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LIC-6.19 - Apportionment for Incomes Subject to PCC Chapters 7.12 or 7.14

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

If business activity is conducted both within and without Portland by a Portland Business License taxfiler subject to PCC Chapter 7.12 or 7.14, the net income is required to be apportioned using the single total gross income method. All gross incomes, including gross incomes subject to Chapters 7.12 and 7.14, are included in the denominator of the apportionment fraction. Incomes exempted under the Business License Law, such as gross revenue subject to Chapters 7.12 and 7.14, are excluded from the numerator of the apportionment fraction.

Example: XYZ Electric Utility, Inc. provides electricity to customers located inside and outside Portland city limits. XYZ also has business activity other than as an electric utility. XYZ must pay a business license tax for the other business activity it conducts. However, electric utility revenues subject to a franchise fee upon utility gross revenue received from utility customers (PCC 7.14) are exempt from the Business License Law. Apportionment is calculated as follows:


Total gross income (everywhere)                 $2,000,000
Utility revenue subject to PCC 7.14              $500,000
Other Portland gross income                       $100,000
Net Income                                               $1,000,000


Apportionment ($100,000 / $2,000,000) =  5%


Apportioned Income ($1,000,000 x .05) =   $50,000


License Tax ($50,000 x 2.2%) =                 $1,100



Portland City Code Section 7.02.400 H.
Portland City Code Section 7.02.610 D.2.
Portland City Code Chapter 7.14 Utility License Law

Originally adopted as Bureau of Licenses Administrative Rule 610.93-9 November 23, 1993.
Submitted for inclusion in PPD September 17, 2002.

Amended by Director of Revenue Bureau August 10, 2009.

Amended by Director of Revenue Division October 1, 2015.

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