Tax season is coming up! In addition to the federal and state taxes everyone pays, there's a number of additional local taxes that are due next month.
Here’s a reminder you may may owe some local taxes too:
🎨 The Portland Arts Tax
Everyone in Portland age 18 years or older who lived some part of the last year in Portland and made at least $1,000 pays this tax. There are exemptions for people who don’t have taxable income; low-income exemptions are also available.
How much: $35 per person
Year voters approved it: 2012
How much it’s generated: $112 million in the program's first 11 years
What it pays for: Mostly it goes to fund art and music teachers at Portland elementary schools, but it also helps to fund local arts nonprofit organizations.
Updates: New City Council President Jamie Dunphy wants to reform the arts tax, maybe charging high-income Portlanders more and instituting a fee on streaming services.
🏠 Metro Supportive Housing Services
Individuals who report $125,000 in income or more have to pay this one. For couples filing jointly, the income threshold is $200,000.
It applies to everyone who lives and works inside the Metro region (within the growth boundary, and not in rural areas; you can check your address if you’re not sure).
How much: 1% on taxable income above $125,000 (or $200,000 for couples)
Year voters approved it: 2020
How much it’s generated: More than $250 million annually
What it pays for: It’s for helping fund services for people experiencing homelessness or for services to keep people housed.
Updates: The tax is in place till 2030, but last year’s effort to extend it to 2050 was abandoned.
🎒 Multnomah County Preschool for All Tax
The same income bracket as the Metro tax ($125,000 for individuals and $200,000 for couples filing jointly) have to pay up. It applies to anyone who lives or works in Multnomah County.
How much:1.5% (on income above $125,000 for individuals) and 3% above $200,000
Year voters approved it: 2020
How much it’s generated: Last year, Multnomah County brought in $224 million in revenue — about $60 million more than expected.
What it pays for: It pays for free preschool education for 3- and 4-year-olds in Multnomah County. The program is phasing in, prioritizing children who may need it most.
Update: After first working to repeal the tax, Gov. Tina Kotek is now launching a commission to study taking the effort statewide.
