The estimate comes from the city of Portland’s Revenue Division, which would collect the tax.
April 5, 2023 | by Nigel Jaquiss
The city of Portland’s Revenue Division estimates a capital gains tax on the May ballot could have sky-high administrative costs, WW has learned.
“The tax is expected to raise $12 million to $15 million per tax year,” division director Thomas Lannom wrote in a March 23 memo to county officials, citing a campaign revenue estimate (the city would collect the tax on Multnomah County’s behalf). “The implementation year is estimated to cost approximately $19 million, including startup costs, with ongoing annual costs of approximately $7 million.”
Based on the midpoint of the revenue the Eviction Representation for All campaign hopes to raise—$13.5 million—the costs of administering the tax could consume more than 50% of the revenue.
That’s a lot compared to the Metro supportive housing services measure, which capped administrative costs at 5%, or even the Portland Arts Tax, which over the past decade has cost about 11.5% to administer…
READ THE FULL STORY ON WILLAMETTE WEEK’S WEBSITE: https://www.wweek.com/news/2023/04/05/admin-costs-of-county-capital-gains-tax-could-swallow-about-half-the-revenue/