Portland City Council Scheduled to Vote on Increasing the Business Income Tax Exemption Wednesday - Let Them Know You Support the Increase!

The Portland City Council is scheduled to vote on an increase to the business license income tax exemption on Wednesday, April 1st, at 9:30. Doing so will result in a tax decrease for many small businesses within the city.

We urge you to let City Councilors know that there is broad support for such an increase by submitting testimony in person or in writing.

Click here to submit written comments or register to testify in person.

Points to emphasize:

• Portland is facing very strong economic headwinds, the strongest of which is having one of the nation’s highest levels of taxation on business owners.
  

• The proposal, initiated by Mayor Keith Wilson, would raise the exemption level from $50,000 to $75,000 immediately, and to $100,000 in 2027. The result will be more small and medium-sized businesses qualifying to pay no city income tax on their income up to the new limit.

• The business license income tax exemption has been at $50,000 since 2007. Nearly two decades of inflation have eroded its value, meaning very small businesses are paying taxes sooner than originally intended.
  

• This change aims to reduce the tax burden on local businesses, especially those still recovering from the economic challenges of recent years. By increasing the exemption, the City would send a signal that it wants to encourage entrepreneurship, support existing businesses, and attract new companies to the city.
  

• Small businesses with incomes just above the previous exemption limit would save thousands of dollars annually.
  

• These savings could fund new hires, equipment upgrades, or marketing efforts.
  

• The exemption increase would help reduce the risk of business closures.
  

• A more competitive tax environment would encourage startups and attract outside investment.