2013 Oregon and Portland Tax Law Changes

Reduced Oregon Tax Rates for 2013

Measure 66 Income Tax Surcharge for high income earners expires and the tax rate for all individual taxpayers will drop to 9.9%.Oregon corporate tax rate will drop to 6.6% for all income up to $10,000,000

Increased Oregon limits for 2013

  • Standard Deduction – $2080 (Single); $4160 (Married)
  • Exemption Credit – $188
  • Federal Tax Subtraction – $6250

Portland/Multnomah County Tax

Rental properties are no longer exempt from filing for a business license if one happens to be within the City of Portland. Previously, there was an exemption for fewer than 10 rental properties.

The Multnomah County Business Income Tax (MCBIT) is a 1.45% tax and the Portland Business License (PBL) is 2.2%; however, both have a minimum tax amount of $100.  There is a gross receipts exemption of $50,000 available, but an annual exemption form is still required to be filed. The exemption is based on your global gross rental income.  You could have rental properties in other states and only one in the City of Portland and still be subject tax if the gross rent for all nine properties is over $50k.  You only have to pay tax on the percentage of income earned within the City limits, but you would still pay the $200 minimum tax. This local property tax will apply when the property is sold.

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