Portland weighs tax hike on big businesses

How it works: The proposal would increase an existing tax on publicly traded companies that pay their CEOs significantly more than their typical workers.

• It would also raise the annual revenue threshold for Portland's business tax from $100,000 to $500,000.
• City estimates show roughly 18,000 businesses would benefit, saving an average of $900 a year.

By the numbers: About 410 businesses would face higher taxes under the proposal.

• City revenue officials estimate the higher taxes would generate $88 million annually, offset by $16 million in small-business tax relief.
• A more cautious forecast from the city economist projects a net gain averaging $33.4 million annually between fiscal years 2030 and 2032.

The big picture: Portland has faced major budget shortfalls in recent years, including a $160 million gap in 2026.

Yes, but: Prosper Portland, the city's economic development agency, has raised questions about whether companies would pass higher costs to consumers, cut jobs or investments, or reconsider doing business in Portland.

What's next: City Council will consider the proposed changes, which would require amendments to Portland's tax code.