Task force warns Portland must reform taxes to restore public trust

PORTLAND Ore. (KPTV) – A state task force convened by Gov. Tina Kotek and The Standard CEO Dan McMillan is recommending wide-ranging reforms to Portland’s tax system and public services, warning the city’s current path is eroding economic competitiveness and public trust.

The Portland Central City Task Force’s Tax Advisory Group (TAG), chaired by Charles Wilhoite of Willamette Management Associates, released its report Tuesday outlining options to change course and restore prosperity in Portland.

“We must ensure local taxes deliver the outcomes Portlanders expect,” Kotek said. “With more families struggling and economic uncertainty ahead, we can’t take our prosperity for granted.”

Key takeaways in the report:

  • Police response times for 911 calls have tripled since 2019.
  • Portland’s police and fire pension system is consuming an increasing share of property taxes, crowding out other services.
  • The gap between taxes collected and services delivered has eroded public trust.
  • Businesses and higher-income households are showing signs of leaving Portland.
  • Portland Clean Energy Fund now collects $220 million every year and has more than $670 million in reserves.
  • Preschool for All revenues have far exceeded expectations.
  • Despite massive spending on Supportive Housing Services, homelessness remains visible and persistent.

The 90-page report also found, since 2018, Portland and Multnomah County have created multiple new taxes for households and businesses and the local income tax rate for the richest households is now 13.9%, second to only New York City…

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