PDF document

- 1 -

                            Metro Supportive Housing Services Business Income Tax 
                  2023 Form METBIT-65 Business Tax Return for Partnerships Instructions  

                                                                  Federal and State Tax Pages. Be sure to include copies of 
General Information                                               the following  federal tax pages (and statements) and 
                                                                  Oregon tax pages (and statements) with your 2023 Form 
Important Reminders                                               METBIT-65 business tax return: 

File and  Pay Online and Manage your Business  Tax                • Federal Form 1065 (pages 1 through 5) and 
Accounts at Pro.Portland.gov. Portland Revenue Online 
                                                                    statements 
(PRO) allows you to: 
                                                                  • Federal Form 8825 and statements (if filed) 
 •           Register your business tax accounts                  • Federal Form 4797 and statements (if filed) 
 •           Update your business account information             • Oregon Form OR-65 with schedules if any Oregon 
 •           File a Metro business tax return                       modifications are claimed  
 •           Make payments                                        The  Revenue  Division  has  the  authority  to  request 
 •           Upload supporting tax pages and documents            additional tax pages  (including K-1s)  or supporting 
 •           View correspondence mailed to you                    documentation to verify the accuracy of the tax reported on 
 •           Provide Third-Party Access to your tax preparer      the tax return.  

For more  information and  to create your  account, please        What’s New?       
visit Pro.Portland.gov. 
                                                                  Market Based Sourcing.  For tax years beginning  on or 
Businesses  Required  to  File  a  Metro  Supportive              after January 1, 2023, Metro has adopted the Market Based 
Housing Services Tax Return. Businesses doing business            Sourcing  (MBS) and  single sales factor  apportionment 
in or that have  income from  within the Metro District           methodology to conform with the State of Oregon’s 
jurisdiction who have over $5 million in gross receipts from      apportionment  methodology. This change  includes 
both within and without the Metro’s jurisdiction are required     adoption of the state’s nexus standards and the interstate 
to pay a 1% tax on net business income that is apportioned        application of federal Public Law 86-272. 
to the jurisdiction. To determine if an address is  located       ‘Actual’ Previously Taxed Income Modification.     If the 
within the Metro tax jurisdiction, utilize the tool available at  partnership elects to use the ‘actual’ method for allocating 
gis.oregonmetro.gov/metromap.                                     its Metro income subject to tax to partners, there is a box to 
                                                                  indicate this election. 
Filing Deadline. The filing deadline for this return is April 
15,  2024.  Since  the  Metro Business Income Tax return          Amended Returns 
relies on information reported on the federal and/or Oregon 
                                                                  The Revenue Division does not have a separate form for 
tax returns, the due date for the 2023 Form METBIT-65 will 
                                                                  amended tax returns. To amend your 2023 Form METBIT-
be changed when there is a change to the federal or State 
                                                                  65, use the form for the tax year being amended and check 
of Oregon due dates. 
                                                                  the “Amended Return” box. If the address for the year you 
Extensions. Metro does not generally allow an extension           are amending  has changed, use your current mailing 
of time to pay the tax, even if the IRS allows an extension.      address, and check the box indicating the change.  
The tax balance is due on the original return due date. The 
                                                                  Fill in all amounts on your amended return, even if they are 
submission of an extension payment by the original return 
                                                                  the same as originally filed. If you are amending to make a 
due date provides an automatic six-month filing extension. 
                                                                  change to additions, subtractions, or credits, include detail 
If there is not a tax balance due but you would like to file an 
                                                                  of all items and amounts as well as any carryovers. Please 
extension, your federal extension will serve as your Metro 
                                                                  include  a  statement  explaining  what  changed  from  the 
extension and a separate Metro extension will not need to 
                                                                  original return. 
be submitted. When filing your return on the extended due 
date, check the “Extension Filed” box on the return. If no        If you change taxable income by filing an amended federal 
extension payment was made, please attach a copy of your          or Oregon income tax return, you must file an amended 
federal extension with your return.                               2023  Form METBIT-65  within 60 days of when the 
 
Page  1of  ,52023 METBIT-65 Instructions (Rev. 01/29/2024)

- 2 -

amended federal or Oregon income tax return  was filed.            If you did not satisfy either requirement, you will be charged 
Include a copy of your amended federal or Oregon income            an underpayment penalty of 5% of the unpaid tax, but not 
tax return and explain the adjustments made.                       less than $5.  

Do not amend your 2023 Form METBIT-65 if you amend the             Late Filing Penalty 
federal return to carry a net operating loss back to  prior 
                                                                   If you do not file your 2023 Form METBIT-65 by the original 
years. Metro only allows tax entities to carry net operating 
                                                                   due date, file an extension with the Revenue Division by the 
losses forward. Additionally, net operating losses for Metro 
                                                                   original due date, or include a copy of your federal extension 
Business Income Tax are  only generated  from the Metro 
                                                                   with your return when you file by the extended due date, the 
Business Income Tax return, not from your IRS or Oregon 
                                                                   following late filing penalties will apply: 
income tax return. 
                                                                    •
On the  prepayments line of your  amended  2023  Form                 5% of the amount of the total tax liability if the failure 
METBIT-65, enter the net tax as reflected on the original             to file is for a period less than four months. 
return or as previously adjusted. Do not include any penalty        • An additional penalty of 20% of the total tax liability 
or interest portions of payments already made.                        if the failure to file is for a period of four months or 
                                                                      more. 
                                                                    •
Apportionment                                                         An additional penalty of 100% of the total tax liability 
                                                                      of all tax years if the failure to file is for three or more 
In adopting Oregon’s apportionment  law,  Metro  uses                 consecutive tax years. 
Oregon’s single sales factor to apportion business income 
                                                                   No late filing penalty is due if a timely extension is filed with 
to or away from Metro.  Sales are  all gross receipts not 
                                                                   the Revenue Division and a 2023 Form METBIT-65 is filed 
allocated under ORS 314.615 to 314.645 that are received 
from  transactions  and  activity  in  the  regular  course  of    by the extended due date, or a copy of the federal extension 
business except  as  excluded  by  ORS  314.610(7),  the           is included with the return and the ‘Extension Filed’ box is 
related statutes, and related rules. Refer to Oregon’s             checked.   
statutes  and rules for guidance. Substitute Metro for 
state/Oregon as needed.                                            Late Payment Penalty 
Income may be apportioned only if there is regular business        Your  2023  business  tax must be paid by  April  15,  2024, 
activity both inside and outside of Metro that would allow         even if you requested an extension to file your 2023 Form 
another city and/or county to impose a similar tax.                METBIT-65. If you do not pay your tax by the original due 
                                                                   date, the following late payment penalties will apply: 
Penalty Calculation                                                 • 5% of the amount of the tax that was not paid by the 
                                                                      original due date. 
You  may  be  subject  to  penalties  for  underpaying  your 
                                                                    •
estimated tax, filing a late 2023 Form METBIT-65, and/or              An additional penalty of 20% of the unpaid tax must 
paying your income tax liability after the original due date of       be added if the failure to pay is for a period of four 
                                                                      months or more. 
the return.  
                                                                    • An additional penalty of 100% of the unpaid tax 
Although the Revenue Division assesses a late penalty for             liability of all tax years if the failure to pay is for three 
both failing to file 2023 Form METBIT-65 by the due date              or more consecutive years.  
and failing to pay the tax  by the original due date of the 
return, only one of these late penalties will be applied, even 
                                                                   Interest Calculation 
if there is a failure of both requirements. In these cases, only 
                                                                    
the late filing penalty is applied.  
                                                                   Late Payment Interest 
Underpayment Penalty                                               Interest is calculated at 10% per annum (.00833 multiplied 
You may be subject to a penalty for underpaying your tax           by the number of months). Calculate your interest from the 
liability  if,  by the original  due  date of the return, timely   original due date to the 15th day of the month following the 
payments are not made which are either:                            date of the payment.  

 •           At least 90% of the total tax balance due, or  
 •           100%  of the prior year’s tax liability  paid  by the 
             original due date.  
 
Page  2of  ,52023 METBIT-65 Instructions (Rev. 01/29/2024)

- 3 -

Quarterly Underpayment Interest NAICS. Enter the NAICS (North American Industry
Classification System) code for your business.
Quarterly underpayment interest will be due if estimated
payments were required and were underpaid. Calculate Name. Enter the legal name of the partnership.
your quarterly underpayment interest at a rate of 10% per
annum from the due date of each quarterly estimated Mailing Address. Enter your current mailing address. If the
payment to the original due date of the tax return to which address for the year you are filing has changed, check the
the estimated payments apply. box indicating the change.

The amount of underpayment is determined by comparing Initial Return Box. Check this box if this is the first Metro
the 90% of the current total tax liability amount to quarterly business income tax return filed by this entity.
estimated payments made prior to the original due date of
the tax return. Final Return Box. Check this box if this is your final return.
Attach an explanation.
There is no interest on underpayment of quarterly estimated
payments if: Amended Return Box. Check this box if you are filing an
amended return and have already submitted an original
• The total tax liability of the prior tax year was less return. You must include a copy of your original return with
than $1,000; your amended return. If you also filed amended federal
• An amount equal to at least 90% of the total tax and/or state returns, please include a copy (see “Amended
liability for the current tax year was paid in Returns” under “General Information” for additional
accordance with Section 7.05.190; or information).
• An amount equal to at least 100% of the prior year's
Extension Filed Box. Check this box If you have filed a
total tax liability was paid in accordance with
federal or state extension, or if you submitted an extension
Section 7.05.190.
payment by the original due date of the return. Include
required copies of federal extension as applicable (see
Metro Supportive Housing Services “Extensions” under “General Information” for additional
Business Income Tax Return information).
Filing Instructions for Partnerships
Part I – Gross Income and Apportionment
Rounding. Round off cents to whole dollars on your return
and schedules. To round, drop amounts under 50 cents and Line 1. Metro Gross Income. Metro gross income means
increase amounts from 50 to 99 cents to the next dollar. For “sales” as defined in Oregon statute and administrative
example, $1.39 becomes $1 and $2.50 becomes $3. If two rules, and includes income from all business activity within
or more amounts must be added to figure the amount to Metro (see Apportionment instructions above).
enter on a line, include cents when adding the amounts and
round off only the total. Line 2. Total Gross Income. Total gross income means
“sales” as defined in Oregon statute and administrative
General Return Information rules, and includes income from all business activity
everywhere, as reported on your federal Form 1065.
Tax Year. Enter the beginning and ending dates of your tax
year. For calendar year filers, this would be 01/01/2023 to Line 3. Apportionment Percentage. Line 1 divided by line
12/31/2023. 2. Round to 6 decimal places. This line cannot be more than
1.0.
Account #. If you have already registered for an account
and know your account number, enter your full Metro Tax Part II – Metro Business Income Tax
Account number beginning with SHB followed by ten digits.
This information can be found on letters the Revenue Actual PTI modification election. If the partnership is
Division has mailed to you related to your Metro business electing the ‘actual’ method for allocating the previously
tax account. If you do not know your number, leave field taxed income modification to their partners, check this box.
blank.
Line 4. Ordinary income or (loss) from Form 1065.
FEIN. Enter the Federal Employer Identification Number Ordinary income or loss is the ordinary business income or
(FEIN) of the partnership. loss reported on federal Form 1065. Enter the amount of

Page 3of ,52023 METBIT-65 Instructions (Rev. 01/29/2024)

- 4 -

ordinary business income or loss reported on federal Form Line 16. Penalty. Enter all late and/or underpayment
1065, line 23. penalties that apply, if known. Leave blank if unknown or not
applicable. If additional penalty is owed but was not
Line 5. Add-back of deductions not allowed. In calculated at the time of return submission, you will receive
determining income, no deduction is allowed for the a bill by mail.
following: taxes based on or measured by net income, the
federal built-in gains tax, or the City of Portland Clean Line 17. Interest. Enter any quarterly underpayment
Energy Surcharge. If amounts for these items have been interest and/or interest due on taxes not paid by their due
deducted to arrive at the net income reported on line 4, the dates, if known. Leave blank if unknown or not applicable.
amounts must be added back on line 5. If additional interest is owed but was not calculated at the
time of return submission, you will receive a bill by mail.
Line 6. Schedule K (lines 2-3, 5-13) and Oregon
modifications from Form 65. Enter the total of the Line 18. Balance due or (overpayment). If the sum of line
amounts from Schedule K lines 2-3 and 5-13. Add or 14 through line 17 is negative, this is the amount you have
subtract any Oregon modifications related to business overpaid. If the sum of line 14 through line 17 is positive,
income. Subtract any other pass-through income (or add you have a balance due.
any loss) from entities already taxed by Metro (attach a
statement). Part III – Tax Due / Refund

Line 7. Non-business income subtraction. Non-business Line 19. Overpayment. If line 18 is negative, this is the
income may be income or a loss. Remove any non- amount you have overpaid. If you have an overpayment,
business income or loss reported on line 4 and line 6. you may make an irrevocable choice to have the balance
Removal of income will be a subtraction while removal of a refunded to you or applied as an estimated payment to the
loss will be an addition. next open tax year. If no election is made, any
overpayment will be refunded to you.
Line 8. Subject net income. Enter the sum of line 4
through line 7. Line 19a. Refund. Enter the amount of the overpayment
you would like refunded to you on this line. If you would
Line 9. Metro apportioned net income. Multiply line 8 by like direct deposit of your refund, you must file your return
line 3. online at Pro.Portland.gov. If your return is filed on paper,
you will receive your refund in the mail by check. This
Line 10. Add-back of non-business income allocated to
election is irrevocable.
Metro. Return any non-business income or loss removed
above on line 7 that should be allocated to Metro. Line 19b. Apply as an estimated tax payment. Enter the
Line 11. Total business income taxable to Metro. Sum of amount of the overpayment you would like to apply as an
line 9 and line 10. estimated payment to the next open tax year on this line.
Line 12. Net operating loss deduction. Enter your net This election is irrevocable.
operating loss (NOL) from previous years as a negative
Line 20. Amount due. If line 18 is positive, you have a
number here. NOLs are allowed only if reported on prior
balance due. Make your check payable to ‘Metro SHS Tax.’
Metro Business Income Tax returns. This line cannot be
For fastest payment processing, pay online by logging into
greater than 75% of line 11. Any unused NOL may only be
your PRO account at Pro.Portland.gov .
carried forward for five years.

Line 13. Income subject to tax. Sum of line 11 and line 12. Part IV – Signature

Signature. An authorized representative of the business
Line 14. Metro business income tax. Multiply line 13 by
must sign and date the return and provide a contact email
the tax rate of 1.0%. The minimum tax is $100. If the amount
address and phone number. By signing the return, you
calculated is less than $100, enter $100.
acknowledge, under penalty of false swearing, that the
Line 15. Prepayments. Enter the total amount of information on the return is true, correct, and complete.
prepayments as a negative number. Include all quarterly
Preparer signature. Anyone who prepares, advises, or
estimated payments, extension payments, and any credits
assists in preparing business tax returns in exchange for
carried forward from prior years.

Page 4of ,52023 METBIT-65 Instructions (Rev. 01/29/2024)

- 5 -

compensation  of  any kind must be licensed to prepare 
Oregon returns and must sign the return. 

Mailing Instructions 

Mail your completed return and all required supporting tax 
pages in the same envelope. 

 •           If a PAYMENT is included with return: 

             Revenue Division – Metro SHS Tax 
             PO Box 9250 
             Portland OR 97207-9250 

             Make check payable to ‘Metro SHS Tax’. 
              
 •           If NO PAYMENT is included with return: 

             Processing – Metro SHS Tax 
             111 SW Columbia St, Suite 600 
             Portland, OR 97201-5840 

Page  5of  ,52023 METBIT-65 Instructions (Rev. 01/29/2024)

PDF file checksum: 168692515

(Plugin #1/9.12/13.0)