CITY OF

PORTLAND, OREGON
OFFICE OF THE CITY ATTORNEY

James H. Van Dyke, City Attorney 1221 S.W. 4th Avenue, Suite 430 Portland, Oregon 97204 Telephone: (503) 823-4047 Fax No.: (503) 823-3089

May 7, 2013

VIA FIRST CLASS MAIL AND EMAIL

Re: Portland Arts Tax - PCC 5.73.010 through 5.73.110

Dear

Your letter of April 22, 2013 to Thomas Lannom was referred to me for response. I apologize for my delay in getting back to you. You are correct that the City cannot tax social security income. The City has amended its administrative rules to reflect that fact and has provided a refund procedure. If you go to WW\v.portlandoregon.gov and click on the blue Arts Tax Notice link in the middle ofthe page you will be directed to the Bureau of Revenue website about the tax. To be clear, City Code requires persons with $1,000 or more of taxable income to pay the tax, so if a person has social security income plus an additional $1,000 in taxable income he or she is required to pay. I disagree with your contention that the Arts Tax is a "head tax" as that term is used in the Oregon Constitution. As you note, one circuit court judge has already agreed with us on that issue. We have not claimed or implied the decision has precedential value. Nonetheless, it remains important as the only decision to date on the issue. Sincerely yours,

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City Attorney JVD/ks
12-00713-237272