Multnomah County and Metro have launched two new tax programs for the greater Portland community that will help fund housing services for people experiencing homelessness and establish a tuition-free preschool program.
The Supportive Housing Services fund was approved by Metro voters in May 2020; it is the first business and personal income tax for Metro. The program collects a 1% tax on personal taxable income above $125,000 for individuals and $200,000 for those filing jointly, and a 1% tax on net income for businesses with gross receipts above $5 million. This tax applies to residents in Metro's jurisdiction and, for non-residents, income earned within Metro's jurisdiction. Metro's jurisdiction roughly aligns with the urban growth boundary; Metro has an address look-up tool on its Supportive Housing Services website. This tax will fund supportive housing services in Clackamas, Multnomah and Washington counties for people experiencing, or at risk of experiencing, homelessness.
The Preschool for All Program was approved by voters in November 2020, funding from which will establish a tuition-free, high quality preschool program in Multnomah County. The Preschool for All tax is a personal income tax program for Multnomah County, which taxes 1.5% on personal taxable income above $125,000 for individuals and $200,000 for joint filers, and an additional 1.5% on personal taxable income above $250,000 for individuals and $400,000 for joint filers. This tax applies to residents of Multnomah County and to non-residents with income earned within Multnomah County.
The City of Portland’s Revenue Division is now administering both of these new tax programs on behalf of Metro and Multnomah County. The Supportive Housing Services and Preschool for All Personal income tax programs went into effect on January 1, 2021. The programs went live for withholding, quarterly estimated payments, and registration on March 29, 2021. Annual filing for 2021 is available now.
Businesses, employers, and taxpayers subject to these taxes are required to begin filing and withholding in 2022. You can remit payments and/or register at Portland Revenue Online. Forms and vouchers for these programs are available at Portland.gov/Revenue/Forms. For further questions regarding requirements, please reach out to the Revenue Division, at (503) 823-5157 or BizTaxHelp@portlandoregon.gov.
Learn more about these taxes and the programs they will fund: