Tax Administration Policy - Personal Income Tax Interest Rates on Tax Due and Refunds

Purpose

This policy applies to Multnomah County's Preschool for All personal income tax setting interest rates on deficiencies and refunds.

Policy

Multnomah County's (Multnomah) Preschool for All tax code sets an annual interest rate of 10% (or monthly interest rate of 0.833%) on tax due and on refunds. The code also allows the administrator to adopt the interest rate used by the Oregon Department of Revenue by written policy. The interest rate may only be changed once each calendar year.

The Oregon Department of Revenue (DOR) reviews and determines its interest rate once each year effective on January 1 of each year. The Revenue Division will review DOR's interest rate each year when that determination is made. If the difference between the Revenue Division's interest rate and DOR's interest rate for a year is more than or less than DOR's interest rate by at least one percentage point, the Revenue Division will match DOR's interest rate and be effective on April 15 of that same year.

The interest rate applicable for each calendar year is as follows:

References:
Multnomah County Code Section 11.538

01/16/2026                                          Thomas Lannom
Date                                                     Revenue Division Director

History:
Adopted: 04/06/2023
Amended: 02/20/2024, 02/13/2025, 01/16/2026