On Tuesday May 19, 2020, greater Portland area voters passed the Metro ballot Measure 26-210 to raise money for housing services for individuals and families experiencing or at risk of experiencing homelessness.
The measure will impose a 1% tax on qualifying individuals and businesses located and/or working in Clackamas, Multnomah, and Washington counties. Individuals living in the metro area will owe a 1% tax on taxable income in excess of $125,000 for single filers or $200,000 for those married filing joint. Individuals living outside of the metro area but with earned income from the metro area in excess of $125,000 for single filers or $200,000 married filing joint will also owe the 1% tax.
Businesses with worldwide gross receipts in excess of $5 million will also owe a 1% tax on profits earned in the metro area. Businesses with revenue less than $5 million will be exempt from the tax.
Further clarification is needed as to the specific calculation of earned profit and if an apportionment method will be applied for non-resident individuals and businesses.
The tax is effective January 1, 2021, and is set to be in place for 10 years, ending in 2030. The first annual tax filing will occur in April 2022. Additional information is expected from the Metro Council on implementation.
