Portland Arts Tax Overhaul: Fewer Pay, But More Per Person

Portland City Council President Jamie Dunphy has proposed a major overhaul of the city's long-criticized arts tax. The Arts Education and Access Tax, a $35 annual fee on residents earning over $1,000, has been widely disliked for its cumbersome collection process and declining purchasing power since its 2012 adoption. Under the new plan, the tax rate would increase to $50 for individuals and $100 for joint filers, but 151,000 current payers—about one-third—would be exempted, including those with Oregon taxable income of $20,000 or less (individuals) or $40,000 (joint filers). The changes aim to maintain the current $12 million annual revenue while adjusting for inflation. The proposal does not alter the distribution formula: one public school arts teacher per 500 elementary students, with remaining funds for city costs and grants. A recent city audit found undefined terms like "high-quality arts" and "underserved communities"; Dunphy's plan adds definitions and tasks the Office of Arts & Culture with deeper program evaluation. The collection process remains unchanged, though Dunphy has directed the revenue department to study improvements. Separately, Dunphy plans to propose a fee on streaming services (Netflix, Spotify, OnlyFans) later this year, modeled on a Chicago tax, to support local arts. The arts tax overhaul will be discussed at the City Life Committee meeting on Tuesday morning.