City tax code change



City tax code change

The Alliance sent a letter to Thomas Lannom, director of the Revenue Division at the city of Portland, regarding administrative rule changes that would impact how certain deductions related to Internal Revenue Code Section 754 elections are treated for city tax purposes. The rule changes would disconnect the city from federal and state tax code with respect to the treatment of step up basis and deductibility of depreciation expenses for pass through entities. Essentially, the proposed change would eliminate a depreciation deduction related to tax basis in property. The letter requests that the Revenue Division slow the process to allow more time to work with impacted parties and work through the complex issues this raises.