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Pipeline/2026-077
Ordinance Enacted 192163

Amend Business License Law Code to increase the business license tax gross receipts exemption (amend Code Section 7.02.400)

Final ActionMateriality · Tier CReadiness · Ready With Caveats
Official record
What is being decided?

Amend Business License Law Code to increase the business license tax gross receipts exemption (amend Code Section 7.02.400)

What happens next?

Derived from official scheduling fields

Where has it appeared?

4 Council session appearances; latest Apr 8, 2026.

Decision standard · Rules v1

Decision readiness

Ready With Caveats

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Decision definition

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Legal instrument

Official text was found in the reviewed record.

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Financial impact

The official impact statement includes financial information.

Complete
Funding source

Funding information appears in the impact statement; inspect the source for precision.

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Supporting documents

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Unknown
Implementation

Implementation language appears in the official text.

Complete
Document stability

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Alternative

Not found in the reviewed official text.

Assumption
  • The Council finds:The Business License Tax (BLT) gross receipts exemption is intended to allow small businesses to retain critical capital to help them flourish.The BLT gross receipts exemption has been $50,000 since January 1, 2007.The value of the exemption for helping small businesses flourish has eroded over time as a result of inflation.Based on tax year 2023 data, the most recent year for which complete data is available, increasing the BLT gross receipts exemption from $50,000 to $75,000 beginning in tax year 2026 is estimated to give 5,800 businesses $1.2 million in tax relief, an average of $207 each.Based on tax year 2023 data, the most recent year for which complete data is available, increasing the BLT gross receipts exemption from $75,000 to $100,000 beginning in tax year 2027 is estimated to give an additional 4,200 businesses $1.2 million in tax relief, an average of $286 each.65% of the businesses getting relief are sole proprietors.The Revenue Division administers the Multnomah County Business Income Tax (MCBIT) along with the City's Business License Tax.
Risk

Not found in the reviewed official text.

Dependency

Not found in the reviewed official text.

Evidence
  • The Council finds:The Business License Tax (BLT) gross receipts exemption is intended to allow small businesses to retain critical capital to help them flourish.The BLT gross receipts exemption has been $50,000 since January 1, 2007.The value of the exemption for helping small businesses flourish has eroded over time as a result of inflation.Based on tax year 2023 data, the most recent year for which complete data is available, increasing the BLT gross receipts exemption from $50,000 to $75,000 beginning in tax year 2026 is estimated to give 5,800 businesses $1.2 million in tax relief, an average of $207 each.Based on tax year 2023 data, the most recent year for which complete data is available, increasing the BLT gross receipts exemption from $75,000 to $100,000 beginning in tax year 2027 is estimated to give an additional 4,200 businesses $1.2 million in tax relief, an average of $286 each.65% of the businesses getting relief are sole proprietors.The Revenue Division administers the Multnomah County Business Income Tax (MCBIT) along with the City's Business License Tax.
Information Request

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Outcome Measure

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Official material

Documents

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Official page textRead

The City of Portland ordains. Section 1. The Council finds:The Business License Tax (BLT) gross receipts exemption is intended to allow small businesses to retain critical capital to help them flourish.The BLT gross receipts exemption has been $50,000 since January 1, 2007.The value of the exemption for helping small businesses flourish has eroded over time as a result of inflation.Based on tax year 2023 data, the most recent year for which complete data is available, increasing the BLT gross receipts exemption from $50,000 to $75,000 beginning in tax year 2026 is estimated to give 5,800 businesses $1.2 million in tax relief, an average of $207 each.Based on tax year 2023 data, the most recent year for which complete data is available, increasing the BLT gross receipts exemption from $75,000 to $100,000 beginning in tax year 2027 is estimated to give an additional 4,200 businesses $1.2 million in tax relief, an average of $286 each.65% of the businesses getting relief are sole proprietors.The Revenue Division administers the Multnomah County Business Income Tax (MCBIT) along with the City's Business License Tax. The MCBIT gross receipts exemption threshold is currently $100,000.The Governor's Tax Advisory Group, in its August 2025 report, provides several tax reform options for consideration. One of those options is to increase the BLT gross receipts exemption.Increasing the City's BLT gross receipts exemption threshold to conform to the MCBIT gross receipts threshold will increase small business profitability and reduce complexity and taxpayer confusion. NOW, THEREFORE, the Council directs:Amend City Code Section 7.02.400 as shown in Exhibit A.

Meeting-specific record

Motions, amendments & votes

3 vote records
Agenda item 6Passed as amendedAgenda item 6Passed to second reading as amendedAgenda item 17RescheduledAgenda item 2Referred to City Council
AmendmentPassed

Motion to amend the Ordinance as shown in Zimmerman 1: Moved by Zimmerman and seconded by Green. (Aye (11): Kanal, Pirtle-Guiney, Ryan, Koyama Lane, Morillo, Clark, Green, Zimmerman, Avalos, Smith, Dunphy; Absent (1): Novick) Passed to second reading as amended April 8, 2026 at 9:30 a.m.

MainPassed

Motion to refer the Ordinance, Document Number 2026-077, to City Council with the recommendation it be passed: Moved by Green and seconded by Pirtle-Guiney. (Aye (4): Avalos, Pirtle-Guiney, Green, Zimmerman; Absent (1): Novick)

Motion to amend the Ordinance as shown in Zimmerman 1: Moved by Zimmerman and seconded by Green. (Aye (11): Kanal, Pirtle-Guiney, Ryan, Koyama Lane, Morillo, Clark, Green, Zimmerman, Avalos, Smith, Dunphy; Absent (1): Novick) Passed to second reading as amended April 8, 2026 at 9:30 a.m.

Angelita MorilloYesCandace AvalosYesDan RyanYesElana Pirtle-GuineyYesEric ZimmermanYesJamie DunphyYesLoretta SmithYesMitch GreenYesOlivia ClarkYesSameer KanalYesSteve NovickAbsentTiffany Koyama LaneYes
Passed11 yes · 1 absent
Official impact statement

Money & effects

$2,400,000Stated Amount · keyword extracted$1,200,000Stated Amount · keyword extracted$100,000Stated Amount · keyword extracted$75,000Stated Amount · keyword extracted$50,000Stated Amount · keyword extracted
Purpose & background

This ordinance will increase the gross receipts exemption threshold and provide small businesses within the City some level of economic relief. It will align with Multnomah County's business income tax easing tax administration and taxpayer compliance.

Economic & real estate impacts

Not applicable.

Community impacts

This ordinance will reduce the initial impact of the BLT on startups and other small businesses within the City providing them an opportunity to grow or retain more profit. Many small businesses are started by individuals in neighborhoods with under-served populations.

Financial & budgetary impacts

Increasing the BLT gross receipts exemption from $50,000 to $75,000 beginning in tax year 2026 will decrease revenue by $1.2 million beginning in fiscal year 27-28. Increasing the BLT gross receipts exemption from $75,000 to $100,000 beginning in tax year 2027 will decrease revenue by an additional $1.2 million ($2.4 million total) beginning in fiscal year 28-29. No additional costs or staffing is needed to make this change.

100% renewable goal

Not applicable.

Follow-through

Implementation & accountability

Responsible organization

Revenue Division

Binding direction

NOW, THEREFORE, the Council directs:Amend City Code Section 7.02.400 as shown in Exhibit A.

Revenue Division · Observed
Append-only history

Timeline

  1. DOCUMENT PUBLISHED

    Observed in the official source.

  2. Council Action

    Passed as amended

  3. Council Action

    Passed to second reading as amended

  4. Council Action

    Rescheduled

  5. Council Action

    Referred to City Council