What is the Multnomah County iTax?
Ballot measure 26-48 established a personal income tax for residents of Multnomah County. The tax became effective on January 1, 2003 and will last through the end of 2005.
Who has to pay it?
Anyone who lives in Multnomah County (that includes Portland) and has a taxable income. Even if you make money out of state, you’ll still pay the tax if you live in Multnomah County.
Where does the money go?
The majority of the funds will be divided equally, on a per-pupil basis among all the Multnomah County school districts. Schools will use the money to keep kids in classes for the full school year, keep class size down, and maintain some extracurricular activities such as high school sports.
$32 million will be divided equally between County public safety and health and human service programs, preventing the layoff of Sheriff's deputies, and retention of some senior and mental health services. The remaining $7 million is reserved for collection costs, audits and other administration.
How do I figure out what I owe?
The tax rate is 1.25 percent of Oregon taxable income after deducting an exemption ($2,500 for single filers or $5,000 for joint filers). Use this interactive calculator to determine what you owe.
What will happen in 2006, when the tax expires?
All school districts in Multnomah County face a 12 percent to 13 percent loss in revenue after the tax expires in 2005. In Portland's case, that's $50 million of a $400 million budget. Most of the districts have expressed support of a tax to replace the lost revenue.
In 2005, Portland laid off 66 teachers, 200 instructional aides and other support workers, and 13 central office employees.
Read about how schools are budgeting for the end of the tax.