Portland Arts Tax

This page is accessible via https://goo.gl/xXBoeL

[Reviewed 2/6/2024]

If, after reading this page, you have uncertainty if you have to pay the tax, call 503-865-4278, where you can speak to Portland staff that answer questions about the Arts Tax. If you are a nonresident alien at PSU, you should give them that information. Make a note of the number you called, the name of the person you talked to, the time you called, and their answer as to whether you should pay and keep that information in your tax files.

On April 10, 2019, I had a phone conversation with the City of Portland regarding the City of Portland Arts Tax.

The man I spoke to assured me that international students/scholars on F or J visa in the city limits of Portland who are temporarily here in the U.S. (and therefore temporarily here in Portland) on an F or J visa are not expected to file or pay the Portland Arts Tax.

• If you receive a notice that DOES NOT have your name on it and you are on your F or J visa, you may disregard the notice

• If you receive a notice that DOES have your name on it, asking you to pay the tax, return the form without payment and include a note that are not subject to the tax because you are here temporarily on your F or J visa and include a copy of your I-94 which shows your entry date and your visa status upon entry. 

If you wish to understand more, read the following:

When students call the city of Portland and describe their status, they are told they are not required to pay or file. 

I was referred to the Arts Tax Administrative Rules https://www.portland.gov/revenue/atar where there is an example (#5 under the heading "Residency" https://www.portland.gov/policies/licensing-and-income-taxes/arts-education-and-access-income-tax/lic-1109-residency). This is in a location not likely to be discovered by an international student visiting the web site.

5. Kita is a full-time student attending Portland State University in Portland on a F1 visa. Her parents live in Stockholm, Sweden where Kita graduated from high school. Kita stays in Portland throughout the year, attending summer classes and working at a part-time job in Portland. Kita returns home to Stockholm at least once a year to visit and stays with her parents and intends to return to Sweden upon graduation. She pays non-resident tuition to PSU and files an Oregon Form 40N Non-resident income tax return. By providing copies of her F1 (student) visa, her tuition billing statement and her non-resident tax return, Kita has proven that she is in Portland for a temporary or transitory purpose. Kita is not a resident of Portland therefore would not be subject to the tax.

Unfortunately, there are details in this example that confuse the matter. If the following are not part of the criteria, then they should not be a part of the example:

1. "Visiting home at least once a year" - Some (many) students are unable to return to their home country because of the expense. If they don't visit home once a year, does this mean they have to pay the tax? 

2. "Paying non-resident tuition" - Yes F and J visa students at PSU pay non-resident tuition. But some have graduate assistance positions and, for PSU in-house accounting reasons, will see resident tuition amounts when they view their student account (presumably to avoid the department from having the full amount non-resident tuition deducted from their departmental budget). I don't think in doing that, PSU was anticipating that this would be part of a litmus test regarding the arts tax. If their student account does not show non-resident tuition, does this mean they have to pay the tax?

3. "Files an Oregon Form 40N" - if Oregon income is below approximately $3000 and no state tax withholding has been deducted, there is not a requirement to file a state tax return. And if a student was living in Oregon all year and only had Oregon income and were to read the Oregon tax return instructions regarding which form to file, they could easily conclude that they should file 40 full year resident form. I have personally received contradictory information from ODR regarding which form, 40 or 40N, is appropriate for an international student under that criteria. And in the case of most students who did only have Oregon income, the calculations would be the same whether they file the 40 or 40N.  If they don't file Oregon 40N, for whatever reason, does this mean they have to pay?

I believe this example could be shortened and accomplish the intended purpose: "if a citizen of another country is full-time according to the terms of the visa, at an educational institution in the U.S., in the United States temporarily on an F or J visa, abiding by the terms of the visa, and residing in the city of Portland, they are not required to file or pay the arts tax."  This could then be added to the "College Students" example on the "Get More Info" page.