What is the Oregon art tax?
What is the Oregon art tax?
The Portland Arts Tax, formally the Arts Education and Access Income Tax, is a $35 tax paid by residents of Portland, Oregon to support school teachers and art focused nonprofit organizations. Residents age eighteen or older with $1,000 or more of taxable income are required to pay the tax.
What happens if you don’t pay your Portland art tax?
If you fail to pay, the city adds a $35 penalty. A private debt collector tacks on $5.56 interest and $16.10 in collection fees. Suddenly, payment due for the Arts Tax has jumped from $35 to $91.66, a 162% increase. The longer you wait to pay, the more debt collectors make.
Can I deduct Portland arts tax?
You can enter the 2021 Portland Oregon Arts tax that you paid in the Estimated Payments section. Taxpayers that itemize deductions on their federal income tax return will generally be able to deduct their 2020 Arts Tax payment paid in 2021 on their 2021 Schedule A (as State and Local Income Taxes).
Where does Portland art tax money go?
If RACC distributes less than 95% of the funds to non-profit Portland arts organizations, the remaining funds will go to non-profit organizations and schools that will give access to arts experiences to K-12 students and for grants and programs that will make arts and culture experiences available to Portland residents …
Where do I enter Portland arts tax in Turbotax?
To enter it on your federal return:
- Select Start/Revisit next to Local estimated taxes for 2021 in Federal > Deductions & Credits > Estimated taxes.
- Answer Yes to Did you pay local estimated taxes for 2021?
- Use the pull-down menu underneath Additional Payments to select Portland Arts Tax, OR and enter your amount paid.
Who must pay Portland arts tax?
Individuals Liable for the Arts Tax. City of Portland residents 18 years or older who have $1,000 or more of annual income and are in a household above the federal poverty level are liable for the Arts Tax. If your household’s annual income is at or below the federal poverty level, you may request an exemption.
How long is the Portland art tax?
What was supposed to be a long-sought infusion of cash has turned out to be just a trickle, accompanied by bad PR. Portlanders recently got an annoying reminder in the mail from City Hall—it’s almost time to pay their annual $35 arts tax. It’s been said Portland voters never met a tax they didn’t like.
How can I avoid paying taxes on art?
Buying art to avoid taxes. They are known as 1031 exchanges and this is how they work. Many wealthy art collectors can, and do, save millions in taxes by essentially rolling over their profits from selling their collection pieces into buying more art.
How do you avoid taxes with art?
Soaring prices for fine works are also helping to popularize yet another tactic that comes with tax advantages: art financing. Borrowing against the value of artwork allows people to get ample cash without having to sell, which means no capital gains taxes due.