[Ord. 20-1454]
The purpose of this chapter is to provide consistent, efficient and transparent administration of Metro’s Business Income Tax Law and Personal Income Tax Law (collectively, “Metro’s Income Tax Laws.”). The provisions of this chapter apply to the administration of both the Business Income Tax Law and Personal Income Tax Law, as applicable, unless Chapter 7.06 or Chapter 7.07 specifically exempts a provision.
[Ord. 20-1454; Ord. 21-1465; Ord. 22-1485]
For the purpose of this chapter and Metro Code Chapters 7.06 and 7.07, the terms used are defined as provided in this section unless the context requires otherwise.
ADMINISTRATOR
Means Metro’s agent for purposes of administering and enforcing the Business and Personal Income Tax Laws.
APPEALS BOARD
Means the hearings body designated by the Administrator to review taxfiler appeals from final determinations by the Administrator.
BUSINESS
Means an enterprise, activity, profession or undertaking of any nature, whether related or unrelated, by a person in the pursuit of profit, gain or the production of income, including services performed by an individual for remuneration, but does not include wages earned as an employee.
BUSINESS INCOME
Has the same meaning as “apportionable income” defined in Oregon Revised Statutes 314.610.
BUSINESS INCOME TAX LAW
Means the taxes imposed on businesses under the provisions of Metro Code Chapter 7.07.
CHIEF FINANCIAL OFFICER
Means the Metro Chief Financial Officer and the Officer’s designee(s).
CHIEF OPERATING OFFICER
Means the Metro Chief Operating Officer and the Officer’s designee(s).
DISTRICT
Means all the territory within the jurisdictional boundary of Metro as provided by law.
DOING BUSINESS
Means to engage in any activity in pursuit of profit or gain, including but not limited to, any transaction involving the holding, sale, rental or lease of property, the manufacture or sale of goods or the sale or rendering of services other than as an employee. Doing business includes activities carried on by a person through officers, agents or employees as well as activities carried on by a person on their own behalf.
DOMICILE
Means the place an individual considers to be the individual’s true, fixed, permanent home. Domicile is the place a person intends to return to after an absence. A person can only have one domicile at a given time. A person’s domicile continues as their domicile until the person demonstrates (1) an intent to abandon the current domicile and acquire a new domicile, and (2) then actually resides in the new domicile. Factors that contribute to determining domicile include family, business activities and social connections. A person is domiciled in the District if the person’s domicile is located within the District.
EMPLOYEE
Means any individual who is classified for Oregon tax purposes as an employee.
GROSS RECEIPTS
Means all income from whatever source derived.
INDIVIDUAL
Means a natural person, including a natural person who reports that person’s income to the State of Oregon in a joint personal State income tax return. In such case, Individual refers to the joint taxfiler.
METRO
Means the Metropolitan Service District of the Portland metropolitan area, a municipal corporation established and existing pursuant to Section 14 of Article XI of the Oregon Constitution, ORS Chapter 268 and the Metro Charter.
METRO INCOME TAX LAWS
Means, collectively, the Business Income Tax Law, the Personal Income Tax Law and the code chapters and administrative rules that administer and govern those taxes.
METRO TAXABLE INCOME
Means income attributable to sources within the District less deductions from income attributable to sources within the District. This includes, but is not limited to:
(a) 
Wages received by a nonresident taxfiler attributable to work performed within the District;
(b) 
Items reported to a nonresident taxfiler attributable to the taxfiler’s ownership interest in a pass-through entity that does business in the District and reports tax items attributable to that ownership interest to the taxfiler on a Schedule K-1; and
(c) 
Income and expenses from a sole proprietorship or disregarded entity attributable to business in the District and reported on a nonresident taxfiler’s individual return.
NET OPERATING LOSS
Means the negative taxable income that may result after the deductions allowed by the Business Income Tax Law in determining net income for the tax year.
NONBUSINESS INCOME
Has the same meaning as “nonapportionable income” defined in Oregon Revised Statutes 314.610.
NONRESIDENT
Means an individual who is not a resident of the District.
NOTICE
Means a written document mailed by first class by the Administrator or District to the last known address of a taxfiler as provided to the Administrator or District in the latest registration form or tax return on file with the Administrator. Alternatively, notice may be delivered in person, by facsimile, email, or other means with taxfiler consent.
OREGON TAXABLE INCOME
Means the taxable income of residents or part year residents as reported or as reportable to the State of Oregon for personal income tax purposes.
PART-YEAR RESIDENT
Means a taxfiler who changes status during a tax year from resident to nonresident or from nonresident to resident.
PERSON
Means, but is not limited to, an individual, a natural person, married couple filing jointly, proprietorship, partnership, limited partnership, family limited partnerships, association, cooperative, trust, estate, corporation, personal holding company, limited liability company, limited liability partnership or any other form of organization for doing business. Each person who is not a natural person must designate a natural person in writing as its designated representative who is authorized to act and testify on behalf of such person.
PERSONAL INCOME TAX LAW
Means the personal income taxes imposed on District residents and nonresidents under the provisions of Metro Code Chapter 7.06.
RECEIVED
Means the postmark date affixed by the United States postal service if mailed, the date stamp if delivered by hand or sent by facsimile, or the receipt date from the online file and pay application confirmation notice.
RESIDENT
Means (1) an individual whose domicile is within the District for the entire taxable year unless the individual maintains no permanent place of abode in the District, does maintain a permanent place of abode outside of the District, and spends on aggregate not more than 30 days per tax year in the District; or, (2) an individual who is not domiciled in the District but maintains a permanent place of abode in the District and spends in the aggregate more than 200 days or any part of a day of the tax year in the District unless the individual proves that the individual is in the District for only a temporary or transitory purpose. Resident does not include: an individual who is a qualified individual under section 911(d)(1) of the Internal Revenue Code for the tax year; the spouse of a qualified individual under Section 911(d)(1) of the Internal Revenue Code, if the spouse is not a resident of the District; a resident alien under section 7701(b) of the Internal Revenue Code who would be considered a qualified individual under Section 911(d)(1) of the Internal Revenue Code if the resident alien were a citizen of the United States; a member of the Armed Forces who performs active service as defined in 10 U.S.C. 101(d)(3), other than annual training duty or inactive-duty training, if the member’s residency as reflected in the payroll records of the Defense Finance and Accounting Service is outside the District.
TAX YEAR
Means the taxable year of a person for Federal or State income tax purposes.
TAXFILER
Means any person whose income in whole or in part is subject to Metro Income Tax Laws and is required to file a return under Metro Income Tax Laws.
[Ord. 20-1454]
(a) 
The Administrator will construe the Business Income Tax Law, when applicable, in conformity with the laws and regulations that govern the Multnomah County Business Income Tax as those laws existed for that tax year. The Administrator will construe the Personal income Tax Law, when applicable, in conformity with the laws and regulations of the State of Oregon imposing taxes on or measured by net income as those laws existed for that tax year.
(b) 
Any interpretation under subsection (a) may not conflict with any provision of this chapter, Chapter 7.06, or Chapter 7.07.
(c) 
The Administrator has the authority by written policy to connect to or disconnect from any legislative enactment regarding income or excise taxation or the definition of income.
[Ord. 20-1454]
The taxes imposed by Chapter 7.06 and Chapter 7.07 apply to all taxpayers that have substantial nexus with the District, subject only to constitutional limitation on Metro’s authority.
[Ord. 20-1454]
(a) 
The taxes imposed by Chapter 7.07 and Chapter 7.06 become a debt due to Metro at the time such liability for the tax is incurred. This includes any penalties and interest.
(b) 
The Chief Financial Officer or Administrator is authorized to collect any deficient taxes, interest and penalties owed. This includes initiating and defending any civil actions and other legal proceedings.
(c) 
Metro or the Administrator, as appropriate, may assign a delinquent tax account to a collection agency for collection.
(d) 
Any assignment to an outside collection agency is subject to a reasonable collection fee, as allowed by law, above and beyond any amount owed to Metro.
[Ord. 20-1454]
(a) 
The Administrator is the administrator of record and has the authority to administer and enforce the Metro Income Tax Laws including, but not limited to, administrative return processing, auditing, and determinations; collection of taxes, penalties and interest (including instituting legal action in any court of competent jurisdiction by or on behalf of Metro); and protests and appeals.
(b) 
The Administrator has access to and maintains all tax filings and records under this chapter and the Metro Income Tax Laws on behalf of Metro. The Administrator may, upon taxfiler’s written request and at the sole discretion of the Administrator, interpret how this chapter or the Metro Income Tax Laws apply to taxfiler’s facts and circumstances. Nothing in this chapter or Chapters 7.06 and 7.07 preclude or is intended to preclude, the informal disposition of controversy by stipulation or agreed settlement, through correspondence or a conference with the Administrator.
[Ord. 20-1454; Ord. 23-1492]
(a) 
The Administrator may adopt procedures, forms, and written policies to administer the provisions of the Business Income Tax Law and Personal Income Tax Law.
(b) 
The Administrator will coordinate with Metro to adopt administrative rules relating to matters within the scope of this chapter to administer compliance with the Business Income Tax Law and Personal Income Tax Law.
[Ord. 20-1454]
Metro is the sole owner of all taxfiler information under the authority of the Metro Income Tax Laws. The Chief Operating Officer, Metro Attorney, Chief Financial Officer, Administrator, and their agents have the right to access all taxfiler information for purposes of administration.
[Ord. 20-1454; Ord. 24-1514]
(a) 
Except as otherwise specifically provided by Oregon law or Metro Code, it is unlawful for the Administrator or any Metro officer, employee, or agent to divulge or make known in any manner the amount of income, expense, deduction, exclusion or credit or any particulars set forth or disclosed in any report or return required in the administration of the Metro Income Tax Laws.
(b) 
It is unlawful for any person or entity to whom Metro or the Administrator has given information pursuant to 7.05.100 to divulge or use that information for any purpose other than that specified in Metro Code.
(c) 
As set forth in ORS 314.835, neither Metro nor the Administrator are required to comply with a subpoena or judicial order seeking Metro income tax information unless the court issuing the subpoena or judicial order is the court adjudicating the taxpayer’s liability for income tax.
(d) 
The confidentiality rules and requirements in this section apply for the purposes of public records disclosure in ORS 192.311 to 192.478.
(e) 
As used in this section:
OFFICER, EMPLOYEE or PERSON
Includes an authorized representative of the officer, employee or person, or any former officer, employee or person, or an authorized representative of the former officer, employee or person.
PARTICULARS
Includes, but is not limited to, a taxfiler’s name, address, telephone number, Social Security number, employer identification number or other taxpayer identification number, the amount of refund claimed by or granted to a taxpayer, and whether a report or return has been filed.
(f) 
Metro will construe this section’s provisions in conformity with the intent of ORS 314.835 as applicable.
(g) 
Any person that violates this section may be subject to criminal penalties as set forth in Section 7.05.240.
[Ord. 20-1454; Ord. 24-1514]
(a) 
The Administrator or Metro Chief Operating Officer may:
(1) 
Furnish any taxfiler or authorized taxfiler representative, upon request of the taxfiler or representative, with a copy of the taxfiler’s tax return filed with the Administrator for any year, or with a copy of any report filed by the taxfiler in connection with the return, or with any other information the Administrator considers necessary.
(2) 
Publish lists of taxfilers who are entitled to unclaimed tax refunds.
(3) 
Publish statistics so classified as to prevent the identification of income or any particulars contained in any report or return.
(4) 
Disclose a taxfiler’s name, address, telephone number, refund amount, amount due, Social Security number, employer identification number or other taxfiler identification number to the extent necessary in connection with collection activities or the processing and mailing of correspondence or of forms for any report or return required in the administration of Metro Tax Laws.
(b) 
The Administrator or Metro Chief Operating Officer may disclose and give access to information described in Section 7.05.090 to:
(1) 
The Commissioner of Internal Revenue or authorized representative, for tax administration and compliance purposes only.
(2) 
The Oregon Department of Revenue or authorized representative, for tax administration and compliance purposes only.
(3) 
For tax administration and compliance purposes, the proper officer or authorized representative of any of the following entities that has or is governed by a provision of law that meets the requirements of any applicable provision of the Internal Revenue Code as to confidentiality:
(A) 
A state,
(B) 
A city, county or other political subdivision of a state,
(C) 
The District of Columbia, or
(D) 
An association established exclusively to provide services to federal, state or local taxing authorities.
(4) 
The Metro Attorney, the Attorney’s assistants and employees, or other legal representatives of Metro, to the extent access is necessary to advise or represent the Administrator or Metro, including but not limited to instituting legal actions on unpaid accounts.
(5) 
The Administrator’s attorney, the attorney’s assistants and employees, or other legal representatives of the Administrator, to the extent the Administrator deems disclosure or access necessary for the performance of the duties of advising or representing the Administrator, including but not limited to instituting legal actions on unpaid accounts.
(6) 
The proper officer or authorized representative of a city, county, or other subdivision of this state, to the extent the Administrator or Chief Operating Officer deems disclosure or access necessary for purposes of mutual tax administration of city, county, or other subdivision taxes. Any disclosure under this subsection may be made only pursuant to a written agreement between Metro and the city, county, or other subdivision that ensures the confidentiality of the information disclosed.
(7) 
Other employees, agents and officials of the Administrator or Metro, to the extent the Administrator or the Chief Operating Officer deems disclosure or access necessary for such employees, agents, or officials to:
(A) 
Aid in any legal collection effort on unpaid accounts,
(B) 
Perform their duties under contracts or agreements between the Administrator or Metro and any other department, bureau, agency or subdivision of the Administrator or Metro relating to the administration of the Metro Income Tax Laws, or
(C) 
Aid in determining whether a taxfiler complies with all Metro, City of Portland, Multnomah County, State and Federal laws or policies.
(8) 
Other persons, partnerships, corporations and other legal entities, and their employees, to the extent the Administrator deems disclosure or access necessary for the performance of such others’ duties under contracts or agreements between the Administrator and such legal entities, in the Administrator’s administration of the tax laws.
(9) 
The Administrator’s appeals board, per Section 7.05.160, is authorized to receive relevant tax information for the purpose of considering and issuing decisions with respect to appeals of taxfilers to the Administrator’s actions.
(c) 
Prior to the performance of duties involving access to financial information submitted to Metro or the Administrator under the terms of the Personal Income Tax Law or Business Income Tax Law, all employees and agents specified in subsections (b)(4)-(b)(9) above must be advised in writing of Section 7.05.240 relating to penalties for the violation of Sections 7.05.090 and 7.05.100. Those employees and agents must execute a certificate in a form prescribed by the Chief Operating Officer or Administrator, stating that the person has reviewed these provisions of law, has had them explained, and is aware of the penalties for the violation of Sections 7.05.090 and 7.05.100.
(d) 
No person described in subsection (b)(1)-(b)(3) to whom disclosure or access to financial information has been given may make a disclosure under this section unless that person:
(1) 
Is advised in writing of Section 7.05.240 relating to penalties for the violation of Section 7.05.090; and
(2) 
Executes a certificate in a form prescribed by the Chief Operating Officer or Administrator, stating these provisions of law have been reviewed and that person is aware of the penalties for the violation of Section 7.05.090. The Chief Operating Officer’s or Administrator’s signature on the certificate, required by this subsection, constitutes consent to disclosure to the persons executing the certificate.
[Ord. 20-1454]
Third parties, such as attorneys or certified public accountants, may represent taxfilers before the Administrator. The Administrator may establish procedures for taxfilers to authorize a third party to represent the taxfiler, which may include a written authorization submitted to the Administrator. The Administrator is not required to recognize a third party who claims to represent a taxfiler if that third party does not comply with the established procedures.
[Ord. 20-1454]
(a) 
No employee or official of Metro, the Administrator, or any public agency authorized to collect taxes imposed by this chapter may represent any taxfiler in any matter before the Administrator. This restriction against taxfiler representation continues for two years after termination of employment or official status.
(b) 
Members of the appeals board may not represent a taxfiler before the appeals board. No member of the appeals board may participate in any matter before the board if the appellant is a client of the member or the member's firm.
[Ord. 20-1454]
(a) 
The Administrator may require a taxfiler to produce documents. The Administrator may also examine any books, papers, records, or memoranda, including State and Federal income or excise tax returns, to ascertain the correctness of any tax return or to make an estimate of any tax. The Administrator has the authority, after notice, to:
(1) 
Require the attendance of any person required to file a tax return under the Metro Income Tax Laws, or officers, agents, or other persons with knowledge of the person's business operations, at any reasonable time and place the Administrator may designate;
(2) 
Take testimony, with or without the power to administer oaths to any person required to be in attendance; and
(3) 
Require proof for the information sought, necessary to carry out the provisions of this chapter.
(b) 
The Administrator will designate the employees who have the power to administer oaths under this section.
[Ord. 20-1454]
(a) 
The Administrator may subpoena and examine witnesses, administer oaths, and require the production of any books or papers in the hands of any person, company or corporation, whenever necessary for the prosecution of any inquiries deemed necessary or proper.
(b) 
If any person fails to comply with any subpoena of the Administrator or refuses to testify when the Administrator requires that person to testify, the Administrator may apply to a court of competent jurisdiction for an order to the person to produce the books and papers or attend and testify, or otherwise comply with the demand of the Administrator.
(c) 
The Administrator will apply to the court by ex parte motion, upon which the court will make an order requiring the person against whom it is directed to comply with the Administrator’s request or demand within 10 days after the service of the order, or within the additional time granted by the court, or to justify the failure within that time. The order will be served upon the person to whom it is directed in the manner required by the State of Oregon or other applicable jurisdiction for service of process, which is required to confer jurisdiction upon the court.
(d) 
Upon petition of the person subpoenaed, the court will make an order determining if the evidence sought by the subpoena is relevant to the pending proceeding and, if requested by the person subpoenaed, an order as required in the interests of justice to protect the confidentiality of the information subpoenaed. Upon failure of the subpoenaed person to show cause for noncompliance, the court will make an order requiring the person to comply with the demand of the Administrator within such time as the court directs.
(e) 
Failure to obey any order issued by the court under this section is contempt of court. The remedy provided by this section is in addition to other remedies, civil or criminal, that may exist.
(f) 
The Administrator will designate the employees who have the power to administer oaths under this section.
[Ord. 20-1454]
Every person required to file a return under the Business Income Tax Law or Personal Income Tax Law must keep and preserve for not less than seven years such documents and records, including State and Federal income and excise tax returns, accurately supporting the information reported on the taxfiler's return and calculation of tax for each year.
[Ord. 20-1454]
(a) 
The Administrator may assess deficiencies and grant refunds any time within the periods set forth for deficiencies or refunds under ORS Chapter 314. The Administrator may by agreement with the taxfiler extend the time periods to the same extent as provided by statute.
(b) 
When no tax return has been filed, there is no time limit for a notice of deficiency or the assessment of taxes, penalty and interest due.
(c) 
Notwithstanding subsections (a) and (b), the Administrator is not required to accept any tax return for any tax period from a taxfiler if:
(1) 
The Administrator obtains a money judgment against the taxfiler for failure to pay an unpaid account balance due; and
(2) 
The Administrator or its designee lawfully served the taxfiler with the lawsuit pursuant to the Oregon Rules of Civil Procedure; and
(3) 
The tax return is for a taxable year that is the subject of the general money judgment; and
(4) 
The Administrator gave written notice stating that the taxfiler had an outstanding balance due at least 30 days before the Administrator (or its designee) filed a lawsuit for those particular taxable years.
[Ord. 20-1454; Ord. 22-1485; Ord. 23-1492; Ord. 24-1521]
(a) 
A taxfiler may protest any determination by the Administrator. The Administrator must receive written notice of the protest within 30 days after the Administrator mailed or delivered the initial notice of determination to the taxfiler. The protest must state the name and address of the taxfiler and an explanation of the general grounds for the protest. The Administrator for good cause may extend the time to file a protest. The Administrator must receive requests for extension of time before the original 30-day protest deadline ends. Failure to file a written notice within the time permitted is deemed a waiver of any objections and the Administrator will dismiss the appeal.
The Administrator must respond with a final determination within 180 days after the taxpayer files the protest. The Administrator's final determination must include the reasons for the determination and state the time and manner for appealing the final determination. The Administrator may for good cause extend the time for the Administrator's response. The Administrator will give written notice to the taxfiler if the Administrator's deadline is extended. Failure to issue a final determination within the time permitted does not invalidate any deficiency but it will invalidate the imposition of interest and penalties attributable to the deficiency.
(b) 
A taxfiler may appeal any final determination by the Administrator to the appeals board. The Administrator must receive written notice of the appeal within 30 days after the Administrator mailed or delivered the final determination to the appellant. The notice of appeal must state the name and address of the appellant and include a copy of the final determination.
(c) 
Within 90 days after the Administrator mails or delivers the final determination to the appellant, the appellant must file with the appeals board a written statement containing:
(1) 
The reasons the Administrator's determination is incorrect; and
(2) 
What the correct determination should be.
Failure to file this written statement within the time permitted is a waiver of any objections, and the appeal will be dismissed.
(d) 
Within 150 days after the Administrator mails or delivers the final determination to the appellant, the Administrator will file with the appeals board a written response to the appellant's statement. A copy of the Administrator's response must be mailed to the address provided by the appellant within 10 days after the Administrator files it with the appeals board.
(e) 
The Administrator must provide the appellant written notice of the hearing date and location at least 14 days before the hearing. The appellant and the Administrator may present relevant testimony, evidence, and oral argument at the hearing. The appeals board may request additional written comment and documents as the board deems appropriate.
(f) 
Decisions of the appeals board must be in writing, state the basis and legal authority for the decision and be signed by the appeals board chair.
(g) 
The decision of the appeals board is final as of the issue date and no further administrative appeal will be provided.
(h) 
The filing of an appeal with the appeals board temporarily suspends the obligation to pay any tax that is the subject of the appeal pending a final decision by the appeals board.
(i) 
Penalty waiver or reduction requests are not subject to the protest/appeal process or timeline outlined in Section 7.05.160(a) through (h). The taxfiler must file a written request with the Administrator detailing why a penalty should be waived within 30 days of receipt of a billing notice that assesses a penalty. The Administrator must respond to requests to reduce or waive penalties within 180 days from the date the written request is received. If the taxfiler has requested that penalties be waived and the Administrator denies the taxfiler's request for this discretionary waiver of penalties, the taxfiler may request a conference with the Administrator (or Administrator's designee) within 30 days of the date of the Administrator’s notice of denial. If the conference with the Administrator results in a denial of the penalty waiver request, that decision is final and may not be appealed to the Appeals Board.
[Ord. 20-1454; Ord. 23-1503]
(a) 
Tax returns must be on forms provided or approved by the Administrator. All tax returns must be filed together with payment of the specified tax by the fifteenth day of the fourth month following the end of the tax year. If the due date falls on a weekend or Federal or State holiday, the due date is the first business day following the weekend or holiday. With respect to the Business Income Tax Law, for cooperatives and non-profit corporations that have later due dates under Oregon tax law, the due date for filing tax returns with the Administrator must conform to the due date under Oregon tax law.
(b) 
The Administrator may, for good cause, grant extensions for filing returns. However, no extension may be granted for more than six months beyond the initial due date. This extension does not extend the time to pay the tax. Payments made after the due date may be subject to interest and penalties as provided in this chapter.
(c) 
The tax return must contain a written declaration, verified by the taxfiler, to the effect that the statements made therein are true.
(d) 
The Administrator will prepare blank tax returns and make them available upon request. Failure to receive a form does not relieve any person from the obligation to pay a tax under either the Business Income Tax Law or Personal Income Tax Law.
(e) 
Authority to require filing of returns by electronic means.
(1) 
As used in this section:
ELECTRONIC
Means includes computer-generated electronic or magnetic media, Internet-based applications or similar computer-based methods or applications.
PAID TAX PREPARER
Means a person who prepares a tax return for another or advises or assists in the preparation of a tax return for another, or who employs or authorizes another to do the same, for valuable consideration.
TAX RETURN
Means a return filed under the Business Income Tax Law.
(2) 
The Administrator may by rule require a paid tax preparer to file tax returns by electronic means if the paid tax preparer is required to file federal tax returns by electronic means.
(3) 
The Administrator may by rule require that a business subject to the Business Income Tax Law file tax returns by electronic means if it is required to file, or voluntarily files, federal tax returns by electronic means.
(4) 
The Administrator may by rule establish exceptions to the electronic filing requirements of this section.
[Ord. 20-1454; Ord. 23-1492; Ord. 25-1531]
(a) 
Every taxfiler expecting to have a tax liability under Chapter 7.06 or Chapter 7.07 of $1,000 or greater for tax years 2021-2025 or $5,000 or greater for tax years 2026-2030 must estimate and pay the taxfiler's tax liability for the current tax year as follows:
(1) 
Quarterly payments as provided in Section 7.05.190; or
(2) 
Employer provided withholding from taxfiler’s wages as provided in Section 7.06.120.
(b) 
If a taxfiler is required to remit estimated tax payments, the amounts remitted must total either the lesser of ninety percent of the taxfiler’s current year tax liability or one hundred percent of the taxfiler’s reported prior year tax liability.
(c) 
The Administrator will not impose underpayment penalties or interest for failure to make quarterly estimated payments for tax year 2021 (tax year beginning on or after January 1, 2021) and tax year 2022 (tax year beginning on or after January 1, 2022). For tax years beginning on or after January 1, 2023, the Administrator will impose penalties and interest as provided in this chapter.
[Ord. 20-1454; Ord. 21-1465]
(a) 
A taxfiler required under Section 7.05.180 to make payments of estimated tax must make the payments in installments as follows:
(1) 
One quarter or more of the estimated tax on or before the fifteenth day of the fourth month of the tax year;
(2) 
One quarter or more of the estimated tax on or before the fifteenth day of the sixth month of the tax year;
(3) 
One quarter or more of the estimated tax on or before the fifteenth day of the ninth month of the tax year; and
(4) 
For business income taxfilers, the balance of the estimated tax must be paid on or before the fifteenth day of the twelfth month of the tax year;
(5) 
For personal income taxfilers, the balance of the estimated tax must be paid on or before the fifteenth day of the first month of the subsequent tax year.
(b) 
Any payment of the estimated tax received by the Administrator for which the taxfiler has made no designation of the quarterly installment to which the payment is to be applied, will first be applied to underpayments of estimated tax due for any prior quarter of the tax year. Any excess amount will be applied to the installment that next becomes due after the payment was received.
(c) 
If the due date falls on a weekend or federal holiday, the due date is the first business day following the weekend or holiday.
[Ord. 20-1454]
(a) 
Business Income Tax. Each business income tax return must be accompanied by a tax payment at the rate established in Metro Code Section 7.07.030, provided that each tax return must be accompanied by a minimum tax of $100. The minimum payment may have previously been paid by quarterly payments, an extension payment, or credit available from a prior tax year.
(b) 
Personal Income Tax. Each personal tax return must be accompanied by a tax payment at the rate established in Metro Code Section 7.06.040.
[Ord. 20-1454]
If a person fails to pay the Business Income Tax or Personal Income Tax when due, the Administrator may establish a payment plan pursuant to written policy. The Administrator may charge a setup fee for each payment plan established.
[Ord. 20-1454]
(a) 
The Administrator may, upon good and sufficient cause, make settlement agreements with taxfilers in the recomputation of taxes payable or in the collection of those taxes. These agreements must be consistent with ORS 305.150 and 305.155 and corresponding OARs. The Administrator will provide applications for settlement offers to taxfilers proposing settlement offers.
(b) 
In addition to the general power granted under this section, the Administrator may, upon a showing of good and sufficient cause, grant a taxfiler’s request when the Oregon Department of Revenue has granted relief to a taxfiler under ORS 316.368 or ORS 316.369. In such case, a taxfiler who is granted relief will be treated as a single taxfiler for purposes of the tax imposed under this Chapter.
[Ord. 20-1454]
(a) 
If a taxfiler's reported income under applicable State laws imposing a tax on or measured by income is changed by the Federal Internal Revenue Service or the State Department of Revenue, or amended by the taxfiler to correct an error in the original Federal or State return, the taxfiler must file a report of that change with the Administrator within 60 days after the date of the notice of the final determination of change or after an amended return is filed with the Federal or State agencies. The report must be accompanied by an amended tax return with respect to such income and by any additional tax, penalty, and interest due.
(b) 
The Administrator may assess deficiencies and grant refunds resulting from changes to any relevant Federal, State or local income tax return within the time periods provided for in Section 7.05.150, treating the report of change in Federal, State or business income tax return as the filing of an amended tax return.
(c) 
The Administrator may assess penalties and interest on the additional tax due as provided in Sections 7.05.260, 7.05.270, and 7.05.280 or may refuse to grant a refund of taxes as a result of the amended return if the amended return is not filed with the Administrator within the time limits set forth in subsection (a).
[Ord. 20-1454]
A violation of Section 7.05.090 or Section 7.05.100 is punishable, upon conviction thereof, by a fine not exceeding $500 or by imprisonment for a period not exceeding six months, or by both fine and imprisonment. In addition, any Metro employee convicted for violation of Section 7.05.090 or Section 7.05.100 is subject to possible dismissal from employment and a possible prohibition from employment for a period of five years thereafter. Any agent of Metro who is convicted is ineligible for participation in any Metro contract for a period of five years thereafter.
[Ord. 20-1454]
(a) 
Definitions. As used in this section, the following definitions apply:
COMPUTER DATABASE
Means any computer application(s) used by the Administrator to calculate or store business, personal, and financial data collected under the authority granted by Metro Income Tax Laws.
LOSS
Means any reasonable cost incurred by Metro or the Administrator, including but not limited to the cost of responding to an offense, conducting a damage assessment, and restoring the data, program, system, or information to its condition prior to the offense, and any revenue lost, cost incurred, or other consequential damages incurred because of interruption of service.
(b) 
Any individual who intentionally accesses the Computer Database without authorization will be fined:
(1) 
$10,000 if the individual acquires any information regarding any business or personal account found in the Computer Database;
(2) 
$10,000 or the cost of the loss (whichever is greater) if the individual uses or attempts to use the acquired information for financial gain of any kind; or
(3) 
$10,000 or the cost of the loss (whichever is greater) if the individual causes the transmission of a program, information, code, or command to the Computer Database, and, as a result of such conduct, causes damage to the Computer Database.
[Ord. 20-1454]
(a) 
A penalty will be assessed if a person:
(1) 
Fails to file a tax return or extension request at the time required under Section 7.05.170(a) or 7.05.230(a); or
(2) 
Fails to pay a tax when due.
(3) 
The penalty under subsection (a) is:
(A) 
Five percent of the total tax liability if the failure is for a period less than four months;
(B) 
An additional penalty of twenty percent of the total tax liability if the failure is for a period of four months or more; and
(C) 
An additional penalty of one hundred percent of the total tax liability of all tax years if the failure to file is for three or more consecutive tax years.
(b) 
A penalty will be assessed if a person who has filed an extension request:
(1) 
Fails to file a tax return by the extended due date; or
(2) 
Fails to pay the tax liability by the extended due date.
(3) 
The penalty under subsection (b) is:
(A) 
Five percent of the total tax liability if the failure is for a period of less than four months; and
(B) 
An additional penalty of twenty percent of the total tax liability if the failure is for a period of four months or more.
(c) 
A penalty will be assessed if a person:
(1) 
Fails to pay at least ninety percent of the total tax liability by the original due date; or
(2) 
Fails to pay at least one hundred percent of the prior year's total tax liability by the original due date.
(3) 
The penalty under subsection (c) is five percent of the tax underpayment, but not less than $5.
(d) 
The Administrator may impose a civil penalty of up to $500 for each of the following violations of this chapter:
(1) 
Failure to file any tax return within 60 days of the Administrator's original written notice to file; or
(2) 
Failure to pay any tax within 60 days of the Administrator's original written notice for payment; or
(3) 
Failure to provide either documents or information as required by this chapter or Chapter 7.07 within 60 days of the Administrator's original written notice to provide the documents or information; or
(4) 
Failure to fully complete any form required under the Business Income Tax Law; or
(5) 
Failure to fully comply with the requirements of any section of Chapter 7.05 or Chapter 7.07 unless the section has a separate penalty calculation.
(e) 
The Administrator may impose a civil penalty under subsection (d) only if the Administrator gave notice of the potential for assessment of civil penalties for failure to comply or respond in the original written notice.
(f) 
The Administrator may waive or reduce any penalty determined under subsections (a) through (d) for good cause, according to and consistent with written policies.
(g) 
Frivolous Return Position. If the Administrator determines that taxfiler has taken a frivolous position in preparing the taxfiler’s tax return, the Administrator will add a $500 penalty to the amount of tax required to be shown on the tax due under this chapter or Chapter 7.07. For purposes of this subsection, a tax return position is considered frivolous if a taxfiler does not provide information on which the substantial correctness of the self-assessment may be judged or if the tax return contains information that on its face indicates that the self-assessment is substantially incorrect. Examples of “frivolous positions” as provided in Oregon Administrative Rule 150-316-0652(2) are adopted by direct reference, but are not a definitive list of those positions.
(h) 
The provisions set forth in Metro Code Chapter 2.03 do not apply with respect to any penalty that maybe be assessed under this chapter or the Business Income Tax Law.
[Ord. 20-1454; Ord. 23-1492; Ord. 23-1503]
The Administrator will assess the following penalties upon employers or personal income taxfilers:
(a) 
Failure to File a Correct W-2. If an employer fails to file a correct W-2 that, along with any other W-2 that must be filed, supports amounts reported on the annual withholding reconciliation return, or amended annual withholding reconciliation return, as required by code, administrative rule, written policy, or form instructions by the date specified, the Administrator will assess a penalty of $50 for each missing or incomplete W-2.
The Administrator may waive all or any part of the penalty imposed under this subsection on a showing by the employer that there was reasonable cause for the failure to file a correct W-2 when due and that the employer acted in good faith. Before any penalty waiver or reduction, all withholding balances must be paid in full and reconciliations or other forms or reports must be submitted to the Administrator.
(b) 
Failure to File a Return; Failure to Pay Tax When Due. If a taxfiler fails to file a return or fails to pay a tax by the date on which the filing or payment is due, the Administrator will add a delinquency penalty of:
(1) 
Five percent of the amount of the unpaid tax.
(2) 
An additional penalty of one hundred percent of the unpaid tax of all tax years if the failure to file is for three or more consecutive tax years.
(3) 
For purposes of this section, unpaid tax is the taxfiler’s tax liability reduced by payment of tax and any credit against tax that is claimed on the return.
The Administrator may for good cause waive all or any part of the penalty imposed under this subsection according to and consistent with written policies.
(c) 
Underpayment of Tax. A penalty will be assessed if a person:
(1) 
Fails to pay at least ninety percent of the total tax liability by the original due date; or
(2) 
Fails to pay at least one hundred percent of the prior year's total tax liability by the original due date.
(3) 
The penalty under subsection (b) is five percent of the tax underpayment, but not less than $5.
The Administrator may for good cause waive all or any part of the penalty imposed under this subsection according to and consistent with written policies.
(d) 
Intent to Evade. If a taxfiler fails to file a return with the intent to evade the tax imposed under this chapter or Chapter 7.06, or a taxfiler prepares or causes to be prepared a return and files that return with the intent to evade the tax imposed under this chapter or Chapter 7.06, the Administrator will impose a penalty in the amount of one hundred percent of any deficiency that the Administrator determines is due.
(e) 
Substantial Understatement of Tax. If the Administrator determines that there is a substantial understatement of tax due under this chapter or Chapter 7.06, the Administrator will add to the amount of tax required to be shown on the return a penalty equal to twenty percent of the amount of any underpayment of tax attributable to the understatement.
(1) 
For purposes of this subsection, a substantial understatement of tax exists if the amount of the understatement exceeds $1,000 of tax otherwise due.
(2) 
In the case of any item attributable to an abusive tax shelter: no reduction of the amount of the understatement will be made with regard to that item regardless of the existence of substantial authority for the treatment of the item by the taxfiler; and, no reduction of the amount of the understatement will be made with regard to that item regardless of the disclosure of the facts affecting the tax treatment of the item unless, in addition to the disclosure, the Administrator determines in the Administrator’s sole discretion, that the taxfiler reasonably believed that the tax treatment of the item was more likely than not the proper treatment. This chapter expressly adopts the definitions contained in ORS 314.402 and the administrative rules thereunder.
(3) 
The Administrator may waive all or any part of the penalty imposed under this subsection on a showing by the taxfiler that there was reasonable cause for the understatement or any portion thereof, and that the taxfiler acted in good faith.
(f) 
Frivolous Return Position. If the Administrator determines that taxfiler has taken a frivolous position in preparing the taxfiler’s tax return, the Administrator will add a $500 penalty to the amount of tax required to be shown on the tax due under this chapter or Chapter 7.06. For purposes of this subsection, a tax return position is considered frivolous if a taxfiler does not provide information on which the substantial correctness of the self-assessment may be judged or if the tax return contains information that on its face indicates that the self-assessment is substantially incorrect. Examples of “frivolous positions” as provided in Oregon Administrative Rule 150-316-0652(2) are adopted by direct reference but are not a definitive list of those positions.
(g) 
Failure of Administrative Compliance. The Administrator may impose a penalty of up to $500 for the following violations of this chapter:
(1) 
Failure to file any tax return within 60 days of the Administrator's original written notice to file;
(2) 
Failure to pay any tax within 60 days of the Administrator's original written notice for payment;
(3) 
Failure to provide either documents or information as required by this chapter or Chapter 7.06 within 60 days of the Administrator's original written notice to provide the documents or information;
(4) 
Failure to fully complete any form required under the Personal Income Tax Law; or
(5) 
Failure to fully comply with the requirements of any section of Chapter 7.05 or Chapter 7.06 unless the section has a separate penalty calculation.
The Administrator may impose a civil penalty under this subsection only if the Administrator gave notice of the potential for assessment of civil penalties for failure to comply or respond in the original written notice. The Administrator may waive all or any part of the penalty imposed under this subsection on a showing by the taxfiler that there was reasonable cause for the Failure of Administrative Compliance, and that the taxfiler acted in good faith.
(h) 
Penalties cumulative. Each penalty imposed under this section is in addition to any other penalty imposed under this section.
(i) 
The provisions set forth in Metro Code Chapter 2.03 do not apply with respect to any penalty that maybe be assessed under this chapter or the Personal Income Tax Law.
[Ord. 20-1454; Ord. 21-1465; Ord. 23-1492; Ord. 26-1540]
(a) 
Interest will be assessed on any unpaid tax at the rate in subsection (c), computed from the original due date of the tax to the date of payment.
(b) 
Interest will be assessed on any unpaid or underpaid quarterly estimated payment required by Section 7.05.180 and Section 7.05.190 at the rate in subsection (c), computed from the due date of each quarterly estimated payment to the original due date of the tax return to which the estimated payments apply.
(c) 
The interest rate for the Business Income Tax Law is 0.833% simple interest per month or fraction thereof (ten percent per annum). The interest rate for the Personal Income Tax Law is as follows for the listed time periods:
(1) 
For January 1, 2021 to April 17, 2023, the interest rate is 0.833% simple interest per month or fraction thereof (ten percent per annum).
(2) 
For April 18, 2023 to April 15, 2024, the interest rate is 0.5% simple interest per month or fraction thereof (six percent per annum).
(3) 
For April 16, 2024 to April 15, 2025, the interest rate is 0.667% simple interest per month or fraction thereof (eight percent per annum).
(4) 
For April 16, 2025 to April 15, 2026, the interest rate is 0.75% simple interest per month or fraction thereof (nine percent per annum).
(5) 
For April 16, 2026 and beyond, the interest rate is as determined by subsection (d) below.
(d) 
Beginning on April 16, 2026, and for all subsequent time periods, the interest rate for the Personal Income Tax Law is the same interest rate established by Oregon Revised Statute 305.220, as periodically adjusted by the Oregon Department of Revenue. The adjusted rate is effective on April 15 of each year. If April 15 falls on a weekend or federal holiday, the interest rate change is effective the first business day following the weekend or holiday.
(e) 
Notwithstanding subsection (b), there is no interest on underpayment of quarterly estimated payments if:
(1) 
The total tax liability of the prior tax year was less than $1,000 for tax years 2021-2025 or less than $5,000 for tax years 2026-2030;
(2) 
An amount equal to at least ninety percent of the total tax liability for the current tax year was paid in accordance with Section 7.05.190; or
(3) 
An amount equal to at least one hundred percent of the prior year's total tax liability was paid in accordance with Section 7.05.190.
(f) 
For purposes of subsection (b), the amount of underpayment is determined by comparing ninety percent of the current total tax liability amount to quarterly estimated payments made prior to the original due date of the tax return. However, if one hundred percent of the prior year’s total tax liability is paid to the Administrator by the due date of the fourth quarterly payment, the Administrator may use the prior year’s tax liability if doing so will reduce the amount of interest owed.
(g) 
For purposes of subsection (a), the amount of tax due on the tax return will be reduced by the amount of any tax payment made on or before the date for payment of the tax in accordance with Section 7.05.170(a) or Section 7.05.190.
(h) 
Interest at the rate specified in subsection (a) accrues from the original due date without regard to any extension of the filing date.
(i) 
The Administrator may not waive or reduce any interest amounts properly assessed in accordance with this section unless specifically provided for by written policy. The Administrator must consult with the Metro Chief Financial Officer before adopting a written policy that waives or reduces interest amounts.
[Ord. 20-1454]
Tax payments received will be applied first to any penalty accrued, then to interest accrued, then to taxes due, unless the Administrator determines in accordance with its written policies that a more equitable method exists for a particular taxfiler’s account. The Administrator will apply tax payments received without a designation for a specific period to the oldest periods first in the order set forth above.
[Ord. 20-1454; Ord. 26-1540]
(a) 
When a taxfiler is entitled to a refund of a portion or all of a tax paid to the Administrator, the interest rate for the Business Income Tax Law is 0.833% simple interest per month or fraction thereof (ten percent per annum). The interest rate for the Personal Income Tax Law is as follows for the listed periods:
(1) 
For January 1, 2021 to April 15, 2025, the interest rate is 0.833% simple interest per month or fraction thereof (ten percent per annum).
(2) 
For April 16, 2025 to April 15, 2026, the interest rate is 0.75% simple interest per month or fraction thereof (nine percent per annum).
(3) 
For April 16, 2026 and beyond, the interest rate is as determined by Metro Code Section 7.05.280(d).
(b) 
Any overpayments will be refunded with interest for each month or fraction thereof for a period beginning four months after the later of:
(1) 
The due date of the tax return;
(2) 
The date the tax return was filed or the refund was otherwise requested; or
(3) 
The date the tax was paid, to the date of the refund.
(c) 
Any overpayments of taxes that are the result of an amended return being filed will be refunded with interest for each month or fraction thereof for the period beginning four months after the date the taxfiler filed the amended return. This subsection applies to tax returns that are amended due to a change to any relevant Federal, State or local income tax return
[Ord. 20-1454]
(a) 
Every year a public accounting firm must conduct a financial audit of the revenue generated by the Business Income Tax and Personal Income Tax Laws and the distribution of that revenue. Metro will make the audit public as well as any report to the Metro Council regarding the results of the audit. Metro may use the revenue generated by the taxes to pay for the costs of the audit required under this section.
(b) 
The revenue and expenditures from the taxes are subject to performance audits conducted by the Office of the Metro Auditor.
[Ord. 20-1454]
If a court of competent jurisdiction finds that any part, section or provision of this chapter is unconstitutional, illegal or invalid, that finding affects only that part, section or provision of the chapter and the remaining parts, sections or provisions remain in full force and effect.