Tax

The City of Oregon levies a 2.25% municipal income tax on income earned by City of Oregon residents and any person(s) or businesses with income earned within the municipality. Residents who work outside the city, receive credit for taxes paid to other municipalities. All Oregon residents and businesses are required to file annual City of Oregon income tax returns, as well as any businesses with net profit or loss earned within the city.

The 2022 tax deadline to file City of Oregon returns is April 18, 2023. This includes payment of your 2022 tax liability. If you need assistance with the preparation of your return, visit the Taxpayer Assistance page.

Credit Card Payment

As a service to our citizens, payments can be made by credit card. Payments can be made by choosing the “Pay Now” option below.

Filing Guidelines

Extensions:

If the deadline to file cannot be met, an automatic extension will be granted if the taxpayer received an extension on his/her federal return. If an extension was not requested or received for federal purposes a taxpayer may still request an extension to file his/her city tax by sending a request to the Tax Commissioner by the original due date of the return. An extension of time to file is not an extension of time to pay. Payment of any estimated tax due should be sent in by the original due date of the return to avoid a late payment penalty. Although not required by state law, a courtesy copy of the extension by the due date of the return would be appreciated. A copy of the extension must be attached to the return when filed or the return will be considered late and a late filing penalty will be applied.

W-2 & W-3 filing:

The Oregon income tax office now allows employers to file their W-2’s on diskette. The city requires the same information and format that is required by the federal government. Please use OREG as the local entity code.

Returns:

We ask that you utilize your client’s pre-printed returns as it makes processing more accurate and efficient.  Forms are also located on our web page.  If you use a generic return, please make sure the filing year of the return, taxpayers’ names, social security numbers or alternate ID’s, phone number, address changes and dates moved in or out are on the return. Returns for part-year residents require pay stubs with year-to-date figures or a statement from your payroll department. Please remember Oregon city income tax returns are due April 15th or, if it falls on a weekend, the first business day after April 15th. Returns filed late will incur a $25.00 late filing fee, as well as monthly penalty (1 ½%) and interest (1/2%) charges. If credit is taken for tax paid to another city, you must include a copy of that city’s return.

NOTE: To assist in processing returns, please use minimal staples and one-sided copies.

Supporting Forms and Schedules:

Federal returns are required attachments to local returns. To avoid requests for missing information, individuals must include Federal 1040, Schedule 1, Schedules C, E (pages 1 and 2 if both apply), F, Farm Rental 4835, ordinary gains reflected on the 4797, as well as income reflected on Line 21 of the of the 1040 Schedule 1 (1099-MISC, Fiduciary fees, taxable portions of the HAS distributions, etc.) These documents assist in the verification of earned income and losses subject to local taxes. Supporting schedules may also be necessary in various cases. Please be sure to include the second page of Schedule C showing cost of labor included in cost of goods sold.

In addition to the applicable forms listed above, BUSINESSES need to include Form 1120/1120S/1065. If applicable to a specific business, Schedule K1, as well as Forms 4797 and 8825 need to be reported.

Estimates:

The due dates for estimated payments are:

April 15, July 31, October 31, January 31

If you have any questions, the tax office is open during regular business hours:
Monday through Friday from 8:00 a.m. until 4:30 p.m.

Annual Interest Rate

The 2023 interest rate is seven percent (7%) per year or .583 percent per month.

The 2022 interest rate is five percent (5%) per year or .417 percent per month.

The 2021 interest rate is five percent (5%) per year or .417 percent per month.

The 2020 interest rate is seven percent (7%) per year or .583 percent per month.

The 2019 interest rate is seven percent (7%) per year or .583 percent per month.

The 2018 interest rate is six percent (6%) per year or .5 percent per month.

The 2017 interest rate is six percent (6%) per year or .5 percent per month.

The 2016 interest rate is five percent (5%) per year or .417 percent per month.

The interest rate is the Federal short-term rate, rounded to the nearest whole number percent, plus five percent. The rate shall apply for the calendar year following July of the year in which the Federal short-term rate is determined.