First Year Adjustment Credit Explanation Letters

With the passage of Ordinance #182137 by Portland City Council on August 20, 2008, the City of Portland Business License became a tax based on the prior tax year’s income. This ordinance included the addition of Portland City Code Section 7.02.860. This section creates a credit for some businesses as a part of the transition from a paid-in-advance license fee to an after-the-fact license tax. In late October, 2008, the Revenue Bureau sent a letter to explain the credit and to provide a calculation of the credit amount. Some business were notified that there would be no credit available to them. Copies of the two letters, without calculated amounts, are at the links below.

Letter Explaining that No Credit is Available

Letter Explaining First Year Adjustment Credit

Subsequently, Ordinance # 182427 was passed on December 17, 2008 changing the 5 year, 20% credit to a single year, 100% credit. In January, 2009 the Bureau sent out an additional letter to taxpayers who were entitled to a credit. This letter explained that the entire credit should be taken on their 2008 return. A copy of this letter, without calculated amounts, is at the link below.

Letter Explaining the Change from a Five-year Credit to a One-year Credit