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The Multnomah County personal income tax was
created when voters passed Ballot Measure 26-48 on May 20, 2003. The
measure passed with 58 percent of the vote.
Who has to
pay the tax?
All Multnomah County residents with Oregon
taxable income, regardless of where the income was earned. For example,
a Multnomah County resident who works in Vancouver, WA is subject
to the tax. A Vancouver, WA resident who works in Multnomah County
is not.
The Multnomah County personal income tax is
based on Oregon taxable income. If the State of Oregon taxes the income,
it is taxable for the Multnomah County measure. If the income is exempt
from taxation by the State of Oregon, it is exempt from the Multnomah
County tax. A good source of information on what the State of Oregon
considers taxable is the Oregon Department of Revenue Website and
the Form 40 instructions at: www.dor.state.or.us/2002Forms/FullYr.pdf.
To give a few examples, Social Security, VA
disability benefits and interest on municipal bonds are NOT considered
Oregon taxable income and therefore are NOT subject to the Multnomah
County tax. Common categories of income that ARE subject to the tax
include interest income, rental income, unemployment compensation
and capital gains.
What does
the tax pay for?
The County personal income tax is expected
to raise $128 million this year. Most of the money ($89 million, or
$3 out of $4) will be divided equally, on a per-pupil basis among
all County school districts. Schools will use the money to help ensure
a full school year, retain teachers to keep down class size, retain
some extracurricular activities such as high school sports, and on
other classroom needs.
Another $32 million will be divided equally
between County public safety and health and human service programs,
preventing the layoff of Sheriff's deputies, and retention of some
senior and mental health services.
The remaining $7 million is reserved for collection
costs, audits and other administration.
The tax rate is 1.25 percent of Oregon taxable
income after deducting an exemption ($2,500 for single filers or $5,000
for joint filers). An interactive calculator that allows you to estimate
what you will owe is available on the County’s Website: www2.co.multnomah.or.us/aspnet/tax/november/tax_calc.asp.
Are
there accountability measures to ensure the money is spent properly
and effectively?
Yes. The law creating the tax requires regular
independent audits. In addition, there is a separate oversight committee
for money going to schools.
When will
the tax forms and instructions be available?
A one-page form and instructions for the County
personal income tax were mailed to residents December and are available
at libraries and post offices county-wide. They are also available
online or by calling
503-988-ITAX (4829).
When
is the tax due?
The tax is due April 17, 2006 for calendar
year 2005, the same day as your federal and Oregon taxes.
Can I
deduct my County tax payment from federal and state taxes?
Yes, if you itemize deductions. However, only
the portion of the County tax that you actually pay in 2005 can be
deducted from your 2005 federal and state taxes.
What
if I only lived in Multnomah County for part of the year?
Part-year residents will only be taxed based
on the portion of the year they lived in Multnomah County. Part-year
residents will only be taxed on the income they earned during the
time they lived in Multnomah County. For example, a taxpayer who moved
out of Multnomah County on Feb. 1 will owe the tax on roughly one-twelfth
of their income.
If you can't pay in full, we will work with you to
set up a payment plan. It is important that you file your tax return
on time and pay what you can. You will receive a billing notice showing
tax, penalty, interest, and the balance due. When you receive the
billing notice, immediately call the telephone number on the notice
to set up your payment plan. If you do not call, collection activity
may begin.
The penalty for failure to file a Multnomah County
income tax return can be 25% of the tax. The penalty for filing on
time but failing to pay is 5% of the tax.
For Additional Information, Answers to Other
Questions, and to Request Forms:
Contact Us
Helpline: 503-988-ITAX (4829)
TDD: 503-823-6868
Please send comments to:
webmaster@co.multnomah.or.us This page is maintained by Multnomah County Please note our disclaimer about this site Page last updated: Wednesday, February 22, 2006
