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City of Portland Business License Tax
Multnomah County Business Income Tax
Form C-2023 Business Tax Return for Corporations Instructions

• Federal Form 1120 (pages 1 through 5) with
General Information
statements
•
Important Reminders Federal Form 1125-E and statements (if filed)
• HVT Schedule, if required (Portland form)
Note: S corporations should file SC-2023. • PRS Schedule, if required (Portland form)
File and Pay Online and Manage your Business Tax • Schedule R, if required (Portland form)
Accounts at Pro.Portland.gov. The Revenue Division’s The Revenue Division has the authority to request
taxpayer portal can be used to manage your business tax
additional tax pages or supporting documentation to verify
accounts. Portland Revenue Online (PRO) allows you to:
the accuracy of the tax reported on the tax return.
• Register your business
• Update your business account information What’s New?

• File a Business Tax Return Market Based Sourcing. For tax years beginning on or
• Make payments after January 1, 2023, the City of Portland and Multnomah
• Upload supporting tax pages and documents County have adopted the Market Based Sourcing (MBS)
• View correspondence mailed to you and single sales factor apportionment methodology to
• Provide Third-Party Access to your preparer conform with the State of Oregon’s apportionment
For more information and to create your account, please methodology. This change includes adoption of the state’s
visit Pro.Portland.gov. nexus standards and the interstate application of federal
Filing Deadline. The filing deadline for this return is April Public Law 86-272.
15, 2024. Since the C-2023 relies on information reported Downtown Business Incentive Credit. If your business
on the federal and Oregon tax return, the due date for the entered into a new lease, extended a current lease, or
C-2023 will be changed when there is a change to the owned and occupied their own business space in Lower
federal or State of Oregon due dates. Albina, Lloyd District, Old Town/Chinatown, or Downtown
Extensions. The Revenue Division does not generally Portland, your business may be eligible for the Downtown
allow an extension of time to pay the tax, even if the IRS Business Incentive Credit. Visit our webpage at
allows an extension. The tax balance is due on the original portland.gov/revenue/dbi for more information about the
return due date. The submission of an extension payment credit and how to determine if your business is eligible to
by the original return due date provides an automatic six- apply for the credit.
month filing extension. If there is not a tax balance due but
Increase to Owner’s Compensation Deduction. For tax
you would like to file an extension, your federal or State of
years beginning on or after January 1, 2023, the maximum
Oregon extension will serve as your Business Tax
owner’s compensation deduction has increased to
extension and a separate extension will not need to be
submitted. When filing your return on the extended due $152,500, per owner, for the City of Portland Business
date, check the “Extension Filed” box on the return. If no License Tax.
extension payment was made, please attach a copy of your For tax years beginning on or after January 1, 2023, the
federal or State of Oregon extension with your return. maximum owner’s compensation deduction has increased
Federal and State Tax Pages. Be sure to include the to $150,000, per owner, for the Multnomah County
following federal tax pages (and statements), Oregon tax Business Income Tax.
pages (and statements), and Portland schedules with your Increase to Residential Rental Registration Fee. For tax
C-2023 Business Tax Return: years beginning on or after January 1, 2023, the Residential
• Oregon Form OR-20 or OR-20-INC (including OR- Rental Registration fee has increased to $70 per unit.
AP, OR-ASC, and any other Oregon forms and
schedules you have filed) with statements

Page 1 of 7, C-2023 Instructions (Rev. 01/29/2024)

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Amended Returns Exempt Businesses

The Revenue Division does not have a separate form for If your business is exempt from the City of Portland
amended tax returns. To amend your Business Tax Return, Business License Tax, as allowed under Portland City Code
use the form for the tax year being amended and check the (PCC) 7.02.400 or the Multnomah County Business Income
“Amended” box. If the address for the year you’re amending Tax, as allowed under Multnomah County Code (MCC)
has changed, use your current mailing address and check 12.400, you are still required to file a Business Tax Return
the “Mailing Address Change” box. by the due date of your return. Failure to do so may result
in a Presumptive Fee bill and your account will remain in
Fill in all amounts on your amended return, even if they are
non-compliance status until the required documentation is
the same as originally filed. If you are amending to make a
received.
change to additions, subtractions, or credits, include detail
of all items and amounts as well as any carryovers. Please This exemption is from the business taxes only. Any other
include a statement explaining what changed from the tax, surcharge, or fee may fall under separate exemption
original return. criteria, for which your business may still be liable.

If you change taxable income by filing an original or Gross Receipts Exemption
amended federal or Oregon income tax return, you must file
an amended Business Tax Return within 60 days of when Note: The following amounts are taken from the federal
the original or amended federal or Oregon income tax return income tax return.
is filed. Include a copy of your original or amended federal To claim a gross receipts exemption from the City of
or Oregon income tax return with your amended Business Portland Business License Tax and/or the Multnomah
Tax Return and explain the adjustments made. County Business Income Tax, the total gross receipts from
all business activity must be under:
Do not amend your Business Tax Return if you amend the
federal return to carry a net operating loss back to prior • $50,000 for the City of Portland Business License
years. The Revenue Division only allows tax entities to carry Tax exemption, and
net operating losses forward. Additionally, net operating • $100,000 for the Multnomah County Business
losses for the City of Portland Business License Tax and/or Income Tax exemption.
Multnomah County Business Income Tax are only To calculate the total gross receipts from all business
generated from the Business Tax Return, not from your IRS activity, add the following lines together:
or Oregon income tax return.
• Form 1120. Add the sum of positive numbers
On the prepayments line of your amended Business Tax reported on line 1c and 4 through 10 on page 1 of
Return, enter the net tax for each jurisdiction as reflected on Form 1120. If the corporation owns any residential
the original return or as previously adjusted. Do not include rental properties in the City of Portland, make sure
any penalty or interest portions of payments already made. to complete and submit a Schedule R (with
payment) with your exemption request.
Apportionment
If your total gross receipts from all business activity are
In adopting Oregon’s apportionment law, both jurisdictions $50,000 or more, you do not qualify for the gross receipts
use Oregon’s single sales factor to apportion business exemption for the City of Portland Business License Tax.
income to or away from the jurisdictions. Sales are all gross If your total gross receipts from all business activity are
receipts not allocated under ORS 314.615 to 314.645 that $100,000 or more, you do not qualify for the gross receipts
are received from transactions and activity in the regular exemption for the Multnomah County Business Income Tax.
course of business except as excluded by ORS 314.610(7),
the related statutes, and related rules. Refer to Oregon’s Other Exemptions
statutes and rules for guidance. Substitute city/Portland or If you are claiming an exemption other than the gross
county/Multnomah County for state/Oregon as needed. receipts exemption, you must attach a statement that
With a few exceptions, income earned in Portland is also explains which exemption you are claiming and provide
earned in Multnomah County. Income may be apportioned support for that exemption (See Exemption Codes in the
only if there is regular business activity both inside and Appendix).
outside these jurisdictions that allow another city and/or
county to impose a similar tax.

Page 2 of 7, C-2023 Instructions (Rev. 01/29/2024)

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Penalty Calculation                                               Late Payment Penalty 
You  may  be  subject  to  penalties  for  underpaying  your      Your  2023  business tax must be paid by  April 15,  2024, 
estimated tax, filing a late  Business Tax  Return, and/or        even if you requested an extension to file your Business Tax 
paying your business tax liability after the original due date    Return. If you do not pay your tax by the original due date, 
of the return.                                                    the following late payment penalties will apply: 
Although the Revenue Division assesses a late penalty for          •       5% of the amount of the tax that was not paid by the 
both failing to file a Business Tax Return by the due date                 original due date. 
and failing to pay the tax  by the original due date of the        •       An additional penalty of 20% of the unpaid tax must 
return, only one of these late penalties will be applied, even             be added if the failure to pay is for a period of four 
if there is a failure of both requirements. In these cases, only           months or more. 
the late filing penalty is applied.                                •       An additional penalty of 100% of the  unpaid  tax 
                                                                           liability of all tax years if the failure to pay is for three 
                                                                           or more consecutive years. 
Underpayment Penalty 
You may be subject to a penalty for underpaying your tax          Interest Calculation 
liability  if,  by the original  due  date of the return,  timely 
payments are not made which are either: 
                                                                  Late Payment Interest 
 •     At  least 90%  of the total tax due  on line  21 
                                                                  Interest is calculated at 10% per annum (.00833 multiplied 
       (Multnomah County) and line 31 (City of Portland), 
       or                                                         by the number of months). Calculate your interest from the 
                                                                  original due date to the 15 thday of the month following the 
 •     100% of the prior year’s tax for each jurisdiction. 
                                                                  date of the payment. 
If you did not satisfy either requirement, you will be charged 
a 5% underpayment penalty on the unpaid amount, but not 
less than $5 per jurisdiction.                                    Quarterly Underpayment Interest 
                                                                  Quarterly underpayment  interest will be due if estimated 
Late Filing Penalty                                               payments were required  and  were underpaid. Calculate 
                                                                  your quarterly underpayment interest at a rate of 10% per 
If you do not file your Business Tax Return by the original 
                                                                  annum  from  the  due  date  of  each  quarterly  estimated 
due date, file an extension with the Revenue Division by the 
                                                                  payment to the original due date of the tax return to which 
original due date, or include a copy of your federal or state 
                                                                  the estimated payments apply. 
extension with your Business Tax Return when you file by 
the extended due date, the following late filing penalties will   The amount of underpayment is determined by comparing 
apply:                                                            the 90% of the current total tax liability amount to quarterly 
                                                                  estimated payments made prior to the original due date of 
 •     5% of the amount of the total tax liability if the failure the tax return. 
       to file is for a period less than four months. 
 •     An additional penalty of 20% of the total tax liability    There is no interest on underpayment of quarterly estimated 
       must be added if the Business Tax Return is four           payments if:  
       months or more past due.                                    •       The total tax liability of the prior tax year was less 
 •     An additional penalty of 100% of the total tax liability            than $1,000 for the jurisdiction; 
       of all tax years for any Business Tax Return which          •       An  amount equal  to  at least 90% of the total tax 
       is delinquent for three or more consecutive years.                  liability for the current tax year was paid  in 
No late filing penalty is due if a timely extension is filed with          accordance with PCC  7.02.530 and/or MCC 
the Revenue Division and a Business Tax Return is filed by                 12.530; or  
the  extended due date, or a copy of the federal  or state         •       An amount equal to at least 100% of the prior year’s 
extension is included with the Business Tax Return and the                 total tax liability was paid in accordance with PCC 
‘Extension Filed’ box is checked.                                          7.02.530 and/or MCC 12.530. 
                                                                   
Page 3 of 7, C-2023 Instructions (Rev. 01/29/2024)

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FEIN of Previous Business. If you have checked the
C Corporation Business Tax Return
Merged/Reorganized box in the Entity Filing in Oregon field,
Filing Instructions enter the FEIN of the previous business here.
Rounding. Round cents to whole dollars on your return and
Initial Return Box. Check this box if this is your first return
schedules. To round, drop amounts under 50 cents and
you are filing with us. Attach the Business Tax Registration
increase amounts from 50 to 99 cents to the next dollar. For
Form, if not mailed to us previously.
example, $1.39 becomes $1 and $2.50 becomes $3. If two
or more amounts must be added to figure the amount to Final Return Box. Check this box if you no longer conduct
enter on a line, include cents when adding the amounts and business in the City of Portland and/or Multnomah County
round off only the total. and this is the final return you are filing with us. Attach an
Out of Business Notification Form or an explanation for your
General Return Information final return. If you have sold your business, indicate the
name and address of the entity you sold your business to.
Tax Year. Enter the beginning and ending dates of your tax
Amended Return Box. Check this box if you are amending
year. For calendar year filers, this would be 01/01/2023 to
your 2023 tax return. See the Amended Returns instructions
12/31/2023.
above for more information about amending your Business
Account #. Enter your BZT account number (ten digits). Tax Return.
This information can be found on letters the Revenue Extension Filed Box. Check this box if you filed an
Division has mailed to you related to your business tax extension to file your federal or state income taxes. Attach
account. If you can’t find your account number, call the a copy of your federal or State of Oregon extension to your
Revenue Division at (503) 823-5157. Business Tax Return.

FEIN. Enter the Federal Employer Identification Number Part I – Gross Income
(FEIN) of the entity filing with the Oregon Department of
Revenue. Line 1. Multnomah County gross income. Multnomah
County gross income means “sales” as defined in Oregon
NAICS. Enter the NAICS (North American Industry statute and administrative rules, and includes income from
Classification System) code for your business. all business activity within Multnomah County (see
Apportionment instructions above).
Entity Filing in Oregon. Enter the legal name of the entity
Line 2. Total gross income from all sources in all
filing with the Oregon Department of Revenue. If you have Total gross income means “sales” as defined in
locations.
merged or reorganized, enter the new filing entity’s name Oregon statute and administrative rules, and includes
and check the box that the entity has merged or income from all business activity everywhere, as reported
reorganized. on your federal Form 1120.
Mailing Address. Always enter your current mailing Line 3. Multnomah County apportionment percentage.
address. If the address for the year you are filing has Line 1 divided by line 2. Round to 6 decimal places. This
changed, check the box indicating the change. line cannot be more than 1.0.
Line 4. City of Portland gross income. Portland gross
Name of Parent Corporation, if Applicable. If you file income means “sales” as defined in Oregon statute and
under a different entity for the Oregon Department of administrative rules, and includes income from all business
Revenue than the IRS, please enter the name of the parent activity within the City of Portland (see Apportionment
corporation here. instructions above).
FEIN of Parent Corporation. If you file under a different Line 5. Total gross income from all sources in all
entity for the Oregon Department of Revenue, please enter locations. Total gross income means “sales” as defined in
the FEIN of the parent corporation here. Oregon statute and administrative rules, and includes
income from all business activity everywhere, as reported
If Merged/Reorganized, Enter Name of Previous on your federal Form 1120. Generally, this should be the
Business. If you have checked the Merged/Reorganized same as the gross income reported on line 2, but there are
box in the Entity Filing in Oregon field, enter the name of the rare situations where this amount may be different.
previous business here.

Page 4 of 7, C-2023 Instructions (Rev. 01/29/2024)

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Line 6. City of Portland apportionment percentage. Line Line 8. Taxes based on or measured by net income add-
4 divided by line 5. Round to 6 decimal places. This line back. Add back any taxes based on or measured by net
cannot be more than 1.0. income, including the City of Portland Business License
Tax, Multnomah County Business Income Tax, and Metro
Exempt – Multnomah County. Check this box if you are
Business Income Tax, that have been deducted to arrive at
claiming an exemption from the Multnomah County
the net income reported on line 7.
Business Income Tax and select a reason for the
exemption. If your reason for being exempt is other than for Line 9. Owner’s compensation add-back. Enter the
gross receipts, attach a statement explaining which number of controlling shareholders. Enter any
exemption you are claiming and provide support for that compensation paid to controlling shareholders (individuals
exemption (See Exemption Codes in the Appendix). or families who together hold more than 5% of the stock).
This includes wages, commissions, and salaries (current
Exempt – City of Portland. Check this box if you are
and deferred).
claiming an exemption from the City of Portland Business
License Tax and select a reason for the exemption. If your See Business Tax Administrative Rule (BTAR) 600-93.9A -
reason for being exempt is other than for gross receipts, Definition of Controlling Shareholders and Calculation of
attach a statement explaining which exemption you are Number of Controlling Shareholders for additional
claiming and provide support for that exemption (See guidance.
Exemption Codes in the Appendix). Line 10. Other additions or subtractions. Add or subtract
NOTE: If you have claimed an exemption from the any Oregon modifications related to business income.
Multnomah County and the City of Portland business taxes, Subtract any pass-through income (or add any loss) from
you generally don’t need to fill out the following parts of the entities already taxed by Portland and Multnomah County.
return: Attach a schedule for these modifications.
• Part II – Net Income Line 11. Adjusted net income. Sum of lines 7 through 10.
• Part III – Multnomah County Business Income Tax
(if claiming an exemption from Multnomah County Part III – Multnomah County Business
Business Income Tax) Income Tax
• Part IV – City of Portland Business License Tax (If
Line 12. Multnomah County modifications. Enter any
claiming an exemption from the City of Portland
modifications to Multnomah County’s adjusted net income
Business License Tax)
here. Multnomah County allows a subtraction for federal
However, even if you are exempt from the City of Portland obligation interest taxed in Oregon, enter that amount as a
Business License Tax, you are still liable for any Heavy subtraction here if included on line 11. Non-business
Vehicle Use Tax or Residential Rental Registration fees that income may be income or a loss. Remove any non-
may be due. If you are subject to either tax/fee, please business income or loss reported in adjusted net income
complete line 33 (Heavy Vehicle Use Tax) and/or line 35 (line 11). Removal of income will be a subtraction while
(Residential Rental Registration Fee) and attach the removal of a loss will be an addition.
required schedule(s) with your Business Tax Return. Be Line 13. Multnomah County net business income. Sum
sure to include any payment due for these taxes/fees, or of line 11 and line 12.
you will be subject to late payment penalties and interest on Line 14. Owner’s compensation deduction. A deduction
the unpaid balance. from net business income (line 13) is limited to the lesser of:
If you have made estimated prepayments and would like • The compensation reported on line 9,
them refunded to you or credited to the next tax year, fill out • 75% of the amount on line 13, or
the prepayment section(s) of the return to tell us how you • The number of controlling shareholders multiplied
would like your overpayment applied in Part V – Tax Due / by $150,000 for the County.
Refund.
No deduction is allowed if line 13 is a loss.
Part II – Net Income Line 15. Multnomah County subject net income. Sum of
line 13 and line 14.
Line 7. Net income or (loss). Net income or loss is the net
Line 16. Multnomah County apportioned net income.
income before apportionment reported on Oregon Form
Line 15 multiplied by line 3.
OR-20 or OR-20-INC. Enter the net income reported on
Oregon Form OR-20 or OR-20-INC, line 5.
Page 5 of 7, C-2023 Instructions (Rev. 01/29/2024)

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Line 17. Add-back of non-business income allocated to deduction cannot be greater than 75% of line 28. Any
Multnomah County. Return any non-business income or unused NOL may only be carried forward for five tax years.
loss removed above on line 12 that should be allocated to Sum of line 28 and line 29.
Line 30. Income subject to tax.
Multnomah County.
Line 31. City of Portland Business License Tax. Line 30
Line 18. Total business income taxable to Multnomah multiplied by the tax rate of 2.6%. The minimum amount of
County. Sum of line 16 and line 17. tax owed is $100.
Line 19. Net operating loss deduction. Enter your net Claim
Line 32. Downtown Business Incentive Credit.
operating loss (NOL) from previous years as a negative
25% of your total calculated Downtown Business Incentive
number here. NOLs are allowed only if reported on prior Credit on this return. The amount of claimed credit cannot
Business Tax Returns. This deduction cannot be greater
exceed the amount of City of Portland Business License
than 75% of line 18. Any unused NOL may only be carried
Tax on line 31.
forward for five years.
Do not claim any credit if you did not apply and receive an
Line 20. Income subject to tax. Sum of line 18 and line 19.
approval letter from the Revenue Division.
Line 21. Multnomah County Business Income Tax. Line
Line 33. Heavy Vehicle Use Tax (HVT). If you are subject
20 multiplied by the tax rate of 2%. The minimum amount of
to Portland’s Heavy Vehicle Use Tax, enter the amount from
tax owed is $100. line 4 of the HVT Schedule here.
Part IV – City of Portland Business License Line 34. Pay Ratio Surtax. If you are subject to the City of
Tax Portland’s Pay Ratio Surtax, enter the amount due from the
PRS Schedule here.
Line 22. City of Portland modifications. Enter any
modifications to City of Portland’s adjusted net income here. Line 35. Residential Rental Registration Fee. If you are
This would generally apply only in rare circumstances. Non- subject to Portland’s Residential Registration Fee, enter the
business income may be income or a loss. Remove any amount due from the Schedule R here.
non-business income or loss reported in adjusted net Line 36. Total of City of Portland taxes and fees. Sum of
income (line 11). Removal of income will be a subtraction lines 31 through 35.
while removal of a loss will be an addition.
Part V – Tax Due / Refund
Line 23. City of Portland net business income. Sum of
line 11 and line 22. Line 37. Total business taxes and fees. Sum of line 19
Line 24. Owner’s compensation deduction. A deduction and 36.
from net business income (line 23) is limited to the lesser of: Line 38. Late payment or late filing penalty. Enter the
amount of any late payment of taxes or late filing penalty
• The compensation reported on line 9,
owed.
• 75% of the amount on line 23, or
• The number of controlling shareholders multiplied Line 39. Underpayment penalty. Enter the amount of any
by $152,500 for the City. underpayment penalty owed.
No deduction is allowed if line 23 is a loss. Line 40. Interest. Enter any quarterly underpayment
interest and/or interest due on taxes not paid by their due
Line 25. City of Portland subject net income. Sum of line dates.
23 and line 24.
Line 41. Quarterly estimated payments and other
Line 26. City of Portland apportioned net income. Line prepayments. Enter the total amount of prepayments as a
25 multiplied by line 6. negative number here. This includes all quarterly estimated
Line 27. Add-back of non-business income allocated to payments, extension payments, and any credits carried
City of Portland. Return any non-business income or loss forward from prior years.
removed above on line 22 that should be allocated to the Line 42. Business Retention Credit. Enter the amount of
City of Portland. Business Retention Credit being claimed on the tax return
Line 28. Total business income taxable to City of as a negative number here. Please attach Form BRC
Portland. Sum of line 26 and line 27. showing your calculations.
Line 29. Net operating loss deduction. Enter your NOL
from previous years as a negative number here. NOLs are
allowed only if reported on prior Business Tax Returns. This

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Line 43. Overpayment. If the sum of lines 37 through 42 is Preparer Signature. Anyone who prepares, advises, or
negative, this is the amount you have overpaid. If you have assists in preparing business income tax returns in
an overpayment, you may make an irrevocable choice to exchange for compensation of any kind must be licensed to
have the balance: prepare Oregon returns and must sign the return.
• Refunded to you, or
• Applied as an estimated tax payment to the next Mailing Instructions
open tax year.
Mail your completed return and all required supporting tax
If no election is made, any overpayment will be refunded to pages in the same envelope to:
you. Revenue Division
Line 44a. Refund. Enter the amount of the overpayment 111 SW Columbia St. Suite 600
you would like refunded to you on this line. If you would like Portland, OR 97201-5840
direct deposit of your refund, please file your Business Tax
Return online at Pro.Portland.gov. If your return is filed on Appendix
paper, you will receive your refund in the mail by check. This
Exemption Codes
election is irrevocable.
Line 44b. Apply as an estimated tax payment. Enter the If you are claiming an exemption from the City of Portland
amount of the overpayment you would like to apply as an Business License Tax and/or Multnomah County Business
estimated payment to the next open tax year on this line. Income Tax, please use one of the following Exemption
Codes listed below:
This election is irrevocable.
Line 45. Combined amount due with report. If the sum of Code Explanation
lines 37 through 42 is positive, you have a balance due. 1 No business activity in jurisdiction
Gross business income from all sources less
Make your check payable to ‘City of Portland’ and submit 2 than $100,000 (Multnomah County Only)
with your Business Tax Return. For fastest payment Gross business income from all sources less
processing, pay online by logging into your PRO account at 3 than $50,000 (City of Portland Only)
Pro.Portland.gov. Only business is the operation of less than 10
4 residential rentals (Multnomah County Only)
Part VI – Signature 5 Real estate brokers (City of Portland Only)
6 Insurance agent
Signature. An authorized representative of the business
7 PL 86-272
must sign and date the return and provide a contact email
8 Non-profit under ORS 317.080
address and phone number. By signing the return, you
Trusts exempt from federal income tax under
acknowledge, under penalty of false swearing, that the IRC § 501
9
information on the return is true, correct, and complete. By Farm/Ag only (HVT still possible)
10
claiming the Downtown Business Incentive (DBI) Credit, Other (explanation required, please attach)
99
you agree to a waiver of the statute of limitations for any
year where the credit is claimed, per administrative rule.
This waiver will only apply to the DBI Credit and will not
apply to other tax assessments or refunds.

Page 7 of 7, C-2023 Instructions (Rev. 01/29/2024)

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