Clean Energy Tax Is Imposed for Certain Portland Retailers

A new gross receipts tax on certain Portland, Oregon, retailers will begin January 1, 2019.

The Portland Clean Energy Community Benefits Initiative 2018, more commonly referred to as Measure 26-201, imposes a 1% tax on Portland revenues of retailers earning over $500,000 per year from Portland sales and over $1 billion per year from US retail locations.

The tax is intended to fund clean energy projects and clean energy job training for certain Portland community members. Revenue projections from this new tax range from $30 million to over $70 million per year. 

Retailer Definitions

Proposed changes to the Portland City Code to implement Measure 26-201 define a retail sale as a sale to a consumer for use or consumption and not for resale. Services, including retail banking services, are included within the retail sale definition.

Excluded from the definition of retailer:

  • Manufacturers not engaged in retail within Portland
  • Entities operating utilities within Portland
  • Cooperatives organized under state or federal law
  • Federal and state credit unions

The proposed code also defines certain exclusions from taxable receipts, including groceries, medicine or drugs, and health care services. The tax won’t be allowed as a deduction when computing apportionable income for purposes of the Portland business license tax.

We're Here to Help

To learn how your business can prepare for the gross receipts tax, contact your Moss Adams professional, email statetax@mossadams.com, or visit our services page.