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                                                    City of Portland Business License Tax 
                        Multnomah County Business Income Tax 
Form SP-2022 Combined Business Tax Return for Individuals (Sole Proprietors) Instructions 
                                                               
                                                               • Federal Schedule 1 
General Information                                            • Schedule C and statements (if filed) 
                                                                 If more than one Schedule C, include all of them 
Important Reminders                                            • Schedule E and statements (if filed) 
                                                                 If more than one Schedule E, include all of them 
File and Pay Online and Manage your Business Tax               • Schedule F and statements (if filed) 
Accounts at Pro.Portland.Gov. The Revenue Division’s 
                                                                 If more than one Schedule F, include all of them 
taxpayer portal can be used to manage your business tax        • Schedule D  and statements (if filed,  including 
accounts. Portland Revenue Online (PRO) allows you to:           Form 4797,  Form 6252, Form 8824, and Form 
•     Register your business                                     8949) 
•     Update your business account information                   If more than one Schedule D, include all of them 
                                                               •
•     File a Combined Business Tax Return                        Schedule B and statements (if filed, and related 
                                                                 to your business) 
•     Make payments 
                                                                 If more than one Schedule B, include all of them 
•     Upload supporting tax pages and documents                • Schedule OR-ASC  or OR-ASC-NP (if claiming 
•     View correspondence mailed to you                          Oregon modifications) 
•     Provide Third-Party Access to your preparer              • HVT Schedule, if required (Portland form) 
For more information and to create your account, please        • Schedule R, if required (Portland form) 
visit Pro.Portland.gov. 
                                                               What’s New? 
Filing Deadline. The filing deadline for this return is April 
18, 2023.  Since the  SP-2022  relies on information           Increase to Owner’s Compensation Deduction. For tax 
reported on the federal and/or Oregon tax return, the due      years beginning on or  after January 1, 2022, the 
date for the  SP-2022  will  be changed when there is a        maximum  Owner’s Compensation  Deduction  has 
change to the federal or State of Oregon due dates.            increased to $147,000, per owner, for the City of Portland 
Extensions. The Revenue Division does not generally            Business License Tax. 
allow an extension of time to pay the tax, even if the IRS     For tax years beginning on or after January 1, 2022, the 
allows  an  extension.  The  tax  balance  is  due  on  the    maximum  Owner’s Compensation  Deduction  has 
original return due date. The submission of an extension       increased to  $145,000,  per owner,  for the  Multnomah 
payment  by  the  original  return  due  date  provides  an 
                                                               County Business Income Tax. 
automatic six-month filing extension. If there is not a tax 
balance due but you would like to file an extension, your      Increase to Residential Rental Registration Fee. For 
federal or State of Oregon extension will serve as your        tax years beginning on or after January 1,  2022,  the 
Combined Business Tax  extension and  a separate               Residential Rental Registration fee has increased to $65 
extension will not need to be submitted. When filing your      per unit. 
return on the extended due date, check the “Extension 
Filed” box  on the return.  If no  extension  payment was      Amended Returns 
made, please attach a copy of your federal or  State of 
                                                               The Revenue Division does not have a separate form for 
Oregon extension with your return. 
                                                               amended tax returns. To amend your Combined Business 
If you have filed a federal or state extension and receive     Tax Return, use the form for the tax year being amended 
a non-filer letter from us,  please submit proof of your       and check the “Amended” box. If the address for the year 
timely filed federal or state extension to us.                 you’re amending has changed, use your current mailing 
Federal  and State  Tax Pages.  Be sure to include the         address and check the “Mailing Address Change” box. 
following federal tax pages (and statements), Oregon tax       Fill in all amounts on your amended return, even if they 
pages (and statements),  and Portland schedules  with          are the same as originally filed. If you are amending to 
your  SP-2022  Combined  Business Tax Return,  even if 
                                                               make  a  change  to  additions,  subtractions,  or  credits, 
claiming an exemption from the business taxes: 
                                                               include  detail  of all items  and amounts  as well  as any 
•     Federal Form 1040 (pages 1 and 2) 
Page 1 of 7, SP-2022 Instructions (Rev. 01/17/2023)

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carryovers. Please include a statement explaining what To qualify for the Multnomah County residential rental
changed from the original return. exemption, your business activity must only be renting
nine or fewer residential rental units. If you have any other
If you change taxable income by filing an original or
amended federal or Oregon income tax return, you must business activity, rent or lease anything other than
file an amended Combined Business Tax Return within residential rental units, or have 10 or more units
anywhere, you do not qualify for this exemption.
60 days of when the original or amended federal or
Oregon income tax return is filed. Include a copy of your This exemption is from the business taxes only. Any other
original or amended federal or Oregon income tax return tax, surcharge, or fee may fall under separate exemption
with your amended Combined Business Tax Return and criteria, for which your business may still be liable.
explain the adjustments made.
GROSS RECEIPTS EXEMPTION
Do not amend your Combined Business Tax Return if you
amend the federal return to carry a net operating loss Note: The following amounts are taken from the federal
income tax return.
back to prior years. The Revenue Division only allows tax
entities to carry net operating losses forward. Additionally, To claim a gross receipts exemption from the City of
net operating losses for the City of Portland Business Portland Business License Tax and/or the Multnomah
License Tax and/or Multnomah County Business Income County Business Income Tax, the total gross receipts
Tax are only generated from the Combined Business Tax from all business activity must be under:
Return, not from your IRS or Oregon income tax return. • $50,000 for the City of Portland Business License
On the prepayments line of your amended Combined Tax exemption, and
Business Tax Return, enter the net tax for each • $100,000 for the Multnomah County Business
jurisdiction as reflected on the original return or as Income Tax exemption.
previously adjusted. Do not include any penalty or interest To calculate the total gross receipts from all business
portions of payments already made. activity, add the following lines together:
•
Apportionment Schedule C. Enter the sum of the positive numbers
reported on lines 3 and 6 of the primary Schedule C.
For each jurisdiction, gross income includes all business • Additional Schedule C. Enter the sum of the positive
income including, but not limited to, gross receipts, numbers reported on lines 3 and 6 of all other
service income, interest, dividends, income from Schedule Cs included on Form 1040.
contractual agreements, gross rents, and gains on sale of • Schedule F. Enter the gross receipts from Schedule
business property. F if the taxfiler does not qualify for the farming
With a few exceptions, income earned in Portland is also exemption under Portland City Code 7.02.400 (H).
earned in Multnomah County. Income may be • Schedule D. Enter the sum of the positive numbers
apportioned only if there is regular business activity reported on lines 4 and 11 of the Schedule D and any
outside Portland and/or Multnomah County. Services other business capital gains.
performed outside Portland and/or Multnomah County • Schedule E. Enter the sum of the positive numbers
may be apportioned based upon the percentage of reported on lines 23a and 23b of the Schedule E. If
performance outside the applicable jurisdiction. Sales of there are any residential rental properties in the City
tangible personal property may be apportioned only if a
of Portland, make sure to complete and submit a
business has payroll or property outside the jurisdictions.
Schedule R (with payment) with your exemption
Exempt Businesses request.
• Form 6252 and Schedule B. Enter the sum of the
If your business is exempt from the City of Portland number reported on line 26 of Form 6252 and any
Business License Tax, as allowed under Portland City interest from installment sale income from business
Code (PCC) 7.02.400 or the Multnomah County Business property reported on Schedule B.
Income Tax, as allowed under Multnomah County Code
If your total gross receipts from all business activity are
(MCC) 12.400, you are still required to file a Combined $50,000 or more, you do not qualify for the gross receipts
Business Tax Return by the due date of your return. exemption for the City of Portland Business License Tax.
Failure to do so may result in a Presumptive Fee bill and
your account will remain in non-compliance status until If your total gross receipts from all business activity are
$100,000 or more, you do not qualify for the gross
the required documentation is received.

Page 2 of 7, SP-2022 Instructions (Rev. 01/17/2023)

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receipts exemption for the Multnomah County Business                   Business Tax Return which is delinquent for three 
Income Tax.                                                            or more consecutive years. 
OTHER EXEMPTIONS                                                No late filing penalty is due if a timely extension is filed 
                                                                with the Revenue Division and a Combined Business Tax 
If you  are claiming an exemption other than  the  gross 
                                                                Return is filed by the extended due date, or a copy of the 
receipts  exemption, you  must attach a statement  that         federal or state extension is included with the Combined 
explains which exemption you are claiming and provide           Business Tax Return  and the ‘Extension  Filed’  box is 
support for that exemption  (See  Exemption Codes in            checked. 
Appendix). 

Penalty Calculation                                             LATE PAYMENT PENALTY 
You may be subject to penalties  for  underpaying your          Your 2022 business tax must be paid by April 18, 2023, 
estimated tax, filing a  late  Combined  Business Tax           even if you requested an extension to file your Combined 
Return, and/or paying your business tax liability after the     Business Tax Return. If you do not pay your tax by the 
original due date of the return.                                original due date, the following late payment penalties will 
                                                                apply: 
Although the Revenue Division assesses a late penalty 
for both failing to file a Combined Business Tax Return by      •      5% of the amount of the tax that was not paid by 
the due date and failing to pay the tax by the original due            the original due date. 
date of the return, only one of these late penalties will be    •      An additional penalty of 20%  of the  unpaid  tax 
applied, even if there is a failure of both requirements. In           must be added if the failure to pay is for a period 
these cases, only the late filing penalty is applied.                  of four months or more. 
                                                                •      An additional penalty of 100% of the unpaid tax 
                                                                       liability of all tax years if the failure to pay is for 
UNDERPAYMENT PENALTY 
                                                                       three or more consecutive years. 
You may  subject to  a  penalty  for underpaying  your 
estimated tax  if,  by the original  due date  of the return,   Interest Calculation 
timely prepayments are not made which are either: 
• At least 90% of the total tax due  on  line 21                LATE PAYMENT INTEREST 
  (Multnomah  County) and line  32 (City of 
                                                                Interest is calculated at 10% per annum (.00833 multiplied 
  Portland), or 
                                                                by the number of months). Calculate your interest from 
• 100% of the prior year’s tax for each jurisdiction.                                    th
                                                                the original due date to the 15  day of the month following 
If  you  did  not  satisfy  either  requirement,  you  will  be the date of the payment. 
charged  a  5%  underpayment  penalty  on the  unpaid 
amount, but not less than $5 per jurisdiction. 
                                                                QUARTERLY UNDERPAYMENT INTEREST 
LATE FILING PENALTY                                             Quarterly underpayment interest will be due if estimated 
                                                                payments were required and were underpaid. Calculate 
If you do not file your Combined Business Tax Return by         your quarterly underpayment interest at a rate of 10% per 
the original due date, file an extension with the Revenue       annum from the due date of each quarterly estimated 
Division by the original due date, or include a copy of your    payment to the original due date of the tax return to which 
federal or state extension with your Combined Business          the estimated payments apply. 
Tax Return when you file by the extended due date, the 
following late filing penalties will apply:                     The amount of underpayment is determined by comparing 
                                                                the 90% of the current total tax liability amount to quarterly 
• 5% of the  amount of the total tax  liability  if the         estimated payments made prior to the original due date of 
  failure to file is for a period less than four months.        the tax return. 
• An  additional  penalty  of  20%  of  the  total  tax 
                                                                There  is no interest on underpayment of quarterly 
  liability must be added if the Combined Business 
                                                                estimated payments if:  
  Tax Return is four months or more past due. 
• An additional penalty of 100% of the  total  tax              •      The total tax liability of the prior tax year was less 
  liability  of all tax years for any  Combined                        than $1,000 for the jurisdiction; 

Page 3 of 7, SP-2022 Instructions (Rev. 01/17/2023)

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• An amount equal to at least 90% of the total tax Final Return Box. Check this box if you no longer
liability for the current tax year was paid in conduct business in the City of Portland and/or
accordance with PCC 7.02.530 and/or MCC Multnomah County and this is the final return you are filing
12.530; or with us. Attach an Out of Business Notification Form or an
• An amount equal to at least 100% of the prior explanation for your final return. If you have sold your
year’s total tax liability was paid in accordance business, indicate the name and address of the entity you
with PCC 7.02.530 and/or MCC 12.530. sold your business to.
Amended Return Box. Check this box if you are
Combined Business Tax Return Filing
amending your 2022 tax return. See the Amended Return
Instructions instructions above for more information about amending
Rounding. Round cents to whole dollars on your return your Combined Business Tax Return.
and schedules. To round, drop amounts under 50 cents Extension Filed Box. Check this box if you filed an
and increase amounts from 50 to 99 cents to the next extension to file your federal or state income taxes. Attach
dollar. For example, $1.39 becomes $1 and $2.50 a copy of your federal or State of Oregon extension to
becomes $3. If two or more amounts must be added to your tax return.
figure the amount to enter on a line, include cents when
adding the amounts and round off only the total. Part I – Gross Income

Line 1. Multnomah County gross income. Multnomah
General Return Information County gross income includes income from all business
activity within Multnomah County (see Apportionment
Tax Year. Enter the beginning and ending dates for your
instructions above).
tax year. For calendar year filers, this would be
01/01/2022 to 12/31/2022. Line 2. Total gross income from all Schedules B, C, D,
E, and F in all locations. Total gross income includes
Account #. Enter your BZT account number (ten digits).
income from all business activity everywhere, as reported
This information can be found on letters the Revenue on your federal Form 1040.
Division has mailed to you related to your business tax
account. If you cannot find your account number, call the Line 3. Multnomah County apportionment
Revenue Division at (503) 823-5157. percentage. Line 1 divided by line 2. Round to 6 decimal
places. This line cannot be more than 1.0.
Social Security #. Enter the Social Security Number
Line 4. City of Portland gross income. Portland gross
(SSN) or Individual Tax Identification Number (ITIN) of the
income includes income from all business activity within
primary person on the account.
the City of Portland (see Apportionment instructions
NAICS. Enter the NAICS (North American Industry above).
Classification System) code for your business. You will
Line 5. Total gross income from all Schedules B, C, D,
generally find this code in Section B of your Federal Total gross income includes
E, and F in all locations
Schedule C. income from all business activity everywhere, as reported
If you are a residential lessor limited to Federal Schedules on your federal Form 1040. Generally, this should be the
E and D, enter a business code of 531110. Commercial same amount reported on line 2, but there are certain
lessors should enter a business code of 531120. situations where this amount may be different. For
example, real estate brokers that are exempt from the City
Name. Enter the legal name of the sole proprietor. Do of Portland Business License Tax would not include that
not enter the assumed business name (DBA) listed in income for apportionment purposes.
section C of your Federal Schedule C.
Line 6. City of Portland apportionment percentage.
Mailing Address. Always enter your current mailing Line 4 divided by line 5. Round to 6 decimal places. This
address. If the address for the year you are filing has line cannot be more than 1.0.
changed from last year, check the box indicating the
Exempt – Multnomah County. Check this box if you are
change.
claiming an exemption from the Multnomah County
Initial Return Box. Check this box if this is your first Business Income Tax and select a reason for the
return you are filing with us. Attach the Business Tax exemption. If your reason for being exempt is other than
Registration Form, if not mailed to us previously. for gross receipts, attach a statement explaining which

Page 4 of 7, SP-2022 Instructions (Rev. 01/17/2023)

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exemption you are claiming and provide support for that retirement plan payments, and heath care premium
exemption (See Exemption Codes in Appendix). deductions (sum of Form 1040, Schedule 1, lines 15, 16,
and 17). Enter any Oregon modifications (Oregon
Exempt – City of Portland. Check this box if you are
additions or subtractions reported on Oregon Schedule
claiming an exemption from the City of Portland Business
OR-ASC or OR-ASC-NP) that are directly related to your
License Tax and select a reason for the exemption. If your
business activity.
reason for being exempt is other than for gross receipts,
attach a statement explaining which exemption you are Do not include any amounts that relate to self-
claiming and provide support for that exemption (See employment income from a pass-through interest in a
Exemption Codes in Appendix). partnership or S corporation. These deductions are not
allowed as they are not associated with the sole
NOTE: If you have claimed an exemption from the proprietorship business activities.
Multnomah County and the City of Portland business
Line 10. Net income or (loss) from federal Schedule B
taxes, you generally don’t need to fill out the following
and Schedule D. Enter the gains and losses from sales
parts of the return:
of business assets (reported on Schedule D, Form 4797,
and Form 6252), interest earned on installment contracts
• Part II – Net Income
(reported on Schedule B), and other business income
• Part III – Multnomah County Business Income
(from non-compete contracts, director fees, etc.). Attach
Tax (if claiming an exemption from Multnomah
all Schedules (with statements) filed with the IRS, as well
County Business Income Tax)
as Form 4797, Form 6252, Form 8824, and Form 8949 if
• Part IV – City of Portland Business License Tax
filed.
(If claiming an exemption from the City of
Portland Business License Tax) Line 11. Net income or (loss) from federal Schedule E.
Enter the total net income or loss from Schedule E, line
However, even if you are exempt from the City of Portland 26 as reported on your federal Form 1040. Attach all
Business License Tax, you are still liable for any Heavy Schedule E’s (and statements, if applicable) filed with the
Vehicle Use Tax or Residential Rental Registration fees IRS.
that may be due. If you are subject to either tax/fee,
please complete lines 30 (Heavy Vehicle Use Tax) and/or Do not include items that pass-through on federal Form
K-1s from partnerships or S corporations.
31 (Residential Rental Registration Fee) and attach the
required schedule(s) with your Combined Business Tax Line 12. Taxes based on or measured by net income
Return. Be sure to include any payment due for these add-back. Add back any taxes based on or measured by
taxes/fees, or you will be subject to late payment penalties net income, including the City of Portland Business
and interest on the unpaid balance. License Tax and Multnomah County Business Income
Tax, that have been deducted to arrive at the net income
If you have made estimated prepayments and would like reported on lines 7, 8, 10, and 11.
them refunded to you or credited to the next tax year, fill Line 13. Adjusted net income. Sum of lines 7 through
out the prepayment section(s) of the return to tell us how 12.
you would like your overpayment applied in Part V – Tax
Due / Refund. Part III - Multnomah County Business
Income Tax
Part II – Net Income
Line 14. Multnomah County modifications. Enter any
Line 7. Net income or (loss) from federal Schedule C. modifications to Multnomah County’s adjusted net income
Enter the net income or loss from all Schedule C here. This would generally apply only in rare
businesses reported on your Schedule 1 line 3 of your circumstances.
federal Form 1040. Attach all Schedule Cs (and
statements, if applicable) filed with the IRS. Line 15. Multnomah County net business income.
Sum of line 13 and line 14.
Line 8. Net income or (loss) from federal Schedule F.
Enter the net income or loss from all Schedule F Line 16. Owner’s compensation deduction. A
businesses reported on your Schedule 1 line 6 of your deduction of up to 75% of the net business income
federal Form 1040. Attach all Schedule Fs (and reported on line 15 is allowed, but it cannot exceed
statements, if applicable) filed with the IRS. $145,000 per owner for Multnomah County.
Line 9. Deductible SE tax and Oregon modifications. You are allowed only one owner’s compensation
Subtract deductible self-employment tax, qualified allowance deduction on a jointly filed return, unless:

Page 5 of 7, SP-2022 Instructions (Rev. 01/17/2023)

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• Both spouses have their own business, allowed only if reported on prior Combined Business Tax
• Both spouses materially participate in a joint Returns. This deduction cannot be greater than 75% of
business, or line 26. Any unused NOL may only be carried forward for
• Any rental property is jointly owned by both five tax years.
spouses. Line 28. Income subject to tax. Sum of line 26 and 27.
No deduction is allowed if line 15 is a loss. Line 29. City of Portland Business License Tax. Line
Line 17. Multnomah County subject net income. Sum 28 multiplied by the tax rate of 2.6%. The minimum
of line 15 and line 16. amount of tax owed is $100.
Line 18. Multnomah County apportioned net income. Line 30. Heavy Vehicle Use Tax (HVT). If you are
Line 17 times multiplied by line 3. subject to Portland’s Heavy Vehicle Use Tax, enter the
amount from line 4 of the HVT Schedule here.
Line 19. Net operating loss deduction. Enter your net
operating loss (NOL) from previous years as a negative Line 31. Residential Rental Registration Fee. If you are
number here. NOLs are allowed only if reported on prior subject to Portland’s Residential Registration Fee, enter
Combined Business Tax Returns. This deduction cannot the amount due from the Schedule R here.
be greater than 75% of line 18. Any unused NOL may only Line 32. Total of City of Portland taxes and fees. Sum
be carried forward for five tax years. of line 29, 30, and 31.
Line 20. Income subject to tax. Sum of line 18 and line
19. Part V - Tax Due / Refund

Line 21. Multnomah County Business Income Tax. Line 33. Total business taxes and fees. Sum of line 21
Line 20 multiplied by the tax rate of 2%. The minimum and 32.
amount of tax owed is $100. Line 34. Late payment or late filing penalty. Enter the
amount of any late payment of taxes or late filing penalty
Part IV - City of Portland Business
owed.
License Tax
Line 35. Underpayment penalty. Enter the amount of
Line 22. City of Portland modifications. Enter any any underpayment penalty owed.
modifications to City of Portland’s adjusted net income
Line 36. Interest. Enter any quarterly underpayment
here. The most common adjustment is a deduction for
interest and/or interest due on taxes not paid by their due
real estate broker income reported on line 7.
dates.
Line 23. City of Portland net business income. Sum of
Line 37. Quarterly estimated payments and other
line 13 and line 22.
prepayments. Enter the total amount of prepayments as
Line 24. Owner’s compensation deduction. A a negative number here. This includes all quarterly
deduction of up to 75% of the net business income estimated payments, extension payments, and any
reported on line 23 is allowed, but it cannot exceed credits carried forward from prior years.
$147,000 per owner for the City of Portland.
Line 38. Overpayment. If the sum of lines 33 through 37
You are allowed only one owner’s compensation is negative, this is the amount you have overpaid. If you
allowance deduction on a jointly filed return, unless: have an overpayment, you may choose to have the
• Both spouses have their own business, balance:
• Both spouses materially participate in a joint • Refunded to you, or
business, or • Credited forward to the next tax year.
• Any rental property is jointly owned by both
If no election is made, any overpayment will be refunded
spouses.
to you.
No deduction is allowed if line 23 is a loss.
Line 39a. Refund. Enter the amount of the overpayment
Line 25. City of Portland subject net income. Sum of you would like refunded to you on this line. If you would
line 23 and line 24. like direct deposit of your refund, please file your
Line 26. City of Portland apportioned net income. Line Combined Business Tax Return online at
25 times multiplied by line 6. Pro.Portland.gov. If your return is filed on paper, you will
Line 27. Net operating loss deduction. Enter your NOL receive your refund in the mail by check.
from previous years as a negative number here. NOLs are
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Line 39b. Credit carryforward. Enter the amount of the 
overpayment you would like to apply as an estimated 
payment for tax year 2023 on this line. This election is 
irrevocable. 
Line 40 Combined amount due with report. If the sum 
of lines 33 through 37 is positive, a balance is due. Make 
your check payable to ‘City of Portland’ and submit with 
your  Combined  Business  Tax  Return.  For  fastest 
payment processing, pay online by logging into your PRO 
account at Pro.Portland.gov. 

Appendix 

Exemption Codes 

If you are claiming an exemption from the City of Portland 
Business License Tax  and/or Multnomah County 
Business Income Tax,  please use  one of the  following 
Exemption Codes listed below: 
 Code  Explanation 
 1  No business activity in jurisdiction  
    Gross business income from all sources less 
 2  than $100,000  (Multnomah County Only) 
    Gross business income from all sources less 
 3  than $50,000 (City of Portland Only) 
    Only business is the operation of less than 10 
 4  residential rentals (Multnomah County Only) 
 5  Real estate brokers (City of Portland Only)      
 6  Insurance agent  
 7  PL 86-272 
 8  Non-profit under ORS 317.080 
    Trusts exempt from Federal income tax under 
 9  IRC § 501 
 10 Farm/Ag only (HVT still possible) 
 99 Other (explanation required, please attach) 
 
Page 7 of 7, SP-2022 Instructions (Rev. 01/17/2023)

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