Portland Mayor Keith Wilson and City Councilor Eric Zimmerman are proposing to raise the city’s business-license gross-receipts exemption to help small businesses keep more of their earnings. The plan would increase the exemption from $50,000 to $75,000 in 2026 and to $100,000 in 2027, and it will be reviewed by the Finance Committee for discussion and public feedback.
What They're Proposing
According to Portland.gov, Zimmerman and Wilson want a two-step increase that they say would let small businesses put money back into operations, employees and long-term growth instead of into tax bills. Zimmerman framed it as a reward for owners who stuck it out, saying, “If we are serious about Portland's continued economic recovery, we need policies that back the small business owners who stayed and took risks,” while Wilson called the change “This is a positive step in the right direction.” The city notes its current exemption level has not been updated since 2007.
Why It Matters to Small Businesses
The exemption threshold now sits at $50,000 in gross receipts. That relatively low bar pulls in very small firms, but the proposed bump is expected to help roughly 10,000 small businesses across Portland, KPTV reports. Supporters argue that raising the cutoff to better reflect current costs would trim red tape for the smallest operators and free up a bit of capital for micro-entrepreneurs and sole proprietors trying to get through a still-fragile recovery.
How It Fits With County Rules
The city says the move would also bring Portland’s exemption in line with Multnomah County’s existing $100,000 gross-receipts exemption for the county business income tax, a change officials argue would make life simpler for small filers who now juggle different thresholds. The City Revenue Division lays out how city, county and Metro taxes interact and how those exemptions are claimed under the current system.
What's Next
Portland.gov states that the Finance Committee will take up the proposal next Monday, and members of the public can sign up on the city’s website to testify. If the committee advances the measure, it would move to the full council for a final vote and could take effect for the 2026 tax year if approved, KPTV reports.
