From left, Portland City Councilors Elana Pirtle-Guiney of District 2, Council Vice President Tiffany Koyama Lane of District 3, Angelita Morillo of District 3 and Steve Novick of District 3 sit in a meeting to vote at Portland City Hall on Nov. 12, 2025 in Portland, Ore.
Eli Imadali / OPB
Portland City Council appears likely to pass an ordinance that would save some small businesses around $200 per year.
Portland companies with annual sales totaling less than $50,000 are exempt from the city’s business license tax. On Wednesday, city councilors unanimously advanced an ordinance that would raise the threshold for exemption to $75,000 in sales this year, and up to $100,000 in 2027.
“Businesses are navigating rising costs and uncertain revenue and workforce challenges,” Councilor Candace Avalos said during Wednesday’s meeting, “And in many of our immigrant communities, especially in East Portland, there’s a real fear — owners are telling us that foot traffic is down simply because people are afraid to be out.”
Portland’s economy has failed to rebound from the pandemic-induced downturn that devastated downtown. The region is shedding thousands of jobs while at the same time population growth is stunted. In addition, people living all over the Portland metro region are experiencing high housing costs. Combined, these things are translating into a slowing economy on the verge of crisis.
More recently, aggressive federal immigration enforcement has infused fear among many businesses and their workforces, especially Latino-owned companies.
Avalos signaled support for the ordinance while pointing out that it will provide muted relief for the complex challenges facing small companies.
“While helpful,” she said, “the benefit to most businesses is relatively modest, around $200 to $500 a year.”
Councilors and community members who spoke on the ordinance acknowledged that changing the exemption level is a small step.
“Raising the exemptions to $75,000 in 2026 and $100,000 in 2027 provides practical relief,” Nate McCoy, president of the National Association of Minority Contractors in Oregon, told councilors. “While the averages, the dollar amounts per business may appear meager or modest, for a small contractor, that means covering insurance increases, purchasing tools, or even meeting payroll during slow cycles.”
Some councilors highlighted the financial impact of the ordinance, which will cost the city’s general fund $1.2 million in the first year and double that the following year. Meanwhile, the city is facing a budget shortfall of nearly $170 million.
Still, all city councilors indicated they would support the change to the business tax on April 8 when the second reading and final vote are scheduled to take place.
