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                                                    City of Portland Business License Tax 
                        Multnomah County Business Income Tax 
      Form P-2022 Combined Business Tax Return for Partnerships Instructions 

                                                              • HVT Schedule, if required (Portland form) 
 General Information                                          • Schedule R, if required (Portland form) 

Important Reminders                                           What’s New? 

File and  Pay Online and Manage your  Business Tax            Increase to Owner’s Compensation Deduction. For tax 
Accounts at Pro.Portland.Gov.  The Revenue Division’s         years beginning on or after January 1, 2022, the maximum 
taxpayer portal can be used to manage your business tax       Owner’s Compensation  Deduction  has  increased to 
accounts. Portland Revenue Online (PRO) allows you to:        $147,000, per owner,  for the  City of  Portland Business 
 •    Register your business                                  License Tax. 
 •    Update your business account infor0mation               For tax years beginning  on or after January 1, 2022, the 
 •    File a Combined Business Tax Return                     maximum Owner’s Compensation Deduction has increased 
 •    Make payments                                           to  $145,000,  per  owner,  for  the  Multnomah County 
 •    Upload supporting tax pages and documents               Business Income Tax. 
 •    View correspondence mailed to you 
                                                              Increase to Residential Rental Registration Fee. For tax 
 •    Provide Third-Party Access to your preparer 
                                                              years beginning on or after January 1, 2022, the Residential 
For more  information and  to create your  account, please    Rental Registration fee has increased to $65 per unit. 
visit Pro.Portland.gov. 
                                                              Amended Returns 
Filing Deadline. The filing deadline for this return is April 
18, 2023. Since the P-2022 relies on information reported     The Revenue Division does not have a separate form for 
on the federal and/or Oregon tax return, the due date for the amended tax returns. To amend your Combined Business 
P-2022  will  be changed  when there is  a change to the      Tax Return, use the form for the tax year being amended 
federal or State of Oregon due dates.                         and check the “Amended” box. If the address for the year 
Extensions. The  Revenue  Division  does  not  generally      you’re amending has changed,  use your  current  mailing 
allow an extension of time to pay the tax, even if the IRS    address and check the “Mailing Address Change” box. 
allows an extension. The tax balance is due on the original 
                                                              Fill in all amounts on your amended return, even if they are 
return due date. The submission of an extension payment 
                                                              the same as originally filed. If you are amending to make a 
by the original return due date provides an automatic six-
                                                              change to additions, subtractions, or credits, include detail 
month filing extension. If there is not a tax balance due but 
                                                              of all items and amounts as well as any carryovers. Please 
you would like to file an extension, your federal or State of 
Oregon  extension will serve as your  Combined Business       include  a  statement  explaining  what  changed  from  the 
Tax extension and a separate extension will not need to be    original return. 
submitted.  When filing your return on the extended due       If you change taxable  income by  filing an original or 
date, check the “Extension Filed” box on the return. If no    amended federal or Oregon income tax return, you must file 
extension payment was made, please attach a copy of your      an amended Combined Business Tax Return within 60 days 
federal or State of Oregon extension with your return.        of when the original or amended federal or Oregon income 
Federal  and State  Tax Pages.  Be sure  to  include the      tax return is filed. Include a copy of your original or amended 
following federal tax pages (and statements), Oregon tax      federal or Oregon  income tax  return with your amended 
pages (and statements), and Portland Schedules with your      Combined  Business  Tax  Return  and  explain  the 
P-2022 Combined Business Tax Return:                          adjustments made. 
 •    Federal Form 1065  (pages 1  through 5)  and            Do not amend your Combined Business Tax Return if you 
      statements                                              amend the federal return to carry a net operating loss back 
 •    Form 8825 and statements (if filed)                     to prior years. The Revenue Division only allows tax entities 
 •    Form 4797 and statements (if filed)                     to  carry  net  operating  losses  forward.  Additionally,  net 
 •    Oregon Form OR-65 with schedules if any Oregon          operating losses for the City of Portland Business License 
      modifications are claimed                               Tax and/or Multnomah County Business Income Tax are 
Page 1 of 6, P-2022 Instructions (Rev. 01/17/2023)

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only generated from the Combined Business Tax Return,          To  calculate  the  total  gross  receipts  from  all  business 
not from your IRS or Oregon income tax return.                 activity, add the following lines together: 
On the  prepayments line  of  your amended  Combined           • Form 1065.  Add the sum of the positive numbers 
Business Tax Return, enter the net tax for each jurisdiction     reported on  lines 1c, 4, 6, and  7 from  page 1  of 
as reflected on the original return or as previously adjusted.   Form 1065. Include  gross receipts from farming 
Do not include any penalty or interest portions of payments      operations (if the net income is reported on line 5 of 
already made.                                                    Form 1065) if the taxfiler  does not  qualify for the 
                                                                 farming  exemption  under  Portland  City  Code 
Apportionment                                                    7.02.400 (H). Add the sum of the positive numbers 
                                                                 reported  on  lines  3c  and  5  through  11  of  the 
For each jurisdiction, gross income  includes  all  business     Schedule K. 
income including, but not limited to, gross receipts, service  • Form  8825. Add  the  sum  of  positive  numbers 
income, interest, dividends, income from  contractual            reported on line 18a. If the partnership owns any 
agreements, gross rents, and gains on sale of business           residential rental properties in the City of Portland, 
property.                                                        make sure to complete and submit a            Schedule R 
With a few exceptions, income earned in Portland is also         (with payment) with your exemption request. 
earned in Multnomah County. Income may be apportioned          If your total gross receipts  from all business activity are 
only  if there  is regular business activity outside  Portland $50,000 or more, you do not qualify for the gross receipts 
and/or Multnomah County. Services  performed  outside          exemption for the City of Portland Business License Tax. 
Portland and/or Multnomah County may be apportioned 
based upon  the  percentage of  performance outside the        If your total gross receipts from all business activity are 
applicable jurisdiction. Sales of tangible personal property   $100,000 or more, you do not qualify for the gross receipts 
may  be  apportioned  only  if  a  business  has  payroll  or  exemption for the Multnomah County Business Income Tax. 

property outside the jurisdictions.                            OTHER EXEMPTIONS 
Exempt Businesses                                              If you are claiming  an  exemption other than  the gross 
                                                               receipts  exemption, you  must  attach a statement that 
If your  business is exempt from the City of  Portland 
                                                               explains which exemption you are claiming and provide 
Business License Tax, as allowed under Portland City Code 
                                                               support for  that exemption (See  Exemption Codes  in the 
(PCC) 7.02.400 or the Multnomah County Business Income 
                                                               Appendix). 
Tax, as allowed under  Multnomah County Code (MCC) 
12.400, you are still required to file a Combined Business     Penalty Calculation 
Tax Return by the due date of your return. Failure to do so 
may result in a Presumptive Fee bill and your account will     You  may  be  subject  to  penalties  for  underpaying  your 
remain in non-compliance status  until the required            estimated tax, filing a late Combined Business Tax Return, 
documentation is received.                                     and/or paying your business tax liability  after the  original 
                                                               due date of the return.  
This exemption is from the business taxes only. Any other 
tax, surcharge, or fee may fall under separate exemption       Although the Revenue Division assesses a late penalty for 
criteria, for which your business may still be liable.         both failing to file a Combined Business Tax Return by the 
                                                               due date and failing to pay the tax by the original due date 
GROSS RECEIPTS EXEMPTION                                       of the return, only one of these late penalties will be applied, 
Note:  The following  amounts are taken from the federal       even  if there is  a failure  of both requirements. In these 
income tax return.                                             cases, only the late filing penalty is applied. 
To  claim  a  gross  receipts  exemption  from  the  City  of 
Portland  Business License Tax and/or the  Multnomah           UNDERPAYMENT PENALTY 
County Business Income Tax, the total gross receipts from      You  may subject to a  penalty  for underpaying  your 
all business activity must be under:                           estimated tax if, by the original due date of the return, timely 
•    $50,000 for the City of Portland Business License         prepayments are not made which are either: 
     Tax exemption, and                                        • At  least 90%  of the total tax due  on line  19 
•    $100,000 for the Multnomah County Business                  (Multnomah County) and line 30 (City of Portland), 
     Income Tax exemption.                                       or 
                                                               • 100% of the prior year’s tax for each jurisdiction. 

Page 2 of 6, P-2022 Instructions (Rev. 01/17/2023)

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If you did not satisfy either requirement, you will be charged QUARTERLY UNDERPAYMENT INTEREST
a 5% underpayment penalty on the unpaid amount, but not
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 Combined Business Tax Return by the payment to the original due date of the tax return to which
original due date, file an extension with the Revenue the estimated payments apply.
Division by the original due date, or include a copy of your
The amount of underpayment is determined by comparing
federal or state extension with your Combined Business Tax the 90% of the current total tax liability amount to quarterly
Return when you file by the extended due date, the estimated payments made prior to the original due date of
following late filing penalties will apply: 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:
• An additional penalty of 20% of the total tax liability
•
must be added if the Combined Business Tax The total tax liability of the prior tax year was less
Return is four months or more past due. than $1,000 for the jurisdiction.
•
• An additional penalty of 100% of the total tax liability An amount equal to at least 90% of the total tax
of all tax years for any Combined Business Tax liability for the current tax year was paid in
Return which is delinquent for three or more accordance with PCC 7.02.530 and/or MCC
consecutive years. 12.530; or
• An amount equal to at least 100% of the prior year’s
No late filing penalty is due if a timely extension is filed with total tax liability was paid in accordance with PCC
the Revenue Division and a Combined Business Tax Return
7.02.530 and/or MCC 12.530.
is filed by the extended due date, or a copy of the federal or
state extension is included with the Combined Business Tax Combined Business Tax Return Filing
Return and the ‘Extension Filed’ box is checked.
Instructions

LATE PAYMENT PENALTY Rounding. Round cents to whole dollars on your return and
schedules. To round, drop amounts under 50 cents and
Your 2022 business tax must be paid by April 18, 2023,
increase amounts from 50 to 99 cents to the next dollar. For
even if you requested an extension to file your Combined
example, $1.39 becomes $1 and $2.50 becomes $3. If two
Business Tax Return. If you do not pay your tax by the
or more amounts must be added to figure the amount to
original due date, the following late payment penalties will
enter on a line, include cents when adding the amounts and
apply:
round off only the total.
• 5% of the amount of the tax that was not paid by the
original due date. General Return Information
• An additional penalty of 20% of the unpaid tax must
be added if the failure to pay is for a period of four Tax Year. Enter the beginning and ending dates for your tax
months or more. year. For calendar year filers, this would be 01/01/2022 to
• An additional penalty of 100% of the unpaid tax 12/31/2022.
liability of all tax years if the failure to pay is for three Account #. Enter your BZT account number (ten digits).
or more consecutive years. This information can be found on letters the Revenue
Division has mailed to you related to your business tax
Interest Calculation account. If you cannot find your account number, call the
Revenue Division at (503) 823-5157.
LATE PAYMENT INTEREST FEIN. Enter the Federal Employer Identification Number
Interest is calculated at 10% per annum (.00833 multiplied (FEIN) of the partnership.
by the number of months). Calculate your interest from the NAICS. Enter the NAICS (North American Industry
original due date to the 15 thday of the month following the
Classification System) code for your business.
date of the payment.

Page 3 of 6, P-2022 Instructions (Rev. 01/17/2023)

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If you are a residential lessor limited to Federal Schedules Line 6. City of Portland apportionment percentage. Line
E and D, enter a business code of 531110. Commercial 4 divided by line 5. Round to 6 decimal places. This line
lessors should enter a business code of 531120. cannot be more than 1.0.
Name. Enter the legal name of the partnership. Exempt – Multnomah County. Check this box if you are
claiming an exemption from the Multnomah County
Mailing Address. Always enter your current mailing
Business Income Tax and select a reason for the
address. If the address for the year you are filing has
exemption. If your reason for being exempt is other than for
changed from last year, check the box indicating the
gross receipts, attach a statement explaining which
change.
exemption you are claiming and provide support for that
Initial Return Box. Check this box if this is your first return exemption (See Exemption Codes in the Appendix).
you are filing with us. Attach the Business Tax Registration
Exempt – City of Portland. Check this box if you are
Form, if not mailed to us previously.
claiming an exemption from the City of Portland Business
Final Return Box. Check this box if you no longer conduct License Tax and select a reason for the exemption. If your
business in the City of Portland and/or Multnomah County reason for being exempt is other than for gross receipts,
and this is the final return you are filing with us. Attach an attach a statement explaining which exemption you are
Out of Business Notification Form or an explanation for your claiming and provide support for that exemption (See
final return. If you have sold your business, indicate the Exemption Codes in the Appendix).
name and address of the entity you sold your business to.
NOTE: If you have claimed an exemption from the
Amended Return Box. Check this box if you are amending Multnomah County and the City of Portland business taxes,
your 2022 tax return. See the Amended Return instructions you generally don’t need to fill out the following parts of the
above for more information about amending your Combined return:
Business Tax Return.
• Part II – Net Income
Extension Filed Box. Check this box if you filed an
• Part III – Multnomah County Business Income Tax
extension to file your federal or state income taxes. Attach
(if claiming an exemption from Multnomah County
a copy of your federal or State of Oregon extension to your
Business Income Tax)
tax return. • Part IV – City of Portland Business License Tax (If
claiming an exemption from the City of Portland
Part I – Gross Income
Business License Tax)
Line 1. Multnomah County gross income. Multnomah
However, even if you are exempt from the City of Portland
County gross income includes income from all business
Business License Tax, you are still liable for any Heavy
activity within Multnomah County (see Apportionment
Vehicle Use Tax or Residential Rental Registration fees that
instructions above).
may be due. If you are subject to either tax/fee, please
Line 2. Total gross income from all sources in all complete lines 28 (Heavy Vehicle Use Tax) and/or 29
locations. Total gross income includes income from all (Residential Rental Registration Fee) and attach the
business activity everywhere, as reported on your federal
required schedule(s) with your Combined Business Tax
Form 1065.
Return. Be sure to include any payment due for these
Line 3. Multnomah County apportionment percentage. taxes/fees, or you will be subject to late payment penalties
Line 1 divided by line 2. Round to 6 decimal places. This and interest on the unpaid balance.
line cannot be more than 1.0.
If you have made estimated prepayments and would like
Line 4. City of Portland gross income. Portland gross
income includes income from all business activity within the them refunded to you or credited to the next tax year, fill out
City of Portland (see Apportionment instructions above). the prepayment section(s) of the return to tell us how you
would like your overpayment applied in Part V – Tax Due /
Line 5. Total gross income from all sources in all Refund.
locations. Total gross income includes income from all
business activity everywhere, as reported on your federal
Form 1065. Generally, this should be the same amount Part II – Net Income

reported on line 2, but there are rare situations where this Line 7. Ordinary Income or (Loss). Net income or loss is
amount may be different. the ordinary business income (loss) reported on form
1065. Enter the amount of ordinary business income (loss)
reported on Form 1065, line 22.
Page 4 of 6, P-2022 Instructions (Rev. 01/17/2023)

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Line 8. Taxes based on or measured by net income add- • $145,000 for the County (per LP), or
back. Add back any taxes based on or measured by net • 75% of the total income reported on line 13.
income, including the City of Portland Business License
No deduction is allowed if line 13 is a loss.
Tax, Multnomah County Business Income Tax, and Metro
Business Income Tax, that have been deducted to arrive at Line 15. Multnomah County subject net income. Sum of
the net income reported on line 7. line 13 and line 14.
Line 9. Owner’s compensation add-back. Enter the total Line 16. Multnomah County apportioned net income.
number of: Line 15 times multiplied by line 3.
• General Partners (GPs), Line 17. Net operating loss deduction. Enter your net
• Limited Partners (LPs) paid compensation and/or operating loss (NOL) from previous years as a negative
interest, and number here. NOLs are allowed only if reported on prior
Combined Business Tax Returns. This deduction cannot be
• The total amount of compensation paid to these
greater than 75% of line 16. Any unused NOL may only be
LPs.
carried forward for five years.
Enter all compensation (guaranteed payments, wages, and
Line 18. Income subject to tax. Sum of line 16 and line 17.
salary) paid to all partners (GPs and LPs).
Line 19. Multnomah County Business Income Tax. Line
Members of LLCs shall be deemed General or Limited
18 multiplied by the tax rate of 2%. The minimum amount of
Partners per Business Tax Policy (BTP): Limited Liability tax owed is $100.
Company and Limited Liability Partnership Owner’s
Compensation Deduction. Part IV - City of Portland Business License
Line 10. Schedule K (lines 2 – 3, 5 – 13) and Oregon Tax

Modifications on Form 65. Enter the total of the amounts Enter any
Line 20. City of Portland modifications.
from Schedule K lines 2-3 and 5-13. Add or subtract any modifications to City of Portland’s adjusted net income here.
Oregon modifications related to business income. Subtract This would generally apply only in rare circumstances.
any other pass-through income (or add any loss) from
entities already taxed by Portland and/or Multnomah Line 21. City of Portland net business income. Sum of
line 11 and line 20.
County. Attach a schedule for these modifications.
Line 22. Owner’s compensation deduction. A deduction
No deduction is allowed for owner health insurance
of up to 75% of the net business income (line 21) is allowed
premiums or IRC 734 or IRC 743 adjustments (related to an
for GPs but cannot exceed $147,000 for Portland per GP
IRC 754 election).
listed on line 9.
Line 11. Adjusted net income. Sum of lines 7 through 10.
GPs who are owners of capital in a Limited Partnership are
Part III - Multnomah County Business allowed this deduction, regardless of direct compensation
Income Tax paid.
Deductions for LPs are limited to the lesser of:
Line 12. Multnomah County modifications. Enter any
modifications to Multnomah County’s adjusted net income • LP compensation included on line 9 per partner,
here. This would generally apply only in rare circumstances. • $147,000 for the City (per LP), or
Line 13. Multnomah County net business income. Sum • 75% of the total income reported on line 21.
of line 11 and line 12. No deduction is allowed if line 21 is a loss.
Line 14. Owner’s compensation deduction. A deduction Line 23. City of Portland subject net income. Sum of line
of up to 75% of the net business income (line 13) is allowed 21 and line 22.
for GPs but cannot exceed $145,000 for the County per GP
Line 24. City of Portland apportioned net income. Line
listed on line 9.
23 multiplied by line 6.
GPs who are owners of capital in a Limited Partnership are
Line 25. Net operating loss deduction. Enter your NOL
allowed this deduction, regardless of direct compensation
from previous years as a negative number here. NOLs are
paid. allowed only if reported on prior Combined Business Tax
Deductions for LPs are limited to the lesser of: Returns. This deduction cannot be greater than 75% of line
24. Any unused NOL may only be carried forward for five
• LP compensation included on line 9 per partner,
tax years.
Page 5 of 6, P-2022 Instructions (Rev. 01/17/2023)

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Line 26. Income subject to tax. Sum of line 24 and line 25. Line 38a. Refund. Enter the amount of the overpayment
Line 27. City of Portland Business License Tax. Line 26 you would like refunded to you on this line. If you would like
multiplied by the tax rate of 2.6%. The minimum amount of direct deposit of your refund, please file your Combined
tax owed is $100. Business Tax Return online at Pro.Portland.gov. If your
return is filed on paper, you will receive your refund in the
Line 28. Heavy Vehicle Use Tax (HVT). If you are subject
mail by check.
to Portland’s Heavy Vehicle Use Tax, enter the amount from
line 4 of the HVT Schedule here. Line 38b. Credit carryforward. Enter the amount of the
overpayment you would like to apply as an estimated
Line 29. Residential Rental Registration Fee. If you are
payment for tax year 2023 on this line. This election is
subject to Portland’s Residential Registration Fee, enter the
amount due from the Schedule R here. irrevocable.
Line 30. Total of City of Portland taxes and fees. Sum of Line 39. Combined amount due with report. If the sum of
lines 27, 28, and 29. lines 31 through 36 is positive, this is the balance due.
Make your check payable to ‘City of Portland’ and submit
Part V- Tax Due / Refund with your Combined Business Tax Return. For fastest
Line 31. Total business taxes and fees. Sum of line 19 payment processing, pay online by logging into your PRO
and 30. account at Pro.Portland.gov.

Line 32. Late payment or late filing penalty. Enter the Appendix
amount of any late payment of taxes or late filing penalty
owed. Exemption Codes
Line 33. Underpayment penalty. Enter the amount of any
If you are claiming an exemption from the City of Portland
underpayment penalty owed. Business License Tax and/or Multnomah County Business
Line 34. Interest. Enter any quarterly underpayment Income Tax, please use one of the following Exemption
interest and/or interest due on taxes not paid by their due Codes listed below:
dates.
Code Explanation
Line 35. Quarterly estimated payments and other 1 No business activity in jurisdiction
prepayments. Enter the total amount of prepayments as a Gross business income from all sources less
negative number here. This includes all quarterly estimated 2 than $100,000 (Multnomah County Only)
payments, extension payments, and any credits carried Gross business income from all sources less
forward from prior years. 3 than $50,000 (City of Portland Only)
Only business is the operation of less than 10
Line 36. Business Retention Credit. Enter the total 4 residential rentals (Multnomah County Only)
amount of Business Retention Credit being claimed on the Real estate brokers (City of Portland Only)
5
tax return as a negative number here. Please attach Form
6 Insurance agent
BRC showing your calculations.
7 PL 86-272
Line 37. Overpayment. If the sum of lines 31 through 36 is 8 Non-profit under ORS 317.080
negative, this is the amount you have overpaid. If you have Trusts exempt from Federal income tax under
an overpayment, you may choose to have the balance: 9 IRC § 501
• Refunded to you, or 10 Farm/Ag only (HVT still possible)
99 Other (explanation required, please attach)
• Credited forward to the next tax year.
If no election is made, any overpayment will be refunded to
you.

Page 6 of 6, P-2022 Instructions (Rev. 01/17/2023)

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