Multnomah County and Metro Underpayment of Estimated Tax Interest Waiver Due to Market-based Sourcing Apportionment

Tax Administration Policy - Multnomah County and Metro Underpayment of Estimated Tax Interest Waiver Due to Market-based Sourcing Apportionment

Metro Code Sections 7.05.270 and 7.05.280 and Multnomah County Code §§ 11.538 and 11.540, allow the administrator to waive penalty and interest for good cause by adoption of a written policy. This policy is adopted after consulting with Multnomah County’s Chief Financial Officer and Metro’s Chief Financial Officer.

Metro and Multnomah County adopted Market-based Sourcing of sales for apportionment for tax years beginning on or after January 1, 2023. Though rare, there may be circumstances where this change, combined with interactions between the business income taxes and personal income taxes, results in an underpayment of estimated taxes by an owner of a pass-through entity on the owner’s personal income tax return.

A taxfiler may submit a written waiver request of interest on that portion of underpayment of the required quarterly estimated tax on the personal income tax return that is attributable to the preceding circumstance.  The waiver will only be granted for the 2023 tax year. Interest on underpayment of tax properly imposed for any other purpose is not subject to this waiver.

03/14/2024                                  Tyler Wallace
Date                                              Director

Adopted: 03/14/2024