Starting in January of 2022, Multnomah County and Metro employers were required to withhold the taxes through payroll deductions for high earning employees. Taxpayers felt blindsided after receiving a letter claiming they failed to pay. They didn’t know their bill was overdue because nobody told them when or how to pay.
In December 2022, Oregon Department of Revenue released a list of taxpayers who had not paid their Metro Supportive Housing Services taxes by the April 2022 deadline. To date, Metro said roughly $3.2 million in penalties have been assessed to those who did not comply with the new tax. The median penalty is $135.
Metro serves more than 1.7 million people in Clackamas, Multnomah and Washington counties. It has collected $202 million in taxes for homeless services, while Multnomah County said it has taken in $241 million for preschool-for-all. Multnomah County has imposed $3.4 million in penalties for the 2021 tax year.
Metro’s spokesperson explained taxpayers can request the City of Portland waive penalties. So far, more than 2,800 penalties have been forgiven, said Christensen.
Portland Revenue Division sent notices to about two percent of the region’s taxpaying households that bring in an individual income above $125,000 or household income above $200,000. The agency’s boundary encompasses Portland, Oregon and 23 other cities. Metro is authorized by Congress and the State of Oregon to coordinate and plan investments in the transportation system for the three-county area.
The city is serious about putting it money where it’s mouth is on homelessness. The $250 million homeless services tax measure will help 5,000 people experiencing homelessness into permanent housing, and help 10,000 households with a range of ‘wraparound’ services. Funds also includes a 1% tax on businesses that generate $5 million per year.
