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Business growth and regulation issues

In 2007, at the request of the Portland Business Alliance and neighborhood business associations, both the City of Portland and Multnomah County moved to reduce the burden of the city business license fee (BLF) and the county business income tax (BIT). These local income fees and taxes are some of the highest in the nation and create a significant disincentive to business expansion and recruitment in the city. They are particularly hard on small businesses.

The changes made in 2007 increased the gross receipts exemption from $25,000 to $50,000 and the owner's compensation deduction from $61,500 to $80,000. While these were welcome changes, they were only the first installment in a plan to bring the owners compensation deduction up to $125,000 over a five-year period.

The Alliance is again reaching out to neighborhood business associations and small business owners to communicate the importance of this reform to the growth of small business in the Portland region. If you are concerned about this issue and would like to communicate your thoughts to the city and county contact Bernie Bottomly at 503.224.8684.

See the Alliance's letter to elected officials