On Wednesday, May 6, Portland City Council will consider changes to Portland's arts tax as part of its regular agenda. These reforms are co-sponsored by Council President Jamie Dunphy and Councilors Elana Pirtle-Guiney and Tiffany Koyama-Lane.

The current arts tax, which funds arts education and local arts organizations, has several long-standing issues: it is a regressive tax, with an onerous exemption process for low-income filers; it is imminently insolvent due primarily to inflation; and it is inadequately governed, with funds not always allocated where they would be most impactful. Proposed arts tax reforms make meaningful improvements to each of these problems.

"This tax hasn't been working the way it should, and in many ways, it was flawed from the beginning. It hasn't been accountable or transparent. Plus, it's always been really annoying to pay," Council President Dunphy says. "We can't make it completely not annoying, but we can fix the fundamental flaws to improve accountability and transparency, and make it less annoying."

The current tax is a flat $35 on all individuals living in Portland, with anyone making over $1,000 in gross taxable income required to file. Filers under the Federal Poverty Level must proactively file to take advantage of an exemption.

The proposed reforms would change the filing requirement from the current system where every individual must file separately to the standard Single/Joint/Other filings, and increase the filing threshold to $20,000 in Oregon Taxable Income (OTI) for Single filers and $40,000 in OTI for Joint filers.

"By raising the income threshold, we're exempting over a hundred thousand Portlanders from this tax, including some of our lowest-paid neighbors, youth with part-time jobs, and family members living on fixed incomes," Councilor Pirtle-Guiney says. "When we're talking about affordability in our city, it's steps like these that will make a noticeable difference for many Portlanders."

Additionally, the current tax is still $35 — the same as it was in 2012. That $35 has not been adjusted for inflation and has significantly decreased in value. In the 2025-2026 Fiscal Year, losses triggered 44% cuts to arts organizations. Without changes, cuts to arts educators in public schools may be triggered as early as the 2030-2031 Fiscal Year.

Proposed reforms would increase the rate from $35 to $50 for those above the income threshold, matching inflation since 2012 and restoring the original value. The rate and filing threshold would be indexed to inflation beginning in the 2027-2028 Fiscal Year, stabilizing fund revenue.

The proposed arts tax reforms create built-in accountability systems, including stronger reporting and clearer standards, so the City of Portland can ensure arts tax funds are supporting the students, classrooms, and underserved communities that rely on them.

"As a mom and educator, I see every day how art helps kids think, express, and belong," Councilor Koyama-Lane says. "Our tax policy should support that — not make it harder."

Community members are welcome and encouraged to testify on this item at the May 6 meeting. The meeting begins at 2:00 p.m. and arts tax reforms are the second item on the regular agenda.

"We've got to get this right. That means we need to hear directly from the people this tax benefits the most," Council President Dunphy says. "We've got plenty of generally grumpy comments from folks who hate this tax. I hope that teachers, students, artists, and parents are able to show up this Wednesday, share your experiences, remind us why voters approved this tax in the first place, and help us shape a system that's fair and functional."

Source: Portland City Council

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