of Currently Taxed Pass Through Income | Sunset and replaced |
| 7.07 -1061 | Treatment of Currently Taxed Pass Through Income | Replaces 7.07 -1060 |
| 7.07 -1070 | Apportionment of Gains and Income Due to Sale of A Business | Sunset |
| 7.07 -1075 | Definition of Total Gross Income and Gross Receipts for Apportionment and Exemption | Sunset and replaced |
| 7.07 -1076 | Definition of Total Gross Income and Gross Receipts for Exemption | Replaces 7.07 -1075 |
| 7.07 - 1080 | Business Activity and Apportionment of Sales of Tangible Personal Property | Sunset |
| 7.07 - 1090 | Apportionment of Gross Income from Business Activities Other than Sales of Tangible Personal Property | Sunset |
| 7.07 - 1105 | Apportionment for Freight Carriers | Sunset |
| 7.07 - 1110 | Apportionment for Passenger Carriers | Sunset and replaced |
| 7.07 - 1111 | Apportionment for Passenger Carriers | Replaces 7.07 - 1110 |
| 7.07 - 1015 | Apportionment for Providers of Electronic or Telephonic Services | Sunset |
Oral/Written Testimony
Send an email to RevenuePolicy@portlandoregon.gov if you want to provide testimony during the hearing. We will send a Microsoft Teams meeting invitation approximately one week prior to the hearing. The hearing will be recorded which is a public record. The hearing may close early depending upon the number of people providing oral testimony.
Written testimony is encouraged and will be accepted both prior to and after the hearing through 5:00 P.M., Monday, March 6, 2023. Send your written comments:
By mail
City of Portland Revenue Division
111 SW Columbia Street, Suite 600
Portland, Oregon 97201
By email
RevenuePolicy@portlandoregon.gov