City Auditor - City Recorder - City Code - Title 7 - Business Licenses (December 2002 version)

Chapter 7.02

BUSINESS LICENSE LAW

(New Chapter substituted by

Ordinance No. 166676, effective

Dec. 31, 1993.)

Sections:

7.02.005 Short Title.

7.02.010 Fees for Revenue.

7.02.020 Conformity to State Income Tax Laws.

7.02.100 Definitions.

7.02.110 Income Defined.

7.02.200 Administration.

7.02.210 Administrative Authority.

7.02.220 Presumption of Doing Business.

7.02.230 Confidentiality.

7.02.240 Persons to Whom Information May be Furnished.

7.02.250 Licensee Representation.

7.02.255 Representation Restrictions.

7.02.260 Examination of Books, Records or Persons.

7.02.270 Records.

7.02.280 Deficiencies and Refunds.

7.02.290 Protests and Appeals.

7.02.295 Business License Appeals Board.

7.02.300 License Required.

7.02.310 Duplicate License.

7.02.320 License Transfer.

7.02.330 License Merger or Division.

7.02.350 License Term.

7.02.360 Temporary Licenses and Fees.

7.02.400 Exemptions.

7.02.500 Fee Rate.

7.02.510 License Application and Fee Due Dates.

7.02.520 Quarterly Estimates.

7.02.530 Schedule for Payment of Estimated Tax.

7.02.540 Fee - New Applications.

7.02.545 Fee - Renewal Applications.

7.02.550 Presumptive Fee.

7.02.600 Income Determinations.

7.02.610 Apportionment of Income.

7.02.620 Changes to Federal and/or State Tax Returns.

7.02.630 Income - Long Term Construction Method.

7.02.700 Penalties.

7.02.710 Interest.

7.02.715 Payments Applied.

7.02.720 Interest on Refunds.

7.02.730 Criminal Penalties for Violation of the Business License Law by City Official, Employee or Agent.

7.02.005 Short Title.

Chapter 7.02 of the Portland City Code shall be known as the Business License Law.

7.02.010 Fees for Revenue.

The term “license” as used in the Business License Law shall not be construed to mean a permit. The fees prescribed herein are for revenue purposes, and are not regulatory permit fees.

7.02.020 Conformity to State Income Tax Laws.

(Amended by Ordinance No. 171910, effective January 30, 1998.) The Business License Law shall be construed in conformity with the laws and regulations of the State of Oregon imposing taxes on or measured by net income. Any reference in this Chapter to the laws of the State of Oregon means the laws of the State of Oregon imposing taxes on or measured by net income as they are amended on or before December 31, 1997. The Bureau shall have the authority by administrative rule(s) adopted in accordance with Section 7.02.210, to connect to and/or disconnect from any legislative enactment that deals with income or excise taxation or the definition of net income. Should a question arise under the Business License Law on which this Chapter is silent, the Bureau may look to the laws of the State of Oregon for guidance in resolving the question, provided that the determination under State law is not in conflict with any provision of this Chapter or the State law is otherwise inapplicable.

7.02.100 Definitions.

(Amended by Ordinance No. 171910, effective January 30, 1998.) For the purpose of this Chapter, the terms used in this Chapter shall be defined as provided in this Chapter or in Administrative Rules adopted under Section 7.02.210, unless the context requires otherwise:

A. “Business” means an enterprise, activity, profession or undertaking of any nature, whether related or unrelated, by a person in the pursuit of profit, gain, or the production of income, including services performed by an individual for remuneration, but does not include wages earned as an employee.

B. “Doing Business” means to engage in any activity in pursuit of profit or gain, including but not limited to, any transaction involving the holding, sale, rental or lease of property, the manufacture or sale of goods or the sale or rendering of services other than as an employee. Doing business includes activities carried on by a person through officers, agents or employees as well as activities carried on by a person on his or her own behalf.

C. “Employee” means any individual who performs services for another individual or organization having the right to control the employee as to the services to be performed and as to the manner of performance.

D. “Person” includes, but is not limited to, a natural person, sole proprietorship, partnership, limited partnership, family limited partnerships, joint venture, association, cooperative, trust, estate, corporation, personal holding company , limited liability company, limited liability partnership or any other form of organization for doing business.

E. “Licensee” means a person licensed to do business within the City under the Business License Law.

F. “Individual” means a natural person.

G. “Controlling Shareholder” means any person, either alone or together with that person’s spouse, parents, and children, who, directly or indirectly, owns more than 5 percent of any class of outstanding stock or securities of the licensee. The term “controlling shareholder” may mean the controlling shareholder individually or in the aggregate.

H. “Ownership of Outstanding Stock or Securities” means the incidents of ownership which include the power to vote on the corporation’s business affairs or for the directors, officers, operators or other managers of the licensee.

I. “Nonbusiness Income” means income not created in the course of the licensee’s business activities.

J. “Net Operating Loss” means the negative taxable income that may result after the deductions allowed by the Business License Law in determining net income for the tax year.

K. “Notice” means a written document mailed first class by the Bureau to the last known address of a licensee as provided to the Bureau in the latest application on file with the Bureau.

L. “Received” means the postmark date affixed by the United States Postal Service if mailed or the date stamp if delivered by hand or sent by facsimile.

M. “Tax Year” means the taxable year of a person for Federal and/or State income tax purposes.

N. “License Year” means the term of a license issued under the Business License Law.

O. “Bureau” means the Bureau of Licenses of the City of Portland, Oregon, along with its employees and agents.

P. “Director” means the Director of the Bureau of Licenses.

7.02.110 Income Defined.

(Amended by Ordinance Nos. 167154 and 171910, effective January 30, 1998.) “Income” means the net income arising from any business, as reportable to the State of Oregon for personal income, corporation excise or income tax purposes, before any allocation or apportionment for operation out of state, or deduction for a net operating loss carry-forward or carry-back.

A. Partnerships, S corporations, limited liability companies, limited liability partnerships, family limited partnerships, estates and trusts, shall be liable for the business license and not the individual partners, shareholders, members or beneficiaries. The income of these entities shall include all incomes received by the entity, including ordinary income, interest and dividend incomes, income from sales of business assets and other incomes attributable to the entity.

B. If one or more persons are required or elect to report their income to the State of Oregon for corporation excise or income tax purposes or personal income tax purposes in a consolidated, combined or joint return, a single license shall be issued to the person filing such return. In such cases, “income” means the net income of the consolidated, combined or joint group of tax filers before any allocation or apportionment for operation out of the state, or deduction for a net operating loss carry-forward or carry-back.

C. The absence of reporting income to the Internal Revenue Service or the State of Oregon shall not limit the ability of the Bureau to determine the correct income of the licensee through examination under Section 7.02.260.

7.02.200 Administration.

(Amended by Ordinance No. 171910, effective January 30, 1998.)

A. The Business License Law shall be administered by the Bureau of Licenses. Authority granted to the Director may be delegated, in writing, to another employee within the Bureau.

B. The Bureau may, upon request, interpret how the Business License Law applies, in general or for a certain set of circumstances.

C. Nothing in this Chapter shall preclude the informal disposition of controversy by stipulation or agreed settlement, through correspondence or a conference with the Director.

7.02.210 Administrative Authority.

(Amended by Ordinance Nos. 167154 and 171910, effective January 30, 1998.)

A. The Director may implement procedures, forms, and written policies for administering the provisions of the Business License Law.

B. The Director may adopt rules relating to matters within the scope of this Chapter to administer compliance with Business License Law.

C. Before adopting a new rule, the Director shall hold a public hearing. Prior to the hearing, the Director shall publish a notice in a newspaper of general circulation in the City. The notice shall be published not less than ten nor more than thirty days before the hearing. Such notice shall include the place, time and purpose of the public hearing, a brief description of the subjects covered by the proposed rule, and the location where copies of the full text of the proposed rule may be obtained.

D. At the public hearing, the Director or designee, shall hear oral and written testimony concerning the proposed rule. The Director shall either adopt the proposed rule, modify, or reject it, taking into consideration the testimony received during the public hearing. If a substantial modification is made, additional public review shall be conducted, but no additional public notice shall be required if an announcement is made at the hearing of a future hearing for a date, time and place certain at which the modification will be discussed. Unless otherwise stated, all rules shall be effective upon adoption by the Director. All rules adopted by the Director shall be filed in the Bureau’s office. Copies of all current rules shall be made available to the public upon request.

E. Notwithstanding subsections C and D of this Section, the Director may adopt an interim rule without prior public notice upon a finding that failure to act promptly will result in serious prejudice to the public interest or the interest of the affected parties, stating the specific reasons for such prejudice. Any interim rule adopted pursuant to this paragraph shall be effective for a period of not longer than 180 days.

7.02.220 Presumption of Doing Business.

(Amended by Ordinance No. 171910, effective January 30, 1998). A person is presumed to be doing business in the City and subject to this Chapter if engaged in any of the following activities:

A. Advertising or otherwise professing to be doing business within the City; or

B. Delivering goods or providing services to customers within the City; or

C. Owning, leasing, or renting personal or real property within the City which is used in a trade or business; or

D. Engaging in any transaction involving the production of income from holding property or the gain from the sale of property, which is not otherwise exempted in this Chapter. Property may be personal, including intangible or real in nature; or

E. Engaging in any activity in pursuit of gain which is not otherwise exempted in this Chapter.

7.02.230 Confidentiality.

(Amended by Ordinance No. 167154, effective Dec. 1, 1993.) Except as otherwise required by law, it shall be unlawful for the Bureau, or any elected official, employee or agent of the City, or for any person who has acquired information pursuant to Section 7.02.240 A and C to divulge, release or make known in any manner any financial information submitted or disclosed to the City under the terms of the Business License Law. Nothing in this Section shall be construed to prohibit:

A. The disclosure of the names and addresses of any persons to whom business licenses have been issued; or

B. The disclosure of general statistics in a form which would prevent the identification of financial information regarding an individual licensee.

7.02.240 Persons to Whom Information May be Furnished.

A. The Bureau may disclose and give access to information described in Section 7.02.230 to an authorized representative of the Department of Revenue, State of Oregon, or any local government of the State of Oregon imposing taxes upon or measured by gross receipts or net income, for the following purposes:

1. To inspect the license application of any licensee;

2. To obtain an abstract or copy of the license application;

3. To obtain information concerning any item contained in any application; or

4. To obtain information of any financial audit of the license applications of any licensee.

Such disclosure and access shall be granted only if the laws, regulations or practices of such other jurisdiction maintain the confidentiality of such information at least to the extent provided by the Business License Law.

B. Upon request of a licensee, or authorized representative, the Bureau shall provide copies of the licensee’s applications filed with the Bureau for any license year.

C. The Bureau may also disclose and give access to information described in Section 7.02.230 to:

1. The City Attorney, his or her assistants and employees, or other legal representatives of the City, to the extent the Bureau deems disclosure or access necessary for the performance of the duties of advising or representing the Bureau.

2. Other employees, agents and officials of the City, to the extent the Bureau deems disclosure or access necessary for such employees, agents or officials to perform their duties under contracts or agreements between the Bureau and any other department, bureau, agency or subdivision of the City relating to the administration of the Business License Law.

D. Officials, employees and agents of the Bureau or City, prior to the performance of duties involving access to financial information submitted to the Bureau under the terms of the Business License Law, shall be advised in writing of the provision of Section 7.02.730 relating to penalties for the violation of Sections 7.02.230, 7.02.240 and 7.02.255. Such employees, agents and officials shall execute a certificate in a form prescribed by the Bureau, stating that the person has reviewed these provisions of law and is aware of the penalties for the violation of Sections 7.02.230, 7.02.240 and 7.02.255.

E. Prior to any disclosures permitted by this Section, all persons described in subsection A above, to whom disclosure or access to financial information is given, shall:

1. Be advised in writing of the provisions of Section 7.02.730 relating to penalties for the violation of Section 7.02.230; and

2. Execute a certificate, in a form prescribed by the Bureau, stating these provisions of law have been reviewed and they are aware of the penalties for the violation of Section 7.02.230.

7.02.250 Licensee Representation.

No person shall be recognized as representing any applicant or licensee in regard to any matter relating to the fee of such applicant or licensee without written authorization of the applicant or licensee or unless the Bureau determines from other available information the person has authority to represent the applicant or licensee.

7.02.255 Representation Restrictions.

A. No employee or official of the City shall represent any licensee in any matter before the Bureau. This restriction against licensee representation shall continue for two years after termination of employment or official status.

B. Members of the Appeals Board, as described in Section 7.02.295 of the Business License Law shall not represent a licensee before the Appeals Board. No member of the Appeals Board shall participate in any matter before the Board if the appellant is a client of the member or the member’s firm.

7.02.260 Examination of Books, Records or Persons.

A. The Bureau may examine any books, papers, records or memoranda, including state and federal income or excise tax returns, to ascertain the correctness of any license application or to make an estimate of any license fee. The Bureau shall have the authority, after notice, to:

1. Require the attendance of any person required to be licensed under the Business License Law, or officers, agents, or other persons with knowledge of the person’s business operations, at any reasonable time and place the Bureau may designate;

2. Take testimony, with or without the power to administer oaths to any person required to be in attendance; and

3. Require proof for the information sought, necessary to carry out the provisions of this Chapter.

B. The Director shall designate the employees who shall have the power to administer oaths hereunder. Such employees shall be notaries public of the State of Oregon.

7.02.270 Records.

Every person required to be licensed under the Business License Law shall keep and preserve for not less than seven (7) years such documents and records, including state and federal income or excise tax returns, accurately supporting the information reported on the licensee’s application and calculation of fee for each license year.

7.02.280 Deficiencies and Refunds.

(Amended by Ordinance Nos. 167154 and 171910, effective January 30, 1998.)

A. Deficiencies may be assessed and refunds granted any time within the period provided under ORS 314.410, ORS 314.415, and ORS 317.950. The Bureau may by agreement with the licensee extend such time periods to the same extent as provided by statute.

B. Notwithstanding subsection A, if no license application is filed, the Bureau may determine fees due under the Business License Law at any time based on the best information available to the Bureau. Fees determined under this subsection shall be assessed and subject to penalties and interest from the date the fees should have been paid as provided in Section 7.02.510 in accordance with Sections 7.02.700 and 7.02.710. The Bureau shall send notice of the determination and assessment to the person doing business in the City.

C. Consistent with ORS 314.410 (3), in cases where no license application has been filed, there shall be no time limit for a notice of deficiency and/or the assessment of fees, penalty, and interest due.

7.02.290 Protests and Appeals.

A. Any determination by the Bureau may be protested by the licensee. Written notice of the protest must be received by the Bureau within 30 days after the notice of determination was mailed or delivered to the licensee. The protest shall state the name and address of the licensee and an explanation of the grounds for the protest. The Bureau shall respond within 30 days after the protest is filed with the Bureau with either a revised determination or a final determination. The Bureau’s determination shall include the reasons for the determination and state the time and manner for appealing the determination. The time to file a protest or the time for the Bureau’s response may be extended by the Bureau for good cause. Requests for extensions of time must be received prior to the expiration of the original 30 day protest deadline. Written notice shall be given to the licensee if the Bureau’s deadline is extended.

B. Any final determination by the Bureau may be appealed by the licensee to the Business License Appeals Board. Written notice of the appeal must be received by the Bureau within 30 days after the final determination was mailed or delivered to the appellant. The notice of appeal shall state the name and address of the appellant and include a copy of the final determination.

C. Within 90 days after the final determination was mailed or delivered to the licensee, the appellant shall file with the Business License Appeals Board a written statement containing:

1. The reasons the Bureau’s determination is incorrect, and

2. What the correct determination should be.

Failure to file such a written statement within the time permitted shall be deemed a waiver of any objections, and the appeal shall be dismissed.

D. Within 150 days after the final determination was mailed or delivered to the licensee, the Bureau shall file with the Business License Appeals Board a written response to the appellant’s statement. A copy of the Bureau’s response shall be promptly mailed to the address provided by the appellant.

E. The appellant shall be given not less than 14 days prior written notice of the hearing date and location. The appellant and the Bureau shall have the opportunity to present relevant testimony and oral argument. The Business License Appeals Board may request such additional written comment and documents as it deems appropriate.

F. Decisions of the Business License Appeals Board shall be in writing, state the basis for the decision and be signed by the Business License Appeals Board Chair.

G. The decision of the Business License Appeals Board shall be final on the date it is issued and no further administrative appeal shall be provided.

H. The filing of an appeal with the Business License Appeals Board shall temporarily suspend the obligation to pay any fee that is the subject of the appeal pending a final decision by the Business License Appeals Board.

7.02.295 Business License Appeals Board.

There is hereby created a Business License Appeals Board which shall consist of the following members:

A. A representative of the City Auditor, appointed by the City Auditor for a two year term which expires every even year.

B. A representative of the Commissioner In Charge of the Bureau, appointed by the Commissioner for a two year term which expires every odd year.

C. Three members of the public appointed by the Mayor, subject to confirmation by the council. In making the initial appointments, one member shall be appointed for one year, one for two years and one for three years. After making the initial appointments, each member shall serve for a term of three years.

D. Appointments to the Business License Appeals Board shall be made to provide for an appropriate level of expertise in accounting methods and tax regulation.

E. No employee or agent of the Bureau may be appointed to or serve on the Business License Appeals Board.

7.02.300 License Required.

(Amended by Ordinance No. 171910, effective January 30, 1998.)

A. No person shall do business within the City unless such person shall have first paid a license fee under this Chapter.

1. The payment of a license fee required hereunder and the acceptance of such fee by the City shall not entitle a licensee to carry on any business not in compliance with all requirements of this Code and all other applicable laws.

B. In the event that a court of competent jurisdiction determines that the requirement to obtain a license hereby imposed is unconstitutional with respect to any person, such person shall pay a tax determined as provided in this Chapter with respect to license fees.

C. Any licensee shall be deemed to be doing business within the City within any fiscal year he or she receives income from business activity conducted within the City, notwithstanding that such activity has ceased. Income from business activity that has ceased includes, but not be limited to, income from installment sales, collection of accounts receivable, covenants not to compete, and income from contractual agreements related to the trade or business activity.

7.02.310 Duplicate Licenses.

Upon application and payment of a fee of $10, a duplicate license shall be issued to replace any license previously issued which has been lost or destroyed.

7.02.320 License Transfer.

(Substituted by Ordinance No. 171910, effective January 30, 1998.)

A. The Bureau shall require transfer of a license if, in the judgement of the Bureau, the successor or transferee represents a continuity of business which does not change the substance of a business licensed under the Code. The Bureau shall establish guidelines through written policy to explain the requirements of a license transfer.

B. In the event of a license transfer, the license fees for each partial or full year shall be computed upon the incomes earned by each entity involved in the transfer for all tax periods required to be reported under state and federal tax laws and regulations.

7.02.330 License Merger or Division.

When two or more licensees combine by merger or acquisition into one reporting entity, or one licensee divides or spins off into more than one reporting entity, the license fee for the license year after the combination or division shall be computed upon the incomes earned by all entities for all tax periods required to be reported under state and federal tax laws and regulations.

7.02.340 Contents of License.

(Repealed by Ordinance No. 171910, effective January 30, 1998.)

7.02.350 License Term.

(Amended by Ordinance No. 171910, effective January 30, 1998.)

A. Each license year shall begin on the first day of the month in which such license was required to have been obtained. Each license year shall expire at the end of the applicable tax period on the basis of which the licensee computes net income under the applicable laws of the State of Oregon imposing taxes on or measured by net income, but shall not exceed one year.

B. Notwithstanding the expiration of the license term, no person shall be deemed to be in violation of any provision of the Business License Law on account of such person not having renewed a license during the period of time permitted under Section 7.02.510 for the filing of a renewal application, provided that such renewal application shall have been filed before the end of such period.

7.02.360 Temporary Licenses and Fees.

A. Notwithstanding other provisions of the Business License Law, persons doing business as provided in this Section shall apply for and obtain temporary business licenses and pay the fees as provided herein.

1. Vendors not located in a permanent structure and operators of amusement rides not in the same location for more than 14 days shall pay a temporary license fee of $10 per day per vendor and $10 a day for each ride operated.

2. Promoters of commercial entertainment doing business in the City and production companies filming in the City for no more than 3 days in any calendar year shall pay a temporary license fee of $25 per day. Any person doing business as a performing artist at a commercial entertainment event conducted by a licensed promoter shall be deemed to be in compliance with the Business License Law.

3. Vendors conducting limited, seasonal sales (including, but not limited to, Christmas trees or fireworks), operating in temporary locations shall pay a temporary license fee of $10 per day for each location, not to exceed $100 per location.

B. Income from activity for which a temporary license has been obtained shall be exempt from the business license requirements of Section 7.02.540 and 7.02.545.

7.02.400 Exemptions.

(Amended by Ordinance Nos. 167154, 171910 and 172019, effective January 1, 1999.) To the extent set forth below, the following persons or incomes are exempt from the requirements of the Business License Law:

A. Persons whom the City is prohibited from taxing under the Constitution or laws of the United States, the Constitution or laws of the State of Oregon, or the Charter of the City.

B. Income arising from transactions which the City is prohibited from taxing under the Constitution or the laws of the United States, the Constitution or laws of the State of Oregon, or the Charter of the City.

C. Persons whose gross receipts from all business, both within and without the City, amounts to less than $25,000 in any tax year. The Bureau may demand a statement that the person’s gross receipts for the license year will be less than $25,000. If such person shall have been exempt hereunder during the prior tax year, an additional statement shall be filed indicating the gross receipts for such year were less than $25,000 or indicating the amount thereof.

D. Corporations exempt from the Oregon Corporation Excise Tax under ORS 317.080, provided that any such corporation subject to the tax on unrelated business income under ORS 317.920 to 317.930 shall pay a license fee based solely on such income.

E. Trusts exempt from Federal income tax under Internal Revenue Code Section 501, provided that any exempt trust subject to tax on unrelated business income and certain other activities under Internal Revenue Code Section 501 (b), shall pay a license fee based solely on that income.

F. Any individual whose only business transactions are exclusively limited to the following activities:

1. Sales, exchanges or involuntary conversions of real property not held for sale in the ordinary course of a trade or business, unless the real property is used in the trade or business in connection with the production of income; or

2. The sale of personal property acquired for household or other personal use by the seller; or

3. Interest and dividend income earned from investments if the income is not created in the course of or related to the licensee’s business activities; or

a. Gains and losses incurred from the sale of assets which are not a part of a trade or business; or

4. The renting or leasing of residential real property, if the beneficial owner of such real property does not rent or lease more than nine dwelling units, at least one of which is within the City.

G. Any person whose only business transactions are exclusively limited to the following activities:

1. Raising, harvesting and selling of the person’s own crops, or the feeding, breeding, management and sale of the person’s own livestock, poultry, furbearing animals or honeybees, or sale of the produce thereof, or any other agricultural, horticultural or animal husbandry activity carried on by any person on said person’s own behalf and not for others, or dairying and the sale of dairy products to processors. This exemption shall not apply if, in addition to the farm activities described in this subsection, the person does any processing of the person’s own farm products which changes their character or form, or the person’s business includes the handling, preparation, storage, processing or marketing of farm products raised or produced by others; or the processing of milk or milk products whether produced by said person or by others for retail or wholesale distribution.

2. Operating within a permanent structure a display space, booth or table for selling or displaying merchandise by an affiliated participant at any trade show, convention, festival, fair, circus, market, flea market, swap meet or similar event for less than 14 days in any tax year.

H. Incomes subject to Chapters 7.12 or 7.14. Unless otherwise prohibited by law, income which is not otherwise subject to Chapters 7.12 or 7.14 is subject to the Business License Law.

1. Incomes subject to franchise fees under residential solid waste, recycling and yard debris collection franchises issued by the City of Portland. Income which is not otherwise subject to such franchise fees is subject to the Business License Law.

7.02.500 Fee Rate.

(Amended by Ordinance No. 171910, effective January 30, 1990.) The fee established by the Business License Law shall be 2.2 percent of adjusted net income.

7.02.510 License Application and Fee Due Dates.

(Amended by Ordinance No. 167154, effective Dec. 1, 1993.)

A. All persons required to obtain a business license shall apply to the Bureau upon forms provided or approved by the Bureau. Applications shall be filed, together with the specified license fee:

1. Before the applicant begins to do business in the City or,

2. In the case of an application for renewal of a prior license, by the 15th day of the 4th month following the end of the term of such prior license.

B. The Bureau may, for good cause, grant extensions for filing applications, except that no extension may be granted for more than six (6) months beyond the initial filing due date. This extension does not extend the time to pay the fee.

C. The application shall contain a written declaration, verified by the applicant, to the effect that the statements made therein are true.

D. The Bureau shall prepare blank applications and make them available at its office upon request. Failure to receive or secure a form shall not relieve any person from the obligation to pay a license fee and obtain a license under the Business License Law.

7.02.520 Quarterly Estimates.

For tax years beginning on or after January 1, 1994, every licensee expecting to have a fee liability under Section 7.02.500 of $1,000 or greater shall make an estimate of the fee based upon the licensee’s current tax year and pay the amount of fee determined as provided in Section 7.02.530.

7.02.530 Schedule for Payment of Estimated Fee.

A licensee required under Section 7.02.520 to make payments of estimated license fees shall make the payments in installments as follows:

A. One quarter or more of the estimated fee on or before the 15th day of the fourth (4th) month of the tax year; and

B. One quarter or more of the estimated fee on or before the 15th day of the sixth (6th) month of the tax year; and

C. One quarter or more of the estimated fee on or before the 15th day of the ninth (9th) month of the tax year; and

D. The balance of the estimated fee shall be paid on or before the 15th day of the twelfth (12th) month of the tax year.

E. Any payment of the estimated fee received by the Bureau for which the licensee has made no designation of the quarterly installment to which the payment is to be applied, shall first be applied to underpayments of estimated fees due for any prior quarter of the tax year. Any excess amount shall be applied to the installment that next becomes due after the payment was received.

7.02.540 Fee - New Applications.

A. Each application for a license, other than a renewal application, shall be accompanied by a reasonable estimate of the income of the business to be licensed for the first license year and by an estimated fee at the rate established in Section 7.02.500 applied to such estimated income, provided that each such application shall be accompanied by a minimum fee of $100.

B. Upon renewal of a license with respect to which an estimated fee has been paid, or within 30 days of the expiration of such license if it is not renewed, the licensee shall file an amended application showing the license fee computed on the basis of the actual income of the licensed business for the first license year.

1. If the license fee so determined exceeds the estimated fee previously paid, the amended application shall be accompanied by such additional fee plus interest thereon as specified in Section 7.02.710.

2. If the estimated fee exceeds the fee shown on the amended application, the overpayment may be credited against the license fee due from the licensee for the next license year, and any additional overpayment shall be refunded to the licensee. However, the minimum fee required by Section 7.02.540.A shall not be credited or refunded.

7.02.545 Fee - Renewal Application.

(Amended by Ordinance No. 171910, effective January 30, 1998.) Except as provided in Section 7.02.540, each application for renewal of a license shall be accompanied by a fee at the rate established in Section 7.02.500 applied to the income of the licensed business for the tax year immediately prior to which the application is made, provided that each such application shall be accompanied by a minimum fee of $100. The $100 minimum payment may have previously been paid by quarterly payments, an extension payment, or credit available from a prior tax year.

7.02.550 Presumptive Fee.

(Amended by Ordinance Nos. 167154 and 171910, effective January 30, 1998.)

A. If a person fails to file an application, a rebuttable presumption shall exist that the fee payable amounts to $500 for every license year for which a return has not been filed.

B. Nothing in this Section shall prevent the Bureau from assessing, under Section 7.02.280.B, a fee due which is less than or greater than $500 per license year.

7.02.600 Income Determinations.

(Amended by Ordinance Nos. 167154, 171910 and 172019, effective March 27, 1998.)

A. Owners Compensation Deductions. “Owners Compensation Deduction is defined as the additional deduction allowed in Sections B, C, and D Below. For tax years beginning prior to 1/1/99, the owner’s compensation deduction cannot exceed $50,000 per owner, as defined in Sections B, C, and D below. For tax years beginning after 1/1/99, the owners compensation deduction will be indexed by the Consumers Price Index - All Urban Consumers (CPI-U) US City Average as published by the US Department of Labor, Bureau of Labor Statistics, using the September to September index, not seasonally adjusted (unadjusted index). The initial index will be the September 1998 to September 1999 index. The Bureau will determine the exact deduction amount and publish the amount in a written policy and include on forms. Any increase or decrease under this paragraph which is not a multiple of $500 shall be rounded to the next lowest multiple of $500.

B. Sole Proprietorships. In determining income, no deduction shall be allowed for any compensation for services rendered by, or interest paid to, owners. However, 75 percent of income determined without such deductions shall be allowed as an additional deduction, not to exceed $50,000 per owner.

C. Partnerships. In determining income, no deductions shall be allowed for any compensation for services rendered by, or interest paid to, owners of partnerships, limited partnerships, limited liability companies, limited liability partnerships, or family limited partnerships. Guaranteed payments to partners or members shall be deemed compensation paid to owners for services rendered. However:

1. For general partners or members, 75 percent of income determined without such deductions shall be allowed as an additional deduction, not to exceed $50,000 per general partner or member.

2. For limited partners or members of LLCs who are deemed limited partners by administrative rule or policy, 75 percent of income determined without such deductions shall be allowed as an additional deduction, not to exceed the lesser of actual compensation and interest paid or $50,000 per compensated limited partner.

D. Corporations. In determining income, no deduction shall be allowed for any compensation for services rendered by, or interest paid to, controlling shareholders of any corporation, including but not limited to, C and S corporations and any other entity electing treatment as a corporation, either C or S. However, 75 percent of the corporation’s income, determined without deduction of compensation or interest, shall be allowed as a deduction in addition to any other allowable deductions, not to exceed the lesser of the actual compensation and interest paid or $50,000 for each controlling shareholder.

1. For purposes of this subsection, to calculate the compensation for services rendered by or interest paid to controlling shareholders that must be added back to income, wages, salaries, fees or interest paid to all persons meeting the definition of a controlling shareholder must be included.

2. For purposes of this subsection, in determining the number of controlling shareholders, a controlling shareholder and that person’s spouse, parents and children count as one owner, unless such spouse, parent or child individually control more than 5 percent ownership of outstanding stock or securities in their own name. In that case, each spouse, parent or child who owns more than 5 percent of stock shall be deemed to be an additional controlling shareholder.

3. For purposes of this subsection, joint ownership of outstanding stock or securities shall not be considered separate ownership.

E. Estates and Trusts. In determining income for estates and trusts, income shall be measured before distribution of profits to beneficiaries. No additional deduction shall be allowed.

F. Nonbusiness Income. In determining income under this Section, an allocation shall be allowed for nonbusiness income as reported to the State of Oregon. However, income treated as nonbusiness income for State of Oregon tax purposes may not necessarily be defined as nonbusiness income under the Business License Law. Interest and dividend income, rental income or losses from real and personal business property, and gains or losses on sales of property or investments owned by a trade or business shall be treated as business income for purposes of the Business License Law. Income derived from non-unitary business functions reported at the State of Oregon level may be considered nonbusiness income. Non-unitary income will not be recognized at an intrastate level. The licensee shall have the burden of showing that income is nonbusiness income.

G. Taxes Based on or Measured by Net Income. In determining income, no deduction shall be allowed for taxes based on or measured by net income. No deduction shall be allowed for the federal built-in gains tax.

H. Ordinary Gain or Loss. In determining income, gain or loss from the sale, exchange or involuntary conversion of real property or tangible and intangible personal property not exempt under Section 7.02.400.F shall be included as ordinary gain or loss.

I. Net Operating Loss. In determining income, a deduction shall be allowed equal to the aggregate of the net operating losses incurred in prior years, not to exceed 75 percent of the income determined for the current license year before this deduction, but after all other deductions from income allowed by this Section and apportioned for business activity both within and without the City of Portland.

1. When the operations of the licensee from doing business both within and without the City result in a net operating loss, such loss shall be apportioned in the same manner as the net income under Section 7.02.610. However, in no case shall a net operating loss be carried forward from any license year during which the licensee conducted no business within the City or the licensee was otherwise exempt from license requirements.

2. In computing the net operating loss for any license year, the net operating loss of a prior year shall not be allowed as a deduction.

3. In computing the net operating loss for any license or tax year, no compensation allowance deduction shall be allowed to increase the net operating loss. “Compensation allowance deduction” is defined in Section 7.02.600 A.

4. The net operating loss of the earliest license year available shall be exhausted before a net operating loss from a later year may be deducted.

5. The net operating loss in any license year shall be allowed as a deduction in the 5 succeeding license years until used or expired. Any partial license year shall be treated the same as a full license year in determining the appropriate carry-forward period.

7.02.610 Apportionment of Income.

(Amended by Ordinance Nos. 167154 and 171910, effective January 30, 1998.)

A. “Business activity” means any of the elements of doing business. However, a person shall not be considered to have engaged in business activities solely by reason of sales of tangible personal property in any state or political subdivision, or solely the solicitation of orders for sales of tangible personal property in any state or political subdivision. Business activities conducted on behalf of a person by independent contractors are not considered business activities by the person in any state or political subdivision.

B. Any licensee having income from business activity both within and without the City shall determine, in computing the license fee, the income apportioned to the City by multiplying the total net income from the applicant’s business by a fraction, the numerator of which is the total gross income of the licensee from business activity in the City during the tax year, and the denominator of which is the total gross income of the licensee from business activity everywhere during the tax year.

C. In determining the apportionment of gross income within the City under subsection B:

1. Sales of tangible personal property shall be deemed to take place in the City if the property is delivered or shipped to a purchaser within the City regardless of the f.o.b. point or other conditions of sale. Sales of tangible personal property shipped from the City to a purchaser located where the licensee is not taxable shall not be apportioned to the City.

2. Sales other than sales of tangible personal property shall be deemed to take place in the City, if the income producing activity is performed in the City or the income producing activity is performed both in and outside the City and a greater portion of the income producing activity is performed in the City than outside the City based on costs of performance.

D. Certain industries or incomes shall be subject to specific apportionment and/or allocation methodologies. Such methodologies shall be described in administrative rules adopted in accordance with Section 7.02.210. Industry specific or income specific apportionment methodologies required by Oregon Revised Statutes shall be used in cases where no rule has been adopted by the Bureau regarding the apportionment of such industry or income. In those specific cases where Oregon has directed allocation of income, such income shall be apportioned for purposes of this Chapter, unless allocation otherwise allowed in this Chapter.

E. If the apportionment provisions of subsection B do not fairly represent the extent of the licensee’s business activity in the City and result in the violation of the licensee’s rights under the Constitution of this State or the United States, the licensee may petition the Bureau to permit the licensee to:

1. Utilize the method of allocation and apportionment used by the licensee under the applicable laws of the State of Oregon imposing taxes upon or measured by net income; or

2. Utilize any other method to effectuate an equitable apportionment of the licensee’s income.

7.02.620 Changes to Federal and/or State Tax Returns.

(Amended by Ordinance Nos. 167154 and 171910, effective January 30, 1998.)

A. If a licensee’s reported net income under applicable Oregon laws imposing a tax on or measured by income is changed by the federal Internal Revenue Service or the Oregon Department of Revenue, or amended by the licensee to correct an error in the original federal or state return, a report of such change shall be filed with the Bureau within 60 days after the date of the notice of the final determination of change or after an amended return is filed with the federal or state agencies. The report shall be accompanied by an amended license application with respect to such income and by any additional fee, penalty, and interest due.

B. The Bureau may assess deficiencies and grant refunds resulting from changes to federal, state or business license returns within the time periods provided for in Section 7.02.280, treating the report of change in federal, state or business license returns as the filing of an amended license application.

C. The Bureau may assess penalties and interest on the additional fee due as provided in Section 7.02.700.A and 7.02.710.A, or may refuse to grant a refund of business license fees as a result of the amended application if the amended application is not filed with the Bureau within the time limits set forth in subsection A.

7.02.630 Income - Long Term Construction Contract Methods.

A. A licensee reporting income using a long term construction contract method shall file an additional application for the licensee’s income earned during the last license year, not later than the 15th day of the 4th month following the end of the prior license year during which either:

1. The licensee ceases to do business in the City; or

2. The licensee ceases to receive income from such long term construction contracts.

B. Net income for such licensee shall include apportioned income arising from all contracts completed during such license year.

7.02.700 Penalties.

(Amended by Ordinance Nos. 167154 and 171910, effective January 30, 1998.)

A. A penalty shall be assessed if a person:

1. Fails to file a license application or extension request at the time required under Section 7.02.510.A or 7.02.620.A; or

2. Fails to pay the fee when due.

3. The penalty under subsection A shall be calculated as:

a. Five percent (0.05) of the total fee liability, but not less than $5, if the failure is for a period less than four (4) months;

b. An additional penalty of 20 percent (0.20) of the total fee liability if the failure is for a period of four (4) months or more; and

c. An additional penalty of 100 percent (1.00) of the total fee liability of all license years if the failure to file is for three (3) or more consecutive license years.

B. A penalty shall be assessed if a person who has filed an extension request:

1. Fails to file a license application by the extended due date; or

2. Fails to pay the fee liability by the extended due date.

3. The penalty under subsection B shall be calculated as:

a. Five percent (0.05) of the total fee liability, but not less than $5, if the failure is for a period less than four (4) months; and

b. An additional penalty of 20 percent (0.20) of the total fee liability if the failure is for a period of four (4) months or more.

C. A penalty shall be assessed if a person:

1. Fails to pay at least 90 percent (0.90) of the total fee liability, but not less than $100, by the original due date; or

2. Fails to pay at least 100 percent (1.00) of the prior year’s total fee liability by the original due date.

3. The penalty under subsection C shall be calculated as:

a. Five percent (.05) of the fee underpayment, but not less than $5, if the failure is for a period less than four (4) months; and

b. An additional penalty of 20 percent (0.20) of the fee underpayment if the failure is for a period of four (4) months or more.

D. The Director may impose a civil penalty of up to $500 for each of the following violations of the Business License Law:

1. Failure to file any license application within 90 days of the Bureau’s original written notice to file;

2. Failure to pay any fee within 90 days of the Bureau’s original written notice for payment; or

3. Failure to provide documents as required by Section 7.02.260 within 90 days of the Bureau’s original written notice to provide documents.

E. The Director may impose a civil penalty under this subsection D only if the Bureau gave notice of the potential for assessment of civil penalties for failure to comply or respond in the original written notice.

F. The Bureau may waive or reduce any penalty determined under subsections A through D for good cause, according to and consistent with written policies.

7.02.710 Interest.

(Amended by Ordinance Nos. 167154 and 171910, effective January 30, 1998.)

A. Interest shall be collected on any unpaid license fee at the rate of .833 percent simple interest per month or fraction thereof (10 percent per annum), computed from the original due date of the fee to the 15th day of the month following the date of payment.

B. Interest shall be collected on any unpaid or underpaid quarterly estimated payment required by Section 7.02.520 and 7.02.530 at the rate of .833 percent simple interest per month or fraction thereof (10 percent per annum), computed from the due date of each quarterly estimated payment to the original due date of the license application to which the estimated payments apply.

C. Notwithstanding subsection B. there shall be no interest on underpayment of quarterly estimated payments if:

1. The total fee liability of the prior license year was less than $1,000; or

2. An amount equal to at least 90 percent (0.90) of the total fee liability, but not less than $100, for the current license year was paid in accordance with Section 7.02.530; or

3. An amount equal to at least 100 percent (1.00) of the prior year’s total fee liability was paid in accordance with Section 7.02.530.

D. For purposes of Subsection B, the amount of underpayment is determined by comparing the 90 percent of the current total fee liability amount to quarterly estimated payments made prior to the original due date of the license application.

E. If a person fails to file a license application on the prescribed date, or any extension thereof granted under Section 7.02.510.B, the Bureau may determine the fee due based on the best information available to the Bureau. If the Bureau determines the fee due under this subsection, the Bureau shall assess appropriate penalties and interest and shall send notice to such person of the determination and assessment.

F. For purposes of subsection A of this Section, the amount of fee due on the license application shall be reduced by the amount of any fee payment made on or before the date for payment of the fee in accordance with Section 7.02.510.A or 7.02.530.

G. Interest at the rate specified in subsection A of this Section shall accrue from the original due date without regard to any extensions of the filing date.

H. Any interest amounts properly assessed in accordance with this section may not be waived or reduced by the Bureau, unless specifically provided for by written policy.

7.02.715 Payments Applied.

License fees received shall first be applied to any penalty accrued, then to interest accrued, then to license fees due.

7.02.720 Interest on Refunds.

(Amended by Ordinance No. 171910, effective January 30, 1998.) When, under a provision of the Business License Law, licensees are entitled to a refund of a portion of the license fee paid to the Bureau, they shall receive simple interest on such amount at the rate specified in Section 7.02.710.A, subject to the following:

A. Any overpayments shall be refunded with interest for each month or fraction thereof for a period beginning four (4) months after the due date or the date the license fee was paid, whichever is later, to the date of the refund; and

B. Any overpayments of estimated fees shall be refunded with interest for each month or fraction thereof for the period beginning four (4) months after the date the final application was filed.

C. Any overpayments of fees that are the result of an amended application being filed shall be refunded with interest for each month or fraction thereof for the period beginning four (4) months after the date the amended application was filed. This subsection shall apply to applications that are amended due to a change to the federal, state or business license returns.

7.02.730 Criminal Penalties for Violation of the Business License Law by City Official, Employee or Agent.

Violation of Sections 7.02.230 or 7.02.240, is punishable, upon conviction thereof, by a fine not exceeding $1,000 or by imprisonment for a period not exceeding 12 months, or by both fine and imprisonment. Any official or employee of the City shall, upon conviction, be dismissed from employment and shall be ineligible for holding any position of employment or office in the City for a period of 5 years thereafter. Any agent of the City shall, upon conviction, be ineligible for participation in any City contract for a period of 5 years thereafter.

Chapter 7.04

ADMINISTRATION

(Repealed by Ordinance

No. 166676, effective

June 24, 1993.)

Chapter 7.06

LICENSE REQUIREMENTS

& APPLICATIONS

(Repealed by Ordinance

No. 166676, effective

June 24, 1993.)

Chapter 7.08

LICENSE FEES

(Repealed by Ordinance

No. 166676, effective

June 24, 1993.)

Chapter 7.10

VIOLATIONS

(Repealed by Ordinance

No. 166676, effective

June 24, 1993.)

Chapter 7.12

PUBLIC SERVICE PERMITS,

FRANCHISES AND REGULATIONS

Sections:

7.12.010 Auditor to Keep Record of Franchises.

7.12.020 Holder of Franchise to Keep Accounts and Make Reports.

7.12.030 Bureau of Licenses or Designee Authorized to Inspect Books and Prescribe Forms.

7.12.040 Interest Payable on Deposits.

7.12.050 Contents of Franchise.

7.12.060 Privilege Tax Levies.

7.12.070 Privilege Tax Applicable to Other Cases.

7.12.080 Report of Gross Earnings.

7.12.090 Time of Payment of Tax.

7.12.100 No Waiver or Estoppel.

7.12.110 Credits Allowable.

7.12.120 Restricted to City Business.

7.12.200 Penalty Applicable.

7.12.210 Additional Annual Report.

7.12.220 Depreciation Accounts of Public Utilities.

7.12.010 Auditor to Keep Record of Franchises.

The Auditor shall keep a separate record of each grantee of a franchise from the City rendering a service to be paid for wholly or in part by users of such service, which record shall show in the case of each such grantee:

A. The true and entire cost of construction, equipment, maintenance, and of the administration and operation thereof; the amount of stock issued, if any; the amount of cash paid in; the number and par value of shares; the amount and character of indebtedness, if any; the rate of taxes; dividends declared; the character and amount of all fixed charges; the allowance, if any, for interest, and for wear and tear or depreciation; all amounts and sources of income;

B. The amount collected annually from the City Treasury and the character and extent of the service rendered therefor to the City;

C. The amount collected annually from other users of the service and the character and extent of the service rendered therefor to them. Such books of record shall be open to public examination at any time during the business hours of the Auditor’s Office. Such information, in addition to any further data which may be required by the Auditor, under the City Charter, shall be furnished by the grantees or holders of such franchises to the Auditor upon his request, and at such grantees’ own cost and expense.

In case any grantee or holder of a franchise fails or refuses to furnish such information when required so to do, on behalf of the City, the City Attorney shall petition the Circuit Court of the State of Oregon for Multnomah County to compel such grantee or holder to furnish the information required herein and to pay the costs of the proceedings in said Court.

7.12.020 Holder of Franchise to Keep Accounts and Make Reports.

Every person or corporation operating a public utility, whether under a franchise granted by the City or otherwise operating within the City and rendering service to be paid for wholly or in part by the users of such service, shall keep full and correct books and accounts and make stated quarterly reports in writing to the Council, verified by such person or officer of the corporation, which shall contain an accurate statement in summarized form as well as in detail of all receipts from all sources and all expenditures for all purposes, together with a full statement of all assets and debts including stock and bond issues, as well as such other information as to the cost and profits of the service, and the financial condition of such grantee as the Council may require, as provided for by Section 10-107, Quarterly Reports, of the Charter of the City, which Section of the Charter is incorporated in this Section by reference.

7.12.030 Bureau of Licenses or Designee Authorized to Inspect Books and Prescribe Forms.

(Amended by Ordinance No. 158792, effective July 17, 1986.) The Bureau of Licenses or designee is hereby authorized to inspect or examine, cause to be inspected or examined, at all reasonable hours, any and all books of account and vouchers of the grantee. Such books of account shall be kept and such reports made in accordance with forms and methods prescribed by the Bureau of Licenses, and so far as practicable shall be uniform for all grantees and holders of franchises, and shall conform to such reports as are required by State or federal public utilities commissions.

7.12.040 Interest Payable on Deposits.

Any person engaged in the business of furnishing or supplying gas or electricity for lighting, heating, or power purposes, or telephone service in the City, requiring of any patron the deposit of a sum of money as security for the prompt payment of bills when due, shall return to the patron within 1 year from the date the same is made the amount of the deposit together with interest thereon at the rate of 6 percent per year; provided, the patron is not indebted to the person at the date the deposit is returned. Such interest shall be payable at the time the deposit is returned; provided, however, that any person engaged in furnishing telephone service in the City may exact from each patron, or the patron may make, in lieu of such deposit, the payment of not more than 2 months rental in advance.

7.12.050 Contents of Franchise.

Each such franchise shall provide that the names of all the members of the co-partnership or association to which any such franchise may be granted, shall be kept constantly on file in the Office of the Auditor of the City and at all times shall be accessible to any person having any interest in such information. Each such franchise shall also contain a provision setting forth and requiring the minimum service to be rendered the public by the grantee of such franchise and each such franchise shall also include such terms, provisions, and conditions as the Council of the City may determine in addition to those required by the Charter and ordinances of the City.

7.12.060 Payment of Privilege Tax Required.

(Substituted by Ordinance No. 164761, effective Oct. 23, 1991.)

A. For the purposes of Section 7.12.060 through Section 7.12.120, “utility” shall mean any electric cooperative, people’s utility district, privately-owned public utility, or heating company.

B. Any utility using or occupying a street, alley, or highway within the corporate limits of the City without a franchise shall pay a privilege tax for the use and occupancy of any street, alley or highway.

1. The privilege tax imposed under this Subsection shall be in an amount of 5 percent of the utility’s gross revenues earned within the corporate limits of the City for each consecutive 3 month period. the privilege tax shall be computed as of the commencement of business or upon the expiration of any franchise under which the utility formerly operated. The privilege tax shall be due and payable so long as the utility operates with the City and uses or occupies the streets, alleys or highways.

C. Any telecommunications utility using or occupying a street, alley or highway within the corporate limits of the City shall pay a privilege tax for the use and occupancy of any street, alley or highway.

1. The privilege tax imposed under this Subsection shall be in any amount of 7 percent of the telecommunications utility’s gross revenues earned within the corporate limits of the City for each consecutive 3 month period. For the purposes of this paragraph, “gross revenues” shall mean all revenues derived from exchange access services, as defined in ORS 401.710, less uncollectibles from such revenues. The privilege tax shall be computed as of the commencement of business or upon the expiration of any franchise under which the telecommunications utility formerly operated. The privilege tax shall be due and payable so long as the telecommunications utility operates within the City and uses or occupies the streets, alleys or highways.

D. In the event a franchise is granted to any utility subject to the privilege tax herein required and the franchise becomes effective, then the privilege tax shall cease to apply from the effective date of the franchise. The franchise holder shall pay the proportionate earned amount of the privilege tax for the current quarterly period. The privilege tax shall in all such cases become immediately due and payable, and if not paid, collectible as provided in Section 7.12.080.

7.12.070 Privilege Tax Applicable to Other Cases.

(Substituted by Ordinance No. 164761, effective Oct. 23, 1991.) The terms of Section 7.12.060 through Section 7.12.120 shall immediately apply to any utility using or occupying a street, alley or highway within the corporate limits of the City upon the expiration of the utility’s franchise.

7.12.080 Report of Earnings.

(Substituted by Ordinance No. 164761, effective Oct. 23, 1991.)

A. Each utility and telecommunications utility subject to the privilege tax as provided in Section 7.12.060 shall file with the Office of Cable Communications and Franchise Management an audited statement of the revenues earned within the corporate limits of the City for each consecutive 3 month period.

1. The first quarterly report shall be filed on or before the first payment date of privilege tax. Subsequent quarterly reports shall be filed on or before July 15, October 15, January 15, and April 15 of each year.

2. If a franchise is granted to a utility which is otherwise subject to the provisions of Section 7.12.060 the utility shall file a report with the Office of Cable Communications Franchise Management within 10 days after the franchise becomes effective showing the gross revenues earned for the proportionate period of the quarter prior to the franchise being granted.

7.12.090 Time Payment of the Privilege Tax.

(Substituted by Ordinance No. 164761, effective Oct. 3, 1991.)

A. Payment under Section 7.12.060 shall be made quarterly on or before July 20, October 20, January 20, and April 20 of each year.

B. If a utility or telecommunication utility fails to pay the privilege tax as required in Section 7.12.060 through Section 7.12.120, the City Attorney is authorized to institute an action in the Circuit Court of the State of Oregon for Multnomah County to recover the amount of the privilege tax due the City.

7.12.100 No Waiver or Estoppel.

(Substituted by Ordinance No. 164761, effective Oct. 23, 1991.) Nothing in Section 7.12.060 through 7.12.120, or in any ordinance granting a franchise or right to any utility or telecommunications utility, nor anything done or performed or monies expended under ordinance, shall estop or prevent the City from requiring the utility or telecommunications utility to cease using or occupying the streets, alleys or highways within the corporate limits of the City upon the expiration or other termination of such franchise or right to use or occupy the streets, alleys or highways.

7.12.110 Credits Allowable.

(Substituted by Ordinance No. 164761, effective Oct. 23, 1991.) Any amount which any utility or telecommunications utility may have paid to the City under the terms of any revocable permit or other authority for using the streets shall be credited against the amount or amounts which have accrued or shall have accrued under Section 7.12.060.

7.12.120 Restricted to City Business.

(Substituted by Ordinance No. 164761, effective Oct. 23, 1991.) The privilege tax levied by Section 7.12.060 shall not be applicable to earnings from interstate business or to earnings from business outside the corporate limits of the City.

7.12.130 Permits for Intracity Passenger Business.