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                            Metro Supportive Housing Services Business Income Tax 
                  2023 Form METBIT-41 Business Tax Return for Trusts & Estates 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-41 business tax return: 

File and  Pay Online and Manage your Business  Tax               • Federal Form 1041 
Accounts at Pro.Portland.gov. Portland Revenue Online 
                                                                 • Schedule B (if filed) 
(PRO) allows you to: 
                                                                 • Schedule C (if filed) 
•            Register your business tax accounts                 • Schedule D (if filed) 
•            Update your business account information            • Schedule E (if filed) 
•            File a Metro business tax return                    • Schedule F (if filed) 
•            Make payments                                       • Federal Form 4797 (if filed) 
•            Upload supporting tax pages and documents           • Federal Form 6252 (if filed) 
•            View correspondence mailed to you                   • Federal Form 8824 (if filed) 
•            Provide Third-Party Access to your tax preparer     • Schedule OR-ASC  or OR-ASC-NP (if claiming 
                                                                   Oregon modifications) 
For more  information and  to create your  account, please 
visit Pro.Portland.gov.                                          The  Revenue  Division  has  the  authority  to  request 
                                                                 additional tax pages or supporting documentation to verify 
Businesses  Required  to  File  a  Metro  Supportive             the accuracy of the tax reported on the tax return. 
Housing Services (SHS) Tax Return. Businesses doing 
business in or that  have  income from  within the Metro         What’s New?       
District jurisdiction who have over $5 million  in  gross 
receipts from both within and without the Metro’s jurisdiction   Market Based Sourcing.  For tax years beginning  on or 
are required to pay a 1% tax on net business income that is      after January 1, 2023, Metro has adopted the Market Based 
apportioned to the jurisdiction. To determine if an address      Sourcing  (MBS) and  single sales factor  apportionment 
is located within the Metro tax jurisdiction, utilize the tool   methodology to conform with the State of Oregon’s 
available at http://gis.oregonmetro.gov/metromap/.               apportionment  methodology. This change  includes 
                                                                 adoption of the state’s nexus standards and the interstate 
Filing Deadline. The filing deadline for this return is April    application of federal Public Law 86-272. 
15,  2024.  Since  the  Metro Business Income Tax return 
relies on information reported on the federal and/or Oregon      Amended Returns 

tax returns, the due date for the 2023 Form METBIT-41 will       The Revenue Division does not have a separate form for 
be changed when there is a change to the federal or State        amended tax returns. To amend your 2023 Form METBIT-
of Oregon due dates.                                             41, use the form for the tax year being amended and check 
                                                                 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 
submission of an extension payment by the original return        Fill in all amounts on your amended return, even if they are 
due date provides an automatic six-month filing extension.       the same as originally filed. If you are amending to make a 
If there is not a tax balance due but you would like to file an  change to additions, subtractions, or credits, include detail 
extension, your federal extension will serve as your Metro       of all items and amounts as well as any carryovers. Please 
extension and a separate Metro extension will not need to        include a statement explaining what has changed from the 
be submitted. When filing your return on the extended due        original return. 
date, check the “Extension Filed” box on the return. If no 
extension payment was made, please attach a copy of your         If you change taxable income by filing an amended federal 
federal extension with your return.                              or Oregon income tax return, you must file an amended 
                                                                 2023  Form  METBIT-41  within 60 days of when the 

Page  1of  ,52023 METBIT-41 Instructions (Rev. 01/29/2024)

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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-41 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-41 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. 
                                                                    • 5% of the amount of the total tax liability if the failure 
On the  prepayments line of your  amended  2023  Form 
                                                                      to file is for a period less than four month. 
METBIT-41, enter the net tax as reflected on the original 
                                                                    • An additional penalty of 20% of the total tax liability 
return or as previously adjusted. Do not include any penalty 
                                                                      if the failure to file is for a period of four months or 
or interest portions of payments already made. 
                                                                      more. 
                                                                    • An additional penalty of 100% of the total tax liability 
Apportionment 
                                                                      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 
to or away from Metro.  Sales are  all gross receipts not          No late filing penalty is due if a timely extension is filed with 
allocated under ORS 314.615 to 314.645 that are received           the Revenue Division and a 2023 Form METBIT-41 is filed 
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-41. 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 
You  may  be  subject  to  penalties  for  underpaying  your          original due date. 
estimated tax, filing a late 2023 Form METBIT-41, 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 
the return.                                                           months or more. 
                                                                    • 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-41 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 
                                                                   by the number of months). Calculate your interest from the 
You may be subject to a penalty for underpaying your tax 
                                                                   original due date to the 15th day of the month following the 
liability  if,  by the original  due  date of the return, timely 
                                                                   date of the payment.  
payments are not made which are either:  
                                                                    
•            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-41 Instructions (Rev. 01/29/2024)

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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 trust or estate.
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. The amount of box indicating the change.
underpayment is determined by comparing the 90% of the
current total tax liability amount to quarterly estimated Initial Return Box. Check this box if this is the first Metro
payments made prior to the original due date of the tax business income tax return filed by this entity.
return.
Final Return Box. Check this box if this is your final return.
There is no interest on underpayment of quarterly estimated Attach an explanation.
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
total tax liability was paid in accordance with Extension Filed Box. Check this box If you have filed a
Section 7.05.190. federal or state extension, or if you submitted an extension
payment by the original due date of the return. Include
Metro Supportive Housing Services required copies of federal extension as applicable (see
Business Income Tax Return “Extensions” under “General Information” for additional
Filing Instructions for Trusts & Estates information).

Rounding. Round off cents to whole dollars on your return Part I – Gross Income and Apportionment
and schedules. To round, drop amounts under 50 cents and
increase amounts from 50 to 99 cents to the next dollar. For Line 1. Metro Gross Income. Metro gross income means
example, $1.39 becomes $1 and $2.50 becomes $3. If two “sales” as defined in Oregon statute and administrative
or more amounts must be added to figure the amount to rules, and includes income from all business activity within
enter on a line, include cents when adding the amounts and Metro (see Apportionment instructions above).
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
Tax Year. Enter the beginning and ending dates of your tax everywhere, as reported on your federal Form 1041.
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
Account #. If you have already registered for an account 1.0.
and know your account number, enter your full Metro Tax
Account number beginning with SHB followed by ten digits. Part II – Metro Business Income Tax
This information can be found on letters the Revenue
Line 4. Net Income or (Loss) Before Distribution from
Division has mailed to you related to your Metro business
Form 1041. Enter the net business income or loss from
tax account. If you do not know your number, leave field
lines 3, 5, and 6 from the federal Form 1041. Do not include
blank.
pass-through income.
FEIN. Enter the Federal Employer Identification Number
Line 5. Add-Back of Deductions Not Allowed. In
(FEIN) of the trust or estate.
determining income, no deduction is allowed for the
following: taxes based on or measured by net income, the
Page 3of ,52023 METBIT-41 Instructions (Rev. 01/29/2024)

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federal built-in gains tax, or the City of Portland Clean calculated at the time of return submission, you will receive
Energy Surcharge. If amounts for these items have been a bill by mail.
deducted to arrive at the net income reported on line 4, the
amounts must be added back on line 5. Line 17. Interest. Enter any quarterly underpayment
interest and/or interest due on taxes not paid by their due
Line 6. Other Additions or Subtractions. Enter any dates, if known. Leave blank if unknown or not applicable.
business income or loss from federal Form 1041 lines 1, 2, If additional interest is owed but was not calculated at the
4, 7, and 8. Subtract any business expenses and any time of return submission, you will receive a bill by mail.
distributions made to trustees/beneficiaries directly related
to business income included in this return. Attach a Line 18. Balance Due or (Overpayment). If the sum of line
statement for business expenses and provide copies of 14 through line 17 is negative, this is the amount you have
K-1s and a statement that identifies the distributions overpaid. If the sum of line 14 through line 17 is positive,
deducted as nonbusiness income. you have a balance due.

Line 7. Non-business income subtraction. Non-business Part III – Tax Due / Refund
income may be income or a loss. Remove any non-
business income included in the net income or (loss) Line 19. Overpayment. If line 18 is negative, this is the
reported on line 4 or 6. Removal of income will be a amount you have overpaid. If you have an overpayment,
subtraction while removal of a loss will be an addition. you may make an irrevocable choice to have the balance
refunded to you or applied as an estimated payment to the
Line 8. Subject Net Income. Enter the sum of line 4, next open tax year. If no election is made, any overpayment
through line 7. will be refunded to you.

Line 9. Metro Apportioned Net Income. Multiply line 8 by Line 19a. Refund. Enter the amount of the overpayment
line 3. you would like refunded to you on this line. If you would like
direct deposit of your refund, you must file your return online
Line 10. Add-back of non-business income allocated to at Pro.Portland.gov. If your return is filed on paper, you will
Metro. Return any non-business income or loss removed receive your refund in the mail by check. This election is
above on line 7 that should be allocated to Metro. irrevocable.
Line 11. Total business income taxable to Metro. Sum of
line 9 and line 10. Line 19b. Apply as an estimated tax payment. Enter the
amount of the overpayment you would like to apply as an
Line 12. Net Operating Loss Deduction. Enter your net
estimated payment to the next open tax year on this line.
operating loss (NOL) from previous years as a negative
This election is irrevocable.
number here. NOLs are allowed only if reported on prior
Metro Business Income Tax returns. This line cannot be Line 20. Amount Due. If line 18 is positive, you have a
greater than 75% of line 11. Any unused NOL may only be balance due. Make your check payable to ‘Metro SHS Tax.’
carried forward for five years. For fastest payment processing, pay online by logging into
your PRO account at Pro.Portland.gov.
Line 13. Income Subject to Tax. Sum of line 11 and line
12.
Part IV – Signature

Line 14. Metro Business Income Tax. Multiply line 13 by An authorized representative of the business
Signature.
the tax rate 1.0%. The minimum tax due is $100. If the must sign and date the return and provide a contact email
amount calculated is less than $100, enter $100. address and phone number. By signing the return, you
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
estimated payments, extension payments, and any credits Preparer signature. Anyone who prepares, advises, or
carried forward from prior years. assists in preparing business tax returns in exchange for
compensation of any kind must be licensed to prepare
Line 16. Penalty. Enter all late and/or underpayment
Oregon returns and must sign the return.
penalties that apply, if known. Leave blank if unknown or not
applicable. If additional penalty is owed but was not

Page 4of ,52023 METBIT-41 Instructions (Rev. 01/29/2024)

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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-41 Instructions (Rev. 01/29/2024)

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