POL Government Elected Officials Auditor Mary Hull Caballero Charter, Code & Policies Policies & Rules (PPD) Licensing & Income Taxes Income
LIC-6.15 - Apportionment for Banking Income

Administrative Rule Adopted by Revenue Bureau Pursuant to Rule-Making Authority

If income from banking activities (defined as the receiving or accepting of money or its equivalent on deposit as a regular business activity – including such activities engaged in by Banking Organizations and by Savings and Loan Organizations) is derived from business activity both within and without the City of Portland and/or Multnomah County, the determination of City or County gross income is arrived at by a formula comparing deposits in the City or County to deposits everywhere.  Deposits are defined as average daily deposits--net of all public funds, all treasury tax and loan deposits, all correspondent bank deposits, and money orders or official checks.  Upon determining deposits locally and everywhere, the following formula is used:


Gross income everywhere is the denominator of the apportionment fraction.  The numerator of the apportionment fraction is determined by adding City/County gross banking income and City or County gross income from other non-banking business income.

The formula to determine local (within Portland or Multnomah County) banking gross income is:
Local Deposits X Total = Local
------------------------ Banking Banking
Deposits Everywhere Receipts 1 Income
Gross income earned in Portland or Multnomah County from income producing activity other than banking income is added to the City or County gross income derived from banking activity.
Example: XYZ BANK, INC. (consolidated with ZZZ Rental Corporation).
1. Total Consolidated Gross Income = $50,000,000
2. Total Banking Gross Income = $35,000,000
3. Total Deposits = $500,000,000
4. County Deposits = $25,000,000
5. County Gross Income of ZZZ Corp = $100,000 (non–banking gross)
6. County Banking Gross Income
25,000,000(#4)/500,000,000(#3) X 35,000,000(#2)= $1,750,000
7. TOTAL COUNTY INCOME (#5 + #6) = $1,850,000
1 Total Banking Receipts as included in Oregon Form 20, Schedule C-1.


Portland City Code Section 7.02.610 C.
Multnomah County Code Section 12.610 C.


Submitted for inclusion in PPD September 17, 2002.
Originally adopted as Bureau of Licenses Administrative Rule 610.93-5 November 23, 1993 and amended as 610.93-5A December 26, 2000.

Revised administrative rule adopted by Director of Revenue Bureau August 10, 2009.

Table of Contents
LIC-6.01 - Payments Deemed to be Compensation to Owners
LIC-6.02 - Self-Employment Tax Deduction and Health Care Premium Deduction
LIC-6.03 - Change of Ownership During the Year and Calculation of the Compensation Allowance Deduction
LIC-6.04 - Patronage Dividends
LIC-6.05 - Short Periods Count as Tax Year
LIC-6.06 - Definition of Controlling Shareholders and Calculation of Number of Controlling Shareholders
LIC-6.07 - Treatment of Currently Taxed Pass-Through Income
LIC-6.08 - Partnerships - Partner Level Deduction Election
LIC-6.09 - Qualified Retirement Plans
LIC-6.10 - De Minimus Business Activity for Personal Services
LIC-6.11 - Apportionment of Gains and Incomes Due to Sale of a Business
LIC-6.12 - Business Activity and Apportionment of Sales of Tangible Personal Property
LIC-6.13 - De Minimus Business Activity for Tangible Personal Property
LIC-6.14 - Apportionment of Gross Income from Business Activities Other than Sales of Tangible Personal Property
LIC-6.15 - Apportionment for Banking Income
LIC-6.16 - Apportionment for Domestic Insurers
LIC-6.17 - Apportionment for Freight Carriers
LIC-6.18 - Apportionment for Passenger Carriers
LIC-6.19 - Apportionment for Incomes Subject to PCC Chapters 7.12 or 7.14
LIC-6.20 - Apportionment for Providers of Electronic or Telephonic Services