Business Tax Administrative Rules

Information
Business Tax administrative rules related to the City of Portland Business License and Multnomah County Business Income Tax Laws.
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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 280.12-1A - Extension of Time to File Amended Returns Pursuant to the Decision in the Proctor Case (LIC-4.04)

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 600.93-6A - Change of Ownership During the Year and Calculation of the Compensation Allowance Deduction (LIC-6.03)

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)

BTAR 600.93-9A - Definition of Controlling Shareholders and Calculation of Number of Controlling Shareholders (LIC-6.06)

BTAR 610.93-1 - Definition of Total Gross Income Gross Receipts for Apportionment and Exemption (LIC-1.04)


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 610.93-2A - Business Activity and Apportionment of Sales of Tangible Personal Property (LIC-6.12)

BTAR 610.00-2A - Apportionment of Gains and Incomes Due to Sale of A Business (LIC-6.11)

BTAR 610.93-4A - Apportionment of Gross Income from Business Activities Other than Sales of Tangible Personal Property (LIC-6.14)

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 610.93-9A - Apportionment for Incomes Subject to Portland City Code Chapters 7.12 or 7.14 (LIC-6.19)

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 NumberBusiness Tax Administrative Rule NameWhat's Happening
100.07-1ADiversified Investing Fund DeductionSunset and replaced
100.23-1Diversified Investing Fund DeductionReplaces 100.07-1A
200.95-1ADoing Business for an EstateSunset and replaced
200.23-1Doing Business for an EstateReplaces 200.95-1A
400.93-1AExemption from Tax for Individuals and Joint Return FilersSunset and replaced
400.23-1Exemption from Tax for Individuals and Joint Return FilersReplaces 400.93-1A
400.93-2AExemption for Insurance ProducersSunset and replaced
400.23-2Exemption for Insurance ProducersReplaces 400.93-2A
400.93-3ABusiness License Tax Exemption for Real Estate BrokersSunset and replaced
400.23-3Business License Tax Exemption for Real Estate BrokersReplaces 400.93-3A
600.93-5ADefinition of Owner PartnershipSunset and replaced
601.23-3Definition of Owner PartnershipReplaces 600.93-5A
600.94-1ATreatment of Currently Taxed Pass Through IncomeSunset and replaced
601.23-1Treatment of Currently Taxed Pass Through IncomeReplaces 600.94-1A
600.94-2APartnerships Partner Level Deduction ElectionSunset and replaced
601.23-2Partnerships Partner Level Deduction ElectionReplaces 600.94-2A
610.00-2AApportionment of Gains and Income Due to Sale of A BusinessSunset
610.93-1Definition of Total Gross Income and Gross Receipts for Apportionment and ExemptionSunset and replaced
611.23-1Definition of Total Gross Income and Gross Receipts for ExemptionReplaces 610.93-1
610.93-2ABusiness Activity and Apportionment of Sales of Tangible Personal PropertySunset
610.93-4AApportionment of Gross Income from Business Activities Other than Sales of Tangible Personal PropertySunset
610.93-7Apportionment for Freight Carriers Sunset
610.93-8AApportionment for Passenger CarriersSunset and replaced
611.23-2Apportionment for Passenger CarriersReplaces 610.93-8A
610.93-9AApportionment for Incomes Subject to Portland City Code Chapters 7.12 or 7.14Sunset and replaced
611.23-3Apportionment for Incomes Subject to Portland City Code Chapters 7.12 or 7.14Replaces 610.93-9A
610.99-1Apportionment for Providers of Electronic or Telephonic ServicesSunset

Proposed Metro Supportive Housing Services Business Income Tax Administrative Rule Summary Table

Metro Administrative Rule NumberMetro Administrative Rule NameWhat's Happening
7.07 - 1010Diversified Investing Fund DeductionSunset and replaced
7.07 - 1011Diversified Investing Fund DeductionReplaces 7.07 - 1010
7.07 -1020Doing Business for an EstateSunset and replaced
7.07 -1021Doing Business for an EstateReplaces 7.07 -1020
7.07 - 1035Exemption for Insurance ProducersSunset and replaced
7.07 - 1036Exemption for Insurance ProducersReplaces 7.07 - 1035
7.07 -1060Treatment of Currently Taxed Pass Through IncomeSunset and replaced
7.07 -1061Treatment of Currently Taxed Pass Through IncomeReplaces 7.07 -1060
7.07 -1070Apportionment of Gains and Income Due to Sale of A BusinessSunset
7.07 -1075Definition of Total Gross Income and Gross Receipts for Apportionment and ExemptionSunset and replaced
7.07 -1076Definition of Total Gross Income and Gross Receipts for ExemptionReplaces 7.07 -1075
7.07 - 1080Business Activity and Apportionment of Sales of Tangible Personal PropertySunset
7.07 - 1090Apportionment of Gross Income from Business Activities Other than Sales of Tangible Personal PropertySunset
7.07 - 1105Apportionment for Freight Carriers Sunset
7.07 - 1110Apportionment for Passenger CarriersSunset and replaced
7.07 - 1111Apportionment for Passenger CarriersReplaces 7.07 - 1110
7.07 - 1015Apportionment for Providers of Electronic or Telephonic ServicesSunset

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

Proposed City of Portland Business License Tax / Multnomah County Business Income Tax Administrative Rules

Proposed Metro Supportive Housing Services Business Income Tax Administrative Rule

Contact

Business Tax Help

Revenue Division
phone number503-823-5157Monday - Friday, 9:00am - 4:30pm
fax number503-823-5192

Upcoming Events

Available Online

Past Events

Available Online