Willamette Week: Admin Costs of County Capital Gains Tax Could Swallow About Half the Revenue

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/