Portland Mayor and Councilor Propose Small Amount of Business Tax Relief

Portland, OR. — Portland Mayor Keith Wilson is proposing a modest adjustment to the city’s Business License Tax (BLT), offering relatively small financial relief to thousands of local businesses.

The proposal, brought forward with Councilor Eric Zimmerman, would increase the current $50,000 gross receipts exemption, unchanged since 2007, in two phases. The threshold would rise to $75,000 beginning in tax year 2026, and then to $100,000 in 2027, aligning Portland with Multnomah County.

City estimates show the first phase would provide about $1.2 million in total relief to roughly 5,800 businesses, averaging $207 per business. The second phase would extend another $1.2 million in relief to about 4,200 additional businesses, averaging $286 each.

While supporters say the change helps small businesses keep more revenue, the actual per-business savings remain relatively limited. About 65 percent of those benefiting are sole proprietors.

“This change provides meaningful relief,” Wilson said, emphasizing support for small business owners. Zimmerman added the proposal would give businesses more room to reinvest and grow.

The measure was developed with the City’s Revenue Division and has already advanced through the Council’s Finance Committee. If approved, it would take effect for the 2026 tax year.

From a budget standpoint, the City projects a revenue reduction of approximately $1.3 million annually starting in fiscal year 2027–28, growing to about $2.5 million per year once fully implemented.

A public hearing is expected before final council consideration, giving residents and business owners an opportunity to weigh in on the proposal.