Portland arts tax faces scrutiny after audit
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One of Portland's most-hated taxes, the arts tax, is under fresh scrutiny after a critical report from the city auditor.
Why it matters: The program hasn't ensured that the funds collected — an average of more than $11 million annually — improve access to the arts.
- The city also "is not holding grantees to specific outcomes," per City Auditor Simone Rede's report.
Catch up quick: The $35 income tax was approved in 2012 to pay for increased access to arts programs for young people and provide funding for arts organizations.
- But residents must log in to a city website to pay the tax, separate from normal tax filings, and can accrue late charges if not paid on time.
Follow the money: From its launch through fiscal year 2024–25, the tax generated about $146 million, according to the report.
- Of the more than $12 million generated last year, $2 million went to collection and administrative costs; $7.8 million went to six Portland-area schools; and another $2.1 million went to the Office of Arts & Culture.
Between the lines: Last month, reporting from OPB showed that $9 million in arts tax money sat unused even as arts nonprofits have seen funding from the city decline.
What they found: The auditor recommended the city implement clear goals and metrics for arts tax money to make sure the funds are being used effectively.
What's next: In a response to the audit, city administrator Raymond Lee said city officials "generally agree" with the report's recommendations and were working to put fixes in place.