Arts tax funding

Portland's arts tax was passed by voters in 2012. The tax funds elementary music and art teachers and supports art non-profits. (File photo)

(LC- The Oregonian)

The legality of Portland's controversial arts tax will be decided once and for all - by the Oregon Supreme Court.

Justices last month opted to take the case even though a Multnomah County judge and the state Court of Appeals have each ruled the tax is legal under Oregon's constitution.

But the review doesn't necessarily mean the tax will be overturned. Rather, the case seemingly drew interest from the Supreme Court as a first chance to set precedent on the topic of a constitutionally prohibited "head tax."

Portland resident George Wittemyer, a retired attorney fighting the tax since 2013, declined comment Friday other than to say he's pleased the case will be reviewed. City Attorney Tracy Reeve declined to comment.

The legal issue for the Supreme Court is limited: Is Portland's arts tax a "head tax" that applies universally, making it prohibited.

In June, the Court of Appeals determined that such a tax would be "a single, fixed amount imposed per capita, sometimes subject to limited exclusions, without reference to an individual's income or property."

Portland's arts tax is $35 per person for anyone 18 or older who earns income. But it also offers exemptions based on poverty, the amount of income (less than $1,000) or the type of income, such as government pensions - prompting the Court of Appeals to determine it's not a head tax.

Voters approved the arts tax in 2012 to help pay for nonprofit arts programs and public teachers. It raised $9.3 million for the 2014 tax year but collections have been far lower than projected because many Portlanders have refused to pay.

-- Brad Schmidt

503-294-7628

@cityhallwatch