Most City offices closed Wednesday, June 19, to observe Juneteenth

The City of Portland recognizes Juneteenth as a formal day of remembrance to honor Black American history and the end of slavery in the United States. Learn about Juneteenth.

Application of Payments

Tax Administration Policy for City of Portland Business License Tax, Multnomah County Business Income Tax, and Metro Supportive Housing Services (SHS) Business Income Tax related to the application of payments to tax, penalty, and interest.

Tax Administration Policy - Application of Payments

Portland City Code Section 7.02.715 and Multnomah County Code § 12.715 ("Codes") state that payments received shall first be applied to any penalty accrued, then to interest accrued, then to taxes due. The Codes anticipate a single tax year being due and are silent as to application of payments when more than one tax year has an outstanding receivable.

In order to accommodate both multiple year payment plans and the Division’s automation needs, payments need to be applied by tax year to allow proper recording of payment information. Therefore, payments will be applied on multiple year receivables as follows:

  1. Late/Underpayment Penalty for the oldest tax year; then
  2. Interest for the oldest tax year; then
  3. Business Taxes for the oldest tax year. 

This pattern will repeat until all penalties, interest, and tax accrued have been paid. If any interest accrues between payments, interest will be paid prior to any payments against taxes.

Payments received by the Division designated as a Quarterly Estimated Payment, Extension Payment or a payment with a Combined Tax Return will not be applied to outstanding receivables due. If a Combined Tax Return indicates that a refund is due the taxpayer and there are one or more outstanding receivables, the Division shall transfer part, or all, of the refund to the tax year(s) with the balances due. If such a transfer takes place, the Division will notify the taxpayer in writing.

If a payment plan exists on one or more receivables, unless designated otherwise, any monies received will be used to pay off balances due on the payment plan first.

10/04/2023                                 Tyler Wallace
Date                                             Director

Adopted: 3/2/2005
Revised: 2009, May 2019, September 2020, October 2023