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POL Government Elected Officials Auditor Griffin-Valade Charter, Code & Policies City Code & Charter Online Code & Charter Title 7 Business Licenses Chapter 7.02 Business License Law
7.02.500 Tax Rate.

 

A.  The tax established by the Business License Law is 2.2 percent of adjusted net income, except as provided in Subsections B. and C. of this section.

 

B.  Surcharges applicable to Tax Years 2002 through 2005.  The following surcharges are imposed in addition to the 2.2 percent tax established in Subsection A. above.  The proceeds of the surcharges are dedicated to supplementing the funding provided by the State to the public schools within the City, and allocated to all of the public school districts within the City of Portland.

 

1.  For the tax year beginning on or after January 1, 2002, a surcharge is imposed in the amount of 1 percent.   

 

2.  For tax year beginning on or after January 1, 2003, a surcharge is imposed in the amount of 0.4 percent. 

 

3.  For tax year beginning on or after January 1, 2004, a surcharge is imposed in the amount of 0.4 percent. 

 

C.  Surcharge applicable to Tax Years 2006 through 2007.  The following surcharges are imposed in addition to the 2.2 percent tax established in Subsection A. above.  The proceeds of the surcharges are dedicated to supplementing the funding provided by the State to the public schools within the City, and allocated to all of the public school districts within the City of Portland. The proceeds of the surcharges must be used by the school districts only for programs and activities on which the City is authorized to expend funds pursuant to its charter and state law.

 

1.    For the tax year beginning on or after January 1, 2006, a surcharge is imposed in the amount of 0.14 percent. 

 

2.    No penalties or interest for failure to make quarterly estimated payments in the amount of the surcharge will be charged or imposed for the 2006 tax year. 

 

3.    For the tax year beginning on or after January 1, 2007, a surcharge is imposed in the amount of .07 percent.  

 

4.    If the surcharges raise more than $9 million plus City costs but less than $9.5 million plus City costs for the 2006 and 2007 tax years combined, the excess over $9 million, less City costs, will be dedicated to public schools within the City as provided in Subsection C. of this Section.  If the surcharges raise more than $9.5 million plus City costs for the 2006 and 2007 tax years combined, the excess over $9 million, less City costs, will be retained as a credit for taxes due in a later tax year. The Director will apply the credit to taxes due no later than the 2010 tax year. The Director has the sole discretion to determine the method of calculating and distributing credits.