February Newsletter: Business License Tax Exception, Moda Center Funding, City Club of Portland, & more

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Hey Portland,

I like to call this time of year "budget pre-season," and folks, things are moving fast. Let's get into it.

Small Business License Tax Exemption

10,000 small businesses across Portland will benefit from the proposal Mayor Wilson and I introduced to raise the City's Business License Tax (BLT) exemption.

So what does that mean?

Right now, small businesses are exempt from paying the City's Business License Tax if they earn under $50,000 in gross receipts. That threshold has not been updated since 2007. Nearly two decades later, inflation and economic conditions have changed dramatically. Our tax policy should reflect today's reality, not 2007's.

My proposal raises the exemption to $75,000 in 2026 and to $100,000 in 2027. Updating the threshold acknowledges the costs small businesses face and gives them room to reinvest in their operations, strengthen profit margins, and hire more employees.

According to the latest State of Small Business report from the Portland Metro Chamber, 41 percent of small businesses are owned by women and 16 percent are owned by people of color. While the Chamber defines small businesses by employee count rather than revenue, there is clear overlap. This change supports a diverse group of Portland entrepreneurs and gives these unique businesses more space to grow.

That means Portlanders employing Portlanders, and more dollars reinvested into local storefronts.

Many of these business owners stayed through Portland's toughest years. They took risks. They kept their doors open. Now it is time for the City to recognize that commitment and do our part.

This will also align the City's exemption with the County's structure, which already uses a $100,000 exemption threshold. Aligning the two streamlines tax filings and minimizes confusion for Portlanders starting or managing small businesses.

If we are serious about Portland's continued economic recovery, backing small businesses is common sense.

Funding Moda Center Renovations

Funding renovations to the Moda Center has broad support from City Counciland the Mayor, and the Oregon Senate passed SB 1501-3, approving a state funding package for the project.

Now the City needs to commit to its initial investment to retrofit the arena. After all, Portland owns the Moda Center-we purchased it for $1 in 2024. The Moda Center could be a world-class arena that hosts concerts, events, and games nearly 300 days a year. That is an economic engine, exactly what Portland needs right now.

A full teardown isn't the answer. We need to renovate, modernizing the facility with climate-friendly infrastructure while investing in local workforce development through high-quality construction jobs.

Portland Clean Energy Fund (PCEF) dollars are available for projects exactly like this. Stay tuned.

City Club of Portland: Meet Your District 4 Councilors

Thank you to City Club of Portland for hosting this month's packed District 4 "Meet Your Councilors" event.

Moderated by Sophie Peel, and with thoughtful questions from the audience, we covered everything from neighborhood livability to the Moda Center to the fact that two out of your three District 4 councilors are bald. Yep.

Jokes aside, these events matter. They give us the opportunity to connect on the issues that matter most.

When Sophie asked, "What is your proudest accomplishment from this last year?" I could point to policy wins, but the accomplishment I'm most proud of wasn't mine alone.

When reports surfaced that the federal government was threatening to deploy federal agents and National Guard troops into Portland, our city stood united.

The months that followed were challenging. The outcome was uncertain. But we exercised our First Amendment rights with tact, and we challenged federal overreach in the courts-and won.

All of that happened because Portlanders and Oregonians stood together.

And that makes me proud.

Official Duties Legal Defense Ordinance

Portland is a sanctuary city.

Late last year, Council unanimously passed the Protect Portland Initiative, further reaffirming our Sanctuary City ordinance. That means City employees will not engage in federal immigration enforcement, and we are working to ensure they are trained and supported in navigating these situations.

But we missed something important: legal protection for employeeswho are strictly following city law when it conflicts with federal directives.

We have already seen the federal government use investigations and the threat of prosecution as intimidation tacticsagainst state and local leaders. And during the State of the Union, President Trump said"I'm also asking you to end deadly sanctuary cities that protect the criminals and enact serious penalties for public officials who block the removal of criminal aliens… They're blocking the removal of these people out of our country."

Portland isn't blocking the federal government, and this has never been about dangerous criminals. City employees are not immigration enforcement officers and we do not make assumptions or take action based on perceived immigration status.

That is why I introduced the Official Duties Legal Defense Ordinance. It ensures that if a Portland city employee or official faces federal charges simply for carrying out their lawful duties under city policy, the City will step in to provide or fund their legal defense when those charges are determined to be intimidation or retaliation.

The federal government has nearly unlimited legal resources. An individual public servant does not. This ordinance ensures public officials and city employees can continue serving Portland to the best of their ability, knowing the City stands with them if the federal government uses legal threats or intimidation tactics against them.

I sincerely hope we are never placed in that position. But responsible governance means preparing for it.

PDX Staycation & the Winter Lights Festival

February marked the first PDX Staycation Winter Edition, which included the annual Portland Winter Lights Festival.

I love the idea of "staycation." It gives me a reason to get dressed up, try a new restaurant, shop locally, and show up for our city during one of its more challenging seasons.

For eleven years, Winter Lights has transformed empty storefronts, retail windows, hotel lobbies, and public spaces into light-based art installations. It reminds me how creative Portlanders are and how art can be used to activate downtown during the colder months.

Multnomah Arts Center

LiUNA Local 483 members were nice enough to give me a tour of Multnomah Arts Center, and I am so impressed. The amount of different kinds of art happening under one roof is remarkable: theater, pottery, metalworking, dance, music, textiles, printmaking, photography, and more.

I spent time with a loom weaving class known as the "Fiber Friends." What stood out wasn't just the craft. It was the community.

If you know me, you know I'm not exactly an "art guy." I can appreciate it, but it's not something I naturally gravitate toward. Community, though? That I understand. And community is exactly what's being built at MAC.

MAC is also home to the Front and Center Art Galleries. When I visited, the gallery was showing work by Lotoya Lovely and her pieces immediately stood out. Front and Center Art Galleries is now featuring work by Joy Kloman and Michael F. McDonald. I highly recommend you take some time to check out the new exhibit.

What Is Eric Eating?

Council Vice President Clark and I visited Mother's Bistro, just down the street from City Hall.

Executive chef and owner Lisa Schroeder is a fierce advocate for downtown and our local economy and she'd have my head if I didn't mention her matzoh ball soup. I've been ordering it since my very first visit many years ago. Thanks for having us, Lisa!

Until next month,

Councilor Eric Zimmerman

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