passed ordinance 2025-434

Amend Special Taxes Code to conform to Oregon Revised Statute 314.835 (amend Code Sections 6.04.130, 6.05.070, 6.09.040, and add Code Section 6.04.135)

budget finance
code amendment

Department: Revenue Division
Introduced by: Mayor Keith Wilson
Status: Passed

Impact statement

Purpose & background

ORS 314.834 imposes strict confidentiality provisions on every piece of information related to certain state tax returns. It also refers to other statutes, rules, and law that allow, in specific circumstances and with specific persons, the sharing of tax return information. Most notable is ORS 314.840. The 2024 Oregon Legislature passed, and the Governor signed, House Bill 4031 amending ORS 314.835. The bill's intent and language apply the state's stricter confidentiality provisions to certain local taxes such as the Business License Tax. The bill became effective March 28, 2024. The purpose of this legislation is to accomplish the alignment between the State's tax return confidentiality provisions and the City's tax return confidentiality provisions. It also clarifies who the City may share tax return information with and the purpose for sharing that information. This legislation is required because of the passage of House Bill 4031.

Financial impacts

Not applicable.

Economic impacts

Not applicable.

Community impacts

This legislation will provide taxpayers with confidence that the City will protect the confidentiality of their tax return information. No outreach was made as House Bill 4031 makes this legislation necessary.

▸ Full text (the legislation as adopted)

The City of Portland ordains. Section 1. The Council finds: The 2024 Oregon Legislature passed, and the Governor signed, House Bill 4031 amending ORS 314.835 regarding confidentiality of tax return information. These changes became effective on March 28, 2024. ORS 314.835 contains Oregon's tax return confidentiality law which prohibits sharing any tax return information unless specifically provided in law. As amended by House Bill 4031, ORS 314.835 now applies the same manner to local governments for the tax returns of certain types of taxes. The intent of House Bill 4031 is to align state and local government treatment of sensitive tax return information. Amending City Code per Exhibit A will reflect that alignment. It will provide clear guidance to taxpayers, tax professionals, City staff, and others regarding the confidentiality of tax return information. It will also provide clear guidance regarding who tax return information may be shared with, what types of tax return information can be shared, and the purpose for sharing any tax return information. The business and personal income tax codes have previously been updated to reflect the change in this state law. This is the final tax to be updated to conform to this state law. NOW, THEREFORE, the Council directs: Amend City Code Sections 6.04.130, 6.05.070, and 6.09.040 as shown in Exhibit A. Add City Code Section 6.04.135 as shown in Exhibit A.

Tally

10 yea 0 nay 2 other