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                                                    City of Portland Business License Tax 
                        Multnomah County Business Income Tax 
      Form SC-2022 Combined Business Tax Return for S Corporations Instructions 
                                                               
                                                               • Federal Form 8825 and statements (if filed) 
General Information                                            • Federal Form 4797 and statements (if filed) 
                                                               • Oregon Form OR-20S if any Oregon modifications 
Important Reminders                                              are claimed 
                                                               • HVT Schedule, if required (Portland form) 
Note: C corporations should file C-2022.                       • Schedule R, if required (Portland form) 
File and  Pay Online and Manage your Business  Tax 
Accounts at Pro.Portland.Gov.  The Revenue Division’s          What’s New? 

taxpayer portal can be used to manage your business tax        Increase to Owner’s Compensation Deduction. For tax 
accounts. Portland Revenue Online (PRO) allows you to:         years beginning on or after January 1, 2022, the maximum 
•     Register your business                                   Owner’s Compensation  Deduction  has  increased to 
•     Update your business account information                 $147,000, per owner,  for the  City of  Portland Business 
•     File a Combined Business Tax Return                      License Tax. 
•     Make payments                                            For tax years beginning  on or after January 1, 2022, the 
•     Upload supporting tax pages and documents                maximum  Owner’s Compensation  Deduction  has been 
•     View correspondence mailed to you                        increased to $145,000,  per owner,  for the  Multnomah 
•     Provide Third-Party Access to your preparer              County Business Income Tax. 
For more  information and  to create your  account, please                                                      For tax 
                                                               Increase to Residential Rental Registration Fee.
visit Pro.Portland.gov. 
                                                               years beginning on or after January 1, 2022, the Residential 
Filing Deadline. The filing deadline for this return is April  Rental Registration fee has increased to $65 per unit. 
18, 2023. Since the SC-2022 relies on information reported 
on the federal and/or Oregon tax return, the due date for the  Amended Returns 
SC-2022  will  be changed  when there is  a change to the 
                                                               The Revenue Division does not have a separate form for 
federal or State of Oregon due dates. 
                                                               amended tax returns. To amend your Combined Business 
Extensions. The  Revenue  Division  does  not  generally       Tax Return, use the form for the tax year being amended 
allow an extension of time to pay the tax, even if the IRS     and check the “Amended” box. If the address for the year 
allows an extension. The tax balance is due on the original    you’re amending has changed,  use your  current  mailing 
return due date. The submission of an extension payment        address, and check the “Mailing Address Change” box. 
by the original return due date provides an automatic six-
month filing extension. If there is not a tax balance due but  Fill in all amounts on your amended return, even if they are 
you would like to file an extension, your federal or State of  the same as originally filed. If you are amending to make a 
Oregon  extension will serve as your  Combined Business        change to additions, subtractions, or credits, include detail 
Tax extension and a separate extension will not need to be     of all items and amounts as well as any carryovers. Please 
submitted.  When filing your return on the extended due        include  a  statement  explaining  what  changed  from  the 
date, check the “Extension Filed” box on the return. If no     original return. 
extension payment was made, please attach a copy of your 
                                                               If you change taxable  income by  filing an original or 
federal or State of Oregon extension with your return. 
                                                               amended federal or Oregon income tax return, you must file 
Federal  and State  Tax Pages.  Be sure  to  include the       an amended Combined Business Tax Return within 60 days 
following federal tax pages (and statements), Oregon tax       of when the original or amended federal or Oregon income 
pages (and statements), and Portland schedules with your       tax return is filed. Include a copy of your original or amended 
SC-2022 Combined Business Tax Return, even if claiming         federal or Oregon  income tax  return with your amended 
an exemption from the business taxes:                          Combined  Business  Tax  Return  and  explain  the 
•     Federal Form 1120-S  (pages 1  through 4)  and           adjustments made. 
      statements                                               Do not amend your Combined Business Tax Return if you 
•     Federal Form 1125-E and statements (if filed)            amend the federal return to carry a net operating loss back 

Page 1 of 6, SC-2022 Instructions (Rev. 01/17/2023)

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to prior years. The Revenue Division only allows tax entities • $50,000 for the City of Portland Business License
to carry net operating losses forward. Additionally, net Tax exemption, and
operating losses for the City of Portland Business License • $100,000 for the Multnomah County Business
Tax and/or Multnomah County Business Income Tax are Income Tax exemption.
only generated from the Combined Business Tax Return, To calculate the total gross receipts from all business
not from your IRS or Oregon income tax return. activity, add the following lines together:
On the prepayments line of your amended Combined • Form 1120-S. Add the sum of the positive numbers
Business Tax Return, enter the net tax for each jurisdiction reported on lines 1c, 4, and 5 from page 1 of Form
as reflected on the original return or as previously adjusted. 1120-S. Add the sum of the positive numbers
Do not include any penalty or interest portions of payments reported on lines 3c through 10 of the Schedule K.
already made. • Form 8825. Add the positive numbers reported on
line 18a. If the S corporation owns any residential
Apportionment rental properties in the City of Portland, make sure
For each jurisdiction, gross income includes all business to complete and submit a Schedule R (with
income including, but not limited to, gross receipts, service payment) with your exemption request.
income, interest, dividends, income from contractual If your total gross receipts from all business activity are
agreements, gross rents, and gains on sale of business $50,000 or more, you do not qualify for the gross receipts
property. exemption for the City of Portland Business License Tax.
With a few exceptions, income earned in Portland is also If your total gross receipts from all business activity are
earned in Multnomah County. Income may be apportioned $100,000 or more, you do not qualify for the gross receipts
only if there is regular business activity outside Portland exemption for the Multnomah County Business Income Tax.
and/or Multnomah County. Services performed outside
Portland and/or Multnomah County may be apportioned OTHER EXEMPTIONS
based upon the percentage of performance outside the If you are claiming an exemption other than the gross
applicable jurisdiction. Sales of tangible personal property receipts exemption, you must attach a statement that
may be apportioned only if a business has payroll or explains which exemption you are claiming and provide
property outside the jurisdictions. support for that exemption (See Exemption Codes in the
Appendix).
Exempt Businesses
If your business is exempt from the City of Portland Penalty Calculation

Business License Tax, as allowed under Portland City Code You may be subject to penalties for underpaying your
(PCC) 7.02.400 or the Multnomah County Business Income estimated tax, filing a late Combined Business Tax Return,
Tax, as allowed under Multnomah County Code (MCC) and/or paying your business tax liability after the original
12.400, you are still required to file a Combined Business due date of the return.
Tax Return by the due date of your return. Failure to do so
may result in a Presumptive Fee bill and your account will Although the Revenue Division assesses a late penalty for
remain in non-compliance status until the required both failing to file a Combined Business Tax Return by the
documentation is received. due date and failing to pay the tax by the original due date
of the return, only one of these late penalties will be applied,
This exemption is from the business taxes only. Any other even if there is a failure of both requirements. In these
tax, surcharge, or fee may fall under separate exemption cases, only the late filing penalty is applied.
criteria, for which your business may still be liable.

GROSS RECEIPTS EXEMPTION UNDERPAYMENT PENALTY
Note: The following amounts are taken from the federal You may subject to a penalty for underpaying your
income tax return. estimated tax if, by the original due date of the return, timely
To claim a gross receipts exemption from the City of prepayments are not made which are either:
Portland Business License Tax and/or the Multnomah • At least 90% of the total tax due on line 19
County Business Income Tax, the total gross receipts from (Multnomah County) and line 30 (City of Portland),
all business activity must be under: or
• 100% of the prior year’s tax for each jurisdiction.

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If you did not satisfy either requirement, you will be charged QUARTERLY UNDERPAYMENT INTEREST
a 5% underpayment penalty on the unpaid amount, but not
less than $5 per jurisdiction. Quarterly underpayment interest will be due if estimated
payments were required and were underpaid. Calculate
your quarterly underpayment interest at a rate of 10% per
LATE FILING PENALTY annum from the due date of each quarterly estimated
If you do not file your Combined Business Tax Return by the payment to the original due date of the tax return to which
original due date, file an extension with the Revenue the estimated payments apply.
Division by the original due date, or include a copy of your
The amount of underpayment is determined by comparing
federal or state extension with your Combined Business Tax the 90% of the current total tax liability amount to quarterly
Return when you file by the extended due date, the estimated payments made prior to the original due date of
following late filing penalties will apply: the tax return.
• 5% of the amount of the total tax liability if the failure There is no interest on underpayment of quarterly estimated
to file is for a period less than four months. payments if:
• An additional penalty of 20% of the total tax liability
•
must be added if the Combined Business Tax The total tax liability of the prior tax year was less
Return is four months or more past due. than $1,000 for the jurisdiction;
•
• An additional penalty of 100% of the total tax liability An amount equal to at least 90% of the total tax
of all tax years for any Combined Business Tax liability for the current tax year was paid in
Return which is delinquent for three or more accordance with PCC 7.02.530 and/or MCC
consecutive years. 12.530; or
• An amount equal to at least 100% of the prior year’s
No late filing penalty is due if a timely extension is filed with total tax liability was paid in accordance with PCC
the Revenue Division and a Combined Business Tax Return
7.02.530 and/or MCC 12.530.
is filed by the extended due date, or a copy of the federal or
state extension is included with the Combined Business Tax Combined Business Tax Return Filing
Return and the ‘Extension Filed’ box is checked.
Instructions

LATE PAYMENT PENALTY Rounding. Round cents to whole dollars on your return and
schedules. To round, drop amounts under 50 cents and
Your 2022 business tax must be paid by April 18, 2023,
increase amounts from 50 to 99 cents to the next dollar. For
even if you requested an extension to file your Combined
example, $1.39 becomes $1 and $2.50 becomes $3. If two
Business Tax Return. If you do not pay your tax by the
or more amounts must be added to figure the amount to
original due date, the following late payment penalties will
enter on a line, include cents when adding the amounts and
apply:
round off only the total.
• 5% of the amount of the tax that was not paid by the
original due date. General Return Information
• An additional penalty of 20% of the unpaid tax must
be added if the failure to pay is for a period of four Tax Year. Enter the beginning and ending dates for your tax
months or more. year. For calendar year filers, this would be 01/01/2022 to
• An additional penalty of 100% of the unpaid tax 12/31/2022.
liability of all tax years if the failure to pay is for three Account #. Enter your BZT account number (ten digits).
or more consecutive years. This information can be found on letters the Revenue
Division has mailed to you related to your business tax
Interest Calculation account. If you cannot find your account number, call the
Revenue Division at (503) 823-5157.
LATE PAYMENT INTEREST FEIN. Enter the Federal Employer Identification Number
Interest is calculated at 10% per annum (.00833 multiplied (FEIN) of the S corporation.
by the number of months). Calculate your interest from the NAICS. Enter the NAICS (North American Industry
original due date to the 15 thday of the month following the
Classification System) code for your business.
date of the payment.
Name. Enter the legal name of the S corporation.

Page 3 of 6, SC-2022 Instructions (Rev. 01/17/2023)

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NAICS. Enter the NAICS (North American Industry Line 6. City of Portland apportionment percentage. Line
Classification System) code for your business. 4 divided by line 5. Round to 6 decimal places. This line
cannot be more than 1.0.
If you are a residential lessor limited to Federal Schedules
E and D, enter a business code of 531110. Commercial Exempt – Multnomah County. Check this box if you are
lessors should enter a business code of 531120. claiming an exemption from the Multnomah County
Business Income Tax and select a reason for the
Mailing Address. Always enter your current mailing
exemption. If your reason for being exempt is other than for
address. If the address for the year you are filing has
gross receipts, attach a statement explaining which
changed from last year, check the box indicating the
exemption you are claiming and provide support for that
change.
exemption (See Exemption Codes in the Appendix).
Initial Return Box. Check this box if this is your first return
Exempt – City of Portland. Check this box if you are
you are filing with us. Attach the Business Tax Registration
claiming an exemption from the City of Portland Business
Form, if not mailed to us previously.
License Tax and select a reason for the exemption. If your
Final Return Box. Check this box if you no longer conduct reason for being exempt is other than for gross receipts,
business in the City of Portland and/or Multnomah County attach a statement explaining which exemption you are
and this is the final return you are filing with us. Attach an claiming and provide support for that exemption (See
Out of Business Notification Form or an explanation for your Exemption Codes in the Appendix).
final return. If you have sold your business, indicate the
NOTE: If you have claimed an exemption from the
name and address of the entity you sold your business to.
Multnomah County and the City of Portland business
Amended Return Box. Check this box if you are amending taxes, you generally don’t need to fill out the following
your 2022 tax return. See the Amended Return instructions parts of the return:
above for more information about amending your Combined
Business Tax Return. • Part II – Net Income
• Part III – Multnomah County Business Income Tax
Extension Filed Box. Check this box if you filed an
(if claiming an exemption from Multnomah County
extension to file your federal or state income taxes. Attach
Business Income Tax)
a copy of your federal or State of Oregon extension to your • Part IV – City of Portland Business License Tax (If
tax return. claiming an exemption from the City of Portland
Business License Tax)
Part I – Gross Income
However, even if you are exempt from the City of Portland
Line 1. Multnomah County gross income. Multnomah
Business License Tax, you are still liable for any Heavy
County gross income includes income from all business
Vehicle Use Tax or Residential Rental Registration fees
activity within Multnomah County (see Apportionment
that may be due. If you are subject to either tax/fee, please
instructions above).
complete lines 28 (Heavy Vehicle Use Tax) and/or 29
Line 2. Total gross income from all sources in all (Residential Rental Registration Fee) and attach the
locations. Total gross income includes income from all required schedule(s) with your Combined Business Tax
business activity everywhere, as reported on your federal
Return. Be sure to include any payment due for these
Form 1120-S.
taxes/fees, or you will be subject to late payment penalties
Line 3. Multnomah County apportionment percentage. and interest on the unpaid balance.
Line 1 divided by line 2. Round to 6 decimal places. This
line cannot be more than 1.0. If you have made estimated prepayments and would like
them refunded to you or credited to the next tax year, fill
Line 4. City of Portland gross income. Portland gross
income includes income from all business activity within the out the prepayment section(s) of the return to tell us how
City of Portland (see Apportionment instructions above). you would like your overpayment applied in Part V – Tax
Due / Refund.
Line 5. Total gross income from all sources in all
locations. Total gross income includes income from all
Part II – Net Income
business activity everywhere, as reported on your federal
Form 1120-S. Generally, this should be the same as the Line 7. Ordinary Net Income or (Loss). Ordinary net
gross income reported on line 2, but there are rare situations income or loss the ordinary business income (loss)
where this amount may be different.

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reported on form 1120-S. Enter the amount from federal Line 16. Multnomah County apportioned net income.
Form 1120-S, line 21. Line 15 times multiplied by line 3.
Line 8. Taxes based on or measured by net income add- Line 17. Net operating loss deduction. Enter your net
back. Add back any taxes based on or measured by net operating loss (NOL) from previous years as a negative
income, including the City of Portland Business License number here. NOLs are allowed only if reported on prior
Tax, Multnomah County Business Income Tax, and Metro Combined Business Tax Returns. This deduction cannot be
Business Income Tax, that have been deducted to arrive at greater than 75% of line 16. Any unused NOL may only be
the net income reported on line 7. carried forward for five years.
Line 9. Owner’s compensation add-back. Enter the Line 18. Income subject to tax. Sum of line 16 and line 17.
number of controlling shareholders. Enter any Line 19. Multnomah County Business Income Tax. Line
compensation paid to controlling shareholders (individuals 18 multiplied by the tax rate of 2%. The minimum amount of
or families who together hold more than 5% of the stock). tax owed is $100.
This includes wages, commissions, and salaries (current
and deferred). Part IV - City of Portland Business License
Tax
See Business Tax Administrative Rule (BTAR) 600-93.9A
Definition of Controlling Shareholders and Calculation of Line 20. City of Portland modifications. Enter any
Number of Controlling Shareholders for additional modifications to City of Portland’s adjusted net income here.
guidance. This would generally apply only in rare circumstances.
Line 10. Schedule K (lines 2– 12) and Oregon Line 21. City of Portland net business income. Sum of
Modifications on Form 20-S. Enter the total of the line 11 and line 20.
amounts from Schedule K lines 2 through 12. Add or Line 22. Owner’s compensation deduction. A deduction
subtract any Oregon modifications related to business from net business income (line 21) is limited to the lesser of:
income. Subtract any other pass-through income (or add
•
any loss) from entities already taxed by the City of Portland The compensation reported on line 9,
•
and/or Multnomah County. Attach a schedule for these 75% of the amount on line 21, or
modifications. • The number of controlling shareholders multiplied
by $147,000 for the City.
No deduction is allowed for owner health insurance
premiums. No deduction is allowed if line 21 is a loss.
Line 11. Adjusted net income. Sum of lines 7 through 10. Line 23. City of Portland subject net income. Sum of line
21 and line 22.
Part III - Multnomah County Business Line
Line 24. City of Portland apportioned net income.
Income Tax 23 multiplied by line 6.
Line 12. Multnomah County modifications. Enter any Line 25. Net operating loss deduction. Enter your NOL
modifications to Multnomah County’s adjusted net income from previous years as a negative number here. NOLs are
here. This would generally apply only in rare circumstances. allowed only if reported on prior Combined Business Tax
Returns. This deduction cannot be greater than 75% of line
Line 13. Multnomah County net business income. Sum
24. Any unused NOL may only be carried forward for five
of line 11 and line 12.
tax years.
Line 14. Owner’s compensation deduction. A deduction
Line 26. Income subject to tax. Sum of line 24 and line 25.
from net business income (line 13) is limited to the lesser of:
Line 27. City of Portland Business License Tax. Line 26
• The compensation reported on line 9,
multiplied by the tax rate of 2.6%. The minimum amount of
• 75% of the amount on line 13, or tax owed is $100.
• The number of controlling shareholders multiplied
by $145,000 for the County. Line 28. Heavy Vehicle Use Tax (HVT). If you are subject
to Portland’s Heavy Vehicle Use Tax, enter the amount from
No deduction is allowed if line 13 is a loss. line 4 of the HVT Schedule here.
Line 15. Multnomah County subject net income. Sum of Line 29. Residential Rental Registration Fee. If you are
line 13 and line 14. subject to Portland’s Residential Registration Fee, enter the
amount due from the Schedule R here.

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Line 30. Total of City of Portland taxes and fees. Sum of Line 38b. Credit carryforward. Enter the amount of the
lines 27, 28, and 29. overpayment you would like to apply as an estimated
payment for tax year 2023 on this line. This election is
Part V - Tax Due / Refund irrevocable.
Line 31. Total business taxes and fees. Sum of line 19 Line 39. Combined amount due with report. If the sum of
and 30. lines 31 through 36 is positive, this is the balance due.
Line 32. Late payment or late filing penalty. Enter the Make your check payable to ‘City of Portland’ and submit
amount of any late payment of taxes or late filing penalty with your Combined Business Tax Return. For fastest
owed. payment processing, pay online by logging into your PRO
Line 33. Underpayment penalty. Enter the amount of any account at Pro.Portland.gov.
underpayment penalty owed.
Appendix
Line 34. Interest. Enter any quarterly underpayment
interest and/or interest due on taxes not paid by their due Exemption Codes
dates.
If you are claiming an exemption from the City of Portland
Line 35. Quarterly estimated payments and other
Business License Tax and/or Multnomah County Business
prepayments. Enter the total amount of prepayments as a
Income Tax, please use one of the following Exemption
negative number here. This includes all quarterly estimated
Codes listed below:
payments, extension payments, and any credits carried
forward from prior years. Code Explanation
Line 36. Business Retention Credit. Enter the total 1 No business activity in jurisdiction
amount of Business Retention Credit being claimed on the Gross business income from all sources less
2 than $100,000 (Multnomah County Only)
tax return as a negative number here. Please attach Form
Gross business income from all sources less
BRC showing your calculations. than $50,000 (City of Portland Only)
3
Line 37. Overpayment. If the sum of lines 31 through 36 is Only business is the operation of less than 10
negative, this is the amount you have overpaid. If you have 4 residential rentals (Multnomah County Only)
an overpayment, you may choose to have the balance: 5 Real estate brokers (City of Portland Only)
6 Insurance agent
• Refunded to you, or
7 PL 86-272
• Credited forward to the next tax year.
8 Non-profit under ORS 317.080
If no election is made, any overpayment will be refunded to Trusts exempt from Federal income tax under
you. 9 IRC § 501
10 Farm/Ag only (HVT still possible)
Line 38a. Refund. Enter the amount of the overpayment
99 Other (explanation required, please attach)
you would like refunded to you on this line. If you would like
direct deposit of your refund, please file your Combined
Business Tax Return online at Pro.Portland.gov. If your
return is filed on paper, you will receive your refund in the

mail by check.

Page 6 of 6, SC-2022 Instructions (Rev. 01/17/2023)

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