Oregon Metro recently released new guidance around how the new Supportive Housing Metro Tax will be administered. Voters approved the 1 percent income tax for those earning more than $125,000, couples earning $200,000, and businesses with gross receipts of more than $5 million in May of this year and it will go into effect January 1, 2021.
Included with the updated guidance is an initial list of FAQs. A few highlights of this document include Metro’s jurisdiction, double taxation concerns, and the expected release of administrative rules.
The first set of rules are expected to be released this fall. The tax will be administrated by the City of Portland, thus we anticipate this tax will not be able to be electronically filed in the short-term.
For individuals, the starting point to calculate the tax will be Oregon taxable income. While it is currently unclear how the tax will avoid double taxation of pass-through income, leaders are aware of the issue and we expect additional clarity in the fall 2020 rules.
Businesses with more than $5 million of gross receipts should expect to pay the tax and use similar apportionment rules as are used for Multnomah County Tax. Estimated payments will be required.
The FAQ document is a good place for individuals and businesses to start preparing for the new tax. While the guidance is incomplete, it lays the foundation for future rules and regulations.
More Information Coming Soon
Our team is monitoring these updates closely and will continue to provide relevant information as it becomes available. If you have questions about this new tax or how it affects you or your business, reach out to your Aldrich Advisor.
Meet the Author
Sara Northcutt, CPA
Aldrich CPAs + Advisors LLP
Sara Northcutt joined the firm in 2005 and has more than a decade of experience working on a wide range of clients, including financial lending, private equity, real estate, and other closely held businesses. Sara specializes in multi-state tax compliance. Sara received her Bachelor of Arts degree from Vanguard University of Southern California and did her…
- Closely-held businesses
- Certified Public Accountant
- Strategic tax planning and compliance