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                                                   City of Portland Business License Tax 
                        Multnomah County Business Income Tax 
                Form E-2023 Business Tax Return for Trusts & Estates Instructions 
                                                               
                                                               •      Schedule E and statements (if filed) 
General Information 
                                                                      If more than one Schedule E, include all of them 
                                                               •      Schedule F and statements (if filed) 
Important Reminders 
                                                                      If more than one Schedule F, include all of them 
Note. Please use form SP-2023 for conservatorships, living     •      Schedule D and statements (if filed, including Form 
trusts, and  other revocable trusts that report income and            4797, Form 6252, Form 8824, and Form 8949) 
                                                                      If more than one Schedule D, include all of them 
expenses on an individual Form 1040. 
                                                               •      Schedule B and statements (if filed, and related to 
File and  Pay Online and Manage your Business  Tax                    your business) 
Accounts  at Pro.Portland.gov.  The Revenue Division’s                If more than one Schedule B, include all of them 
taxpayer portal can be used to manage your business tax        •      Schedule OR-ASC  or OR-ASC-NP (if claiming 
accounts. Portland Revenue Online (PRO) allows you to:                Oregon modifications) 
                                                               •
 •    Register your business                                          HVT Schedule, if required (Portland form) 
                                                               •
 •    Update your business account information                        Schedule R, if required (Portland form) 
 •    File a Business Tax Return                               The  Revenue  Division  has  the  authority  to  request 
 •    Make payments                                            additional tax pages or supporting documentation to verify 
 •    Upload supporting tax pages and documents                the accuracy of the tax reported on the tax return.   
 •    View correspondence mailed to you 
                                                               See Business Tax Administrative Rule  (BTAR)  200.23-1 
 •    Provide Third-Party Access to your preparer 
                                                               Doing Business for an Estate – for tax years beginning on 
For more  information and  to create your  account, please     or after 1/1/2023 and BTAR 200.95-2A Doing Business for 
visit Pro.Portland.gov.                                        a Trust for more information. 
Filing Deadline. The filing deadline for this return is April 
                                                               What’s New? 
15, 2024. Since the E-2023 relies on information reported 
on the federal and/or Oregon tax return, the due date for the  Market Based Sourcing.    For tax years beginning  on or 
E-2023  will  be changed  when there is  a change to the       after January 1, 2023, the City of Portland and Multnomah 
federal or State of Oregon due dates.                          County have adopted the  Market Based Sourcing (MBS) 
Extensions. The  Revenue  Division  does  not  generally       and single sales factor  apportionment methodology to 
allow an extension of time to pay the tax, even if the IRS     conform with the State of Oregon’s  apportionment 
allows an extension. The tax balance is due on the original    methodology. This change includes adoption of the state’s 
return due date. The submission of an extension payment        nexus standards and the  interstate  application of  federal 
by the original return due date provides an automatic six-     Public Law 86-272.    
month filing extension. If there is not a tax balance due but 
                                                               Downtown Business Incentive Credit.  If your business 
you would like to file an extension, your federal or State of 
                                                               entered  into a new  lease, extended a  current  lease, or 
Oregon  extension  will  serve  as  your  Business  Tax 
extension  and a separate extension will not need to be        owned and  occupied their own business space in Lower 
submitted.  When filing your return on the extended due        Albina, Lloyd District, Old Town/Chinatown, or Downtown 
date, check the “Extension Filed” box on the return. If no     Portland, your business may be eligible for the Downtown 
extension payment was made, please attach a copy of your       Business Incentive  Credit.  Visit  our webpage  at 
federal or State of Oregon extension with your return.         portland.gov/revenue/dbi  for more information about the 
                                                               credit and how to determine if your business is eligible to 
Federal Tax Pages: Be sure to include the following federal 
                                                               apply for the credit.
tax pages  (and statements) and  Portland schedules  with                            
your Form E-2023 Business Tax Return:                          Increase to Residential Rental Registration Fee. For tax 
 •    Federal Form 1041                                        years beginning on or after January 1, 2023, the Residential 
 •    Schedule C and statements (if filed)                     Rental Registration fee has increased to $70 per unit. 
      If more than one Schedule C, include all of them 
 
Page 1 of 7, E-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.
• Schedule C. Enter the sum of the positive numbers
On the prepayments line of your amended Business Tax reported on lines 3 and 6 of the primary Schedule C.
Return, enter the net tax for each jurisdiction as reflected on Include gross receipts from Schedule F if the taxfiler
the original return or as previously adjusted. Do not include does not qualify for the farming exemption under
any penalty or interest portions of payments already made. Portland City Code 7.02.400 (H).
• Additional Schedule C. Enter the sum of the positive
Apportionment numbers reported on lines 3 and 6 of all other
In adopting Oregon’s apportionment law, both jurisdictions Schedule Cs included on Form 1040.
use Oregon’s single sales factor to apportion business • Schedule D. Enter the sum of the positive numbers
income to or away from the jurisdictions. Sales are all gross reported on lines 4 and 11 of the Schedule D and any
receipts not allocated under ORS 314.615 to 314.645 that other business capital gains.
are received from transactions and activity in the regular • Schedule E. Enter the sum of the positive numbers
course of business except as excluded by ORS 314.610(7), reported on lines 23a and 23b of the Schedule E. If
the related statutes, and related rules. Refer to Oregon’s there are any residential rental properties in the City of
statutes and rules for guidance. Substitute city/Portland or Portland, make sure to complete and submit a
county/Multnomah County for state/Oregon as needed. Schedule R (with payment) with your exemption
With a few exceptions, income earned in Portland is also request.
earned in Multnomah County. Income may be apportioned • Form 6252 and Schedule B. Enter the sum of the
only if there is regular business activity both inside and number reported on line 26 of Form 6252 and any
outside these jurisdictions that allow another city and/or interest from installment sale income from business
county to impose a similar tax. property reported on Schedule B.

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

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If your total gross receipts from all business activity are       • An additional penalty of 20% of the total tax liability 
$50,000 or more, you do not qualify for the gross receipts          must be added if the Business Tax Return is four 
exemption for the City of Portland Business License Tax.            months or more past due. 
If your total gross receipts from all business activity are       • An additional penalty of 100% of the total tax liability 
$100,000 or more, you do not qualify for the gross receipts         of all tax years for any Business Tax Return which 
exemption for the Multnomah County Business Income Tax.             is delinquent for three or more consecutive years. 
                                                                  No late filing penalty is due if a timely extension is filed with 
Other Exemptions 
                                                                  the Revenue Division and a Business Tax Return is filed by 
If you are claiming  an  exemption other than  the gross          the  extended due date, or a copy of the federal  or state 
receipts  exemption, you  must  attach a statement that           extension is included with the Business Tax Return and the 
explains which exemption you are claiming and provide             ‘Extension Filed’ box is checked. 
support for  that exemption (See  Exemption Codes  in the 
Appendix). 
                                                                  Late Payment Penalty 
Penalty Calculation                                               Your  2023  business tax must be paid by  April 15,  2024, 
                                                                  even if you requested an extension to file your Business Tax 
You  may  be  subject  to  penalties  for  underpaying  your 
                                                                  Return. If you do not pay your tax by the original due date, 
estimated tax, filing a late  Business Tax  Return, and/or 
                                                                  the following late payment penalties will apply: 
paying your business tax liability after the original due date 
of the return.                                                    • 5% of the amount of the tax that was not paid by the 
Although the Revenue Division assesses a late penalty for           original due date. 
                                                                  •
both failing to file a Business Tax Return by the due date          An additional penalty of 20% of the unpaid tax must 
and failing to pay the tax  by the original due date of the         be added if the failure to pay is for a period of four 
return, only one of these late penalties will be applied, even      months or more. 
if there is a failure of both requirements. In these cases, only  • An additional penalty of 100% of the  unpaid  tax 
the late filing penalty is applied.                                 liability of all tax years if the failure to pay is for three 
                                                                    or more consecutive years. 

Underpayment Penalty                                              Interest Calculation 
You may be subject to a penalty for underpaying your tax 
liability  if,  by the original  due  date of the return,  timely 
                                                                  Late Payment Interest 
payments are not made which are either: 
                                                                  Interest is calculated at 10% per annum (.00833 multiplied 
 •     At  least 90%  of the total tax due  on line  18 
                                                                  by the number of months). Calculate your interest from the 
       (Multnomah County) and line 26 (City of Portland),                              th
                                                                  original due date to the 15  day of the month following the 
       or 
                                                                  date of the payment. 
 •     100% of the prior year’s tax for each jurisdiction. 
If you did not satisfy either requirement, you will be charged 
a 5% underpayment penalty on the unpaid amount, but not           Quarterly Underpayment Interest 
less than $5 per jurisdiction.                                    Quarterly underpayment  interest will be due if estimated 
                                                                  payments were required  and  were underpaid. Calculate 
                                                                  your quarterly underpayment interest at a rate of 10% per 
Late Filing Penalty 
                                                                  annum  from  the  due  date  of  each  quarterly  estimated 
If you do not file your Business Tax Return by the original       payment to the original due date of the tax return to which 
due date, file an extension with the Revenue Division by the      the estimated payments apply. 
original due date, or include a copy of your federal or state 
extension with your Business Tax Return when you file by          The amount of underpayment is determined by comparing 
the extended due date, the following late filing penalties will   the 90% of the current total tax liability amount to quarterly 
apply:                                                            estimated payments made prior to the original due date of 
                                                                  the tax return. 
 •     5% of the amount of the total tax liability if the failure 
                                                                  There is no interest on underpayment of quarterly estimated 
       to file is for a period less than four months. 
                                                                  payments if:  

Page 3 of 7, E-2023 Instructions (Rev. 01/29/2024)

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• The total tax liability of the prior tax year was less final return. If you have sold your business, indicate the
than $1,000 for the jurisdiction; name and address of the entity you sold your business to.
• An amount equal to at least 90% of the total tax Amended Return Box. Check this box if you are amending
liability for the current tax year was paid in your 2023 tax return. See the Amended Return instructions
accordance with PCC 7.02.530 and/or MCC above for more information about amending your Business
12.530; or Tax Return.
• An amount equal to at least 100% of the prior year’s
total tax liability was paid in accordance with PCC Extension Filed Box. Check this box if you filed an
extension to file your federal or state income taxes. Attach
7.02.530 and/or MCC 12.530.
a copy of your federal or State of Oregon extension to your
Trusts & Estates Business Tax Return tax return.

Filing Instructions Part I – Gross Income

Rounding. Round cents to whole dollars on your return and Line 1. Multnomah County gross income. Multnomah
schedules. To round, drop amounts under 50 cents and County gross income means “sales” as defined in Oregon
increase amounts from 50 to 99 cents to the next dollar. For statute and administrative rules, and includes income from
example, $1.39 becomes $1 and $2.50 becomes $3. If two all business activity within Multnomah County (see
or more amounts must be added to figure the amount to Apportionment instructions above).
enter on a line, include cents when adding the amounts and
Line 2. Total gross income from all Schedules B, C, D,
round off only the total.
E, and F in all locations. Total gross income means “sales”
as defined in Oregon statute and administrative rules, and
General Return Information includes income from all business activity everywhere, as
reported on your federal Form 1041.
Tax Year. Enter the beginning and ending dates for your tax
year. For calendar year filers, this would be 01/01/2023 to Line 3. Multnomah County apportionment percentage.
12/31/2023. Line 1 divided by line 2. Round to 6 decimal places. This
line cannot be more than 1.0.
Account #. Enter your BZT account number (ten digits).
This information can be found on letters the Revenue Line 4. City of Portland gross income. Portland gross
Division has mailed to you related to your business tax income means “sales” as defined in Oregon statute and
account. If you cannot find your account number, call the administrative rules, and includes income from all business
Revenue Division at (503) 823-5157. activity within the City of Portland (see Apportionment
instructions above).
FEIN. Enter the Federal Employer Identification Number
(FEIN) of the trust or estate. Line 5. Total gross income from all Schedules B, C, D,
E, and F in all locations. Total gross income means “sales”
NAICS. Enter the NAICS (North American Industry as defined in Oregon statute and administrative rules, and
Classification System) code for your business. includes income from all business activity everywhere, as
If you are a residential lessor limited to Federal Schedules reported on your federal Form 1041. Generally, this should
be the same amount reported on line 2, but there are certain
E and D, enter a business code of 531110. Commercial
situations where this amount may be different.
lessors should enter a business code of 531120.
Line 6. City of Portland apportionment percentage. Line
Name. Enter the legal name of the trust or estate.
4 divided by line 5. Round to 6 decimal places. This line
Mailing Address. Always enter your current mailing cannot be more than 1.0.
address. If the address for the year you are filing has
Exempt – Multnomah County. Check this box if you are
changed from last year, check the box indicating the
claiming an exemption from the Multnomah County
change.
Business Income Tax and select a reason for the
Initial Return Box. Check this box if this is your first return exemption. If your reason for being exempt is other than for
you are filing with us. Attach the Business Tax Registration gross receipts, attach a statement explaining which
Form, if not mailed to us previously. exemption you are claiming and provide support for that
Final Return Box. Check this box if you no longer conduct exemption (See Exemption Codes in the Appendix).
business in the City of Portland and/or Multnomah County Exempt – City of Portland. Check this box if you are
and this is the final return you are filing with us. Attach an claiming an exemption from the City of Portland Business
Out of Business Notification Form or an explanation for your License Tax and select a reason for the exemption. If your

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

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reason for being exempt is other than for gross receipts, Part III – Multnomah County Business
attach a statement explaining which exemption you are
Income Tax
claiming and provide support for that exemption (See
Exemption Codes in the Appendix). Line 11. Multnomah County modifications. Enter any
modifications to Multnomah County’s adjusted net income
NOTE: If you have claimed an exemption from the
here. This would generally apply only in rare circumstances.
Multnomah County and the City of Portland business taxes,
Non-business income may be income or a loss. Remove
you generally don’t need to fill out the following parts of the
any non-business income or loss reported in adjusted net
return:
income (line 10). Removal of income will be a subtraction
while removal of a loss will be an addition.
• Part II – Net Income
• Part III – Multnomah County Business Income Tax Line 12. Multnomah County subject net income. Sum of
(if claiming an exemption from Multnomah County line 10 and line 11.
Business Income Tax)
Line 13. Multnomah County apportioned net income.
• Part IV – City of Portland Business License Tax (If Line 12 multiplied by line 3.
claiming an exemption from the City of Portland
Business License Tax) Line 14. Add-back of non-business income allocated to
Multnomah County. Return any non-business income or
However, even if you are exempt from the City of Portland loss removed above on line 11 that should be allocated to
Business License Tax, you are still liable for any Heavy Multnomah County.
Vehicle Use Tax or Residential Rental Registration fees that
Line 15. Total business income taxable to Multnomah
may be due. If you are subject to either tax/fee, please
County. Sum of line 13 and line 14.
complete line 28 (Heavy Vehicle Use Tax) and/or line 29
(Residential Rental Registration Fee) and attach the Line 16. Net operating loss deduction. Enter your net
required schedule(s) with your Business Tax Return. Be operating loss (NOL) from previous years as a negative
sure to include any payment due for these taxes/fees, or number here. NOLs are allowed only if reported on prior
Business Tax Returns. This deduction cannot be greater
you will be subject to late payment penalties and interest on
than 75% of line 15. Any unused NOL may only be carried
the unpaid balance.
forward for five tax years.
If you have made estimated prepayments and would like Line 17. Income subject to tax. Sum of line 15 and line 16.
them refunded to you or credited to the next tax year, fill out
Line 18. Multnomah County Business Income Tax. Line
the prepayment section(s) of the return to tell us how you 17 multiplied by the tax rate of 2%. The minimum amount of
would like your overpayment applied in Part V – Tax Due / tax owed is $100.
Refund.
Part IV – City of Portland Business License
Part II – Net Income Tax

Line 7. Net income or (loss) before distribution. Enter Line 19. City of Portland modifications. Enter any
the net business income or loss from lines 3, 5 and 6 from modifications to City of Portland’s adjusted net income here.
the federal Form 1041. Do not include pass-through This would generally apply only in rare circumstances. Non-
income. business income may be income or a loss. Remove any
non-business income or loss reported in adjusted net
Line 8. Taxes based on or measured by net income add-
back. Add back any taxes based on or measured by net income (line 10). Removal of income will be a subtraction
income, including the City of Portland Business License while removal of a loss will be an addition.
Tax, Multnomah County Business Income Tax, and Metro Line 20. City of Portland subject net income. Sum of line
Business Income Tax, that have been deducted to arrive at 10 and line 19.
the net income reported on line 7.
Line 21. City of Portland apportioned net income. Line
Line 9. Other additions and subtractions. Enter any 20 multiplied by line 6.
business income or loss from federal Form 1041 lines 1, 2,
Line 22. Add-back of non-business income allocated to
4, 7 and 8. Subtract any business expenses directly related
City of Portland. Return any non-business income or loss
to the business income. Attach a schedule for business removed above on line 19 that should be allocated to the
expenses. City of Portland.
Line 10. Adjusted net income. Sum of lines 7 through 9.
Line 23. Total business income taxable to City of
Portland. Sum of line 21 and line 22.

Page 5 of 7, E-2023 Instructions (Rev. 01/29/2024)

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Line 24. Net operating loss deduction. Enter your NOL If no election is made, any overpayment will be refunded to
from previous years as a negative number here. NOLs are you.
allowed only if reported on prior Business Tax Returns. This
Line 37a. Refund. Enter the amount of the overpayment
deduction cannot be greater than 75% of line 23. Any
you would like refunded to you on this line. If you would like
unused NOL may only be carried forward for five tax years.
direct deposit of your refund, please file your Business Tax
Line 25. Income subject to tax. Sum of line 23 and line 24. Return online at Pro.Portland.gov. If your return is filed on
Line 26. City of Portland Business License Tax. Line 25 paper, you will receive your refund in the mail by check. This
multiplied by the tax rate of 2.6%. The minimum amount of election is irrevocable.
tax owed is $100. Enter the
Line 37b. Apply as an estimated tax payment.
Line 27. Downtown Business Incentive Credit. Claim amount of the overpayment you would like to apply as an
25% of your total calculated Downtown Business Incentive estimated payment to the next open tax year on this line.
Credit on this return. The amount of claimed credit cannot This election is irrevocable.
exceed the amount of City of Portland Business License
Line 38. Combined amount due with report. If the sum of
Tax on line 26.
lines 31 through 35 is positive, you have a balance due.
Do not claim any credit if you did not apply and receive an
Make your check payable to ‘City of Portland’ and submit
approval letter from the Revenue Division.
with your Business Tax Return. For fastest payment
Line 28. Heavy Vehicle Use Tax (HVT). If you are subject processing, pay online by logging into your PRO account at
to Portland’s Heavy Vehicle Use Tax, enter the amount from Pro.Portland.gov.
line 4 of the HVT Schedule here.
Part VI – Signature
Line 29. Residential Rental Registration Fee. If you are
subject to Portland’s Residential Registration Fee, enter the Signature. An authorized representative of the business
amount due from the Schedule R here. must sign and date the return and provide a contact email
Line 30. Total of City of Portland taxes and fees. Sum of address and phone number. By signing the return, you
lines 26 through 29. acknowledge, under penalty of false swearing, that the
information on the return is true, correct, and complete. By
Part V – Tax Due / Refund claiming the Downtown Business Incentive (DBI) Credit,
Line 31. Total business taxes and fees. Sum of line 18 you agree to a waiver of the statute of limitations for any
and line 30. year where the credit is claimed, per administrative rule.
This waiver will only apply to the DBI Credit and will not
Line 32. Late payment or late filing penalty. Enter the apply to other tax assessments or refunds.
amount of any late payment of taxes or late filing penalty
owed. Preparer Signature. Anyone who prepares, advises, or
Line 33. Underpayment penalty. Enter the amount of any assists in preparing business income tax returns in
underpayment penalty owed. exchange for compensation of any kind must be licensed to
prepare Oregon returns and must sign the return.
Line 34. Interest. Enter any quarterly underpayment
interest and/or interest due on taxes not paid by their due
dates. Mailing Instructions

Line 35. Quarterly estimated payments and other Mail your completed return and all required supporting tax
prepayments. Enter the total amount of prepayments as a pages in the same envelope to:
negative number here. This includes all quarterly estimated
Revenue Division
payments, extension payments, and any credits carried
111 SW Columbia St. Suite 600
forward from prior years.
Portland, OR 97201-5840
Line 36. Overpayment. If the sum of lines 31 through 35 is
negative, this is the amount you have overpaid. If you have Appendix
an overpayment, you may make an irrevocable choice to
have the balance: Exemption Codes

• Refunded to you, or If you are claiming an exemption from the City of Portland
• Applied as an estimated tax payment to the next Business License Tax and/or Multnomah County Business
open tax year. Income Tax, please use one of the following Exemption
Codes listed below:

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 Code  Explanation 
 1  No business activity in jurisdiction  
    Gross business income from all sources less 
 2  than $100,000  (Multnomah County Only) 
    Gross business income from all sources less 
 3  than $50,000 (City of Portland Only) 
    Only business is the operation of less than 10 
 4  residential rentals (Multnomah County Only) 
 5  Real estate brokers (City of Portland Only)     
 6  Insurance agent  
 7  PL 86-272 
 8  Non-profit under ORS 317.080 
    Trusts exempt from federal income tax under 
 9  IRC § 501 
 10 Farm/Ag only (HVT still possible) 
 99 Other (explanation required, please attach) 
 
Page 7 of 7, E-2023 Instructions (Rev. 01/29/2024)

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