Councilor Eric Zimmerman, Mayor Keith Wilson Sponsor Raising Small Business License Tax Exemption

(PORTLAND, ORE.) - Portland City Councilor Eric Zimmerman and Mayor Keith Wilson sponsor an increase to the City's Business License Tax (BLT) gross receipts exemption, raising the exemption to $75,000 for tax year 2026 and to $100,000 for tax year 2027. The increased exemption will allow businesses to retain critical capital that can be reinvested into operations, employees, and long-term growth. This change is expected to benefit 10,000 small businesses.

The current exemption threshold has not been updated since 2007 and remains set at $50,000. Adjusting it now would account for nearly two decades of inflation and changing economic conditions, helping small business owners grow and create new job opportunitiesor increase profit.

Councilor Zimmerman believes strengthening small businesses is an essential component of Portland's continued economic recovery.

"If we are serious about Portland's continued economic recovery, we need policies that back the small business owners who stayed and took risks," Zimmerman said.

"After spending a couple years focused on livability concerns, we must also give attention to job creation. Policy makers must acknowledge the tax structure issues facing Portland's economy. This is a positive step in the right direction."

The proposed increase better aligns the City's exemption with Multnomah County's Business Income Tax, which already includes a $100,000 gross receipts exemption. Aligning the thresholds would reduce administrative complexity, streamline tax filings, and minimize confusion for Portlanders starting or managing small businesses.

"Portland's small businesses need a tax structure that matches today's economic realities. Raising the business license tax exemption gives these vital enterprises the stability they need to thrive-and to fuel Portland's renaissance in every neighborhood" said Mayor Wilson.

The Small Business License Exception will be heard by the Finance Committee on February 23. Small business owners who would be tax impacted by this proposal and are interested in providing public testimony can register here.

###